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contents
contents SPECIAL INTERVIEW
16 / WhAT A VAN CAN do foR you New urban centres and the role of the van.
also this issue … NETWoRK & LAuNChES
06 / TRuKKIN LAuNChES
10
06
App-Powered logistics arrives in the UAE and Saudi Arabia. INTERVIEW
12 / food foR ThoughT How McDonald’s UAE took its biodiesel pilot scheme to fleet-wide scale. dRIVER SAfETy
24 / TIME To ENgAgE
36
12
Not all driver safety solutions have to cost a fortune to implement. PRoduCTIoN
30 / BACK fRoM ThE BRINK How one German manufacturer has been revitalised and is targeting the Middle East. ShoW PREVIEW
33 / A MATERIAL WoRLd Preview of this month’s Materials Handling 2017 event in Dubai. WhITE PAPER
24
36 / CLoudEd ThINKINg Sierra Wireless says that IoT may be the only way to meet changing regulation. PARTINg ShoT
40 / SELf-CoNTAINMENT Self-driving trucks will make container transports more efficient.
28 SEPTEMBER 2017 TRUCK&FLEET ME 01
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Time To engage wiTh drivers In the frantic short-hand and time-poor world of headline news writing, it is common currency to write headlines such as Driver killed after sedan crashes into back of flatbed truck (taken from an August headline of a New York news service). This is frequently because the full details of what’s happened are not known or not released by the police authorities at the time. It could be days, weeks, months or years before the same newspaper, TV news service or website comes back to it with the full story. So the casual reader – most of whom will only take in the headline – will have a small moment to contemplate it, maybe look at the horror show picture that’s under it, and then move on. Time and time again, we read these stories and then quickly discard them and the sum total of thought will be that truck drivers kill others and other people without a consideration for why it happened in the first place. I’m noting this down this month as part of my comment because I’ve realised that there could be a disconnect between how the behaviour of the commercial vehicles and fleet industry is viewed and the reality of what it looks like on the inside. However at the same time, it is a given that most people on all sides will put the blame firmly on the shoulders of drivers when an incident occurs. But that’s the easy way out. This month, among many other things, we cover a recent webinar on the topic of driver engagement and again the spotlight is on the performance of our drivers. Universally, it has been recognised that, even in this age of technological advances, the driver remains the most important element to change if fleets are going to improve their safety records. However, we can’t ignore the reality that poor driving is only the tip of the arrow. Behind their drivers, fleets must be doing better in creating a culture in which they can excel. It is not enough to just to believe that when driver error is recorded after an accident that the story ends there. Give drivers the training and the confidence to be better on the roads. Realise that individuals sometimes need more than the stick. By praising and bolstering their confidence and by being prepared to take out drivers that aren’t up to the task, the headlines won’t need to be written. We would also be on a stronger footing when engaging with the other stakeholders on the road.
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Arabtec wins $171m Damac Akoya Oxygen contract
The article by Craig Ross on fire safety issues (“Grenfell Tower: Lessons from a tragedy,” August 16) was certainly timely. There were several differing factors behind the tragic fire in London in June as compared to the string of incidents in the UAE – including the Tamweel Tower fire back in 2012, Address Downtown and not to mention the blazes at the Torch. But there are certainly still some vital lessons for all to consider. There are some good fire-safety regulations in place in the UAE. But as Mr Ross rightly points out, site quality control checks are key to ensuring that this translates into best practice on the ground.
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Nakheel awards Deira Islands contracts worth $117m
In pictures: Serenia Residences on Dubai’s Palm Jumeirah under construction
CONSTRUCTION
Majid Al Futtaim to build $117m City Centre Sohar
CONSTRUCTION
ALEC wins Jumeirah Living Marina Gate contract
CONSTRUCTION
Dubai’s Drake & Scull removes CEO, narrows loss 04 TRUCK&FLEET ME SEPTEMBER 2017
Video: See what you missed last year at Cityscape global
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NETWORK
REGIONAL LAUNCH FOR TRUKKIN / LIBERTY AUTOMOBILES GM RECOGNITION / LEAF E-PEDAL LAUNCH / AFM AND SAAED DEAL / THE BOX HAILS TRANSIT CONTRIBUTION
network
Region-wide launch for Trukkin LOGISTICS Trukkin Middle East has formally launched its new cloud-based B2B platform for customers and shippers. According to Trukkin, it is offering a new channel of business development for fleet owners and individual drivers. The platform enables on-demand logistics services for its clients, who can request bids from fleets via the app or on the web portal. “We’ve launched Trukkin with the mission of making it the preferred regionwide logistics enabler by
providing a state-of-theart mechanism to connect suppliers and clients,” said Janardan Dalmia, Trukkin’s CEO. “Trukkin answers a genuine industry need for greater transparency, choice of providers and the ability to request transport services from available fleets.” Trukkin developed the platform after extensive onthe-ground market research, working very closely with partners from Saudi Arabia. “We have honed the user journey to make registration, placing orders, accepting bids, and making payments
very simple, leading to an excellent user experience from start to finish. I am extremely confident that Trukkin will enhance and simplify logistics across industries in the whole GCC region,” he added. Trukkin is headquartered in Dubai with offices in Saudi Arabia and India and was founded by Dalmia and business partner Ahmed Al Nafie. The Trukkin ecosystem comprises a multi-lingual customer app on iOS and Android, and a web portal. Fleet owners and individual drivers can
also take advantage of the multi-lingual online portal and apps. Customers, fleet owners and independent drivers all register on the platform after going through a verification process. Customers have a variety of in-app methods to offer payment. They= and fleet owners can also track their shipments in realtime through Trukkin’s tracking system. The Trukkin team also provides clients with operational support throughout the transaction experience.
BCC RESEARCH SAYS GROWTH IN THE BODY, CAB AND CHASSIS SPECIALITY MARKET SLOWED IN EUROPE, MIDDLE EAST AND AFRICA TO 1.7% IN 2016
06 TRUCK&FLEET ME SEPTEMBER 2017
NETWORK
LEAF E-PEDAL COMING SEPTEMBER
Liberty AutomobiLes nAmed GrAndmAster DEALERS
Liberty Automobiles – the exclusive dealership for Cadillac in the UAE, and the General Motors (GM) dealer for Chevrolet, Opel and AC Delco – has been named a ‘Grandmaster’ of General Motors International. The top honour was recently presented to Liberty Automobiles at Cadillac House – the new home of General Motors’ American luxury brand in the heart of New York City – where 116 dealers from 13 markets gathered to celebrate the global successes of the group. Now in its 14th year, the Grandmasters programme was created to reward the best dealers withinGeneral Motors International for their excellence. Winners were selected based on customer satisfaction, service, vehicle and parts sales, and facility standards, and judged on both the quantity and the quality of their operations. “We are honoured to have been recognised with this award, which reflects our dedication to upholding the high quality standards of General Motors and continuously improving our services for the benefit of UAE customers,” said Rimoun Hanouch, Group General Manager at Liberty Automobiles. “We strive for excellence and are proud to have raised the bar in the automotive sector; this important award will motivate our team to make even greater efforts.” This year’s participants included the highestperforming dealers from the Middle East, Australia, New Zealand, Japan and Southeast Asia. During the Grandmasters event in New York, they engaged in a series of business meetings and team-building activities, and received company updates and speeches from Stefan Jacoby, president of GM International; Mike Devereux, GM International VP of sales, marketing and aftersales; and Mike Simcoe, GM VP of Global Design. The Grandmasters accolade recognises the integral part that Liberty Automobiles has played in General Motors’ UAE growth story, and “celebrates the company’s excellence in providing services that uphold the group’s scrupulous quality standards and deliver an outstanding car-buying and ownership experience.”
LAUNCH Nissan has announced that the widely anticipated new Nissan LEAF with e-Pedal will come to the region in early September. With the flip of a switch, the technology turns your accelerator into an e-Pedal, allowing drivers to accelerate, decelerate and stop using just the e-Pedal. e-Pedal technology is the world’s first one-pedal operation that allows drivers to bring the car to a complete stop even on hills, stay in position, and resume driving instantly.
Drivers can cover 90% of their driving needs with the e-Pedal, making the process of driving more exciting. In heavy traffic and during city commutes, drivers will greatly reduce the need to shift from one pedal to the other, making your drive simpler and more engaging. By launching the LEAF, the world’s first mass-market electric vehicle, Nissan established itself as pioneer in the EV movement. Today the Nissan LEAF is the world’s best-selling electric vehicle, with more than 277,000 sold worldwide.
IONIQ IS BEST vALUE Ev HYBRIDS The Hyundai IONIQ Electric has been crowned as the ‘best value’ electricallypowered car, according to a new survey by German car magazine Auto Bild. The IONIQ Electric held an impressive 60.65% of its projected residual value after four years, based on an annual mileage of 10,000 kilometers. The study was conducted by Auto Bild and market intelligence consultancy Eurotax Schwacke. In another accolade for Hyundai, the IONIQ Hybrid also ranked
among cars that holds their value best. The world’s first car to have three electrified powertrains – hybrid, plug-in, and electric – the Hyundai IONIQ comes with a comprehensive five-year unlimited mileage warranty. “With Middle East customers posting strong demand for electric cars, the IONIQ provides an ‘eco car’ that doubles as a financially-sound purchase,” said Mike Song, head of Middle East and Africa Region at Hyundai Motor Company.
SEPTEMBER 2017 TRUCK&FLEET ME 07
NETWORK
DAIMLER 3D PRINTS FIRST EvER SPARE METAL PART
PRODUCTION
Mercedes-Benz Trucks has successfully completed the first ever 3D printing of a spare part made of metal. The part, a thermostat cover for truck and Unimog models from older model series, has passed all the stages of the stringent quality assurance process at Mercedes-
Benz smoothly, and is now celebrating its premiere. “With the introduction of 3D metal printing technology, Mercedes-Benz Trucks is reasserting its pioneering role among global commercial vehicle manufacturers,” said Andreas Deuschle, head of marketing and operations in Customer Services & Parts at MercedesBenz Trucks. “We ensure the same functionality, reliability, durability and cost-effectiveness with 3D metal parts as we do with conventionally produced parts.” The Customer Services & Parts division of MercedesBenz Trucks, first automotive began 3D printing parts last year. Since then, Customer Services & Parts has worked together with the researchers and pre-developers at Daimler AG to constantly improve and expand the use of the latest 3D printing processes for plastic parts. According to the company, “3D printing of high-quality plastic components has now successfully established itself as an additional production method, and is particularly suitable for the production of smaller batches.”
THE BOX CEO HAILS FORD TRANSIT DELIvERIES Wadih Haddad, founder and CEO, of Dubai-based storage and moving company The Box says his company opted for the Ford Transit Custom after being impressed with its flexibility. In its ten years of operations, The Box has grown across four cities in three different countries, serving more than 30 facilities, and has welcomed more
than 50,000 customers. Planning, packing and storing, The Box prides itself on enabling businesses and homes to choose from a variety of individual lockable storage units to comprehensive moving solutions – be it local or across continents. Haddad explained his company’s elevation to the status of a Dubai SME 100 company, gave it the scope to grow as a business but it needed a vehicle
that could adapt to the needs of its customers. “Every move is unique, so it helps to have a practical and reliable vehicle that’s versatile,” said Haddad. “Those key attributes, added to an exceptional load space and reassuring five-star safety rating make Transit an ideal fit.” The Ford Transit has become one of the most iconic cargo vans in the world since first going into production in 1965.
AL-FuttAim motors to Look AFter sAAed’s toyotA FLeet DEALS
Al-Futtaim Motors, the exclusive distributor of Toyota in the UAE, and SAAED, a prominent traffic safety services organisation in the UAE, have signed a partnership agreement that will see all service and spare parts work for SAAED’s fleet of Toyota vehicles being carried out by Al-Futtaim Motors. “Our relationship with SAAED has been reinforced with the signing of this agreement, which will allow Al-Futtaim Motors to continue delivering premium service and genuine spare parts to meet SAAED’s ongoing efforts in managing traffic and road incidents in the UAE,” said Saud Abbasi, managing director of Toyota at Al-Futtaim Motors, in a statement by the company. Ibrahim Raml, CEO, SAAED, said: “This agreement cements our strategic partnership with AlFuttaim Motors, as the successful collaboration is based on the quality of services and products provided. “Our Toyota fleet at SAAED is equipped with the latest technologies and a dedicated service carried out by Al-Futtaim Motors’ trained technicians is a must to ensure it is maintained according to the manufacturer’s standards.” Al-Futtaim Motors added that it has previously enjoyed a partnership with SAAED after it joined the company and Abu Dhabi Police to support their ‘Traffic Safety Awareness Initiatives & Events 2017’ programme earlier this year.
AL-FUTTAIM MOTORS HAS PREvIEWED THE LAUNCH OF THE 2018 TOYOTA COROLLA, WITH WHAT IT DESCRIBES AS TWO EFFICIENT AND ENJOYABLE ENGINES
08 TRUCK&FLEET ME SEPTEMBER 2017
NETWORK
NISSAN KSA APPOINTS NEW COO
Ats worLd scoops sixth cmA AwArd TRANSPORTATION
ATS, one of the UAE’s leading integrated logistics and supply chain company recently received the Top Customer Award for the sixth consecutive year from French shipping company CMA as a token of their support in 2016 The ‘Top Customer Award’ was presented by CMA General Manager Alain Aurosseau, to Amit Gandhi - CEO ATS World and Santanu Datta, director, ATS World as a token of their continuous support in 2016. “We wish ATS World all the best in your future endeavours and look forward to the continued partnership and growth between both our organizations for years to come,” said Santosh Devasper, commerical manager, CMA CGM and ANL (NE).
DISTRIBUTION Nissan Saudi Arabia has appointed Bader El Houssami as its new COO. Based in Jeddah, Bader takes over responsibility for day-today operational functions as the company continues to consolidate its robust position within the Kingdom’s fiercely competitive automotive market. Bader gained much of his experience in both the Kingdom and the wider Gulf
region with General Motors, including as head of operations at MEBCO Middle East and Africa, a JV manufacturing batteries for GM’s AC Delco brand in Damman. A graduate in business studies specialising in marketing from Beirut University College in his native Lebanon, 48-yearold Bader has an impressive track record in the automotive industry and a wealth of experience in KSA. His
appointment comes at a time when the Saudi market assumes ever greater significance for Nissan’s Middle East business. “Bader’s CV and track record in the industry speak for themselves,” said Kalyana, Sivagnanam, Nissan’s regional VP for Marketing and Sales. “We are confident that he will make a significant contribution to maintaining Nissan KSA on its current trajectory of continued sales growth.”
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SEPTEMBER 2017 TRUCK&FLEET ME 09
LAUNCHES
REDESIGNED HYUNDAI SONATA MAKES ITS DEBUT IN MIDDLE EAST AND AFRICA / AFM PREVIEWS 2018 TOYOTA COROLLA AND ITS NEW AND EFFICIENY ENGINE
launches
GDI’S EXTRA POWER TURbo GDI 241HP
Top rank Sonata launches in Middle East MID-GEN REFRESH FOR GETS SURPRISINGLY THOROUGH OVERHAUL
The redesigned Hyundai Sonata has officially arrived in the African and Middle East markets, with a dramatic new exterior design, an impressive list of standard safety features, and new engine and transmission options, once again setting the standard in the mid-size sedan segment. Created at Hyundai’s California Design Studio, the 2018 Sonata builds on the model’s strong legacy, while distinctive new exterior styling transforms Sonata’s visual signature. The dramatic new appearance is highlighted by Hyundai’s bold new ‘Cascading Grille’
in front, and an all-new rear with more prominent branding and relocation of the license plate from the trunk lid to the bumper. New sheet metal for the sculpted hood, front fenders, and trunk makes the dynamic new look possible. In addition, redesigned alloy wheels (16, 17, and 18-inch) and distinctive illumination from vertical LED daytime running lights, LED headlights, and LED taillights further highlight the assertive and advanced exterior design. The low and wide radiator grille makes the hood appear longer and sleeker, which
10 TRUCK&FLEET ME SEPTEMBER 2017
is counter balanced by the raised trunk lid, shifting the side profile architecture to a more dynamic attitude. “We are calling this, ‘Sonata, the Reborn’ because the changed look of the car is so radical, and represents such a big step in moving Hyundai’s design credentials to the front of the market,” said Hyundai’s Head of Operations for Africa and the Middle East, Mike Song. “Hyundai is investing far more in the Sonata than would normally be expected of a mid-generation update. Every panel forward of the front screen is new, while
changes to the rear bumper and trunk lid give the back of the car a completely new look. There are also subtle changes to the body’s side profile – including a redesigned panel for the sill under the door, and a revised chrome trim that frames the windows and runs along the front fender to wrap neatly under the headlamp. Together, all these elements create a car that looks far more dynamic, longer and wider.” At its launch in 2014, the current LF-generation Sonata was the latest interpretation of Hyundai’s
LAUNCHES
aFM unveils More eFFicient corolla
AFM CLAIMS 2018 MODEL OFFERS UP TO 27% BETTER EFFICIENCY THAN RIVALS
EqUIPPED FOR SAFETY Every 2018 Sonata can be equipped with blind Spot Detection (bSD) with Rear Cross-Traffic Alert (RCTA), and front and rear Parking Assist (PAS).
MORE THAN A MAKEOVER The 2.0T is mated to a new 8-speed automatic transmission for improved performance and efficiency.
‘Fluidic Sculpture’ design language – a unifying set of principles that have underpinned Hyundai’s transformed credentials for design in recent years. Sonata, the Reborn shows how Hyundai is building on that success, evolving from ‘Fluidic Sculpture’ into a new set of concepts which it defines as ‘Modern Premium’. Very importantly, Sonata, the Reborn
shows that Hyundai is not going to wait until it has an allnew generation of a current model before giving its customers something new. “We have one of the best design teams in the industry, not just in Korea but in Europe and North America as well, and ‘Sonata, the Reborn’ is a superb demonstration of what they can achieve,” said Song.
Al-Futtaim Motors has announced the launch of the 2018 Toyota Corolla, with what it describes as “two efficient and enjoyable engines”, including a choice of 1.6l and a 2.0l four-cylinder engines, “combining great fuel economy with driving pleasure”. Keeping the dynamic and modern design unveiled with the 2017 Corolla, the latest iteration of this regional favourite features a premium interior, fuel efficiency offering up to (it is claimed) 27% better efficiency than its nearest competitor thanks to its efficient engine choices and the Multi Drive 7S transmission, in addition to a host of new standard safety features across the range. “For more than fifty years, Corolla has been the workhorse that many Emiratis have depended on for their daily commutes around the UAE. It is a symbol of the quality, durability and reliability that has become synonymous with Toyota,” said Saud Abbasi, managing director of Toyota at Al-Futtaim Motors. “For 2018, customers can expect to get even more value for their money, with more engine choices, more grades and a host of standard features that will make their driving experience even more enjoyable, while maintaining Corolla’s legendary fuel efficiency and driving pleasure.” The 2018 Corolla comes with a host of new standard safety features,
including Vehicle Stability Control (VSC), Tire Pressure Warning System (TPWS) and Rear Fog Lamps. The Corolla SE 1.6l comes with Wireless Door Lock, 4-speaker Audio with CD, Auxiliary, USB and Bluetooth, steering wheel controls for audio and telephone, Dual Front Airbags, Cruise Control, and Rear Parking Sensors. The Corolla SE+ 1.6l adds 15-inch alloy wheels, while the Corolla Limited 1.6-litre comes with 16-inch alloy wheels, a leather-trimmed steering wheel, Smart Entry and Push Start Button, Optitron speedometer with TFT Display, front fog lamps, folding door mirrors, chrome door handles, and a 6-speaker sound system. The top of the range 2.0l Corolla Limited comes with standard Daytime Running Lights (DRL), LED headlights, auto headlight levelling, sunroof and auto air conditioning. COST INFORMATION Prices start at AED 67,500 for the 1.6l Corolla SE, AED 69,900 for the 1.6l Corolla SE+, and AED 73,900 for the 1.6l Corolla Limited. The 2.0l Corolla SE is priced at AED 71,500, while the 2.0l Corolla SE+ comes in at AED 74,900, and AED 78,900 for the 2.0l Corolla Limited.
DRIVE LONGER 27% bETTER EFFICIENCY
MIDDLE EAST OPTIONS Engine Sizes
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2.0T GDI Power
241hp
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Twin-scroll turbocharger
Transmission
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(150hp non-turbo)
SEPTEMBER 2017 TRUCK&FLEET ME 11
INTERVIEW
FAst Food For thought
Walid Fakih of McDonald’s UAE explains how it took its biodiesel project to scale
A
decade ago, biodiesel appeared to be the cure-all fuel to solve heavy vehicle emissions. Millions were poured into its development across the globe. Riding high on a heady cocktail of political momentum, subsidies and investment, farmers turned fields that were once there to be harvest to feed people were set-aside to fuel vehicles. However, this caused the price of food like corn to dramatically rise and nations such as Mexico saw rioting in the streets as people realised that they were poorer because of it. While its use has slowed, other technologies have since matured, such as hybrids and fully electric vehicles, and are now close to being feasible alternatives to traditional fuels for heavy vehicles. However, biodiesel remains a viable fuel if it is used on a limited scale and works in a closed-loop fashion. In the Middle East, it is being pioneered by a handful of companies, including Emirates Fast Food Company which represents McDonald’s in the UAE. The company, working alongside Neutral Fuels, which is part of the Neutral Group based in the UK, was one of, if not the first, to use it on a fleet-wide scale in the region.
12 TRUCK&FLEET ME SEPTEMBER 2017
“The concept of converting cooking oil to biodiesel existed before but had never been done commercially in this region,” begins Walid Fakih, general manager of McDonald’s UAE. “So, Neutral Fuels set-up this facility and approached McDonald’s Corporation and said they would like to partner with the brand on this project. Ideally they wanted a Gulf country, and specifically the UAE. It is geographically a good location plus it makes bigger news when you have this kind of project in a high oil producing country.” Fakih says that his company realised that, potentially, the technology presented by Neutral Fuels could help it move into renewable energy and reduce its waste. However, a period of due diligence where commercial terms needed to be thrashed out, including how much Neutral Fuels would charge, and importantly how the oil would be used was required. “It’s McDonald’s we’re managing and operating here, one of the biggest brands in the world, so we had to make sure we were partnering with a legitimate company and work out who we were going to track what they were doing with our used cooking oil,” he says. “We had to know entering into this partnership that we were doing
We’ve learned a lot about this kind of industry. And you know what? We’ve also learned about the quality of our oil. It has made us realise that we have been doing the right thing in respect to oil usage in the restaurants”
it right and confident in our partner.” Fortunately, the discussions with Neutral Fuels proved productive and the company was confident it would be able to know down to the individual container how the used cooking oil was going to be handled. By the middle of 2011, McDonald’s UAE was on-board, ready to cooperate and hopeful it could help lower its carbon footprint. “When we were presented with this initiative we grabbed it by the horns,” he says. “It was clear that they would be the perfect partner to help us become the first food company in all of the Middle East and North Africa to spearhead a project like this.” Interjecting before T&FME can ask a question he has heard many times from jaded journalists: “Sometimes how much money did you save? is the first question people ask. In fact, we pay more money for biodiesel. The cost of operations and the charge that Neutral Fuels asks for the fuel, exceeds the cost of regular biodiesel. It had nothing to do with cost savings or being more efficient.” While it is now an integral part of the business, its supply chain and logistics management, he recalls the early months leading up to the pilot project which followed the initial green lighting of the initiative.
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“We did a lot of work before reaching the pilot stage. We had to design the container for the oil and tested transferring the oil without its full flow, things like that. Doing a lot of due diligence meant the pilot stage didn’t last too long.” While the pilot itself lasted a relatively short period of a few months, he says the time was crucial to ensure that the loop of oil being delivered to the restaurants, used, then returned for processing and storage was working properly. “At a company like McDonald’s, you have to make sure all the Is are given dots and the Ts have crosses. (Looking back) we were very efficient at making sure we did the pilot the right way making sure we had everything right before we added scale.” The initial pilot involved only a few out of McDonald’s Dubai restaurants out of its large chain of eateries in the country. They, in turn, were serving a couple of trucks which were then scrutinised to ensure that they were functioning properly. He adds that the trucks themselves didn’t need to be modified to handle the fuel that was being processed at Neutral Fuels plant. “It means that it is clean biodiesel,” he enthuses. The pilot also provided time to test how the operation would work in practice and whether the oil could be stored and shipped safely from each site. “We looked at the restaurant operation, when the containers would be picked-up and delivered. We had to also design a new container and ensure it could stand the heat of the oil when it is transferred from the vat to the container. It was about not only the
We had to also design a new container and make sure it could stand the heat of the oil when it is transferred from the vat to the container. It was about not only the concept but also the process and the people. It probably took us two or three before we said, ok, let’s go ahead and scale”
FooD FUEl SToPS Neutral Fuels’ processing plant is located close to logistics service provider Mohebi Martin Bower’s main hub.
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WhAT ARE BIoFUElS? Salman Zafar, founder of EcoMENA, on what qualifies as a biofuel “The term ‘Biofuel’ refers to liquid or gaseous fuels for the transport sector that are predominantly produced from biomass. A variety of fuels can be produced from biomass resources including liquid fuels, such as ethanol, methanol, biodiesel, Fischer-Tropsch diesel, and gaseous fuels, such as hydrogen and methane. The biomass resource base for biofuel production is composed of a wide variety of forestry and agricultural resources, industrial processing residues, municipal solid wastes and urban wood residues. “The agricultural resources include grains used for biofuels production, animal manures and residues, and crop residues derived primarily from corn and small grains. A variety of regionally significant crops, such as cotton, sugarcane, rice, and fruit and nut orchards can also be a source of crop residues. “The forest resources include residues produced during the harvesting of forest products, fuelwood extracted from forestlands, residues generated at primary forest product processing mills, and forest resources that could become available through initiatives to reduce fire hazards and improve forest health. “Municipal and urban wood residues are widely available and include a variety of materials — land-clearing wood residues, wooden pallets, organic wastes, packaging materials, and construction and demolition debris.” “Globally, biofuels are commonly used to power vehicles, heat homes, and for cooking.”
concept but also the process and the people. It probably took us two or three months before we said, ok, let’s go ahead and scale.” As we talk, he explains how the Neutral Fuels’ process converts 100% of the used cooking oil into biodiesel which is then used to fill a fleet of logistics trucks. Not owning its own fleet, it had to ensure that they could also rely on its third-party logistics to buyinto the initiative and be willing to convert. “In order to be successful, we had to ensure that we had a robust supply chain in place. Today, as McDonald’s we don’t do our supply chain and logistics, this is outsourced to a few companies that provides us logistics.” He explains that one of them, Martin Bower, which operates as a local logistics company under the Mohebi Martin Bower Logistics banner in the UAE, was a central part of the process with the processing facility set-up in close proximity to its own hub. “When a truck from MMBL delivers the buns, the patties, the French fries, etc, to a particular restaurant part of the delivery they drop off all the goods and an empty container,” he explains. “Before they leave the restaurant they collect one or two full containers of used cooking oil. On the way back, they are carrying back nothing but empty containers and pass by the Neutral Fuels facility. They drop-off the containers and collect empty ones before refilling the trucks with biodiesel. This way it’s a full 360 closed-loop, they’ve travelled from their warehouse to the restaurant and back again on biodiesel. It’s a routine they follow on every delivery and it’s seamless.” He adds that despite up to 15 trucks in operation at one time – ferrying deliveries and containers to the 158 restaurants across the UAE (“some have two deliveries per week, some have five or six deliveries per week,” he states) – the plant still produces a surplus. To ensure that it does not go to waste, the company has approached other suppliers or partners to allow access to their fuel stock. One company that arranges directly deliveries to clients in the retail and food and beverage sector has already dipped it toes into using the fuel, and he is hopeful another will soon come and start filling their tanks from the facility. “We asked them whether they would like to be part of this initiative and they are now on-board... We are in talks with another supplier, a big supplier to McDonald’s out in Abu Dhabi, to also run that fleet on biodiesel.” He is pleased to be able to see the fuel produced from its used cooking oil deployed with other companies on the McDonald’s supply chain, especially as volumes required by his company can fluctuate
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throughout the year. Six years down the line, he says, that the company continues to learn as its biodiesel fleet matures. “We’ve learned a lot about this kind of industry. And you know what? We’ve also learned about the quality of our oil. It has made us realise that we have been doing the right thing in respect to oil usage in the restaurants.” Referring to Karl Feilder the founder and CEO of Natural Fuels in Dubai, he says that the processing company has been impressed with the feedstock to the plant they have supplied. “He has tested used cooking oil from different countries both inside and outside of McDonald’s and he told us its great quality oil. There is still life left in the oil that we discard but we have certain standards that we are following here – some are our own, some are UAE standards – but having (good oil) makes the conversion to biodiesel more efficient and easier.” Having racked up 8 million km using biodiesel, recognition within the UAE has followed and the initiative has won McDonald’s and its partners several awards, including praise from the Dubai government. Walid is willing to admit that the biodiesel venture has been a useful PR tool but stresses that, at its core, it remains an ethical approach to business, where the benefits to the wider community are balanced with those for his organisation. He adds that it is also engaged with other campaigns such as Emirates Environmental Group’s own recycling efforts as well going into the communities and schools to discuss the environment and continue its successful tree planting programme (1,000 and counting).
CoNSTANT CoNTAINER RoTATIoN In classic logistics planning fashion, containers are constantly removed and replinished at the restaurants.
“The (concern for the) environment in this part of the world hasn’t caught up to Europe and the rest of the world. It is not at the forefront of their minds when they wake up. People aren’t used to companies here shouting out about CSR campaigns. It has been an opportunity for us to take advantage of that but it still feels good to something that is nice for the environment at the end of the day. Everybody working on this can be proud and tell people what we are doing.” Looking at the big picture in the UAE, he has seen an increase in environmental concern in the years that have passed since it set up the operation, particularly as social, economic and infrastructure development in the UAE heads towards goals outlined by the governments of Abu Dhabi and Dubai. He says: “At the beginning we were spearheading it from our corporate point of view, but now
sometimes how much money did you save is the first question people ask. In fact, we pay more money for biodiesel”
it is in line with the vision of the country.” Keen to continue on expanding its lower carbon and higher sustainability programme, Fakih says that the company has once again gone back to Karl Fielder and Natural Fuels to see what next step they should take. A review of reducing energy consumption in the restaurants has been frustrated by tight restrictions dictated by the equipment, the highest consumers of energy in the company, the operator is expected to use. “We keep running into challenges and we’re open to anything, but it has to make sense,” he says. “It must be something that economically and financially works for us. An increased cost can be absorbed to an extent but some of the things we have looked at don’t make sense. The main thing is we have the right approach and we’re talking to the right people.” As our conversation draws to a close, T&FME asks what advice he can give companies who are unsure of whether they should embark on their own alternative fuel and sustainability programme. “That’s a good question. When I look back to myself in 2011, I wasn’t as optimistic as I am today. I was being super-careful about everything and not willing to take some risks. But you learn from experience sometimes,” he says. “Once people know what you are doing, and it is something that is important to them, they look at you differently. They develop an emotional bond with you as a brand that maybe didn’t exist before. And that’s much more powerful than, say, a discounted meal that you offer for a few months. It lasts longer and has a much bigger impact.”
5-MINUTE Q&A WITh KARl W FEIlDER, CEo & ChAIRMAN, NEUTRAl FUElS What is the technology that is utilised in the UAE? We have two implementations which are based around custom technology that we at Neutral Fuels created; Transesterification and Enzymatic Catalysis. Transesterification is a chemical-based conversion process whereas Enzymatic Catalysis is a biologically based conversion process that uses a naturally occurring organism derived from a mould. Neutral
Fuels has actually achieved a world first with Enzyme Catalysis as the first people in the world to utilise this. Does Neutral Fuels own the tech and is it being used elsewhere? Our core equipment is produced in Europe, made of stainless steel in the UK using German components – this is used in many locations worldwide, but we have modified it to achieve our incredible production yields. Typically, biodiesel will be between a 65-75%
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yield, whereas ours is 95 – 97% yield. Currently, this core equipment is used elsewhere, but Neutral Fuels are the only ones using our modified versions with this incredible yield. There are plans to use our modified version of these technologies in other city-scale biodiesel projects in the future. Does this project show there is a role for it when used for recycling ‘waste’ oil versus growing crops
as a primary feedstock (which has drawn criticism in the past)? In 2003, the European Union mandated that ALL diesel must contain at least 5% biodiesel and today, 64 countries and seven states of the USA have mandated that some biodiesel must be added to ALL regular diesel to improve the lubricity of the diesel fuel. We at Neutral Fuels and McDonald’s UAE, have never and will never use virgin oils for making biodiesel. It is a
wrong decision to make environmentally and it doesn’t make any practical sense at all, especially in the reg as there aren’t any crops here currently that could grow as a primary feedstock. Currently in the region there is no way of growing a crop as a primary feedstock. There are, however, opportunities to grow other non-crops as biodiesel, eg. Algae and other inedible crops, but at the moment none of them are viable.
Wishing you a blessed and peaceful Eid Al-Adha. From our family to yours, Eid Mubarak.
INTERVIEW
At home
W
e live in an era where we are witnessing a shift in the types of journeys required by fleets across the Middle East region. In the absence of a region-wide freight network, the humble truck has served as the main carrier of goods from city-to-city and country-to-country. The long-promised GCC network should alleviate some of the traffic off the roads once it is up and running, but given the wide expanse and often remote locations to reach, trucks should remain the mode-of-choice for most distributors for years to come. However, increased urbanisation throughout the GCC region is already presenting a challenge for the distribution sector. Freeing time in his busy schedule, Roland Schneider, president and CEO of Daimler Commercial Vehicles MENA tells T&FME that he sees a role for vans to criss-cross our burgeoning urban and city environments. 18 TRUCK&FLEET ME SEPTEMBER 2017
with
“Vans are particularly convenient in urban environments so there is a direct correlation. More and more people are living in cities - by 2030 urban areas will be home to more than two thirds of the world's population,” he says. “It is clear that rising transportation requirements will need to be met even faster and more efficiently in future and, above all, in an environmentally friendly way. Vehicles with high cargo or passenger capacity such as vans are more convenient in cities, offering higher fuel efficiency, thereby contributing to more environmentally friendlier cities. Globally Mercedes-Benz Vans is proactively developing enhanced connectivity solutions that are especially advantageous for an urban operation.” Mercedes-Benz Vans, the manufacturer of vehicles such as the Sprinter and Vito, has enjoyed a long history in the region, he adds, offering its ranges via its authorised General Distributors and dealers for many decades. The company itself is part of Daimler Commercial Vehicles MENA (DCV MENA), which is one of six regional
As safety awareness increases, vans should be at the forefront of capturing potential clients looking for safer and more reliable vehicles”
centres the German company has located worldwide. From its surroundings in Dubai it is responsible for all the commercial vehiclerelated activities for Daimler in the Middle East as well as North Africa stretching across 19 countries from Morocco to Pakistan. In terms of the European OEMs currently active inside the MENA region, Schneider asserts that, “Mercedes-Benz is a benchmark in terms of product quality, safety and reliability. Our high customer satisfaction levels are testament to our service levels, and the great support we receive from our partners in the region.” Across the globe, the advent of e-commerce and online shopping, driven in many markets by Amazon, has seen a change in the way that vans are utilised. No longer the preserve of small retail businesses and contractors, the vehicles are increasingly being viewed as a viable solution. “Globally, we have seen a gradual increase in the use of vans and other commercial vehicles for social and domestic purposes,” says Schneider expanding on
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Mercedes-Benz Vans on how it is keeping pace with an evolving industry and region
its range the point. “Consumers are increasingly seeing the value of commercial vehicles as they are well-built, designed to withstand robust treatment, extremely practical, and increasingly safer,” Schneider explains. “The growth of e-commerce has led to even more demand for vans of all variants, as the sector requires delivery vehicles for last mile delivery to consumers.” The Daimler organisation has spent recent years confronting the challenge of future proofing its commercial vehicle ranges by tackling it head on, encouraging its teams inside Mercedes-Benz to think big when exploring how they can bring the digital world into the vehicles of the very near future. The Vision Van concept, unveiled at last year’s IAA, for example, was an important statement of how it believes distribution is moving towards interconnected logistics. “As we truly enter the age of automation and the internet of things (IoT), innovation in logistics is becoming critical,” he explains. “Mercedes-Benz is at the forefront of this with its plans for the Vision Van which
involves driver-less vans with delivery robots supported by drones; all aimed at revolutionising the way we deliver products to customers. We are turning the van into a networked and fully electric logistics centre on wheels, offering our customers perfect solutions for the urban, digital age.” More immediately in the Middle East, Schneider views the pursuits of greater efficiency and safety as well as lower vehicle emissions by governments and fleets as being the major trends dominating the region. He argues the company is well placed to offer its help. “We do see a shift in the trend toward LCVs due to the economic situation and also due to best practices being adopted from other parts of the world. As safety awareness increases, vans should be at the forefront of capturing potential clients looking for safer and more reliable vehicles. The rate of road accidents and subsequent fatalities have increased the focus on safety regulations in some markets, and the lack of safety in some vehicles. Of course,
The ability in which vans can move through busy city roads is a lot higher than other LCVs, they are easier to manoeuvre and are faster”
safety is at the forefront of everything we do at Mercedes-Benz,” he states. “Another regional trend is the increasing demand for more environmental cities and therefore making vehicles less harmful to our environment. On this note, you can expect a near future with fleets that have a higher number of fullelectric vans on a global level that will eventually cascade down to the region.” Mercedes-Benz Vans in the region are currently deployed with a wide range of fleets in a surprisingly long variety of industries including: hospitality, tourism, transport services, aviation, manufacturing, logistics, healthcare and education. The public sector, he says, has broadly accepted the class of vehicle. “There is a market in the healthcare sector (large-size vans can be configured as ambulances), police, civil defence and basic high-profile people moving solutions. The taxi operation sector, in particular, is going through a period where it is recognising a constant need for higher efficiency.”
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a Touch of V-cLaSS The V-Class is available in three variants: Standard, Avantgarde and Exclusive and is suited for corporate transport, VIP hospitality shuttles and private use.
Schneider then adds that other opportunities for growth also exist. “The F&B sector in the region is growing at a fast pace, thereby driving the demand for vans,” he explains. “Similarly, the construction sector is an important sector, and vans provide supplementary support to the core businesses within that industry. For example, crew and equipment transportation.”
It is clear that rising transportation requirements will need to be met even faster and more efficiently in future and, above all, in an environmentally friendly way”
well placed to deliver to this contributing segment of the economy, thanks to our broad product portfolio with many opportunities for adaptations based on business requirements.” Expanding on the point, he says MercedesBenz Vans offers an almost unlimited range of customisation options, “everything from seat material to a cabin and cowl option – building a functional body from a bare chassis.”
LocaL adaPTaTIoN
An ever-more competitive landscape for businesses is a sign of a maturing social and economic climate in the region. Even beneath the skyscrapers that scale the Gulf countries, it remains a territory dominated on the roads by relatively small operators with modest budgets and almost limitless requirements. Schneider says they can be well served by the flexibility of light commercial vehicles, and vans, in particular. He believes his company can meet most needs. “Yes, there is a market for sole traders and small companies,” he affirms to T&FME. “The SME ecosystem in the Middle East is extremely important to the economy as a whole. Recent studies have shown that 90% of total registered companies in the MENA region are SMEs. He continues: “SMEs require reliable fleets that are efficient and flexible in terms of configuration. Mercedes-Benz Vans are 20 TRUCK&FLEET ME SEPTEMBER 2017
SafEST VaN IN SEgMENT The Sprinter can serve as a shuttle for hotels, a cargo carrier, an ambulance or a school bus. Its best-in-class safety systems are designed to keep drivers, motorists and its passsengers safe.
chaNgINg INduSTRy, VEhIcLES aNd coMPaNy “The commercial vehicle industry is changing as result of economic and social trends, among them urbanisation, the growth in e-commerce, the intelligent networking of a wide range of technologies in the Internet of Things (IoT), and the proliferation of platform-based business models. Mercedes-Benz Vans is presenting a study into a fascinating, integrated solution for new customer requirements with the "Vision Van". This all-electric vehicle combines various innovative solutions for lastmile delivery in urban and suburban environments. The prototype is the first van to fully digitally connect all people and processes involved, from the distribution centre to the consignee. It provides the platform for a fully automated cargo space and integrated delivery drones.”
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“In our premium V-Class, for example, we offer an option which allows customers to create their own first-class lounge through flexible seating arrangements with superior levels of comfort.” While configurations may vary greatly and from owner to owner, Schneider feels there is a degree of commonality, most obviously in needing a vehicle that can cope in the heat. The climatic conditions in the region require vehicles that can perform in extreme environments. We take into consideration the conditions drivers and passengers are subjected to in the region and strive to design vehicles with that in mind,” he says. He continues: “All our vans are mechanically modified to meet the heat, dust and local fuel quality of the region. This means customers enjoy peak performance from their Mercedes-Benz van – greater efficiency, reliability and superior driving experience – thanks to the engines and powertrain features that are particularly designed for the local fuel quality, as well as enhanced air conditioning systems developed to perform in hot, humid weather.” He adds: “The drivers’ profiles in the commercial vehicle operation is also highly demanding in terms of vehicle performance, not necessarily speed, but in capability, and our range of vehicles more than satisfy these demands for capability.” For those considering buying a van for the first time or looking to purchase
Consumers are increasingly seeing the value of commercial vehicles as they are well-built, designed to withstand robust treatment, extremely practical, and increasingly safer”
fRoM hIgh caPacITy To hIgh cLaSS Mercedes-Benz Vans' range stretches from the high payloads and practical variations of the Sprinter and the mid-sized Vito, to the first-class lounge experience of the V-Class.
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an upgrade, he advises that their most important consideration for choosing a vehicle should always be its job function. While a huge array of light commercial vehicles on offer here, vans are hard to beat when it comes to economy and nimbleness in an urban environment, he argues. “The ability in which vans can move through busy city roads is a lot higher than other LCVs, they are easier to manoeuvre and are faster,” remarks Schneider. “As cities grow and road space gets tighter for vehicles, businesses depending on their fleets need vehicles of greater manoeuvrability and speed. Vans are economical to run as they tend to offer improved fuel economy which is becoming an increasingly important factor when it comes to commercial fleets.” They also provide an under-appreciated opportunity to be a mobile advertisement for the owner. Extremely common elsewhere in the world, Schneider believes companies are slowly waking up to the possibilities of stamping your company identity onto the walls of your vehicle. “Mobile advertising is not as well leveraged in this region as it might be in other parts of the world, due in part to lack of understanding of its value, but also because of regulation in some markets,” he explains. “It is becoming increasingly common though, and we see a number of our customers taking advantage of exterior signage for their vehicles and fleets.”
RoLaNd SchNEIdER oN ThE RaNgE As the van that established an entire vehicle segment, the Sprinter has been ahead of the crowd since 1995. It comes in four variants: Panel Van (up to 3 seats, 2.7t payload), Tourer (up to 12 seats, 1.3t payload), Mini Bus (up to 23 seats) and Platform (up to 7 seats, 2.5t payload). Its flexibility allows it to serve as a shuttle for hotels, a cargo carrier, a school bus or even as an ambulance. High performance engine options are available to match region requirements. It is the safest van in the large van segment, offering five systems that deliver support in critical traffic situations. The Vito, a versatile mid-size van, offers maximum benefits, low operational cost, high levels of safety and payload. It comes in two variants in the region: Panel Van (up to 6 seats and 1.36t payload) and Tourer (up to 9 seats,1.3t payload). With its large door openings and low load compartment sill, it makes even the trickiest tasks superbly simple. The Citan is the urban delivery van for tradespeople. It is versatile, offering flexible load space and high fuel efficiency. It is the only van in its segment to be fitted with electronic stability control (ESC) as standard. In the region, it can be a: Panel Van (2 seats, payload of 0.6t) and Tourer (up to 5 seats, payload of 0.5t). The V-Class is our most premium offering, and combines comfort and luxury on a large scale. Elegant, and stylish, it offers an abundance of space for VIP transfers or the larger family, top-range safety features and up to 8 seats. The three variant's powerful engines and flexibility in seating arrangements make it ideal for corporate transport, VIP hospitality shuttles and private use.
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ROAD SAFETY
PrePareD to engage Experts from the UAE discuss what it takes to get drivers interested in safety
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PREvEnTiOn BETTER ThAn cURE RoadSafetyUAE’s research suggests that driver engagement has a key role when it comes to improving road safety.
lowly but surely it is being recognised in the region that if driver performance and road safety is to be improved then it can only be made possible by drivers fully understanding the risks involved. Speaking at the recent Increasing Road Safety Through Driver Engagement webinar, representatives from Baker Hughes, Shell, RoadSafetyUAE and host MiX Telematics discussed how this can be done on a practical and technological level. Thomas Edelmann of RoadSafetyUAE said that private companies have a critical role to play in road safety as they can engage directly with their staff and drivers. “If you look around the UAE and other parts of the region, there are many corporations that are not advanced (in road safety). There are all types of accidents happening in commercial segment, especially heavy vehicles. We see a lot of misbehaviour. If you look at the causes of accidents: speeding, ignoring safe spaces, inattentive driving; it is multiplied by factor-X when it comes to commercial vehicles.” RoadSafetyUAE is conducting its own research into the causes of accidents and why motorists fail to drive their vehicles safely. Some of those findings have unearthed that only two-thirds of drivers on the UAE roads not using child seats, 45% of drivers speed out of habit and a quarter of drivers think using indicators is a sign of weakness or in-experience. While much of its research has centred on passenger cars, many of the habits are shared by commercial vehicles drivers; plus it is crucial to understand the environment they are being asked to travel in. Looking at the causes of accidents, such as speeding or mobile phone usage, he stresses, the only way to save lives is to talk directly with the driver about the dangers: “This is about human nature. We have to engage with drivers and tell them we have to be safe on the roads and make them understand.” Speaking directly to those participating and listening from commercial operators he urged: “You guys have the ability to do it from a corporate level. All the corporations (listening in) have a fantastic array of touch points to engage with drivers in your eco-system. It is your responsibility to understand how important it is. We sincerely believe driver engagement has a key role when it comes to improving road safety.” He added: “Looking at fleet management systems there is a lot cutting edge systems that are out there, but it is about knowledge, reaching out to your stakeholders and sharing best practice.” Sergey Peresypkin, regional QSHE manager at Oil & Gas services operator Baker Hughes discussed how it has managed to improve its transportation safety by reaching out to its driver
workforce. Explaining that the company is currently operating 1,000 vehicles over 2 million miles per month without any accidents, he said that Baker Hughes created a system to encourage greater driver engagement: “All drivers are human and humans can make mistakes,” he began. According to Peresypkin, Baker Hughes had recognised that there was a failure from drivers to adhere to its journey management programme. “We asked, does everyone follow it, or not? The answer we found was not,” he said. “We wanted to design something that was not reactive, a good tool that still depended on the human factor to get compliance.” With vehicles crossing both urban and highway environments in the region, it was essential to develop a system that was transparent and could ensure that it could monitor what the driver was doing and how they were reacting on the roads. Partnering with its FMS provider, MiX Telematics (“it was an easy partnership focusing on the same goals”) Baker Hughes introduced a new, more intelligent journey management programme that allowed the drivers to concentrate on the trip in hand. Baker Hughes also looked towards IVMS (in-vehicle monitoring systems) for greater visibility, he added: “We connected to IVMS so we could get real-time information.” A third-pillar was built on compliance, forcing Baker Hughes’ fleet to ensure that journeys were not being conducted without proper planning. “A journey has to be approved. There is somebody who reviews where the driver is going. It is also proactive: the system is not only about control – it is a direction between the journey management centre that we created and the driver. There is a level of interaction between the two, but the drivers had to realise that it was there to protect their safety. The drivers now feel like they are really being taken care of.” Coming back to the need to reduce a reliance on human input into the planning process, Peresypkin said that Baker Hughes automated as much of the monitoring and tracking as possible. Cutting out paperwork, it moved its journey planning online, including risk assessments of routes. The process is now safer and smoother with access to potentially accident saving data on routes. Each time a route is planned (the system uses google maps), it can quickly review events such as speeding, fatigue, distance, and conditions for driving at night. “In the past, we had a lot of paper with a lot of approvals needed and delays. There are a lot of things that we have done to make life easier and for those approving the journey.” Expressing his pride of introducing the system at the company and the results it has spawned, he said: “It does a lot of automatic calculations which SEPTEMBER 2017 TRUCK&FLEET ME 25
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eliminate any possibilities for mis-judgements, but the system was only successful because we really brought home to the drivers that it is there not to control but helps them to work safely and know the rules of the game.” One way to ensure that drivers will be up to the task is not only assessing their competence but also their psychological suitability even before they step into their fleet’s cabs. Some companies even use psychometric testing to evaluate the suitability of the driver. Bob Wrigglesworth, global land transport lead at Shell said that, while it doesn’t use the method exactly, for hiring its own professional driving staff the organisation uses what it calls a driver behaviour indicator tool which is run by Cranfield University in the UK. “Drivers complete a test and we use that data for drivers in the primarily light vehicles (part of our fleet) not in the upstream part of our business.” Much of the technology being used by companies changing their approach to driver engagement has been sourced from technology specialists like MiX Telematics. Brodie Von Berg – head of sales and marketing, Middle East and Australasia for the fleet management solution specialist said that driver engagement will always be an important factor in managing land transportation risk. “We know in the business world we can influence the success of an organisation by implementing an effective and fully involved participation programme. The same principles can be applied to drivers. It can be about getting drivers involved more and empowering them with more information on driver performance and how they may improve.” According to Von Berg, fleets should have the confidence to allow drivers to self-manage, thereby reducing risk for the fleets that employ them, while also lowering costs and damage. “One way to do that is to use technology. We’ve been able to provide more information on their performance and how they rank
there are all types of accidents happening in commercial segment, especially heavy vehicles. We see a lot of misbehaviour. If you look at the causes of accidents, speeding, ignoring safe spaces, inattentive driving, it is multiplied by factor-X when it comes to commercial vehicles”
EcOnOMic SOlUTiOnS There are a lot of very economical solutions to be able to equip drivers with the skills to drive safely and defensively.
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amongst their peers. We’re enabling drivers to access information on their driving where traditionally they would rely on feedback from IVMS or telematics in the vehicle. When periodic reports were sent to their managers, the drivers wouldn’t be aware of their performance until such time that the reports were released or they were reprimanded.” In addition to journey planning and management, MiX Telematics has developed its own tools to enable drivers to get access to important data on their performance via a smartphone app, Von Berg further explained. “Today, it’s typically their mobile office. They are going to see their individual risk profile and beyond that it can drill down to more detailed information on breaches such as over-speeding, harsh braking and acceleration – they can see where this is happening on a map with the date and time. If we’re talking about transport and logistics operations – we can also look at their fuel consumption in comparison to their peers. They can look at the same vehicles on other sites by other drivers.” Managers themselves can see which drivers are using the tools on his company’s platform and react accordingly if they see drivers are not using the app, Von Berg says. MiX Telematics has also developed the ability to personalise training. Done regularly online it has a series of tests, such as hazard identification, which can identify a driver’s strengths and weaknesses and prescribe modules where training is required. “What we have found over the years is that drivers come with different skill-sets and levels of competence,” he explained. He added that businesses should be prepared to find an approach that is tailored towards the educational backgrounds of the drivers it is recruiting. He suggested that, in many cases, practical training can be highly beneficial; as can allowing drivers to do it in their own time and online.
RTA lAUnchES BUS DRivER hEAlTh cAMPAign The RTA’s Public Transport Agency recently organised a health awareness campaign for public bus drivers at several authorities in Dubai. The campaign is part of RTA’s ongoing efforts to raise the health awareness of employees to enhance their safety and efficiency during their professional career. Eventually, the campaign will enhance the safety of road users and contribute to realising the vision of RTA Safe and Smooth Transport for All initiative. ”The campaign attracted a huge number of participating bus drivers. It included several educational and healthcare workshops conducted by Rashid Hospital, DHA and Dubai Police, in the presence of several directors and staff members of the RTA as well as external associates. The campaign aimed to educate the targeted group on health issues and their relations to the risks and consequences of traffic accidents,” said the director of buses at the Public Transport Agency of RTA, Basil Ibrahim Saad. “RTA is always keen on broadening this partnership to cover vital areas, and accordingly enhance the achievement of objectives to make them a reality,” said Saad. At the conclusion of the campaign, Saad expressed gratitude to participants and urged them to engage as many bus drivers as possible. He noted that such campaigns would have a significant impact on consolidating public health and safety concepts in line with RTA’s vision of Safe and Smooth Transport for All.
ROAD SAFETY
“Certainly a long theoretical session isn’t for a driver that is illiterate or they simply don’t understand. I also think one of the benefits of e-learning is that it can allow drivers to do their training in their own language – certainly it is more impactful. With technology and scale it can be more cost-effective.” Looking ahead, MiX Telematics is working on an even greater range of tools and access to data for its clients. One area of focus is driver fatigue and Von Berg says that company wants to develop tools that actively monitor driving and rest hours which will deliver alerts if the driver is risking taking to the road in an exhausted state: “Sometimes it can be complex for a driver to understand (when it comes to rest rules). These particular tools will empower drivers to be able to see how many hours of driving they have left on their policy or how many hours of rest they will need.” While MiX Telematics already provides audible alarms for situations where the vehicle is being pushed through its safety thresholds, Von Berg says it is now introducing in-cab displays that provide real-time feedback. It has worked with Seeing Machines to integrate its Guardian system which will monitor and detect distracted driving and fatigue.
If you are going to put a driver that is untrained and unmonitored in an asset that is worth anywhere between $20,000 to $200,000 what risks are you really taking there?”
“Ultimately, we see great value in getting closer to the driver, engaging the driver and enabling them to self-manage to reduce risk and work towards crash-free driving.” Bob Wrigglesworth from Shell Oil highlighted the difficulty of finding independent data to verify the effectiveness of IVMS systems and how that can inspire a change in approach to safety. Sergey Peresypkin said that change must come from the top down especially when it comes to securing funding from within a business. “Real change is what all of us are talking about,” he said. “We have measures like our top driver (programme) that doesn’t cost much but it is only one aspect. If you do a real analysis it is quite simple: how many vehicles got damaged and how much did it cost to replace them? You can try the low-cost solutions but don’t expect the real change. You need to start conversations with the management.” He continued: “The is a lot of independent research that will show that (FMS) can save money. One of the keys with telematics, for instance, is when it is implemented it is only after six months, 12 months, 18 months or even years later, or if you take it away, that you realised what it is actually doing.” It is essential for businesses to realise that
technology cannot only lower the risk of accidents and save lives, but also improve efficiencies and possibly even lower fleet sizes, he argued. He said: “I can specifically identify a number of cases where companies have been able to reduce their fleet size by using the same data sets they are using to improve safety.” He continued: “Today telematics isn’t a rare thing and there are many different systems on the market. When you compare a tank of fuel – and one eighth of a tank of fuel is the value on a monthly basis – what’s the cost of the of replacing tyres, the vehicle if its damaged and what’s the toll on passengers and after road users that are affected by these types of incidences? These costs, while he hope to not see them every day, are phenomenal. It really needs to be viewed in true context. What is the value and what are you going to gain to your reputation? “There are a lot of very economical solutions to be able to equip drivers with the skills to drive safely and defensively. And the price point continues to reduce in the market as the technology continues to evolve. “If you are going to put a driver that is untrained and unmonitored in an asset that is worth anywhere between $20,000 to $200,000 what risks are you really taking there?”
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SEPTEMBER 2017 TRUCK&FLEET ME 27
WORKSHOP
AAC AND NISSAN BRAKE TESTS / DROP IN vEHIClE SAlES GOOD FOR SAFETy / WABCO ACqUISITION / vOlvO SHEDS DEUTZ / EvENT PREvIEWS
workshop AAC and Nissan complete brake campaign BRAKE CHECK-UPS OFFERED THROUGH THE HOTTEST MONTH Arabian Automobiles Company, the flagship company of AW Rostamani Group and the exclusive dealer for Nissan in Dubai, Sharjah and the Northern Emirates, recently partnered to offer fleet customers free brake system check-ups and a range of exceptional discounts. Fleet customers were able to benefit from the campaign offers by visiting their nearest Arabian Automobiles Service Centre before
the campaign ended on 31st July 2017. Sharad Dubey, director of Aftersales at Arabian Automobiles Company, commented: “Ensuring the safety of vehicles of our customers in UAE roads is prime importance to us, and we understand that maintaining large fleets requires particular attention. Our campaign was designed especially to support our fleet customers and give them peace of mind by allowing them
to save both money and time while keeping their vehicle’s performance in peak condition under attention of highly trained team of technicians from Arabian Automobiles.” While having their brake systems checked at no charge, fleet customers could also benefit from 50% discounts on both parts and labour for brake related repairs, as well as on other essential safety checks including wheel alignment and balancing.
29% DROP IN SAlES GOOD FOR vEHIClE SAFETy TyRE SAFETy
Kenneth Arnold, general manager, ZDEGREE has told T&FME that he believes that a fall of 29% in new vehicles sales in the UAE could lead to better maintain older vehicles on the roads.. “Recent industry reports have shown that new car sales have gone down in the UAE by 29%,” Arnold commented. “We see the drop in new car sales as a good sign as more motorists are looking at repairing and maintaining their current cars instead of purchasing a new one.” According to Arnold, it is crucial that owners ensures their vehicles are road worthy, especially during the hot summer months in the Gulf. “One of the most essential points to remember in both road and auto safety is keeping the vehicles well maintained – especially the tyres,” said Arnold. “Due to the hot UAE climate, vehicle batteries and tyres need to be checked for wear and tear regularly.” It has been a busy year for ZDEGREE and it recently opened its first dedicated Truck Center in Sharjah as well as the first car wash in Dubai Investment Park.
INSIDE THIS MONTH’S WORKSHOP READ OUR MATERIAlS HANDlING 2017 SHOW PREvIEW, HOW THE ClOUD HElPS FlEETS AND THE RETURN OF A FAMOUS NAME 28 TRUCK&FLEET ME SEPTEMBER 2017
WORKSHOP
vOlvO DIvESTS 25% STAKE IN DEUTZ ENGINES
wABCo ACquires AssettrACkr FMS TECH
WABCO Holdings Inc has announced that it is expanding its global fleet management solutions (FMS) business to India by acquiring AssetTrackr, a FMS provider based in Bangalore, India. WABCO signed an agreement to purchase 100% of AssetTrackr’s shares. Founded in 2013, AssetTrackr is a dynamic start-up company that helps commercial vehicle fleets track, analyse and optimise their transportation resources and assets in real time. AssetTrackr utilises advanced, cloud-based fleet management software and telematics hardware, which enables fleet operators to connect vehicles, drivers, and cargo and to monitor relevant data. The systems capture vehicle departure and arrival times, detect unauthorised stoppages or deviations, and optimise routes.
ENGINES Volvo CE has divested its entire stake in German engine-specialist Deutz to institutional investors, according to reports in the global media. The Swedish construction equipment giant owned a 25% stake in the Colognebased engine specialist, which is known for supplying engines to several large international equipment manufacturers, including Volvo CE-owned Chinese manufacturer SDLG. All the shares Volvo CE owned in the German manufacturer are now reportedly in free float, increasing the overall liquidity of Deutz shares. Deutz said that Volvo’s stake sale had not impacted its strong business relationship with the company, which goes back many years, according to reports.
Khl.com quoted Dr Frank Hiller, chairman of the Deutz board of management, as saying: “We will continue to work together closely with Volvo and will remain an important supplier, particularly in the construction equipment application segment. Following the sale of the investment, we can focus on raising our profile as an independent manufacturer of innovative drive systems.” Volvo’s divestment in Deutz comes at the same time as its announcement of divesting its wholly-owned British dealership to SMT, its long-term distribution partner in the UK. Apart from the distribution rights for Volvobranded construction equipment, the sale is also said to include parts and aftersales in the UK, as well as Volvo CE’s British headquarters in Cambridgeshire, its nationwide operations, most other assets and the transfer of all employees.
INFRA OMAN TO RETURN IN OCTOBER EvENTS
MATERIAl HANDlING MARKET WORTH $5BN MARKET NEWS The market revenue for materials handling equipment in the GCC, which was worth $3.78bn in 2014, is set to maintain a CAGR of over 4% while reaching an estimated $4.8-5bn in revenues by 2020, according to research by analysts Frost & Sullivan. Saudi Arabia, with about 46%, and the UAE with 35%, unsurprisingly make up the largest markets in the region and are expected to continue to spearhead market expansion going forward, the research found. Key drivers for the continued expansion in demand for materials handling equipment
continue to be the ongoing focus of the GCC countries in large-scale infrastructural and logistics development, including that of key transport and shipping hubs, export processing and free zones. Furthermore, the high dependence of many countries on import of goods and services that call for increased reliance on materials handling and logistics facilities in the region is also driving demand. The research was commissioned and presented by Messe Frankfurt Middle East, the organisers of Materials Handling Middle East 2017, which will run from September 11-13, at the Dubai International Convention and Exhibition Centre.
Infra Oman – Oman’s biggest & only exhibition related to construction & Infrastructure will return for the seventth time from 9-11, October 2017at the Oman Convention & Exhibition Centre, Sultanate of Oman. Infra Oman is considered as the annual meeting place forindustry leaders, suppliers and buyers in the Sultanate of Oman. Infra Oman has proved to be an ideal starting point not only for the local companies, but also for foreign entities that are more determined to be part of Oman’s growing market. The exhibition’s areas of focus include: construction requirements; green & future buildings; heavy equipment & technologies; hotel & tourism projects; industrial free zones, industrial manufacturing; power & water technologies; roads, airports & railways; and much more.
SEPTEMBER 2017 TRUCK&FLEET ME 29
FEATURE
: T E g r Ta dlE d i M sT Ea A sleeping German giant has awoken and has set its sights on the region
O
nce viewed as a leading light in the stellar German car industry, Borgward has endured a torrid history. Founded by Carl Borgward, the company established a reputation as an innovator developing technology such as air suspension and automatic transmission. Coming from a modest coal mining family, Borgward enjoyed immense success with not only his self-titled brand but also with the Goliath and Lloyd, which had been acquired in the late 1920s, marques. By the middle of the last century, the passenger and sports cars as well as commercial vehicles ranges under the Borgward umbrella arguably rivalled only Volkswagen and Opel in their diversity. However, an overly ambitious assault on the US market and an insistence of running the four brands under Borgward entirely independently when a sharing of development, production and parts would have made more sense led the company to tumble into financial difficulties. A very public bankruptcy ensued in 1961 and the group fell into disarray.
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The company’s reputation as a pioneer and engineering powerhouse has endured in the decades that have followed and the brand was resurrected by Borgward’s grandson Christian Borgward in 2008. Using funding from China’s Foton, production has begun again and a new production facility in Germany is expected to soon supply EV-powered vehicles to key global markets including the Middle East. The homecoming of the brand marks its rebirth guided by the BGW strategy - Borgward brand, German engineering and worldwide footprint. With the superior products of German design, Borgward is dedicated to integrating top global resources to meet the needs of consumers across the world. Borgward signed a memorandum of understanding last October with the Bremen Government located in Germany to acquire a 140,000-square-meter site in the Industry Centre in the western part of Bremen. Construction of the facility will start by early 2018, and production is scheduled to begin in 2019. During the first stage, Borgward plans to build an assembly facility to produce
The BX7 is now ready for the discerning customers in the Middle East, who are known for their desire and preference for the highest standards in performance, safety and luxury”
up to 50,000 vehicles per year, the models assembled in the plant will include electric, plug-in-hybrid vehicles and other Borgward high-end versions which are expected to be sold across Europe and globally. The objective is to ensure that the assembly facility can be changed into a full-scale production plant if demand for the vehicles requires. Functioning as the heart of the brand’s global EV automobile manufacturing themed on industry 4.0, high-tech and green energy, Borgward’s Bremen facility will be equipped with a manufacturing centre, a brand experience centre, a delivery centre and a media centre, where the customers will also be able to enjoy experiences such as test drive and VIP delivery service. “We are demonstrating our commitment to expand from Germany to the global market,” said Ulrich Walker, CEO of Borgward Group AG. “We are continuing to write the history of Borgward and are excited that the production facility in Bremen will become our worldwide competence centre for electric mobility.” Martin Günthner, minister of Economic Affairs, Labour and Ports of Bremen, had
FEATURE
ThE GiAnT AwAkES Borgward Group AG is a globallyactive automotive manufacturer that is headquartered in Stuttgart, Germany with three research centres across the globe. In its heydays in the late 1950’s of the last century, Borgward was the 3rd largest German car manufacturer, employing more than 23,000 people and selling more than one million vehicles. After more than half a century, Borgward, an iconic and highly-praised German car brand, is proud to announce its return. With its global strategy and its innovative, dynamic and high quality vehicles, Borgward has set its path to return as an internationally-acclaimed German automotive brand with the launch of the award-winning and highly-anticipated BX5 and BX7 intelligent SUVs. “Borgward upholds the brand value of “craftsmanship, intelligence, forward-thinking & accessibility” creating a German smart car brand beyond luxury, and achieving the brand vision of intelligent driven future life.” “At Borgward, we create stable and excellent performance leveraging strong manufacturing of Germany; enable win-win between economy and society using new energy and intelligence; spread “accessible premium” to more consumers by prospective insight in consumer demands; drive global strategy and bring perfect driving and riding experience beyond user’s expectation via a new model of ‘Resource Pooling and Internet Sharing’, thus creating a smart vehicle life ecology.”
this to say about the decision: “We look forward to the early completion of the new facility. As the hometown of the brand, Bremen connects the glorious history of Borgward, its good logistics connection to an international port, outstanding infrastructure and production supply chain, the availability of skilled workers especially auto specialty talents, all contribute to Borgward’s intelligent manufacturing and its global sales.” While Middle East customers are expected to experience the luxury and excitement of the BX5 and BX7 later in this year, other top models in the future Bremen plant will also be sup-plied to the Middle East market. The EU’s latest WVTA certification is based on the European Economic Commission Regulations and European Union Directives and Regulations. Considered the strictest certification system, WVTA testing is part of a well thought out strategy by Borgward ahead of their expansion plans into the Middle East. “In truth, the BX7 not only has advanced technology, but in its development and production process has undergone rigorous testing that is now verified with WVTA certification, generally considered as one of the most comprehensive tests for vehicles globally and a strong guarantee of the vehicle quality. The BX7 is now ready for the discerning customers in the Middle East, who are known for their desire and preference for the highest standards in performance, safety and luxury,” said head of development Dr Tilo Schweers.
The BX7 not only has advanced technology, but in its development and production process has undergone rigorous testing that is now verified with WVTa certification, generally considered as one of the most comprehensive tests for vehicles”
During the tests, the BX7 was rigorously checked on parameters such as sound levels, emissions, diesel smoke, fuel consumption, engine power, diesel emissions and air conditioning. Deeply rooted in German technology and craftsmanship, the heritage of Borgward serves as an assurance for BX7’s high quality to meet various strict standards, that is also conducive to the Middle East market. Other prominent features of the BX7 includes a powerful turbo engine with low fuel consumption. The 2.0T TGDI (Turbo Gasoline Direct Injection) has been developed jointly by Borgward and top global partners including Bosch, FEV and IHI with an advanced direct injection system and sophisticated cylinder processing technology. The BX7 has multilayered safety features, is made by 1500Mpa ultra-high strength steel that meets the Euro NCAP 5-Star Standards, and includes remote monitoring and complete protection. During the certification process, the Borgward BX7 also successfully passed the Euro 6 Real Driving Emissions (RDE) test, a mandatory requirement in the EU The Euro 6 emission standard, the toughest standard yet, tightens emissions limits and has been implemented in the EU to eliminate most exhaust pollutants. Middle East drivers will also benefit from several additional safety features later this year in the BX7 including six SRS airbags, stability control, electric differential lock, tire pressure monitoring system, fatigue detection and blind spot detection; all of which have been developed using the stringent standards from this famous German brand. BAck FRoM ThE BRink Bogward was one of Germany’s bestknown auto-makers until it hit hard times in the 1950s and 1960s.
SEPTEMBER 2017 TRUCK&FLEET ME 31
Bringing the latest
construction news from across the GCC
www.meconstructionnews.com
SHOW PREVIEW
LET THEM HANDLE IT
Materials Handling ME returns as market aims for $5billion by 2020
W
ith over 130 exhibitors from as many as 21 different countries, representing 250 brands, having already signed up for the upcoming 9th edition of Materials Handling Middle East, the region continues to be a key focus of leading names in the intralogistics, warehousing, freight and cargo industries. Materials Handling Middle East, is the only dedicated trade and networking event for the logistics, supply chain management and warehousing industries serving the wider Middle East. Additionally, despite the overall slowdown in economic growth trends worldwide, the materials handling and logistics industries have continued to enjoy a relatively healthy growth rate in the region. According to research by analysts Frost & Sullivan, the market revenue for Materials Handling Equipment in the GCC, which was worth $3.78 billion in 2014, is set to maintain a CAGR of over 4% while reaching an estimated $4.8-5 billion in revenues by 2020. Saudi Arabia, with about 46% and the
UAE with 35%, make up the largest markets in the region and are expected to continue to spearhead market expansion going forward. Key drivers for the continued expansion in demand for materials handling equipment, continues to be the ongoing focus of the GCC countries in large-scale infrastructural and logistics development, including that of key transport and shipping hubs, export processing and free zones as well as the high dependence of many of these countries on imports of goods and services that calls for increased reliance on materials handling and logistics facilities. Realising the potent growth potential of the regional market, the Top 20 of the world’s leading materials handling systems suppliers have already signed up for Materials Handling Middle East 2017, which will run from September 11 to 13, at the DICEC in Dubai. “As the only dedicated trade and business development event for the materials handling, logistics, warehousing and freight handling industries, Materials Handling Middle East has through the years served as an invaluable networking and interactive platform for industry stakeholders, suppliers, traders and buyers to conduct business and scope out
Companies can not only speed up their processes and satisfy changing customers’ needs but also stay profitable by adding greater productivity into their supply chain”
the latest developments in the industry,” said Ahmed Pauwels, CEO of organisers Messe Frankfurt Middle East. “This year we not only have participation from the top global brands and service providers but also a considerable increase in interest from trade buyers from across with wider region.” Among the global heavy hitters who will be showcasing their latest offerings on the regional stage at Materials Handling Middle East 2017, include the likes of Swisslog, Daifuku and Kardex. Local leading lights such as GENAVCO, SPAN Motors and United Motors and Heavy Equipment will also be out in force, while debutants such as Feralco from France, MPM from Italy and Saudi manufacturer, Power Rack Factory will look to make more than just an initial favourable impact. Touting the vital role of automation and the merging of digital and intelligent processes and systems as the road to the future of materials handling, Frederic Zielinski, General Manager of Swisslog Middle East, sees immense potential in the Middle East. “The changing customer demands require forward-thinking innovative and flexible solutions from businesses. By implementing SEPTEMBER 2017 TRUCK&FLEET ME 33
SHOW PREVIEW
EVERy day IS an EducaTIOn
In THE TRadE e has been a Ahmed Pauwels says ther rest from trade inte in e eas incr le considerab . ion reg the buyers from across
fully integrated, effective, future-proof automation solutions and keeping their facilities up-to-date with modernisation companies can not only speed up their processes and satisfy changing customers’ needs but also stay profitable by adding greater productivity into their supply chain and reducing the amount of errors. “Industry 4.0 has the potential to reshuffle the cards in how businesses operate. With networked intelligence in manufacturing and self- organising production processes, the ‘factory of the future’ will perform a quantum leap-in productivity, flexibility, and efficiency. The focus in the future will no longer be on the manufacturing process of purely massproduced goods, but on the customized product manufactured to industrial. This evolutionary step can only succeed, however, if we finally break down the barriers between the digital and real worlds,” Zielinski stated. GENAVCO, one of the UAE’s leading suppliers of warehouse storage and material handling solutions, is another exhibitor launching its end-to-end warehouse solution engineering capabilities during Materials Handling Middle East 2017. Neeraj Mahajan, the director of GENAVCO, said material handling equipment represents an integral part of the supply chain of diverse industries for storage, control and movement of items – from the raw material stage to the distribution of finished products. “The rising need for global production companies to automate operations and foster flow of goods in an efficient manner is the key force driving growth in the materials handling equipment market,” said Mahajan. “The main challenge for customers 34 TRUCK&FLEET ME SEPTEMBER 2017
Rack and OPInIOn This year’s event will include the two-day Supply Chain and Logistics Forum (SCLF) 2017 which will look at optimising supply chains for various industries.
Industry 4.0 has the potential to reshuffle the cards in how businesses operate”
in this region is to get a complete solution from a single source. They have to approach two or three companies for a complete warehouse solution. This process itself is time consuming and most of the time they are facing great difficulty to get an optimised solution meeting their needs. “Here we play a vital role with our Warehouse Solution Engineering to overcome this challenge by offering end-to-end solutions. We design and develop custom made concepts as per customer requirements, so projects are delivered from one source and in the timeliest manner,” Mahajan stated. Materials Handling Middle East 2017, will also feature the Supply Chain and Logistics Forum, a key interactive forum to and the Forklift Operator of the Year Challenge.
Owing to its strategic location, diverse economy and infrastructural support, the region and specifically the GCC continues to be one of the most important trading and logistics hubs in the world. A well-planned and developed infrastructure in the form of ports, shipping, aviation, warehousing and free-zones has played a key role in boosting the supply chain and logistics sector. Strategies, policies, trends and key growth opportunities for the sector in the Middle East will be in focus at the two day Supply Chain and Logistics Forum (SCLF) 2017 which will be held on 12 – 13 September 2017 in Dubai as a part of the exhibition. The forum will be an opportune platform for regional and international players and thought leaders in the supply chain and logistics sector to discuss and debate the future direction of the sector and what organisations must do in order to implement the right methodology and tools to attain optimum supply chain solutions for various industries.
THE RISE Of auTOMaTIOn Automation and Industry 4.0 are among the central themes solving key challenges at Materials Handling Middle East 2017.
The Big Project Me Awards has become an important annual event to attend. Over the years, we have witnessed the efforts from the organiser to promote the best projects in the region and recognise the efforts and achievements of the contractors. I wish that the event will become even more successful!
YU TAO
PRESIDENT & CEO
CHINA STATE CONSTRUCTION ENGINEERING CORPORATION (MIDDLE EAST) (L.L.C.)
27 November 2017 19:00 - 23:00 Habtoor Grand Dubai Al Andalus Ballroom United Arab Emirates bigprojectmeawards.com
FMS WhiTE PaPER
GET AHEAD IN THE CLOUD Sierra Wireless says that ioT may be the only way to meet changing regulation
36 TRUCK&FLEET ME SEPTEMBER 2017
FMS White PaPer
C
urrent fleet management solutions aim to improve the efficiency and safety of fleet operations. But even as fleet owners manage the daily challenges of optimising fleet operations, from fuel consumption to driver performance, they must meet new requirements. Growing emphasis on energy savings and vehicle safety means fleet operators need more help to meet new government regulations while achieving their own business goals for reducing total cost of ownership (TCO). A recent survey of more than 130 fleet owners reported that Risk & Safety is the top priority, followed by Improving Data Management – a significant change since 2013 when this was ranked 6th overall. Reducing overall fleet budgets including maintenance costs and fuel spend are always priorities, while interest in telematics is increasing. The Internet of Things (IoT) is widely regarded as a disruption in fleet management. The vehicle-to-cloud vision relies on wireless connectivity to enable a wide range of features that deliver benefits over the life cycle of a fleet, from vehicle acquisition to final depreciation. When vehicles are part of the IoT, real-time data can be collected to subsequently analyse from the cloud to gain insights for both drivers and fleet operators that make operations safer, and more cost-effective. In bringing vehicles into the IoT, however, solution providers and fleet owners must consider a more complex scenario than a simple connected black box. They must address issues such as reliable connectivity across carrier coverage areas, compatibility with evolving networks, the ongoing cost of adding new functionality, and upgrading units in the field. As IoT-centric services mature, solutions should offer fleet operators the flexibility to select from bundled connectivity services that are suitable for both. There are more than 330 million commercial vehicles on the road today. While these represent less than one-third of the 1.2 billion vehicles in use around the world, the average commercial vehicle travels greater distances than private cars and are responsible for a proportionately higher percentage of carbon emissions. Governments are implementing stricter regulations aimed at reducing the environmental impact of commercial
SiERRa WiRElESS Not only do fleet management solutions depend on reliable connectivity at all times, they must also select technologies that accommodate changing networks and market demands as much as possible over a fleet’s long life cycle, if they are to achieve the best possible TCO, says Sierra Wireless. “As vehicles travel across rural areas and multiple carrier boundaries, our Smart SIM with its patented ‘smart steering’ feature leverages multi-operator footprints and selects the best possible network based on data QoS parameters, not just signal availability, to achieve the reliable, extended coverage needed for telematics solutions. “Solution providers require costeffective ways to build new valueadd services, and manageable ways to deploy them to assets in the field. Sierra Wireless’ unique IoT Acceleration Platform reduces TCO over the lifetime of a solution by reducing system integration time. Developers don’t need to interface with multiple platforms; the platform makes it easy to provision for cloud-based services via over-the-air software updates. “The IoT Acceleration Platform also handles subscription management, allowing FM providers to enable flexible business models. Our multi-operator connectivity service is available on a single SIM, allowing seamless access to more networks than traditional mobile services can provide. FMS providers and fleet operators can select from data, “SMS and voice services specifically designed for IoT applications, with options ranging from pay-as-you-go plans to pooled subscriptions and specific bundles for data and messaging for lowest possible TCO.”
vehicles - a goal which is in alignment with fleet operators’ own goals of reducing fuel consumption and improving driver safety. If fleet operators are to meet timelines for more rigorous enforcement of emissions and safety standards, they must turn to the latest advances in fleet management solutions (FMS). Connectivity to cellular networks brings new capabilities to FMS by making it possible to collect vehicle data reliably and consistently. Applications can leverage historical and real-time data for powerful insights that can drive significant improvement in fleet management. From vehicle acquisitions and operations to final depreciation, every aspect of fleet operations stands to benefit. Only by bringing vehicles into the IoT can fleets comply with environmental regulations and drive more cost-effective operations. The market for connected FMS is at a critical inflection point. Currently, just 14% of commercial vehicles use connected FMS, but Berg Insights forecasts substantially higher penetration rates by 2018 as follows: North America: 26%; Europe: 23%; and China: 20% While a smaller proportion of personal vehicles are connected, as more and more consumers lease vehicles, leasing companies will be connecting their vehicles to monitor location, vehicle health and driving behaviour. With FMS collecting data, leasing companies can depreciate vehicles based on actual usage, and more accurately reflect vehicle valuation in their balance sheet, optimise preventive maintenance, and ultimately, alert leasing companies to reflect such improvements in leasing contracts. To manage TCO and comply with stricter carbon emissions regulations, new commercial vehicles will come factoryequipped with connected FMS. There are also strong incentives to upgrade commercial fleets with aftermarket solutions since the average life cycle of a vehicle is 10 years. Transportation activity contributes approximately 37 per cent to Canada’s total energy-related GHG emissions inventory. Roughly half of Transportation emissions are attributed to freight transportation and over half of those emissions are attributed to trucking. Source: Industrial Transportation in Canada, Sustainable Development Technology Canada (2007) Applications ranging from cargo tracking, goods deliveries, vehicle monitoring, diagnostic and preventive maintenance to driver behaviour improvement. All of this highlights the SEPTEMBER 2017 TRUCK&FLEET ME 37
FMS WhiTE PaPER
Moving SWiFTly ToWaRdS ThE hoRizon The latest generation of fleet management solutions have already migrated to the IoT, causing concerns regarding connectivity on the move.
huge potential for FMS vendors, from telematics service providers (TSPs) to Original Equipment Manufacturer (OEMs). For fleet owners, there are four main benefits that result from using “Connected FMS” to manage vehicle operations. Connected services can detect speeding, rapid acceleration and braking and other aggressive driving behaviours. When vehicles are equipped with telematics, drivers know there is data which can improve their driving efficiency and holds them accountable for driving. In a recent study, 67% of connected fleets noted improved driver safety behaviour, 37% saw improved fuel efficiency, and 33% noticed improved driver efficiency and productivity. Fuel usage affects both operating costs and carbon emissions. FMS functionality can help reduce fuel usage. Real-world data used to plan vehicle routes minimises overall mileage and left turns, both of which affect idle times and fuel consumption. Furthermore, according to the US Environmental Protection Agency (EPA), a typical commercial truck can waste 0.5 gallons of diesel fuel per hour while idling. With the right policies and technology in place to support those policies, fleets can achieve significant fuel savings with minimal impacts on operations. Aggressive driving lowers fuel economy by 33% on highways and 5% on urban streets. By monitoring driver behaviour – ensuring drivers stay within speed limits, and avoid rapid acceleration and sudden braking, and other forms of poor driving – fleet owners can save fuel. Gas mileage can be improved by up to 3.3% by keeping tires inflated to the proper pressure. Connected FMS systems can monitor tire pressure and alert both drivers and fleet managers. 38 TRUCK&FLEET ME SEPTEMBER 2017
From vehicle acquisitions and operations to final depreciation, every aspect of fleet operations stands to benefit”
With the latest engine oils and technologies, many fleets are able to extend their oil change cycles from the once-standard 3,000 miles to up to 10,000 miles or more. Solutions that constantly monitor vehicle health help fleet operators schedule oil changes and other preventative maintenance tasks as needed, rather than relying on mileage alone. Lengthening the interval between preventative maintenance contributes to: lower tyre replacement costs; lower oil change costs; increased ability for technicians to work on more urgent repairs; reduced vehicle downtime; increased productivity of maintenance staff; and avoidance of costly unplanned repairs by ensuring maintenance actually gets done when needed. A vehicle’s TCO encompasses the acquisition cost, operational costs and
WhEEl BEnEFiTS oF longER inTERvalS Lengthening the interval between preventative maintenance contributes to lower tyre replacement costs.
depreciation. Fleet operators can’t manage all the complexities of calculating TCO. A connected FMS allows fleet owners to understand the TCO of each type of vehicle and makes it easier to decide on the best long-term strategy for the overall fleet. The latest generation of fleet management solutions have migrated to the IoT. FMS collects performance metrics, analyses current and historical trends for both fleets and individual vehicles, and provides data that optimises logistics and ensures compliance with environmental and safety regulations. Whether it’s OEMs, TSPs, or IT departments of large fleet operators providing the FMS, all need reliable monitoring and data collection in order to deliver a 360⁰ view of fleet performance to help operators manage today’s issues and create long-term strategies for their business. This underscores how dependent fleet management solutions are on resilient mobile communications. Commercial fleets, especially those whose routes are cross-country or international, face challenges when it comes to reliable mobile communications. Over the course of a few hours, drivers could pass through areas where coverage changes by carrier, network type, or both. For driver safety, convenience, and lower deployment costs, the OBU’s SIM should not need to be swapped out in the field. A SIM should switch seamlessly between accessible networks, always selecting the best available network.
FMS White PaPer
FlEET ManagEMEnT Solutions will grow to accommodate a range of specific needs, such as: • Automatic Vehicle Tracking • Preventive Maintenance • Cargo Monitoring • Route Optimisation • Job Scheduling • Driver Management • Driver Behaviour Improvement “Our mobile workforce platform is tightly integrated with AirLink gateways. With the GX450 telemetry feature, our utility customers can take advantage of robust vehicle diagnostic capabilities, in addition to the reliability and ease-of-use of our integrated solutions.” Edna Menon, Senior Product Marketing Manager, Clevest
It is not enough to deploy SIMs that only work with networks currently active along vehicle routes. Once installed, a FMS should support up to seven years of constant use in commercial vehicles. During this time, coverage areas can change. 2G and/or 3G are being phased out in many regions, as carriers begin 4G reframing. As networks migrate, the best way for fleet operators to achieve long-term ROI is to use solutions based on SIMs designed to scale from 2G/3G to 4G/ LTE which can be upgraded over-the-air to handle new network configurations. Future-proofing does not end with network compatibility. Over the lifetime of an FMS, there will be customer demand for additional functionality. These can be new features developed by the FMS providers or functionality enabled by integration with third-party solutions. A solution that begins as a vehicle-centric application can evolve to interoperate with a cargo tracking solution, or incorporate monitoring for driver behaviour. Enabling such additional functionality requires: Integration of additional accessories such as cameras or portable navigation devices; An efficient way to download new applications to
In a recent study, 67% of connected fleets noted improved driver safety behaviour, 37% saw improved fuel efficiency, and 33% noticed improved productivity”
vehicles in the field; Consolidation and/ or integration of data from diverse sources FMS providers must take a longterm view and build solutions based on open application frameworks. This simplifies development, data collection, integration and data consolidation. Last, but not least, as connected services become a significant factor for business success, fleet operators will want solutions that support their revenue streams through flexible connectivity services that favour either OPEX or CAPEX models. Connected fleet management solutions help fleet operators manage widelydispersed, highly-mobile assets. Sierra Wireless provides connectivity solutions to support FMS requirements for today, with open, secure, and scalable wireless communications that are future-proof to meet evolving needs. Open standards and interoperability are fundamental to the vehicle-to-cloud vision as FMS providers create innovative new applications to help fleet managers improve safety, comply with environmental regulations, optimise logistics and maintenance, reduce costs and improve operational efficiencies.
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PARTING SHOT
SElf ContainmEnt Self-driving trucks will make container transports more efficient
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very day a large number of trucks transport containers between the Gothenburg harbour and the inland city of Borås. Improved transport efficiency using self-driving trucks would not only benefit the companies using these transports but also the society at large, due to a lower environmental impact and increased safety. This is the background of a newly started research project called AutoFreight where ten partners together will try to find the solutions needed for improved transport efficiency. “The strength of this project is the broad spectrum of partners involved,” said Emma Wermström, project manager at Volvo Group. “Efficient trucks alone are not enough to make a large societal impact.” The Volvo Group contribution to the project is to perform research within automated, articulated
heavy duty trucks and defining the prerequisites for self-driving trucks on the highway. The vision is to allow for automated driving on the highway segment of the stretch of road going between the harbour and Borås. The driver will be at the wheel from the port to the highway but will allow the truck to drive on its own on the highway. ”That is the vision, but during the project the driver will always be the one driving the truck on the highway. The self-driving functionality will, for safety reasons, only be validated at a test track,” says Emma Wermström. Chalmers University of Technology will manage the validation of the self-driving truck on the test track and also develop the algorithms needed for autonomous, articulated vehicles. GDL is one of the hauler companies transporting containers between the harbour to Borås today. As part of the project, they
will operate a Volvo truck in the field, mounted with sensor equipment. Data from the sensors show the vehicle environment as well as the driver behaviour and provide a basis for development of the required algorithms for the self-driving functionality. The city of Borås will investigate the possibility to open a Dry Port outside the city where container administration could be relocated from the harbour. Due to administration, many containers today are detained in the Gothenburg port for a long time, hours or days. The Swedish Transport Administration will investigate adaptions of the infrastructure that may be needed to allow self-driving trucks on the highway. The project will run until 2020 with a budget of $5.75 million. Sweden’s innovation agency Vinnova funds half the budget and the partners in the project the other half.
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