Construction Machinery ME by Construction Machinery ME

ISSUE 21 JULY 2013

PUBLICATION LICENSED BY IMPZ

LiuGONG LOADS uP

Being ready for growth

AfTER THE fAcT into the aftermarket

DRAGON SMART

Mall expansion preps for heat

CHINEsE MANufACTuRERs

HEAVY METAL DRAGONS The beasts from the East Plus: ACROss THE INDusTRY

NEWs & VIEWs

* RAW POWER *

TElEHANDlERs

AND MORE

Contents

14 IS S U E 2 1 JU LY 2 0 1 3

Editorial There’s been a shift of power in Qatar, but will it lead to gear shifts for the 2022 FIFA World Cup?

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

CoMMENt Gavin Davids has been to Brazil and he sees lots of lessons to be learned for Qatar.

page 16

“Customers are our priority”

York Liang of LiuGong outlines how the company is going to triple its revenue in five years in the Middle East region.

liugoNg rEady to wait CMME meets with York Liang to discuss the Chinese manufacturer’s plans for the region.

way of thE dragoNS The Chinese companies that are making their mark in the global and regional markets.

SitE ViSit: dragoNMart CMME visits the Phase2 expansion of Dubai’s Dragonmart Mall to find out its plans for the summer heat.

Raw power

33 NEW RELEASES ROUND-UP What’s hot in new machinery this month? Page 39 HOW GREEN IS YOUR SITE? Top Ten guide to recycling on a construction site. Page 42 AFTER THE SALE APPROACH How manufacturers and dealers can help to keep your machinery moving after the sale is over. Page 48 SECTOR ANALYSIS: TELEHANDLERS Guide to one of CMME’s favourite machinery types. Page 52 AUTOMECHANIKA The aftermarket continues to grow. Page 56 THE LAST WORD Austerity measures. Page

DNA MATTERS. Tunis Société Commerciale de Matériels (COMAT) www.comat.tn +216-74468710 Azerbaijan Grand Motors LLC www.grandmotors.az +994-125647494 United Arab Emirates General Navigation And Commerce Company (GENAVCO) L.L.C (Member of Juma Al-Majid group)

www.genavco.com +971-43961000 Saudi Arabia -Arabian Bugshan Group (Earthmoving machinery)

www.abugshangroup.com +966-14931018 -Yusaf Bin Ahmed Kanoo Co., Ltd. (Concrete machinery)

www.kanoocom.com +966-22632959 Oman General Engineering Services Est. (Genserv) (Member of Juma Al-Majid group)

www.genserv-oman.com +968-24490755 Qatar Al Arabia Heavy Equipment Co. L.L.C. (Member of Al Fardan Group)

www.alarabia.com.qa +974-44971090 Bahrain ZAYANI MOTORS W.L.L. www.zmotors.com +973-17703703 Kuwait Bahrah Trading Company W.L.L. www.bahrahtrading.com +965-1802008 Iraq Al Ittihadia General Trading Co. ( Member of Sardar Group)

www.sardargroup.com +964-662569888 Algeria S.A.R.L. SOCOPE www.socope.net +213-43273939

When it comes to diversification, nothing beats good genes. Having mastered the bulldozer, which stands at the top of the construction machinery food chain in terms of sophistry, we seamlessly developed an entire line of earthmoving, road, concrete handling, public utility and other machines that are now following in the tracks of our world leading bulldozers. Our rise to become the No. 1 bulldozer maker and seller in the world was no accident of nature. It is the result of persistent product development and machines that have proven to have high performance at a great price. It’s what we call VALUE THAT WORKS. Hard. Long. Efficiently. The Shantui brand now sells in more than 150 countries and regions round the globe. Contact your local Shantui dealer today to discover more about our entire product family and our worldwide ”Anytime, Anywhere Service” guarantee.

www.shantui.com

Editor’s Letter

PubliSher Dominic De SouSa GrOuP COO naDeem HooD ManaGinG DireCtOr RicHaRD JuDD eDiToRiaL GrOuP eDitOr STepHen wHiTe stephen.white@cpimediagroup.com +971 55 795 8740 DePuty eDitOr GaVin DaViDS gavin.davids@cpimediagroup.com +971 4 440 9118

Here comes tHe son pt 2

ast month saw Qatar’s ruler Sheikh Hamad bin Khalifa Al Thani pass on the prime ministerial reigns to his 33 year old son Sheikh Tamim bin Hamad Al Thani. Fittingly for a man that first took control as Emir in a bloodless coup in 1996, the handing over of power was done with admirable dignity and relative calm.

While Qatar has been perceived as being immune to the pressures that caused several regime changes across the region during the Arab Spring, it still symbolises a significant shift to a younger generation. Under Hamad, Qatar has not been afraid to intervene in foreign affairs. When the Taliban sought to open a foreign office, it was no coincidence that it did so in Doha. Bound to many countries by trading its energy exports, it has also become one of the world’s major investors. It has followed its gas.

COntributinG eDitOrS Jonathon Savill maRKeTinG & aDVeRTiSinG PubliShinG DireCtOr RaZ iSLam raz.islam@cpimediagroup.com +971 4 440 9129 COMMerCial DireCtOr micHaeL STanSFieLD michael.stansfield@cpimediagroup.com +971 4 440 9128 MarKetinG ManaGer caRoLe mccaRTHY carole.mccarthy@cpimediagroup.com +971 4 440 9157 DeSiGn SeniOr GraPhiC DeSiGner ReBecca Teece rebecca.teece@cpimediagroup.com +971 4 440 9168 JuniOr GraPhiC DeSiGner peRciVaL manaLaYSaY percival.manalaysay@cpimediagroup.com +971 4 440 9121 ciRcuLaTion & pRoDucTion CirCulatiOn anD DiStributiOn ManaGer RocHeLLe aLmeiDa rochelle.almeida@cpimediagroup.com +971 4 368 1670

The UK is one of its major customers and just prior to the leadership announcement it committed to almost double its investment in the country to $57 billion over the next decade.

DatabaSe anD CirCulatiOn ManaGer RaJeeSH m rajeesh.nair@cpimediagroup.com +971 4 440 9147

While the Western media scratches its head over why the FIFA World Cup is coming to the tiny country, Western economists are thoroughly aware of its prominence on the global stage.

PrODuCtiOn ManaGer JameS p THaRian james.tharian@cpimediagroup.com +971 4 440 9146 DiGiTaL

It may be difficult to draw any real conclusions in regards to its importance to the heavy equipment industry, but there are rumours that Tamim could shift the Gulf state’s emphasis on foreign investment to home.

www.constructionmachineryme.com

Riding on the high price of oil, Qatar has spent its money on other country’s property or, as in the case of Egypt, propping up their economies. The young former interior minister is reportedly keen that its wealth should be minted into sovereign wealth.

online@cpidubai.com

We should get a clearer idea in the months ahead as to whether a younger Emir means a more dynamic approach to its affairs, but the change suggests that this a man who can take Qatar to 2022 and reach its often neglected in the media but important goals for 2030. By then he will be celebrating his 50th birthday, while his father will be close to his 80th. Personally I’m hoping that this transition has been planned for some time and that much of the delays are ready to be cleared.

DiGital ServiCeS ManaGer TRiSTan TRoY maaGma Web DevelOPer JoeL aZcuna +971 4 440 9100 puBLiSHeD BY

Registered at impZ po Box 13700 Dubai, uae Tel: +971 4 440 9100 Fax: +971 4 447 2409 pRinTeD BY printwell printing press LLc

My guess is that towards the end of the year we may get to finally see Qatar is ready to seize the mettle, open its wallet and finally get the FIFA 2022 World Cup ball rolling.

© copyright 2013 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 21 JULY 2013

PUBLICATION LICENSED BY IMPZ

LIUGONG LOADS UP

Stephen White, Group Editor, CMME

Being ready for growth

THE BOYS IN BRAZIL Rail, roads and riots

AFTER THE FACT Into the aftermarket

CHINESE MANUFACTURERS

HEAVY METAL DRAGONS The beasts from the East PLUS: ACROSS THE INDUSTRY

NEWS & VIEWS

* RAW POWER *

TELEHANDLERS

AND MORE

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

July 2013

CONSTRUCTION

MIDDLE EAST

News Round-Up

NEWS

Five sentence For vallagio Fire

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

A Qatari court has sentenced five people, among them the country’s envoy to Belgium, to six years in prison over ‘negligence’ that caused a deadly fire that killed 19 people at the Villagio Mall in Doha. According to a report by Al Jazeera, the defendants will have the right to appeal, and will remain out of custody until the end of that process, which could last a year. The mall fire on May 28, 2012, saw 19 people killed, including 13 children, four teachers and two fire-fighters. Among the children who died were triplets from New Zealand and three Spanish siblings.

TeMple ToppING crANe A Terex cBe 24 plus selferecting crane continues restoration work at phnom Bakheng is the oldest temple complex of Angkor, cambodia

All the victims were expatriates. Investigators said last year that the fire was caused by an electrical fault. It had broken out next to the unlicensed Gympanzee nursery in the mall. Amongst the accused is Sheikh Ali Bin Jassim al-Thani, co-owner of the nursery and Qatar’s ambassador to Belgium. The rest include a second coowner of the nursery and members of the mall’s management team, who were unnamed. According to the pan-Arab broadcaster, two other defendants – the mall’s assistant manager and head of security – were cleared of all charges.

Contractor UCC and Mannai firm up partnership

eading Qatari contractor Urbacon Trading & contracting (Ucc) and Mannai Heavy equipment Division (Mannai HeD) have quadrupled the number of machines passed between the two companies in the last two years. The partnership began in September 2011, with the first batch of machinery comprising 17 machines in total, which has since more than quadrupled. Mannai HeD has been working to satisfy Ucc’s operational requirements for over a year and a half, helping to deliver effective, efficient and sustainable results based on the ever growing construction market in the country. commenting on the partnership, luigi rubinacci, general manager of Mannai After-Sales Auto Group said: “We are delighted that Ucc is convinced by our ability to deliver swift and effective solutions to its growing construction equipment need. Mannai HeD is recognized for providing prompt and competent after-

CONSTRUCTION

MIDDLE EAST

July 2013

sales service and our ongoing relationship with Ucc, which is now one of the largest contracting companies, is further testament to this.” The scope of delivery sees Mannai HeD providing Ucc with a range of JcB equipment including wheel loaders, hydraulic excavators, backhoe loaders, telescopic handlers, skid steer loaders, mini excavators, single drum rollers and walk behind rollers, as well as TcM forklifts and Massey Fergusson agricultural tractors. excellent after-sales packages are also offered along with the equipment. ramez Al Khayyat, managing director of Ucc said, “Mannai HeD is a widely respected supplier known for its reliability, and this is something that Ucc appreciates. priding ourselves on the timely completion of our projects, we know that we can trust Mannai-HeD to help make this happen. These projects are inclusive of major civil and building works, marine

works and high-end luxury resorts and residential complexes. our experience of working with Mannai HeD has proved this and we now look forward to building on this business relationship.” “Mannai HeD provides the highest standards in aftersales support and this has helped us a lot in fulfilling our requirements and realizing our projects on time,” added Moutaz Al Khayyat, executive director of Ucc.

Company intelligenCe Crane manufacturer Palfinger has communicated to United against a nuclear iran (Uani) that it is no longer doing business in the country. “as a result of the Uani camPaign, among other reasons, we have terminated our contract with the iranian dealer as well as any contact with iran two years ago,” Ceo Herbert ortner wrote. “palfinger products are mostly being sold through a network of independent dealers worldwide,” he wrote. “therefore we cannot exclUde that via dealers or via secondary markets in which Palfinger is not active oUr ProdUcts are made available to iran. Furthermore, there are also numerous older palfinger products in iran, something we cannot change.” in addition to its UCC news, mannai hed has been recognised with the prestigious manitowoc crane elite dealer award from grove mobile cranes. this is the second successive year in which mannai has received the award. mannai is also one of only two dealers in the middle east region who have won this award this year. the elite dealer award recognises dealers who raise and maintain the standards of their service and Parts facilities to an international level. Specific training requirements for the dealer’s personnel must also be met to be eligible for the award and representatives from grove and manitowoc conduct dealer visits to assess candidates’ progress in attaining the various criteria for the award. gUlf installments comPany (‘gulf installments’), the Saudi-based installment company focused on providing Shariahcompliant installment and leasing to businesses across a variety of sectors and assets, has announced that it has has opened a fUlly-fledged branch office in Jeddah and will be open in Riyadh during Q3.

tendeR UpdateS

Uk engineering consultancy hyder has won a $112m contract from ashghal for the design and construction supervision of a new section of the doha expressway projects. hyder’s scope, split into four separate projects, includes the concept design review, preliminary and detailed design, construction contract preparation, tender services and construction supervision services, the company said.

abU dhabi airPorts comPany is preparing to put out for tender bids on the next major contract on the vast midfield terminal. builders have poured the first structural concrete slab in its 700,000 sqm basement. the terminal will be completed by the third quarter of 2017.

Lift and Shift compLeteS Sohar operation Lift & Shift Middle East (LSEME), a joint venture incorporated in Oman between Fastco, an OHI Group company and India’s Apurva Parikh Group Company known as Lift & Shift India Pvt, a specialist offshore engineering and transport company have revealed that it has completed the safe transport of heavy equipment from the L&T plant in Sohar to the Orpic site. Formed to meet the growing ‘heavy lift’ demands of the local market through engineering and logistical support for moving heavy equipment and project based cargoes from different industries, the company has undertaken yet

another project successfully. The equipment comprising the main section of the Wet Gas Scrubber (Shell Assembly) weighing 95 tonnes and the (Cone Assembly) weighing 15 tonnes, fabricated by L&T at its Sohar Plant, was transported on special Self Propelled Remote Controlled Axles in a period of three hours. The complexity of the project was also driven by the fact that the equipment had to be delivered to site, which had a pipe rack with a height restriction of 7mt. This necessitated a special civil ramp to be created which was connected between Steinweg Port and Oman Refineries and Petrochemicals Co.

The operation was planned in collaboration with the Royal Oman Police, Sohar Industrial Port Company authorities, Steinweg port and Orpic. It was scheduled on a public holiday owing to reduced traffic for safety and all traffic routes and diversions were planned well in advance by Royal Oman Police and Sohar Industrial Port Company to ensure smooth transportation. LSEME said that it is proud to have undertaken such a project and is grateful to L&T, ROP (Royal Oman Police), SIPC (Sohar Industrial Port Company), Steinweg Port and ORPIC for their support in making this project a success.

15% logistics growth forecast for sharjah Sharjah’s transport and logistics sector is expected to grow by 15% annually over the next four years, driven by its fast growing sea and air traffic, according to a study released by the Sharjah investment and development authority (Shurooq). “transport and logistics is a very dynamic market in the emirate, where the total market size reached aed 3.53 billion ($960 million) in 2012, out of which aed 1.28 billion ($480 million) worth is sea freight and aed 0.7 billion ($191 million) is air freight, offering rewarding investment opportunities for local and foreign investors,” marwan bin Jassim al Sarkal, ceo of Shurooq said. the transport and logistics industry consists of twosub sectors, marine freight and airfreight, which have been experiencing a phenomenal growth due to major expansion plans and development projects. “as a responsible investment authority with a mandate to stimulate the emirate’s economy, Shurooq is now focusing on expanding Sharjah’s logistics infrastructure, taking advantage of the emirate’s strategic location

between europe and the far east as well as its direct access to the Gulf and the indian ocean,” said al Sarkal. “this location has led to a unique integration of land, sea and air links, offering a gateway to 160 countries serving 2 billion consumers, thus offering unbeatable logistical, warehousing and distribution advantages for investors,” al Sarkal remarked. “capitalising on this perfect location, the transport industry is expected to see a phenomenal growth, powered by the various megatransport projects that are currently underway, while many others are still in the pipeline,” he added.

July 2013

CONSTRUCTION

MIDDLE EAST

News Round-Up

HYUNDAI TO COMPACT

Hyundai has entered into a strategic partnership with German company Atlas to provide compaction equipment including single and tandem rollers.

Stevin Rock takeS teRex tRuck oRdeR to 20 Terex Construction has supplied 10 TR100 rigid dump trucks to work at Stevin Rock’s Ras Al Khaimah quarry, in the UAE. The site, the largest limestone quarry in the Middle East, had already added 10 of the 91-tonne capacity trucks to its fleet late last year, which are working at its sister quarry, Stevin Rock. Formed in 1975, the Governmentowned company runs more than 250 machines at the Ras Al Khaimah site. This includes 38 Terex TR100 rigid trucks, plus 20 of the previous 3311 and 33100 models. “We’ve got a big fleet of Terex trucks and that was a major factor in the decision to buy the new TR100s,” said technical and operations manager Simon Turner. Turner, who hosted CMME at the quarry last year, added: “The equipment was partly fleet expansion, along with an element of fleet renewal. We work 24/7, 365 days a year here and working hours on a machine can easily reach 7,000 hours per year.” The quarry reaches 800m into the mountains behind Ras Al Khaimah, with more than 20 active digging benches and up to 30km of quarry face. The lowest working area is 40m above sea level and the highest up to 450m above that. Using computeraided design, geophysical drilling and laser profiling, the experienced quarry team carries out blasting six days a week, with more than 120,000 tonnes of material being excavated each day. A mix of wheel loaders and crawler excavators load the limestone into a fleet of 110 rigid dump trucks, that carry the material to a range of crushers, screens and finally to Stevin’s own nine-berth all-weather harbour. Up to 70% of the material is exported throughout the Middle East and to the Indian steel industry. Turner took over running of the site last summer and has completely overhauled the working operation, with impressive results. The company has seen a 15% rise in efficiency

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September July 2013 2011

and an even more impressive 30% rise in productivity, with hardly any additional machinery or personnel. Equally importantly, health and safety at the quarry has improved significantly. “It is a continuous course of improvement. We’ve seen some big wins in terms of productivity, now the smaller things need to be assessed. This site is primarily about logistics, it’s a load and haul site. We have put the plan in place, now we need to prove it.” The new Terex trucks are certainly playing a part in the improved efficiency and productivity that is being achieved. “We’ve done a lot of time cycle analysis to see where improvements can be made. We’re also looking at excessive truck idling and correct positioning for better efficiency. We look at everything from an efficiency point of view now,” says Turner. “Having the new trucks has certainly helped in our understanding of maintenance of the new systems too.” The TR100 is the largest rigid dump truck in the five-model Terex line-up. With a heaped capacity of 57m3, the 91 tonne (100 ton) payload truck is powered by a 1,050hp (783kW) Cummins KTA38-C engine. This drives through an efficient Allison six-speed automatic, electronically-controlled transmission, featuring the CEC 2 Management Program. Automatic lock-up is available in all speed ranges, improving fuel efficiency and aiding productivity on site. The TR100 truck features rugged construction and durable components that are designed for excellent service life. Dual-retardation systems allow the operator to use both oil-cooled disc brakes and a hydrodynamic retarder which contributes to fast, safe haul times. The Terex TR100 delivers class-leading rimpull for exceptional hauling capability in all operating conditions.

RTA looks to Red Line fast track Dubai’s Road and Transport Authority will fast track the $1.36 billion expansion of the Dubai Metro Red Line to connect to Dubai World Central, if the Emirate wins the bid to host the World Expo 2020, a top official has said. Dubai has already earmarked a large venue for the Expo at Dubai World Central, a 140sq kilometre airport city that will host the 160 million passenger capacity Al Maktoum International Airport, which is set to be the world’s biggest greenfield airport project. “As soon as the bid results are out and if we win — which we will Inshallah (God willing), we start the planning and development of the project,” Mattar Mohammad Al Tayer, chairman of the Board and executive director of Roards and Transport Authority (RTA), told media personnel.

HiTAcHi & TATA Hitachi CM wants a “mutually agreed” way with Tata Motors to increase its stake in JV Tata Hitachi.

Al Tayer added that the plan to extend the Red Line to DWC had been in place for quite a while. Originally, the plan was

for the project to be linked with the growth in passenger traffic at the airport, which is scheduled to launch commercial flights in October, through a temporary five million passenger terminal. However, should Dubai win the right to host the World Expo in 2020, he said that work would begin in November of this year. The Al Maktoum International Airport opened in 2010 and currently handles cargo operations. Al Tayer also said that the UAE’s Etihad Railway would also pass through Jebel Ali, which is close to DWC, thus bringing additional visitors to the Expo site. “We have already floated the tenders for the next stage of Etihad Rail’s development. The entire project is expected to be completed by 2017, and that will bring additional traffic to the area,” Al Tayer, who is also on the Etihad Rail’s board, said during a visit to Paris.

cLeARing THe beAcH The UK Environment Agency has hired two new Doosan DX340LC-3 Stage IIIB compliant crawler excavators to demolish and remove steel box piles, rails and wood that made up old groynes on the beach in Suffolk.

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News Round-Up

MiAMi CoMpAny tArgeting Middle eASt

GBC looks to Green finanCinG The Emirates Green Building Council, an independent forum aimed at conserving the environment by strengthening and promoting green building practices, has proposed the creation of a financing scheme to promote the green retrofitting of existing buildings, to make them more energy efficient. According to the proposal, Emirates GBC will serve as the facilitator of the project, which aims to strengthen the uptake of financially viable, energy efficient projects in the country. It will meet with financing institutions, insurance agencies, suppliers and regulators to lend momentum to the project, the Council said. A dedicated taskforce has been set up to support the creation of the green financing scheme. It has worked with various stakeholders to address the current challenge of funding green retrofit projects, and has been in discussions with banks and financial institutions to obtain their inputs. “One of the key issues identified in our extensive studies to promote sustainable built environments is the lack of adequate financial support for retrofitting existing buildings to new green building standards. We observed a lack of awareness in the market about opportunities for energy retrofitting, and a scarcity of funds among landlords to make the necessary changes. Building owners also do not have any incentive to implement the energy savings because electricity bills are largely paid by the tenants,” Adnan Sharafi, Emirates GBC chairman, explained. “This encouraged us to focus on promoting the creation of a green financing scheme for existing buildings, as making them ‘greener’ will be a strategic step to address

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September July 2013 2011

the energy sector challenges we face today. A concerted industry approach, where stakeholders come together to create a financing scheme will significantly boost the green building sector of the UAE, and in turn contribute to the nation’s sustainable development.” Research conducted by the Intergovernmental Panel for Climate Change (IPCC) has highlighted that improving the efficiency of existing buildings has the highest potential for cost effective reductions in carbon emissions. Today, buildings account for the most significant part of electricity consumption, estimated at about 80% of total power usage. Additionally, traditional energy sources also lead to a larger ecological footprint. “With the nation now focusing more on a strong energy management strategy led by renewables and boosting efficient use of existing resources, green buildings can complement the approach effectively by reducing power consumption,” added Sharafi. “According to reports, the peak demand for electricity is expected to increase by 40% by 2020. Improving the energy efficiency of existing buildings provides a financially efficient strategy for the UAE to tackle energy-sector and environmental degradation challenges.” He added: “The UAE has clearly defined its goal of promoting ‘a green economy for sustainable development’ in the strategic vision announced by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai. With a serious and firm commitment from different stakeholders, we can further accelerate this vision by offering tangible support for sustainable building projects.”

Miami, Florida-based Expotractor says it is open for offers from customers based in the Middle East and Africa. Miami-based Expotractor says whether a construction company needs new wheel loaders and an articulated dump truck or a tractor truck and a lowboy trailer, it can now offer sa wide selection of both new and used construction equipment, from the top manufacturers to anywhere in the region. In addition to equipment sales, Expotractor is now offering parts sales, repairs, auction assistance, and worldwide delivery Expotractor has built its reputation working with a broad range of construction industry clients. This fact is demonstrated by the company’s extensive heavy equipment product list, which includes asphalt pavers, generators, loader backhoes, air compressors, wheel loaders, fork lifts, motor graders, asphalt reclaimers, excavators, compactors, dump trucks, and more. Along with heavy equipment, Expotractor offers trucks, including dump trucks, vans, flatbeds, cement mixers, tractors, pick-up trucks and more. Trailers, including step deck, reefer, flatbed, lowboy, and van, are also all available from Expotractor. “Expotractor has committed

itself to providing more services and achieving a higher level of customer satisfaction than its competitors. One of the major ways that Expotractor does more for its customers is in supplying equipment. “While many other companies sell heavy equipment and machinery, others don’t possess the same expertise in exporting equipment to Central and South America, Europe, Canada, Africa, and the Middle East,” says the company. Expotractor’s seasoned professionals know logistics and can get equipment to customers anywhere they are. Expotractor also has auction experts who offer assistance with purchasing equipment at auction, which can then be shipped anywhere it is needed. Finally, Expotractor also offers parts sales and repair services. And with competitive prices and fast turnaround, these services have become very popular.

SCC SignS $19.3bn KSA deAl Sadara Chemical Company, a joint venture between Saudi Aramco and Dow Chemical, has signed a fundraising package for a $19.3 billion petrochemical complex being built in the east of Saudi Arabia. Three banking sources told Reuters that the financing package totals around $12.5 billion and consists of loans from banks, export credit agencies and the stateowned Public Investment Fund. Proceeds from an Islamic bond issue will also be used. The remaining costs will be met by the two partners. Located in Jubail City, the facility will be the world’s largest chemical complex ever built in a single phase. It will produce more than

three million tonnes of petrochemicals each year when completed in 2016. Sadara was not immediately available for comment. The sources spoke on condition of anonymity as the matter has not been made public. The split between the different portions of the facility were changed from an original outline released in May 2012 after the success of the sukuk, which was

completed at the start of April, two of the bankers said. Sadara raised $2 billion from the local currency Islamic bond, having increased the deal size from $1.39 billion on strong demand from investors. Also included is a $4.975 billion direct loan from the US ExportImport Bank. Signed in September, it was the largest ever loan from the institution.

News Round-Up

Nakheel launches tender for Ibn Battuta Mall expansion Nakheel on Sunday that it had launched a tender for the expansion of the Ibn Battuta Mall, a new 28,000sqm retail hub that will bring another 150 stores to the existing complex. Spread over two floors, the expansion will offer 17,000sqm of leasable space and will link directly to the existing mall and will be within a few metres of the Ibn

Battuta Metro station, the developer said in a press statement. The existing mall is the world’s largest themed shopping mall, with a built up area of 114,000sqm. Set on a 521,000sqm site, the mall is themed around the travels of the 14th century Arabian explorer, Ibn Battuta. It has six individually

designed zones that are named after and feature architecture that reflects the most influential places visited by the explorer. The mall currently has more than 270 shops, 50 restaurants, a 21 screen cinema and over 4,500 parking spaces. The Ibn Battuta expansion is one of several projects in Nakheel’s retail expansion programme.

The developer is doubling the size of Dragon Mart, with the new, 177,000 sqm phase 2 due for completion in 2014. Other Nakheel retail projects underway or in the pipeline include Nakheel Mall and The Pointe on Palm Jumeirah, and community malls at Jumeirah Park and Discovery Gardens.

KSA’S Al Jouf Cement to Stop produCtion line for unSCheduled mAintenAnCe Saudi Arabia’s Al Jouf Cement Company announced that it had to stop its production line for unscheduled maintenance work from June 17 to June 30. In a statement posted on the Saudi bourse website, the cement maker said that the halt in operations would not impact on its ability to fulfil its obligations towards its customers. Maintenance work on the plant is expected to cost $1.6 million, the cement maker said, which would be reflected in its second quarter results. Al Jouf Cement has an annual production capacity of 1.23 million tonnes of clinker and 1.47 million tonnes of cement, data by Zawya. com found.

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September July 2013 2011

Carillion Alawai wins $202mn Oman Convention Centre contract the tender for the construction of package 2 at the oman Convention & exhibition Centre precinct, which is being developed by omran, has been awarded to Carillion Alawi llC, as approved by the Government tender Board. Worth a total of $202.6 million, the package will include the construction of exhibition halls, car park facilities and the district cooling plant. the scope of package 2, for the construction of a project considered one of oman’s most highly anticipated, includes a structured car parking facility that will hold 4,200 vehicles on three parking levels over an area of 143,000sqm. exhibition halls of approximately 45,000sqm gross area are also part of the package. these will also provide five divisible, state of the art walls, with service trenches, plant rooms and acoustically treated, vertically movable partitions to enable separation and sound isolation in each hall. furthermore, the package will comprise of a concourse with a glazed curtain wall system, fully equipped with a main production

kitchen and three cafes, hospitality suites, administration/office areas, a central landscaped courtyard and two circulation nodes connecting the concourse to the car park. Additionally, the scope will also cover the ancillary buildings, namely the energy Center which serves as the district Cooling plant for the entire precinct, security screening facility, taxi amenity building, waste management building, a landscape maintenance building and electrical substation facility. the project also features a number of sustainable initiatives in conservation of energy, potable water and use of treated sewage effluent for cooling and irrigation and thus targeting leed certification from the uS GBC. eng Wael Al lawati, Ceo of omran stated that the award of this package represents a major milestone for the company as this is the second major construction package to be awarded by omran after the award of the development of the Site infrastructure and utilities package late last year. he also expressed that this award certainly makes everyone anxious

to see the first part of the iconic oCeC landmark project materialize within 20 months from today and omran is in the process, as part of the project execution plan, to release a series of other packages by the end of the year that include the Convention Centre building with a capacity of a 3200-seat auditorium and banquet halls, a 5-star hotel, a 4-star hotel, and a number of class-A office buildings. eng Said Al Qasmi, oCeC chief project officer said: “omran as a prudent developer, has invested a lot of efforts during the various design stages of the project to scrutinize all the design options presented to ensure maximum use of local materials utilizing the local supply chain and also allocated marks during the evaluation process of the submitted tenders to the ‘local Content’ criteria. We do not select contractors only because of their track record and technical capabilities in the field of construction but importantly, for relevant and specific proposals to use an extensive list of qualified local subcontractors and suppliers.”

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Expert Opinion

The game of the people CMME’s Gavin Davids has just returned from Brazil,a country that is falling out of love football a year away from the World Cup.

aving spent a week in Brazil last month, touring the Mane Garrincha Stadium and other assorted projects currently underway in Sao Paulo, Brasilia and Rio de Janeiro, it’s with some interest that I’ve been viewing the demonstrations that have broken out across the South American country. The concerns that have been put forward by the Brazilian people are very real and hold the government and leaders of the country to an uncomfortable truth. Just what will be the long term benefit of the World Cup and Olympics to the country and its people? While FIFA and the IOC has often sold its premier event as a force for good, the reality is that host

nations often end up massively in debt and forced to tighten their belts economically. According to data collected by the BBC, South Africa’s World Cup saw FIFA rake in revenue of $3.2 billion on a budget of $1.23 billion. Meanwhile, South Africa’s budget for the event was a mammoth $5.3 billion, or 1.72% of GDP. On one month long event. This included building and redeveloping stadiums, creating new transport infrastructures and upgrading security systems. This is what Brazil’s people are protesting about. While these sporting events are massive prestige building exercises, there needs to be tangible long term benefits from them. Otherwise, the

“ThIS IS WhY BRAzIl MATTeRS TO QATAR. We neeD TO lOOk AT WhAT IS hAPPenInG TheRe AS A WAkeuP CAll. SOMeTIMeS, TheRe’S MORe TO lIFe ThAn JuST FOOTBAll.”

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money could be better spent on education, healthcare and other social benefits. This is what Qatar must realise as it continues to build for the 2022 World Cup. The need for a transport infrastructure is vital for the Gulf state and the growth of its planned public transport network must continue on past the World Cup. Right now, a lot of what I’m hearing from Qatar seems to be short term thinking: “Get everything sorted out for the World Cup and worry about the rest later” is the general attitude and that is deeply worrying for the future. Yes, Qatar deserves to hold the event and it should be given every opportunity to prove that it can, and I’m confident that it will. But equally importantly, the country needs to ensure that it’s people benefit from the work that’s gone into the building for the World Cup. This is why Brazil’s experience matters to Qatar. We need to look at what is happening there as a wakeup call. Sometimes, there’s more to life than just football.

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Heavy Hitters

A DrAgon on Fire CMME talks to York Liang LiuGong Middle East’s president about the company’s ambitions for the region.

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iuGong is the exception to the rule that Chinese companies do not fully understand the Middle East market. While its fellow Chinese manufacturers have often struggled in the region to establish a viable footprint, it has frequently chosen to take bold steps where others have been timid. This was exemplified in 2011, when it opened its 2,200sqm fully functioning and able distribution centre in Jebel Ali Free Zone with the express belief that it would enable it to provide service supports and parts across the region. The facility has already proven to be a sound investment and useful staging point as it tackles markets such as the UAE, Qatar and the all important Kingdom of Saudi Arabia. CMME’s deputy editor Gavin Davids met with York Liang during the recent Project Qatar event to get an update on its progress and its plans to benefit from a surge in the market. LiuGong Machinery Corp was founded in 1958 in Liuzhou, China and based upon units sold, LiuGong is one of the largest wheel loader manufacturers in the world. As its expansive DC suggests, the company has traditionally specialised as being one of the pioneers of Chinese manufacturing. In fact, it can claim to being the first company in China to begin manufacturing heavy equipment and broke ground by producing the country’s first modernised wheel loader in 1966. In the following five decades, LiuGong has been integral in China’s startling modernisation and infrastructure development programme. Using the wheel loader as its base and trademark machine, it has subsequently gone on to expand its product line and business interests, adding new lines of equipment such as excavators, and diversifying

July 2013

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The imporTance of Jebel ali LiuGong, a top 500 Chinese manufacturer and top 20 international construction equipment manufacturer, officially opened its Middle East base at JAFZA, Dubai in November 2011. LiuGong is an ISO 9001 quality certified company, with a product range including equipment such as wheel loaders, excavators, bulldozers and motor graders; compact

by purchasing and operating factories producing skid steers and bulldozers, as well as concrete pumping equipment. Its long standing relationship with Cummins reached a new landmark in April with the opening of a Liuzhou City-based 200,000sqm factory, which is producing 9.3l, off-road engines jointly engineered by the two companies. The plant, one of the largest diesel engine factories in China, has a capacity of 50,000 units per year. The Cummins partnership also gives Liugong access to clean-diesel technology – so often denied to Chinese companies - that it needs to meet various emission regulations around the world. Today, LiuGong has 15 product lines. Wheel loaders, excavators, truck mounted and crawler cranes, bulldozers, rollers, motor graders, forklifts, mini excavators, skid steers, backhoe loaders, pavers, cold planers, concrete equipment, drilling machines and mining dump trucks are currently available in the global market. The company is already a global leader in the design and production of wheel loaders. In 2011, LiuGong held nearly 13.8% of the global market share in wheel loaders and nearly 17.1% share domestically. The company which employs more than 14,000 including over 1,000 engineers working in three world-class research and development facilities around the world.

GoinG overseas LiuGong formed its overseas division in 2004, and the division has grown rapidly. The company supports its global product lines with a rapidly-growing, worldwide network of more than 380 dealers across six continents in over 115 countries. The LiuGong dealer network provides 2,650 sales outlets around the world. The exciting aspect for LiuGong is that despite this impressive track record in global markets to date, in many ways its transition from Chinese powerhouse to global player has only just begun. The Middle East is very much to the forefront of its plans. Liang explains that the company experienced a pick-up in demand in 2012 following the universally difficult 2011. “The last year was better than 2011,” he affirms. “And I hope this year is better than last year.” The Jebel Ali facility has been a boon to LiuGong. While there has been an increase in the number of

equipment including skid steer loaders; road equipment like pavers and rollers; and forklift, cranes and concrete equipment. “The new facility of LiuGong is expected to generate over US$100 million in revenues annually,” said York Liang, president of LiuGong Middle East FZE, at the ceremony on October 31. “The Dubai office brings us closer to our customers and dealers,

to meet any demand for machinery or spare parts swiftly. The office will help our customers to enhance their efficiency by reducing the time for technical support, and enable us to introduce to the Middle East region the latest products developed by our global R&D centres,” Liang continued. The new facility, sprawling over 2200 square metres, was opened by Zhan Jing

Bao, general consul for the consulate general of the People’s Republic of China in Dubai. Also present were company president Zeng Guang’an; LiuGong Middle East chairman, Li Yu Ning; LiuGong Middle East president York Liang; president’s assistant and GM of overseas sales and marketing, Luo Guo Bing and other senior officials of LiuGong and Jebel Ali Free Zone Authority.

projects and tenders in the region as governments free up budgets, he explains that his positive outlook for the coming year is based on refinements to the operation. “We have paid more attention to parts to take of customers and I think this has given us the structure to succeed.” One common observation of Chinese companies supplying to the region has been a difficulty in crossing cultural and business divides. However this is slowly being disproven by companies like LiuGong who have been proactive in building relationships with customers. “We have built relationships with all the friends in the industry - including the magazines! – in each country. The top priority is the customer. They are first and we insist that we do that. We want to make them our partners and give them confidence.” LiuGong has become a fixture at many of the regional tradeshows including the Construction Machinery Show. At Project Qatar it supported its

“THE TOP PrIOrITy IS THE CuSTOMEr. THEy ArE fIrST. WE WAnT TO MAkE THEM Our PArTnErS And GIvE THEM COnfIdEnCE.”

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local partner Al Attiya Motors and Trading. “As you know Qatar is the place for the World Cup and there will be improvements to people’s standard of living. The indications are that the government will invest into infrastructure and other areas such as healthcare, universities, education. That is good for us,” he asserts. “You know the heavy equipment always relates to such cases.” His outlook, then, is largely positive. “There are good prospects for Qatar.” To position itself for the much anticipated 2022 FIFA World Cup construction boom in Qatar, LiuGong is currently developing its relationship with Al Attiya, a company that has a decent record for representing Asian brands, including KIA in the country. Liang is keenly aware that Qatar remains a country of potential rather than realised projects, but is happy to have a dealer partnership firmly in place. LiuGiong will be ready when Qatar is ready. “We set up the dealership with Al Attiya Motors to take care of local customers in the future,” he comments. He adds: “As you know the announced projects for Qatar are a little delayed. I think that the government will take action to improve the launch of projects. They have a limited time to prepare for the World Cup. I think that next year or the after they will launch. This means that the market will demand a huge amount of equipment to finish in the short time.” He continues: “This is a big challenge for government, for contractors and also for us.” Looking ahead to the road and stadia building that will be required to host the event he identifies the types of machines that will be suitable for Qatar. Understandably wheel loaders are among them. “There are a lot of projects that will require construction equipment,” he enthuses. “Wheel loaders, excavators, mobile cranes and road building equipment. All of them will be important solutions for the projects.”

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“In Modern bUsIness, FInAnCe Is THe Top

prIorITY For ALL orGAnIsATIons InCLUdInG THe deALers And end-Users.” With so much to be done, but so little known regarding timings and final plans, he explains that for now LiuGong is happy to wait for feedback from customers and its dealer partner before specifying the logistics of serving the market. However with the Jebel Ali operation continuing to evolve he is confident the company can meet any challenges that may come its way. “We are not a manufacturer that only supplies the equipment,” he says. “We supply the service and support to the partner and the end-user. We supply service, technical training, spare parts, finance packages and maybe in the near future we will launch second hand (support).” offering financial support to end-users is rare among its Chinese rivals in the region. He explains why it is important for LiuGong to take on the risk. “In modern business, finance is the top priority for all organisations including the dealers and endusers,” he says. “Anyone who wants to do business needs capital. so those that can provide such packages can provide the future. We will provide some finance to our dealer and the dealer can provide to the end-user. business is changing.” Looking ahead to the future, Liang is quietly confident that LiuGong can forge a place in the regional market. “We will double or even triple our revenues in the next five years,” he predicts. “but this depends on security and the political (climate). I hope everything will be okay and stable. but in the long term there is a huge potential for us to serve the Middle east, Africa and all over the world.”

LiuGong factory is founded in Liuzhou 1966 LiuGong manufactures China’s first modernised wheel loader 1976 Adds its first articulated and oversized wheel loaders to its ranges 1993 Becomes China’s first publically-listed construction machinery company 1995 Enters into a JV with German transmission specialist ZF 2000 Acquires Jiangyin Roller Company and soon expands its product offering to include a total of 12 different product lines 2011 Signs JV agreement to build a new mid-range engine manufacturing facility in Liuzhou with Cummins. Opens new DC in Jebel Ali, Dubai, to serve region 2012 LiuGong unveils its 10th generation excavator range to world markets. In February 2012 it acquires HSW and Dressta. 2012

Special Report

The big pay-off

Research firm the Beijing Axis presents story of the rise of the Chinese giants

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SANY ScoreS biggeSt ever thAilANd order Sany’s status as the fifth largest manufacturer in the world has been founded on progressive global growth. This was typified last month by securing the largest ever machinery deal in Thailand.

by Natee Panichewa, chairman and Kaned Suviwattanachai, assistant chief executive officer of Unique Engineering and Construction Public Co and Xie Feng, VP, Sany Group of China and CEO, SANY Asia-Pacific BU.

Prapat Chongsanguan, governor of the State Railway of Thailand (SRT), presided over the signing ceremony for a purchase agreement of machinery between Unique Engineering and Construction Public and Sany Group.

The import order of $80 million will help expedite the construction of the Mass Transit System Project in Bangkok (Red Line).

The contract was signed

Unique is one of the major contractors in Contract 1 of the construction of the project which has an approximate budget

of $900 million. Its contract covers civil works for the Bang Sue Grand Station and depots, the construction of the Bang Sue Grand Station, Chatuchak Station and building, an elevated railway structure, as well as maintenance depots for commuter train, long-distant train and stabling yards. Currently, the four-year plan for the construction of the Bang Sue Grand Station and the depots is on the agenda. “Apart from providing cutting-edge machinery,

SANY Group has founded SANY College to professional industrial workers,” said Kaned Suviwattanachai, Assist CEO of Unique Engineering & Constructions. “These attempts have made SANY Group to be a seamlessly integrated player in the construction industry of China. We have complete confidence in Sany and thus has decided to purchase their machinery for this project. We believe with the aid of Sany, the construction will proceed effectively and efficiently.”

“Sany HaS aCquIRed aSSeTS FROM ITS PaRenT COMPany TO eXPand ITS CaPabIlITIeS wHIle ZOOMlIOn HaS TaRGeTed THIRd PaRTIeS TO SCale uP.”

ccording to a report by Off-Highway Research (a consultancy specialising in the research and analysis of international construction), China’s share of the global construction machinery market jumped from 18% in 2002 to 32% in 2009 in terms of sales volume (see chart above). China’s three leading pioneers in this regard are Sany Heavy Industry, Zoomlion and XCMG, which have emerged as the three dominant manufacturers that together account for about 30% of the market in China, larger than the top three foreign companies active in China (see chart below). Indeed, these three are now ranked in the top ten in terms of sales revenue globally. Out of these, Sany and XCMG only started operating in the early 1990s but quickly transformed themselves from being single product machinery companies to ones that boast comprehensive production lines. In contrast, Zoomlion is China’s second-largest, and the world’s tenth-largest, construction machinery manufacturer. It emerged out of Changsha Construction Machinery Research Institute, a leading state-owned research institution focusing on construction machinery, effectively affording it a strong competitive advantage. Though the industry in China is highly fragmented with over 900 companies vying for market share, a majority of them only manufacture components or engage in sub-assembly due to the hefty upfront financial investments that are required. In addition, intense competition between both domestic and foreign participants as well as rising demand for improved and advanced technology have forced small operators to either be acquired by more established players or simply exit the game. In fact, the large in-house companies have supplemented organic growth and scaled up rapidly through consolidation. In the past decade, Sany has acquired assets from its parent company to expand its capabilities while Zoomlion has targeted third parties to scale up its product offerings. For example, Zoomlion acquired Hunan Puyuan Construction Machinery’s truck crane business and Zhongbiao’s environmental and sanitation machinery business in 2003.

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Special Report

This consolidation is being further encouraged by the government, who is actively promoting consolidation in the industry to avoid disorderly competition among local manufacturers. Furthermore, equipment manufacturing is one of the seven strategic emerging industries identified in the 12th Five Year Plan that the government will focus on so as to foster the development of a sound market environment; hence consolidation will be an ongoing trend in the industry going forward. Chinese construction machinery manufacturers are also afforded tax breaks and other incentives from local Chinese governments, enabling them to take a long term view of the market rather than just focusing on short term profits. It is worth noting that foreign enterprises have had little opportunity to compete against local competitors in this consolidation drive due to regulatory restrictions, and have been unable to acquire majority stakes in joint ventures with domestic firms. This has allowed local rivals to gather market share from foreign companies and at the same time narrow the capability and quality gap by integrating independent enterprises’ abilities via strategic acquisitions. Moreover, foreign enterprises have simply not been able to increase production fast enough to meet rising demand, diluting their market shares. The product portfolios of China’s three largest industry players mostly overlap, yet there is diversity in their product offerings and this unique characteristic defines some of the dynamics in the industry. Zoomlion has the world’s most diverse range of products including concrete machinery, tower cranes, road and earthmoving machinery, environmental sanitation machinery, and bulk material transportation equipment. Despite such a diversified portfolio, revenue sources are balanced between its two largest segments, concrete and crane machinery, contributing 43% and 34% to total revenue, respectively, in 2010 (see chart below). Sany leads the local market for truck mounted concrete pumps and full hydraulic rollers; its production of pump trucks is one of the best in

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OPPOrTUNITY TO COMPeTe AGAINST lOCAl COMPeTITOrS IN ThIS CONSOlIDATION DrIve.”

the world. Compared to Zoomlion, it is less diverse and its most important segment, concrete, alone contributes more than 60% of its total sales revenue. Nonetheless, after Sany acquired the excavator and truck crane businesses from its parent, its level of business diversification started closing in on Zoomlion’s, with product categories expanding to include concrete machinery, road construction machinery, excavator, pile driving machinery, hoisting machinery and port machinery. XCMG is the world’s largest manufacturer of truck cranes, which account for most of its total revenue. The comprehensive line of products it offers includes construction mobile cranes, crawler cranes, wheel loaders, concrete boom pumps, piling rigs, aerial fire trucks, asphalt pavers and cold milling machines. Over the years, Chinese companies in various industries have successfully moved up the value chain by offering a wide range of products and the construction machinery industry is no different. Foreign companies have historically served the Chinese excavator market by leveraging their strong expertise and precision quality. Yet according to CCMA data, Chinese companies now control one-third of the global excavator market, up from 22% in 2006. Such strategic moves have undeniably boosted their overall competitiveness and allowed them to capture market share from their foreign competitors in China and in other emerging markets. The global presence of US-based Caterpillar and Japan’s Komatsu has been strong for decades as they began expanding abroad early on when growth in their domestic markets slowed with urbanisation reaching a saturation point. Following a similar strategy, Zoomlion, Sany and XCMG have been encouraged to expand into foreign markets because

of their solid positions in the Chinese market, worldclass products, sustainable low cost advantage and China’s expansive infrastructure projects. Sany in particular has led domestic equipment manufacturers in overseas expansion. However, the three differ in their overseas expansion strategies. Zoomlion focuses on a direct M&A route to expand, integrating its costs and scaling its position in China while leveraging its target’s distribution network and technical capacities. CIFA, a global manufacturer based in Italy, was a very strategic acquisition for Zoomlion that strengthened the latter’s R&D capabilities and helped increase its global market share. In contrast, Sany has preferred to expand by building its own plants in foreign countries. For instance, Sany recently built research and development centres in Brazil (2010) and Germany (2009) as part of an ambitious international expansion plan. Also, it is the first Chinese construction machinery player to set up factories in India and the US, where it opened a $60 million assembly plant in 2011 to assemble truck-mounted pumps. This was then followed by its purchase of Putzmeister. This move has been mirrored by XCMG, China’s largest construction machinery maker, who is now a majority shareholder in Schwing-Stetter. Traditionally XCMG has opted to cooperate with foreign capital and foster close partnerships with overseas dealers. The group has already established close cooperation with nearly 100 dealers who

help sell its products globally, but most notably in emerging markets like Indonesia, Brazil and Russia. Among these key differences, there is one commonality that exists in the internationalisation strategy of all three of China’s major machinery manufacturers - they have been aggressively marketing their product overseas though new distributing channels with a core focus on emerging markets, namely Brazil, Russia, India, the Middle East and Africa. Emerging markets are sweet spots for these companies because it is difficult to access developed US and European markets where dominant and established players, such as Caterpillar, emphasise their value-added after sales services. Emerging markets, like the Middle East, on the other hand, are more price sensitive, and prices of machinery equipment from Chinese manufactures are typically 15-20% below foreign competitors, providing buyers in emerging markets with a considerable overall cost saving. Another important reason is that, like China, these countries are experiencing a similar urbanisation process and are consequently investing a lot towards infrastructure improvement, providing Chinese enterprises a potential market to tap into.

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Site Visit

Outlet pOuring CMME looks at the deployment of machinery currently working on the DragonMart2 expansion in Dubai.

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Abu Dhabi wants to tempt shoppers away Abu Dhabi has surpassed Dubai as the most active shopping mall development market in the Middle East, with more than 0.8 million square metres under construction in nine schemes, according to a new report by CBRE. In its latest survey measuring the level of shopping centre development in 180 of the world’s major cities, CBRE said Abu Dhabi currently ranks number 10, while Dubai is in 25th place. Commenting on the Abu Dhabi market, Mat Green, Head of Research UAE, CBRE Middle East, said: “After a period of significant undersupply, where many of the major malls have been running at close to 100% occupancy, we are now entering into a new growth period for retail stock.”

“Over the next four years around 0.8 million square metres of new mall space across nine schemes will be delivered to the market, helping to establish Abu Dhabi as a new destination for retail in the Middle East.” “During this period we will see a dramatic transformation of the retail landscape, both in terms of supply and quality. We are also expecting an influx of new retail brands, some of which will be opening their first stores in the region. Overall, we see this is an exciting time for retail in the capital,” Green continued. Worldwide, an unprecedented 32 million sq m of shopping centre space is under construction in the 180 cities covered in the survey, some 15% more than at the same time last year, CBRE said.

ocated on the Oman-Hatta highway outside of Dubai, the mammoth Dragon Mart has earned its reputation as the world’s biggest trading hub for Chinese products outside of the Chinese mainland. On a daily basis, the 158,000sqm shopping mall sees more than 52,000 visitors passing through its doors. Currently 1.2km long, the mall opened in December 2004 and at present has close to 4,000 retailers operating in its premises. Fuelled by increasing demand though, Nakheel, the developer behind the project, announced in June 2012 that it had started construction work on a $272.2 million expansion of the shopping mall. Once work on the 177,000sqm expansion is complete, the entire complex will have a total area of 335,000sqm, or the size of 47 full-size international football pitches, the developer said. The second phase of expansion will see the construction of a mall, hotel and multi-storey car park. As the pace of construction picks up and progress on the foundations continues, Engineer Mohammed Rashed Bin Dhabeah, managing director of Development, Projects, Logistics and Shared Services for Nakheel, and the man overseeing the massive construction project hosts a site visit to the site. “Right now we have about 60% of the foundation of the mall completed, 80% of the foundation of the hotel completed and we’re powering ahead with development,” he explains during the site tour. “Now we’re getting the columns up, that’s in preparation for the first floor slabs. We have a programme in place and our target is to complete the construction by the first half of next year. The fitting out stage will then start, for the tenants to fit out all their stores and be ready for the opening,” he explains. Nakheel has signed $163.35 million in contracts for the second phase of the project since the summer of 2012, and as work continues, it is preparing to launch new tenders for further construction work, Dhabeah reveals. “We have awarded three major contracts (so far), the shopping mall construction contract, the car parking contract and the hotel contract.” “We have more to be awarded – the plaza, the landscaping and the mechanical units, such as chillers, pumps and such things, a central utilities plant, basically,” he says.

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site visit

Phase2 is overseen by consultant Dar Al Handasa (which was also the consultant for Phase One). United Engineering Construction is the main contractor for the mall and Kele Contracting is the contractor for the hotel and car park. With the scheduled completion date just a year away, Dhabeah says that the amount of workers onsite will increase rapidly as construction progresses. At present there are 1,300 workers onsite daily, but he expects to reach around 4,000 workers at the peak of construction. “There are no marked delays; we’ve signed the contracts with all the contractors. There was a time when we had to get all the NOC’s, the permits and everything. We’ve got all that and we’ve started work on the area. On the site, the activity is very rapid and very intense,” he asserts, pointing out that concrete is being poured at between 700-800m3 per day. The parking facilities in Phase Two of the project will accommodate 4,550 vehicles, with 2,000 in the multi-storey car park, 1,750 on the mall roof and a further 800 at street level. This will swell the total number of car parking spaces to 7,050. Nakheel adds that 80% of the available retail space in the second phase has been taken, with tenants including major retail players such as Geant hypermarket and Grand Cinemas. The new hotel will cover 8,500sqm and will have 240 rooms for guests. Dhabeah adds that for the most part, the project has not experienced any major issues to date due to the thorough preparations and planning carried out by the consultant and contractors; though he concedes that it is not the most complicated of projects . “I think there are no difficulties in the mall or the hotel, because it’s a straightforward construction. A two-storey shopping mall and retail, it’s like any other project. We have so many projects in the

area and we don’t see any different challenges or anything. It’s just been normal day to day work, dealing with the labourers and that sort of thing,” he explains. “It’s just a (ground + one) shopping mall. It’s not a very complex.” However, one thing that did require, and will continue to need careful monitoring and planning is the workforce on the construction site. With summer fast-approaching, government authorities have already begun preparations to monitor the health and safety of onsite workers during the blistering heat of July and August. Dhabeah says that these circumstances, as well as Ramadan timings, have all been factored into the planning of the construction schedule. As such, he does not expect there to be too much disruption to the construction schedule of the project. “In summer, there are certain arrangements that are normal to the industry. There are breaks during summer and the contractors are part of the system, they’re not new to the region and they need to provide the proper areas for rest and so on,” he says. He then continues: “Normally Ramadan comes during the summer and the contractor work hours reduce, they emphasise on the night shift. During the day, they’ll do the preparation, all the concreting and all the other issues will be during the night work, because the weather is better. All the proper equipment is there.”

Pouring is currently in excess of 800m3 per day. The amount of workers onsite will increase rapidly as construction progresses. There are 1,300 workers onsite, but will reach around 4,000 at the project’s height.

“THERE ARE NO mARKED DElAys; WE’vE sIGNED THE CONTRACTs WITH All THE CONTRACTORs. ACTIvITy Is vERy RAPID AND vERy INTENsE.” July 2013

CONSTRUCTION

MIDDLE EAST

NOVEMBER 25, 2013 JUMEIRAH EMIRATES TOWERS, DUBAI

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Product Focus

Raw power EVERYTHING YOU NEED TO KNOW. page52

INTO THE WORKSHOP

Why contractors are relying more and more on dealers for their servicing needs.

page 47

TOP TEN RECYCLING TIPS

page 56

SECTOR ANALYSIS

Tips to avoid tipping on site. Read CMME’s guide to ensuring that nothing is wasted on site.

Telehandler technology is reaching for new heights.

page 41

HEAVY DEMO

Liebherr’s R 944 C-SHD crawler excavator is a specialist machine designed for the selective dismantling of buildings.

page42 UP SHE GOES

Linden Comansa’s crane impresses in Russian show debut

page 43 ALL TERRAIN GRADE

Bobcat upgrades its grading technology for road applications.

July 2013

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MIDDLE EAST

New Products

RussIa RIsIng foR LInden’s cRane Why get it? Quick and Easy to hEight 10% improvEmEnt to loads

n early June, the Spanish tower crane manufacturer Linden Comansa temporarily left aside its characteristic blue corporate color for a Russian show. At Moscow’s CTT tradeshow, Russia’s most important fair, Linden Comansa exhibited a golden 16LC185 tower crane, which not only noted for its extravagant color, but for its advantages and innovations. Included in the LC1600 Series, the 16LC185 brings together whatLinden Comansa describes as its main advantages over similar sized designs from its rivals. Firstly it has a Flat-Top design without pendant lines, it is easy to transport thanks to its paneled tower sections and its compact design, and it is quickly and easily erected due to its lightweight components and its assembly system with pins. Secondly it the crane features the Effi-Plus high speed hoist mechanisms, the PowerLift system, which improves the load diagram by 10% at reduced speeds, and includes frequency variation in the slewing movement, which decreases potential maintenance problems. The exhibited crane at Moscow’s Crocus Expo Centre was the medium

version of 16LC185, with maximum load capacity of 10t, although this same crane is available in versions of 8t and 12t. Bashkransnab, official distributor of Linden Comansa in Russia and coexhibitor at the fair, sold the crane to a local construction company, who will soon install the crane in a jobsite in the center of Moscow, where it already has several Linden Comansa cranes. Also, many other offers have been done during the show, which Bashkransnab and Linden Comansa expect to be confirmed very soon. In addition to the interest for the cranes from the LC1600 Series, many visitors have also asked about the cranes from the LC1100 series (with maximum load capacities from 5 to 8 tons) which are highly popular in Russian market, and from the LC2100 Series (between 12 and 48t). While containing plenty of kit appropriate for the Middle East and Africa, CIT remains a Russian-centric event. Most of the visits to Linden were top constructors and machinery rental companies from the Russian Federation, and also from former Soviet republics, such as the satellite countries of Kazakhstan, Belarus, Azerbaijan or Ukraine.

SPeciFicationS (eFU4-37-30 hoiSt): • trolley: CFU-7.5 • Slewing: (2x) GFU-7.5 • travel: (2x) TRA-7.5 • operating Voltage: 400V • generator: 115kV

high reach take doWn Why get it? ExcEllEnt viEwing Easy tool changE

SPeciFicationS: • engine Power: 190 kW • Weight: 58t • reach: 23m

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Liebherr’s R 944 C-SHD crawler excavator is a specialist machine designed for the selective dismantling of buildings. It is powered by a Liebherr diesel engine that complies with Stage IIIA / Tier 3 guidelines on noise and exhaust emissions. The R 944 C-SHD has been fitted with a sixcylinder in-line engine, which generates an output of 190 kW / 258 hp at 1,800 rpm. With its special equipment, this demolition excavator – which weighs around 58 t – has a reach of 23 m. Its equipment includes a 9.3-m adjustable

demolition boom, a 2.25-m intermediate boom and a 6.3-m demolition section. To protect the equipment components, the excavator is fitted with robust piston rod protection on the bucket ram and protected quickchange couplers as standard. As with all Liebherr demolition excavators, this machine features a 360° working radius, which can be used without any adverse effect on the excavator’s stability or reach. The cab on the demolition excavator, which can be tilted up to 30° upwards, offers an excellent view of the working area.

Narrow grousers and the installation of a wiper motor below the front windscreen also improve visibility. Of course, the front and roof windows are made from threelayered, laminated safety glass. What’s more, the cab is fitted with single-piece FOPS falling object protection, mounted straight onto the tilting system. As well as Liebherr Tool Control, the standard equipment on all Liebherr C-series demolition excavators also includes the LDC Liebherr Demolition Control System for convenient alternation of hydraulic tools.

bobCat makiNg the grade Why get them? Go sonic for all-terrain fast switchinG Bobcat is now offering a new wider range of grading solutions based around the company’s compact loaders and grader attachments. The new expanded range of grading equipment is designed for use by asphalt and concrete contractors for excavating and grading work for new roads, pavements, concrete flatwork, tennis courts, utilities and landscaping projects. Loader-mounted Bobcat grader attachments can now be combined not only with a new comprehensive choice of Bobcat laser grading equipment but also the new Bobcat sonic tracer kit, the first sonic tracer system of its kind for compact loaders, to provide automatic grade control in applications where lasers may not be suitable. Laser grading requires the job site to be on a

Liebherr improves WheeL Loaders Why get it? improved power improved emissions At the 2013 Komatek, Liebherr exhibited the L 576 wheel loader with the latest engine from the generation complying with IIIB / Tier 4i exhaust emission limits. The version exhibited has a 4.5 m3 rock shovel with delta-pattern cutting edge and ESCO V33 AD teeth and segments. The standard L 576 model has a service weight of 24,450 kg and a maximum tipping load of 17,500 kg. The Liebherr 6-cylinder diesel engine has a rated output of 205 kW (279 hp). The machine exhibited at the Komatek is equipped with a rear-end underride guard and a TOP AIR first-stage dust trap.

plane, whereas the sonic tracer can follow nearly every terrain. The sonic tracer also provides an advantage when grading inside buildings with obstacles where the laser beam could be interrupted. The new Bobcat sonic tracer system also offers the advantage that if the user already has a laser system mounted on the grader, they can also mount the sonic tracer on the blade, allowing them to switch between using the grader with the sonic tracer or the laser system. The Bobcat sonic tracer kit is designed for use with the new enhanced 274 mm wide HD Grader 108 and 244 mm wide HD Grader 96 heavy duty grader attachments which will also be shown for the first time at Bauma 2013. The new HD Grader 108 heavy duty attachment is approved for use on the Bobcat S770 and S850 skid-steer, T770 and T870 compact tracked and A770 all-wheel steer loader models. The HD Grader 96 attachment covers the same models with the addition of the smaller T650 compact tracked loader. The new graders feature a 6-way blade plus hydraulic side-shift of up to 33 cm left or right, both of which are fingertip controlled so that the operator can grade nearly any surface without needing to take their hands off the control levers. There are four twoway hydraulic functions including left side up/down; right side up/down; blade rotation left/right and blade side shift left/right. speCiFiCatioNs: • Width: 274 mm • movement: 6-way • side-shift: 33cm

The engine output of the L 576 has been increased, and all the large new-generation machines have an optimised tipping load limit that further improves productivity and stability. In addition to the Z-bar linkage for standard operating tasks, Liebherr supplies industrial lift arm. No other manufacturer offers both lift arm versions in every machine category at no extra cost. Liebherr continues to use hydrostatic Drive concept together with another Liebherr development: Liebherr Power Efficiency (LPE) - an electronic mapped-characteristic control system. This increases the machine’s handling power and keeps fuel consumption to a minimum. Compared with other machines in the same size category, the innovative driveline concept cuts fuel consumption by as much as 25%. Less fuel is needed for the same performance, and tyre and brake wear are reduced. The new-generation diesel engines are now even more environmentally friendly, with many other improvements, too: precision common-rail fuel

CatCh a superLiFt From terex Why get it? focus on roi turbine titan the 650t terex superlift 3800 lattice boom crawler crane features a maximum load moment of 8.426m tonnes and is designed to provide its owners outstanding return of investment. this unit is designed for worldwide transportation and to reduce erection times and the need for additional equipment. a wide array of safety features, including the award winning terex fall protection system, come standard. the superlift 3800 can be delivered with an integrated wind kit in a universal main boom system: the crane is capable to erect wind turbines of 117m without using

the available superlift boom configuration. also, an assist crane is not required by plant managers to help erect the main boom in this configuration. the superlift 3800 is the first terex crawler crane to feature the all new terex cabin design. providing operators with an improved enclosed working environment, it was developed with extensive feedback gathered from customer workshops, leading industrial stylists and experts in ergonomics. the terex superlift 3800 conforms to both the european norm eN 13000 and the us standard asme b30.5. it can lift a maximum load of 650 tonnes at a radius of 5m to 12m.

injection optimises the combustion process and reduces pollutant emissions. Exhaust emission control is by means of a diesel oxidating catalytic converter combined with a diesel particulate filter. In most situations, this filter can be actively regenerated by burning off deposits during operation.

speCiFiCatioNs: • Capacity: 4.5 m3 • service weight: 24.45t • max tipping load: 17.5t • engine output: 205 kW

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

July 2013

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MIDDLE EAST

New Products

Dynaset urges PeoPle to get on their bike

a dirt bike equipped with hydraulic power take off [hydraulic output of 40 l/min and 200bar] provided a power source for Dynaset hydraulic power washer hPW200 mobi unit at its bauma exhibit. the demonstration proved that hydraulic powered Dynaset equipment can be installed on every machine, also for those which don’t have

hydraulic system. the demonstration showed that hydraulic magnet Dynaset hmag700 is a complete unit for demolition scrap recycling. hmag connects directly to breaker, grab or extra hydraulics of an excavator, crane and truck by two quick couplings without any further installation. hydraulic

Drill sergeant from liebherr

The powerful Kelly winch and the rope crowd system with 40 t pull force offer a significant technical advantage. The operator is thus provided with maximum performance and reliability even with the most difficult soils and under extreme operational conditions. Special highlights of the LB 36 are the solid design of the leader as well as extremely robust kinematics with a large cross section. The machine thus offers a remarkable high stability. Hence, the LB 36 considers even the heaviest demands, which are nowadays imposed on modern rotary drilling rigs. For the operator this results not only in high performance but also in less wear and therefore in a longer service-life of the machine. Basic machine and leader can be transported in one piece. This allows for quick and easy transportation of the rigs and thus for flexibility in jobsite assignment. The time-saving quick assembly system for leader and crawler track assemblies of the LB 36, which is typical for Liebherr rotary drilling rigs, represents another significant advantage. This enables the transport weight to be reduced by 20 t without having to pull out the cables or remove parts of the leader. Like all Liebherr piling and drilling rigs the LB 36 is also fitted with the proven Litronic control system.

Why get it? Stability aSSurance Working in the Middle eaSt environMent Liebherr’s LB 36 has proved a hit in the Turkish market. Part of Liebherr’s series of pure rotary drilling rigs, is designed and manufactured in Nenzing, Austria, possesses unique features like a stable leader design, robust kinematics as well as a broad range of possible applications. Like all rigs of the LB series, the LB 28 has been specially designed for Kelly drilling, drilling with double rotary head, continuous flight auger as well as for soil mixing applications. Turkey is a significant market for Liebherr’s deep foundation division. Taking the past three years as reference, every seventh deep foundation machine has been delivered to Turkey in this period. The LB 36, weighing approximately 115 t, is designed for drilling diameters of up to 3 m and drilling depths of maximum 88 m. Its rotary drive offers a torque of 366 kNm. The rig is driven by a Liebherr V6 diesel engine with 350 kW (476 hp) and complying with the certification stage IIIA / Tier 3.

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

CONSTRUCTION

MIDDLE EAST

July 2013

flow turns the magnet on and flow shut down demagnetizes it automatically. several excavators or cranes can use the same hmag at work site. at the demonstration fiat scudo 25kW with hVo hydraulic power take off powered Dynaset hWg180 welding generator and Dynaset hPW520 hydraulic power washer. the product demonstration showed the efficiency of working with Dynaset equipment which are always ready to use and available at the work site. extremely light weight and powerful Dynaset hWg180 welds and repairs pipelines, steel constructions, wearing parts, etc. and provides electricity for tools, lights and other electric equipment. Practically hWg180 can be installed on all machines. Dynaset hPW520 hydraulic power washer produces power of 26kW, water pressure of 520bar and water flow of 30 l/min. hPW-pumps has the best power-to-size ratio in the World and [depending a model] they are used for power washing, street-, pipeline- and bin cleaning, dust suppression, water cutting, hydro demolition and scaling, firefighting, drilling fluid pumping, water hydraulics, washing robot, underwater works, etc.

sPeCifiCations: • operating weight: 115 t • Drilling diameters: up to 3m • max drilling depth: 88 m. • rotary torque: 366 kNm. • engine: Liebherr V6 diesel engine with 350 kW

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Estimates

imum n i m mateRials a o t oved site R p t i im to p n Kee often dow of excess. actices is

pR nce ough site nd avoida ateRials a waste thR m g f in o c t u en ed R ovem minimum m stoRage,

dryWall to recycle drywall is easy to recycle and reuse. builders can use scraps of it to plug openings in walls, and workers can also use bits of it to fashion forms to support wet concrete. drywall can also be turned into agricultural products.

maKe sure you hold onto steel for its strength recycled steel maintains its strength and durability. in fact, all steel framing contains at least 28 percent of recycled steel. to build a typical 2,000-square-foot house, workers will use an amount of steel equal to about six junked automobiles.

Wood you believe it

Wood is a rare resource here and builders can also reuse wood to construct new barns and fences. thatâ&#x20AC;&#x2122;s not all. machines can easily grind waste wood so that it can later be turned into particleboard.

Top 10

things to recycle Turn your construction site into a green site with CMMEâ&#x20AC;&#x2122;s guide concrete debris once thought of as mere garbage, concrete debris is now routinely recycled and reused, saving builders millions of dollars and freeing up space in landfills.

a WindoW on recycling if you can reuse your old windows in any construction and renovation project, then you should. While recycling windows and other glass products might seem like a good thing, builders rarely do it.

July 2013

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MIDDLE EAST

Estimates

Hold onto your old mAcHinery if youâ&#x20AC;&#x2122;re not going to or canâ&#x20AC;&#x2122;t sell on your used and ageing kit, then make sure that you keep it for old parts.

roAd to re-use Asphalt. each year, thousands of miles of roadway are resurfaced or replaced. Builders not only use asphalt to build roads in residential neighborhoods, but also in highways, airport runways and parking lots.

Avoid exc ess

Do not or Der signif icantly m than can ore conc be realis rete anD tically u silos if p mortar seD befor ossible. e setting . use mor ta

Wired up

copper can fetch up to $3 a pound in some areas. in fact, the copper recycling market is so lucrative that thieves often break into construction sites to steal copper piping and wire.

try not to Burn ruBBer there are several million old tyres in the region, many of them in unmanaged landfills. Because of the high fire hazard, the tyres represent a threat to health and the environment.

Good Form WorK

Formwork can be used at least three times prior to disposal. there may also be scope for recycling of formwork as mulch, as long as treatments are not a hazard.

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

July 2013

CONSTRUCTION

MIDDLE EAST

The Tracks TO yOur Tears Special Interview

When an engine fails or a tyre bursts, contractors and plant managers are relying more and more on their dealer partners to stay up and running.

cONsTrucTION

MIDDLe easT

July 2013

ith the nearest workshop frequently hundreds of kilometres away servicing and maintenance is often required on-site. The delivery of spare parts – promised in under 24 hours in other parts of the world – is also fraught with problems. Dealers struggle to hold onto the same inventory their Western and Asian counterparts can keep in huge reserves or get directly from OEM or OEM approved suppliers within hours. To overcome these challenges, contractors have traditionally run their own servicing operations onsite or nearby. This had the advantage of speeding up the repair by teams that got to know each machine, including its eccentricities and foibles intimately. The region’s contractors have often been disparagingly described as being only interested in running their equipment into the ground. There is a perception that persists that they are only interested in price and not a return of investment in the kit – however that is frequently not the case.

In fact, smaller contractors have also preferred to run their own servicing, repair and maintenance operations as they could control the maintenance programmes in the hopes of protecting their investment in machines they can later sell on before re-investing in their plant and fleets. This has often led to maintenance routines that are more intense and frequent than recommended by the manufacturer. Those who recall CMME’s visit to Al Falah’s operation on the Fujairah truck road, will no doubt remember owner Abdullah Farhat boast that he prefers to keep engine oil changes on his Cat trucks down to 150 hours not the recommended 250 hours. However Farhat is increasingly the exception rather than the norm. The global financial downturn has forced many companies to re-assess the value of running their own servicing and maintenance operations. Workshops and the necessary investment in workers, training, equipment and running costs has

“THE GLObAL FInAnCIAL DOWnTuRn HAS

FORCED MAnY COMPAnIES TO RE-ASSESS THE vALuE OF RunnInG THEIR OWn OPERATIOnS.”

made them increasingly expensive. The cut-backs have been slow but relentless, leaving some unable to fully service their fleets even as a recovery takes hold in areas such as the Gulf, which is experience a relatively strong pick-up in activity. At the same time, dealers, often spurred on by their OEM partners, have sought to fill the gap by expanding their own aftersales operations. The net result is a trend towards a greater reliance on them to act as a symbiotic and sympathetic partner with contractors. This comes at a cost of course, but it is one that many are open to when the alternative is investing in real estate. In many ways after sales has become the key battleground for contractor attention. That’s why you see a company like LiuGong (read CMME’s interview with York Liang on Page 16) invest so heavily into its Jebel Ali distribution centre or why when Roots Group decided it needed to ramp up Case’s presence in the market it opened one of the biggest facilities in the world in Jeddah. “We’re pleased we’ve got it,” Roots CEO Ousama Fansa explained. “Obviously the parts and services will be run out of Jeddah. For Case it is one of, if not the largest, in the world. It is on 15,000 sqm of land and with a built up area of 5,000 sqm. And this is just for the Saudi market. From there we can supply spare parts within 24 hours. Everything does not

July 2013

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MIDDLE EAST

Special Interview

The aftermarket explained Genuine/OE Genuine or (OE) Original Equipment is basically the original part used by the manufacturer on the car when it left the factory. That part could have been made under contract by an OEM supplier other OEM supplier, for instillation on the new machine. There are many parts like body panels, brake rotors, interior trim items, etc. that are made in the car manufacturer’s own factories, or sometimes factories under contract to produce that product only for the car manufacturer. OEM Original Equipment Manufacturer refers to a part that is manufactured by a company like Bosch, Mann, Hella and others under design from the car manufacturer, like Audi, VW, etc. This part is then made available for sale by the OEM manufacturer, but in that manufacturers packaging. In many instances the car manufacturer’s part

number and logo are removed to prevent copyright infringement. OEM Equivalent A part that would be considered an OEM or Original Equipment Manufacturer Equivalent would be one that is, for instance, an OEM part for one car company say Saab but not for another car company. A good example of this would be an oil filter for a particular Volvo engine is Mann, however the OEM oil filter for a particular Saab is Mahle. Aftermarket Is just that, something that is made by a supplier other than the OE or OEM manufacturer. Unfortunately the quality of aftermarket parts can vary widely. At epsparts. com we do our best to eliminate any aftermarket supplier if their products do not meet our high standards, i.e. are not close to the OE or OEM part in quality, fit and part life with the Genuine or OE part.

have to go through our workshop and warehouse for this busuiness.“ Talking of scale, this year saw Caterpillar open its massive 47,030m² spare parts hub, promising to aid its own dealer’s attempts to maintain pace with the growing competition. “The expansion of the Cat Parts distribution network is another way Caterpillar is delivering on our commitment to providing unmatched parts availability to customers and dealers around the world,” explained Stu Levenick, Caterpillar group president for Customer and Dealer Support. “The grand opening is a great way to reaffirm our promise to providing the right part, at the right place, at the right time for our customers.” “We are very pleased to be adding the Middle-East Distribution Center to our industry leading global parts network,” said Steve Larson, Caterpillar vice president with responsibility for parts distribution and logistics, and president of Caterpillar Logistics, Inc. “With the outstanding product support capability of Cat dealers in the region and the improved parts availability this operation will deliver, we will continue providing customers an unmatched level of after-sale support.” The Middle East Distribution Center fits snuggly into Caterpillar’s storage and supply capacity for the Europe, Africa and Middle East (EAME) network, adding to existing Distribution Centers in Grimbergen, Johannesburg and Moscow. “We are excited about our overall growth opportunities in the Middle East and Africa markets and, along with our dealers, are investing

“ThE nEW MEDC WILL uS To BEnEfIT our

DIrECT CLIEnTS. IT WILL ALSo SErvE To IMProvE EffICIEnCy of oPErATIonS ACroSS A vArIETy of SECTorS In SAuDI ArABIA.”

CONSTRUCTION

MIDDLE EAST

July 2013

in expanding our facilities,” said nigel Lewis, Caterpillar vice president with responsibility for EAME Distribution. “The Middle East Distribution Center is the first of a number of investments we are making in the region that will allow us to improve parts and components availability and the delivery process to our dealers and customers.” Zahid Tractor’s EvP fahad y Zahid says that Caterpillar’s new Middle East Distribution Centre in the uAE will help it to improve its operation in Saudi Arabia. The new facility was officially opened in the Jebel Ali free Zone at the end of March and has been built to assist the strengthening of Caterpillar’s after-market parts support network in the region. “Caterpillar’s new MEDC signifies an important investment in the region and a dedication to the perennial progress of the Middle East economy,” said Zahid. “The enhanced logistics and service offering the new MEDC will enable us to offer will not only benefit our direct clients, but it will also serve to improve efficiency of operations across a variety of sectors in Saudi Arabia. “our partnership with Caterpillar has played an integral and vital role in the development of the Kingdom’s construction industry for more than 60 years. We are proud to continue this role, helping to facilitate our country’s substantial current and future projects in commercial real estate development, industrial expansion and the infrastructure sector.” volvo’s partner in the uAE and Saudi Arabia fAMCo’s storied growth in the GCC region is being powered by its parts and distribution network. Like many other companies, its engine is based in Jebel Ali. Mark Johnson, general manager – Aftersales, explains why the landscape of what happens after the sale of a machine is changing. “over the last few years machinery sales have been very volatile but in terms of the aftermarket it’s much more stable,” he says. “The peaks and troughs have been nowhere near on the scale of equipment sales. of course when the downturn

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UAE (Abu Dhabi) Darwish Bin Ahmed & Sons Tel.: +971 (0) 2 558 4800 www.dbasons.com UAE (Dubai) United Motors & Heavy Equipment Co LLC Tel: +971 4 2829080

Oman Bahrain Jordan Arabian Engineering Services LLC Ahmed Mansoor Al A‘ali Co. BSC (c) Integrated Automotive Tel.: + 968 245 78 000 Tel.: + 973 1 777 1030 Tel.: +962 (6) 5728400-207 www.saudbahwangroup.com www.al-aali.com www.nuqulgroup.com Qatar Iraq & Lebanon Pakistan Qatar International AutomobilesTerramar GmbH MAN Diesel & Turbo (Pvt.) Ltd. Tel.: + 974 4603 288 Tel.: +49 40 27073 232 Tel.: +92 42 3533 0091 www.fahedgroup.com www.terramar.com www.mantruckandbus.pk

KSA Haji Husein Alireza & Co. Ltd. Tel.: + 966 2 6049 444 www.hha.com Kuwait Al Ahlia Heavy Vehicles Tel.: +965 2 4839 210 www.ali-alghanim.net

Special Interview

“THE MOrE TIME YOU InvEST In gETTIng THE

rIgHT MACHInE FOr THE rIgHT APPlICATIOn, THE MOrE IT dElIvErS AFTEr SAlE.” happened in 2008/2009, a lot of machines were exported, stood down, moth-balled and so business did suffer slightly. But we’re now back up to and above the peak levels of 2008. The aftersales business is exceeding those levels.” He says that although construction activity has picked up, the aftersales market is being driven by greater reliance on companies like Famco to support contractors and other customers. “One of the trends that we saw, which became an opportunity for us, was during the crisis a lot of people closed their workshops down, made technicians redundant. And of course we don’t do that,” he continues. “We didn’t shut any of our workshops down and didn’t get rid of any of our aftersales staff. So we’re in a position to pick-up on that business. “When you look at the cost of operating a workshop as to outsourcing it to the right sorts of people, it’s not that different. There’s not the capital investment in equipment or premises, service vans; we’ve got all that. We can offer that service over night (in the UAE) with no capital investment from the customer.” As he explains, he reels out a list of what that investment could entail for a construction company or contractor: “You’re talking 100,000 dirhams for a pick-up. The same again for tools and equipment. It’s a big investment.”

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

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Ultimately, he says, contractors need to avoid the risk that level of investments requires; especially in the current climate. He also suggests that improving its aftersales offering has helped FAMCO to weather some of rougher patches of economic climate in the past few years. “We’ve got the scale,” he comments. “We don’t rely on any one product - our broad range protects from some of the spikes in the market. Also the amount of aftersales business we carry out protects from spikes in unit sales. We have a very healthy absorption rate in the aftermarket. Of course we feel the effect of any upturns or downturns in the market but because of the diversity we’ve got, we’re not reliant on any one particular segment. “(The aftermarket) is not where the money is, it’s where you offer something different in the sales process; the importance you are going to give to the machine, operator and customer as part of the overall solution,” he comments. “Once the machine has been sold the touch points are with the aftersales team, whether that’s maintenance, servicing or repairs. Performance issues normally come back to the aftersales guys.” Finally he issues advice to buyers: “The more time you invest in getting the right machine for the right application, the more it delivers after sale.”

Sector Analysis

Whatâ&#x20AC;&#x2122;s on tele? Telehandlerâ&#x20AC;&#x2122;s continue to prove their versatility in a variety of applications. CMME gives you the low-down on the best

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What is a telehandler? A telescopic handler, or telehandler, is a machine widely used in agriculture and industry. It is similar in appearance and function to a forklift but is more a crane than forklift, with the increased versatility of a single telescopic boom that can extend forwards and upwards from the vehicle. On the end of the boom the operator can fit one of several attachments, such as a bucket, pallet forks, muck grab, or winch. In industry the most common attachment for a tele-handler is pallet forks and the most common application is to move loads to and from places unreachable for a conventional forklift. For example, telehandlers have the ability to remove palletised cargo from within a trailer and to place loads on rooftops and other high places. The latter application would otherwise require a crane, which is not always practical or time-efficient. In agriculture the most common attachment for a tele-handler is a bucket or bucket grab, again the most common application is to move loads to and from places unreachable for a ‘conventional

machine’ which in this case is a wheeled loader or backhoe loadal. For example, telehandlers have the ability to reach directly into a high-sided trailer or hopper. The latter application would otherwise require a loading ramp, conveyor, or similar. The advantage of the telehandler is also its biggest limitation: as the boom extends or raises while bearing a load, it acts as a lever and causes the vehicle to become increasingly unstable, despite counterweights in the rear. This means that the lifting capacity quickly decreases as the working radius (distance between the front of the wheels and the centre of the load) increases. When used as a loader the single boom (rather than twin arms) is very highly loaded and even with careful design is a weakness. A vehicle with a 5,000lb (2.2ton) capacity with the boom retracted may be able to safely lift as little as 400lb (225kg) with it fully extended at a low boom angle. The same machine with a 5,000lb lift capacity with the boom retracted may be able to support as much as 10,000lb (5ton) with the boom raised to 70°.

CB used a Swiss Army Knife as a way to explain the multiple talents of its backhoes a couple of years ago, and CMME thinks there are a few other machine types that could also be deserving of the same comparison. One of our favourites is the telehandler. The main advantages of this type of machine are its multitude of uses or versatility and free movements and maneuverability. Telehandlers were able to exceed the popularity of cranes and forklifts by doing the jobs of both cranes and forklifts. This type of machine can easily reach the places which conventional forklifts cannot reach or cannot maneuver to. This type of machine is able to become more usable compared to forklifts without sacrificing its maneuverability; surprisingly this type of machine can be easily positioned and repositioned even if it has a solid and heavy chassis. Telehandlers were developed initially to serve the agricultural market and this has been both a help and a hinderance to their adoption. One of the newest of all machine types, the Middle East has yet to been slow to realise how they could fit or even replace other loaders and lifts in the less temperate conditions of the region. There has also been a suspiscion that operators may also not be up to the task of being able to use them properly and safely. Solid and heavy they may be but there are two main disadvantages that telehandlers: stability

“THE STABILITy ISSuES THAT rEvOLvE ArOund TELEHAndLErS ArE uSuALLy rELATEd TO THE rAdIuS LIMIT Of THE MACHInE.”

and the costliness of its improvements. It is in the nature of this machine to extend even up to the limits of gravity and calculated balance. However, the expertise that would limit the human error in machine related accidents takes a long time of practice and education. The stability issues that revolve around telehandlers are usually related to the radius limit of the machine. The radius pertains to the distance of the front wheels and the centre of the load of the boom. To aid in solving this problem manufacturers, retailers and service providers of this machine use advance computer calculations to balance out factors such as angel, height of the boom extension, weight of the load and counterweights. Bobcat recently revealed its updates to its range. It claims its T40140 14m and T40170 17m models are the most popular with contractors in the Middle East market. Like all Bobcat telescopic handlers, the T40140 and T40170 models use state-of-the-art technology providing optimum performance and manoeuvrability and a host of other advantages. Both are equipped with longitudinal and lateral stability control combined with an Aggravating Movements Arrester (AMA). When the maximum authorised capacity is approached, the red load status indicator lights up. At the load limit, the audio overload alarm is triggered and all hydraulic movements are blocked except for the retraction of the boom to alleviate the situation. The cab is designed for simplicity and spaciousness, so that the operator is able to work all day in a comfortable environment. The cab rests on 3 ‘Silentbloc’ shock absorbers and is fitted to the chassis via the patented ‘Zebullon’ suspension

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Sector Analysis

system, which absorbs impact energy when operating the telehandler. For the T40140 telehandler, the maximum lift capacity is 4t and the maximum lift height is 13.61m. The capacity at maximum lift height on tyres is 2.5t, while at maximum reach (9.8m), the capacity is 0.25t. Unloaded, the T40140 weighs 10t and provides a crowding force of 5000 daN. The T40170 telehandler has the same maximum load of 4 tonne and a maximum lift height of 17.43m. The capacity at maximum lift height on tyres is 1.25t, while at maximum reach (13.73m), the lift capacity is also 1.25t. Unloaded, the T40170 weighs 11t and provides a crowding force of 5000 daN. The T40140 and T40170 models have two front stabilisers, which move independently, are fully adjustable, and can be contained within the overall width of the machines, an important advantage when travelling on public roads. Rumaillah Motors used Project Qatar to demonstrate CMME favourite Genie’s GTH-4017. Modifications have been made to the GTH-4017 SX Telehandler for improved serviceability, maintenance and safety, making the machine ideal for rental. A new four section boom has been added to the GTH4017 SX, making the Telehandler more compact when fully retracted. The machine maintains its usual stability due to a dedicated stability control system, standard on all Genie Telehandlers, and to a hydraulic accumulator smoothing out shocks while operating the boom. The GTH 4017 is in the 4t class and offer a reach of 17.19m. It delivers an impressive 700kg lift capacity at a maximum forward reach of 13.3m. With energy efficiency, simple operation and innovative serviceability features for straight-forward maintenance, the redesigned models also offer bestin-class performances in their respective categories from a smaller footprint. This makes them ideal for tough work in congested environments.

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Moreover, Genie says operators will enjoy the precise and easy use of a multi-function 4x1 joystick and while manoeuvring the machine they can take advantage of the optional rear tyre alignment system. The GTH-4017 SX Telehandler features a newgeneration cabin designed for operator comfort and productivity, placing controls and load charts within easy reach. The operator can enjoy increased comfort whilst appreciating the power and smoothness of the new hydrostatic transmission. JCb claims its telehandlers are one of the most popular brand in the market due to its versatility, productivity and low cost of ownership. The JCb 533-105 has proven to be a worthy workhorse on sites and nearing its first decade in the market is available in the $25-30,000 price range. The models are designed for the harsh environments and high utilisation that is part and parcel of your daily life, and are built to deliver the kind of reliability that ensures optimum uptime for your business. The 533-105 is able to lift maximum payload of 3300kg to maximum lift height of 10.22m the 533105 meets the needs of the modern house builder who needs a stabilised machine, which is highly manoeuvrable and versatile. The 533-105 is also fitted with 63kW engine, 4 speed powershift transmission, 3 mode steering with automatic wheel alignment, servo brakes and JCb cab with operator friendly two lever controls and eye level load moment indicator. The JCb Q-fit self levelling carriage accepts pallet forks and a wide range of attachments.

“A NEW FoUR SECTIoN booM HAS bEEN AddEd To THE GTH-4017 SX, MAkING THE IT MoRE CoMPACT WHEN FUlly RETRACTEd.”

Exclusive Distributors for Saudi Arabia

T. Al Sharqawi Trading Branch Est Head Ofﬁce – Jeddah Branch Bab Al Mandab St. Al-Hammra, Muna Youssuf Plaza, P.O. Box 1553 Jeddah 21441 Tel. +966 2 6643972 | Fax +966 2 6646690

Branches

Riyadh: +966 58 333 3914 Dammam: +966 3 850 1654 | +966 54 917 5094 Jazan: +966 7 280 0497 | +966 55 666 6039

Website: www.eldidigroup.com Email: info@soilmecarabia.com aftersales@soilmecarabia.com | Eng. M. Nadeem sales@soilmecarabia.com | Mr. Samir G. Jarrouche

Tech on auTo Show Review

CMME drops into Automechanika and finds a thriving market in the UAE and beyond.

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What the industry said… Automechanika Dubai 2013 has reported another record breaking edition, having welcomed more than 24,000 trade visitors from around 130 countries, a 16 percent increase on 2012. The rapidly growing fair – 25 percent larger in terms of net space occupied featured 1,482 exhibitors from 58 countries and is now a confirmed stalwart on the international trade fair calendar. “Driven by the strength of the Automechanika brand worldwide, the Dubai edition has firmly established itself as a must attend event for anyone interested in doing business within the automotive aftermarket in the Middle East and wider region,” said Mr. Ahmed Pauwels, CEO, Epoc Messe Frankfurt, organiser of Automechanika Dubai. Saudi Arabia, Iran, Pakistan and India were the largest visiting countries after the UAE to Automechanika Dubai 2013. With approximately 130 visiting countries, the show’s reach is unparalleled for the automotive aftermarket. During the fair, exhibitors reported on the key role which

Automechanika Dubai plays in their business. Dr. Khaled Alexander Sabbah, Managing Director at ZF Middle East, said: “The number of valuable contacts, the high caliber participants and the many face to face encounters with our customers make Automechanika Dubai an exceptionally important platform for ZF in the Middle East”, while Mr. Camillo Riccetti, Area Sales Manager, BF Germany GmbH, commented: “Automechanika Dubai is essential for our markets.” Speaking about the wide product areas covered by Automechanika Dubai, Mr. Asad Abbas Badami, Managing Director for A-Map, said: “We have to be here because it is important for our identity in the automotive market and this is the only exhibition that puts all parts of the automotive industry together in one show.” Furthermore, Mr. Arnd Franz, Managing Director of MAHLE GmbH, said: “The main reason for MAHLE to participate at Automechanika is its consistent global concept, whether it takes place in Dubai, Shanghai or Frankfurt – the fair successfully orients on the aftermarket target group.”

A Automechanika remains predominantly an auto-parts event, but it is well supported by companies serving a variety of related sectors including high perfomance vehicles, as well as those working in the truck and heavy equipment sectors.

utomechanika has earned its place at the centre of the aftermarket since first coming to Dubai over a decade ago. In that time, the host city has established itself as one of the world’s major re-export hubs. Unfortunately its pre-eminence within the global network of shipping and trade has also made it a target for the shadow web of counterfeit. In their recent report, Omar Obeidat and Munir Suboh of law firm Al Tamimi described it as “one of the world’s hottest spots for counterfeit goods”. “It has emerged as an international transit centre for goods, mainly genuine, but inevitably with its lucrative business-friendly shipping and logistics capabilities, it has also become a re-export point for counterfeit goods. UAE seaports handle more than 10 million containers a year, with the majority of these passing through Jebel Ali,” they wrote. “As a result, rights holders invest more in enforcement in the United Arab Emirates than in any other country in the Middle East and Africa. Dubai’s ports and its state-of-the-art transport and free-zone infrastructure remain attractive to counterfeiters and transit traders. The increase in re-export trade may result in growth in counterfeit trade, so it remains an ongoing task for brand owners to enforce their rights.” The fight against counterfeit has been taken up by the UAE government, keen to curtail what is a major obstacle firming up its exalted position in the region - especially as other countries continue to invest in ports and industrial free zones that would ease access into their borders for essential good including auto and heavy equipment parts. So important has the issue become, Dubai’s leader Sheikh Mohammed bin Rashid Al Maktoum even took to Twitter to tweet in January detailing a new draft law which is aimed at combating commercial fraud in the UAE, including dealing in counterfeit goods and false advertising. He described the proposed law’s intention to protect local markets and safeguard the rights of consumers and traders, declaring that “transparency is crucial to support our national economy”.

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“The focus of many brand owners is to rely on the Commercial Fraud Law and its Executive Regulations as these enable action to be taken quickly and cost effectively through administrative authorities,” says Harriet Balloch of World Trademark Review. “The proposed law will repeal the Commercial Fraud Law, and it will impose tougher sanctions for dealing in counterfeit goods by way of increased penalties and by providing the administrative authorities with additional powers to combat infringing activity. “It is not yet clear how the provisions of the draft law will interrelate with the provisions of the Executive Regulations, which may remain in force (to the extent that they do not conflict with the draft law) until new regulations and resolutions are issued.” A clear, workable solution would help the accountability in counterfeit cases and benefit the many exhibitors that support the event.

A record breAker Having said that, Automechanika Dubai 2013 reported another record breaking edition, having welcomed more than 24,000 trade visitors from around 130 countries, a 16% increase on 2012. This growth was best demonstrated by a 3m high 3D bar chart that split two of the show’s main halls where other shows have stagnated in the past few years, this year’s event was 25 percent larger in terms of net space occupied featured 1,482 exhibitors from 58 countries. Despite being dominated by auto parts, it arguably now has the best range of OEM branded parts, tyres and lubricants for trucks and equipment at any regional show, and it’s not even trying. Automechanika has found a natural partner in Dubai Customs and the organisation chose to use the event to reveal in depth figures at Automechanika Dubai underlining strength of growing industry The total automotive aftermarket trade in Dubai was worth US$ 10 billion in 2012, the first time it has ever hit the US$10 billion mark, underlining

“A CLEAR, WORKABLE SOLUTION WOULD HELp COUNTERFEIT CASES AND BENEFIT THE MANy ExHIBITORS THAT SUppORT THE EvENT.”

the city’s importance as the hub of a flourishing international trade route, it told delegates at the Automechanika Academy, on the sidelines of the event. The Dubai Customs figures revealed that the countries of Japan, China and Korea were the largest importing countries, making up 51% of automotive total trade while Saudi Arabia, Afghanistan and the Sultanate of Oman made up the top export and reexport markets. A further breakdown reveals that parts and accessories of motor vehicles was the largest importing sector with $133 million or 22% of the total. New pneumatic tyres of rubber for motor cars, trucks and lorries came in next at $117 million while parts for engines made up another 5% of the total trade. Furthermore, on the export and re-export side, parts and accessories of motor vehicles made up 28%, or $117 million, while new pneumatic tyres for cars, buses and lorries made up another 17% at $608 million. According to research firm Frost & Sullivan, official knowledge partner for the event, auto components consumption across all vehicle categories in the GCC was estimated at US $8.85 billion in 2012 and is set to surge to as much as US $14.4 billion by 2016. Research also indicates that UAE and Saudi Arabia form the largest auto component markets in the GCC, making up as much as 78% in total. Kuwait follows in third place. The UAE is also the largest re-export market in the GCC region, reshipping about 60% of its auto components exports to onward destinations in the Middle East and Africa.

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

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The Last Word pean US and Euro are still contractors cult time. facing a diffi

spectively). nsate and -6.5% re iled to compe hard (-9.9% gment has fa se g n si e ou h Th The gments. e in ot her se ular, has for the declin ng, in partic si ou h ew n of n e fact that constructio 2%) due to th 5. (ll fa p household ar seen a sh limited, and ry ve l il st is it of auster ity. access to cred ng this time ri du w lo e up ry ce been mad confidence ve r-perfor man de ich is n h u w is g, th n housi Nor has n of existing io at ov n re e for by th ly 2%). has inevitab also down (rn in activity tu n w r do be al m The gener ct on the nu negative impa , in ce en H . or had a furt her ct ed in the se oy pl nued ti em n le co ction of peop ent in constru e construction m oy pl em , 2012 l, th (-3.1%). 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H y el al u cial rg n la an as ’s w EC ng and e global finan 2012). This presented FI ing in buildi , as well as th st rn ve tu in n is y, w th s ar do n re tr .O easu economic “On the con owth and jobs t auster ity m th re creates gr d subsequen stry is an Negative grow du is t. in is en n cr m io infrastr uctu ct rn ru ve st go n e co th es an ri by obal rope tego implemented s for major gl basis, the Eu nstruction ca ced by all co iding solution ilt en ov bu ri pr e pe . of th n ex e of io bl as ct cy w capa stru efficien tr ucture con est market able be it energy except infras was the larg challenges, n ency, sustain ci io fi ct ef ru e st rc n u ange.” t, reso unting for Residential co environmen to climate ch dustry, acco in on ti n ta io s ct ap ru ow ad st n re or However, sures sh in the US co infrastr uctu auster ity mea ’s total value. ry ds st bt ar GR w du de to in n d e ig e sovere clined at a CA 30.6% of th “As the tren ket value de because of th d ar g, lt of te m in n su al rs re ti ou n ve a am re de as t the resi period, no sign of ion outpu ew ct vi ru re st e n th co g l ak rin tota ts a hich m ing of -7.42% du cr isis, the EU hich represen conditions w w ic , 12 om 20 on in ec e on pay housing war ned unfavourabl to €1,172 billi seholds to re red to 2011”, ou pa h m S U s, co looking r re fo 5% gu ming fi cially those it difficult decline of 4. of these alar buyers, espe t e gh iv ding it li n ct e fi on pe th si so os ci In al debt. Pr Huillard. dder, are ational de n la d ty an er d op an pr pe e Euro t being aske potential to get onto th FIEC calls on ages wit hou deration the tg si or n m co re to EU cu in ke stry to difficult to se makers to ta ruction indu R of deposits. of the const fiscal d on ti an u l ib ra u tr corded a CAG to pay huge n ct co ru st on g n nstruction re di co as the ci w al de h ci ic en er h h m w w Com period, growth, ew vi re . ts e ts th cu g n dget ction marke most FIEC -13.82% duri reforms or bu l the constru umstances, al rc of ci t ts lt ou cu cu e g o n ffi in n be endi largest decl “In these di at there will vernment sp rations say th The fear of go “We must d businesses S. . U ge rd e ra la u th il u co in H en Member Fede ed es n ik ar h w x ,” ta 14 g in ross ty of re 20 and fort hcom Wit h a scarci ine of 2.6% ac recovery befo investment. a furt her decl t, the om ct fr en pe m in ex rn ra e ve st or re to theref s cuts by go 2013.” lu rp in ts su en EU ped to d e pm op an th projects the develo ncy rate dr the whole of s office vaca ’s statistics, y’ EC tr FI n u to co g n Accordi l in 2012. s show the its lowest leve s infrastr ucture s EU countr ie in the variou n u The co tr y’ Near full erall results: ket output is n following ov io ct ru struction mar st n n co co of in n io capacity in the UAE? cord a CAGR The reduct rved in forecast to re se riod. ob pe st en ca be re as A report by EC Harris predicts activity h over the fo l % ta 97 en 5. m n in er . Gov that UAE’s construction market has ed heavily all segments The US invest ng measures on ti returned to near full capacity, taking projects duri da li re u so con infrastr uct ts in d cu te c pa ti ci as ti dr into account the UAE’s estimated real d is an have led to the review an e and th t, er en ov m st st gross domestic product (GDP) growth, ve ve nue to in public in ti n co e to th it ave h thriving industry sectors such as od. these cuts h forecast peri public nonof leisure and tourism, ability to raise n io ct ru st con debt funding, investment in ildings and residential bu ularly ic rt major pipeline construction pa re u ct infrastr u

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projects.

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