Construction Machinery ME

ISSUE 19 MAY 2013

PUBLICATION LICENSED BY IMPZ

KIngDOm pOWER

Construction machinery Show Review

gAlADARI gAInS

Famous name prepares for growth

SO, thAt WAS bAUmA

What was in it for the region?

PAT OlNEY INTERVIEw

READY FOR SAUDI

What Volvo’s CEO has learned Plus: ACROss THE INDusTRY

* NEws * AMAZING INVENTIONs * Al-FAlAH IN FujAIRAH* AND MORE

Contents

50 IS S U E 1 9 M AY 2 0 1 3

02

Editorial Why my feet hate me after the Construction Machinery Show and Bauma.

06

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

14

NEws aNalysis The cost of labour continues to rise in the Gulf.

page 50 BAVARIA AND THE BOOM

Bauma lands back in Munich, with so much at stake, CMME finds an industry trying to talk up its prospects in 2013.

15

CoMMENt Proof that Doha is willing to think big.

16

wHEN Pat wENt to Ksa Volvo CE’s CEO Pat Olney talks to CMME about why he is excited about Saudi Arabia.

23

tHE CoNstrUCtioN MaCHiNEry sHow A look back at the big event in Jeddah last month.

34

Galadari CHaNGEs Khaled A Soliman, group CEO of Galadari Brothers, about how the Trucks and Heavy Equipment division has changed track to cope with a changing market place.

16 42

Raw power

34

38

tHE MoUNtaiN MEN Al-Falah takes on the mountains of Fujairah.

51

45 NEW RELEASE ROUND UP What’s hot in new machinery this month? Page 50 SHOW REVIEW: BAUMA 2013 Your guide to what was making news at this year’s global industry event. Page 55 THE MACHINES THAT CHANGED THE WORLD CMME looks at inventions that revolutionised the way we construct. Page 60 MARKET REVIEW: QATAR Is it finally time to start planning for the FIFA World Cup 2022 Page 64 THE LAST WORD Is the new 6x6 variant of the G-Class Mercedes worth the price?

Page

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 COntributinG eDitOrS Jonathon Savill

Showing up in April

F

irst the Construction Machinery Show and then Bauma. If my feet could talk they would’ve asked their lawyer to issue an injuction on me – and they would probably have won.

After a month that saw me travel three times to Saudi Arabia and then fly out to Munich, I was more than ready to spend some time back in the office when it came to putting this month’s issue to press. However, I wasn’t the only one who ran a hectic schedule as the entire industry seemed to be in a frenzied state for the month.

For instance the interview with Pat Olney, the CEO of Volvo Construction Equipment, was done across two flying visits. We intercepted him firstly on the road to Madinah after Air Arabia tried its best to torpedo it (throwing me off one flight to Jeddah which meant I was four hours late to interview him) Olney himself was on a whistle-stop tour around the region before Bauma, meeting local customers and dealers. Less than two weeks later, we met again minutes before he was leaving the Munich show.

I can only assume that he had yet another plane to catch.

All through April I kept bumping into a variety of people across a variety of continents. For instance, as I walked through the plazas of Munich I inadvertently bumped into some of the team from the Roots Group 24 hours after we had seen each other in Jeddah. I should also at this point pass on a special thank you to Nancy De Sy of Doosan who found my pen in Dubai and gave it back to me on their stand at Bauma! If it’s a small world after all, then the machinery industry must be a microdot.

There were a lot of people talking up the prospects of the industry at Bauma, working hard to make a molehill out of a mountain and defying depressing stock and economic news.

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 carolem.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 DatabaSe anD CirCulatiOn ManaGer RaJeeSH m rajeesh.m@cpimediagroup.com +971 4 440 9147 PrODuCtiOn ManaGer JameS p THaRian james.tharian@cpimediagroup.com +971 4 440 9146 DiGiTaL www.constructionmachineryme.com DiGital ServiCeS ManaGer TRiSTan TRoY maaGma Web DevelOPer JoeL aZcuna online@cpidubai.com

While CEO after CEO rolled out positives in the press conferences, it seemed incongruous with the actual state of play. At InterMat last year, they could boast about the Chinese boom and the emerging markets. A year down the line, and slower than hoped for growth in China, the US and Europe - the Middle East is a rare ray of light in the encroaching darkness.

A lot of companies will judge their success this year on how well they performed at the event. While the CEOs were out in force, I wouldn’t have been surprised if the CFOs were behind the scenes chewing on their fingernails waiting for news of on-stand sales.

A few people I talk to wondered if the event has become too big and too important. With so much effort expended in such a short amount of time, even I left the event feeling sorry for those having to ride the merry-go round that the show has created. For those who had a dissapointing week, you can only assume that the hard work for 2013 has only just begun.

+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 © 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 19 MAY 2013

PUBLICATION LICENSED BY IMPZ

KIngDOm pOWER

Stephen White, Group Editor, CMME

2

CONSTRUCTION

MIDDLE EAST

May 2013

Construction machinery Show Review

gAlADARI gAInS

Famous name prepares for growth

SO, thAt WAS bAUmA

What was in it for the region?

PAT OlNEY INTERVIEw

READY FOR SAUDI

What Volvo’s CEO has learned Plus: ACROss THE INDusTRY

* NEws * AMAZING INVENTIONs * Al-FAlAH IN FujAIRAH* AND MORE

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

News Round-Up

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

BACK TO BAVArIA Bauma returned to Munich last month bringing the entire industry with it to Germany. read CMME’s report on page 50.

Qatar announces largest ever budget

Q

atar has announced the largest budgetary estimates in its history for the current financial year, 2013 to 2014, it was reported last month.

A record $57.9 billion has been ear marked for public spending for the year, which is 18% higher than 2012’s budget of $49.02 billion, local media reports said.

The Qatari government has spoken out against fears that higher spending could cause a price rise, and that it would be vigilant about managing inflationary pressures through effective fiscal and monetary measures.

According to the budget, the bulk of spending would be on public projects, amounting to 40% of the total budget. Allocations totalled $20.5 billion compared to $17.05 billion over the last year.

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May 2013

The outlay for education has been upped 15% for this year, the budget revealed, with government sources pointing out that the country was moving towards a knowledge based economy.

“This is a key step ahead as the education sector now has a share of 3.8% in the country’s GDP,” the minister of economy and finance H E Yousuf Hussein Kamal said, Qatar News Agency reported. It is important to note that the estimates make a large portion of the allocations for the education sector on research and development, he added.

The healthcare sector has also been accorded priority in the budget, with spending up by 13% over the last fiscal year. The minister said the outlay would include spending on the Al Wakra Hospital, Sidra Hospital and building several specialised hospitals for women and children.

Zahid TracTor: caT’s new dc in Jebel ali can help Kingdom disTribuTion

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 500,000 square-foot state-ofthe-art facility was officially opened in the Jebel Ali Free Zone at the end of last month and has been built to assist the strengthening of Caterpillar’s aftermarket parts support network in the region.

“Caterpillar’s new Middle East Distribution Centre 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.”

“We are very pleased to be adding the Middle East Distribution Center to our industry-leading global parts network,” said Steve Larson, Vice President of Caterpillar Inc. 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 with an unmatched level of after-sales support.”

Company intelligenCe the Al HAbtoor Group will construct a theatre worth $15 million, expected to be delivered in January 2016, as part of MetropolitAn coMplex project, the company’s Ceo announced during a recent press conference. the theatre will be part of the metropolitan complex (Habtoor island) which also includes three hotels under the Starwood brand, owned by al Habtoor group. these are a Westin, A st.reGis And A W Hotel.

ArAbtec HoldinG, the arabian gulf’s largest publicly traded construction firm, has formed a joint venture with sAMsunG enGineerinG co to further its expansion in the oil and gas industry. ArAbtec-sAMsunG enGineerinG will be 60% owned by arabtec and 40% owned by Seoul-based Samsung engineering. new management will be appointed shortly, according to a statement by the two companies. arabtec has recently signed a 10-year agreement to lease the 59-floor office tower in abu Dhabi where arabtec Construction and arabtec-Samsung engineering will be based, the company’s chief executive officer Hasan ismaik said.

MMc corp bHd, the malaysian construction firm, has said that the Saudi government has terminated the rights of its joint venture with sAudi binlAdin Group to develop the $30 billion jAzAn econoMic city. the company said that be engaging consultants to advise on matters relating to the project termination and compensation, a Reuters report said. the sAudi ArAbiAn GenerAl investMent AutHority awarded the project to a joint venture between mmC and the Binladin group in november 2006. drAke & scull internAtionAl, the regional construction contractor, has signed a $49 million mep contract for a residential development in Qatar. Work on the project is due to immediately.

tenDeR upDateS

1

the tender boArd of tHe oMAni GovernMent has extended the deadline for the submission of bids for the key preliminary design consultancy contract for the omani nAtionAl rAilWAy project by two weeks, officials have announced. A notification faxed by a tender board official to prospective bidders now sets May 6, 2013 as the last date for the submission of offers, a report by the oman daily observer said.

2

the centrAl tenders coMMittee will no longer float tenders for civic works to contractors as the Qatari government has empowered the Ministry of MunicipAlity And urbAn plAnninG to set up its own tenders panel to invite bids for its projects.

Rapid build at dRagon MaRt as pouR hits 800 cubic MetRes peR day Construction on the expansion of Dubai’s Dragon Mart shopping mall is proceeding at a rapid pace, according to Nakheel.

Engineer Mohammed Rashed Bin Dhabeah, managing director of Development, Projects and Shared Services at the developer says that foundation work on the 177,000sqm DragonMart2 site is over 60% complete. He added that over 80% of the foundation of the attached hotel has also been done.

“We’re powering ahead with the development,” he explained.

“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.”

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 added, 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.

EquipmEnt and Education kEy to truck safEty in thE rEgion the commercial vehicles industry and truck operators need to take training and equipment seriously if it is going to tackle road safety, according to a roundtable gathered for last month’s automechanika dealer network. organised by epoc Messe Frankfurt, the automechanika dealer network is a biannual event intended to bring together the leaders of the automobile aftermarket sector, manufacturers, suppliers, dealers, service providers and other stakeholders. among those attending were representatives from leading automotive aftermarket majors with a presence in dubai, such as oWs auto, Mobis, global autoparts, al habtoor, genavco, al Furat general trading. “there is a need to build stronger awareness campaigns on many areas of truck safety for the roads,” said ioannis Vrantzoglou, managing director, schaeffler Middle east. “this should include educating truck drivers and operators on safe transport practices as well as better interaction between fleet operators and local

authorities on optimum safety measures.” hans van der spek, business manager at intertruck said that safety in commercial vehicles is an ongoing discussion and there is a need for further awareness in this area. “safety in trucks is particularly topical after the recent spate of terrible accidents around the region,” he said. “Future accidents can be prevented with the right measures in place and by ensuring the correct equipment is being used and serviced on a regular basis.”

May 2013

CONSTRUCTION

MIDDLE EAST

5

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Qatar asks construction firms for safety plans The Qatari Labour Ministry has asked all construction firms in the country to update the ministry with their safety plans and requirements every six months, so as to avoid hazards or penalties.

Volkswagen prepares Man Truck end-gaMe Volkswagen has made its longexpected move to gain full control of fellow German truck manufacturer MAN Truck and Buses.

Volkswagen, which is also a major shareholder of Scania Trucks, has been trying to bring its two heavy vehicle concerns over since the turn of the decade. It has been gradually ramping up its ownership of both and currently holds a controlling stake of 75.03% in MAN. Ahead of MAN Truck’s 6 June meeting, the car giant has made a cash offer to shareholders priced at 80.89 euros or $104.34 per share.

The offer is someway short of analyst evaluations which judge shares in the German truck maker to be valued close to 95 euros per share.

Bloomberg has reported that the shareholders that do not accept this cash offer “will receive a guaranteed annual dividend of 3.07 euros per share. VW and MAN will agree on final conditions after they receive full valuation reports from auditors.”

Volkswagen needs complete control over MAN Trucks to complete an integration into its global operation and enable it to better compete with Daimler and Volvo. By fusing MAN into with its commercial vehicles arm and Scania it would become the dominant force in the market.

It has already appointed MAN CEO Georg Pachta-Reyhofen to oversee group’s industrial business and last year appointed Scania’s boss to its board to help facilitate integration.

Despite performing strongly in the Middle East, MAN saw a fall in sales last year and describe a drop in its operating profit as “disproportionately large.”

Earlier this year Volkswagen

announced that it was in talks with the board of MAN to enable the deal.

The June meeting is expected to see approval from both companies.

In lieu of the formal offer, MAN shareholders will be entitled to dividend derived from the higher of two figures: the average share price over the past three months or a price based on an independent evaluation.

In other news from one of Scania’s strongest markets in the Middle East, Iraq, contractor Al-Fayha says that the c-suite management sent to Iraq by major international companies, lack the same expertise as executives sent to other Middle East market.

The precast giant employs 1400 people across the region, and Al Fayha said the country is dependent on the foreign labour sent by international oil and gas, construction and development companies, but that the firm’s recruitment is not of the same calibre as that sent to other Middle East markets.

Al Fayha deputy CEO, Salahuding H Al-Ibrahim, said: “We hoped these companies would send expertise that would benefit the situation and improve our capacities. There is a procedure to follow in projects and we do look to them to guide us through this but they do not do that.”

It’s a claim substantiated

by MacDonald and Co director, Ben Waddilove, who says that opportunities in other Gulf markets are more attractive: “That probably would be the case because there are other opportunities in the UAE, KSA and Qatar that senior management would want to go take.“

According to a report by Gulf Times, the move comes as the Qatari government looks to step up on-site safety as construction is set to boom across the country. As preparations for the 2022 FIFA World Cup set up, Qatar is set to step up the pace of construction in the country.

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“We are asking company heads to update us with a copy of their safety plans which include staff training courses to make sure workers are protecting themselves and their environments by using safe procedures, as well as job hazard analysis,

in full detail so that we can approve their practices for utmost safety,” said the manager of the Labour Inspection Department (LID) at the ministry, Khaled al-Ghanem.

“Company safety plans submitted to the ministry by contractors or consultants must also include job hazard analysis or risk assessment so workers know the risks they are taking in their jobs so they can be more cautious,” he added.

Earlier this month, Qatar announced the largest budgetary estimates in its history for the current financial year, 2013 to 2014.

A record $57.9 billion has been ear marked for public spending for the year, which is 18% higher than 2012’s budget of $49.02 billion, local media reports said.

SIGNING IN Visitors roll into the Construction Machinery Show held in Jeddah last month. You can read CMME’s full report on page 23.

September 2011 May 2013 2013 May

CONSTRUCTION CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST MIDDLE EAST

77

News Round-Up

tognum StepS up mtu teSting in indiA German engine specialist Tognum Group’s MTU India has opened a new engine test cell facility at its MTU India Service Centre in Tathawade in the state of Pune.

The test cell’s dynamometer system is capable of testing all MTU engines up to Series 4000 engines in the range from 300 to 4300kW, as per MTU test protocol, and for all applications.

In February 2010, MTU India opened its new head office for sales and service operations in Pune. The addition of the new engine test cell facility to the MTU India Service Centre brings a new phase in MTU India’s ability to meet its Indian customers’ needs in the region.

Satish Phadke, CEO of MTU India, stated at the opening ceremony: “With today’s inauguration of our new engine test cell facility, MTU

India will be able to expand on its commitment to customers on service and better meet customer expectations for witnessing full load 2/2 cycle test at the Service Centre in India. Hence, this is an important milestone for our customer service capabilities in the region.”

Tony Davis, VP for Network Management and Global Distribution at MTU, inaugurated the engine test cell facility by explaining: “Establishing the new test cell at MTU India Service Centre is in line with Tognum’s expansion plan in India. Since 2010, we have expanded our presence in the Indian market with continued investments in terms of facilities, tools and network. These investments will go a long way in meeting the expectations of our esteemed customers in India.”

DP WorlD comPletes massive DreDging oPeration in Jebel ali DP World has successfully completed the largest dredging programme at its flagship Jebel Ali Port in a decade, allowing the port to handle more big vessels at the same time by deepening the draught.

The dredging added to the expansion work currently underway, adding 1 million TEU of new capacity to Container Terminal 2 later this year and another 4 million TEU capacity Container Terminal 3 by 2014, once completed, will enable Jebel Ali Port to handle up to 10 of the next generation 18,000 TEU (twenty foot equivalent container units) mega vessels at the same time – the only port in the region able to do so.

In total, 477,000m3 of soil have been dredged from 2,900m of quay wall at the roll-on roll-off (roro) vehicle carrier terminal, the tanker terminal and three container berths.

The dredging deepened the draught of the roro and tanker berths from -10.5 to -11.5m while container berths 14, 16 and 17 were extended from -14m to -16m.

“As the trade gateway for the United Arab Emirates, Middle East and the wider region, the capabilities of Jebel Ali are always

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September May 2013 2011

reviewed to make sure they are in line with customers’ needs,” explained DP World’s chairman HE Sultan Ahmed Bin Sulayem. “As more of our customers add larger vessels to their fleets, we have responded by deepening the berths to increase our efficiency as a key link in one of the busiest supply chains in the world.”

Yasser Zaghloul, CEO, National Marine Dredging Company, Abu Dhabi, said that the project boosts the port infrastructure and facilities and “enhances trade flow into Dubai, the Middle East and the wider region.”

Mohammed Al Muallem, managing director, DP World, UAE Region, said that the dredging operation was instigated in response to customer demand.

“This project will enable Jebel Ali to meet their needs to handle more of the larger ships, providing the efficient and cost effective services they have come to rely on,” he said. “Today, Jebel Ali Port is handling each week an average of three ultra-large container ships (ULCS) with a capacity of 14,000 TEU and above and we believe that number will increase steadily in the coming years.”

KSA move to AppeASe ethiopiA over dAm criticiSm The Saudi Arabian government has made an official statement rebuffing recent remarks made by the Kingdom’s Deputy Defence Minister against the construction of Ethiopia’s Grand Renaissance Dam. Speaking at a session of the Arab Water Council in Cairo in February, Khalid Bin Sultan said that the Horn of Africa nation posed a national security threat to Sudan and Egypt by building the massive $4.8 billion hydro-powered dam along the Blue Nile, near the Sudanese border.

He added that the Ethiopia power plant project was ‘intended for political plotting, rather than for economic gain.”

The remarks caused the Ethiopian government

Addis Ababa also said that the hostile tone of the remarks could negatively affect existing diplomatic ties between Arabs and the other Nile basin countries.

government’s views.

The Kingdom’s Foreign Ministry echoed the Ambassador’s explanation, releasing a statement that said the Deputy Defence Minister’s comments “do not reflect the official stance of the Government of the Kingdom of Saudi Arabia.”

The Saudi Ambassador was quick to decry Sultan’s comments and insisted that they were not representative of the Saudi Arabian

The Ethiopian government was assured that the dam project would not affect historic relations between the two countries.

to react with anger and summon the Saudi Arabian Ambassador to Ethiopia for an official explanation.

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News Round-Up

System Construct wins Phase 1 warehousing contract at Kizad

UAE-based System Construct has beaten off its rivals to win the $27 million contract for the construction of phase 1 of pre-built warehousing (PBWH) at Kizad, the new industrial and logistics zone at Abu Dhabi’s Khalifa Port.

System Construct has expertise in building warehouses, residential and commercial buildings, malls, offices, factories, schools and has also been involved in infrastructure projects in the UAE. The company was also responsible for

the construction of Kizad’s existing show warehouse - the first of its kind in the Middle East.

Kizad expects the delivery of the first units to arrive in Q4 of 2013.

The PBWH project has been divided into three phases, with a total of 105 units, covering 118,965m2. The first phase, now underway, covers an area of 46,453m2.

“We have been encouraged, not just by the significant interest

shown in our pre-built warehouse project, but also by the uptake and commitments we have seen from both local and international companies,” said Charles Acworth, head of project development at Kizad.

Commenting on the key milestone at the start of construction of the PBWH phase 1 development he added: “The show warehouse has been an invaluable marketing tool and System Construct delivered a quality product on time and to budget. The

announcement of the main contract award is therefore very welcome and is the first of many milestones.”

Ziad Shebli, operations manager of System Construct LLC, said the company was “delighted” to have been chosen as main contractor for the first phase of Kizad’s pre-built warehousing project.

“We are confident that our experience and proven track record in other key construction projects was our differentiator in being awarded this contract.”

RTA plAns TRuck sTops foR heAvy TRucks The Facilities & Installations Department of the Roads and Transport Authority (RTA), recently met local businessmen to explore managing a number of plots of land allocated as lay-bys for heavy trucks in the emirate of Dubai on a Build, Operate & Transfer (BOT) basis.

Abdullah Al Madani, CEO of RTA Corporate Technical Support Services Sector, said: “During the initial phase of the project, the RTA is focusing on the construction of two lay-bys for trucks on highways in a passageway mainly designated for trucks at all times.

Abdulla Yousef Al Ali, director of Facilities & Installations, RTA Corporate Technical Support Services Sector, made a visual presentation about the project and said: “Among the services to be provided at these lay-bys are outlets selling snacks, petrol stations, parking lots, oil and battery change and truck washing These laybys will be similar to European truck stops, offering drivers a safe parking environment where they can rest and sleep. It is also expected to improve road safety by curbing accidents triggered by driver fatigue or sudden tyre bursts that requires a lay-by.

“The first plot is located alongside the Dubai Industrial City on the Dubai Bypass Road. It will contribute to easing traffic congestions caused by heavy trucks parked in a disorderly manner within the right-of-way of Dubai roads.

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September May 2013 2011

Sharjah to spend $952mn on development A budget of $952.8 million has been set aside by the sharjah Directorate of Town planning and survey to compensate those affected by development projects in the emirate from 2007 to 2012, said salem Al suwaidi, director of financial and Administrative Affairs and public Relations last month.

During a meeting of the sharjah Advisory council, Al suwaidi pointed out that the amount included compensation for the demolition of old non-traditional buildings. he added that historic buildings were identified and would be

turned into museums as part of the Directorate’s plans to revitalise 13 areas of downtown sharjah. furthermore, there are plans to develop the commercial and industrial zones of Al Dhaid, while the old centre of Maliha will have a friday market and a market for camels and livestock.

Al suwaidi added that borders had been drawn and work was now underway to restore the archaeological area of Al Madam.

The east coast city of khor fakkan would see the development of an ‘urban renewal

project’, he said.

The limits of the heritage zone in khalidiya have been increased and work is underway to revive the old market and neighbourhood of the heritage buildings, he told the council.

In the historic village of Dibba Al hisn, work is underway to help restore the ancient fort and develop the old marketplace, while the corniche area has been developed into a modern business zone. kalba has seen the redevelopment of the fort, commercial area, waterfront and the corniche.

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June 11 - 13, 2013 Dubai 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

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

Oman Arabian Engineering Services LLC Tel.: + 968 245 78 000 www.saudbahwangroup.com Qatar Qatar International Automobiles Tel.: + 974 4603 288 www.fahedgroup.com

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News Analysis

Cost of jobs rise

Concern in Oman as the rising cost of recruitment threatens contractor profitability

T

he Oman Society of Contractors (OSC) says the sector is one of the largest employers in the country, with more than 55,000 local staff. With the continuing surge in the building activity, the OSC estimates that the number of Omanis employed by contractors will rise to around 65,000 in 2013.

As part of its programme to expand and diversify the country’s economic base, the government has committed billions into transport and utilities projects, including a $15bn national rail network and a series of new power stations to feed Oman’s growing industrial and private sector demand, alongside several social services developments, such as hospitals, schools and housing.

While this rise is a sign of the growing momentum within the sector, it is also a reflection of the impact of a new government policy that aims to increase local employment.

In early February, the government announced it would be capping the number of foreign workers at 33% of the Omani population but did not set a deadline to meet that target.

Currently it is estimated there are some 1.3 million expatriate workers in Oman, representing just under 40% of the population.

In terms of recruitment, the Middle East is almost a unique case. More than half the population is expatriate, but there are unemployed locals. There is a strong movement to employ more locals but there is still a throwaway culture for low level manual jobs.

The dependence on expatriate labour has skewed the countries’ demographics; for instance in the UAE, Emirati nationals account for about 20% of the population. This has created an imbalanced population composition in favour of males; in 1997, there were 1,755,000 males and 869,000 females in Dubai.

At the moment much of the rest of the world is still in depression, especially in Europe. But if there is a glut of new projects then the supply of labour could be affected. There will probably never be a shortage of unskilled labour as such, but if demand rises then lazy recruiters will simply pay more and thus affect the market cost of this commodity.

The problem starts right from finding the manpower. The GCC enefits because it has the developing world right on its doorstep.

Traditionally the region’s cities have been built by Indians, Pakistanis, Bangladeshis and Philippinos.

But now recruiters are casting the net further afield in an attempt to fulfill their quotas.

Once you have found your staff you have to transport them to site. This can be a problem and contractors have sometimes been forced to

charter planes to get labourers into the country.

There is also the outside regulatory influence on labour. GCC countries will soon pass a law regulating foreign labour in the Gulf countries, including returning marginal and unskilled foreign workers to their home countries, a Gulf official said.

“There are responsible parties at the council looking for a mechanism to verify whether or not the expat worker does have the skill for which or was brought to the Gulf,” the official told local media. “The council will also attempt to eliminate workers who claim skills they do not possess.”

Fawzi Al Majdali, secretary general of the programme for restructuring labour in Kuwait, said new regulations will minimise unused labour, with no clear contracts with employers.

“Kuwait has recently said that it will cut down and send away 100,000 expat workers who are considered marginal, in order to replace them with local labour.”

This is a problem. A recent academic report points out: “less encouraging are the kinds of jobs created.

“In general, Middle Eastern countries have not made the dynamic shifts that occurred, for instance, in Ireland in the 1990s, where the sectors with the highest productivity gains also produced relatively more jobs, leading to rapid growth, declining long-term unemployment, and rising standards of living. By contrast, job growth from construction and public works is mainly cyclical and does not provide sustainable and high-quality jobs over the longer term.

People working in such jobs are not likely to be more successful in joining the conventional labor market than before, risking a return to the pool of unemployed after the job ends.”

With Qatar destined to become a major player in the recruitment market, the GCC could soon have to weigh up whether it can afford to keep building quickly at the detriment of the people who they are building for.

“IT IS A rEFlECTIOn OF ThE IMPACT OF A nEW GOvErnMEnT POlICy ThAT AIMS TO InCrEASE lOCAl EMPlOyMEnT.”

September 2011 May 2013

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Expert Opinion

Proof Doha is thinking big Ahead of this month’s Project Qatar, Ashok Dutta of Hill International outlines what the Doha Metro means for the development of Qatar as things get hectic

W

ith a population of just above 1 million and despite being the Middle East’s second-smallest country, Qatar has never stopped short of thinking ‘big’ and setting ambitious targets for itself. A prime driver has been the monetisation of its mammoth natural gas reserves – the third-largest in the world after Iran and Russia – at the offshore North Field that has fuelled both unparalled hydrocarbon and non-hydrocarbon developments. In late 2011, Doha achieved two major targets: emerging as the world’s leading liquefied natural gas (LNG) producer; and also winning the bid to host the FIFA World Cup in 2022.

Qatar earned the distinction of being the first Middle Eastern nation that will play host to such a sporting event. And since winning the bid, it has rolled out a series of infrastructure development projects.

Hill International will also be a part of that mega process, with the company being awarded in August 2012 a contract by the Qatar Railways Company (Qrail) to provide project management services in connection with construction of the Green Line, one of four lines of the new Doha Metro transit system. The four-year contract has an estimated value to Hill of about US$59 million.

The Green Line connects the heart of Doha with the Qatar Convention Center and the Education City and includes 27 kms of subway tunnel, six underground stations, 6 kms of elevated guideway and two elevated stations. The Doha venture will be built using the tunnel boring machine (TBM), rather than the cut-and-cover method. Tunnels will be bored using a tunnel-boring machine (TBM), which is a device used to excavate tunnels with a circular cross section through various

“TUNNELS WILL BE BORED USING A TUNNEL-BORING

MACHINE (TBM), WHICH IS A DEVICE USED TO ExCAVATE TUNNELS WITH A CIRCULAR CROSS SECTION THROUGH VARIOUS TyPES OF SOIL STRATA.”

types of soil strata. TBMs have the advantages of limiting disturbance to the surrounding ground, which makes them suitable to use in heavily urbanized areas, like Doha, Also, TBM operation has minimal traffic disruption and less impact on the environment in terms of dust and noise emissions and visual impact, Tamimi says. However, it takes at least one year to procure and mobilise a TBM. For long tunnels with tight construction schedule such as the Doha Metro, it is cost effective to use tunnel boring machines as TBMs are much more efficient and results in a shorter project, Tamimi says, adding structures along the way will be monitored as the TBM’s advance to ensure settlement caused by works is negligible. The action will be watched closely when work starts on the site soon, but according to him one challenge the project will face is the strict time schedule and the logistics required for such a massive venture.

Outside of Qatar, but within the GCC, the expectation is for the oilrich nations to embark on massive rail projects aimed at moving both industrial and consumer goods and people, besides heavy equipment to support its oil and gas projects.

Knowing the local players, stakeholders and rules and regulations is crucial for the successful completion in any construction project.

The new projects will not be without their fair share of challenges, however. Spending on construction is highly influenced by exogenous factors, primarily oil prices. Also, political stability in the areas surrounding the GCC countries has an impact on investor perception and generally has a negative impact on the construction industry.

Volatility of construction material prices constitutes another risk factor.

From a construction management standpoint, the main challenge is the magnitude of most construction projects in the region and the timeline allowed to complete such facilities.

But, infrastructure growth is still required to keep pace with a fastgrowing population in the Gulf.

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Heavy Hitters

What Saudi taught me

Volvo Construction Equipment’s CEO Pat Olney reveals what he has learned from his trip to KSA, talks about his outlook for the year and the truth behind Volvo’s role in the FAMCO/Al-Rehab deal

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I

Pat Olney, CEO, Volvo CE, visited Saudi civil contractor Al-Rosan on site in Thuwal, 100km north of Jeddah.

Volvo graders and compact equipment are being used to help construct one of four stations for the Haramain High Speed Rail project.

owe this man an interview, I owe this one some comments and I owe you an image. Then I need to catch a ride,” directs Volvo Construction Equipment’s CEO. We’re at Bauma, he’s already late in leaving the event. If he’s flustered, he’s not showing it.

The interview with CMME that Pat Olney refers to is the culmination of a chase across two continents.

The last time we met was on the outskirts of Thuwal, a quiet village 100km north of Jeddah which will be transformed once the massive new station for King Abdullah Economic City along the Haramain High Speed Rail project is completed.

Having tracked Olney and a team of Volvo CE’s key executives for the region down to this remote location, we manage a very brief meeting and a hurried photo shoot.

Credit to Olney, who is there to meet a clearly impressed customer (it’s not often you bump into one of the most important men in the industry in the desert), he spares time to break for his photograph and patiently allows to be moved into position. He flew into Jeddah that morning as part of his whistle stop tour of the Gulf countries. If he’s tired or annoyed, he’s not showing it.

Barely 15 minutes afterwards, CMME leaves him to learn more about how the Volvo equipment is helping the project progess: there is a plane to catch and Jeddah Airport is an hour and a half away, and in one hour the check-in desk will close. Somehow we make it in time – just.

Even with the world’s biggest event in the background, the Volvo stand at Bauma provides a second and more relaxed chance to get his impressions of his visit and his view on Saudi Arabia, as well as the state of the global industry.

“That Saudi trip was crazy,” he recalls. “It’s been like that for some time but this year I’ve tried to prioritise some new markets that are not normally on my rotation. So we went to Nigeria, Ghana and the Democratic Republic of Congo. I’m going to Indonesia and Myanmar later this year. That’s on top of China and Brazil, and all the traditional places I would go to. I think it’s a sign of where we are seeing opportunities.”

Olney is a self-confessed admirer of the sailors that participated in last year’s Volvo Ocean Race.

He wants his company to match their “absolute dedication” with customers. While it may come across as rhetoric for press releases, it is indicative of his approach that he is willing to rake up air miles to drive the point home. Although he says that Volvo CE can’t solely rely on him to drive sales.

“I can’t be enough places to be the deal closer but it can give the local guys a boost, particularly if it is a large customer or someone who is new to Volvo and wants to feel some comfort with us.

There are many people in management who can do that, but if I can help then I will.”

He continues: “Ultimately I am the guy who is prioritising business and resource strategies. If

“WE TEND TO THINK OF NON-REGULATED

MARKETS AS NOT BEING THE PLACE FOR PREMIUM PRODUCTS. THAT’S NOT TRUE AT ALL.”

I’m doing that with talking to a customer, then that’s a pretty dangerous situation.”

He says he has to use any information he gleans carefully: “I’m seeing customers that we have decided to see for various reasons. (For instance) I can’t extrapolate from meeting Al-Rosan that is what everyone wants or is facing in Saudi or whatever. But it does give me some energy and excitement for the market.

“When I have a discussion later on with our sales region, I can visualise a little bit of what they’re talking about: some of the opportunities, some of the challenges. You know the old adage of a picture is worth a thousand words? Well a visit like that is worth 10,000.”

His trip to Saudi has helped him to realise that there is a demand for more sophisticated equipment in the market.

“We tend to think of non-regulated markets as not being necessarily the place for premium products,” he says. “That’s not true at all. My trip to Saudi as well as Africa, [has shown me that] there are some very demanding environments and jobsites. You know, guys moving hundred metre high sand dunes in 45o temperatures. If that’s not a demanding application, I don’t know what is. There are certain applications that just need a basic product but there are many that are demanding and where our brand and support, products and features are well-suited. And that was a real reminder for me. I saw some pretty extreme applications.”

He’s lucky he didn’t visit during the summer to see some very extreme conditions: “I can only imagine how hot that will be! To hear from customers that your machine is the one machine that could do that job, I love to hear that.”

With Volvo CE technology viewed in the upper echelons of what is available in the market, you wonder whether it might be frustrating that much of its technology won’t the transfer to the region.

“I don’t agree with that idea at all,” he says.

“It’s like being frustrated in the car business if the customer wants velour seats instead of leather. It’s not up to the manufacturer to say why don’t you want leather? It’s up to the customer to decide.

So no I’m not frustrated. I am more frustrated if we can’t flex the product and fine tune it enough because anything more we put in than the customer wants is wasteful for everybody. In the worst case scenario you could have a piece of software they never use that goes on the fritz. Then it becomes an aggravation.”

Olney uses the example of the L105 manufactured and designed in China, a wheel loader that he says has less technology than the equivalent model in Sweden but is designed to suit the market.

“We have to make sure in these markets that you get the right level of technology and technology is how we differentiate ourselves. You expect your Toyota Corolla to work just as well as your Lexus. Of course you don’t get all the nicest features, but the analogy is that’s how we see Volvo branded products working in these markets.”

Providing servicing and aftersales is the major battleground for OEMs in the developing markets of the region. With dealer Al-Rehab now owned

by Famco, the UAE-based dealer that recently

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achieved the notoriously hard to achieve silver certification, Volvo is arguably now better placed to take on its entrenched rivals in Saudi.

“As much as we focus on what to do with the products in emerging markets, it is equally important that dealers are making the infrastructure investments; as in people.”

He continues: “Any time a dealer chooses to acquire another dealer, that’s a business decision that they make and Volvo isn’t party to. On the other hand if Al-Futtaim came to us and said, ‘would you object?’ and we said yes for x, y and z reasons then they would give it pause. So you can say that we are often involved in advance to give moral support, a blessing, or whatever you want to call it. In this case, we clearly supported it because we have had a good experience with Al-Futtaim and they have good plans to make investments and go that next step in Saudi.”

Taking on CaTerpillar in Saudi Taking on the established number ones and twos in Saudi Arabia is the next step for Volvo. To do that Olney has identified that it needs to establish coverage in the market.

“We have the product range that puts us in the top tier globally and customers I’ve spoken to say they favourably stand out in that difficult environment.

The issue, or rather opportunity, is coverage. If you’re not a dealer that’s within four hours of a job, how can you help? That’s the exciting thing about Famco and their plans.”

While he is not prepared to quote figures for growth he says his recent travels have confirmed his confidence for Volvo in Saudi Arabia: “I feel quite optimistic after my visit. It’s clear the government is committed to infrastructure and development. You can see the need there.”

Beyond the Gulf, Olney sums up the difficulty of trying to tackle the disparate African markets.

“I got asked at the press conference (held at Bauma the day before the CMME interview) what my view on Africa is. I said I have 55 views on Africa,” he remarks. “Many of them can be grouped and we can deal with them in clusters. One is if it is a project market. There you need flexibility and mobility.

Setting up five branches is not going to pay.”

He adds: “Then you have mature African markets where you have a fairly stable volume and a stable political and economic situation. You can have a more conventional set-up model. Then you have other commodity driven markets and you have to look how you follow those.“ One model that has worked in mature markets has been the rent to rent model, which has proven a success for Volvo, particularly in the US. Olney sees that replicating the model in the mature markets of the Middle East is not a straight-forward process.

“IT’S ClEAr THE GOVErnMEnT IS COMMITEd TO InFrASTrUCTUrE And dEVElOpMEnT. YOU CAn SEE THE nEEd THErE.” May 2013

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Heavy Hitters

“Daily rental is for the small guy that needs a machine today. The kind of rental we see in these project markets is a three or six month rental. But yes that kind of rental can be a path to the customer.

We’ve been talking about how different the market is really. You’ve still got to watch the operating costs and monitor the use. The modelling is not too different, it’s just how you put it to work.”

Amidst the chest thumping at Bauma, Olney managed to present one of the more honest assessments of the global market. It typifies his management philosophy.

“That’s our approach in Volvo. There are some things I can’t tell you and I’ll tell you I can’t tell you.

And the things I can tell you like our market outlook, well that hasn’t changed since Q4.”

Olney pauses and then outlines his expectations on the year ahead for the major markets.

“China will be flat with a weaker first half,” he begins. “The US, [there will be] sideways movement a little bit up and little bit down. Europe, well, that’s downwards minus 5% to 15%.”

Olney realises that this may be contrary to the message heard elsewhere in Messe Munich.

“It belies what’s going on at the show when you see the enthusiasm. Hopefully we’re at the cautious end of the spectrum but it’s clear that things are slowing from the south to north.”

Turning his attention to further afield he sees more trouble in the Far East as the Chinese continues to splutter and commodity demand falls.

“Asia will be down 10% probably and that’s on the back of a mining slowdown in India and Indonesia.

Brazil GDP is down and we see zero to 10% positive there.”

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The 10% swing demonstrates the difficulty of making any solid predictions. “normally we try to use 5% spreads, but there is a lot of uncertainty in the market. What if China decides to do more stimulus or not? It’s a policy driven market, right? The new leadership has come in and they said they want to move to a consumerdriven economy. The US has debt ceiling issues. You have a congress that is a majority of one party and the president from the other. And in the EU 27, you pick up the newspaper and we seem to stumble from one crisis to another. That doesn’t help. There is so much uncertainty that the 10% swings are the best level of accuracy we can do.

“The truth is the days of the nice up and down cycles are gone. The world dynamics have changed.

Instead of trying to get 1-2% levels of accuracy we’re trying to build flexibility in the business.”

“THE TrUTH IS THE DAYS OF THE nICE UP AnD

DOWn CYClES ArE GOnE. THE WOrlD DYnAMICS HAVE CHAnGED.”

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Machinery Show

STARS of The ShoW Read on to find out what machines stole the show at this year’s Construction Machinery Show in Jeddah

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Machinery Show

Best of the Best This year’s Construction Machinery Show 2013 came to Jeddah last month and showcased a sector that is helping to build an exciting future for Saudi Arabia

L

eading local and regional players in the heavy machinery industry in KSA and across the GCC were out in force in the coastal city of Jeddah as the largest construction and equipment exhibition in the region when the Construction Machinery Show opened its doors last month.

The event was inaugurated by His Excellency Hani Abu Ras, mayor of Jeddah in the presence of the show’s Asian and European delegates. Following a brief ribbon cutting ceremony, Dr Abu Ras – who recently picked up an award for the development of the year at the Big Project Awards – declared the show open.

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This year’s event featured major industry players in the KSA construction equipment industry including Saudi Diesel Equipment, Roots Group Arabia, Kanoo Machinery, Abahsain Co, Al Qahtani, and many more.

“This year’s event saw the display of over 70 brands showing the latest heavy construction and machinery equipment,” said Raz Islam organiser of the event. “It comes to support a booming construction market in the Kingdom which is eager to learn more ways to apply new technologies and efficient construction methods that would further enhance the market and increase its construction capabilities.”

Raz further pointed out: “This is the largest exhibition of its kind and the exhibitors should be proud and therefore invest in stand designs and branding. If you represent a major brand, you should follow the guideline set by the manufacturer. It is great to see the event looking professional and getting better every year. The gathering of all these players is an ideal opportunity for all to benefit from their presence and their experience.”

The Construction Machinery Show’s success was also an indication of the constant growth of the construction market in the Kingdom of Saudi Arabia

which is the largest construction market in the Middle East.

The Kingdom is home to an array of multibillion dollar projects with a diverse set of industries from hospitals and medical facilities to universities, cities and industrial and infrastructure projects, all due to complete construction projects within the coming decade. The show featured companies showcasing a host of construction and machinery products, services and solutions ranging from diggers to crawlers, from cranes to trucks, and lighting firms to generator businesses.

The massive range on show demonstrated why the Saudi market for heavy equipment is the dominant force in the Middle East. Neighbouring markets such as: the UAE, which has plateaued since collapsing following the global financial crisis; Qatar which is still awaiting its own FIFA World Cup 2022 and Vision 2030 boom; are all considered potentially exciting areas.

However, if you want to see the biggest range and volume, the Kingdom is the place to be. Subsequently the show was a mixture of established dealers in the market such as Saudi Diesel and Kanoo, as well as some of the biggest names in the industry tussling for

a share of contractor and operator attention like Sany, JCB, TATA, Case (via Roots Group) and LiuGong, and many others.

The Saudi Diesel stand was arguably the most impressive among a packed show, showcasing and reflected managing director and CMME April’s Heavy Hitter Raad Abduljawad’s philosophy that the Kingdom needs a forum to bring together as many players in the industry as possible.

“We need a construction machinery show in the country that is successful,” he said. “We need to support it and we will invite our competition to do so.”

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Machinery show machinery Show

in and among an impressive collection of equipment on the stand was the doosan da40 articulated dump truck. the product of doosan’s acquisition of norweigian specialist moxy, it packs a scania engine and offers a 10% increase in engine power compared to the previous mt41 model by moxy. the model also comes with a 22% increase in gross torque to 2373 nm at 1,300 rpm. the huge doosan machine was first revealed 18 months ago but saudi diesel feels that it is now ready to become a popular fixture on sites and operations in the country. saudi diesel has increasingly moved into offering its products and services on short and long term lease agreements to customers, including diesel engines and generators, forklifts, excavators, compressors and maintenance services. the company claims that this has had a “tremendous impact” on the bottom-line for its clients and has earned enough support for sdec to necessitate transferring this line of business to a new business operation called PeaX. Providing power and lighting throughout the event, PeaX also currently owns and operates a fleet of` shuttle buses and other transport operations, besides continuing its lease business for saudi diesel’s engines, generators and ancillary machinery.

Upwardly mobile market at the other side of the show floor al-areedh chose to present chinese giant sany’s mighty range of mobile cranes. the al-khobar-based dealer has been operating for 35 years and has amassed a fleet of over 1,000 mechanical, hydraulic and telescopic cranes. the company says its investment in heavy equipment has been necessary to keep up with the massive development projects currently being implemented in the kingdom. al-areedh’s client base includes major forces in the saudi market such as saudi aramco, sabic (one of the

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principal partners at the adjacent sbie event) and the saudi national guard. as well as a series of power plants where mobiles tend to excel, projects where al-areedh has been active include the king saud university, industrial residential cities in Jizan while in Jeddah it has been a major supplier to the king abdul aziz airport. its relationship with chinese giant sany has helped its expansion to accelerate in recent years and it has bought a staggering 400 machines over the last half decade. in 2011 alone it bought 132 machines for rental. valued at 400 million saudi riyals ($100 million), the company told cmme that this could be the biggest single order for mobile cranes ever (for those taking note, the order included 30 100t cranes). the mobile crane has been one of the success stories of the saudi market over the last decade. contractors have dipped into the rental channel to lease the machines, preferring them for their flexibility and the ability to cater for a wide variety of choice for industrial and residential projects. they’ve also proved popular with power and oil and gas plant operators as the kingdom continues to invest in the metals and oil and gas sectors. mobile crane demand has been so great that alareedh says out of its current fleet of 800 cranes it has zero availability. small wonder in 2012 it spent a further $32 million to buy yet more inventory from sany. sany group’s general manager of mobile cranes in the middle east explained the manufacturer’s succeess.

“Within two years sany sold 403 machines,” explained sany mobile cranes middle east general

The Construction Machinery Show attracted a wide variety of attendees, including small contractors as well as representatives from Saudi bin Laden Group and Samsung Engineering.

“Within tWo years sany sold 403 machines. sany is only 23 years and is noW ranking at number five in the World.”

Country Bahrain Kuwait KSA UAE Sudan

Dealer Ahmet Mansoor Al A’Ali ICTCO Arabian Auto Agency United Al Saqer Group The Central Trading Co.

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Country Oman Qatar Egypt Turkey Lebanon

Dealer International Equipment & Contracting Co LLC Qatar Welding & Fabrication Supplies W.L.L Omatra Çukurova Ithalat ve Ihracat A.Ş Medevco

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Machinery Show

Making the grade. LiuGong’s grader was among a selection of equipment at the Construction Machinery that is ideal for the Kingdom’s investment in infrastructure and road building.

manager tang Wenbin. “the cooperation between Saudi arabia and china improves every year. Sany is only 23 years and is now ranking at number five in the world. our mobile crane factory is 4km2 and we have 20 factories across the world.”

First established in 1968, rolaco is one of the oldest companies based in Jeddah. capitalising on the positioning of the city on one of the world’s busiest and most important shipping routes, rolaco has diversified its core business of wholesale construction supply into areas as diverse as shipping, contracting, transport and housing and commercial construction. on show was much of its equally diverse product portfolio including a selection of ud trucks (its fleet ranges from 7-55t), an array of nissan Forklifts and cranes from Kato. also present from its concrete machinery section was a Sermac concrete pump. “everybody knows rolaco,” joked al Shareef Moufaq al harithy, ceo of al harithy company for exhibition (ace) while visiting the stand. also showing concrete pumps at the event was Kanoo Machinery. the 47m hJc5330thB pump truck represents Shantui’s latest foray away from bulldozers. Mounted on a Mercedes actros truck and with an overall reach of 46.8 on its 5-stage boom arm, the model shows further progress from its roots with chutian, combining the latter’s 20-year experience in concrete machinery with Shantui’s mature Qc and parts and service network.

“We need Machinery ShoW in the country.

We need to Support and We Will invite our coMpetition to do So.”

While the show boasted one of the oldest companies in Jeddah with al-areedh, in al-Jomaih it had one of the earliest trading pioneers in Saudi arabia. established in 1936, the company has kept pace with commercial and industrial boom experienced in the Kingdom and has a prominent position in a huge array of industries, such as automobile, tyres, lubricants, soft drinks, agriculture machinery, foodstuffs and of course heavy machinery. taking over an entire corner of the construction Machinery Show, the company displayed its dizzying range of equipment including forklifts from tcM and a wide selection of kit from the uK’s JcB. the British company owns its own power and engine technology and the equipment on display brought home its desert capabilities. the ecomax version of the 3cX version of its signature backhoe line was a particular highlight of the event. el didi Group’s t Sharqawi trading chose to split its area to highlight its diverse set of brands. recent additions to its lonking inventory including the cdM885e wheel loader were attention grabbers as were its forklifts and grader. the company is also a representative for Zoomliom’s mobiles many of which were out boom-extended. arguably however it was the massive Soilmec Sr90, the enormous drilling rig with a 15m self-erecting mast that was the star of the show.

With hyundai and tata showcasing their commercial vehicles; the roots Group showing not just caSe but also its power solutions while highlighting its cranes from Wolffkran; ieveco and its trucks and Weichai engines; hertz and its rental range; and finally Gulf installments and its Shariah-compliant financing options this was the best construction Machinery Show yet.

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Special Interview

KSA STILL ON TOP

Li Yi, senior regional manager, LiuGong, gives his impressions of the Construction Machinery and why the Saudi market remains the strongest in the GCC.

S

audi Arabia is one of the most important overseas markets for LiuGong, and takes a big share of our international sales. Right from when LiuGong first entered into the market seven years ago, it has done its best to support its partners and customers. We currently have more than 1,000 units working in Saudi.

Considering the stable and durable economy, and the high speed of construction development, it is undoubtedly the most important market in the Middle East. We’re expecting that we will see the fastest growth of sales in Saudi, which will take the biggest share of our sales in Middle East.

The most popular machines in Saudi are our excavators with the most popular individual model being the CLG922D, which comes equipped with a Cummins engine and the most reliable of hydraulic components. LiuGong has achieved success through many improvements to the product itself; on technical support; on customer support; and on spare parts support since coming to Saudi.

For LiuGong and its partner Al Qahtani Vehicle and Equipment, the most important markets are Riyadh, Dammam and Jeddah. LiuGong has built a very strong reputation and market share in Riyadh and Dammam. Al Qahtani Vehicle and Equipment is also developing an all-in-one branch which can offer a full solution to our customers.

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The most important sectors in Saudi right now are oil, civil construction and infrastructure. The next area we will enter is mining, which is becoming more and more important to our success in Saudi.

At the Construction Machinery Show, we successfully showcased the LiuGong brand as a full line product and solution provider; not only with machines but also with our aftersales and customeroriented strategy, which supports our customer to get their utmost success by the most convenient and reliable way.

This year’s Construction Machinery Show also helped us a lot on sales and marketing in the Jeddah area, which is one of the most important markets in Saudi. We had many ‘hot enquiries’ during the show, and right after this exhibition more than 50 machines were successfully contracted, including excavators, wheel loaders, cranes, skid steer loaders and forklifts.

We expect more and more business and undoubtedly much more competition in the market.

With our seven years’ experiences, and as one of the market leaders, we’ll keep our commitment and full support to our customers – offering the most competitive solutions. From the outcome of the first quarter of 2013, our forecast suggests that there will be another successful year for LiuGong customers, LiuGgong partners and LiuGong itself.

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

Reaching new heights in the region

Heavy Hitters

Changing TraCks Construction Machinery ME talks to Khaled A Soliman, group CEO of Galadari Brothers, about how the Trucks and Heavy Equipment division has changed track to cope with a changing market place

Galadari Brothers and its subsidiary have formed a strategic alliance with JCB and Abu Dhabi Commercial Bank (ADCB) to offer new finance products and services under the JCB Finance brand.

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i

f there ever was a company that was synonymous with the history of the UAE, it would be the Galadari Group. Established in 1960, the group began operations as ARE Galadari & Brothers, working out of rented premises in Dubai.

By 1967, the company had flourished to the extent that the Galadari Engineering Group was set up with three divisions focusing on Engineering, Trucks and Automobiles. As the seven emirates formed in 1971, the Galadari Group continued to grow, adding Air-Conditioning and Refrigeration to its business, while rubber moulding and tyre operations were incorporated into its business through the Arab Emirates Bandag company.

Mirroring the rapid growth of the UAE, the Group then founded its Trucks and Heavy Equipment division in 1976. The division rapidly became a flagship company for the Galadari Group, becoming the exclusive distributors for a number of international

brands of heavy earthmoving, construction and materials handling equipment, including Komatsu, Sumotomo Cranes, Terex-Demag and Esco.

However, as the financial crisis hit the construction industry in the UAE, business for the division took a hit, forcing the company’s leaders to rethink the way they were conducting their operations.

“In 2008, our performance was unmatched in the region,” says Khaled A Soliman, group chief executive officer at Galadari Group, and the former general manager of Galadari Trucks and Heavy Equipment.

“We were growing phenomenally, our growth in a good year, was exceeding 100% year – on – year.

(However), in 2009, after the global financial crisis, everybody was affected and markets in the region, did shrink significantly.”

“The markets in the UAE did shrink to unprecedented levels and I think the drop in the market exceeded 75% in terms of market size.

So it was a market condition where most of the

construction projects were button-holed or cancelled and that took us into a restructuring phase, which we managed to do much faster than any other in the industry,” he asserts. it is only now that this approach has begun to pay dividends for the company, having bottomed out in 2010 and then begun the long, slow return to growth in the intervening years, says soliman. this has seen the rate of growth creep up and emboldened the company to start tying up new deals with manufacturers, as it plots its return to the top of the market. “(this year) has exceeded our expectations, we’ve had between 40% to 50% growth,” he explains.

“We have a flexible structure, but What

We noticed is that challenges pre-crisis are different to challenges post-crisis.”

“We recently signed a new deal with rotair, who are air compressor manufacturers, diesel and air compressors. We didn’t have this in our product range and we strongly believe that they have an excellent machine and we’re planning on existing, in the uae, in the top three market places.”

What led to this confidence was a commitment to changing the way the company did business, he remarks.

While rivals were cutting staff and refocusing their objectives, soliman says that galadari decided to take a pro-active approach to its changing market environment, and consequently reaped the benefits.

“We have a flexible structure, but what we noticed is that challenges pre-crisis are different to challenges post-crisis. people getting the job done pre-crisis had different skill sets. post-crisis, they now require different skills. even currencies have changed. We have the Yen, we have dollar-based projects, euro-based projects. currencies were acting

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heavy hitters

were acting totally different pre-crisis to post-crisis.

(We changed) the way we do business, the credit facilities who used to grant our customers, postcrisis are different to pre-crisis. so the way we do business needed to be restructured. “even the size of the machinery needed to be changed, because the size of the projects were changing. pre-crisis, we used to bring in the biggest machinery in the world, the biggest bulldozers, the biggest excavators…only a few units were sold locally, but dubai used to have the major part of these machines,” soliman recollects. “i’m talking huge machines, the kind you don’t see, that are operating in remote areas, where nobody sees them. But they are as big as buildings. so dubai used to use these kinds of machines. But now, post-crisis, we’re talking of different sizes, so that’s a restructuring. you restructure everything in the business (if you want to survive during the crisis),” he adds. furthermore, what held the company in good stead during these troubling times were its strong relationships, forged over 30 years of operation in the country. although the business went through a transition period, soliman asserts that its relationships with its customers and suppliers remained ‘as solid as a rock’. as business continues on its upswing path, the group ceo is optimistic about the recently announced megaprojects in dubai. While certain experts regard the recently announced projects, such as Mohammed Bin rashid city and Bluewaters, as ‘too much, too soon’, soliman prefers to regard them as opportunities for further progress. “(These projects) are good news. We need these projects. They move the sentiment in the market and it gives a strong sentiment to everybody and everybody is impressed with that. it’s a quick recovery, and that’s why i’m telling you, our growth rate over the past year was phenomenal and we’re expecting the same in 2013,” he explains. so confident is the division about the prospects for the market, it recently tied up a ‘strategic alliance’ with its supplier, JcB, and the abu dhabi commercial Bank, to offer finance products and services, under the JcB finance brand.

The finance offerings will be available to JcB buyers and owners throughout the emirates, and will be

supported by galadari Trucks and heavy equipment.

The move to offer finance is part of the division’s commitment to offering a ‘complete package’ to its customers, and meeting current market demand. looking further afield, the company is eyeing further growth and expansion, but isn’t actively pursuing them, soliman says. at present, the focus is on the local market, and when the opportunity arises, the company will take advantage of it, he asserts. “as i said earlier, we’ve structured the company to be flexible. so expansion and contracting is an efficiency that we have, which is based on the market situation. our response timing is very short, and if a market is growing, then we’re fast to respond. at the same time, if a market is shrinking, then we’re fast to react to that as well,” soliman explains.

“That is a key success factor for our operation, to any operation. if you don’t plan for these things, then you can’t succeed,” he says, bringing the interview to a close.

“ThaT is a key success facTor for our

operaTion. if you don’T plan for These Things, Then you can’T succeed.”

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Site Visit

a cut above CMME joins Al-Falah on the high road out of Fujairah as it carves a route from the port to the heart of the UAE.

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art quarrying operation, part road building, contractor Al-Falah is currently taking on the formidable task of constructing a truck route through the mountains that lie to the west of the UAE city of Fujairah.

The road is being built to ease congestion into Fujairah’s port. The city itself provides an open water access point to the Indian Ocean for the oil and gas industry and is thriving as the UAE looks to form a gateway from its Gulf-locked metropolises of Abu Dhabi and Dubai to global trade. In the event of another Gulf war or an Iranian blocking of the Strait of Hormuz, Fujairah would also be its lifeline to the rest of the world.

While the Gulf coast cities have the advantage of space to build their infrastructure and roads and can afford expansive six-lane highways, the more frugal Fujairah is penned in by mountains on almost all sides. Both existing routes westward travel through passes that can cope with truck traffic but there simply isn’t the room to push more traffic through the suburbs. As freight traffic continues to grow, the port’s location at the remote end of the city presents city planners with a challenge. How can they allow it to grow without leaving its residents living in smoggy gridlock? The new high road out of town is – hopefully – the answer.

To reach one of the peaks, CMME is taken on a wadi bash through the flat basin that forms a channel at the inland stretch of the road. Dotted along the sides are ramshackled homes, half rock and half wood and metal detritus. Greeting us are a few people and many goats.

Those that live here still cling onto their goatherding traditions but that is about to change. Their houses are each daubed with a large red cross that marks them out for demolition. The modern world that brought them the aerials and satellite dishes that sit precariously on their roofs is bringing the city on the other side with it. Progress waits for no man. Or goat.

Somewhere on the other side of the limestone ridges that rise above us is another flat plain and access to the port. As we ride deeper into the valley we’re told that we should make sure that everything

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Site Visit

and everyone is belted down. Ahead the track below will soon be scaling the mountain sides above us.

We’re in for a rocky ride.

Taming The mounTain Al-Falah’s work on the project can be described as cut and fill on the grandest of scales. The route selected takes in the lower peaks of a natural pass but with the entrances to the valley close to sea level it is using a fleet of excavators armed with breakers and buckets to scrape and remove from the mountain’s sides. ADTs take the material and clear the way; AlFalah is taking down a mountain bit by bit.

Early morning blasts are being used to not only create a route but to also provide much of the material that will be used in the construction of the road. This process is overseen by the local authority; and one of the Al-Falah team in our SUV suggests that Fujairah has been highly supportive to the operation within the emirate.

He explains: “Our CEO was supposed to be with us this afternoon but he’s had to go to an award ceremony. The mayor of Fujairah is going to present him with the contractor of the year award.”

With the amount of activity underway the road up the mountain is surprisingly smoothed out although bumpy.

As we ride upwards, our host from Al-Falah rumbles on the investment in equipment it has taken to get this far.

“In the last year, we have taken $30 million worth of equipment from (local Caterpillar dealer) AlBahar,” he comments. “We expect to be able to use them again on our next jobs.”

The operation is not solely dependent on Cat kit, however, with Atlas Copco machines deployed on piling duty and Hitachi excavators also mounted on the shelves of the operation. Our driver points at a

“OUT OF THE 3 mIllIOn TOnnES OF ROCk WE HAVE TO mOVE 1.2 mIllIOn IS BEIng USED AS FIll. THE REmAInIng 800,000 WIll HAVE TO BE USED TO pROTECT THE EDgE.” Cat 3DR bulldozer moving a wedge of rock, clearing a path as we climb upwards.

“That’s actually an older one,” he says at it rolls by. “Out of the 3 million tonnes of rock we have to move 1.2 million is being used as fill. The remaining 800,000 will have to be used to protect the edge (from landslides).”

After several minutes working our way up a track we reach a ridge overlooking the valley behind us and ahead several other ridges and shelves where the excavation work is being done in earnest. After a short drive down the other side, and back up another vertical rise we stop and take in a view of the machines in action.

In the distance between two hills, the edge of Fujairah’s port can be seen. With the path of the road far below us, it is almost unimaginable that within two years that trucks will be hauling themselves through here.

For the time being, the seven 39.5t 740B articulated trucks that are being loaded by the 336D excavators will be almost exclusively negotiating the pass. Once fully loaded the trucks shift the rock to one end of the route for sorting. 130,000 journeys will be require to fully clear the route. With summer approaching, they face months of tireless work and arduous tasks.

Having invested in new kit, Al-Falah is banking on running the equipment for long hours. While Caterpillar recommends 250 hours engine oil

Once fully loaded the trucks shift the rock to one end of the route for sorting. 130,000 journeys will be require to fully clear the route. With summer approaching, they face months of tireless work and arduous tasks.

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concrete@saudidiesel.com.sa

Site Visit

Al-Falah began as a company in the Lebanon in the mid1990s but quickly began looking further afield for business.

The company is now considered THE mountain road builder in Fujairah.

schedules, the contractor is keeping to 150 hours. It is a significant drop but one following the self-confessed machinery obsessed CEO’s own philosophy on looking after his investment. According to his supplier AlBahar, he knows” these machines better than us”.

Meeting him sadly requires descending from our vantage point and journeying back down to the valley and the site office situated close to the finish line on the road to Dubai. Sitting with him you get the sense he would prefer to be back on the mountain rather than sitting with a journalist.

Having seen the view from up top, it is completely understandable. Looking up at chart on the wall he gives an overview of the operation. Blast by blast.

“In March we did 14 blasts,” he begins. “We have a programme for drilling and blasting. We need to keep the production moving. We need to finish.”

At a rate of almost a blast every two days it is a rate that would be unusual even at the busiest of quarries. Having seen the size of the task at hand – and the extent of how much rock is still needed to be excavator – it is understandable why he is keeping such a tight schedule even if the completion date is not due for another 12 months. In total 10,000m3 will need to be shifted. (“This is why we need help from our suppliers for our machines,” he jokes.)

Al-Falah was begun as company in the Lebanon in the mid-1990s but quickly began looking further afield for business. It is just ten years since Al-Falah

began operation as a road contractor in the UAE, but he is proud of how the company is now perceived as the mountain road builder in Fujairah.

A recently completed project in Masafi typifies why it is now being trusted with major projects in the northern emirates. Building a service road in a remote location, Al-Falah entered into the contract not knowing the type of material was going to be excavated. One kilometre in and facing 150m high rock faces of possibly hard rock the task appeared daunting. In a year it was completed. “Just last month,” he says proudly.

Despite the shift abroad he sees similarities between his home country and his company’s new home.

“It is the same environment, like these mountains.

Although is not the same rock as here you have gravel and limestone, but it is the same kind of job.”

He adds that his current fleet of 40 machines will need to be expanded to more than 50 as work accelerated. He doesn’t like holding onto for too long in case they lose their value. We keeps them in good condition and then gets rid of them. For a company that specialises in the very toughest jobs, it is almost unbelievable that his strict service routines means he has never had an engine of transmission failure.

“I kept some 749As from 2007 for three years, and then sold them on. After 10,000 hours they were gone. I don’t like to maintain workshops. I like the 740Bs... I need ten more!”

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Product Focus

Raw power EVERYTHING YOU NEED TO KNOW. page 51

WoAh-MA

What machines grabbed the most attention at this year’s Bauma 2013?

page 47

INveNTIoNs ThAT ChANged The WoRld

page 55

sTeAMINg AheAd

how rollers helped to pave the way ahead in road building.

CMMe lists ten construction related inventions that have helped shaped the world as we know it.

page 58

extended range

Concrete boom pumps are able to deliver large quantities of concrete with pinpoint accuracy over large distances.

page 60 QATAR

Is Qatar ready to start getting ready for the FIFA World Cup 2022?

page 44 goINg To WAsTe

JCB reveals the new 4CX Wastemaster on the show floor in Munich.

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New Products

Genavco unveils new GeneraTion isuzu pick-up Why get it?

ChoiCe of power options still reigns over great wall

T

he latest version of one of the most popular workhorses in the world will soon be seen on the streets and construction sites of the UAE after dealer Genavco and Isuzu unveiled the new D-Max pick-up in Dubai.

Targeted at both, individual and commercial usage, this new model drives forward the engineering evolution of the highly successful D-MAX predecessors. The new D-MAX, available in 4x4 and 4x2 variants, is fully equipped to take on load and get the job done, whenever required. It features a choice of power options, such as 2.5L, and 3L diesel engines, with turbo and inter-cool turbo variants for an effortless surge of strength. Depending on the purpose and driver-preference, the D-Max is offered in both manual and automatic gear selection, along with an array of colours to choose from.

“The new Isuzu D-MAX is an affirmation to Genavco and Isuzu’s commitment to its customers in the industrial sector and in line with both Genavco and Isuzu’s policy in providing integrated solutions to serve these customers and meet their needs in terms of the required specifications and after sales services to boost their confidence and secure their business.

It makes no compromise, be it in performance or comfort, making it a great asset not only for the company but also for personal driving pleasure,” said Isam Abu Nabah, president of Genavco.

The double cabin D-MAX will unveile, with models displayed in four showrooms across Dubai, Sharjah, Abu Dhabi and Al Ain, for two weeks in April.

Invited customers will have the privilege to win a trip to one of Isuzu worldwide factories once they step in any of the showrooms to take a closer look at the new vehicle.

To add to the convenience, the Isuzu D-MAX is priced at a reasonable starting sum of AED 58,000, “an attractive price bracket, taking into

consideration its performance, comfort and fuelefficiency benefits”, claims the company.

Genavco said the Isuzu division witnessed tnessed 20% increase in sales for the year 2012 compared to 2011.

“This is due to the various activities which are executed by members of Genavco’s marketing and sales team including “Isuzu Roadshow”, an event that takes place several times a year and has proved to be a great success since its launch in 2000,” said the company.

SPeCiFiCAtiONS: • Safety: Six airbas, ABS, TC, ESC, hill ascent/descent • engine: 3.0-litre turbodiesel four-cylinder, 130kW/363Nm • transmission: Five-speed auto, 4x4 • Dimensions: 5.3m (L), 1.86m (W), 1.8m (H) • Weight: 2950kg • thirst: 8.1L/100km (diesel), 214g/km CO2

A reAl jAW DrOPPer FrOm AtlAS COPCO Why get it?

25 years in development Unrivalled attaChment seleCtion

SPeCiFiCAtiONS: • Operating weight: 7.2t • max shear force: 562t • excavator size, stick mounted (lbs): 66,139 - 110,231 • Operating pressure (psi):5,076 • max oil flow range (gpm): 58 - 92

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Atlas Copco launched a new jaw variant that turns the CC 3300 Combi Cutter into a mobile shear at Bauma 2013.

“Our aim is to be a leading manufacturer and solution provider for the demolition market. To round off our offerings in the silent demolition tools segment, we are introducing a mobile shear jaw for our CC 3300 Combi Cutter”, explains Wolfgang Hohn, Product Line Manager Silent Demolition Tools.

With the new Mobile Shear (MS) jaw, Atlas Copco addresses the global

demolition and recycling industry as well as scrap yards.

“We are aiming at applications such as primary cutting of steel structures, cutting and sizing profiles, beams, frames and rebar”, adds Hohn.

The CC 3300 follows the design of the entire product line of Atlas Copco hydraulic combi cutters. The system with the two movable jaws and the two lifting cylinders has stood the test: it offers a constantly high crushing force throughout the entire closing process.

And the combination of a single- and double-blade

jaw arm provides maximum stability even under extreme loads.

The new Mobile Shear jaws (MS version) is an addition to the universal jaws (U version), steel cutting jaws (S version, for secondary reduction) and box shape jaws (B version) which are all available for the CC 3300.

A central main pin supports the cutter jaws in a stable manner. This concept also reduces the time needed to change the cutter jaws by up to 75 % compared to separately supported jaws.

CouPLing uP From doosan Why get them?

Lower fueL consumption eco-pLus emission package Doosan has announced the launch of a new range of ISO 23727 type quick coupler systems for the company’s new generation Doosan DL200-3 to DL420-3 Stage IIIB compliant wheel loaders. For use with the new quick couplers, Doosan has also launched a new range of pallet fork and bucket attachments.

The introduction of the new quick coupler wheel loader attachments is the latest expansion of the new Doosan Heavy Attachment range for the Europe, Middle East and Africa (EMEA) region.

“Offering a one-stop-shop approach for attachments and increased versatility for Doosan wheel loaders and excavators, the Doosan Heavy Attachment range has been designed to match key machine parameters and kinematics to ensure optimum performance, visibility, stability and safe operation at all times. All of the attachments are

designed, manufactured, tested and approved in accordance with current international standards,” says the company.

The new Doosan wheel loader quick couplers increase safety by enabling the operator to easily and quickly change attachments without leaving their cab. Visual locking indicators, protected cylinders and ISO/DIS 13031.2 compliance provide a further guarantee of safety. The independent auxiliary circuit on the quick couplers also allows full use of third or fourth functions for hydraulic attachments.

The quick couplers offer a robust construction with high-strength steel for extended lifetime in the toughest conditions. The open frame design lowers the weight of the couplers and ensures maximum visibility for the operator, with compact dimensions that minimise machine capacity and breakout force losses. Buckets are matched to the tipping loads of the wheel loaders for maximum stability and safe operation of the machines.

The design of the attachments is based on kinematics simulations which prevent collisions or kinematic lock-out and ensure the movement of the attachments is what is expected and is always completely under operator control. sPeCiFiCations: • Pallet forks with load capacities from 5 to 9t • general purpose buckets from 2 to 4.2m³ • heavy duty buckets from 2 to 4.2m³ • Light material buckets from 3 to 6.5m³

Why get it? improved performance operator comfort Liebherr’s latest demolition excavator, the 72t r 946 tracked excavator powered by a Liebherr 6-cylinder diesel engine that complies with current stage iiib/tier 4 interim emission limits and develops 200 kW (272 hp) at 1,800 rpm. the new machine is based on the r 946 machine introduced in early 2012 and therefore possesses all the advantages of the standard version, including increased performance potential, greater convenience for the driver and simplified maintenance.

Liebherr attaches special importance to the integrated excavator-

system technology that is in all of its latest tracked excavators to ensure fast, smooth operating movements. to supply the necessary hydraulic flow volume, a dual-circuit Positive Control hydraulic system is used. Compared with others, this system avoids energy wastage by reducing, and in some cases eliminating pressure losses. sPeCiFiCations: • Weight: 72t • Power: 200kW at 1,800rpm • boom length: 4.3m • dipper: 3.3m • max height: 13m

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New Products

Not a waste from JCB why get It? Built to spec Great visiBility

JCB unveiled the brand new 4CX Wastemaster backhoe loader at Bauma 2013 – adding a machine to its well-established range for the waste and recycling industry which delivers unprecedented levels of efficiency, versatility and cost savings.

Developed in line with extensive customer evaluation and fitted with a package of purposebuilt features, the flexible and productive backhoe loader is transformed into a tailor-made model for arduous waste environments. With its ability to power an extensive range of specialist attachments, the JCB 4CXWM model – JCB’s first dedicated backhoe loader for the industry – will excel in the non-stop working environment typically found at Household

Waste Recycling Centres, also known as Civic Amenity Sites.

Globally, the backhoe loader is already one of JCB’s biggest selling machines into waste, recycling and demolition applications, with large volume sales in Asia and South America and a strong presence in specific European markets. The JCB 4CXWM offers unrivalled versatility at a price which is less than the wheeled excavator typically seen on site. Its ability to perform a variety of roles also eliminates the need for other machines such as forklift or pallet trucks –further increasing cost savings.

The specialist new 4CXWM model incorporates additional length rear stabilisers and a front frame incorporating hydraulic legs. This combination raises the entire machine well clear of the ground, offering exceptional views into a bin when compacting material with either a grapple or compaction wheel attachment.However, additional attachments ensure that the JCB 4CXWM is highly effective for more than just compaction. sPeCIfICatIoNs: • max engine power: 81kW • max dig depth: 6.14 • max Dump height: 2.6m • Load over height: 3.18m

New reLeases from LIugoNg why get them? lower fuel consumption eco-plus emission packaGe LiuGong released its new 945E excavator and 375B skid steer at Bauma and exhibited rollers,motor graders, wheel loaders,forklifts and skid steer loaders.

The company wanted to demonstrate its strength as a full line manufacturer showing 28 machines and introducing two machines new to the European market.

LiuGong’s big new model 945E features a 2.2 cubic metre bucket capacity and 298 kW Cummins engine, the trackmounted 945E is built for high-volume, high production mining and construction applications. LiuGong Intelligent Power Control

System provides superior, more accurate matching and control over engine speed and main pump flow for more efficient power delivery, fast and smooth response and lower fuel consumption. LiuGong displayed seven excavators at Bauma – including the 904, 906 and 915 D Series machines and the 922, 925, 930 and 945 E Series models, operating weights from 4000 kg to 45,000 kg and a variety of bucket capacities up to 2.2 m3. LiuGong 375B skid steer has high visibility. This new 865 kg capacity radial lift forklift features an entirely

new structural steel cab that delivers a wider panoramic view – for increased productivity and safety.The view is pretty striking from the outside, too, with its unique curved shape. It features two-speed travel, double-lever pilot control and a spacious lownoise, low-vibration cab, fully ROPS/FOPS certified.

The show was LiuGong’s largest presence at Bauma ever – more than double in scope from three years ago. Notably this year, LiuGong displayed its machines in a shared space with its subsidiary Dressta side-by-side in a nearly 3,000qm booth.

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11 fIrst for VögeLe IN muNICh why get It? lower fuel consumption eco-plus emission packaGe Vögele used Bauma to launch 11 machines including its brand new new “dash 3” pavers: the super 1900-3 and 2100-3. a completely new category of pavers – the “dash 3” generation – heralds the next stage in road construction. these innovative, eco-friendly and economical asphalt pavers are based on cost-efficient cuttingedge technology. the machine concept of the “dash 3” generation focuses entirely on “lower consumption – lower emissions – lower costs”. the “ecoPlus” low-emissions package combines a number of individual measures distinctly reducing the fuel consumption and noise of “dash 3” pavers: when the paver is stationary, e.g. while waiting, all hydraulic pumps for “traction”, “conveyors and augers” as well as “compacting systems” are automatically disengaged after about one minute. fuel consumption is reduced

considerably by this new function. reducing drag also makes it significantly easier to start the paver at low outside temperatures. the tamper is driven by a variable displacement pump which always delivers exactly the amount of oil needed for the current tamper speed.

No more and no less – that saves fuel. the speed of the variable-speed fan automatically adjusts in line with engine load and ambient temperature, as well as the temperature of the oil and cooling water. the fan is driven via a viscous coupling in accordance with temperature and engine load. In contrast to a hydraulic drive, this new type of fan drive stands out through its considerably greater energy efficiency. It is also very much quieter. a bypass circuit allows the hydraulic oil to reach its optimum operating temperature very quickly. this in turn permits rapid, fuel-saving operation of the paver.

THE INDUSTRY EVENT

THAT HAS THE WHOLE REGION TALKING RECOGNISING INDUSTRY EXCELLENCE

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Show Review

Buy and earn in Munich Middle East buyers were out in force in Bauma, defying an otherwise depressed market at this year’s Bauma

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W

hat you see here seems crazy when you think about the situation outside the show,” says one rep surrounded by a massive and heaving stand. Quite.

As the global economy continues to splutter onwards and downwards, Bauma provided a picture of would could be. A world where every ageing, creaking excavator could be replaced with a gleaming new model; stronger and greener with more optional extras than ever.

Standing like a multi-coloured and mobile cranetowered city out of the Oz-like countryside surrounding Munich, this year’s show was full of wondrous new equipment and monstrous rock haulers.

Without doubt this year’s Bauma was dominated by the Liebherr stand. Guarding its gates were giant machines including its 400t rock truck (which was at the last event), its enormous mining shovel and a 300t hybrid piling rig which is able to recycle energy from its hammer blows. Elsewhere Volvo Trucks claimed it was taken a massive leap forward with the new FMX, Caterpillar unveiled its new 336E hybrid excavator and Komatsu presented a new dozer and an excavator built around what it called a “revolutionary concept of intelligent Machine Control (iMC), which can change the future of the construction business”.

While the spectacle was awe-inspiring, a closer inspection of the panorama revealed fewer tower cranes on show and a larger emphasis on flexible machines and a slant on infrastructure. The shift to rental has left its mark too. And this was an event where a lot of the business conducted on the stands was between dealer and OEM. During the Caterpilllar press conference CEO Doug Oberhelman revealed that around a third of Caterpillar assets in the field: “are now in rent to rent, and I can see that moving up 10 or 20% more in the next couple of years. We really have an opportunity to push this further.

Contractors like [rental] because it removes a piece of risk from their business.”

The European market continues to be blighted by the global economic crisis, placing a greater emphasis on Bauma to deliver some payback on

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what has been a tough start to the year. Revealing declines of 23% in the US and 11% in Europe Alexandre Saubot the COO of Haulotte looked for the silver lining in the Munich skies by remarking there “was nothing to worry about”.

“We have a lot of expectations with Bauma and the second quarter,” Saubot said, before adding: “The crisis is not over. People are still cautious.”

Given the battering of the previous few years it was no surprise that many companies at the show said that order levels from buyers had become piecemeal.

Many said that they were now used to bit by bit sales rather than large fleet orders.

Despite sluggish spending, activity on many stands was frantic. The show presents a considerable challenge on the sales teams on the stands to sell and speak to as many people as possible.

“On Tuesday and Wednesday, I couldn’t have more than 20 minute chats. It’s three serious meetings every hour for six and seven hours,” said David Semple, Manitowoc’s regional manager, his voice sounding hoarse. “It’s a mixture of the pleasure and excitement of being able to meet them on a nice booth with great products but it frustrates me that we are rushed for everything!”

Dubai-based hire company Johnson Arabia purchased a 42m long boom RT770E rough terrain crane at the show, Semple revealed (“if I could pick one machine for the Middle East it would be that one”).

One of the region’s veterans it is difficult for Semple to meet new GCC faces at Bauma but he says the show provides a transit point to meet new African companies.

“At these kind of events, you have 20 minutes to meet a guy find his problem, note it down and then you have to follow it up. Keeping their enthusiasm is a challenge for the week after. You need to keep the energy and the drive.”

According to Messe Munich more than 530,000 visitors entered the show. To put that in context Bauma hosts more people in seven days than Big5 in 15 years. Although the vast majority of them are German with them taking up a 70% of the total. The remaining 160,000 of visitors come from across the globe. The Middle East contingent was also out in force with companies such as Doosan (CMME bumped into Raad Abduljawad of Saudi Diesel on the stand), Volvo, Caterpillar, Terex, Putzmiester all highlighting the importance of being able to bring their customers (both dealers and major contractors) to the event.

However the show remains a predominantly European-centric event and with much of the new equipment on display only suitable for high regulation countries it is difficult for the Middle East and African visitor to spot what is suitable for them on display. For example, Caterpillar’s massive stand was designed to aid the US giant’s local dealer Zeppelin foremost and cater for international customers second. Take out the HRC-only equipment, only a handful of the 70 products on display will find their way to the region.

Judging Bauma from a Middle East perspective is tricky then. On the one hand you have new launches (albeit mostly incremental changes) and the buzz of being in the Disneyland for equipment (one Russian company even turned its crane into a ride carrying passengers superman-style 30m in the air); but on the other hand it can be a frustrating and tiring experience to find suitable kit.

Near the end of CMME’s visit one person asked whether Bauma had become “too big and too important?” If the buzz fails to turn into sales, then from this region’s point of view the answer may be a yes.

And in closing….

Bauma has marked a turnaround in the international construction machinery industry, ushering in the hoped-for change in sentiment. And this was despite the ban on air travel which impacted on the first few days of the fair.

“The mood in the industry shows that in Europe the bottom of the cycle is now behind us.

Confidence has returned. Of course at the start of the fair the exhibitors felt the lack of many customers from Asia and

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America – but in the second half of bauma, this improved considerably. Messe München´s crisis management in the days impacted by volcanic ash was outstanding.” This is how Ralf Wezel, secretary-general of CECE, the Committee for European Construction Equipment, summed up this year´s bauma.

In doing so, he confirmed the expectations of the sector as outlined by Dr Christof Kemmann, Chairman of the VDMA Construction Equipment and Building Materials Machinery

Industry Association, at the Main Press Conference for bauma 2010 on the first day of the fair.

Although the ban on air travel in Europe prevented visitors and in the end around 50 exhibitors from overseas from coming to the fair, the mood at the venue among the 3,256 registered exhibitors from 53 countries was good by the close of the fair.

Already by the mid-way point of the fair a number of exhibitors were reporting more sales than they had expected. “The good

old times are coming back: the figures for sales taken at the fair far exceed our expectations.

We reckon we will be able to match the volume we took at the record bauma in 2007.

This is a clear signal that at Zeppelin-Cat, too, business is moving forward again after the difficult year of 2009,” confirmed Michael Heidemann, managing director of Zeppelin and CEO of Zeppelin Baumaschinen GmbH, Germany. Michikazu Okada, VP of Hitachi Sumitomo Heavy Industries Construction Crane

Co. Ltd. Japan: “We had a lot of new business opportunities some of which already resulted in unexpected conclusions of sale.”

The representative survey of exhibitors conducted by TNS Infratest shows that bauma 2010, as the leading world fair, is marking a change in mood following a year of crisis in 2009, and that this change is being felt in many international markets, with few exceptions. Almost half the exhibitors are expecting the economic situation to improve.

Amazing Inventions

Ten AmAzing ConsTruCTion invenTions ThAT ChAnged The World CMME lists ten construction related inventions that have helped shaped the world as we know it

CeMenT MIxeR Cement was invented in ancient Greece, the word cement means ‘secure’ in Greek. Motorised cement mixers have been around almost as long as motor vehicles. early cement mixers had trays, heated on simmering coals. A mixture was set to dry in this and then asphalt was poured onto it. In the rudimentary stages, the cement was mixed manually. Then mixing drums were invented at the very start of the twentieth century. originally they were fixed in one place but one enterprising person decided to mount them on wheels and the mixers we know were born.

Stephen Stepanian filed a patent application for the first truck mixer in 1916. Trucks weigh 9,070 to 13,600kg, and can carry roughly 18,100 kg of concrete although many varying sizes of mixer truck are currently in use. The most common truck capacity is 6.1m3. Rear discharge trucks require both a driver and a chute man to guide the truck and chute.

RolleR A road roller (sometimes called a roller-compactor) is a compactor engineering vehicle to compact soil, gravel, concrete, or asphalt in road construction. The first road rollers were horse-drawn.

Obviously the more weight the roller carries the better it is and so rollers became steam powered late in the nineteenth century. Single-cylinder steam rollers were generally used for base compaction and ran with high engine revs in a low gear to promote bounce and vibration from the crankshaft through to the rolls in much the same way as a vibrating roller. Rollers can be as large as 20t and cost more than US$150,000. A landfill unit may weigh 54t.

BACkhoe loAdeR John Bamford’s JCB Company has been making the ubiquitous yellow tractors since he invented the concept in 1953. essentially a tractor with a front loaded bucket and a rear mounted back hoe the JCB’s are so widely used around the world that they are actually referred to as JCB’s in the same way as

vacuum cleaners are called hoovers. JCB employs around 10,000 people on four continents and sells product in 150 countries through 2,000 dealer depot locations. They have 18 factories – including India, where they have been manufacturing since 1979. JCB produces over 300 types.

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Truck-MounTed concreTe BooM PuMP until the early 20th century, concrete was mixed on the job site and transported from the cement mixer to the formwork, either in wheelbarrows or in buckets lifted by cranes. This required a lot of time and labour. In 1927, the German engineers Max Giese and Fritz Hull came upon the idea of pumping concrete through pipes. They pumped concrete to a height of 38 meters (125 ft) and a distance of 120 meters (130 yd). Shortly after, a concrete pump was patented in Holland in 1932 by Jacob cornelius kweimn (Jacobus cornelius kooijman). concrete boom pumps are able to deliver large quantities of concrete with pinpoint accuracy over large distances. They are used on jobs where large quantities of concrete are needed. In May 2008 Putzmeister reached a world record in vertical concrete pumping (606m by specially designed concrete pumps type BSA 14000 SHP-d to built the Burj khalifa). In 2008, Putzmeister broke its own record by pumping concrete to a height of more than 700 m at Burj khalifa.

An even larger concrete pump was built and sent to Japan’s post-quake relief effort. The current world record was set on 7 August 2009 during the construction of the Parbati Hydroelectric Project, near the village of Suind, Himachal Pradesh, India, when the concrete mix was pumped through a vertical height of 715m using a Schwing-Stetter concrete pump.

MInInG TruckS Technically these could sort of be covered in other sections but they are so brilliant that we felt they deserved a section of their own if only to publish a photo of one.

Basically the genre started with Euclid trucks: The Euclid Crane and Hoist Co, owned by George A. Armington and his 5 sons, was a large, respected and profitable operation, when they introduced the Euclid Automatic Rotary Scraper in 1924 – soon followed by the Euclid Wheeler (wheeled) scraper.

These earthmoving products were conceived by George’s eldest son, Arthur, who envisioned a good future in designing earthmoving equipment,

and steered the company into the earthmoving field. The two models of scrapers were successful, and a third model, the Euclid Contractors Special, designed to cope with hard ground, was even more successful.

Euclid was sold to Hitachi after General Motors was forced to sell it.

Now it makes larger mining trucks in the 140-450t range with a weight of 100 tons load. Just read that again.

100 tons is the equivalent of three fully loaded 60 foot arctic trucks.

In the meantime General Motors produced the Terex range of trucks, also enjoying a huge reputation in the mine field, or try field of mining for that to read more comfortably.

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

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excAvATorS Excavators are bigger JCB’s without back hoes.

They come in various sizes, some small enough to work in gardens.

Caterpillar’s smallest mini-excavator weighs 2,060 pounds (930 kg) and has 13 hp motor.

Their largest model is the largest excavator available (a record previously held by the Orenstein & KoppelRH400) the CAT 6090, it weighs in excess of 979,990kg, has 4500hp and has a

bucket size of around 52.0 m³. They are a direct descendant of the steam shovel, invented

by William Otis, who received a patent for his design in 1839.m.

Perhaps the most famous application of steam shovels is the digging of the Panama Canal. 102 shovels worked in that decade-long dig The first machines were known as ‘partialswing’, since the dipper arm could not rotate through 360 degrees.

Amazing Inventions

Tipper Truck The dump truck is thought to have been first conceived in the farms of late 19th century Western Europe. As early as 1905, the first motorised dump vehicles were developed. The first motorised dump trucks in the United States were developed by small equipment companies such as Galion Buggy Co. and Lauth-Juergens among many others around 1910. These companies flourished during World War I due to massive wartime demand. Companies like Galion Buggy Co. continued to grow after the war by manufacturing a number of express bodies and some

smaller dump bodies that could be easily installed on either stock or converted (heavy-duty suspension & drivetrain) Model T chassis prior to 1920. Galion and Wood Mfg. Co. built all of the dump bodies offered by Ford on their heavy-duty AA and BB chassis during the 1930s.Galion, now Galion Godwin Truck Body Co, is the oldest known truck body manufacturer still in operation today. Tipper trucks are one of the most important elements of a large project but are subject to overloads especially in regions where there are fewer weighbridges.

pile driver if you thought the other machines in this roundup go back a long way then the piledriver really has a history. There are a number of claims to the invention of the pile driver. A mechanically sound drawing of a pile driver appeared as early as 1475 in Francesco di Giorgio Martini’s treatise Trattato di Architectura. Several other prominent inventors — James nasmyth (son of Alexander nasmyth), watchmaker James valoué, count Giovan Battista Gazzola, and leonardo da vinci have all been credited with inventing the piledriver. However, there is evidence that a comparable device was used in the construction of crannogs at oakbank and loch Tay in Scotland as early as 5000 years ago. otis Tufts is credited with inventing the steam pile driver in the united States, he died in Massachusetts in 1869 at the age of 65. A large-sized – torque pile driver is around 240 kN•m, engine power 300 kW, drilling diameter 1–2.5m, drilling depth 80m, total quality 100 tons.

Bulldozer It is not certain who invented the first bulldozer but bulldozer blades were in use before the invention of tractors. It consisted of a frame with a blade at the front pulled by two mules. The mules pushed the blade into a heap of dirt dumped by a cart and spread the dirt or pushed it over a bank to fill a hole or gully.

The fun part came when you wanted the mules to back up for

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the next push.

One of the originators of the powered bulldozer was Benjamin Holt. The name caterpillar was coined by a photographer working for him taking photos of one of Holt’s track-laying or crawler tractors. Looking at the machine’s upside-down image through his camera lens, he commented that the top of the track undulating over

its carrier rollers looked like a caterpillar. Benjamin Holt liked the comparison and adopted it as the name for his track-laying system. He was using it for some years before the formation of the Caterpillar Tractor Company, which was formed by the merger of the Holt Company and their major competitor, the C. L. Best Gas Tractor Co., in August, 1925.

crAne We think that we make progress but cranes have not evolved as far as we think. egyptians used human powered cranes thousands of years ago, the most powerful hand crane in history multiplied the force of its operator 632 times.

The most common tower cranes in construction today have a lifting capacity of 12 to 20 tons.

For quite a few construction projects in ancient history, this type of crane would be completely inadequate.

The colossi of Memnon, two statues of 700t reach, were erected to a height of 18m and the walls in the roman Baalbek temple complex (1st century Bc) contain almost 30 monoliths weighing 300t-750t each. initially, the lifting speed of lifting machines was extremely low, while the amount of man power required to operate them remained very high. Towards the end of the nineteenth century, however, just before steam power took over, human powered lifting devices became so elaborate that one man could lift a 15t truck in no time, using only one hand.

A crane with five pulleys allows you to lift five times more than you are otherwise able to - but the rope has to be pulled over five times the distance.

What the mechanical crane has offered us is speed and consistency.

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

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

Grove cranes range in capacity

from 8t to 450t

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

Special Report

Waiting for kickoff

Ahead of this month’s Project Qatar, CMME takes a look at whether the country is ready to finally ready to kick off its World Cup spending 60

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Qatar keeping it cool Qatar is racing to develop efficient solar-powered cooling technology to counter the searing heat of the Middle Eastern summer in its stadiums during the 2022 FIFA World Cup, a senior organising committee official said.

Nasser al-Khater, the organising committee’s communications and marketing director, also said the country would construct its stadiums with modular technology so it could downscale them after the tournament, and donate seating to countries with little sports infrastructure.

Al-Khater said the country already boasted the world’s first cooled stadium, albeit with traditional energy sources.

Temperatures in Qatar can reach more than 40C in the summer months.

“We showed FIFA how the cooling technology works, it was warm outside but in stadium was cold they wanted their jackets,” al-Khater said during a trip to Berlin for a Qatari business and investment conference, “So, cooling a stadium is not the issue.”

The issue is that Qatar has promised to hold a carbon-neutral World Cup and so is researching solar-powered cooling technology. It will either create a central solar power farm or have

individual ones installed in each of the 12 stadiums it is building, said al-Khater.

“When you don’t use it for the stadiums you feed it into the grid,” he said.

Qatar developed a small, solar-powered prototype stadium seating 500 during the bid process, but wants to develop more efficient technologies ahead of 2022.

“With solar, the big challenge is how do you deal with solar technology in the desert in terms of withstanding the elements and getting it clean so it is efficient,” al-Khater said. He said he had met several German companies during his trip to Berlin that had interesting proposals. Germany has been a pioneer in solar technology.

Many leading voices in football such as UEFA president Michel Platini have called for the World Cup to be held in December or January, when the average temperature is 17 degrees, rather than in the middle of the year.

Historically, the World Cup has always been held in June and July and any change could lead to a major scheduling headache with the major European leagues normally playing through the winter.

S

oon after winning the bid to host the FIFA World Cup, the triumphant victors were quick to assure that despite a desperate lack of infrastructure and a daunting programme of stadia construction it would be ready on time. The year was 2007, the country Brazil. With a year to go, Anand Hemnani, the chief investment officer of Sao Paulo-based CG/LA Infrastructure, recently told CNBC that his earlier fears that the South American country would fail to get its roads, airports and venues ready in time were unfounded.

“Not only the national government but the subnational governments are collaborating with Brazilian National Development Bank and the key pension funds are fast-tracking their priority projects.

The rhetoric has somewhat changed in that there is a real sense in long-term planning,” he said.

The Brazilian government has grown markedly bolshier as the event draws closer.

“We are ready, the infrastructure is being prepared, the stadiums are all being built, we are going to have an incredible collection of stadiums in Brazil,” said finance minister Guido Mantega. “Brazil will be prepared to win the World Cup.” Going on the Brazilian timeline, Qatar is still some years away from needing to hit the panic button, but there has been discomfort that the expected avalanche of contracts and tenders has failed to surface. Beneath the ground progress has been better since the award of several infrastructure and utility packages. If Ashghal was running the World Cup construction, it would be ready by the time Rio de

Janeiro opens for the Olympics in 2016. 2013 has seen some promising signs that Qatar is releasing funds for construction, although most of appears to be been directed at the longer term 2030 Vision programme of social infrastructure investment. As the first quarter of 2013 drew to a close, Qatar announced the largest budget in its history, allocating $57.9 billion – up from $49 billion in 2012 – for spending for the year 2013/2014. Whether this budget will translate into actual construction is yet to be seen.

Last year’s Project Qatar show was full of companies that were there to show face rather than make deals and the upcoming event this month will be a chance to find out whether that is still the case. A quick straw poll of equipment companies in the country

by CMME over the last month has revealed that most are turning their attention to the early part of next year. According to Standard Chartered the continuing malaise in the market will have an inevitable effect on the cost of construction.

“We expect the prices of building materials and certain raw materials to begin to rise, and domestic transport and logistics costs are also likely to feel the pressure. In Q1-2013 we have seen positive signs related to Qatar’s spending commitments for FIFA 2022,” it said.

“In addition, so far this year, the government has awarded a number of projects related to the country’s decade-long infrastructure commitments,” it reported. “Some of these projects should break ground by H2-2013. Between now and 2022 we expect almost $115 billion of government expenditure on

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infrastructure projects and FIFA 2022. We expect near-to medium-term spending trends to focus primarily on delivering core infrastructure. Sportrelated infrastructure (ie football stadia) is more likely to begin midway through Qatar’s decade-long spending cycle.”

Foreign companies wanting to land lucrative infrastructure projects in Qatar will need to reconsider their approach to the tender process, according to experts assembled for the MEED Qatar Infrastructure Projects conference in London last summer.

“With more than $70 billion worth of major projects to be awarded until 2022, Qatar remains one of the most robust global markets for construction companies. However, tendering for the major contracts will require more transparency on the part of contractors as the Gulf state seeks to appoint partners that can satisfy the technical and financial requirements of each project while showing their genuine commitment to the National Vision 2030,” said Stuart Curtis of The Links Group.

According to Ian Lyne, Director of Development Strategy, Place Dynamix (Middle East) and previously Project Manager of the multi-disciplinary team responsible for the preparation of the Qatar National Master Plan, procurement in the Gulf State has slowed as it re-evaluates development priorities ahead of the 2022 FIFA World Cup. However, he says Qatari clients are using this period of reflection to ensure they bring in the right expertise to deliver their massive infrastructure projects on time and to specification with minimal risk of additional contractual claims.

The New Doha Port, for example, has moved its tender and bid process online in an effort to make the tender process more efficient, competitive and to improve the overall quality of submissions. All details of past, current and future tender packages

are now available on its Website. The authority also publishes the names of all companies who apply for prequalification as well as the names of those who get shortlisted.

“We are trying to improve transparency between the client and bidders,” explained Engineer Nabeel Mohammed A R Al Buenain, project executive director, New Doha Port, “Some companies have complained to us about publishing their names when they have not prequalified, but we believe this creates a more competitive and fair marketplace. There are six criteria which bidders must satisfy before tendering for our projects. They must have acceptable cash flow, experience in the field, the right equipment, skills and staff and be committed to the project and Qatar.

It is very important that submissions demonstrate capability in each of these areas.”

While New Doha Port’s tender portal has received some criticism from contractors, James Brenan from law firm Herbert Smith says it is an approach clients have to adopt in order to attract world class contractors.

“What we have now is a cultural disconnection between clients and companies. Contractors need to change the way they approach a deal, adding more value beyond contractual communications by bringing new ideas and being innovative. Companies have to manage the client relationship as much as the contract. It can mean the difference between succeeding and losing the bid,” said Brenan.

“CoNTRACToRS NEED To CHANGE THE WAy

THEy APPRoACH A DEAL, ADDING MoRE VALuE BEyoND CoNTRACTuAL CoMMuNICATIoNS.” Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

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CONSTRUCTION

MIDDLE EAST

May 2013