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contents
contents COVER STORY
14 / LAUNCHES SPECIAL
Launch special with the new Actros and Arocs in UAE.
also this issue … NETWORK
06 / MAN’S NEW STRATEgY
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MAN unveils award-winning CustomerFirst strategy for the region. LAUNCHES
12 / gRANd ExPEdITION New Expedition and Yaris head the list of this month’s launches. LAUNCH SPECIAL
18 / SAfE ANd SOUNd Volvo Trucks and FAMCO launch special edition FH to showcase the best safety technology in UAE. fEATURE
22 / IN THE dRIVINg SEAT What the lifting of the ban of women drivers means for the automotive sector in Saudi Arabia. MARKET REVIEW
26 / CONSTRUCTION REVIEW MACE looks at a potential revival in the region’s construction industry. COMMENT
36 / ELECTRIC SHOCK Schneider Electric’s Federic Abbal on the potential of electric vehicles for utilities operations. EVENT PREVIEW
38 / THE PRE-AfTER-SHOW Preview of the upcoming Automechanika Dubai 2018 aftermarket event.
APRIL 2018 TRUCK&FLEET ME 01
WELCOME
GROUP MANAGING DIRECtOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5483 EDItORIAL DIRECtOR VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5472 EDItORIAL EDItOR StEpHEN wHItE stephen.white@cpitrademedia.com +44 7541 244 377
Onwards and upwards tOgether There have been many comedians – mostly male, granted – that have made long careers out of bemoaning the skills of women drivers. But let’s get one thing out of the way I won’t be joining them this month. In fact, I can truthfully write that many of the best drivers I have known have been female. I don’t just mean ‘best’ by that they will get you from point A to point B safely and securely, I also mean that when the opportunity allows and in the right circumstances they can be as technically assured as any male driver I know. Changes like this are meant to break-down misconceptions and bring equality. Shame then that when they take to the roads, as they are expected to do later this year, they will be asked to pay more for insurance to do so. While this is being justified as a reflection of the lack of real data on women drivers in Saudi – and insurance companies by their very nature will always opt for a more conservative estimate – let’s hope this is not a case of opportunistic profiteering. After all there is a real opportunity for the automotive sector here. As long as it approaches it the right way. There has been a rash of notices and reports honing in on the upcoming change in law recently particulary as March hosted this year’s International Women’s Day. It was fantastic to hear the optimism and good feeling that surrounds this profound social development in Saudi Arabia. Not only is this a positive change in terms of equality and opportunities for women in the country but it is also going to be a boon for the automotive sector (see T&FME’s coverage of PwC’s How will women change the automotive market in KSA? report on page 24) and the economy. (I thought it was also interesting to hear that DHL in the UAE is attempting to attract more women drivers by choosing a vehicle that is suited to them, suggesting that it is encouraging a re-think of gender driving politics beyond the KSA borders.) I hope that in the rush to make a quick buck that this generation of new female motorists are not regarded as purely an economic opportunity. With their enthusiasm and ambition, they really can make a profound and positive difference to our roads, so let’s hope their first experience of the automotive sector is a positive one.
sUb EDItOR AELRED DOYLE aelred.doyle@cpitrademedia.com ADVERtIsING sENIOR sALEs MANAGER BIpIN SONEJI bipin.soneji@cpitrademedia.com +971 4 433 2856 DEsIGN ARt DIRECtOR SIMON COBON simon.cobon@cpitrademedia.com PHOtOGRAPHY MAKSYM pORIECHKIN maksym.poriechkin@cpitrademedia.com MARKEtING MARKEtING MANAGER SHEENA SApSfORD sheena.sapsford@cpitrademedia.com +971 4 375 5498 CIRCULAtION & PRODUCtION DIstRIbUtION MANAGER SUNIL KUMAR sunil.kumar@cpitrademedia.com +971 4 375 5476 PRODUCtION MANAGER VIpIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 WEb DEVELOPMENt MOHAMMAD AwAIS SADIQ SIDDIQUI fINANCE ACCOUNts NAHEED HOOD naheed.hood@cpitrademedia.com +971 4 375 5474 CREDIt CONtROL ExECUtIVE CAMERON CARDOZO cameron.cardozo@cpitrademedia.com +971 4 375 5499 fOUNDER DOMINIC DE SOUSA (1959-2015) PRINtED bY AL ALEf pRINtINg pRESS LLC
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CONSTRUCTION
CyBeRSeCURITy
Construction of Dubai’s second
Educating and raising awareness of cybersecurity should be a major focus for the regional construction industry, given the emphasis and focus on BIM adoption. While it is certainly a necessary step forward for construction firms, and will lead to greater success in delivering projects, it also opens up a number of concerns. The story, ‘Gulf economies vulnerable to cyberattacks’, touched upon this, when it said that financial losses due to cyberattacks on the oil and gas industry were as much as $1 billion in 2017. If we are to move forward as a construction industry, then we need to embrace BIM, but the sharing and open-sourcing of information between project partners and stakeholders, also increases the need for strong cybersecurity, as all it will take is one slip in the chain for hackers to expose confidential data and information on projects worth billions of dollars. I hope this is something authorities are focusing on, while they implement their cyber-security strategies in the country, and I hope the construction industry follows closely.
tallest tower given start date
CONSTRUCTION
Aldar and Emaar to form $8bn historic developer JV
In Pictures: RTA issues update on Dubai Metro Route 2020
CONSTRUCTION
Amana Steel Contracting starts MAF’s first Abu Dhabi mall
CONSTRUCTION
Al Rabat completes piling and shoring on Sabah Rotana
ANALySIS
Significant airport expansion planned by 2025 in MENA
04 TRUCK&FLEET ME APRIL 2018
Video: Site Visit – 1/JBR
Name withheld by request
NETWORK
MAN WILL BRINg CUsTOMERFIRsT TO MENA sOON / KHALFEsT AND EMC-CV IN LONgTERM DEAL / MIDDLE EAsT BOOsTs FORD / RAIDs / DUBIzzLE BUys AUTO RIVALs
network DLE EAsT A FIRsT FOR THE MID e want to react Dr. Richard Brown: “W red solutions.” proactively and offer tailo
MAN plans CustomerFirst launch sTRATEgy MAN Truck & Bus Middle East says it will soon launch a new initiative that uses customer feedback to continuously monitor the performance of MAN and its distributors. Called ‘CustomerFirst’, it is the first time that a commercial vehicles manufacturer will systematically record data on customer satisfaction to improve service quality in the region. CustomerFirst has already had a positive impact in other markets for MAN leading it to be awarded at the german Excellence Awards 2018 in February in the “Products & services Customer support” category. The new programme was
announced at the annual MAN Middle East After-sales Conference which was held in Muscat, Oman in March. The event brought together importers from 14 Middle East countries as well as executives from MAN’s german headquarters and its Dubai regional office Dubai. MAN Truck & Bus Middle East’s Head of Aftersales Dr. Richard Brown said that the scheme ensures that MAN and its dealers are constantly delivering on their promises to customers over the days, months and years following the initial purchase of a vehicle. If MAN or its importers are falling short, then a solution can be found early and quickly.
“The primary message of the conference was to focus on the latest Customer Experience Concept. Customer requirements are important as we want to react proactively and offer tailored solutions to meet their needs,” remarked Dr. Richard Brown. Managing Director Franz Freiherr von Redwitz added that the programme is part of a suite of integrated aftersales solutions to ensure MAN is never too far away from a customer’s journey. “Customers are more and more empowered and are looking for integrated solutions, end-to end and not just the product itself. An integrated offering is the key for future service contracts
with every vehicle, we provide piece of mind so our customers can ‘focus on running their businesses’,” said von Redwitz. Dr. Richard Brown added it is essential to introduce the CustomerFirst programme for the first time in the Middle East. “Our focus is to be unified and offer a consistent experience across the Middle East. Through our close cooperation with regional partners, we can focus on offering products tailored for the regional requirements. The Middle East is different but unique and together with partners we need to see how to continuously innovate and customise our product offerings so we can be ready for the future.”
DEsPITE 14 FATALITIEs IN 2017, DUBAI POLICE sAys THAT sERIOUs ACCIDENTs INVOLVINg TRUCKs FELL FROM 99 TO 73 IN THE yEAR
06 TRUCK&FLEET ME APRIL 2018
NETWORK
KENTUCKy TRIED PRODUCTION Ford is using advanced manufacturing tech and an upskilled workforce to increase line speed at its Kentucky Truck Plant to build even more SUVs.
THE FIRsT ORDER The first batch of vehicle s to Khalfest included 15 6x6 trucks built for heavy loads.
KHALFEsT AgREEs LONg-TERM EMC-CV TRUCKs DEAL FLEET
First delivery part of a long-term plan to supply Mercedes-Benz and TITAN trucks Khalfan Abdullah General Contracting and Transport Est (Khalfest) and Emirates Motor Company Daimler Commercial Vehicles (EMCCV) have agreed a long-term partnership that will see the distributor supply Mercedes-Benz and TITAN trucks to the Abu Dhabi-based company. According to EMC-CV, it has delivered the first 15 6×6 trucks to Khalfest; a company it describes as, “an important and strategic customer in the off-road and oil field sector, with powerful multi-wheeled haulage vehicles designed to carry extremely heavy loads across long distances.” EMC-CV’s general manager Bilal Alribi, added: “EMC-CV has a long and productive relationship with Khalfan Abdullah General Contracting and Transport Est that spans almost two decades. We are delighted to be able to play a key role in the ongoing success of Khalfest, which helps to meet the transport needs of some of the biggest companies in the UAE.” Khalfan Abduallah Al Mazrouie, owner of Khalfest, said his company was delighted to be reigniting its successful partnership with EMC-CV. “Our long-standing relationship with EMCCV is built on the strong foundations of mutual respect and trust, with both companies providing each other with a solid platform for continued success that helps to drive the country forward.” EMC-CV is one of Mercedes-Benz most successful dealers in the region. In September 2017, it secured the UAE distribution rights for TITAN trucks, one of world’s leading manufacturers of heavy-duty and special purpose vehicles which has supplied hundreds of vehicles for operations on oil fields and mines throughout the MENA region.
FORD sTEPs UP PRODUCTION AHEAD OF MIDDLE EAsT LAUNCHEs OF sUVs MANUFACTURERs Ford has revealed that it is increasing production of two of its popular fullsize SUVs to meet “surging demand” for both all-new models ahead of their arrival in the Middle East. The Lincoln Navigator, the company’s new all-new luxury SUV flagship, and the Ford Expedition (a car it describes as the smartest, most capable and most adaptable large SUV ever) have both undergone a complete redesign, building on the reputation the nameplates have forged in the region for quality, capability and power. The company said it is using advanced manufacturing technologies and an upskilled workforce to increase line speed at its Kentucky Truck Plant to build even more Lincoln
Navigator and Ford Expedition SUVs, boosting production targets approximately 25% since last fall when the SUVs hit the market. A new $25 million investment for additional manufacturing enhancements brings Ford’s total investment at Kentucky Truck Plant to $925 million and allows the company to increase manufacturing line speed. This investment and advanced manufacturing upgrades are examples of the company’s quest to improve its operational fitness. Upgrades include 400 new robots, a new 3D printer that enables workers to make parts and tools more quickly and cheaper as well as enhanced data analytics to keep the assembly line moving as efficiently as possible.
APRIL 2018 TRUCK&FLEET ME 07
NETWORK
ROAD NETWORKs FOCUs OF KsA sPENDINg ROAD NETWORKs Saudi Arabia’s government has said that it is working on $3.89 billion worth of development projects, including a new airport and an industrial city, along with other road, water and electricity projects. The projects include the development of an airport near Souk Okaz City, an industrial city in the Makkah province, along with
others in the governorates of Taif, Mawiyyah and Meesan, which will cost a total of $2.93 billion. The road networks will cost $239.7 million, while there will also be $480 million worth of water projects, $133.3 million worth of health facilities, $373.3 million worth of electricity projects and $26.6 million invested in educational facilities, a report
in Saudi Gazette said, citing Prince Khaled Al Faisal, emir of Makkah, who was chairing the first meeting of the newly constituted local councils of the three governorates in Taif. He added that work is progressing well on toppriority projects, such as the new Taif International Airport, Okaz City, Technology Oasis, residential suburb, industrial city and university city.
EAsINg CONgEsTION A quarter of a billion dollars worth of investment into the road networks has been pledged by the government.
178,781 fake parts seized at start of 2018 COUNTERFEIT
Al-Futtaim Toyota says that eight sweep raids on counterfeit car part dealers held in partnership with the UAE Government during the first two months of 2018 have resulted in the confiscation of 178,781 of fake car parts worth $1.14 million. In a statement, Al Futtaim said the eight raids were executed. “In Al Ain, a villa was raided with the help of the municipality, police, Al Ain Economic Development Department (EDD) and other government entities, resulting in the confiscation of counterfeit parts worth $33,000. Another batch of counterfeit parts worth $333,000 was found in a 40ft container in Dubai Warsan 3,” it revealed. “The dangers accompanying the use of counterfeit car parts are massive,” said Saud Abbasi, managing director, Al-Futtaim-Toyota. “These parts are not produced by certified manufacturers and do not meet the standards of safety and quality set by manufacturers. Using these fake parts not only puts the driver at risk, but also their families and the public. We implore the public to always opt for original and high-quality parts from authorised dealers.”
DUBIzzLE sNAPs UP RIVAL CAR-sELLINg PLATFORMs RETAIL
dubizzle, the largest classifieds platform in the UAE, has announced its second round of major acquisitions with two Dubai-based companies, Expat Wheels and Wecashanycar. This investment marks dubizzle’s first-ever acquisition under the Motors section and solidifies its aspiration to offer more value to used car buyers and sellers in the UAE. dubizzle Motors has the largest market share in terms of traffic, users, and number of listings in the UAE. With the acquisitions, the platform now offers more value and choice by providing solutions for every type of used car seller through two new services - ‘Sell it For Me’ and ‘Cash it For Me.’ ‘Sell it For Me’ offers sellers 08 TRUCK&FLEET ME APRIL 2018
a convenient and safe solution by managing the sale process from endto-end, at the best possible price, while simultaneously giving buyers peace of mind via a 240-point pre-purchase inspection. For sellers seeking an instant cash proposition, ‘Cash it For Me’ offers a liquid and transparent solution via a live auction platform connected to dubizzle’s 600+ professional dealers. “This acquisition marks a milestone for dubizzle Motors as we are expanding our services to cater to the needs of all types of used car sellers. By being closer to the transaction, we aim to make the entire process more convenient and transparent for both private and professional users,” commented Jean-Pierre Mondalek, General Manager, dubizzle Motors.
WE’VE sOLD OUR BUsINEss DOT COM Co-founders Faiyaz Chand and Nasrullah Chaudhry of Wecashanycar celebrate selling up to dubizzle.
NETWORK
gOODyEAR MEA APPOINTs NEW HEAD APPOINTMENT
NEW gENERAL MANAgER AT gOODyEAR Khaled Arafa sees potential to grow the business despite difficult market conditions.
Khaled Arafa has been appointed as the new general manager for Goodyear Middle East & Africa. Khaled has 20 years of experience in key leadership roles within the tire industry across Europe, Middle East & Africa geographies. His leadership will help the organization’s continued growth and further capitalise on the many opportunities in the region. “I see great potential for growth owing to the diversity of the markets despite the challenging economic outlook. We must be agile, think differently, find new and innovative ways to do business,” said Khaled “I am pleased to lead a strong team in this dynamic region” he added. Khaled will oversee the expansion of the Goodyear brand in the region through the quality of its products and the efficiency of its services.
AgMC BREAKs gROUND AT DUBAI MOTOR CITy RETAIL GMC, the official importer of BMW Group products for Dubai, Sharjah and the Northern Emirates, has broken ground at its new BMW and MINI facility in Dubai Motor City. According to the distributor, the 9,000 sqm showroom and aftersales facility will be the first fullyfledged automotive dealership to open in the increasingly popular Dubai Motor City area. “During the construction phase, only certified materials will be used, resulting in less energy consumption and reduced emissions once operational,” said the company in a statement. “Particular attention will be paid to the recycling concepts for water, oil and batteries.
It will also be fully compliant with the Dubai Municipality Sustainability requirements.” Visitors will be able to access an iPad app that enables live car configuration and demos during consultations, and a Virtual Product Presentation. Virtual Reality (VR) and Augmented Reality (AR) services will allow customers to immediately bring up lifelike, 3D images of any BMW or MINI model on a smartphone or tablet, which they can walk around them, open doors, and even ‘step into’ the vehicles. Using the visualisation tool, customers can also customise cars, and see the full range of
product options. In addition new employee roles will allow AGMC to evolve the way in which it interacts with customers in the sales process. This includes Product Geniuses – experts whose sole role is to educate car shoppers about the various choices, explain the products in more detail. “Every element of the customer journey has been considered to deliver a completely redesigned experience. An enhanced aftersales facility will include 38 work bays, 16 of which will be Fastlane,” said AGMC.
John edwards set to leave Jaguar land rover Mena APPOINTMENT
Jaguar Land Rover has revealed that John Edwards, managing director of Special Operations, will leave the business at the end of June. John Edwards has led the Special Operations business since its launch in 2014 and will leave after strengthening the leadership team, preparing it for even greater future success and growth. Replacing Edwards is Michael van der Sande, currently managing director of Alpine, Renault Group’s sports car division, who has previously held senior roles at Aston Martin, Tesla and Harley-Davidson. Further appointments to the Special Operations leadership team will be announced at a later date. John Edwards said: “Our Special Vehicle Operations, Bespoke and Classic businesses are strategically important for the entire business and I am confident the new recruits will bring fresh thinking and new direction, building on what we have achieved and taking us onwards and upwards.” “In just four years Special Operations has established itself as a force in the automotive world with outstanding cars such as the Jaguar F-TYPE SVR and Range Rover SV Coupé, coupled with the revitalisation of the Classic business and continuation models such as the Jaguar XKSS,” said Michael van der Sande. “These are exceptional achievements and I relish the opportunity to lead the team behind these achievements to even greater success.”
INsIDE THIs IssUE : LAUNCHEs sPECIAL, WHAT THE END OF THE BAN ON WOMEN DRIVERs MEANs, POTENTIAL RIsEs IN CONsTRUCTION TENDERs
10 TRUCK&FLEET ME APRIL 2018
LAUNCHES
FORD EXPEDITION JOURNEYS TO MIDDLE EAST / YARIS SEDAN MAKES SPARKLING RETURN / ACTROS AND ACROS UNVEILED IN DUBAI / NEW FAST-LOADING AND SMOOTH FH IN UAE
lau nches BOOSTED VEHICLE FEATUREs 3.5L ECoboosT EnginE
Expedition starts its new adventure POPULAR FULL-SIzE SUV RECEIVED ITS REGIONAL LAUNCH LAST MONTH According to Ford pre-orders for the new Expedition got the 2018 edition of the fullsize SUV off to a strong start ahead of its arrival in Middle East showrooms last month. Since it was shown at the Dubai International Motor Show last November, Ford has been keen to spread the message that not only is an extremely capable but also smart vehicle. The all-new Expedition offers more driver-assist technologies than any other full-size SUV, claims Ford. In addition, an all-new highstrength, aluminium-alloy
12 TRUCK&FLEET ME APRIL 2018
body and redesigned highstrength steel frame form the foundation for Expedition’s rugged off-road and strong towing capabilities. “Thanks to the use of advanced materials, the all-new Expedition saves up to 136kg, and the team reinvested that weight savings everywhere it counts to give customers more technology and convenience features than ever before,” says Ford. More than 40 features and driver-assist technologies new to Expedition have been designed to ensure
“the journey as enjoyable as the destination. These include class-exclusive enhanced active park assist to easily pull in and out of parking spots, as well as available 360-degree camera technology to help customers see more around their Expedition for easier parking.” On the road, Expedition’s lane-keeping aid is designed to reduce unintentional drifting of the vehicle outside its intended lane, while adaptive cruise control with stop-and-go allows drivers to set a cruising speed,
using radar and camera technology to monitor traffic to maintain a set distance between vehicles. Its collision avoidance detection system helps drivers avoid other vehicles or pedestrians, while available Blind Spot Information System helps monitor blind spots outside the driver’s immediate view. In addition, Expedition offers available new connectivity technologies and convenience features, including: The Expedition is powered by the 3.5l EcoBoost engine with standard Auto Start-Stop
LAUNCHES
RetuRn of the sedan’s sedan
AL-FUTTAIM TOYOTA HAILS UPDATE TO BUSINESS FAVOURITE YARIS
MULTI-MODES The Expedition’s all-new Terrain Management system lets drivers choose between drive modes for optimal vehicle handling in different conditions.
WELL-EqUIPPED The new Expedition comes with Ford’s typical range of technology including 360-degree cameras tech for parking.
plus a class exclusive new 10-speed automatic transmission, the all-new Expedition offers “bestin-class fuel economy “and power, with up to 400 horsepower and 610Nm torque available. A newly-available electronic limited-slip differential on models with Intelligent 4WD enables improved off-road capability by sending power where it’s needed. Ford also claims it offers the best towing
capability of any fullsize SUV, together with features such as Pro Trailer Backup Assist, which makes backing up a trailer “as easy as turning a knob”. Plus, an available handsfree liftgate makes loading cargo easy. Ford says: “It has a roomy, flexible interior with seating for up to eight people, and the fullsize SUV makes modern family adventures more comfortable during short and long trips alike.”
Al-Futtaim Toyota has formally launched the new stylish Yaris in the UAE. The company says the latest version of the fleet favourite “marks a new advanced and emotional design for the compact sedan. The Yaris sedan offers enhanced superior comfort and advanced safety features in addition to the same uncompromised blend of quality, durability and reliability.” Toyota reckons the new Yaris demonstrates “remarkable attention to detail” in the design and engineering of the vehicle encompassing its “flashy exterior and class-leading interior design and state-of-the-art passenger cabin” to its responsive driving dynamics. The overall length has been increased by 15 mm to 4.425 mm, and the overall width of the vehicle has grown by 30 mm to 1,730 mm. While the Japanese company believes the result is a highly aerodynamic body with a wider and “more masculine stance”, in the world of commercial fleets size does matter and the incremental increase will be appreciated. On the exterior, the new Yaris features dynamic angles as well as sharp headlamps with integrated clearance lamps. The front of the new Yaris has been updated with a horizontal grille for a wider yet more aerodynamic appearance. LED daytime running lamps have also been integrated into the shape of the grille
for a sleek appearance, while slimmer rear combination taillights “adorn the rear of the car with a unique look.” Revisions to the exterior continue on the side, it features a distinct character line that starts from the front wheel arch, heading towards the rear doors, with another line linking the door handles to the rear taillights. The addition of the newly introduced Shark Fin antenna adds to the aerodynamic design of the car, says Toyota. The car is available in eight distinctive exterior colours of which two have been newly-developed, including Red MM, and Dark Blue MM, which expresses a sense of power and elegance, the new Yaris has been rearmed with a newly designed 15in alloy wheels. “The cabin has been adorned with a range of enhanced features, including Smart Entry & Start System, Cruise Control System, optitron meter and 4.2in Thin Film Transistor (TFT) multiinformation display, automatic aircon, as well as a six-speaker sound system with AUX and USB jacks,” explains Toyota. SPECIFICATIONS Engine
1.5l 4-cyl
Power
105 hp
Torque
14.3 kg/m
Transmission Multidrive 7-speed
SIzE IS EVERYTHING LEngTh inCREAsEd To 4.4M
SPECIFICATIONS Engine
3.5l Ecoboost engine
Power
400hp
Torque
610nm
Transmission
10-speed selectshift
APRIL 2018 TRUCK&FLEET ME 13
LAunch SPecIAL
LIGHTS, CAMERAS, AC-TION! Marc Legeay, general manager, Mercedes-Benz Trucks MenA on how why Dubai was the right place to launch the new Actros and Arocs
O
ver the course of two days in March, MercedesBenz Trucks MENA brought together many of the region’s biggest truck owners and enthusiasts to give the new Actros and Arocs a spectacular start in the Middle East and Africa. In an interview with T&FME, general manager Marc Legeay explains why. Let’s start by asking why did you choose Dubai as the venue for what is a MenA launch?
Dubai is obviously not only a major hub for the Middle East and Africa region, it’s also the city where we as Daimler Commercial Vehicles Regional Office MENA are based. Above all, Dubai provides excellent 14 TRUCK&FLEET ME APRIL 2018
facilities and the infrastructure, which are required for event with such a scope. It was a very spectacular event, you must regard the MenA as an important region. Why is that?
Indeed, the MENA region is very important to Daimler Commercial Vehicles and Mercedes-Benz Trucks in particular. We are deeply rooted here in the region, as our business relationships with our General Distributors started in the early 1950s. We have been playing a leading role in supporting the development of this region over decades, and we want to continue to further contribute to its future growth and prosperity. how do you feel event went?
MercedesBenz Trucks is well known for its technology innovations and leadership position in the truck industry”
The regional launch event was a great success. Our customers and business partners experienced not only a unique and spectacular light and laser choreography off the coast of Dubai with the trucks on floating platforms, but also an on- and off-road experience with the trucks which left everyone thrilled. We received a lot of positive feedback from respected media channels and directly from our customers during and after the regional launch. The on- and off-road experiences were very well received by those who attended. In-region testing is fairly standard today but you seem to have gone over and above the norm ahead of this launch. how was it conducted – and did you need to prioritise any systems that
LAunch SPecIAL
may be pushed to the limit by regional conditions?
A neW geneRATIon of heAVY TRuck The Mercedes-Benz Arocs is intended for construction and offroad applications and is available as Chassis-, Mixer-, Tipper- and all-wheel-drive (AWD) variants – from 4×2 to 8×8 configurations with gross combination weights (GCW) of up to 250t. “When exceptional robustness is required along with maximum load-bearing capability for use on construction sites or away from surfaced roads, then the new Arocs is the right choice,” said MercedesBenz. “The extremely resilient Arocs can work under the toughest off-road conditions, far from any highway. Mercedes-Benz describes the Actros as a long-distance and distribution haulage vehicle. The truck is one of the bestselling vehicles in its class and celebrated the 20th anniversary of its regional debut last year. “When developing the new Actros, the focus was primarily on designing a truck for transportation applications,” the company said in its release statement. “Thanks to a broad product offering, it meets the needs of long-distance haulage as well as heavy-duty short-radius transport and distribution haulage. Highly efficient, reliable and durable, this truck boasts many benefits.” Both trucks include a “highly sophisticated and reliable single source” drive train and new “resilient, powerful and efficient engines” which are available in Euro III, IV and V emission norms, offering a wide range of power outputs from 240 kW (326 hp) up to 460 kW (625 hp). Additionally, there are two new highly specialised heavy-haulage vehicles in the guise of the Actros SLT and the Arocs SLT, which complement the truck range.
A range of New Actros and Arocs trucks have been extensively tested over the past couple of years in our Testing Center based in Abu Dhabi, UAE. The focus was set on the conditions faced in this region, like hot temperatures, dust, heavy loads, challenging terrain and also high sulphur diesel. Our trucks had outstanding performances in the harshest conditions and have passed more than 6 million kilometres of testing performed here in the UAE. Will you need further testing for the African market launches?
Mercedes-Benz Trucks is conducting tests all around the globe – from winter testing in Sweden to endurance testing in Australia and South Africa. But one thing is for sure: a truck performing under the conditions we face here in the UAE will perform anywhere else around the globe! You’re launching with both euro IV and euro V options – which sectors/territories do you expect to opt for the euro V?
the year with this launch?
Our trucks had outstanding performances in the harshest conditions and have passed more than 6 million kilometres of testing performed here in the UAE”
Given that the Euro IV legislations are already in place, our customers in the UAE and Morocco will opt for Euro IV and V. A lot of truck makers will be planning launches around those new emission standards in the uAe – how important was it to make a statement early in
Mercedes-Benz Trucks is well known for its technology innovations and leadership position in the truck industry. In Europe, we were the first ones introducing Euro VI - now our objective is to continue setting the benchmark here in the MENA region. how will the change in emission standards benefit the uAe?
The UAE are the pioneers in introducing new emission levels here in the Middle East and this asserts this country’s ambition in striving for excellence, high-tech and sustainability. coming back to the trucks themselves, you can tell it is a new generation when a change in engine options is just the tip of the iceberg when it comes to (a very long list) of new features.
The New Actros is made for long-haulage transportation and distribution tasks, providing highest reliability and efficiency for our customers. When operations get tougher, we are now offering a supremely robust product. Both the Actros and Arocs come with new, highly efficient, reliable and performant in-line 6-cylinder engines available in Euro III, IV and V configurations, and a drivetrain ‘100% made by Mercedes-Benz’. Additionally, both truck model ranges are equipped with the latest, fully automated Mercedes PowerShift 3 transmission as standard, which is – uniquely in the market - also available in a 16-speed variant for demanding operations. Last but not least, our customers will enjoy
A LARge-ScALe RoLL-ouT Mercedes-Benz Trucks will now roll-out the vehicles in individual markets across the MENA region.
APRIL 2018 TRUCK&FLEET ME 15
LAunch SPecIAL
the new spacious and comfortable cabs, and an unmatched choice of safety features.
art products and tailor-made service offers. What would you say are other the major trends in the market?
What is your view on how competitive the heavy-duty segment in the region is becoming? Will your distributors have a role in ensuring the new Arocs, for instance, is a success with off-road transporters?
We are seeing the Total Cost of Ownership (TCO) approach becoming more and more important here in the region, especially for fleet customers. Besides the right product offer, tailor-made service packages are key for the customers, ensuring highest profitability and uptime for their fleet. Our Authorised General Distributors play a vital role here in consulting the customers professionally, providing the perfect transport solution, including the mentioned tailor-made service offer, which includes for instance service contracts and extended warranty packages. When it comes to the New Arocs, we and our general distributors have now an extremely robust and reliable product in the portfolio, providing by far more variants and options to customers in the construction and off-road segments than ever before. Do you think there may be pent up demand in the region as many people have delayed renewing their fleet because of tough market conditions?
As in many other markets, fleet owners here are facing cost pressure on the one hand, and the need to increase efficiency and profitability of their business. With the New Actros and Arocs, we’re offering new product and service solutions, optimising the
In some markets like KSA and the UAE, safety features are becoming more and more important. new trucks means new options in terms of fleets building the right vehicle spec for their operation. how are you helping customers wanting to use bodybuilder services?
off-ShoRe, off- AnD on-hIghWAY The new emission norms options mean the new trucks will fit into the UAE’s Oil & Gas, construction and logistics fleets.
Fleet owners here are facing cost pressure on the one hand, and the need to increase efficiency and profitability of their business”
TCO of customers, which is supposed to be important buying criteria for operators with aging fleets. These operators will in particular benefit from lower operation cost due to the fuel-efficient new truck generation, and also projectable service and maintenance cost covered by the Service Contract and Extended Warranty offer – which come with extended and flexible service intervals. Talking about Tco, do you really feel that your customers habits are changing?
As mentioned already, the TCO approach is definitely a major trend. We observe that our customers are becoming more and more professional and mature in their approach of buying and operating. Getting the right product solution and operating at favourable cost per kilometres is paramount. We cater for these needs, with state-of-the
The wide offer of truck variants and equipment, is definitely expanding now with the New Actros and Arocs. For example, we can definitely offer more wheelbases and frame overhangs in comparison to the predecessor models. We also provide comprehensive guidelines and technical data to bodybuilders, supporting them to mount their bodies professionally and effectively. And with our close relationships to bodybuilders, whether in Europe or here, we can offer the perfect complete vehicle solution to our customers, even for the most specific and demanding applications. finally, the Actros has celebrated its 20th anniversary in the region and has racked up millions of kilometres over the decades. Why has it been such an enduring success in the region?
The Actros has been a great success for Mercedes-Benz here in the MENA region with more than 100,000 units sold over the past two decades. And this success story is due to the excellent product, service, and the trust of our customers.
WhAT’S The SAMe…AnD WhAT’S noT? While the on-road Actros was sculpted by hours of wind tunnel testing, the off-highway, construction site-mover Arocs has been beefed up and ruggised for robustness. Both share a drivetrain from a single source and the engines meet Euro III, IV and V emission norms. In the latter two, 1,000 to 3,000Nm tractive power is achieved by 10.7l, 12.8l and 15.6l displacemnet, with a power
16 TRUCK&FLEET ME APRIL 2018
range from 240 kW up to 460 kW. The engines, transmissions and axles are perfectly mated with each other. The Mercedes PowerShift 3 fully automated 12- or 16-speed transmissions are standard for fast, correct and precise gear changes – although there is an optional 12-speed manual option. New hypoid axles or robust planetary hub reduction axles are fitted depending on fleet usage profiles. There is a large
range of front axles but a choice of two different AWD systems means the Arocs can be adapted to suit different conditions. There is also a choice of air or steel suspension. (A Turbo Retarder Clutch, perfect for heavy loads, is optionally available.) All engines are designed as in-line 6-cylinder engines with exhaust-gas turbocharging and charge air cooling for high torque at little more than idle speed.
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LAunchES SPEcIAL
AdvAncing SAfety
T&FME examines FAMcO’s and Volvo’s newly launched Safety Edition Volvo Fh in the uAE
A
l-Futtaim Auto & Machinery Company (FAMCO) says the launch of the new Safety Edition Volvo FH truck introduces Volvo Trucks advanced safety features in the UAE. The launch event was attended by senior management from Volvo Trucks and FAMCO and was held at the distributor’s premises at Dubai Investment Park. The introduction of the Advanced Safety Features, such as the Headway Support System and Lane Keeping Support, is in line with the UAE Government’s Vision 2021 to work towards providing 18 TRUCK&FLEET ME APRIL 2018
a sustainable future and Volvo Trucks commitment to match customer needs, the companies said in a shared statement. “We are extremely pleased to launch Volvo Trucks safety features in the UAE,” says Vladimir Knezevic, managing director of FAMCO UAE. “The Safety Edition Volvo FH truck with safety features was built with one thing in mind: The driver. The truck contains numerous world’s first innovations which will assist in safe driving, fast loading and fatigue reduction, thus increases productivity.” Jan-Erik Thoren, managing director of Volvo Trucks Middle East, added: “Our engineers are responsible for some of the world’s most important safety innovations
the truck contains numerous world’s first innovations which will assist in safe driving”
and we’ve continued on this tradition with the launch of this safety edition in the UAE.” Last year, T&FME was invited to Volvo Trucks’ operation Gothenburg to see them in action on the test track. While the demonstrations were under controlled conditions it was easy to understand how they could make a difference on the region’s roads. Clearly for fleet owners, safety should be both a moral and commercial imperative – particularly as the features can make a major impact on the operational costs of fleets. The Safety Edition Volvo FH being released by FAMCO in the UAE follows Zahid Tractor’s own FH16 4x2 tractor head safety special which released last year.
LAunchES SPEcIAL
READy TO gO The launch event was attended by senior management from Volvo Trucks and FAMCO and was held at the distributor’s premises at Dubai Investment Park.
TIME TO ADVAncE The Advanced Safety Systems demonstrated by the FH are being launched in line with the UAE’s government Vision 2021 plan.
Volvo Truck International’s SVP Helene Mellqvist told T&FME at the time that VTI believes that some fleets in the region are beginning to realise the commercial and safety benefits of modern trucks. “I think with things such like Vision 2030 in Saudi Arabia there are tremendous opportunities as we go along,” she said. “All of these features are done for customer productivity. We know that safety also provides productivity to customers. If a truck is not crashed it stays on the road. If a driver is unhurt and safe and sound they are not tired or fatigue. All those things bring value back to the customer. During T&FME’s most recent visit to
Sweden, the magazine was able to test its active safety systems such as its collision warning systems with emergency brake system – the Headway Support System. This system monitors vehicles in front with the help of camera and radar technology and functions irrespective of whether it is sunny, misty, foggy or dark. If there is a risk of collision, the driver is alerted via gradually escalating light and acoustic signals in the cab and on windscreen via a heads-up display. Activated each time the vehicle is started it is available at speeds above 15 km/h and if the system does not detect a response from the driver, the truck automatically starts braking gently. However, if the driver
Our engineers are responsible for some of the world’s most important safety innovations”
still does not respond, the emergency brake is deployed until the vehicle comes to a complete standstill. After a further five seconds without any movement of the steering wheel or other reaction, the handbrake is automatically engaged - a safety measure designed to prevent the truck from rolling if the driver is in shock or unconscious. In testing, T&FMEwas impressed by how effective the alerts and alarms were and while it was great to experience the truck seizing control to avoid an accident – or to use the technical term an unplanned incident – this is a system who’s first priority is to let the driver decide the best course of action. The head of Volvo Trucks’ development, APRIL 2018 TRUCK&FLEET ME 19
LAunchES SPEcIAL
A cOMbInED EFFORT EAMCO’s Vladimir Knezevic (left) and Volvo Truck Middle East’s Jan-Erik Thoren said that the launch is intended to help fleets be safer and more productive.
Traffic & Product Safety director Carl Johan Almqvist explained to T&FME how he has overseen the development of many of the features the FH is helping to promote. Although he added that the best way to avoid an accident remains a driver who drives their vehicle responsibly. “In many cases (the alerts are) enough for the driver to quickly assess the situation and avoid an accident,” said Almqvist. “Our active safety systems are part of a holistic solution that clearly helps reduce risks in traffic, but it is important to bear in mind that technology alone cannot do the job. A safe traffic environment requires active interaction between all road users. A driver who handles his or her vehicle responsibly is still the best
these features are done for customer productivity. We know that safety also provides productivity”
form of accident prevention.” The Headway Support System is ably supported by the Lane Change Support (LCS) feature which is arguably more useful in the high-speed multilane environment of Middle East highways, particularly those in the GCC. Almqvist said that the system was developed in response to statistics which demonstrate that many accidents occur during lane changes as other vehicle can be hidden in the rear blind spot. LCS uses radar to aid drivers and prevent accidents by covering monitoring the blind spots, particularly on a truck’s passenger side, which can make lane changing difficult and dangerous. It is activated whenever the driver uses turn signals, and a warning alerts the driver, if an
obstruction is detected on the truck’s side. Another feature that could save lives on region’s roads is the Electronic Stability Program (ESP) which is used to stabilise trailers and reduce the risk of skidding and rolling over. A control unit continuously receives information from a variety of sensors on the trucks and makes a new evaluation of the driving situation several times per second. If the system detects that the truck is starting to lurch or behave abnormally, the ESP reduces engine torque or activates the brakes individually in order to reduce speed and straighten the vehicle. T&FME was given use of the Swedish National Road and Transport Research Institute simulator test facility located within Gothenburg itself to test the system and found it highly responsive. Staying focussed and within lane can be difficult during long-haul transportation, which is why Volvo Trucks says it developed Lane Keeping Support which is also packed onto the FH from FAMCO. Operational at speeds over 60 km/h, the system monitors the truck’s position on the road. When it detects the truck drifting or swaying outside of its lane, a warning alerts the driver so that they can resume control. This is complemented the Driver Alert Support system monitors driver behaviour and steering wheel movements. If the truck begins to sway or drift, a warning system alerts the driver and suggests taking a break if the behaviour continues. Also present on the FH is the Volvo Dynamic Steering active system, which reduces steering force up to 85%. T&FME has tested this on both the FH and FMX and believes it makes a real impact on stability – particularly when in tough conditions in the heavy duty construction truck.
ThE SAFETy EDITIOn VOLVO Fh TRucK FEATuRES: Lane change Support Blind spots, particularly on a truck’s passenger side, can make lane changing difficult and dangerous. Electronic Stability Program Electronic Stability Program (ESP) is an important safety feature. The program reduces the risk of skidding and rolling over. headway Support System The headway support system
20 TRUCK&FLEET ME APRIL 2018
reduces risk of accidents and collisions. The system alerts the driver at the risk of collision with the vehicle ahead. The warning consists of red LED lights reflected on the windscreen and an acoustic signal from the speakers. If risk of collision is imminent, the vehicle brakes will be applied automatically. Lane Keeping Support Staying focussed and within lane can be difficult during long-haul
transportation, which is why Volvo Trucks has developed Lane Keeping Support. Driver Alert Support An extension of Volvo’s Lane Keeping Support, the Driver Alert Support monitors driver behaviour and steering wheel movements. Tyre Pressure Monitoring The Tyre Pressure Monitoring System makes it possible for the driver to supervise the
tyre pressure through the driver information display. Volvo Dynamic Steering The Volvo Dynamic Steeringeases driving through improved directional stability. Airbag The airbag is mounted in the steering wheel’s centre module and will be released in case of a head-on collision with a heavy or solid object.
Women DRIveRs In KsA
A new erA in SAudi
PwC measures the impact of women being able to drive in the Kingdom 22 TRUCK&FLEET ME APRIL 2018
Women DRIveRs In KsA
T
he Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud surprised many last September when he released a decree via the Saudi Press Agency allowing women to apply for driving licenses with immediate effect. To coincide with last month’s International Women’s Day and ahead of the expected lifting of the ban on women driving on 24 June, 2018, accounting and consultancy firm PwC’s GCC team has been analysing the effects of the change in law will have in the Kingdom. Partner Laurent Depolla, deals strategy and operations Middle East leader says it is presenting an array of opportunities for market players and investors. “This is an exciting time as Saudi Arabia has taken concrete steps to advance the gender equality agenda, which in turn will boost the Kingdom’s automotive market,” adds Depolla. In its How will women change the automotive market in KSA? analysis, PwC runs through the numbers of a female population that is expected to reach 15 million in 2020, 20% of which are projected to drive based on their age and income qualification. The total number of female drivers in Saudi Arabia is projected to reach 3 million in 2020. In comparison, says PwC, male drivers are set to increase from 9 million in 2017 to 9.5 million in 2020. It’s an understandable if noteworthy disparity in growth which will help to drive (pun not intended) new car sales in the Kingdom. Indeed, the addition of 3 million new women drivers to Saudi Arabia’s automotive market by 2020, says the PwC team, will open a host of incremental opportunities for investors and industry participants alike, ranging from car sales to motor insurance, vehicle leasing and driving schools. Over the course of the next two years, the volume of new driving licenses issued is expected to increase significantly by 2020 as women begin to apply for driving licenses from Q2 2018. In terms of the prospects for the automotive sector this “will be the primary, direct enabler for all the resulting demand” for car-related services. Consequently, car sales are expected to grow by 9% per annum until 2025 as benefit from the boost by the new women customer segment. This compare favourably to the 3% annual growth the Saudi market has experienced in the past four years. While the market growth in new car sales is
expected to be largely captured by existing new car dealers well-established in Saudi Arabia, PwC believes there will be significant opportunities for market entry in the used cars segment in the short to medium term. Likewise, PwC anticipates car leasing to “pick up substantially” with an annual growth rate of 4% over 2017-2025, compared to 2% per annum historically. The car leasing market in KSA is quite fragmented, which highlights the opportunity for both consolidation of existing players and new entrants to capture a share of the rapidly growing market, notes the analyst. Over the years, the motor insurance market has experienced robust growth driven by increased insurance spending. Currently, there are 27 companies providing motor insurance in KSA and PwC expects the motor insurance market to grow by 9% annually between 2017-2020 to reach $8 billion. “The highly competitive motor insurance market will benefit from the new women drivers segment. This will also create opportunities for new motor insurance providers, products and services,” says Hala Kudwah, PwC Saudi Arabia financial services & consulting leader. Further dynamics, enhanced by the rapid market expansion, are expected to reshape the motor insurance landscape. These include insurers’ risk models in the initial years which are expected to reflect higher premiums resulting from the lack of data on the large number of new women drivers. New technology enabled motor insurance products and functionalities will also expand rapidly such as automated insurance claims clearance, ease of application, personalisation of risk assessment and pricing. In the longer term, the overall increase in cars on the road will have a significant impact on Saudi Arabia’s traffic. The Government will need to accelerate the upgrade and expansion of the road infrastructure to accommodate the influx of additional drivers, says PwC, advising: “Future investments should also be considered for the development and maintenance of car parking areas. Incremental capital investments will be required to build new road infrastructure.” One of the major impacts on the economy will be the greater opportunities for women who want or need to work. New women-only driving schools will need to be established and PwC argues that driving schools will be among the first service providers to benefit from the automotive market opening to women – as well as one APRIL 2018 TRUCK&FLEET ME 23
Women DRIveRs In KsA
of the first job opportunities for them. “When considering the scale of the market opportunity, we find there are 1.1 driving schools per million residents in Riyadh vs. 1.8 driving schools per million residents in Dubai. This indicates an opportunity to increase by over 50% the number of driving institutions in the Saudi Arabian capital. It is expected that the Kingdom’s of Saudi Arabia new driving schools will be women-only, which will in turn create a large number of job opportunities for female driving instructors.” Kudwah adds: “Saudi women have been behind numerous achievements and now visibly behind the wheel. When considering the scale of the market, our analysis tells us that there’s an opportunity to increase the number of driving institutions in the kingdom by over 5o%, an increase that will be translated into job opportunities for our females.” Drive to earn Research commissioned by Uber has found that almost a third (31%) of Saudi women survey are interested in driving as an earnings opportunity. Published last month, the research, in collaboration with Ipsos, also discovered that 93% of Saudi females were positive about the recent lifting of the driving ban, mostly because it will allow them more flexibility to work. Furthermore 78% said they are likely to get a driving license post ban removal. An efficient way to make some extra
Our analysis tells us that there’s an opportunity to increase the number of driving institutions in the kingdom by over 5o%, an increase that will be translated into job opportunities for our females”
oveRWHeLmIngLy PosITIve 93% of Saudi women interviewed by Ipsos told researchers that they supported the lifting of the driving ban as it will enable them to work.
24 TRUCK&FLEET ME APRIL 2018
disposable income and flexible hours were cited as some of the top reasons driving could be an earnings opportunity for women on Uber, said the company. It has also announced a two year initiative called ‘Masaruky’ (“your path” in Arabic) which aims to increase women’s participation in the workforce through access to affordable transportation, in addition to increasing women’s access to flexible, part time economic opportunities through the Uber technology. Uber said that the campaign will kick off with an initial $266,580 pledge “to make driving schools accessible to more women who are interested in learning how to drive but may not have the resources to do so.” Commenting on the announcement, Anthony Khoury, Uber regional general manager said the company is seeking to contribute to a new chapter for female mobility in the Kingdom. “In the same way that our technology has brought a positive impact to more than 18 cities around the Kingdom, this will help us in further supporting women towards achieving their economic ambitions and goals – because not only do we enable more convenient ways to move around cities, but we also strive to drive change that is positive, meaningful and economically empowering,” he says. This comes on the back of months of research to understand what transport solutions will best serve Saudi women on the road to Vision 2030. There are currently 1.3 million women in the Saudi
DHL: neW veHICLes WILL HeLP Us To geT moRe Women DRIveRs In UAe DHL Express in the UAE says it is opting for Ford Transit vans in its fleet as it replaces its existing vehicles. It said it has received its first-ever batch of Ford Transit vans from National Car Rental (NCR) last month. Mike Barrett, VP operations, added that the option to use automatic transmissions could enable DHL Express to recruit more women drivers. “At DHL we are committed to continuous improvement and our Go Green initiatives. Ford Transit vans allows us to do that with their fuel-efficient and safe vehicles equipped with safety aids such as reversing cameras and blind spot eliminators making them ideal for our couriers,” said Barrett. “Since the vehicles also have the convenient option of automatic transmission, we can employ female drivers in greater numbers, helping us to achieve another one of our key objectives to ensuring diversity within the workforce.” Commenting on the delivery Rizleigh Grand, VP, rental and leasing at NCR added: “These vans can be serviced at any of the Al Tayer Motors Ford service centres in Dubai and the Northern Emirates, as well as at Premier Motors in Abu Dhabi. This reduces vehicle downtime and makes servicing very quick and convenient for our fleet customers.” A common site on roads in Europe, the versatile Ford Transit has been involved in a number of initiatives in the UAE recently including being used as the platform for the Dubai Corporation for Ambulance Service’s Ambulance of the Future as well as proving itself as a useful vehicle for SME operations.
Women Drivers in KsA
BIg sUPPoRT In sAUDI More than 250 women signed up for Ford’s inaugural Driving Skills For Her programme at Effat University.
workplace – 22% of the total workforce, a figure that the Kingdom’s government expects to increase to 30% by 203o. The research has also been supported by regular women listening sessions, said Uber, the first of which took place late last year with a number of influential female representatives, and was led by the technology company’s global CEO Dara Khosrowshahi. Discussions have focused largely on Uber’s priorities and upcoming plans for women in the Kingdom. The sessions have proven crucial for both participating women and Uber, giving women in attendance the chance to learn about both the process and economic impact that Uber can have. Uber says it has been well received by driver-partners in the Kingdom since its launch. The company recently announced that it has already onboarded over 150,000 Saudi partner-drivers on the app, thanks to the economic benefits facilitated by the technology. Over 65% of Saudi drivers utilise Uber part-time, and have joined the Uber app for the flexibility it provides, allowing them the opportunity to supplement their income.
early learning While women may not yet be driving on the open road, the Ford Driving Skills for Life for Her programme started by Ford Motor Company and Jeddah-based Effat University was an opportunity to enable Saudi female students to beging their journey to acquire a driver’s licence Ford Driving Skills for Life for Her is a special variation of Ford’s awardwinning safe driving programme for teens and new drivers, Driving Skills for Life and more than 250 female students participated in the march programme. Ford Driving Skills for Life for Her is the second initiative Ford has launched in Saudi Arabia and last year, Ford Fund – the philanthropic arm of Ford Motor Company – debuted its Henry Ford Entrepreneurship Academy in the Middle East, also at Effat University, providing 50 Saudi female entrepreneurs with the tools and knowledge needed to sustain their businesses. “Providing access to opportunities for people to reach their full potential is core to our mission and Ford’s goal of becoming the world’s most trusted mobility company,” said Jim Vella, president, Ford Fund.
93% saudi women feel positive towards the decision
78% saudi women will apply for a driving license
31%
Are interested in earning money from driving
While visiting the Kingdom specifically to mark the week, Vella added: “The fact that the programme takes place around International Women’s Day, a global day celebrating the social, economic and cultural achievements of women, is no coincidence. We are thrilled to be part of this historical milestone as we bring Ford Driving Skills for Life for Her to Saudi Arabia, to help young female drivers feel safe and confident behind the wheel for the first time, and we look forward to welcoming a new generation of women to the driver’s seat.” “The wheels of change are constantly moving forward, and finally Saudi Arabia has caught up with the rest of the world with regard to women driving,” Dr Haifa Jamalallail, president of Effat University. “Statistics show that women are generally safer and more defensive drivers than men. At Effat University, we are determined that this becomes the case also here,” Jamalallail continued. “We want women to be behind the wheel, and so we are looking forward to working with all elements of society to improve the safety of all citizens on the road. The Ford Driving Skills for Life programme is a step in this direction.” APRIL 2018 TRUCK&FLEET ME 25
MARKET REVIEW
ConstruCtion ContraCt priCes on the rise
Following two major heavy-duty launches, MACE’s Fergus Rossiter looks at how contractors can benefit from the construction market’s recovery 26 TRUCK&FLEET ME APRIL 2018
MARKET REVIEW
F
ergus Rossiter, director of Mace Cost Consultancy – MENA expects 2018 to see a recovery in tender prices, driven in part by an uptick in activity and in part by growing costs. This, as companies face fiscal consolidation policies in cash strapped MENA countries, such as the introduction of VAT pushing up prices of materials, potentially cutting into margins. Whilst increased activity may allow some boost to tender prices, the market is still competitive and, as such, we may see some of the additional cost coming out of margins, rather than through increased tender prices. With the construction market still reeling from a two-year contraction in project spending, a fuller pipeline for 2018 is providing optimism in the region as economic reforms and fiscal consolidation start to pay off. However, financing is likely to remain a challenge, with increased reliance on private sector funding across the board. Going forward, demand for construction in the region remains strong and as solutions to the financing challenges are found, we can expect to see spending levels climb in the medium term. “Increased project activity is anticipated to drive up tender prices across MENA markets, as contractors see their order books fill up again after the recent slowdown. However, the new economic reality means bringing financing to the table is becoming increasingly important, as contractors compete for diminishing government funding,” says Rossiter. As oil prices and consequently budgets recover from the slowdown across the region and activity picks up, we are seeing a general recovery in tender prices. This steady recovery is set to continue in Saudi Arabia, picking up to 2.79% growth in 2018 from 2.54%, reflecting the launch of many new projects to market and hence increased competition for suppliers. Saudi Arabia is set to see strongest growth in tender prices of the countries considered, followed by Oman, which has seen a significant jump to 2.46% growth in 2018. Increased investment in oil and gas in Oman is tightening the market and allowing contractors to push for higher prices. A similar trend is reflected across the markets considered, apart from Bahrain which is due to see slower tender price inflation. Egypt is likely to see significant tender price inflation this year having jumped to the second largest MENA project market. This jump in project activity will dramatically increase contractor power to raise prices as demand squeezes limited labour and contractor capacity. However, with the introduction of VAT
and reduction in subsidies for power and water in some countries, as they seek to reduce expenditure and increase revenues, inflation could grow by more than tender prices where competition remains strong. For example in both the UAE and KSA consumer inflation is expected to be higher than tender price inflation. Where this occurs, and competition is too strong to allow for pricing in inflated construction costs, margins could be eroded as contractors fail to cover the increased costs from VAT and utilities with tender price increases. The MENA construction sector is still reeling from the two-year contraction in project spending which saw the value of annual contract awards shrink by almost 40%. The lack of new project opportunities, combined with the delays in payments, meant that finding new revenues continued to prove challenging and cash flow remained a problem. Many construction companies have been downsizing in response to these tougher market conditions, and several international businesses have even reduced presence in the region. However, at the national level, there has been positive news for some countries, with Egypt, the UAE, Iran, Iraq and Oman all recording sizable rises in contract awards in 2017, offsetting declines in other markets. With a fuller pipeline going into 2018, the industry can see glimmers of hope, anticipating at least $170bn of awards in the coming year, a respectable increase on 2017’s figure. Driving this potential improvement in the market are a host of flagship schemes across a range of sectors, highlighting an industry less reliant on key sectors than in the past. Areas of particular interest for the region include a resurgence of oil and gas activity, investment in power (and renewables) and ongoing development of transport infrastructure across the region. These flagship industry schemes will be accompanied by an array of real estate projects, led by the $5bn Dubai Creek Harbour. Financing remains the biggest challenge for construction projects in the region, with government spending slashed, but private sector investment still weary of uncertainty. Governments are therefore increasingly looking to use Public Private Partnerships (PPPs) to finance and operate public services. With a strong track record in delivering PPPs in the energy sector, but limited success in other areas, the coming year will likely see an increased focus on packaging commercially attractive projects for private investors. Meed estimates that about 156 PPP projects requiring about $206bn investment are planned APRIL 2018 TRUCK&FLEET ME 27
MARKET REVIEW
across the region outside of the energy sector. Without sovereign guarantees for revenues, and with a limited track record of commercially successful PPPs, it is likely progress will be patchy. In addition to the use of PPPs, increasing use is being made of export credit support brought in by contractors and suppliers from overseas. During the challenging years since 2014, many contractors in the region have learnt to rely on the Dubai market for new opportunities, with other markets such as Saudi Arabia likely to disappoint. There are signs that this is now shifting. Although contractors remain busy tendering for work in Dubai and continue to struggle in other markets, consultants coming in at an earlier stage, are telling a different story. Whilst fewer new opportunities for work are coming out of Dubai, they have been increasingly competing for work in KSA. In 2017 the kingdom launched a slew of major projects, including Neom City, which are now starting to engage consultants for PM, design and engineering. As the boost to pipeline in Saudi Arabia progresses, it should absorb any slowdown in Dubai as Expo 2020 projects are completed and not immediately replaced. Despite the challenging circumstances of 2014-2017, the long-term drivers of project activity remain positive. There are still $2tn of projects in the GCC’s pipeline: with expanding populations and economies, the demand for housing, education, healthcare and utility schemes is as great as ever. Given their restive populations, the governments of the MENA
this jump in project activity will dramatically increase contractor power to raise prices as demand squeezes limited labour and contractor capacity”
CHANgEs IN MATERIAL PRICEs The depreciation of MENA currencies will feed through into higher material prices, with most countries heavily reliant on imports of materials for construction.
28 TRUCK&FLEET ME APRIL 2018
region know they cannot afford to fall behind for too long on their social infrastructure programs. Solutions to the financing challenges will be and are being found. Once they are we can expect project spending to once again climb to historic levels. Economic costs Across the region construction costs will receive a shock from fiscal consolidation policies, with the worst effects of this felt in Saud Arabia and the UAE, with the introduction of VAT raising the cost of many construction materials by 5%, and cuts to energy subsidies impacting on the cost of construction. With exemptions to the most onerous parts available to public sector companies in Saudi Arabia for example, minimising tax burdens could be another incentive for private contractors to enter into PPPs, further financing the government’s spending plans. Aside from costs related to government policy, we are also likely to see the depreciation of the MENA currencies feed through into higher material prices, with most countries in the region heavily reliant on imports of materials for construction. Mixed fortunes are generally anticipated for the MENA region: whilst greater stability in oil markets is expected to restore confidence, political shocks are expected to continue to affect investment and confidence in 2018. Both the increased price of oil (from an average of $54 per barrel in 2017 to an anticipated average $62p/b
THE TROUBLE WITH INFLATION Inflation is due to pick up across the board in the Middle East region, reflecting several contributing factors driving prices up. These include: • The impacts of fiscal policy such as VAT, removal of subsidies on utilities and increased taxes. VAT, in particular, will drive price growth in the UAE and Saudi Arabia • Depreciating currencies making imports more expensive, a significant factor in markets mostly dependent on imported consumer goods and materials • Economic expansion Of the Middle Eastern countries, Saudi Arabia and Qatar are to have the highest inflation, at 4.96% and 4.85% respectively, having both grown from minimal levels (and even minor deflation in Saudi Arabia’s case) in 2017. Whilst the rates are similarly high, the drivers are very different. In Saudi Arabia, the fiscal impacts of VAT and tax/subsidy changes have significantly raised prices domestically. These represent the main influencing factor, with VAT alone adding 2.5% to inflation in 2018. The impacts will be felt strongly in construction markets, and we can expect to see some impact on margins if tender prices cannot be raised to cover these increased costs. The other Middle Eastern countries remain within the acceptable range for the region of 2-4%, with all either registering a pick-up in 2017 or remaining steady. Egypt is a different story. The very high inflation in 2017 will ease slightly as the effects of the major currency crash continue to work their way through the system. Inflation will nonetheless remain high at 21.34%. However, over the longer term, inflation in Egypt is expected to moderate down to 7% (by 2021).
MARKET REVIEW
REAsONABLE INVEsT MENT The dollar’s depreciation is encouraging investment into the reg ion.
FAVOURABLE EXCHANgE RATEs USD depreciation against the euro is linking through to roughly 15% depreciation for the pegged currencies (Dirham, Riyal, Rial and Royal) over the past year. However, the rate of depreciation in these markets has slowed considerably, seeing only 1.1% change over the past-month, as compared to 3% in the H1 2017 update. This depreciation continues to make investment in the MENA region comparatively cheap and will take the edge off growing inflation for foreign investors as fiscal measures, such as introduction of VAT, start to bite. The Egyptian pound has seen slightly less depreciation against the strong Euro at 14.22% over the past year, 1.24% of which over the last month. After the currency crisis of 2016 resulted in a dramatic 112% yearly depreciation, recorded in our H1 2017 update, the pound has stabilised, moving in line with other countries in the region. However, the continued depreciation against the Euro maintains favourable investment conditions for foreign direct investment, a significant driver in the Egyptian
30 TRUCK&FLEET ME APRIL 2018
in 20181) and the economic reforms undertaken to diversify economies are contributing to an improved regional economic growth outlook. GDP growth in the region is expected a whole percent point faster in 2018 than 2017, at 3.2%. This outlook is supported by the strengthening global economy, which is enjoying the first period of coordinated recovery in both advanced and emerging markets, since the financial crisis. However, while the macroeconomic outlook may be improving, challenges at the operational level will remain, with the region continuing to adjust to a new economic paradigm in which oil revenues are not sufficient to fund government spending requirements. However, efforts are being made to reduce fiscal reliance on high oil prices. Most countries have reduced the oil price required to fiscally break even (see figure below). The impact of the UAE and KSA’s recent fiscal reforms can be clearly seen in the significantly lower price of oil needed for their budgets to break even. In addition to fiscal reforms, in 2018 privatisation of state services across the MENA region will accelerate as governments seek to reduce their balance sheets. This will be a significant opportunity for the private sector to pick up lucrative contracts and develop long term relationships in markets newly open to them. This will be dominated by plans to publicly float 5% of Saudi Aramco, the state’s oil company, the unbundling and privatisation of
increased project activity is anticipated to drive up tender prices across Mena markets, as contractors see their order books fill up again after the recent slowdown. Construction contract prices on the rise”
state utilities and sales of other state owned enterprises across the region. Egypt is set to see a take-off in growth, growing at the strongest rate of countries considered in 2018 (4.46%) and averaging 5.5% growth annually through to 2022. This strong growth is anticipated to be driven by strong external investment into the country, particularly from China and Middle Eastern investors. Kuwait is also anticipated to see significant growth over this period, with 4.1% growth in 2018 and averaging 3.5% annually to 2022. Oman (3.74%) and the UAE (3.36%) will see stronger growth levels in 2018, and consistent average growth through to 2022. However, Bahrain and Saudi Arabia are both set to remain in lower growth cycles, without sufficient momentum to improve conditions for the majority in these countries, at 2% and 1.7% average growth to 2022 respectively. In the meantime, Saudi Arabia will be grateful for relief from 2017’s negligible growth, rising from only 0.1% growth to 1.13% this year. “It is worth highlighting that with better prospects for the price of oil, and the oil based economies increasingly diversifying, the dichotomy we noted between diversified and non-diversified economies in the H1 2017 update, appears no longer applicable. Egypt, Kuwait and the UAE are set to see the highest average growth rates to 2022, and Saudi Arabia and Bahrain the lowest. This mix of fortunes is unrelated to diversified vs non-diversified economies,” says Rossiter. BREAKINg FREE The impact of the UAE and KSA’s recent fiscal reforms is helping to lower the price of oil needed for their budgets to break even.
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WORKSHOP
NTC’S NEW FACTORY IN SAUDI ARABIA / AL-FARIS AND MAGNA / E-POWER WABCO HONOURED IN CHINA / PIRELLI UNVEILS CYBERCAR SYSTEM
workshop
NTC closer to constructing new tyre plant SAUDI GIANT TREADS CLOSER TO $1.2 BILLION JUBAIL FACILITY TYRES The Saudi Arabian National Tire Co. says it is in the final stages of awarding the construction of its $1.2 billion tyre production plant to an EPC contractor, Farid Dudin, general manager of Victoria Trading FZCO and head of the tire plant project told the recent Tire Technology Expo in Hannover, Germany. Among the top bidders is South Korea’s Samsung Engineering, Dudin revealed to delegates at the event, adding that the rhe scope of the project has now increased to $1.2 billion from the original $1 billion reported in January. The new tyre plant will be located in the industrial zone of
A FIRST FOR SAUDI ARABIA Once completed NTC says the plant will be a first for KSA and one of the most modern in the world.
Jubail, in the Eastern province of Saudi Arabia, approximately 400 km from the Saudi capital, Riyadh. It was announced in January that the preliminary design of the 1 million sqm site had started and the two co-operating companies expect to begin production in the second half of 2020. NTC is backed by HRH Prince Fahad Bin Abdul-Rahman Bin Abdul-Aziz Al-Saud. The company says that the plant will be the first of its kind in KSA and claims it will be “one of the biggest and most modern tyre factories in the world. Once constructed, the factory will make 16 million car tyres and 6 million truck tyres a year, with a workforce of 4000 at full capacity.
MAGNA TYRES TO SUPPLY TYRES FOR AL FARIS ALLTERRAIN CRANE TYRES
Magna Tyres has signed an annual contract with Al Faris Equipment Rentals LLC that will see it supply tyres for the all-terrain cranes in the Dubai-based rental company’s fleet. Magna tyres said that the contract was signed towards the end of last year and since then the first batch of 445/95R25 Magna MA03 mobile crane tyres has already been fitted to a crane in Al Faris’ mobile crane fleet. This successful fitting is just the beginning of a sustained cooperation, said Magna Tyres. During 2018, Magna will provide Al Faris with a high level of support through its premium products and after sales service, it added. The Magna MA03 tyres are especially designed for mobile cranes for highway and off-road applications, said the manufacturer, adding that they are designed to be longlasting with a non-directional tread design that contributes to fuel efficiency and guarantees excellent operating comfort. Magna Tyres has found success in the Middle East tyre market for several years, with the Al Faris Group, one of the largest heavy-duty crane rental companies in the region, among its biggest customers.
INSIDE THIS MONTH’S WORKSHOP: WHY UTILITLIES NEED ELECTRIC VEHICLES, GOODYEAR’S TYRE DEVELOPMENT AND AUTOMECHANIKA DUBAI 2018, AND MORE 32 TRUCK&FLEET ME APRIL 2018
WORKSHOP
WABCO HONOURED BY SINOTRUK AWARDS
NissaN’s e-power techNwiNs top award POWERTRAINS
Nissan’s e-POWER electric powertrain technology, which helped make the Nissan Note Japan’s best-selling compact car last year, has won a prestigious Japanese environmental award for its contributions to reducing CO2 emissions, says the Japanese company. The Energy Conservation Center Japan (ECCJ), an organisation backed by Japan’s Ministry of Economy, Trade and Industry, awarded e-POWER its Chairman’s Prize as part of the Energy Conservation Grand Prize Awards for fiscal 2017. The role of its gasoline engine is strictly to generate electric power. Because this engine always operates at its optimum condition, the Note e-POWER boasts 30% better fuel efficiency than cars powered by conventional gasoline engines with similar output.
PARTS WABCO Holdings says it was honoured to be recognised for its “extraordinary performance” by Sinotruk Jinan Truck, at the leading Chinese heavy-duty truck manufacturer’s awards in China last month. WABCO said it was recognised in two categories during the 2017 awards for Top Supplier and for Quality. Sinotruk Jinan evaluated supplier performance annually for quality, cost, delivery reliability, and service while judging the awards, said WABCO in a statement. “WABCO stood out among other suppliers to win two awards for its unwavering commitment to premier quality, optimise cost, and seamless collaboration,” it added. “WABCO has been a trusted partner to
Sinotruk Jinan for decades,” said Ruiqun Yu, general manager, Sinotruk Jinan Truck. “The WABCO team always fully understands our requirements and delivers beyond our expectations. This is the foundation of our long-term strategic alliance as we strive to comprehensively improve the safety, efficiency and connectivity of our trucks.” “We are truly honoured to receive these two awards from Sinotruk Jinan,” said Sujie Yu, WABCO president, Asia-Pacific and Business Leader, China. “Recognition from our customers is always a powerful motivation for WABCO. We always strive to go above and beyond the call of duty to anticipate and exceed our customers’ expectations.”
A DOUBLE WINNER WABCO was recognised in two categories including the award for Top Supplier by Sinotruk.
WHEN TYRES AND CARS TALK TO EACH OTHER TYRES
Pirelli’s big news from the 2018 Geneva Motor Show was Cyber Car, was a new smart tyre system, offered to the OE market which it has designed in “close collaboration
with car manufacturers themselves.” According to the tyre manufacturer, key tyre data, such as pressure, internal temperature and tread depth are among the parameters that Cyber Car can transmit to the vehicle. The system
also has the capability to intervene and activate systems such as ABS and stability control. For example, by reading a tyre’s “identity card” (the tyre ID) the vehicle can alter its set-up in order to make the drive
EASIER MAINTENANCE Tyre maintenance becomes an easier job, thanks to specific information about tread wear and how the tyres should be seasonally rotated
safer and more comfortable. Data recorded also includes vertical load: vital information for electric cars. The residual autonomy of battery packs is currently calculated using standard parameters, whereas with Pirelli’s Cyber Car, the on-board electronics can supply more precise information. By knowing the car’s accurate weight, the vehicle’s central control unit can calculate more exactly just how many kilometres can be driven before recharging,” explained the company. It also informs the driver, through the carmaker’s interface, about the standard operating parameters of the tyre, such as vertical load, temperature and pressure, which allows timely intervention if the pressures are wrong. The first models fitted with Cyber Car will arrive this year; with a number of manufacturers already at an advanced stage of integrating Pirelli’s technology into their own systems. APRIL 2018 TRUCK&FLEET ME 33
INTERVIEW
Taking The heaT Goodyear’s Rupert Kohaupt tells T&FME why it had to make a dedicated tyre for the region
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yre manufacturers will often tout the improved wear, greater durability and lower operating costs of their new sets of tyres but the products are not always exposed to the region’s unique environment until they are launched into the market. The beginning of 2018 saw Goodyear launch a tyre it says it has spent years developing for the extreme conditions faced by fleets in the Middle East. Goodyear claims its Middle Eastdedicated KMAX tyres have been designed for trucks operating long distances in
34 TRUCK&FLEET ME APRIL 2018
multiple loading conditions and running on roads where long-term resistance to heat “is the main performance factor”. “The new KMAX family consists of Extreme, Endurance and Cargo for fleets working on the road long distances as well as regional operation for different load applications,” explains Rupert Kohaupt, sales director, Proactive Solutions, Goodyear Emerging Markets. “Considering the new priorities in Europe are completely different than that of the Middle East & Africa region, we decided to introduce a dedicated line-up only for Middle East &
kMaX extreme is a new tyre developed from a to Z for the Middle east”
Africa working conditions. The KMAX extreme is a new tyre developed from A to Z, and designed especially, for Middle East working conditions (weather, roads, payload, speed, trucks, etc). Hence it will deliver the best possible performance for fleets.” The specially designed tread patterns and compounds of the tyre ensure regular wear and resistance to abrasion in hot conditions and the carcasses are likewise designed to cope with long life cycles in such conditions. Goodyear says the Extreme is a significant leap forwards in Middle East conditions from the original KMAX S which in itself was a
INTERVIEW
GREENER mobILITy LITERALLy At the Geneva International Motor Show, Goodyear revealed its new intelligent tyre prototype and the Oxygene concept – a tyre that has moss growing on its side wall. The Goodyear intelligent tyre prototype “allows for continuous” connectivity and real-time data sharing, enabling optimal tyre usage for safer and more cost-efficient mobility and maximised uptime. The sensors in the intelligent tyre, together with the vehicle and third-party information, provide real-time data to Goodyear’s proprietary algorithms. Thanks to these algorithms, information on tyre ID and status – including wear, temperature and pressure – is continuously updated and shared with fleet operators. “Tyre performance and wear information provide a real-time signal for when a tyre needs service to extend its life, fuel economy and performance attributes,” said Chris Delaney, president of Goodyear EMEA. “This proactive maintenance allows operators to precisely identify and resolve tyre-related and potential service issues before they happen.” The Oxygene features living moss growing within the side wall. Combined with the tyre’s smart tread design this absorbs and circulates moisture and water from the road surface, enabling photosynthesis and consequently the release of oxygen into the air. “With more than two-thirds of the world population expected to live in cities by 2050, the demands on transport networks will increase substantially,” said Delaney. “Smarter, greener infrastructure and transport will be crucial in addressing the most pressing challenges of urban mobility and development.”
30% upgrade in terms of the mileage from the previous generation RHS II range. “This has been accomplished by using advanced technology on the construction and rubber compound to minimise heat generation and increase heat dissipation,” explains Kohaupt. “(The tyre has been) tailored to accommodate to extreme hot weather conditions.” According to Kohaupt, one of the main challenges that hinders tyre performance in the MENA region is balancing the extreme hot weather conditions of the summer with generally mild winters. Consequently, the KMAX will still maintain a high performance during this part of the year, meaning that fleets do not have to switch to alternative tyres during for ‘winter’ conditions in the region. “Given the static weather conditions in the Middle East & Africa region, no tyre change is necessary as opposed to Europe, where they need summer and winter tyres due to snow in the winter. “The purpose of the KMAX Extreme combats the main obstacle faced in the region whilst still performing very well during the winter season,” he affirms, adding that development of the KMAX Extreme has taken a number of years,
During the product development phase, we dedicated up to four years which included the design process, lab testing process and finally the field testing process in Middle east”
TRyING To hELP fLEETs Robert Kohaupt says Goodyear is working on technology that will help fleets to drive safely, efficiently and get the maximum performance from the tyre
including an extended period of inregion testing ahead of its launch. He says: “During the product development phase, we dedicated up to four years which included the design process, lab testing process and finally field testing process in Middle East.” Beyond the KMAX Extreme, T&FME asks, what other plans does Goodyear have for expanding its range and choice for fleets in the region. “The KMAX family is covering the on-road application for tyres which is 50%-60% of truck applications,” Kohaupt explains. “We are developing new tyres with new technologies for other working conditions such as mixed service/off-road. Looking at trends in the market, he says that the region is currently tracking European and American markets where, smart and autonomous commercial vehicles are emerging as viable choices for fleets. As is the rapid advancement in electric vehicle technology in the commercial vehicles sector. These trends, he says, are informing Goodyear’s current tyre development: “we are exploring different to accelerate the safety of the fleets and the performance of the tyres.” More immediately, there is an increase in use and interest in on-tyre technology and initiatives such as ESMA’s RFID tracking of tyres and the emerging in tyre-pressure monitoring systems (TPMS) in the region. Kohaupt’s says Goodyear’s own work in the area will help its customers to realise the benefits of this relatively new technology. “There are different technologies for tyre maintenance and tracking,” he explains. “We at Goodyear are exploring different service options like drive over and TPMS. Such services will be available for fleets from our business partners. This will help the fleets to drive safely, efficiently and get the maximum performance from the tyres.” Fleets will soon need to deal with the long, hot summer months that the KMAX Extreme has been designed to deal with. Kohaupt concludes the interview by giving his own advice on how to deal with the rise in temperatures. “During warmer temperatures, it is important to take several steps that will ensure the safety of your tyres. The simple solution is to check the right inflation pressure in your tyres,” he remarks. “Accordingly, regular check-ups for the tyre pressure and the condition of the tyres (cuts/cracks etc.) are necessary all-year around (for passenger monthly check-up is recommended).” APRIL 2018 TRUCK&FLEET ME 35
TECHNOLOGY
UtilitiES: MakE thE MoSt of EVS Frederic Abbal, EVP – Infrastructure, Schneider Electric, on a surge in sales
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lectric utilities and other power networks are in a unique position when it comes to improving sustainability. That’s because they have the ability to not just control their own carbon footprint but also promote more efficient, sustainable energy use for consumers. They can improve sustainability and decarbonise to mitigate climate change while still supporting their consumers’ growing needs ranging from smooth, efficient integration of electric vehicles into the grid to better energy accessibility. There is impressive growth in electric vehicle (EV) use as consumers seek greener, emission-free transportation. In 2016, there were record-breaking sales of EVs worldwide, and that growth is expected to continue. Some predict that one in six new cars in the world will be electric by 2025. How will this explosion in EV popularity benefit utilities? It’s a huge opportunity because EVs need charging stations and other essential power infrastructure and will depend on utilities to provide energy from renewable power
36 TRUCK&FLEET ME APRIL 2018
sources and maximize off-peak charging energy use. Because of these needs, EVs will contribute to an efficient, cleaner, digitised energy system and infrastructure that is customer-centric while also furthering utilities’ climate change goals. Utilities are also focusing on a different sustainability challenge—how to decarbonise energy while expanding electrification and promoting efficiency in developing and rural regions of the world. In many regions, microgrids and clean, low-carbon power sources like solar, are the most practical power options – and the most sustainable. Digital technology plays a key role in the solutions for new energy world problems because a smarter, data-centered grid allows better use of renewable resources and improves overall grid performance. Distributed energy resources (DER) like solar and wind continue to gain strength and popularity – BNEF predicts that solar and wind will dominate the future of electricity, with 72% of the $10.2 trillion spent on new power generation worldwide to 2040 being invested in new wind and solar PV plants. But to optimise grid assets today, utilities
Some predict that one in six new cars in the world will be electric by 2025”
must push the current boundaries of these sources of power. This requires a data-focused infrastructure that gives utilities flexibility and control capabilities and an understanding of real-time grid conditions. Digitisation makes a major sustainability impact by optimising grid operations and integrating IoT, IT, and OT systems. It’s clear that the explosion of EV and DER onto the electrical grid requires more sophisticated distribution utility operating systems. They’ll need real time operations and control to thrive within a more dynamic power distribution marketplace than we have ever seen. To stay competitive, utilities also need to rethink their business models. The future is low carbon and there are many advantages to adopting sustainability initiatives – including substantial economic returns for low-carbon investments, lasting market viability, competitiveness, and resiliency. To learn modern strategies for leveraging smart grid tools that will help meet these challenges, you can can download the Smart Distribution Utility Strategies that Maximise Grid Efficiency white paper at: schneider-electric.com.
1 – 3 May 2018 www.automechanikaDubai.com
The largest international trade exhibition for the automotive service industry in the wider Middle East Some compelling show figures: 1,955 Exhibitors 30,322 Trade Visitors 25 Official Country Pavilions
57 Exhibiting Countries 136 Visiting Countries 38 International Trade Associations
Register online to visit at www.automechanikaDubai.com/TF
EVENT PREVIEW
FEEling OpTimisTic
Dubai Expo 2020 sparks fresh optimism in UAE automotive aftermarket
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he upcoming Dubai Expo 2020 has sparked fresh optimism in the UAE automotive aftermarket, with international manufacturers gearing up for new business opportunities as final preparations fall in place ahead of the global mega event. The Middle East’s first ever World Expo is expected to attract more than 25 million people from across the globe, while a price tag of at least $9 billion suggests the host Emirate is pulling out all the stops to create state-of-the-art facilities and infrastructure. With $3 billion worth of venue-related construction contracts awarded in 2017 alone, the increase of commercial and heavy-duty vehicles along with cars is expected to effect a corresponding rise in demand for spare parts and accessories, tyres and batteries as well as a host of maintenance and upkeeprelated infrastructure and services. The business potential has injected new impetus for international players in the auto services industry, with more than 1,900 from 57 countries preparing to showcase 38 TRUCK&FLEET ME APRIL 2018
their latest products and services at the 16th edition of Automechanika Dubai in 2018. Companies exhibiting at the threeday event, which takes place from 1-3 May at the Dubai International Convention and Exhibition Centre, are targeting large-scale business growth up to, and beyond the six month global showcase. UFI Filters from Italy is a debut exhibitor at Automechanika Dubai 2018, and will shine the spotlight on its full range of air, oil, fuel, cabin, hydraulic and coolant filters for the automotive sector. Luca Betti, Group Aftermarket Business Unit Director at UFI Filters, said the company recently reinforced its Dubai office to boost customer service support as business ramps up in the UAE, and regionally. “UFI Filters expects a big boost in the automotive industry deriving from the large investments in infrastructure not only related to the Expo 2020 Dubai, but in other areas as well,” said Betti, whose UFI Filters can be found in many applications, from Ferrari Formula 1 racing cars and other top F1 teams
The Dubai Expo 2020 will act as a global hub for innovation and collaboration, and as such, will have a highly positive impact on the regional automotive aftermarket”
to the European ExoMars spacecraft. “The reinforcement of our Dubai office team will support the development of UFI Filters business in the Middle East and Africa, which is a key pillar of our three year plan. Renowned for its innovation, UFI Filters meets the needs of nearly all car brands and motorcycles as well as commercial, heavy duty and agricultural vehicles,” added Betti. Autopumps from the UK is another firsttime exhibitor at Automechanika Dubai 2018, and will introduce its aftermarket commercial and industrial pumps range. Bill Cotton, Owner and Managing Director of Autopumps, said: “The Dubai Expo 2020 will act as a global hub for innovation and collaboration, and as such, will have a highly positive impact on the regional automotive aftermarket. “Through bringing industry leaders, decision makers and great minds together, these events facilitate conversations that enable development and forward thinking in our industry both regionally and globally. But Cotton cautioned: “Unprecedented decisions on time scales relating to new
EVENT PREVIEW
A gLobAL EVENT Automechanika Dubai’s global influence is highlighted by the presence of 25 country pavilions and 36 international trade associations, while 90 per cent of exhibitors, and 52 per cent of the 30,000-plus visitors are expected to come from outside of the UAE. The annual showpiece will return with its popular Truck Competence initiative, where more than 1,500 exhibitors will showcase their products dedicated to the entire value chain in the truck sector, from truck parts and accessories, to workshop equipment, body repairs and care. It will also feature the popular Automechanika Academy – a series of seminars, presentations, and workshops about key issues and regulations that affect the automotive aftermarket, and the African Buyer-Seller Meet, connecting suppliers with buyers from the world’s second largest continent.
THE EXPo 2020 DUbAI EffEcT The Expo 2020 Dubai will act as a global hub for innovation and collaboration, and as such, will have a highly positive impact on the regional automotive aftermarket.
and emerging technologies may result in negative reactions regionally, so more clarity must be given with realistic time frames, factoring in the building of infrastructure.” South African exhibitor Supreme Springs is a prominent manufacturer of coils, leaf springs, torsion and stabiliser bars for the OEM sector, and will be at Automechanika Dubai 2018 to expand its aftermarket business. Gino Singh, Supreme Springs’ aftermarket sales manager has followed the Expo 2020 closely since it was announced to take place in Dubai. “At this point, we’re of the opinion that the Dubai Expo 2020 will certainly grow the volume of production in the auto aftermarket as there’ll be more companies willing to enter the market,” said Singh. “The
STARTINg To SPARk The increase of commercial and heavy-duty vehicles along with cars is expected to effect a corresponding rise in demand for spare parts and accessories, tyres and batteries.
We’re of the opinion that the Dubai Expo 2020 will certainly grow the volume of production in the auto aftermarket”
presentation that I’ve seen is very positive and I have been following the project.” Organised by Messe Frankfurt Middle East, Automechanika Dubai is the Middle East and Africa’s largest exhibition for the automotive aftermarket and services industry. Long-time exhibitor ALCO Filters from Cyprus has generated US$10 million of new business revenue since it started exhibiting at the show in 2006. Loizos Louca, ALCO Filters’ Managing Director said with the advent of the Dubai Expo 2020, business will only likely improve. “The Dubai Expo 2020 will obviously create an infrastructure boom that will drive the construction industry and thus the heavy duty filter industry upwards,” said Louca. “Also this will have a ripple effect into the automotive aftermarket in the GCC region.” Automechanika Dubai 2018 spreads over six product sections of Parts & Components; Electronics & Systems; Accessories & Customising; Repair & Maintenance; Car Wash, Care & Reconditioning; and Tyres & Batteries. Ahmed Pauwels, CEO of Messe Frankfurt Middle East, said: “Mega events such as the Dubai Expo 2020 do have a multi-sectoral impact on the region with the increase in expenditure for new infrastructure, support systems, logistics and commercial facilities. “The impact is reflected among exhibitors at Automechanika Dubai 2018, many of whom are anticipating an injection of aftermarket products and services demand, with the expected rise of vehicle parc. It may also favourably impact Dubai’s total auto parts trade in the coming years, which in 2016, was worth $10.6 billion,” Pauwels added. APRIL 2018 TRUCK&FLEET ME 39
PARTING SHOT
The big pArAde GMC sets a new world record in partnership with Abu Dhabi Police
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s part of last month’s GCC Traffic Week, GMC Middle East broke its own Guinness World Records title for the ‘largest parade of GMC cars’, in partnership with Abu Dhabi Police. Held at Yas Marina circuit in Abu Dhabi, 191 GMC vehicles gathered to form over a 4km-long parade on the famous Formula One race track. The parade was led by a 2018 6.0L V8 GMC Sierra Denali which valiantly pulled a 30m flag displaying a photo of the late Sheikh Zayed, to commemorate the UAE’s Year of Zayed. The previous title for the largest GMC parade which was previously set on 3 November 2012, by Mohammad Saleh and Reza Yousuf Behbehani Co – GMC dealers in Kuwait. For the attempt GMC, Kuwait gathered 181 GMC vehicles at the 7th Ring Road, in Kuwait. The new world record title was officiated by representatives from Guinness World
Records and set by GMC customers and members of the GMC UAE Club who proudly showcased their own models on the track. Representatives from Abu Dhabi Police, GMC Middle East and Bin Hamoodah Auto – GMC dealer in Abu Dhabi – were on the ground to support the record-breaking event. In line with the continual efforts by the UAE authorities to improve traffic and reduce accident rates, the event aimed to shed light on traffic risks while raising awareness of road safety among motorists in the UAE. Abu Dhabi Police hosted a youth circle titled ‘Your Life is Precious’ about over speed and traffic accidents, in participation with the Emirates Youth Council. Captain Abdulla Saleh AlJneibi, member of Abu Dhabi Police Youth Council, said: “We welcome the participation of the Emirates Motor Sports Federation (EMSF) in the youth circle that aims at consolidating the relationship between the police and sports cars owners as they represent
the youth community in the country. While one of our key roles at Abu Dhabi Police is to raise awareness about road safety, we are taking part to also commemorate the UAE’s Year of Zayed as the convoy carries around the race track of a giant flag displaying the logo of this year’s initiative.” Sajed Sbeih, head of brand, GMC, at General Motors Middle East, said, “It is such a great honor for the people of the UAE to celebrate the Year of Zayed and show this pride to a global audience. The record would not have been achieved without the significant contribution from the police and GMC owners and fans who came together at Yas Marina to create the world’s largest parade of GMC vehicles. “I would like to thank Abu Dhabi Police and our local partner in Abu Dhabi Bin Hamoodah Auto for making this outstanding achievement possible. GMC is all about professional grade and we always strive to make extraordinary achievements to further enrich the brand’s heritage,”Sbeih added.
NEXT ISSUE: A SPECIAL LOOk AT THE AfTERMARkET, WHAT TO SEE AT AUTOMECHANIkA DUbAI 2018, THE bIG 5 HEAvy ROUND-UP!
40 TRUCK&FLEET ME APRIL 2018
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The newly equipped MAN Lion’s Coach is more attractive and dynamic than ever. As efficient as it is powerful, the Lion’s Coach is fitted with everything a cost-effective coach could need, making it the ideal backbone for any fleet. Thanks to MAN’s extensive experience as a manufacturer focusing solely on commercial vehicles and its wide-ranging service portfolio, the Lion’s Coach guarantees a high degree of vehicle availability and utilisation. In short, it’s a lion you can rely on – whatever the route. www.man-middleeast.com
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r l 10. A p b e e 5D th Z a a n d t t 25 u s a 2 - s o r l d t r e . t W si e i en Vi rs ba C u u D ade Tr
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THE NEW MAN LION’S COACH – EFFICIENCY IN MOTION.
PERFECT CROSSING
BEST PAYLOAD IN THE INDUSTRY Payload up to 20 ton on a 6x4 chassis with Large “C” section chassis
CONTINUOUS OPERATION Higher autonomy thanks to the Cursor engine that allow to reduce fuel consumption
ON-ROAD EXCELLENCE. OFF-ROAD ENDURANCE.
OUTSTANDING TCO Thanks to 11.2% fuel saving tested by TÜV on the New Stralis, optimised driveline and disk brakes
MODULAR AND MISSION-ORIENTED RANGE New front axle (off road) that guarantee an higher ground clereance Robust chassis for light off-road missions