Construction Machinery ME September 2013 by Construction Machinery ME

ISSUE 23 R 2013 SEPTEMBE

PUBLICATION LICENSED BY IMPZ

THE KING OF CRANES

NFT’s Zabil al Zahlawi on going global

TAking A hard line

Kit cementing reputations in the GCC

Still in the lead?

Is Germany losing its edge?

oil and Gas equipment

GETTING A GRIP

What’s in the O&G pipeline? Plus: ACROSS THE INDUSTRY

* NEWS & VIEWS * FACEBOOK FIASCO * IMG SITE VISIT * AND MORE

Contents

26 IS S U E 2 3 r 2013 Septembe

02 Editorial

Subaru Emirates’ disatrous attempts at social media engagement is a warning for the sector’s dealers.

06 News

What’s happening across the region in construction machinery?

10 News Analysis page 54 It’s crunch time for your operation

“Select kit based on the method of work and site conditions, adjust the volume capacity of the heavy equipment to the job.”

Reports on corporate corruption contain lessons to be learned for contractors looking to win major contracts.

12 COMMENT

CMME’s new international editor Stian Overdahl on facing up to corporate culture when trying to instill greater safety awareness.

14 The empire of a king

CMME talks to Nabil Al Zahlawi, the so-called king of cranes, on why NFT is now a truly global company.

18 Deutschland uber alles?

Raw power

Has a series of takeovers and the meltdown in Europe affected Germany’s status at the head of global development?

26 A living marvel

Site visit to IMG Worlds of Adventures in Dubai.

33 NEW RELEASE ROUND UP What’s hot in new machinery this month in this month’s Raw Power Page 38 TOP TEN Construction Machinery Middle East’s guide to greening your fleet Page 40 OVER AND IN THE PIPELINE Technology that is shaping the way the oil and gas lays its pipes Page 46 CEMENT TRUCKS A look at the cement truck and pump technology that is available for Middle East contractors Page 50 STATE-OF-THE ART Building a modern truck Page 54 THE LAST WORD Subaru Emirates: what went wrong? 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 56 795 8740 International EDITOR STIAN OVERDAHL stian.overdahl@cpidubai.com

Subaru bro-gate a lesson for our dealers

hen your company is in trouble you better be aware of it and you better be sure the person facing the flak doesn’t resort to calling genuinely offended people as ‘Bro’. To paraphrase Bruce Springsteen, Subaru Emirates may not have started the fire but it could have and should have done a lot more to put it out. The dealership owned by Al Adiyat found itself at the centre of a storm after its Facebook page carried a picture of an accident in Dubai which resulted in the death of four members of family. They died after their car hit a stationary vehicle on the Sheikh Zayed Road in Dubai; the female driver of the car had left it there after one of her tyres punctured. In what was an apparently innocent attempt to highlight another fatal accident on the UAE highways, the person responsible for uploading the image chose to go with the now infamous caption of “Women driver at it again” and a confused paragraph at the end of a description of the accident that seemed to blame the deserted driver’s behaviour on her gender. When the post drew dozens of comments from appalled readers, the administrator of the site – which is believed to be the employee of Subaru Emirates’ PR company Dunamis – tried to appease them in a way that has been described as anything from inarticulate to insulting. As the post stayed on the Facebook page for more than a day, many turned to Subaru of America, Inc’s own page to force its removal. While that organisation told CMME that it, perhaps understandably, had nothing to do with it, they did say they would look into it. I can only imagine the dismay at having to handle the social media front end in one of your biggest markets after a third party employed by a dealer halfway around the other side of the world decides to offend a sizeable slice of the local demographics. I’m going to set aside any observations about what was written – as that has already been chewed over by the local media in the UAE. Suffice to say, CMME has been a long-standing advocate for greater road safety awareness and hopes that this will further highlight a need for greater vigilance. Afterall, consideration for other users should be one of the major objectives and responsibilities of everybody that drives. Wherever they are in the world, and wherever they are from. Respect for those who lose their lives in such avoidable circumstances should be equally paramount. The automotive industry and the machinery industry share so many similarities that this type of incident should also serve as a warning to dealers hoping to engage in social media and more importantly how their actions can have a serious impact on their manufacturer partners.

deputy EDITOR GAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480 MARKETING & ADVERTISING PUBLISHING Director RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 COMMERCIAL DIRECTOR MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com +971 4 375 5497 MARKETING MANAGER CAROLE MCCARTHY carole.mccarthy@cpimediagroup.com +971 4 375 5498 DESIGN SENIOR GRAPHIC DESIGNER REBECCA TEECE rebecca.teece@cpimediagroup.com +9714 375 5713 JUNIOR GRAPHIC DESIGNER PERCIVAL manalaysay percival.manalaysay@cpimediagroup.com +971 4 375 5712 CIRCULATION & PRODUCTION Circulation and Distribution Manager ROCHELLE Almeida rochelle.almeida@cpimediagroup.com +971 4 368 1670 Database and Circulation Manager Rajeesh M rajeesh.nair@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 +971 4 375 5714 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 23 2013 SEPTEMBER

PUBLICATION LICENSED BY IMPZ

THE KING OF CRANES

NFT’s Zabil al Zahlawi on going global

TAKING A HARd lINE

Kit cementing reputations in the GCC

STIll IN THE lEAd?

Is Germany losing its edge?

Stephen White, Group Editor, CMME

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September 2013

OIl AND GAs EquIPMENT

GETTING A GRIP

What’s in the O&G pipeline? Plus: ACROss THE INDusTRY

* NEWs & VIEWs * FACEBOOK FIAsCO * IMG sITE VIsIT * AND MORE

NOW ONLINE You can now catch the online edition every month at: www.constructionmachineryme.com

March 2013

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News Round-Up

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

IN europe and Coming to Africa Three Linden Comansa 21LC290 Flat-Top cranes deployed on Ireland’s National Conference Centre. The manufacturer’s crane will make its continental debut at Bauma Africa later this month.

New machinery market worth $195bn by 2018

A report by the US-based market research firm MarketsandMarkets suggest that the global market for new construction machinery sales will grow from an estimated $131.1 billion in 2013 to $195.0 billion by 2018. The report assumes a compound annual growth rate (CAGR) of 8.3%. Currently, the AsiaPacific region makes up more than half of the global market, followed by Europe (less than a quarter of global sales), North America, South and Central America, and finally Rest of World (ROW), which includes Middle East and Africa. “The market is estimated to witness

8.5% CAGR within the forecast period for infrastructure development purposes. The BRIC countries and emerging economies of Asia-Pacific including South Korea, and Australia are leading the growth for this market,” says the report. “The critical factors responsible for growth of the market include a continuous increase in demand for new infrastructure, increase in the demand for residential buildings due to growing population, high construction and public infrastructural growth especially in emerging markets. The key concerns in the industry pertain to the high cost of the market.”

MAN keeps up momentum in H1 MAN Truck and Bus Middle East continued its strong sales performance in the first half of 2013, with sales growth of 15% year-on-year.

strong regional performance for MAN Trucks contrasted with its overall global performance, which saw overall sales decline, and an operating loss of $165 milion in the first half of the year. “The Euro Zone is critical to MAN’s overall business however, Middle Eastern economies have been resilient and with billions being spent on infrastructure projects in the region, the construction and transportation sectors have immensely benefited,” said David van Graan, head of MAN Center Middle East and vice president, sales and marketing. “Our strong sales performance in the first half of this year is testament of the increased economic activity in the region. MAN has built its leadership position in the regional transportation industry over the years, by

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offering customers world-class transportation solutions and outstanding after-sales service through our strong network of importers and dealers.” The UAE, Saudi Arabia, Oman and Qatar continue to be the main growth markets for MAN, said van Graan. The company also recently launched its Genuine Parts ecoline range to ensure the availability of high quality and precision-made spare parts for MAN vehicles across the region. “Discerning regional customers, with several ambitious projects planned or underway and tough operating conditions prevalent, are demanding commercial vehicles that are not only high-performing but durable and offer good value-for-money as well; and this has been the key driver of our sustained sales growth,” added van Graan.

Company intelligence Contracting hinges on its contracts, naturally, and in most countries around the world these are standardised international forms of contract like FIDIC, but Qatar tends to be a different story. “One of the main issues is that the employers over here tend to use their own form of contract, so they take a FIDIC and amend with clauses that make it a more onerous contract for the contractor,” explains Alexander Milne, contracts director at UrbaCon Trading & Contracting (UCC). “So any contracts department must make sure to identify the risks in each of the contracts and address those risks either by qualification or by pricing.” Khayyat Contracting & Trading (KCT) is picking up a growing number of projects in Qatar and though there is pressure on the supply chain the company says it will stand firm in encouraging local supply, which will ultimately save on time and money in the market Moutaz Khayyat, CEO of KCT, notes: “We are emphasising local supply, because the best way for you to save is to source your materials from the country you are in, and in Qatar this will prompt the creation of a market which can accommodate everything that is going on in the country.”

Zawawi delivers first Freightliner in Oman

Zawawi Trading Company (ZTC) has delivered its first Freightliner truck in the Oman market. The truck was customised to include a freezer body and Thermo king unit, and delivered to Waleed Catering and Service Co this month. ZTC is the official distributor for Mercedes-Benz in Oman, and Freightliner trucks are part of Daimler Group. The Freightliner 1823 (4×2) model truck is fitted with

a Mercedes-Benz engine. Freightliner vehicles have a customisable chassis. The trucks come in wide variety of sizes and performance capabilities ranging from medium duty to severe duty and a payload capacity starting from 8t to 15t. “Freightliner trucks have been the leading trucks in North America for many years namely because of their reliable and powerful Mercedes-Benz engine, range of trucks to service any

business even in the harshest of conditions, and their lifelong durability and efficiency,” said David Swain, general sales manager – automotive at ZTC. “Omani customer’s that depend on trucks for their business can now be guaranteed the same superior performance.” The Service interval for Freightliner trucks is every 30,000 kilometres. ZTC holds 85% of original spare parts, supported by Daimler’s DC in Dubai.

CeraTech a producer of carbon neutral cements for concrete, has announced an agreement to expand operations into the Middle East and Africa. The company has entered into a license agreement with CeraTech ME&A, Ltd., a newly formed, separately owned and operated company. The company has been granted the exclusive rights to manufacture, market, and sell CeraTech’s durable and environmentallyfriendly cements. CeraTech’s system promises a carbon neutral cement system that replaces Portland Cement.

Tender updates

Dubai Holding, the main promoter of Smartcity kochi, has received permission to begin construction on the first building on the project, from the single window clearance board, it has been announced. Baju George, managing director of SmartCity Kochi, told Gulf News that construction work would start at the end of the month, with the tendering of piling works set to be completed first.

Abu Dhabi’s TDIC is inviting contractors to pre-qualify for the main contract to build the Guggenheim on Saadiyat Island. Works include concrete substructure, concrete superstructure, structural steelwork, glulam timber structure/glazed cladding to the cones, MEP, vertical transportation, security installation, fit-out works and external works.

Oman Cement Company to open new ready mix plant The Oman Cement Company (OCC) is planning on setting up a ready mix concrete plant, the Times of Oman reported in August. In its annual report for 2012, the company noted strong demand for concrete in the Omani market, while at the same time warning of over-supply of cement from neighbouring companies. OCC is the second-largest cement producer in Oman, and is majority state-owned. The company is also looking to increase its cement grinding capacity with the installation of a new mill with 150TPH production capacity.

“The growth of infrastructure sector in the Sultanate of Oman has continued to drive the demand for cement,” said Jamal Shamis Al Hooti, chief executive officer of OCC. “However, over-supply situation created by inflow of large quantity of cement from neighbouring companies at lower prices continued to remain a threat.” The company also recently reported a theft event. On the evening of Thursday 9 May, 2013, burglars broke in its sales department office and made away with $233,000. The insurance company was been notified for taking necessary action, reported the company.

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

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

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

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

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

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

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

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XCMG sells 3000th crane in Brazil Since launching its crane product line in Brazil in 2004, the company has taken on the number one position in the country in terms of market share.

Al Habtoor adds JAC vehicle brand Al Habtoor Motors has announced a distribution agreement for the UAE with JAC Motors, the Chinese manufacturer of passenger and commercial vehicles including heavy trucks. On 11t July 2013, the official dealership agreement was signed in Dubai by Sultan Al Habtoor, president of Al Habtoor Motors and Carl She, general manager of JAC International, in the presence of all the Al Habtoor Motors board of directors.

HLG seeks $272 million in compensation from Qatari Sheikh Al Habtoor Leighton, the Dubai arm of the Australian contractor, is seeking more than $272 million in compensation from a prominent member of the Qatari royal family for late payments on a hotel project in Doha. According to a Reuters report, HLG has launched a series of suits against Sheikh Faisal Bin Qassim Al Thani’s Al Faisal Holding in relation to the Doha City Centre Hotel development. Khalaf Habtoor, chairman of the Al Habtoor Group and part owner of HLG, has said that it planned to initiate legal action internationally against the Qatari company. However, Al Faisal has countered HLG’s suits with accusations of mismanagement and a failure to take responsibility for several delays. A statement by the Qatari company said that these delays have affected the construction of several hotel towers in Doha, which were originally scheduled to be completed in 2007. “The company wants more than a $272 million dirhams in compensation from Al Faisal,” Habtoor told Reuters. He said the suits were in response to Al Faisal Holding’s decision to cash in a $100 million performance bond which the contractor had put up as a guarantee in a project planned to include Marriott, Renaissance and Shangri-La properties.

Sheikh Faisal Bin Qassim Al Thani is a relative of Qatar’s Emir, the ruler of the tiny Gulf Emirate, whose natural gas wealth has made it one of the world’s richest states per capita. This wealth has also funded significant investment into a raft of major infrastructure projects. “Al Habtoor has been responsible for the construction of nine towers and hotels developed by AFH has developed in Qatar which have been beset by significant and prolonged delays over a number of years,” AFH said in a statement. “It appears that constant changes in Al Habtoor’s management have led to the mismanagement of these contracts, and the responsibility for the severe delays should be addressed internally by the management team of Al Habtoor,” the statement quoted al-Thani as commenting. It also said that phase three of the City Centre expansion project had yet to be completed some eight years after HLG took possession of the site and that the contract had originally stipulated the project was to be completed two years after the contractor took possession of the site. AFH said damages from the delay of the project are now in excess of $410 million and continue to accrue. It said there were a total of eight cases before the courts and that one of the cases Al Habtoor filed had been dismissed.

SOLD: $2 million RT Ritchie Bros sold a number of high value mobile cranes and equipment in July, including a 2010 Grove GMK7450 in Italy which sold for $2 million.

Al Habtoor will sell passenger, light commercial and heavy commercial vehicles to the UAE market. The company aims to make JAC Motors one of the highly competitive automotive brand in the passenger and commercial vehicles segment of the UAE in the next five years, it said. “JAC has been a comprehensive automaker with full-line

independent brand vehicles in China, including light, medium and heavy-duty trucks, MPV, SUV, sedan, bus chassis, buses, engineering machinery, engines, gearboxes and other key components,” said Joe Rogan, director of sales at Al Habtoor Motors. “With an annual production capacity of more than 700,000 units of completed vehicle, JAC has been ranked as one of the top 10 brand in Chinese auto industry. “Al Habtoor Motors plans to open the first JAC Motors showroom in Dubai followed by Abu Dhabi in the first quarter of 2014. We have plans to expand its dealership network to other emirates within two years after the first showroom is launched.” said Rogan. Al Habtoor Motors sells a range of passenger car brands including Mitsubishi, Bentley and McLaren, as well as Fuso commercial vehicles.

What lies beneath? Workers in Montreal were shocked as the backhoe they were using fell into a sinkhole in the downtown district of the Canadian city. Residents and businesses in the area had complained of flooding for a week before a crew was sent in to investigate a suspected leak in the city’s sewage line.

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Middle East major contributor to strong Komatsu sales Japanese manufacturer Komatsu says sales in the Middle East helped to offset falls in demand in previously strong markets. Komatsu saw its net sales slacken globally as they fell by 3% to $4.6 billion year-on-year in the first quarter of 2013. Profit, listed as operating income, fell by 6% to $534 million in the same period. The company added in its trading statement that construction, mining and utility equipment net sales were down 3.1% to $4.2 billion, while industrial

machinery net sales fell 6.3%t to $411 million. Despite the falls, Komatsu retains a largely positive outlook for the fiscal year ahead and expects its net sales to increase 9% to $21 billion iwith operating income improving by 44% to $3.1 billion. While demand for construction and mining equipment in its major export markets of Indonesia and Latin America declined, expanded sales of construction equipment and parts in Japan and the Middle East largely compensated for those demand declines, Komatsu said.

Powerscreen delivers 100th Warrior screen in Oman Powerscreen has delivered its 100th Warrior 2400 mobile screen worldwide to its distributor in Oman, the General Engineering Services (Genserv). The Warrior is one of Powerscreen’s key models. Officially launched in June 2010, the first Warrior 2400 was sold to Lincom in Australia and has since been shipped to customers across the world. One of Oman’s leading infrastructure companies, Galfar Engineering SAOG, originally requested a scalping plant from Genserv. The customer required machines capable of providing output capacities ranging from 700 – 900 tonnes per hour (t/h), and required that they were mobile as they planned to use them for roads and building projects all over Oman. Genserv recommended the Warrior 2400 scalping screen and Galfar Engineering ordered two of them to meet their requirements of the job. When production began, the Galfar was so satisfied with its capabilities that they expanded their fleet to include four more units, including the 100th production model of the Warrior 2400. All six machines are now working at the Al Batinah Expressway road CONSTRUCTION

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project (Phase 1 – 45km), where high quality sub-base is being produced from feed material of a nearby wadi. “We are very happy with the performance of our plant – each machine is working for up to 20 hours per day and producing high volumes of material. We find that the machines offer a low operating cost per tonne and we know that we can count on high speed local support from Genserv when we need it,” commented Galfar. The Warrior 2400 screens are configured with a 150mm punch plate on the top deck and with a 63mm aperture mesh on the bottom deck, giving three end products. The -63mm fines is used for base rock for road projects. The mid-size material (+63mm to -150mm) is crushed through a wheeled Terex cone crusher and a legacy Terex Pegson 4242SR impactor and sized below 63mm using the attached post-screen. Finally, the +150mm over-sized material is crushed using a jaw, cone and VSI range of crushers working in combination with various screens to make different sized aggregates and manufactured sand. In some instances, the screened oversized material is also used for road pitching work.

Hitachi region sales level as mining sector slumps in sales. The Japanese company said it was benefiting from China’s ongoing urbanisation programme.

The Middle East is among a collection of stable markets for Hitachi as its overall profit fell by 30% in the first quarter of its fiscal year which ended in June. The mining sector has provided a safe harbour for many manufacturers during the downturn but a series of incoming results reveal that a slowdown in the sector’s key markets of China, Indonesia and Australia has hurt their bottom lines. Among them is Japan’s Hitachi which saw its revenues fall by 7%

year-on-year to US$ 1.9 billion and its profit fall by 30% to $97 million. Also citing falling sales from the Indian construction market, the slump in mining activity in the Asian and Oceania countries contributed to sales of $560 million and drop off of 21% across the two region. Conversely Hitachi seems to have defied the gloom that has surrounded the Chinese market over the past year and said that its revenues in the market had improved by 35% compared to Q1 2012 reaching $328 million

Hitachi also seems to have navigated choppy conditions in the European market and identified eddies of demand in the regions that are experiencing an upturn in activity. It said its year-on-year revenues increased by 5.4% to $180 million. It was less successful in North and South America where its business fell by 26% to $240 million, although there are signs of robustness in the US housing market. Hitachi found calmer waters in the Middle East, Russia and the CIS, and Africa which collectively experienced unchanged revenues of $170 million.

News Analysis

Are we paying the price? How prevalent are bribery and corruption practices in the Middle East? Gavin Davids looks at the challenges that come with eradicating such practices

ny competitive advantage gained through corruption is a mirage.” That is a quote attributed to Robert S Khuzami, director of Enforcement, US Securities and Exchange Commission in an Ernst & Young report that addresses the challenge facing regional governments and companies as they battle to stamp out the practices of bribery and corruption in the Middle East. The report, entitled ‘Managing Bribery and Corruption risks in the Construction and Infrastructure Industry’, covers the global challenge of combating the issues that arise in regions and countries that see these negative practices flourish.With regards to the Middle East, Robert Chandler, partner, Assurance – Middle East and North Africa, for Ernst & Young Middle East, says that despite all appearances to the contrary, corruption in the Middle East is fairly widespread and is a legitimate cause for concern for both governments and companies in the region.

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“Many Middle Eastern countries fall in the lower half of the Corruption Perceptions Index (the GCC countries and Jordan are notable exceptions). Several high-profile corruption investigations in Western countries have related to activities in the region,” he explains in the report. “We have been seeing increasing Anti-Bribery and Corruption (ABAC) measures in many countries in the Middle East, but bribery and corruption is still prevalent, as shown by the numerous Foreign Corrupt Practices Act (FCPA) cases involving conduct in the region,” Chandler adds. This is often because companies fail to provide clear guidance to their employees over what is regarded as acceptable and unacceptable business practices specific to the region, or the procedures to manage such a situation, should it arise, the report says. However, Michael Adlem, partner – Fraud Investigation & Dispute Services Middle East

Adlem: time to put policies in place The culture of ‘gift giving and kickbacks’, especially in this region, is a tricky concept to tackle. On one hand, Adlem says, the practice of giving ‘gifts’ is almost cultural, and has been going on for a long time. On the other hand, it can veer into murkier territories when those gifts become excessive and force or move individuals into making a decision they wouldn’t normally make otherwise. “It’s not going to change overnight. I think it’s going to be a gradual shift. But I think what you’ve got to see is that some efforts are being made to get rid of it and to crack down on it. I certainly don’t believe it’s going to happen overnight, it’s going to take a long time,” he points out. But he does encourage his clients, and other companies operating in the Middle East, to actively pursue Anti-Bribery and Corruption policies, as he says it could ultimately be to their benefit. Citing an example of a local client, who declined to introduce ABAC measures into his business, despite working with US, UK and European partners, Adlem said that it lead to further complications down the line when those same partners asked to see his ABAC policies, his anti-fraud policies, his audit policies and so on. “My view is that you can turn that into a competitive advantage and have all those things in place and have them embedded in your business. When you’re able to demonstrate that, you’ll be able to win these contracts because European and US companies are really going to jump on to that,” he explains. This is because under some of these acts, these companies can get caught and prosecuted in their home nations. “We’re already seeing this in the pharmaceutical industry, with what’s happening in China,” he says. “Certainly the construction industry is no different in that respect, because it’s a big industry, and the spend is huge, it ticks all the boxes.”

and North Africa, also with Ernst & Young, says that the problem actually goes much deeper than that. “We spend a lot of our time working for companies that are mostly US, UK and European (owned), doing reviews of their agency companies out here in the region. And often we will find issues around bribery when we do these reviews,” he says. “I think it’s pretty much everywhere, to be honest. We surveyed companies around the region and it came back that everybody saw it as a major problem in the region, as a whole.” “Even though in many countries here, it (bribery) is an offence, but nobody treats it very seriously. “There is a UN convention against corruption, which most of the countries in the region have signed up to, and that requires that they put better legislation in place to bring about prosecution and those sort of things. There is an international initiative to move things, but as with a lot of these things, it’s not happening as quickly as the UN would like,” he explains further. In an alarming observation, the Ernst & Young report states that although most of the Middle Eastern countries have ratified the United Nations Convention against Corruption (UNCAC), there are still gaping holes in the defence against negative practices. The Sultanate of Oman has not signed up to UNCAC, while Saudi Arabia and Syria are both signatories to it, but have not ratified it. Furthermore, the implementation of the specific policies of the convention continue to pose challenges to enforcers of the law. “I think the problem is that nobody has done very much about it, apart from the US. If you look at the statistics, most of the prosecutions around bribery and corruption, 95% of them have come out of the US, in the last 20 years,” Adlem says.

“I think the UK is in second place with about 3%. So the rest of the world has done very little and there’s very little prosecution here in the Middle East.” This urgently needs to change, he says, if there is to be any major change in the way business is done in the region. One of the most common methods of bribery comes in the form of ‘kickbacks’ and ‘gifts’, which in the context of business dealings, is almost viewed as normal business practice in the regional market. “Bribes, particularly in the form of kickbacks, are still regarded as an accepted part of doing business in the Middle East, often with little thought for potential to corporate reputation damage,” says a research survey entitled ‘Bribery, Corruption and Fraud in the Middle East,’ which was released by Ernst & Young Middle East and polled 63 respondents from organisations in eight countries in the region, between August 2011 and January 2012. The countries included were: UAE, Jordan, Kuwait, Egypt, Oman, Saudi Arabia and Bahrain. Of those respondents, 36% said that they strongly agreed that bribery and corruption were major problems in the Middle East. 32% said that they agreed that it was a major issue. Only 10% said that they disagreed with it being a major problem. Adlem does point out that the UAE is putting in motion legislation that will bring it in line with UN requirements, but says that the proof of its effectiveness will only come when the legislation is in place and prosecutions take place. He draws a parallel between the UK Bribery Act, which was introduced in 2010. “It (the UK Bribery Act) came into force in 2011. We’ve not seen too many prosecutions at the moment, though I understand that there are one or two ones in the pipeline. When countries out here put the legislation in place, I think there will be some eyes watching to see what will happen, to see if they actually do enforce.”

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Expert Opinion

Safety rules over company culture Company culture has more impact on work place safety than national cultures, says CMME’s International Editor Stian Overdahl

Stian Overdahl, International Editor, CMME

onstruction companies and work sites in the GCC must be some of the most diverse work places in the world, with staff ranging from the Middle East, Europe, Asia, Near East and Australia. It is an environment in which knowing how to manage your communication processes can be just as important as knowing how to put up a building, for the project to progress as planned. On the topic of safety, it’s not uncommon to hear construction managers or people in similar positions who have begun their career in Western countries grumble about the attitudes to safety amongst their workers. Sometimes people will go so far as to voice the opinion that the Western mindset is innately safer than that of some of the other cultures present. But it is worth keeping in mind that there is nothing ‘innate’ about a safe work place, these come about through well-designed safety plans, robust implementation of these, regular checks that the plans are being carried out and staff training, all of which come at a cost to the company. In Europe and elsewhere, workplace safety practices and regulations are

a result of a long chain of horrific accidents stretching back decades if not centuries. Injuries and deaths are investigated, and new processes developed, which over time have result in the cultures of safety. Nevertheless, it only takes one lax company to forget the reasons behind safety practices to have disastrous results. An underground coal mine explosion killed 29 workers in New Zealand in 2010, and reporting on the inquiry into the causes of the explosion I saw the way a company can disregard well known lessons from the past, to the detriment of its workers. Underground coal mining is an entirely different beast from construction, but the signs leading to that disaster are instructive: a company that ignored or had little regard for its own safety procedures, which prioritised production over safety, and did not empower its workers to not speak out or act over safety issues. In the Gulf it is true that there are additional obstacles for companies when it comes to safety, including inexperienced workers with lower skill-sets, and different cultural backgrounds.

“people will go so far as to voice the opinion

that the Western mindset is innately safer than that of some of the other cultures present.” CONSTRUCTION

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On the one hand, all companies perform a cost-benefit analysis on the problem of unskilled staff, and there are naturally limits on the amount of time and money that can be spent on training. But at the same time, I’ve visited companies in the GCC that were particularly proud of their efforts to engage with their workers, and train their workers to always be thinking about the job they were doing. This could involve telling workers to make their own decisions in certain situations, meanwhile assuring them they wouldn’t be punished for making a ‘wrong’ decision. It’s to be assumed that a medium-sized company would have the advantage in this kind of endeavour, but it is always heartening to see companies taking an enlightened and proactive approach to their staff. As a construction industry journalist I’ve seen photos of various work place accidents in the GCC – all of which involved loss of production time rather than human life – which can only have been the result of workers rushing to meet production targets, or were too afraid to halt work for safety reasons. One of the principles underlying Toyota’s Kaizen practice (or ‘continuous improvement’) is that staff on all levels are able to make suggestions, and look out for ways of improving production and workflows (and we all know that a construction site has a lot in common with a manufacturing plant). In the Middle East context, companies that seek higher responsibilities from their staff should be rewarded with fewer work place accidents, whether injuries or simply production mistakes. In these work conditions, staff are more alert to the site conditions, and also more likely to take action if they see a potential accident unfolding. While different national cultures are a feature of construction work sites in the Gulf, companies should look at the variable they can control, which is also the most important: their own internal company safety culture.

How to go global Nabil Al Zahlawi, the Middle Eastâ&#x20AC;&#x2122;s undisputed king of cranes , talks to CMME about taking the company global

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The move to rental NFT’s managing partner Nabil Al Zahlawi says that changes to the crane market means that rental now makes up 85% of the company’s business. In an interview with Zawya, Al Zahlawi said that the Abu Dhabi-based crane specialist has become much more international in its approach following the real estate bubble of 2008 and 2009. “[After] the crash, we changed our business

model from Dubai to Asia and moved a big part of our cranes business to India, Taiwan, Hong Kong and Korea. This is the third year that we [have been] renting equipment and the rest of the industry is also doing the same,” he said. Al Zahlwai added: “There was a time when Dubai was the crane capital of the world and home to almost 25% of the world’s cranes. [Around] 85% of our market is from the rental

business. During the boom time, there were 10 customers for one machine. Now there are 100 sellers for one machine. It is a very tough market.” According to Al Zahlawi, NFT remains the biggest player in the region. He says that NFT accounts for more than over 60% of the cranes market in the Middle East. “Based on our market studies, we plan to have

more branches covering the entire region, which in turn will improve our ability to understand and meet the changing global market requirements,” he said. “Additionally, we plan to expand geographically to other markets like India, [countries in the] Far East, Canada and other [locations]. We want to move the success of our business model in the UAE to new markets until we see a total recovery in the MENA region.”

S While many of his peers within the Middle East were burdened with their inventories, NFT has embarked on a deliberate global programme to distribute his cranes as far and as wide as possible.

itting for dinner in Northern Europe at the end of the summer, CMME is at an event looking at the future of earthmoving but we’re talking about cranes. The conversation centres around one company. One person. “Do you know Nabil al Zahlawi? How is NFT doing?” In terms of construction machinery suppliers in the Middle East, you can’t get much higher than, NFT Cranes (NFT stands for Nouman Fouad Trading). A growth spurt which saw it amass hundreds of towers at the end of the last decade took the once Saudi and now Abu Dhabi-based dealer to the top of the tree during the boom. Half a decade later and its synomonous partner Potain’s cranes still line the roads leading into the UAE capital. Like the islands of Saadiyat and Al Reem, the industry climate has changed vastly since the heady days of 2008. NFT was once at the centre of a spending spree on towers that captured the imagination of the world’s media. In the aftermath of the global economic downturn, the cranes became a key statistic for those wanting to use the UAE and Dubai, in particular, as an example of how untenable ambition leads to inevitable decline. While many of his peers within the Middle East were burdened with their inventories, he has instead embarked on a deliberate global programme to distribute his cranes as far and as wide as possible. As the old saying goes, out of necessity comes change. “I decided to, rather than diversify in equipment, diversify georgraphically,” he begins. “Singapore was the first place I went to three years ago, and today we have close to 150 cranes in operation, in rental.” As NFT’s managing partner Nabil Al Zahlawi remains inarguably one of the most recognisable figures in the industry and is frequently asked for his views on the market. Pausing on the point of running a rental operation in the Far East he refers to a recent interview. “A very smart lady asked me, where have the cranes gone out of Dubai? I said do you want to know a secret? Ok, 150 in Singapore, 50 in Hong Kong, another 50 in Taiwan, maybe 100 in Korea.” Moving cranes internationally via the rental channel requires identifying local partners that can be entrusted with NFT’s sizeable fleet. He explains that he has looked for partners that have an effective

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service set-up. In return he offers part-ownership of the operation. Al Zahlawi says the experience of the Far East has been a good one. “We have better rates and better quality of customer,” he says. “I get impressed that the people don’t go for cheap price. We’ve never had one day delay with any of the customers…they pay ahead.” He contrasts the customer/dealer relationship with his experience closer to home. “This reminds me of the situation in Dubai when all the contractors needed you. I remember one of the big names (here) paying cash to me, $10 million in advance just to secure the proper delivery,” he says referring to the city’s mid-2000s decade boom. He adds: “(It was like that) starting from 2005 but the best year for us was 2008 – not only for us but for everybody. We reached a big numbers. I was supposed to buy 550 cranes the next year.” He recalls the signing meeting for the deal at the Kempinski Hotel in Dubai with members of the Potain/Manitowoc executive in 2007. “All the management came here. The CEO, chairman, some of the shareholders,” he stops to point at a picture on the side of the boardroom. “And we took this photo.”

The smiles form a snapshot of those heady days, the market in the region has moved on he muses. “Today we have two markets that will boom. We have Saudi Arabia, the new markets like Iraq and in the future Syria, Egypt, Libya when they are stable.” He adds: “What’s happening in Egypt is not good for business but let’s hope that situation will be better. There is a shortage of everything: housing, infrastructure, hotel accommodation.” As an example of the potential of these markets, he mentions that NFT has signed up to supply 100 cranes to the first phase of a government-funded $15 billion, 200,000 housing project in Iraq. “The contract has been signed and we are working with contractors. 100,000 flats will be delivered in five years. They have started erecting five precast factories. Starting from the end of the year the cranes will arrive. We will work day, night and fast.” The Gulf market has seen a shift to using mobile cranes on housing projects but as Al Zahlawi explains, they are not well-suited to projects of this type: “The precast factories are quite far away. The trucks move the precast to the site and we have to lift ten or 14 floors high. Mobile cranes are costly and you need a radius.” NFT has now set-up its own office in Iraq, a country still far behind Saudi Arabia in terms of volumes. On the day we meet, the company is erecting two cranes for Samsung in Riyadh. “On the Princess Noura University project we had 200 cranes,” he recounts. “We had the King Abdullah Financial District where we started with 100 cranes and today we have new contractors and are close to 180 cranes.” Currently standing at almost 1,000 cranes, NFT’s fleet continues to expand. Gross income rose by 9% in the second quarter of 2013 jumping business up to 270 million AED. However its newest towers are

“The best year for us was 2008. I was

supposed to buy 550 cranes the next year.”

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Big on the Bosphorus NFT won a $19m (AED : 70m) order to provide cranes and lifting equipment for the construction of the third Bosphorus bridge crossing in Istanbul. The $3bn project will have eight road lanes and two rail tracks and at 59m will be the widest bridge with a railroad crossing in the world.

It will be 1.3km long and is being built as part of the north Marmara motorway project with a view to removing much of the trucks and heavy goods traffic from the two existing bridges. It will connect Garipce on the European side with the Poyrazkoy neighborhood in Beykoz on the Asian side.

Nabil Al Zahlawi, said that the company has experience in working on major bridge construction projects, including the Sheikh Zayed bin Sultan Bridge in Abu Dhabi and Al Saadiyat Bridge on the Sheikh Khalifa bin Zayed Al Nahyan Road.

not expected to head towards the region: “This year we have purchased close to 100 cranes but for different markets. Our strategy is not to buy for every market (from) here. If I need a crane for the Far East I buy from Potain but unfortunately not from David (Semple, the MEA sales director for the manufacturer). Anything for the Far East we buy from (Potain in Asia).” NFT is currently working on the third 1.5km Bosphorus bridge project in Turkey with the first of six cranes for Hyundai. The cranes will be expected to work at a height of 320m. A team is heading to Turkey to erect a third crane when we meet. The job will be demanding, he says, with the cranes expected to rise by 2m per day. Global expansion means global reach and NFT employs 20 teams to oversee crane erections. Each team is coordinated onsite by a construction manager who liaises with the NFT team and the contractor. “We send teams to Africa, to India; we have no limitations,” he says.

“(There is) no border with business. You have to catch the opportunity when you can. We are fast with everything we do, we negotiate the price right away and most importantly we have a good network.” Illustrating the point he refers to the King Abdullah University for Science and University close to Jeddah. “Saudi Oger said we need 58 cranes, quickly. The next day we started putting in the cranes; we used whatever we had. Princess Noura was a different story. We knew the project was coming and I took the decision to buy the cranes before signing the contract. This is something nobody (else) can do. We sold 40 cranes to the customer and erected about 150 from our side. In the first day after we had been awarded the job we delivered 35 trucks. “On a daily basis there were between 25 and 35 trucks being delivered. Imagine the logistics,” he asks, “but this is a project where you make money. You either do it (make the investment) or somebody will take your place. I was not impressed by the size of Princess Noura but to build a university like that in 20 months, from nothing, is impressive.” Sitting in the boardroom of the NFT offices, he grabs a nearby magazine to illustrate where the company stands today in a list of the world’s biggest crane companies. Second in terms of the number of cranes, NFT reigns over its US and European counterparts in terms of tonnage and capacity. Thriving post-downturn in South East Asia, Africa and even North America, NFT is finally at the top of the tree but al Zahlawi is not prepared to ease up. “I don’t where my next destination is,” he jokes. “But I hope to get a few days off.”

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At the leading edge?

German companies have always been innovators in the field of construction machinery, but has their competitiveness waned with the European crisis, and advancements made elsewhere? Stian Overdahl investigates

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Joachim Schmid is the managing director of the Construction Equipment and Building Material Machines group within the VDMA

China market to consolidate? The recent years have seen a number of acquisitions/ consolidations take place, though notably in the field of concrete pumps: Putzmeister (acquired by Sany Group), Schwing Stetter (majority purchased by XCMG) and Waitzinger (bought by Liebherr). Asked whether more consolidation within the industry can be expected, Schmid says that in an active, growing industry there

will always be takeovers and consolidation – but he also believes that concrete pump makers were an easy target, since they saw the biggest fall in sales during the crisis, and since their product lines are – relative to other companies – lacking in diversity. “I wouldn’t see a trend. I see right now that the Chinese manufacturers have big challenges, especially companies in the second row. We are looking to China

to see how these companies will manage the challenges, and I see more opportunity for acquisitions or consolidations in China right now than in Germany.” In the immediate aftermath of the Sany acquisition there was shock in the German industry says Schmid, and worries that a further wave of acquisitions would follow. But this surprise quickly subsided he says, once the industry heard from

Putzmeister how the new business relationship would function. “It seems that Putzmeister has the lead in the concrete issues worldwide for Sany,” notes Schmid. “I presume Sany want to become a serious global player, therefore they are looking to continue production facilities and those things in Germany. I don’t see issues just because it’s a big Chinese company taking over a mediumsized company.”

7.7bn

Value of Liebherr construction and mining equipment sales in 2012, the largest German CM manufacturer

he construction machinery manufacturing industry is truly globalised, with companies building equipment from Finland to Australia. But several major industrial countries dominate, each known for a style of production: Japan with its high quality, effective designs; China with the advantages of a cheaper labour and a large production base; America led by major brand Caterpillar, and Germany with its long history of developing innovative and high-quality products. Germany has long been at the fore of industrial developments, with figures that include inventors Rudolf Diesel (employed by MAN), and Gottlieb Daimler, and companies such as Wolffkran, which invented the modern tower crane, and Liebherr, which had its start when Hans Lieherr developed a small and easy to erect tower crane. And it is an innovative spirit has made its impact felt in the Middle East, including long partnerships stretching back to the 50s, and vital solutions in major projects – think Putzmeister’s world record concrete pumping during the construction of the Burj Khalifa, or Bauer Spezialtiefbau, whose Saudi subsidiary won the $32 million contract for the

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Manufacturers

enabling works for the Kingdom Tower in Jeddah late last year. But with Southern Europe remaining mired in the economic crisis, China no longer a booming market, and manufacturers being forced to pour significant investment into the development of new engines to meet the European emission standards – are German companies maintaining their competitive edge? Joachim Schmid, managing director of the Construction Equipment and Building Material Machines group within the VDMA, the German Engineering Federation, which represents various industry groups and companies, believes that the industry is always striving to deliver new solutions and products. “I think it’s one of the efforts of [German] companies to really be innovative and always come up with clever solutions. It’s clear the ‘innovation spirit’ is still present and is very important for our members.” He says that economically, most construction machinery companies are doing well today, though there is some ‘side ways movements’ in the industry. While markets in southern Europe are at historically low levels, economies in northern Europe, including Germany, remain solid. “Altogether I would say we’ve seen better times, but it’s definitely nothing to worry about. The business is okay.” The Bauma show in Munich this year featured the Bauma Innovation awards, with a number of categories including best machine, best construction process, and best design. The majority of the nominees were German companies – the awards were a continuation of German industry awards, and consequently there’s more awareness in the industry of the awards – though it’s hoped that

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“It’s clear the ‘innovation spirit’ is still

present and is very important for German construction equipment makers.”

the awards will gain more of an international profile in future years. And examination of the winners of the Innovation Awards reveals that there’s clearly more being developed than just cleaner engines. Deserved winner of the machine category was Herrenknecht, for a pipe-laying solution, the Pipe Express, that uses a tunneling machine to excavate the soil from the trench, while the pipe is pushed in behind the cutting face by a thruster. Able to lay a pipeline at a rate of almost one metre every minute once underway, the technology reduces the number of traditional machines required on the job site, as well as massively reducing the width of the work site along the length of the pipeline, and the amount of ground that has to be disturbed. Other winners at the innovation awards included a string-free concrete paving system from Wirtgen Group, which uses a hand-held GPS surveyor to automatically map out the path for a slipform paver, and the insect-like walking excavators from Kaiser. Herrenknecht is best known for their huge underground drilling heads, and hold the world record for the largest Tunnel Boring Machine (TBM), with a drill face of 15.55 metres, used on a road tunnel in Italy. Closer to home, in Abu Dhabi, a large number of Herrenknecht TBMs, both large and micro-machines, are at work on construction of a new sewer system, with 14 machines in total delivered. The Middle East is seen as a market of

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awards were a continuation of German industry awards, and consequently there’s more awareness in the industry of the awards – though it’s hoped that the awards will gain more of an international profile in future years. And examination of the winners of the Innovation Awards reveals that there’s clearly more being developed than just cleaner engines. Deserved winner of the machine category was Herrenknecht, for a pipe-laying solution, the Pipe Express, that uses a tunneling machine to excavate the soil from the trench, while the pipe is pushed in behind the cutting face by a thruster. Able to lay a pipeline at a rate of almost one metre every minute once underway, the technology reduces the number of traditional machines required on the job site, as well as massively reducing the width of the work site along the length of the pipeline, and the amount

Manufacturers

Cleaner engines an extra cost One of the major features of the construction machinery landscape is the new emission requirements, mandated by governments in Europe and elsewhere. While this doesn’t affect the Middle East directly, since the engines will not be used here, the drive to build new engines affects the programme of new machine development. Currently, companies have to spend significant

R&D money on the new engines. And while there is recognition of the need to improve engine emissions, there are also questions and concerns about the speed of the successive standards. “Our companies have problems with the time line. Some are still struggling with the IIIB standard, since they had to change the machine design quite significantly.

of ground that has to be disturbed. Other winners at the innovation awards included a string-free concrete paving system from Wirtgen Group, which uses a hand-held GPS surveyor to automatically map out the path for a slipform paver, and the insect-like walking excavators from Kaiser. Herrenknecht is best known for their huge underground drilling heads, and hold the world record for the largest Tunnel Boring Machine (TBM), with a drill face of 15.55 metres, used on a road tunnel in Italy. Closer to home, in Abu Dhabi, a large number of Herrenknecht TBMs, both large and micromachines, are at work on construction of a new sewer system, with 14 machines in total delivered. The Middle East is seen as a market of great potential by the TBM industry, especially for micro-machines, and Herrenknecht underlined their commitment to ensuring their machines are operational at all times by opening a service branch in the UAE’s capital early this year. The workshop will be able to perform top level machine overhauls, field service, and ensure a steady supply of spare parts. “The Arab market provides for enormous future potentials - this is the reason why we have now established a full-service branch for micromachines in Abu Dhabi”, says Ulrich Schaffhauser, head of management of the utility tunneling business unit. “Tunnel construction in the Gulf region is facing dynamic times and we want to offer our customers top services.” Indeed, as significant as building a new machine is, supporting the machine through quality parts and service is equally important, if not more so. One of the strategic advantages German companies have when they operate in overseas markets is that they know how to organise their service offering, says Schmid. “When you look at the reliability of machines, German companies are used to exporting, they have been doing it for many years and they know you always have to provide service. “Other new upcoming countries or companies, they just do not have the experience of how to build up a good service organisation, that’s for example why Chinese companies really tried hard to establish more business in Europe and Germany, but they just didn’t succeed because they were lacking in service and availability of spare parts. “That’s an asset of our companies – they know how to do it, and they know what markets they can go

Now stage 4 is about to come up and there are already discussions about stage 5. “Moving forward, it’s so quick it hardly leaves time for our companies to get back the money they invested in all those developments.” In the march for cleaner engines, bigger companies are also advantaged, especially

those who build their own engines, since they can control the timeline for delivery. Companies not building their own engines are disadvantaged, and especially smaller ones, who are the last in the chain, says Schmid, since they receive a lower priority from engine manufacturers. But while it has been a hard time, all companies have managed to meet the requirements, Schmid is careful to emphasis.

into - they need a certain size of market.” Recently MAN Truck and Bus Middle East highlighted the importance of using official spare parts on its trucks, as well as the benefits that regular service can bring, with three MAN TGA 33.480 BBS WW trucks, belonging to Saif Bin Darwish Civil Engineering Contractors, passing 1 million kilometres after five years’ service, with no history of any major repairs or overhauls. “The result also reflects our core message of being ‘consistently efficient’, with our world class, technologically innovative products,” said Rudolf Wiegand, vice president after sales Middle East and Africa, MAN Truck & Bus. “Our goal is the continuous reduction of vehicle operating costs. We offer consultation about how to further decrease the operating costs and down times of vehicles. Success criteria such as reliability, ease of maintenance, value stability and fuel efficiency contribute to the consistent efficiency of MAN vehicles.” While there are several industry giants in Germany

“I see more opportunity for acquisitions

or consolidations in China right now than in Germany.”

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DE M ON ST RA TI ON S

16-20 February 2014

DAMMAM

Dhahran International Exhibition Center, Dammam, Kingdom of Saudi Arabia Show timings: 9:30-12:00 and 16:00-22:00

The Construction Machinery Show 2014 is the largest heavy construction machinery event in the region, showcasing a wide variety of products ranging from heavy equipment to machinery, from lighting to generators as well as dealers and service providers.

action via its programme of live demonstrations and the largest ever showcase of its type in the Middle East.

The event will provide an invaluable platform for customers in the Arab world bringing together manufacturers, distributors and buyers.

In 2014, the Construction Machinery Show 2014 is teaming up with leading Saudi exhibition organiser, Dhahran International Exhibitions Center (DIEC). This yearâ&#x20AC;&#x2122;s show will run in conjunction with the popular BUILDEX event, now in its 16th year.

The Construction Machinery Show 2014 is also the only event in the region where buyers can see a huge range of equipment in

Both events will attract worldwide industry experts, investors and buyers to the largest tradeshow in the Eastern Province.

Raz Islam Publishing Director raz.islam@cpimediagroup.com Mobile: +971 50 451 8213

Michael Stansfield Commercial Director michael.stansfield@cpimediagroup.com Mobile: +971 55 150 3849

Site Visit

A living Marvel Spiderman is coming to Dubai, as the new IMG Worlds of Adventures gives the city a major boost to its tourism credentials

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s commuters drive down the Sheikh Mohammed Bin Zayed Road on the outskirts of Dubai, they’d be forgiven in thinking that aliens have finally decided to make contact with humanity. Rising above the dusty hoardings that ring the under construction residential and mix-used projects that are coming up as part of the continued expansion of the city is an odd structure that is actually the herald for one of Dubai’s most enticing tourism projects. The giant dome-shaped steel structure actually marks the completion of a key stage in the construction of the IMG Worlds of Adventure, a theme park that is owned and being developed by the Ilyas and Mustafa Galadari Group, the sibling owned off-shoot of the Galadari Group. “IMG Worlds of Adventure is essentially a themed indoor entertainment facility, aka, a theme park,” says Adam Alexander Page, VP – Marketing, for the Ilyas and Mustafa Galadari Group. “The park comprises of four different zones, with the largest zone being Disney’s Marvel brand, which is 32,516m2. The second largest element is the Lost Valley, which is 25,083m2. The third largest is the Cartoon Network Zone, which is 21,367m2. The last zone is the IMG Boulevard, which is 18,580m2.” Covering a total of 139,354m2, the IMG Worlds of Adventure is a huge development that aims to attract the millions of tourists that pass through Dubai every year.

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Site Visit

Spiderman to climb Dubai’s twisting tower The French ‘spiderman’, Alain Robert, is planning to climb the twisting Cayan Tower before the end of the year, the group’s chairman, Ahmed Alhatti, has announced. Robert is famous for having climbed many of the tallest buildings in the world, often illegally, scaling the outside without using safety equipment. Major climbs include the Petronas Towers in Malaysia, the Sydney Opera House, and the Eiffel Tower. In 2011 he scaled the Burj Khalifa, though with a partial use of a safety harness according to official requirements.

Alhatti announced that the Cayan Tower, which opened in June this year, will receive the French spiderman’s technical team to investigate the safety and feasibility of a climb, which is expected to be carried out before the end of the year. Cayan Group built the tower in Dubai at a cost of $272 million (AED: 1bn), renamed ‘Cayan Tower’ from Infinity at its opening, and has also announced plans for a two new development in Riyadh at a cost of $160m (SAR:600m), though Alhatti said that

further details of the projects would not be announced before the end of the year. “Despite Cayan amazingly managing to attract world’s sight and attention, especially among those interested in real estate development and specialised professional on this industry as well as different segments of public audiences, the Spiderman’s team were attracted otherwise,” he said. “They saw a great opportunity and special difficulty appealing them

toward Dubai City, and Cayan Tower, due to its state-of-art engineering construction and lean swerve creation that presents a real challe “The one billion Dirham cost tower comprises of 75-story, stands 310m tall, while its concrete structure rotates 1.2 degree as it ascends around its core and top of the tower is offset 90 degrees from the base. This creation stands by Dubai Marina in a lean architecture form; not mechanically or by any other means, – obviously it is an architectural creativity.”

“With the infrastructure we’re building around City of Arabia. It’s an upcoming area, it’s a very unique proposition.”

“There are no theme parks in Dubai, so that in itself makes this a massively demanded entity,” Page says. “With the infrastructure we’re building around City of Arabia, you’re talking about a location that’s 25 minutes from the airport that is 15 minutes from Dubai Marina, 10 minutes from Dubai Mall, and surrounded by (projects like) The Villa, Falcon City, Arabian Ranches, Al Barawi and the heart of Dubailand. It’s an upcoming area, so for us it’s a very unique proposition to be in,” he says during a tour of the park site.

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“We’ve now signed up some of the best intellectual properties that can be done for this sort of arena. We have Cartoon Network’s first theme park property, Marvel, who have done it before in other Disney areas, the Lost Valley, with is our own intellectual property, and IMG Boulevard, which is the entertainment neutral zone that separates the different zones out and is also somewhere where people can relax and have a sort of neutral experience in a vibrant setting,” Alexander explains. Each zone will have its own elements and attractions, he adds, with rides for both young kids and whole families. These will include roller coasters or ‘dark rides’, which are enclosed rides. Meanwhile, inside each zone will be retail and beverage outlets, along with the rides and attractions. “The reason we’re calling it Worlds of Adventure, is because we almost have four different parks in one, with the concept being that we can give guests circulation of all the zones in one visit,” says Page. With a scheduled opening date in 2014, there remains a lot of work to be done, he concedes. However, Page remains confident that the schedule would be kept, and that all the park’s elements will open as one. “There will not be a Phase I, Phase II or Phase III opening. All the rides, attractions, food and beverage outlets, all of them will open when the doors open,” he insists. “The space frame is due to be finished, it covers the entire roofing structure of the park. It is scheduled to be finished within the next eight to ten weeks and that is obviously a huge movement forward. What’s interesting is that the content for the park is also being manufactured off site,” Page explains. “There is a huge amount of work happening on a global scale, we’re dealing with specialist suppliers,

ride makers, vendors and so on, with different parts being done,” adds Page.“The intention is that they will be brought in by the end of this year, for a full installation in the park.” With this in mind, Page says that that the owners were mindful to work with some of the best people in the theme park industry, so as to ensure that IMG Worlds of Adventure measures up to any rival park in the world. “We have some of the leading people in the industry working for our group, to make sure that the processes and the timelines on those elements are followed,” he explains. “Obviously health and safety are our priority, so we need to make sure that everything is done to the best ability possible. The process of working with the IPs is a very close one.” “We have a very fluid transparency with them, our design agency, who helped design the park, hand in hand with Ilyas and Mustafa, and obviously our architects as well, report and work with us and the IPs themselves,” he asserts. With that in mind, the American creative services firm, Falcon’s Treehouse, was brought in to be design partners for the park. As such, they’ve worked with both the Ilyas and Mustafa Galadari Group and the other intellectual property owners, to pick and choose what goes into the park. “The vision and direction obviously comes from Ilyas and Mustafa. What we have here, and I can’t

disclose too much, but we have an amazing mix of rides and attractions, even within each zone, and that makes me very confident that when the park opens, it will sell itself, because it really is a great offering to the public,” Page says. So confident are the developers that they’ve already allocated space for the future expansion of the park, he adds. “The theme park has obviously been designed with future plans in mind, in terms of expansion zones within the park, so there will be areas that can expand in the future, each zone, each area.” “The theme park and the development are also phased to grow and expand as time goes on. However, the first part of the puzzle to reinvigorate the development is the theme park,” Page asserts as the tour of draws to a close. “I personally think from a travel and trade perspective, with the amount that’s on offer in this area alone, with the housing developments, with the Autodrome, with the up and coming developments, it’s a very key development.”

“We have an amazing mix of rides and

attractions and that makes me confident that it will sell itself.” September 2013

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The choice of MH professionals worldwide

Product Focus

Raw power EVERYTHING YOU NEED TO KNOW. page 42

THE OLD TO THE NEW

The D7 Caterpillar crawler pipelayer that sold for $8,000 in July this year.

page 38

TOP TEN WAYS TO GREEN YOUR FLEET

page 48

RECORD BREAKER

Zoomlion launchs the largest 5 axle truck crane in the world.

page 34

DOOSAN 6T

Doosan has launched two 6t excavators, the new DX62R-3 reduced tail swing (RTS) and DX63-3.

CMME reviews the best and easiest ways to clean up your operation’s act.

page 41 OIL AND GAS O&G projects are of national importance in the GCCOL so are their kit.

page 50 NEXT GENERATION

A look at the building Volvo’s next generation of FH trucks.

September 2013

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New Products

6t compacts beyond convention Why get it? Increased durability Improved performance

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September 2013

oosan has launched two new generation 6 tonne compact excavators, the new DX62R-3 reduced tail swing (RTS) and DX63-3 conventional tail swing models. Designed as replacements for the existing DX60R and DX55E machines, the new models incorporate advances in many areas to maximise performance, versatility, operator comfort, durability, ease of maintenance and serviceability with minimum impact on human health and the environment. One of the stand-out features on the new 6 tonne excavators is the dramatic increase in hydraulic performance, which has been boosted with an impressive 33% increase in maximum flow rate to 132 l/min. In addition, the hydraulic system now incorporates a load sensing system which guarantees high hydraulic performance and allows smooth and efficient combined operations. Twoway auxiliary hydraulic flow is also available for the primary auxiliary circuit for operating high flow attachments. This is complemented by a significant increase in the digging forces - the bucket digging force is now 4.4 tonne, 7% above the previous models and the

arm digging force is 10% higher at 2.9 tonne. This is combined with a longer arm for a better overall working range. The traction force has also been increased by 5% to 5.6 tonne and travel speeds have been increased in both the low range (2.6 km/h) and the high range (4.7 km/h). Hydraulic flow control is enabled via roller software for control of auxiliary hydraulic flow (Aux1/Aux2), boom swing (offset) and tilting operations. In addition, auto down shift and dozer float levelling functions are all now available on the new models. Safety features as standard include lock valves on the arm and the boom cylinders and an overload warning device. Other standard features include an electric refuelling pump and a defroster for the windshield. SPECIFICATIONS: • Buckets: 0.069-0.175 m3 • Operating weight: 6.25t • Digging depth: 3815mm • Digging reach: 6230mm • Digging force over bucket (ISO): 4.4t

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New Products

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September 2013

Hydraulic breakers and drifters from Montabert Why get Them? Easy access for maintenance Low torque on drifters Also appearing at Bauma Africa is the Montabert range of hydraulic equipment, will be the company’s world famous range of hydraulic breakers and hydraulic drifters for drilling applications. The focus will be on the Silver Clip range of light hydraulic breakers for carriers ranging from 700 kg to 7 tonne. Demonstrating the easy to use, high performance and reduced maintenance design of the Silver Clip range, the SC36 hydraulic breaker on the stand is intended for use on carriers with weights from 4 to 10 tonne. The SC36 breaker has a frequency of 1550 blows/min and an oil flow of 55 to 100 l/min. Designed for trenching, concrete demolition and general excavation work, an important feature of the Silver Clip range is the cylindrical design of the breakers, which provides easy access to internal and external components, whilst preventing overheating to ensure high productivity and uptime. The breakers also incorporate a very effective soundproofing system, whereby the striking assembly is held top and bottom by suspension systems that are not in contact with

the outer cylindrical housing. In addition, Silver Clip breakers present a completely new internal design with fewer moving parts and no tie rods. As a result, the breakers can be completely disassembled in less than five minutes, without the need for special tooling, reducing maintenance costs even further. Another novel feature of the Silver Clip range is the patented treated steel ring system, the ‘Clip’, which retains the bushing of the tool and protects the greasing system. This ring is very easily removed with a multi-purpose tool supplied with the breaker, to release the sliding bushing and the tool instantly. Montabert hydraulic rock drills or drifters combine a percussive system and a rotative

system to drill holes into rock. The percussive system strikes the drill steel at 2000 to 5000 strikes per minute. Simultaneously, the drifter provides a rotation from 100 to 400 rounds per minute. With these two movements combined to provide low torque, high RPM and high frequency, Montabert drifters are able to efficiently drill holes into rock. Specifications (HC 109 drifter): • Weight: 142kg • Overall length: 1095 • Optimum minimum hole diameter: 64mm • Optimum maximum hole diameter: 102mm

TAdano launches largest ever Rough terrain crane

Tadano has launched what it says is the largest rough terrain crane (RTC) in the world, with a 145 tonne max lift and a 61 metre boom. The crane is built over a 3-axle carrier, similar in width and height to Tadano’s smaller GR-1000XL-2.

Globally two versions are being launched, the GR1450EX-2 for markets that include the Middle East, where Tadano cranes are especially popular in the oil and gas sector, as well as with rental companies and for infrastructure projects; and the GR-1600XL-2 for North and South America. “Our customers require mobile cranes that have larger lifting capacities and longer boom length,” said the company. Loads being lifted on jobsites are becoming larger gradually due to continuous growth of scale for both the energy sector and mining sites. “With these jobsites in mind, especially the energy sector, the need for a crane that can work smoothly while maneuvering through tight spaces is essential.” Features include a 6-section, innovativelydesigned round boom, with a single telescopic cylinder which is the longest in its class, with a maximum length of 61m, and a maximum working radius of 56.0m. Extra reach is provided by a 2-stage bi-fold lattice hydraulic tilt type jib which extends the max working

height to 78.3m and working radius to 64.9m. The GR-1450EX-2 has a maximum counterweight of 29.3 tonnes, and is powered by a Mitsubishi 6M60 engine, with max output of 200kW. The crane has an overall length of 16,190mm, and a carrier length of 10,155mm. Both the crane types are equipped with Tadano’s HELLO-NET as a standard feature, allowing customers monitor their crane activity, work history, machine position data, and maintenance information through computer and mobile devices, as well as offering advanced customer support with the system. Specifications (HC 109 drifter): • Boom sections: 6-section • Working radius: 56m • Jib extension reach: 78m • Power: 200kW Mitsubishi 6M60 • Overall length: 16m • Carrier length: 10m

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

September 2013

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MIDDLE EAST

Ten Tips

Time to downsize

Maximise efficiency

Matching duty requirements of staff to the smallest possible vehicle for the task is a critical component of a Green Fleets program. Smaller vehicles should be substituted for larger vehicles by phasing them in as new vehicles are purchased or by selling larger vehicles.

A simple but important step that any company can take to improve the efficiency of its fleet is to ensure that regular maintenance is performed on its vehicles. Oil should be changed regularly and tires should be kept at the correct pressure at all times.

Top 10

Efficient bid specifications

Including a minimum fuel efficiency standard for each vehicle class in procurement specifications results in only the most fuelefficient vehicles being purchased. Specifications can also be written so that the smallest and most efficient vehicle in its class is purchased. If life-cycle costing is used, the cost of fuel should be weighted heavily so that fuel savings accrued over the life of the vehicle are sufficiently taken into account.

Ways to green your fleet

CMME reviews the best and easiest ways to clean up your fleetâ&#x20AC;&#x2122;s act

Enter the digital age Software especially designed to optimise fleet vehicle routes can also be used to achieve large reductions in fuel use and emissions. Route optimisation for solid waste trucks in Toronto, Ontario is saving 140,000gal of fuel and reducing CO2 emissions by 1,500t per year.

Optimise vehicle use The manner in which fleet vehicles are used for travel in your area is a key determinant of the fleetâ&#x20AC;&#x2122;s overall efficiency. Most importantly, schedule travel efficiently so that multiple tasks can be accomplished with one trip. With proper planning, staff should also be able to share vehicles for all or part of a trip. 38

CONSTRUCTION

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September 2013

Consider engine options Vehicles with electric drivetrains will likely replace internal combustion engine vehicles in the future. Electric vehicles (EVs) powered by batteries and gasoline-powered generators (hybrids) are already available.

Cut the excess In many cases companies have more vehicles than they need in their fleets. By analysing the operational needs of your fleet, and eliminating excess vehicles, non-critical trips will be discouraged and alternative forms of travel encouraged.

OUT OF TH E GREENH Thr O

USE

ough effe ctive imp improve y lementat ion, you c our fuel an not on economy, emissions but also ly and boos decrease t on-road GHG safety.

Alternate to alternative fuel

After â&#x20AC;&#x2DC;right-sizingâ&#x20AC;&#x2122; your fleet, larger vehicles will still be needed for many tasks. Because fuel efficiency gains are more difficult with mediumand heavy-duty vehicles, they are good candidates for the use of alternative fuels.

Call the operator Vehicles need to be operated in the correct manner as well. Employees should receive driver training and be awarded incentives for driving efficiently. Finally, establishing a policy against idling vehicles is a key component of a Green Fleets programme.

Educate your drivers

Safe, efficient driving must be a top priority in order for a green fleet programme to be truly successful. This means taking steps to help drivers understand how improvements in their driving can lead to reductions in fuel usage and crashes.

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

September 2013

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Special Feature

Piping hot Whether upstream or downstream, pipelines projects are of critical and national significance in the Middle East, and for contractors looking to buy pipelaying equipment there are plenty of options whether buying new or used, writes Stian Overdahl

CONSTRuCTION CONSTRUC

MIddlE EAST MIDDLE

September 2013

n recent years the Gulf has seen a number of major pipeline projects, including in the United Arab Emirates, Oman, and Saudi Arabia, and wider afield there are major pipeline projects in Iraq. Nevertheless it is market dominated by large projects, and completion of a project can spell idle time for machines. It all adds up to an interesting market dynamic, with sellers of new machines offering improved reliability or even entirely different functionality, while the market for used machines remains buoyant. At the pipe-laying end of a job site’s work flow, crawler tractor side booms have long been the dominant piece of equipment used. Mounted on a crawler tractor type undercarriage, these feature a sideboom and counterweights, with the boom operating on a single axis of movement. Caterpillar is the most sought after marque in this segment, along with Komatsu, and there are also offerings from Liebherr. More recently Chinese manufacturers, including Shantui and LiuGong, entered the market in the Middle East. Activity at auction sites in the UAE suggests a busy second hand market too, including a sale at Ritchie Brothers in Dubai in December last year with 62 sideboom PLs, as a single company disposed of its entire fleet. Ages range to 30-40 years, or beyond, and Caterpillar machines, followed by Komatsu, dominate the sales lists. Marco Jannuzzi, pipeline manager for Caterpillar, and Caterpillar’s representative on the Board of Directors IPLOCA (International Pipe Line and Offshore Contractors Association), says there are multiple reasons why so many Cat PLs change hands in the used market. “First of all, the population of Caterpillar pipelayers is by far the largest compared to any other

manufacturer, therefore it is logical that you see more Cat than other brands. Secondly, the durability of Cat pipelayers is truly outstanding. “Clearly, during such long useful lives, these machines change owners many times, probably six or seven times, and often this operation is handled through auction houses. However, as many Cat pipelayers as you may see at auction houses, the vast majority of these machines are actually at work on projects and jobsites!” On the question of aftermarket service and support, Jannuzzi says that Caterpillar dealers are well equipped to support the pipeline industry. “Caterpillar stocks spare parts for ten years after a model has been discontinued. For older Cat pipelayers, our specialised, global pipeline dealer, PipeLine Machinery Inc. can provide older spare parts out of their inventory, or as made per order.” With project duration generally between six-18 months, machines will often seen intensive use, followed by a period of idle time as contractors wait for the next job. This time is often used for scheduled regular or preventive maintenance and service, he says. “For pipeline projects in particular, which are generally in remote areas, machine up-time is critical to avoid catastrophic delays and costs. It is therefore not by chance that the vast majority of contractors

“When the pipeline contracts go quiet

many operators keep their machines lying, waiting for the next up-swing in the market.” September 2013

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Mobile cranes on-site Before the piping is laid, the pipes sections have to be handled, including stacking, bending and welding, itself a mini-project. There are various options here for contractors, including use of a mobile crane, generally a crawler crane with its pick-and-carry functionality. Sennebogen has seen good levels of activity in oil and gas projects, especially pipelines, says Andreas Geier, head of sales of their crane line for the Middle and Near East, Northern Africa and Benelux. “For the future we do not see a big rise in pipeline projects, but we are sure that the level will stay

This 1949 D7 Caterpillar crawler pipelayer sold for $8,000 in July this year at a Ritchie Bros auction in Dubai, with a 1946 D7 pipelayer selling at the same auction for $5,500, proof that there’s always good money to be had for a Caterpillar pipelayer, no matter how old.

minimum the same or increase softly.” When selecting a mobile crane for support activities, which can include laying of pipes in hard-to-reach areas such as crossovers, by utilising the crane’s long workingradius, Geier says that one of the biggest selection criteria is for a machine which has a fast set-up (erection) time, as well as the maximum pick and carry option, noting that on the Sennebogen telescopic crawler cranes they have 90% lifting capacity of the static load chart. With set up time a focus for contractors, more are looking to advantages of telescoping crawler cranes, which do not require the

prefer Cat pipelayers which have the best reliability and the most effective dealer network.” On the resale value of used machines, Keith Lupton, VP of regional sales at World Wide Auctioneers (WWA), says that even on older machines prices hold up well. Vivid examples are a 1949 D7 Caterpillar crawler pipelayer which sold for $8,000 in July this year at a Ritchie Bros auction in Dubai, and a 1946 D7 pipelayer selling at the same auction for $5,500. “When the pipeline contracts go quiet many operators keep their machines lying waiting for the next up swing in the market, and the older machines are still doing the business. Larger units, despite their age are doing big dollars,” says Lupton. Despite the age of machines, many side booms will not rack up large hours, compared with standard earth-moving equipment, as they are moving only alongside the pipe trench, which is not a high wear and tear action. When apprising used machines, undercarriage condition and draw works condition are paramount in the buyers’ mind, says Lupton, as well as looking for good clutches, as the pads usually have a long life. Also available for contractors is the option of

“We feel and we are 100% sure that we will significantly increase the population in the Middle East with this machine.” Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

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September 2013

rigging time of a lattice boom crawler, have a smaller transport volume, and are more flexible. This is against the advantages of a lattice boom crawler, namely a great working radius and lifting height, and a greater lifting capacity. Some telescopic crawler cranes can also extend their boom while under load – Geier notes that their cranes are able to do so, while those of other key competitors cannot. “Because we have two hydraulic cylinders in the boom, this allows it to extend and retract under load without limits. “Electronic driven booms have only one cylinder which has to stop several

times in between for fixation.” Geier anticipates that use of telescopic crawlers will increase at the expense of lattice booms. “The first step is done and many customers are now recognizing the benefits of telescopic crawler. But, still there is a lot of work to do for us as a manufacturer to convince more and more end-users.” Schmitt says that users of the Volvo CE excavator pipelayers are also making good use of the equipment for the pipe handling work, using the upper structure swing, and in this respect contractors buying a pipelayer may not have to invest in a mobile crane.

converting a standard crawler tractor into a sideboom pipe layer with a retrofitted kit. The best known provider is Midwestern, which introduced the world’s first hydraulically operated sideboom pipelayer attachment in 1953, and since then has provided thousands of pipe layer attachments. The sidebooms fit on Caterpillar, John Deere, Case, and Komatsu tractors, with lifting capacity from 4 to 104 metric tons. In the UAE, Global Pipeline Supplies, based in Jebel Ali, has operated a pipelayer conversion programme since 2005, with more than 50 Caterpillar crawler tractors (D7G, D8K and D9H) converted into fully hydraulic drive pipe-layers using Midwestern kits. Machines are prepared (bare tractor rebuilt works and hydraulic kit installation) in the company’s workshop, and tested by a third party institute to verify compliance with the requirements of applicable international standards for side-boom tractors. According to the company, converted pipe-layers provide equivalent lifting capacities to the same classes of Caterpillar factory made units. Lupton notes that from a used machinery perspective, there is a price premium on original machine built as side boom by Cat, “as the stress is designed for side operation, whereas a D8 dozer frame design is designed for stress traveling front to rear of the frame”. Commenting generally on used Cat sideboom machines, Jannuzzi says that the company does not condone ad hoc modifications: “In some cases, there have been contractors or local workshops who have

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September 2013

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converted old bulldozers into pipelayers, and we have seen this type of machines for sale at auction houses or equipment brokers. “Caterpillar does not encourage nor recommends this practice, because a machine modified from its original design will not perform as an original one, in terms of work capability, performance and most importantly safety. This practice is also reflected in the lower value that converted or modified machines can obtain at auctions.” Meanwhile, challenging the dominant orthodoxy of the crawler tractor sideboom is Volvo Construction Equipment’s range of pipelayers, which are based on an excavator undercarriage, and offer 360 rotation for the boom. First rolled out in North America and then globally, the machines are used in markets as diverse as Papua New Guinea, Sweden and the UAE. The machines feature a number of innovative design features that Frank Schmitt, pipeline business development manager, international region at Volvo CE, says significantly improve contractor work practices, both in terms of efficiency and safety. Notably the upper structure swing is put to good use when traversing hilly terrain while carrying a pipe length. Swinging the boom to the front of the machine while carrying a pipe allows the centre of gravity of the machien to be balanced, compared to side booms which have a single axis of boom movement, and one which, while on a slope, the pipe will swing away, or down, from the centre of the machine. The design allows the Volvo machines to work on grades of up to 35O, and they have the highest tipping capacity for the segment in each of their respective size classes. Performance features include elevating cabins (a favourite with operators),

as well as a factory fitted load management system, which uses in-built sensors with a simple greenamber-red ‘traffic light’ warning system, visible from both an LCD screen within the cab, and from outside the machine with lights place on the boom. This means that adjacent machine operators on the line can take more of the load if one machine goes to red. The biggest significance however is to the laying in, where the foreman and linesman can watch the boom lights, and direct the action based on where he sees any difficulty cropping up in terms of balancing the load along the line. Another advantage of the machine says Schmitt is faster set up time, especially important when there is a site with a lot of crossings, where machines have to be disassembled, transported and then reassembled. The machine itself is also able to be converted into a normal Volvo excavator in a single day’s work by two mechanics. In the Middle East the PL4608 and PL4611 pipelayer are available, 80 and 110 tonne respective capacity models. The number of projects needing machines of this size is limited, says Schmitt, though already there are units working in Oman, UAE, and Iraq. Rolled out last year elsewhere, the PL3005D will launched for the Middle East at the end of this year with a Tier 3 engine, with the model going into production in Q4. Schmitt says that customer indications are that the PL3005D will be eagerly received, with its 50 tonne rated capacity. This machine will be suitable for pipeline projects up to 36 diameter, which is quite a lot of pipelines, including oil, smaller pipelines going in or out of refineries or processing plants, as well as in countries where there are not huge resources, such as Oman.

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

CONSTRUCTION

MIDDLE EAST

September 2013

The shift to Al-Futtaim Auto and Machinery Co. (FAMCO) distributing Volvo CE in Saudi Arabia, with an emphasis on widening the support network and increased levels of service, opens the market there, and Schmitt expects that they will see greater activity in the Kingdom. “After the reorganisation we feel absolutely at the right level now to secure the aftermarket support for these pipelaying contractors.” The efforts will kick off by showing Volvo CE pipelayer concept at the SAOGE (Saudi Arabia Oil and Gas Exhibition) taking place this year in Dharan, in Eastern Province, along with FAMCO, which will include live demonstrations modeled on the show at Bauma earlier this year, and the new PL3005D. “We feel and we are 100% sure that we will significantly increase the population in the Middle East with this machine.” Globally pipeline diameters have been rising, and Lupton says that in the second hand market, for a long time the main swing has been away from ‘D6’ and ‘D 7’ size units for the ‘D9’ size to cope with the larger diameter pipes. “This over the years has been the major change certainly in the second hand market. At one time D9 size were most difficult to sell once a job had finished, now it is the other way around.” Last year Caterpillar updated its PL range, launching the new PL83 and PL87 models, with respective lift capacities of 72.5 and 97t, in addition to its smaller 18.1t model, the PL61. Jannuzzi says that the upgrades were very well accepted by contractors, simply because the improvements introduced with these new models were coming directly from customer suggestions and comments. Both models were boosted to larger capacities than the previous iterations. While used machines are obviously popular, with reliability and machine up-time critical on pipeline projects, contractors continuously add new machines, he says. “Contrary to older models, new machines also meet the most stringent and updated requirements on safety, operator environment and engine emissions. In addition, they are much more fuel efficient than older models, and come equipped with high-tech devices such as Cat Product Link, which allows remote equipment management by the contractor.” Going forwards, Jannuzzi expects that tech options will play an increasingly large role in the pipelaying industry. “The big shift I see is in the application of technology, including machines which are used on pipeline projects. Product Link provides remote access to vital machine data (its exact location, plus data on key components). “The Connected Worksite technology allows electronic management of entire fleets of machines, which improves jobsite efficiency enormously and reduce contractors’ cost dramatically.”

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www.casece.com September 2013

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Pumped-up Concrete ready-mix companies are benefiting from fierce competition amongst manufacturers to improve and expand their product offerings CONSTRUCTION

MIDDLE EAST

September 2013

Dubai ready-mixers to register Dubai Municipality (DM) has announced that all ready mix concrete suppliers in operating in the Emirate need to register with the Municipality, as part of an administrative decision to monitor readymix concrete companies and on site mixing units to ensure safety and quality of work in the construction work sector. A joint team from Buildings Department and Dubai Central Laboratory

(DCL) has been formed to take care of the registration, monitoring and issuing conformity certificate for the ready-mix concrete companies and on site mixing units, said Eng. Yusuf Abdullah Al Marzooqi, Acting Director of Buildings Department at DM. Contracting companies and engineering consulting offices are being urged not to use the ready-mix concrete in any construction site unless it was supplied

n the construction machinery industry there is no sector that has gone through greater changes in the past few years than concrete equipment. Major European manufacturers were acquired by Chinese manufacturers, beginning with Cifa in 2008, acquired by Zoomlion, and then Putzmeister in 2012, acquired by Sany, and later a tie-up between Schwing-Stetter and XCMG. And there has also been consolidation on the European front, with Liebherr acquiring the concrete pump manufacturer Waitzinger, a midsized German company with strong R&D pedigree, allowing Liebherr to offer the full range. While there was a strong incentive for Chinese manufacturers to acquire valuable R&D as well as distribution networks, on a higher level the concrete equipment industry is headed towards competition between ‘full-liners’, with brands acquiring new interests, so that they are able to offer the full range, from batching plants, mixer trucks, to truck and stationary pumps. Putzmeister is a good example of this – acquiring mix truck builder Intermix, and then announcing at Bauma a strategic deal with the Italian batching plant manufacturer Simem. And for buyers, more choice can only be a good thing.

Truck pumps The concrete truck pump market is intensely

by a registered firm with Dubai Municipality along with conformity certificate or mark for the factory or the mixing unit. ‘The registered and approved companies are listed on the DM website. A manual that includes the instructions and regulations is also available online,’ said Marzooqi. ‘The standard specification of the readymix concrete has been

adopted in coordination with the DCL. A circular on this regard has been sent to all relevant parties in addition to the publication of the decision in the DM website.” ‘Companies are given time to complete the formalities for registration until 31 December 2013. The time to get the conformity certificate or mark has been extended to 31 December 2014, provided that the

competitive, but new products on the market have made the choice for customers even tougher. Putzmeister’s new range of truck pumps were built in order to comply with new European road weight regulations, which in the 56 metre boom class, saw its model, the M56-5, built over a 4-axle chassis, reduced from five. One of the biggest contributors to the finished product is the number of axles the pump is built over, and savings on the vehicle build-costs are passed to the customer without compromising pump performance. Putzmeister’s new models are available in the key segments, including 36m, 42m, and the 56m. Overall the models have been simplified for their serviceability. On the 42m pump the number of types of arches or elbows has been reduced to only three, from seven, and the machine has been redesigned with a preference for bolts over welds. Furthermore the amount of hydraulic fluid was reduced by 300 litres from the previous generation model. Saudi Arabia is the most important market for concrete pumps, and market share is hotly contested by international manufacturers and their dealers. Represented by distributor Saudi Diesel, the Korean manufacturer Everdigm makes a range of pumps, including its 43CX-5, contesting the all-important 42m segment. The 5-section boom has a vertical

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Hyundai is focussed on the light range in the UAE; Cifa’s Carbotech feature carbon fibre booms; and Putzmeister used this year’s Bauma show to announce a strategic deal with Italy’s batching plant specialist Simem.

reach of 42.1m, and horizontal reach of 38.1m, with a delivery pipe diameter of 125mm. The model has seen usage on many residential sites in KSA, and the service offering is key to Everdigm’s popularity. Cifa was the first major concrete equipment manufacturer to be acquired by a Chinese company, Zoomlion in 2008, but the continuation of its product development programme showed that the intent was very much to continue Cifa as a strong standalone brand. Last year it collaborated with Zoomlion on a Guinness World Record truck pump with a 101m boom, something of a novelty. Likely to be of more interest to customers are its truck pumps built with carbon fibre booms, the Carbotech range. Launched at Intermat in 2012, the 45m K45H sits on four axles (for 32t weight), and of its five-section boom, the last two are made of a lightweight carbon fibre composite designed by Cifa, while the first three sections are high strength steel. The lighter weight boom means that it is mounted on a smaller truck for its class, making it more compact and easier to set up in cramped work conditions. Its HPG 1408 –IF9 pumping unit has a maximum theoretical output of 140 m/h, and maximum pressure of 80 bar. Operation and safety is improved by the patented K-TRONIC electronic unit, which controls stability, and alerts the operator and prevents any incorrect set-up or configurations. Cifa’s Carbotech range includes the 3-axle K39H, the 62m-boom K62H, and the range topping K80H, which sits on seven axles.

Mixer trucks Customers are increasingly price conscious on concrete mixer trucks, and well they can be given the available range of vehicles from diverse suppliers. Ready mix companies are virtually spoilt with choice, whether buying chassis from premium sellers such as Daimler or MAN, mid-range truck brands, or the new entrants in the market. And while mixer trucks have increasingly become seen as commodity goods in the concrete industry, in the critical application

“The industry is headed towards competition between ‘full-liners’, with brands able to offer the full range.” CONSTRUCTION

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September 2013

of a pumping job reliability remains all-important, which gives an edge to the established players in the market of drum manufacturing. In the Middle East, key features of a successful transit mixer are large size and an ample water reservoir, since in many markets there are no onroad weight restrictions. Putzmeister debuted its new Intermix truck the IMI 12.1 at Bauma this year, which features an optimised geometry drum built with high quality steel from Thyssen-Krupp, including thicker plating in crucial areas, providing protection against wear and tear in harsh conditions, and ensuring a longer service life. The IMI 12.1, the largest in its range, has a nominal filling of 12m3, a water line of 13.55m3, and a geometric volume of 20.11m3, and its availability is a ‘concrete’ example of the benefits of industry consolidation for buyers.

Batching plants Batching plants are a serious capital expenditure item, but smaller mobile plants are increasingly finding favour with buyers, as demand for concrete rises incrementally. Cifa has recently released a new mobile batching plant, transportable on wheels, fitted with a 1m3 per cycle Cifa mixer, which guarantees an hourly production rate of 50m3 of ready-mixed concrete. Another feature is its mixer washing system that washes the mixer after each production cycle, using the water already batched into the concrete composition recipe. This leads to considerable water savings on the site. In Saudi Arabia, KiCE Construction Equipment produces concrete batching plants for sale in the domestic market and the GCC, as well as distributing Snowkey concrete cooling machines. KiCE produces two types of stationary batching plants, the first which has a dry batch capacity of 50 to 140 m3/h, and a wet batch capacity of 50 to 240 m3/h, as well as mobile batching plant. The company has recently expanded its factory in the Eastern Province to scale-up production, and speaking at a recent event, company CEO, Engineer Saleh bin Abdulrahman AlKatheir, said that demand for its mobile batching plants had quadrupled in the previous years, reflecting improved product engineering. In 2013, the company hopes to increase its sales of batching plants by 15%, mobile batching plants by 25% and washing plants by 25%.

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Spawning the next generation

Volvo says it turned to the human body for inspiration for its new FH truck. CMME looks at the production process behind delivering the state-of-the-art vehicle.

CONSTRuCTION CONSTRUC

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September 2013 2013

Volvo set to be world’s biggest The European Commission approved a tie-up between Sweden’s Volvo Trucks and China’s Dongfeng Motor early this summer paving the way for the creation of the the world’s biggest truck maker.

In a statement to the media, Kina Wileke, press officer of AB Volvo, said the total sales amount of AB Volvo’s and Dongfeng’s heavy trucks and medium-duty trucks reached 400,000 in year 2011.

The $900 million deal sees Volvo Trucks acquire a 45% stake in the Dongfeng Commercial Vehicles (DFCV) unit as well as joint control with Chinese owner Dongfeng Motor.

“This is a very exciting venture that will combine the best of two worlds, strengthening the positions of the Volvo Group and Dongfeng and offering excellent opportunities to both parties,” commented Volvo’s president and CEO Olof Persson.

Volvo which is currently the third rank truck maker in world after Dongfeng and current leader Daimler will soon share top-spot with its Chinese partner. The European Commission green light follows the initial announcement of the deal at the turn of the year.

“Combining Dongfeng’s strong domestic position and know-how with the Volvo Group’s technological expertise and global presence will offer DFCV excellent potential for growth and profitability in and outside China,” adde the CEO. For the Volvo plants in Sweden, Russia and Belgium the focus was on developing the product in cooperation with the engineers. In parallel they also produced the documentation for everything that needs to be updated in the plants.

he spring in Europe saw the first of the series-produced new Volvo FH trucks roll out of the factory gates for delivery to customers throughout Europe. But just how is an ultra-modern truck built? How do advanced electronics and other hardware turn into a single smoothly functioning entity and how can top quality be guaranteed? The new Volvo FH has been dubbed a "nextgeneration truck". Jonas Nordqvist, product feature and profitability manager in the strategic planning department at Volvo Trucks, talks about what this actually means. "One might say that an ultra-modern truck must meet all the conditions of a complex equation. It must satisfy both customer requirements and society's demands and succeed in combining modern technology with properties such as quality, driver comfort, environmental efficiency and safety," explains Jonas Nordqvist. Work on the development of a modern truck starts long before production is even relevant. The hunt for the highest possible quality characterises every aspect of the process from start to finish. Careful analysis of customers, society and the competition indicates which demands a new truck model will have to meet. The market is also scanned to identify which technological innovations can be integrated into the new product. This data then forms the basis for a detailed requirement specification that governs how a modern truck should be built. Once the requirement specification has been set, it is time for the next challenge: to transform ideas into reality. In order to succeed here it is necessary to implement a cross-functional working method where everyone, from design through construction to production - works together from day one. "One of the most important parameters in the development of an entirely new truck is that it should actually be able to be built. That may sound rather obvious but it is vital that the production process is ergonomic, efficient and repeatable. Ultimately it's all about being able to guarantee a high-quality product," says Jonas Nordqvist. The fact that series production of the new Volvo FH is in full swing, and the fact that the first trucks are now on their way to their customers, therefore marks not just the start of something new. It also marks the end of a long development journey. For the European Volvo plants in Sweden, Russia and Belgium the focus was on developing the new

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product in cooperation with the engineers. In parallel they also produced the documentation for everything that needs to be updated in the plants, as regards both new tooling and new skills. "This is an entirely new cab, an entirely new truck. There isn't a single body component that is carried over from the previous model and this imposes demands both on our personnel and on our equipment since the latter is often productspecific," relates Hans Elmqvist, project manager for overall production of the new Volvo FH at all the company's European plants. An ultra-modern truck requires ultra-modern production tools. One important investment here is in the new presses, which are used in the production of all the cab parts. "One thing that is unique in the new Volvo FH is that we press many parts in five steps. The focus here is on geometry assurance – the more times a component is pressed, the better the various parts fit together, thus improving cab assembly," explains Hans Elmqvist. Another major investment was the purchase of 56 new robots, all of which help improvement production efficiency. Automation also guarantees that each and every truck offers the same high level of quality. One example of this is that all the glass in the truck is now bonded into place. There are two benefits to this: the cab is safer since the windows form part of the cab's structure, and the production process is more efficient and quality-assured than before. Another important role for the plants was to participate in the development of the new truck.

“we go through the entire truck to

guarantee that everything works exactly like it should.” Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

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In order to do this without disrupting ongoing production, pilot plants were established in Volvo's two Swedish factories in Tuve and Umeå. These can be described as miniature replicas of the production plants' full-scale assembly operations. There the new tools could be tested and method trucks could be built. The aim there was largely to transform theory into practice, to determine the best assembly process and to find out whether it was even possible to build the truck in the sequence and with the tools that the engineers had in mind. "Just like the human body's blood circulation system, we go through the entire truck to guarantee that everything works exactly like it should. Advance test production in the pilot plant is an important part of this quality control process," he continues. The pilot plants also served as a basis for enhancing the competence of the assembly personnel at both local and global level. Over the past few years, key operators from all over the world have worked side by side with truck builders in the pilot plants to learn how the new truck is to be put together. When the time came to move the assembly process to the regular production line in the Swedish plants, the key operators were able to teach their colleagues what to do. The benefits will be the same globally. "We're prepared down to the tiniest detail, largely because this is such a complex truck, but one result is that it will be much quicker to roll out a qualityassured production process in the other plants too. The new Volvo FH is tailored for the whole world," says Elmqvist.

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MIDDLE EAS