conquering the dakar iveco clinches top honours
025 FEBRUARY 2016
rav4 revamped crossover gets a new look
MIDDLE EAST
end of an era gcc rolls back fuel subsidies
Introducing Scania Touring A privilege to own. A pleasure to drive. A joy to ride. Visit your Scania dealer or www.scania.com and share the experience.
08 CONTENTS
A supplement of Cmme
26
GrOuP FOuNdEr Dominic DE SoUSA GrOuP CEO nADEEm HooD PuBLISHING dIrECtOr RAZ iSLAm raz.islam@cpimediagroup.com +971 4 375 5483 EdItOrIAL dIrECtOr ViJAYA cHERiAn vijaya.cherian@cpimediagroup.com +971 4 375 5472
30
eDiTOriaL
the enD of CheAp oil?
CONSuLtANt EdItOr STiAn oVERDAHL stian.overdahl@cpimediagroup.com +49 176 271 203 87
In the last month or so, fuel prices have risen sharply almost all over the GCC. Following the UAE’s precedent last August, Saudi Arabia, Bahrain, Oman
NETWORK
04 / toll hike on CAusewAY Crossing fees increase for King Fahd Causeway linking Saudi Arabia and Bahrain.
08 / tour De forCe We profile some of the offerings from top brands in the tourism coach segment.
aDVerTisiNG
gasoline, and pressure is mounting on governments as
COMMErCIAL dIrECtOr micHAEL STAnSFiELD michael.stansfield@cpimediagroup.com +971 4 375 5497
oil prices plunged to below $30 a barrel last month. Private companies too are now feeling the effects of the slowdown in the market. Many agree that the last few months of 2015 were less than ideal for business. Among them is GENAVCO,
18 / tAlking strAtegY
ACCOuNt MANAGEr BiPin SonEJi bipin.soneji@cpidubai.com +971 4 433 2856 DesiGN Art dIrECtOr Simon coBon
Anton du Plessis, head of the Isuzu sales
JuNIOr GrAPHIC dESIGNEr PERciVAL mAnALAYSAY
division, expects the year ahead to be tough for truck sales. Fleet owners who might have
MarKeTiNG
been looking to purchase new vehicles in
MArKEtING MANAGEr LiSA JUSTicE lisa.justice@cpimediagroup.com +971 4 375 5498
2016 are expected to hold off for a while.
FEaTURE
SuB EdItOr AELRED DoYLE
and Qatar have all announced increases in the price of
the UAE dealer for Isuzu commercial vehicles.
COvER sTORy
dEPutY EdItOr JERUSHA SEqUEiRA jerusha.sequeira@cpimediagroup.com +971 4 375 5477
Nevertheless, contrary to the cost-cutting approach most companies might adopt, du Plessis
CirCuLaTiON & PrODuCTiON
An interview with Anton du Plessis, head of the Isuzu sales division at GENAVCO.
firmly believes that now is the time to step up
dIStrIButION MANAGEr SUniL KUmAR sunil.kumar@cpimediagroup.com +971 4 375 5476
FEaTURE
operational expenses is the way to go, particularly
and market the brand more aggressively. For most businesses, however, trimming
26 / the enD of An erA GCC-wide fuel hikes signify the end of heavily subsidised gasoline in the region.
for oil & gas fleets. Many large players have effectively adopted telematics solutions to achieve fuel savings and boost road safety – a key requirement for oil & gas. Learn more about
q&a
30 / the future of truCking Strategy& discusses the implications of autonomous trucks for the GCC.
how telematics providers are adapting to the needs of different industry segments on p. 14.
PrOduCtION MANAGEr ViPin V. ViJAY vipin.vijay@cpimediagroup.com +971 4 375 5713 DiGiTaL WEB dEVELOPEr moHAmmAD AwAiS UmAiR SHAmim
PubLisheD by
The business case for telematics remains strong. What is still to be seen is whether fleets will adopt it on a wider scale, or whether a push
WORKshOp
36 / qAtAr Curbs fuel frAuD
from regulatory authorities is required.
Registered at imPZ Po Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com
Qatar Fuel to install microchips on vehicles to prevent fuel bill fraud.
PriNTeD by Printwell Printing Press LLc
paRTiNg shOT
© copyright 2016 cPi. All rights reserved
40 / Conquering the DAkAr Iveco steals the stage at the 2016 edition of the gruelling dakar rally.
Jerusha sequeira DeputY eDitor
while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
FEBRUARY 2016 TRUCK&FLEET ME 1
ONLINE LAUNCH PARTNER
Truck & Fleet ME’s home on the web MOST POPULAR
1
EDITOR'S CHOICE
READERS' COMMENTS
Dubai fire investigation ‘nears completion
Probe later found an electrical short caused the blaze
2
Dubai’s Emaar appoints DUTCO to restore fire-
damaged Address hotel Restoration to be carried out ‘in record time’ after New Year’s Eve blaze
3
PHOTO GALLERIES
In pictures: Central Bank of Kuwait headquarters China State Construction and Engineering Corporation (Middle East) won the 2015 Big Project Middle East Project of the Year Award for this building. See photo galleries at: meconstructionnews.com/photos
Arabtec, TAV clinch Bahrain airport contract
Construction deal part of $1.1bn airport upgrade
4
- Syed Ibrahim, via the website Dubai fire: Emaar sees ‘no material impact’ on
READER POLL
company, hotel insured
What is your outlook for the construction industry in 2016?
Shares in the company fell
16% 16%
on the first day of trading after the incident
5
“Reducing cladding is a good option to prevent the spread of fire (“UAE to curb cladding use after Dubai fire – official”). I can also suggest one more option: external sprinklers every 3-4 metres in height would be an additional option to stop fire spreading. They could be easily controlled by the local building guard and helpful for fire and safety people as well. It can be monitored and controlled from ground floor for high-rise buildings.”
VIDEO
Saudi Aramco inks second deal to build homes for employees
has signed a contract to
Video: Smart construction helmet with thermal vision, AR Intel and Daqri show off the smart helmet at CES 2016.
build 791 homes
See videos at: meconstructionnews.com/videos
State-owned oil company
Positive: Lots more projects on the table
No change: About the same as 2015
19% 49% Good: A few more deals
Bleak: Business will be down on last year
Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com 2 TRUCK&FLEET ME FEBRUARY 2016
NETWORK
NETWORK 02 16
YOUR MONTHLY GUIDE TO THE MIDDLE EAST’S TrUcK and fleeT operaTor neTWorK
Crossing fees hiked for king fahd Causeway NEw ROADS fOR NORTHERN EMIRATES The 25km terrestrial link was first opened in November 1986
The fees to cross the King Fahd Causeway, which links Bahrain and Saudi Arabia, have been increased. When the 25km terrestrial link first opened in November 1986, the crossing fee was BD2 or SR20. From January 1 this year, the charge has been increased to SR25 for small vehicles and from SR30 to SR35 for vehicles transporting passengers. There is no change in the charge for trucks. Authorities said the fee hike was to help reinforce financial resources to fund new developments, Gulf News reported. The King Fahd Causeway has been an important factor behind the rise in the number of people visiting Bahrain from neighbouring GCC states, and
of Bahrain-based people travelling outside the island kingdom. According to official figures, a total of 281,755,297 people used the causeway between its opening and the end of 2014, an average of 26,618 travellers a day. In October last year, more than 105,000 people crossed the causeway in a single day, the highest one-day figure ever. Authorities in Bahrain and Saudi Arabia have issued statements about increasing the number of lanes to help tackle traffic congestion, particularly during weekends and holidays, it was reported. Apart from passenger vehicles, the causeway is also used by trucks heading to Bahrain, mainly from Saudi Arabia, Kuwait and the UAE.
The UAE Ministry of Public Works is in the process of studying and planning seven new roads in the northern emirates, at a cost of AED780 million ($212.4m). The road projects are in Sharjah, Ras Al Khaimah and Fujairah, and aim to ease traffic congestion between the emirates. The seven projects include developing the Sharjah-Al Dhaid Road; renovating and adding 14km to the Al Ittihad Road in Ras Al Khaimah; and extending Emirates Road from Al Tuwain to link it to the Ras Al Khaimah Ring Road. Other projects include the first phase of the Kalba Ring Road and connections to Al Hail and the second phase of the Khorfakkan West Ring Road (E199). The Ministry also aims to develop the Al Sha’am Al Dara Road and improve the road between Al Tawain roundabout and Emirates Road.
Tasjeel, The Uae-based vehicle TesTing and regisTraT iTs fooTprinT in The norThern emiraTes. iT plans To ope 4 TRUCK&FLEET ME
FEBRUARY 2016
NETWORK
mercedes-benz oman sales soar 25% Mercedes-Benz Oman has reported a 25% increase in sales for the fourth quarter of 2015, compared to Q4 2014. The car-maker also recorded overall growth of 20% against the previous year. The strong performance was attributed to new products in the line-up, such as the CLA Coupé, and SUVs like the Mercedes-AMG GLE 63 4MATIC Coupé. The manufacturer increased unit sales for the third year in a row in 2015
DOLLaR RENT a CaR RENEWs paRTNERship WiTh Mai DUbai Dollar Rent a Car has renewed its business partnership with Mai Dubai, a UAE bottled water company. The car rental company delivered new commercial vehicles to Mai Dubai’s fleet, to transport office staff and personnel and distribute its bottled water products across the country. “Dollar Rent a Car has been our partner since we started operations in 2014. We have decided to lease their vehicles so we don’t need to worry about the extra expenses that come in maintaining our vehicles,” said Jay Andres, CEO of Mai Dubai.
daimler TrUcKs sells over half a million UniTs in 2015 Germany’s Daimler Trucks has reported an increase in global sales to over 500,000 units in 2015, based on figures from early December. The sales increase comes despite challenging market conditions, the truck-maker said. Disparities were evident in sales performance across various regions. Although the truck market in North America
Marwan Al Mulla, general manager at Dollar Rent a Car, UAE & Oman, said the company was happy to renew its partnership with Mai Dubai. “We hope to continue and strengthen our relationship.”
and Europe grew significantly, there was a slump in the important markets of Brazil and Indonesia. Sales also declined over the last few months of the year in Turkey, due to political insecurities. Nevertheless, 2015 saw the Stuttgart-
fORD NAMES NEw MIDDLE EAST MD
headquartered manufacturer increase unit
Ford Middle East has announced the appointment of Thierry Sabbagh as managing director for the region. Sabbagh makes the internal switch from his position as Ford’s regional sales director, where he was responsible for supporting Ford and Lincoln dealers across the GCC markets and in Lebanon, Jordan, Iraq, Afghanistan and Yemen. In his new role, he aims to grow share profitability while also enhancing a leading customer experience and the brand’s distributor network in the Middle East. “An improved dealer network and level of
“Nevertheless, our sights remain set on
sales for the third year in a row, according to Dr Wolfgang Bernhard, a member of the Daimler board of management, responsible for Daimler Trucks & Buses, who noted that conditions in the truck market will remain challenging in 2016. our next sales target of 700,000 trucks in 2020. To sit back is not an option for us.” In North America, the manufacturer reported a 20% sales increase to 176,100 Thierry Sabbagh, Ford’s new Middle East managing director.
units, driven by robust market growth and a strong product range. In western Europe too, Daimler Trucks saw a sales increase in
capability, along with making the customer sales and service experiences second to none, can ensure the growth of Ford in this region,” said Sabbagh, who is also keen on improving Ford’s fleet and commercial vehicle business.
Tion services provider, is expanding en iTs firsT branch in ras al Khaimah.
the first 11 months of 2015 to 56,000 units. Going forward, Daimler Trucks says it is set to position itself more closely to customers in Africa, Asia and Latin America. In October in Dubai, the manufacturer opened the first of six planned regional centres worldwide. In the first quarter of this year, further regional centres will open in Kenya for central Africa, in Pretoria for southern Africa and in Singapore for Southeast Asia.
FEBRUARY 2016 TRUCK&FLEET ME 5
NETWORK
dubai’s wafi interChange 65% Complete
Dubai’s Roads and Transport Authority (RTA) has announced that construction work on the Wafi Interchange in the Oud Metha area is 65% complete and will be open by the end of April this year. The contractor has completed almost 70% of construction work on the new flyover along with lighting and utility works, while the roadworks completion rate is 35%. The project, costing about AED88 million ($24m), comprises the construction of a three-lane bridge branching from Oud Metha Road (near Latifa Hospital) in the direction of Sheikh Rashid Road. From there, the bridge will extend to Sheikh Zayed Road (E11) and Al Saada Road, through the overpass leading to Dubai World Trade Centre. Spanning 700m, the new bridge will have the capacity to handle 3,300 vehicles per hour. Project works also include lighting, signage, rainwater drainage and utility lines. “The construction of Wafi Interchange is part of RTA’s strategy to improve and upgrade the main roads network in Dubai. Wafi Interchange is very important as it links with main roads, and intersects with the Sheikh Rashid Road and the Oud Metha Road,” said Mattar Al Tayer, director-general and chairman of the RTA. The interchange is expected to ease the movement of vehicles in a bustling area that frequently experiences traffic snarls, he added.
SHARjAH OpENS USED cAR MARkET Sharjah has officially opened its new used car market, the Souq Al Haraj, which is set to support the emirate’s used car industry. Located off Sheikh Mohammed bin Zayed Road and Al Dhaid Road, near Sharjah International Airport, the used car marketplace is in close proximity to the borders of Sharjah and Ajman. Built at a total cost of AED250 million ($68m), the market consists of showrooms, car exhibition areas, auction spaces and shops selling auto spare parts and accessories. The Souq Al Haraj is one of the largest used car markets in the Middle East in terms of total area, number of showrooms, and facilities and amenities provided. Technical inspection, vehicle registration and security services will also be offered. The used car trading industry in Sharjah dates back to the early 1980s and was formerly based in two hubs, Abu Shagara and Bu Daniq.
6 TRUCK&FLEET ME
FEBRUARY 2016
NETWORK
RENaULT TRUCKs DELivERs aRMOURED FLEET TO baNK OF FRaNCE Renault Trucks has delivered several armoured T 430s with 6x2 configuration to the Bank of France. “These T430 rigids were developed specifically for the Bank of France, which operates within a tightly controlled and demanding context,” said Bruno Carrara, sales manager at Renault Trucks. The trucks are protected with a special
armoured plating and the wheelbase has also been altered to make the vehicles as manoeuvrable as possible, he noted. “This is because these vehicles have to drive into buildings that are often very old and with very narrow entrances. This is also why we opted for full air suspension, so that the vehicle can be lowered when it has to operate in spaces with limited headroom.”
jAIDAH OpENS NEw cHEvROLET SHOwROOM IN QATAR Jaidah Automotive, the Chevrolet dealer in Qatar, has opened the brand’s largest standalone showroom in the Middle East at Jaidah Square, Airport Road. The 3,300sqm showroom will see Chevrolet’s entire product line-up showcased under one roof. The new location will display over 33 Chevrolet vehicles in different sections, namely the Adventure, SUV, Crossover, Performance and Passenger zones. “The opening of the largest standalone Chevrolet showroom in the Middle East is a proud moment for Jaidah Automotive,” said Mohamed Jaidah, group executive director of Jaidah Group. “We believe this new showroom signifies the start of even greater success for Jaidah Automotive and for Chevrolet in the region.”
ScANIA ScORES REcORD ORDER IN EUROpE Sweden’s Scania has bagged its biggest European order, which will see the company deliver over 2,000 trucks to British transport operator Eddie Stobart Limited and its associated companies. Due for delivery over a two-year period starting in March 2016, the deal involves several Scania UK dealers in terms of vehicle supply and repair and maintenance operations, the manufacturer said. Most of the vehicles in the deal will be supplied on 36-month contract hire agreements, including road fund licence and all repair and maintenance. The model mix
includes Scania G-Series and R-Series, all with Scania Highline cabs and equipped with 410hp or 450hp engines. “Scania has long played a major role in our fleet, and we are naturally extremely pleased to be once again committing to the marque,” says William Stobart, executive chairman of Eddie Stobart Limited. “We have been impressed with Scania’s operating economy over the life of the vehicle and the performance of Scania’s 410 and 450 SCR-only Euro 6 engines.” Last year, Scania had a 19.5% share of the UK heavy truck market, while its combined bus and coach market share amounted to 7%.
FEBRUARY 2016 TRUCK&FLEET ME 7
Cover CovER story sToRy
Tour dE FoRCE
As tourism gAins more trAction in the gcc, Truck&FleeT Me looks At touring coAches on offer from leAding plAyers
F
rom theme parks and ski slopes to big-budget malls and museums, the GCC states are leaving no stone unturned in the race for tourism dollars. Despite the current uncertainty around oil and sluggish economic conditions in many global markets, an increase in tourism-
8 TRUCK&FLEET ME FEBRUARY 2016
related investment is expected in the GCC, driven by the run-up to mega-events (in the UAE and Qatar), growing numbers of pilgrims (Saudi Arabia), and the need to overcome hydrocarbon dependence. With the region’s hospitality industry forecast to be worth nearly $36 billion by 2018, tourism will no doubt play a crucial role in the economies of the Gulf nations going forward.
Rising numbers of visitors creates the need for other services, such as those of tour operators. This will no doubt spur demand for coaches dedicated to the segment, and manufacturers are all too aware of this. Truck&Fleet ME decided to take a look at offerings from leading truck and bus players specifically geared towards the tourism and leisure segment.
Cover story
The Scania Touring is designed for occasional and regular services over medium and long distances.
sCANIA Swedish heavyweight Scania is set to launch a new coach for the GCC, the manufacturer revealed to Truck&Fleet ME. The Scania Touring is designed for occasional and regular services over medium and long distances. Combining fuel efficiency with low life-cycle cost, the Scania Touring HD 12-metre highdecker coach has been styled to convey typical Scania traits like the rounded wedge shape at the front and the rounded corners that reduce drag. The coach’s interior features 49 reclining passenger seats, with a guide seat mounted at the front. The luggage hatches open up pneumatically (as an option) to 9m3 of luggage space, slightly less with the optional co-driver bunk. The coach is available in two trim levels, Comfort (fabric upholstery) and Premium (leather upholstery), both with options for mid-mounted toilet cabinet and kitchenette.
A selection of coordinated colour schemes for panels and upholstery can be combined, as per customer specifications. Stitched leather upholstery with contrasting seams is optional. Roof-mounted air conditioning and convector heating are standard, with auxiliary heating as an option. The side and rear windows are doubleglazed and tinted. AV equipment includes 19-inch LCD monitors at the front and in the centre. Driver-friendly ergonomics are ensured on the Scania Touring, with ample seat and steering wheel adjustments. The driver seat is fully pneumatic and has several adjustment options with memory, as well as an adjustable backrest with integrated head restraint, tilt setting and horizontal adjustment. The driver seat also has an integrated headrest, high back, double armrest and three-point seatbelt. The dashboard has an upright design for better ergonomics, while the instrument cluster is installed horizontally to
facilitate orientation and reduce reflections. Behind the centre door is an optional co-driver bunk with an intercom facility to communicate with the driver. All seats in the coach have integrated seatbelts. The all-Scania powertrain on the coach comprises Euro 3 up to Euro 6 engines from 360hp to 460hp, a 12-speed gearbox and fully electronically controlled gear changing with Scania Opticruise. An overdrive version of the gearbox can be specified, for fuel-efficient high-speed cruising. The coach also has full air suspension and optional independent suspension for the front wheels, with electronically controlled disc brakes with ABS as standard. In terms of after-sales support, parts, maintenance and repairs are available for Scania Touring customers via the manufacturer’s regular sales and service network.
FEBRUARY 2016 TRUCK&FLEET ME 9
Cover story
The Magelys euro 6 offers a 10% reduction in fuel consumption compared to the euro 5 version.
IvECo The Magelys, named Coach of the Year last year, is Iveco’s offering for the tourism segment. It is available in three versions: Line, for medium distance travel; Pro, for high service levels on regular inter-regional, national and international lines; and Lounge, the full options version. Each version is available in two different lengths, 12.2m and 12.8m. Unveiled at Busworld last year, the new Lounge version is based on the Pro version and offers an AS-Tronic gearbox, lateral sun blind, driver's seat armrest, GPS, reversing camera, camera for the centre door and coffee machine. Optional equipment includes seats with adjustable headrest, USB sockets, touchscreen radio display and two games tables at the rear. The Magelys Line and Pro versions can
be fitted with an additional door on the right-hand side, with a lift platform and a Cinema Seat System (CSS) wherein seats can be quickly and easily folded away, freeing up space for a wheelchair or games table. As far as safety is concerned, the Magelys is equipped as standard with ABS and AEBS (advanced emergency braking system) brakes, ESP and ASR (anti-slip regulation), to optimise traction control and grip during start-up, as well as a lane departure warning system. As an option, the coach can be fitted with ACC (adaptive cruise control), which uses radar technology to ensure a safe distance is kept from the vehicle in front and automatically triggers the engine brake and retarder if this distance suddenly decreases. The Magelys Euro 6 offers a 10% reduction in fuel consumption compared
to the previous Euro 5 engine, as a result of being about 200kg lighter and tweaks to the bodywork that make it more aerodynamic. The Magelys coach on display at the Iveco stand at Busworld 2015 marked the Italian brand’s partnership with the New Zealand national rugby team, the All Blacks, with its livery bearing the team’s colours. The coach, which has a basic configuration with 57 seats, was customised for the players and featured amenities such as Wi-Fi, GPS, a coffee machine, a twin amplifier for microphones, a USB port for every seat and a 220V socket for every pair of seats. “Our partnership with the All Blacks is a historic one, and it celebrates the values of commitment, reliability, performance and team spirit that our employees share with the team,” says Pierre Lahutte, Iveco brand president.
“Our partnership with the all Blacks is a histOric One, and it celeBrates the values Of cOmmitment, reliaBility, perfOrmance and team spirit that Our emplOyees share with the team” 10 TRUCK&FLEET ME FEBRUARY 2016
Experience the difference
VOLVO’S I-SHIFT AUTOMATED MANUAL GEARBOX is something else. Thanks to built-in intelligence, it quickly and automatically chooses the right gear. This makes the truck easier to drive, even off-road, reduces wear and tear and improves cost-efficiency. Try the new Volvo FMX with I-Shift and experience the difference. It is good news for your drivers – and your operations will be a lot more profitable. For MORE INFORMATION ABOUT I-SHIFT please visit volvotrucks.com
Volvo I-shift Gearbox
Cover story
dAIMLER As its name indicates, the Mercedes-Benz Tourismo has been developed for the tourism sector and is offered in a variety of configurations to meet different business needs. Available in three lengths with seating for 49 to 57 passengers, the coach is suited to applications ranging from airport shuttles to long-distance routes. The high-decker is available in three different lengths and two axle variants with 51 to 59 seats for different operational purposes: as a classic 12m Tourismo; a 14m Tourismo L with three axles; and a 13m two- or three-axle version, the Tourismo M. While the three-axle vehicle is equipped with an OM 470 engine with 315kW (428bhp) as standard, customers can choose between performance options 265kW (360bhp), 290kW (394bhp) and 315kW (428bhp) for the two-axle vehicles. Passenger comfort is a crucial element in the design of a touring coach. The Tourismo offers Travel Star seating developed to ensure comfortable sitting, especially on longer journeys. Optional padding can be provided to increase comfort, particularly in long-
12 TRUCK&FLEET ME FEBRUARY 2016
distance regular service. Footrests, folding trays and luggage nets are also available for individual passengers. Moreover, the Tourismo can also be fitted on request with a lift to enable passengers with restricted mobility to access the vehicle with ease. New safety features on the Tourismo include a lane departure warning system
and AEBS. The coach also features standard ESP, brake assist for emergency braking and continuous braking limiter (DBL). DBL prevents the driver from exceeding the legal speed limit and makes it impossible to improperly disengage the drive system by stepping on the clutch, for example when driving downhill.
the Oriental Offering chinese brands are making their mark in the Gcc touring coach segment, proving to be a popular choice among operators. One notable example is Yutong, distributed in the uAe by Al khoory Automobiles. One of the world’s largest medium and large-sized bus manufacturers, Yutong has a sales volume of around
60,000 units per year, and since its inception in 1993 has had a compounded annual growth rate of 24.5%. In the uAe, Yutong offers a 6-25m product portfolio, covering various market segments including tourism and public transportation. Among its most popular products for the tourism sector are the 6122H, a 51-seater
coach, and the 6858H, a 35-seater offering. Features on the former include a reverse camera, refrigerator, DVD player with lcD monitor, microphone and 150l water tank. Yutong coaches are subjected to rigorous safety tests, including a rollover test with a tilt angle of 42 degrees, a road simulation test, an impact test, a vehicle
shower test and a seat crash test. In line with the push towards fuel efficiency, the brand offers a personalised operation matching programme for powertrain optimisation, with different working conditions and multiple modules available for selection. This reduces fuel consumption by 5-10%.
Cover story
MAN At its BusDays event in Ankara last year, German heavyweight MAN Truck & Bus showcased the MAN Lion’s Coach, adapted to the passenger transport requirements of the Middle East. The coach is available for the region in a Euro 5 version. “The BusDays Ankara event is an important platform for MAN to showcase our product range,” says Franz von Redwitz, managing director of MAN Truck & Bus Middle East. “Our varied range of stylish bus and coach models adequately meets the demanding requirements of urban passenger transport in the Middle East while offering great comfort and safety.” The Lion’s Coach is available as a 12m bus and also in three-axle versions as the Lion’s Coach C and Lion’s Coach L – the former
measuring 13.26m and the latter 13.80m. The Lion’s Coach accommodates 49 passengers, while the Lion’s Coach C has 55 passenger seats and the Lion’s Coach L has 57. The coach’s interior features tinted glass roof hatches, energy-saving LED reading lights and a DVD/video system with up to three flat-screen displays. An optional lift system is available for disabled passengers. Safety features on the Lion’s Coach include standard ESP and EBS. The 12-speed MAN TipMatic transmission can be operated both in fully automatic mode and manually by means of the touch-action stalk on the steering column. The coach is also equipped with AEBC, lane guard system and adaptive cruise control. The harsh summers in the region mean a powerful air-conditioning system
is essential. The MAN Lion's Coach has a special air-conditioning and isolation package for very hot climates and offers highly efficient cooling even in Gulf countries. Like all MAN buses and coaches, the Lion’s Coach has been thoroughly tested for aerodynamic performance, noise reduction and impact resistance. The coach is optionally equipped with GPS-controlled MAN Tempomat EfficientCruise technology, which the manufacturer says can cut fuel consumption by up to 6% without time lost in transit. The technology uses saved map material to detect upward and downward gradients in the route ahead, enabling the coach to build up momentum in a targeted manner before an upward gradient, so that it can coast over a hilltop at reduced speed.
The MAN lion's coach has a special air-conditioning package for hot climates.
FEBRUARY 2016 TRUCK&FLEET ME 13
Feature FEaTURE
DaTa ON DEMAND
Fleets in industry segments like oil & gas and Food distribution have niche requirements that telematics can help solve
14 TRUCK&FLEET ME FEBRUARY 2016
Feature
W
hether it’s cutting down on fuel costs or keeping tabs on driver behaviour, the benefits of telematics have been well documented. The region seems to be gradually waking up to the advantages of fleet management solutions, which far outweigh the initial cost. While certain benefits like fuel savings and road safety may be common for fleets across the board, different industry segments have niche needs that telematics can help with. Truck & Fleet ME set out to learn how telematics providers are catering to the requirements of various business verticals in the Middle East.
OiL aND gas For fleets of oil & gas companies and contractors, a key requirement is road safety, telematics providers say. Fleets in the sector tend to have a high accident rate, says Bassam Alkassar, CEO of FMS-Tech, a fleet management solution provider. “Oil & gas companies run massive operations. One of our clients’ fleets travelled two million kilometres a month. They have road accidents regardless of how much defensive driver training they carry out for their employees. It’s always a big issue.” Lives lost in road accidents can cost companies millions and also tarnish their reputation, he says. Fleet management solutions can go a long way towards preventing such tragedies. FMS-Tech supplies telematics systems to the UAE’s ADNOC Distribution and ADCO, as well as multinationals like Schlumberger and Haliburton. The company installs in-vehicle monitoring systems in fleets to monitor driver behaviour and improve driving habits. “The system records driving habits, so you can monitor what’s happening on the vehicle 24x7. If you don’t rely on technology to help you run your fleet, you know nothing about the vehicle once it leaves your parking lot.” Brodie von Berg, sales and marketing director at MiX Telematics Middle East and Asia, also notes that reducing the severity and frequency of crashes is a key priority for the company’s oil & gas customers. “The offering is very much centred on ensuring that the drivers are safe and well trained; the vehicles they’re driving are licensed, serviced and inspected; and they understand the risks
FEBRUARY 2016 TRUCK&FLEET ME 15
Feature
Bassam Alkassar, CEO of FMS-Tech.
present on the roads that they’re travelling on.” MiX Telematics generates driver performance reports based on data gathered from systems installed in customers’ fleets. The reports are sent to the client, who can identify high-risk drivers and take appropriate action. Oil & gas customers have derived numerous benefits from investing in telematics for their fleets, Alkassar says. Clients have observed a decline in violations as well as improvements in road safety and operational efficiency. FMS-Tech provides its customers with RFID-enabled cards for drivers, he notes. “We store on the card the driver’s name, the vehicles he’s allowed to drive and his driving shifts. It's very important to know who's driving the vehicle at any point in time. We use RFID technology, so it’s contactless, wireless and you can store it in your wallet.” The nature of oil & gas operations means that fleets often travel to remote locations without cellular coverage, which can make tracking vehicles an issue, von Berg says. MiX Telematics, for instance, has many customers in Iraq that sometimes operate fleets in areas without coverage. This is tackled by using the core telematics platform enabled with additional satellite communications. “We use smart switching technologies which ensure that we only utilise the satellite communications where it’s necessary to do so. This makes it a more cost-effective solution to provide unlimited contact with the vehicles.”
16 TRUCK&FLEET ME FEBRUARY 2016
Brent Melvin, general manager – supply chain solutions at Massar Solutions.
Brodie von Berg, sales and marketing director at MiX Telematics Middle East and Asia.
“If you don’t rely on technology to help you run your fleet, you know nothIng about the vehIcle once It leaves your parkIng lot” In the wake of plunging oil prices, one wonders whether oil companies will be less likely to invest in telematics as they look to trim expenses. Alkassar doesn’t seem too concerned. “Most companies have been affected by the new prices of oil. However, our clients use us to reduce their cost. The initial investment is paid back within a few months, or maximum one year.”
COLD ChaiN The food and beverage industry is another sector that needs to closely monitor its fleet, especially to protect perishable cargo. For F&B clients, the main concern is to keep reefer bodies cool, Alkassar says. Route planning is also essential, as is making sure that products are delivered intact to the right places. FMS-Tech uses sensors to measure the temperature inside the reefer bodies. The data is sent to the main office or control centre, enabling clients to track the temperature of the unit at any point in time.
Many customers in F&B distribution tend to suffer from undocumented cold chain, and as a result are unable to provide guarantees that the cold chain has been maintained, von Berg says. Apart from monitoring temperatures inside the reefer units, MiX Telematics also monitors door switches to detect when they’re opened, and can determine how long doors are left open for. Brent Melvin, general manager – supply chain solutions at Abu Dhabi-based fleet management firm Massar Solutions, also notes the importance of telematics in F&B distribution. “Real-time information is the real deal in managing F&B fleets efficiently.” In the absence of adequate telematics solutions, data on temperature deviation during transit can only be retrieved at the end of a transport leg. By this time, the cargo may have been subjected to temperature fluctuations, resulting in wastage, Melvin says. Telematics, however, can instantly alert management and drivers when the temperature
Feature
Fleet operators should know how to effectively manage telematics data.
in the trailer is too low or too high, so that they can address the issue then and there. “We spend a lot of time and money on telematics,” he says, noting that the company’s approach to telematics is twofold. One aspect involves keeping tabs on temperature at all times, to assure customers that cold chain integrity is maintained. The other aspect is operational data which pertains to the vehicle and driver behaviour. It’s important for the firm to monitor whether the driver is on the right routes, driving carefully and avoiding behaviour like harsh braking and sudden acceleration. Long periods of idling are also undesirable. “Idling has two effects. The first is cost for the truck by burning diesel, and the second is when you're not moving the vehicle, you're not moving air across the reefer engine. Hence you put strain on the reefer engine, which can compromise the cold chain.”
enable remote unlocking of safes in cash-intransit applications, so that there is a central control tower which monitors when and how the safes are unlocked in the vehicles. “Another key factor is overtime as well,” he says, pointing out that cash-in-transit drivers are usually paid hourly wages. Hence it is important to monitor the efficiency of their routes. “We tend to find quite large discrepancies where the overtime is overstated, or it's an inefficiency in the route.” MiX Telematics products are also deployed
in fleets transporting hazardous goods, such as radioactive materials in the oil & gas sector. These materials need to be carefully managed in terms of how they’re stored and how storage compartments are opened. “When they're carrying explosives, we need to ensure that we have complete RF [radio frequency] silence at times when they are conducting blasts. Telematics is an RF source, so we've actually engineered solutions which enable our customers to isolate all RF from the system when they're in a hazardous area.”
how to monItor telematIcs data effectIvely Telematics is valuable for
together in reports sent to the
or limits, such as defining a
gathering large amounts
customer on a regular basis.
pre-set temperature range for
of data from your fleet.
“It's about identifying
refrigerated trailer units. “What
However, all this information
the exact information that
we want to do is manage by
can be overwhelming, so
is required to achieve the
exception,” Melvin says.
operators must know how
customer’s objective and
If there is an anomaly,
to effectively monitor and
providing that. Once we've
such as the temperature on
spECiaL appLiCaTiONs
manage data to enhance
achieved that objective,
a reefer unit deviating from
In addition to oil & gas and F&B distribution, telematics also plays a valuable role in many other special applications, such as cash-intransit vehicles and hazardous goods transport. “Cash-in-transit vehicles are obviously a high-value target in terms of security,” von Berg says. “Customers are interested in having a reliable position update from the vehicles at all times, to know where they are and what they are doing." MiX Telematics has even used systems to
productivity and cut cost.
then we set a new goal and
the predefined range, Massar
“We're all data-rich and
we identify the information
Solutions can respond to that
information-poor,” von
for that, rather than
specific vehicle immediately,
Berg says, noting that MiX
overloading customers
instead of trying to wade
Telematics has created
with tonnes of data.”
through data logs for hundreds
18 TRUCK&FLEET ME FEBRUARY 2016
analytic tools that enable
Meanwhile, Massar
of vehicles operating.
customers to monitor large
Solutions has two approaches
amounts of information
to monitoring the data:
entails analysing post-trip
quickly and easily, in order
proactive and reactive.
data to look at aspects such
to simplify the process. The required information is put
Proactive data monitoring involves establishing targets
The reactive approach
as driver behaviour, speeding and going off-route.
IntervIew InTERvIEw
talking strategy
Anton du Plessis, generAl mAnAger – isuzu sAles division At genAvco, discusses the deAler's PlAns Amid current mArket conditions
20 TRUCK&FLEET ME FEBRUARY 2016
InTERvIEw IntervIew
FEBRUARY 2016 TRUCK&FLEET ME 21
IntervIew
The UAE market for diesel pickups is small, says Anton du Plessis.
O
ne of the most recognisable Japanese names in the LCV segment, Isuzu has been in the UAE for decades, its partnership with General Navigation and Commerce Company (GENAVCO) going all the way back to 1982. Last year, GENAVCO reported growth in Isuzu sales, increasing the brand’s market share by nearly 5% compared to its Japanese competitors in the light-duty truck segment. The dealer plans on playing to Isuzu’s strengths in this segment, focusing on building sales of the N- and F-series models as well as its D-MAX pickup, says Anton du Plessis, general manager – Isuzu sales division at GENAVCO. “Isuzu is very strong with the N-series range of trucks globally. They are number one
in almost 30 countries across the world in the N-series segment of the market, and here in the UAE, it's our volume seller,” du Plessis says in an interview at the GENAVCO office. The N-series models are capable of carrying payloads of up to 6t, he notes, and are mainly used in traditional distribution applications. Meanwhile, the F-series caters to payloads ranging from about 7-12t. Nearly all vehicles sold are of 4x2 configuration. While it currently mainly caters to general logistics and distribution applications, the brand is keen on eventually tapping into the UAE’s lucrative construction segment. “European products tend to be very dominant in construction segments. Isuzu is getting there. In the near future, we will have suitable products that will be capable of penetrating that market.” For now, however, the main focus is on
FMCG companies, distribution and short-haul applications, where the N-series has proved itself. The high ambient temperatures in the region no doubt have to be factored into the design of the vehicles, du Plessis adds. “If a truck can meet the standards in this territory, you can sell it anywhere in the world and it will work. Hence, it's very critical from a design and R&D point of view that Isuzu gets that recipe right from day one, and they have been successful.”
tHE CaSE FOR DiESEl A key reason for Isuzu’s success is the brand’s expertise in diesel engine technology, du Plessis says. Isuzu builds a wide range of engines for commercial vehicles, generators, marine applications and so on. Isuzu’s diesel dominance means that it has been at a bit of a disadvantage in the pickup
“tHE EDuCatiOn aROunD DiESEl iS nOt tHERE yEt. WE Still HavE a HugE ElEmEnt OF COnvinCing tHE EnD CuStOmER tHat tHERE iS a bEnEFit OF SWitCHing tO DiESEl” 22 TRUCK&FLEET ME FEBRUARY 2016
IntervIew
2016 is likely to be a tough year for business, with many customers holding off on vehicle purchases.
segment in the Middle East, where the market is dominated by gasoline engines. This sets the region apart from the rest of the world, where the perception of diesel is steadily improving and it is no longer confined to trucks. “The diesel engine is where Isuzu's strength lies. Over the years, the demand for petrol engines in all markets other than the Middle East started to decline,” he says, pointing to the growing popularity of diesel-powered passenger cars in markets like Australia, South Africa, Asia and Europe. “It's only in the Middle East, because of the fuel price, that there was a big demand for gasoline engines.” Isuzu’s main Japanese rivals in the pickup segment have their core strength in passenger vehicles and have evolved into building engines for 1t pickups, he says. “On the Isuzu side, we have taken what we've learnt in trucks and built that down into the 1t diesel engines. We only concentrate on diesel, and in this market the diesel sales are small.” In line with the trend in the rest of the region, the market for diesel pickups is small in the UAE as well, du Plessis admits. While Isuzu has recorded a slight increase in market share, it is challenging to compete in what is
24 TRUCK&FLEET ME FEBRUARY 2016
undoubtedly still a petrol-dominated segment. Diesel prices may have fallen in the UAE in the wake of fuel deregulation, but there hasn’t been an influx of customers wanting to buy diesel pickups, contrary to expectations. Part of the problem is that there simply isn’t enough awareness about the advantages of diesel engines. “The education around diesel is not there yet. We still have a huge element of convincing the end customer that there is a benefit of switching to diesel.” Perhaps the strongest argument for diesel engines is that they are more fuel-efficient than traditional gasoline engines, he notes. Moreover, as engines progress towards higher Euro emission standards, they tend to get smaller without compromising on engine performance, driveability or fuel consumption.
buSinESS in tHE uaE Given the uncertainty surrounding oil prices in the UAE and wider region, business across many industries has slowed down in the past few months. “2015 was the first indication that the market was starting to turn. The market had a good run for the first six months, and
from June onwards there were indications that it was slipping. I think 2016 is going to be a tough year,” du Plessis says. “And yet this is the time now where you can sit back, regroup, understand exactly where the market is, what's expected this year, and then focus on creating new opportunities.” Customers who would have renewed or upgraded their fleets this year might be choosing to adopt a more wait-andsee approach, delaying purchases until conditions improve. “It's not that you're losing customers. It's just that customers will hold back on their purchases.” In fact, while many companies are bound to take the cost-cutting route and trim expenses and manpower, du Plessis believes one needs to do the opposite. “Now is the time to employ more people. Now is the time to invest in marketing your product.” While potential customers may not be keen on buying at the moment, cementing relationships with them will be favourable when conditions improve, he argues, making the case for more aggressive marketing when sales are lean. “Because when that wave does turn, you want the customers to come back to you.”
BOOSTING BUSINESS, MAXIMISING KILOMETRES SP391
SP322
SP571
SP925
News NEws ANAlysis ANALysis
The end of an era
Recent announcements of fuel pRice hikes aRound the Gcc siGnal the end of heavily subsidised Gasoline in the ReGion 26 TRUCK&FLEET ME FEBRUARY 2016
NEws ANALysis
The UAE was the first GCC nation to announce subsidy cuts.
f
rom a high of $110 a barrel in 2014 to a shocking low of slightly below $30 at one point last month, the price of oil has plummeted significantly over the past year. The price crash is gradually forcing many GCC states to make the tough but much needed decision to cut back on subsidies, as they look to trim spending in the face of ever-declining hydrocarbon revenues. In the summer of 2015, the UAE was the first Gulf nation to announce the deregulation of fuel prices, such that the cost of petrol and diesel would match international rates. This set off much speculation that the country, often a regional pioneer, could be setting a GCC-wide precedent. International organisations like the IMF began to call for subsidy reform, alongside local voices. A recent report by a Qatar-based think tank has called for GCC nations to reconsider subsidies and tackle soaring domestic energy consumption. While oil consumption in the region was less than 1% of global demand in 1973, Gulf nations currently consume about 5% of the world’s oil with just 0.5% of the world’s population, according to a report by the Abdullah Bin Hamad Al Attiyah Foundation for Energy
and Sustainable Development. Moreover, the GCC’s primary energy consumption in the past decade has grown more than twice as fast as the world average of 2.5% per year. “The Gulf countries have to rethink the generous subsidies they have; they cannot afford them anymore and will have to look at alternatives,” says H.E. Al Attiyah, Qatar’s former Minister of Energy & Industry and Deputy Prime Minister. “They have to reduce subsidies and prepare people to accept that change. Young, educated people will be instrumental to that change.” It appears the GCC states are taking note. Last month, Bahrain announced that it would hike the price of gasoline from January 12, as the kingdom follows its other Gulf neighbours in scaling back on expensive subsidies. The price hike was approved by the cabinet as part of a comprehensive economic and fiscal reform programme, the state-owned Bahrain News Agency reported. Under the reform, the price of 91 Octane (Jayyid) went from 80 fils to 125 fils per litre (a 56% hike), while the price of 95 Octane (Mumtaz) fuel increased from 100 fils to 160 fils per litre (a 60% increase). Bahrain’s Minister of Energy, Dr Abdul Hussain bin Ali Mirza, says that the cabinet’s
56%: increase in price of 91 octane fuel in bahrain FEBRUARY 2016 TRUCK&FLEET ME 27
News ANAlysis
decision is part of wider economic reforms, which will strengthen the country’s longterm development and contribute to addressing current fiscal challenges. Around the time of Bahrain’s announcement, Oman also declared that it would cut subsidies. The sultanate’s state news agency, ONA, reported that the new price for 95 Octane would be 0.160 riyals, while the price for 90 Octane would be 0.140 riyals per litre. The price of diesel would be 0.160 riyals per litre, ONA said, noting that there would be no change in the prices of jet fuel. The new prices were to become effective from January 15. The region’s biggest oil producer, Saudi Arabia, has also raised domestic fuel, power and water prices, as it looks to tackle the reality of prices remaining at around $3050 a barrel. “Our economy has the potential to meet challenges,” Saudi King Salman said in a speech announcing the budget. At the end of December, the Saudi government announced it would hike the price of gasoline by two-thirds to 0.75 riyals a litre for 91 Octane fuel, up from 0.45 riyals. Prices are also set to increase for diesel. The Kingdom’s 2016 budget will see projected spending fall to 840 billion riyals ($223.8bn) in 2016, down from the 975 billion riyals ($260bn) it actually spent this year. One of the GCC’s wealthier economies, Qatar, also raised petrol prices by over 30% in midJanuary. Super 97 Octane is to cost QR1.30 a litre, up 30% from its previous price of QR1 per litre, while the price of 90 Octane has increased 35% to QR1.15. And according to a Reuters report, Kuwait is also expected to take action soon.
IndusTry perspecTIves One of the main arguments for subsidy reform is that the public funds and national resources being used to underwrite subsidies could be used to “generate greater social benefit”, the Al Attiyah Foundation says. “In this sense, reformed prices that make energy products more expensive would raise additional revenues for the state, while inducing consumers to adopt habits and technologies
Ashish Nanda, senior general manager at Shift Car Rental.
that increase conservation and benefit the environment. This, in turn, would reduce state spending and preserve resources for export.” The automotive industry has hailed the move towards deregulation, emphasising that potentially higher fuel costs can ultimately drive the push towards greener vehicles. The UAE’s decision to end subsidies will “protect the environment, preserve natural resources and encourage people across the country to consider using more fuel-efficient vehicles such as hybrids,” says Samir Cherfan, managing director at Nissan Middle East. “We do not expect that the changes in fuel prices will negatively impact the sales of any of our models in the UAE,” Cherfan says, adding that Nissan has recently launched a hybrid version of its popular Pathfinder SUV in the UAE, which offers a range of 785km on a single tank and fuel consumption of 9.1L/100km. Others weren’t so sure that there wouldn’t
be a negative impact on sales, however. “I am personally an optimist and would like to believe that this should have no or marginal impact on the vehicle sales,” says Riyadh Ali Sultan, director at Towell Auto Centre, an Omani dealer. “But unfortunately it might not be so, and hence companies like Towell Auto Centre need to take corrective and proactive steps to control costs." While he does not expect a major impact on vehicle sales, Sultan does expect fuelefficient technologies to gain more traction over larger, gas-guzzling engines. Franz Freiherr von Redwitz, managing director of MAN Truck & Bus Middle East, also expects fuel consumption to play a bigger role in the operating costs of its customers in the future. “The less subsidies there are on fuel, the higher the fuel costs will be. Thus, a vehicle’s fuel consumption will be evaluated more by
“The less subsIdIes There are on fuel, The hIgher The fuel cosTs wIll be. Thus, a vehIcle’s fuel consumpTIon wIll be evaluaTed more by cusTomers” 28 TRUCK&FLEET ME FEBRUARY 2016
NEws ANALysis
Franz Freiherr von Redwitz, managing director of MAN Truck & Bus Middle East.
customers when it comes to the question of which brand they’re going to purchase.” Higher fuel costs could potentially strengthen a push towards smaller engines as well, says Ashish Nanda, senior general manager at Shift Car Rental. For the rental firm, on the passenger car side, the majority of cars leased are small ones like the Nissan Micra, which do not consume much fuel in the first place. Hence no major shifts in leasing patterns are expected. Corporate clients, however, may switch to vehicles with 1.6L engines instead of 1.8L or 2.0L variants. If deregulation causes fuel prices to fall, as has been the case with diesel prices in the UAE, it can surely increase profits for fleets and commercial vehicle owners, says Roland Schneider, president and CEO of Daimler Commercial Vehicles MENA, in an interview with Truck&Fleet ME published last month. “As a result, higher profit could translate into earlier buying of new trucks. Cheaper transport also means more goods can be transported for the same amount. Both could foster the development of the truck industry in the region.”
THE SAFETY AND EFFICIENCY OF YOUR FLEET
IS IN YOUR HANDS Leading fleet operators have something in common: they control the performance of their drivers and vehicles by choosing the right technology. A MiX Fleet Management solution can: Increase driver safety Reduce fleet size by 12% - 30% Decrease accident rates by up to 70% Improve fuel efficiency by up to 15%
contact us on +971 (0)4 204 5650. www.mixtelematics.ae
FEBRUARY 2016 TRUCK&FLEET ME 29
Tech focus TECh FoCUs
The fuTure of trucking? mass-produced autonomous trucks could be on roads by 2030. consultancy strategy& discusses the implications for the gcc
A
ccording to estimates, more than one million trucks currently operate on roads in the GCC, a number that increases by 5-9% each year. Given that a significant majority of freight moves across the region by road, the trucking industry is a vital part of the economy in the Gulf – as are truck drivers. However, in the future, the role of a truck driver as we know it may be drastically transformed, if not done away with entirely. A recent study by management consultancy
30 TRUCK&FLEET ME FEBRUARY 2016
Strategy& notes that the transportation industry in the region has historically benefited from artificially low operation costs on account of fuel subsidies, low driver wages and minimal enforcement of regulations. GCC countries have also absorbed many negative effects of road freight, including pollution, accidents and congestion. As the region moves away from subsidised fuel and towards digitisation in increasingly knowledge-based economies, autonomous trucks – driverless vehicles that operate independently – have immense potential benefits for the region.
Autonomous vehicles are already operating for industrial purposes in closed environments. Australian mining firm Rio Tinto uses driverless trucks at its iron ore mines in Western Australia, which are remotely controlled from 1,400km away in Perth. A recent notable example of a truck manufacturer jumping onto the driverless bandwagon is German giant Daimler, which piloted an autonomous truck on the German autobahn last October. While this vehicle is a while away from entering the market, industry analysts expect fully autonomous,
TECh Tech FoCUs focus
driverless technology to be available for trucks by 2020, with the start of mass production taking another five to 10 years. The appearance of so many driverless offerings has spurred a furious debate on what such vehicles will mean for the transportation industry, their wider social and economic impact, and the supporting infrastructure and legislation that will be required to make them a reality rather than a distant pipe dream. Before considering why autonomous trucks are a viable option in the GCC at all, it’s worth admitting the issues that have plagued the
region's transportation industry for long. First, a lack of regulation in the GCC contributes to artificially low operating costs for trucking companies. For example, many countries do not strictly enforce load limitations, and trucks often carry loads of up to 75 tonnes, if not more. Drivers also often exceed their maximum number of driving hours per day, exceed speed limits and make more trips than allowed. Companies cut corners on maintenance, and many trucks operate in conditions that would be unacceptable in more mature markets. As a result, Strategy& notes that trucks
cause thousands of accidents in the GCC each year. Overall, accidents involving heavy trucks account for at least 10% of road traffic fatalities, costing up to $8 billion per year in accidents and injuries, according to the consultancy’s estimates. Why go driverless? By largely eliminating the human error factor associated with operating conventional vehicles, driverless trucks can significantly address some of these challenges. The technology, therefore, can be immensely beneficial for countries in the region, notes Dr
FEBRUARY 2016 TRUCK&FLEET ME 31
Tech focus
Dr Ulrich Kögler, partner with Strategy& in Dubai.
Dr Richard Viereckl, partner at PwC Germany.
Fadi Majdalani, partner at Strategy&.
“policymakers need a holistic strategy for the introduction of such vehicles, which includes legal, regulatory and infrastructure elements” Ulrich Kögler, partner with Strategy& in Dubai. “GCC countries will benefit from autonomous trucks more than any other region in the world. The technology can reduce fuel costs, dramatically reduce the number and cost of accidents, reduce expatriate labour and create high value-added technology jobs and firms.” Looking specifically at fuel efficiency, some estimates suggest that driverless truck technology will increase the efficiency of cargo trucks by 15-20% through computeroptimised acceleration and braking, Kögler notes. Autonomous trucks will also be able to platoon, a technique in which two or more trucks travel together with only a small gap between them, reducing drag for the trailer in front and allowing the truck behind to draft in its wake. Truck-makers like Volvo and Scania are already studying the benefits of such technology. Another key advantage is safety, he says. “Driverless trucks have the potential to significantly cut down the number of accidents caused by drivers or mechanical failures, as the vehicles will be able to monitor themselves and anticipate technical problems."
32 TRUCK&FLEET ME FEBRUARY 2016
"Governments can also more easily enforce regulations such as weight and speed limits, restricted hours and access to highways. Moreover, as fewer trucks will be required due to higher utilisation, the region will have less traffic congestion.” For the transportation industry, asset utilisation will also increase for each vehicle, as daily driving hours will not be limited by a driver’s ability to stay alert. Cargo companies therefore will need fewer vehicles, so their overall capital investment will decline. Although driverless trucks will have higher up-front costs than manned vehicles, these expenses will likely be offset by reduced salary costs and increased operating efficiencies, with total lifetime cost savings of 15-20% in the Middle East. By reducing the number of truck drivers required, autonomous trucks can help reduce the GCC’s reliance on low-paid expatriate labour, says Fadi Majdalani, partner at Strategy&. This might be contentious, but it is not necessarily problematic. “[There] is a critical difference between the GCC countries and mature markets. In
developed economies, driverless trucks are already sparking debate because of their potential to eliminate jobs, whereas in the GCC, they can help countries to make good on their desire to reduce the number of low-value expatriate jobs.” In place of the low-value jobs, such vehicles can instead create new technology jobs, such as software developers, data analysts, programmers and control centre operators, Majdalani notes. “Such industrial development aligns with regional initiatives to shift to a knowledge-based economy.”
WhaT’s REqUiREd Given the potential advantages of autonomous trucks, GCC governments should begin creating the right conditions for their adoption, says Dr Richard Viereckl, partner at PwC Germany. They can stay a step ahead of OEMs and begin paving the way for the introduction of driverless trucks even before manufacturers develop the technology. “Policymakers need a holistic strategy for the introduction of such vehicles, which includes legal, regulatory and infrastructure elements.
Tech focus
By taking action today, GCC countries can put the necessary structures and framework in place to support autonomous trucking.” Governments in the region can take their cue from countries like the US and Germany, which are already taking active measures regarding the testing and operation of driverless vehicles. In this regard, policymakers face a list of considerations, Viereckl says. First, they will need to develop a legal framework that can accommodate autonomous vehicles. “On the policy level, the most complex area is the allocation of liability. Currently, primary liability usually rests with the operator of the vehicle. Yet when a driver has limited control over the vehicle, or when the vehicle has no driver on board, the liability issue changes dramatically.” Second, GCC policymakers will need to develop regulations to support driverless vehicles. Standards and regulations for almost all aspects of vehicle licensing, testing and operations will require amendments and upgrades. The regulatory framework will also need to address communications and data policy issues, such as the allocation of short-range communication spectrum, distracted driver laws, data security and ownership, and privacy, Viereckl says. Third, the region should start preparing Daimler piloted an autonomous truck on the German autobahn last October.
its physical infrastructure and technology. Driverless trucks will require infrastructure that allows them to download and access route information and sense real-time conditions. Governments will need to rethink their road infrastructure with driverless vehicles in mind. Viereckl recommends that GCC governments collaborate with original equipment manufacturers and technology firms to research autonomous vehicles further, to proactively facilitate the introduction of driverless trucks on roads in the region. “[This] will not only benefit the industry development globally, but also put the GCC at the forefront of one of the most promising technologies in transportation,” he says. To further push the adoption of this technology, governments can also provide financial and other incentives to cargo companies, such as subsidised loans to cover the cost of assets. Moreover, governments can create a negative incentive for conventional trucking, through stricter enforcement of current regulations and new technical and environmental standards. “By thinking proactively about these issues, GCC countries have a chance to get ahead and become global leaders in an evolving technology.”
the question of liability The move towards
Another
autonomous
controversial and
passenger vehicles
much discussed
is gaining traction
area of the legal
every day, and
framework is the
many driverless
set of principles
vehicles are
that will guide
already on roads.
the programming
Experimental self-driving vehicles such as Google’s driverless cars have travelled more than 1 million km on US highways since 2011. Car manufacturers including Ford, Volvo, Toyota, Audi and BMW have
of the software for autonomous vehicles. This software will have to make choices in case of unavoidable accidents that could result in harm to people and property. Insurance
announced plans for
companies will
the mass production
also need to adapt
of autonomous cars
to driverless
in the near future.
vehicles, he adds.
A notable recent
“Specifically,
announcement
insurance firms will
came from the
require a sound
Renault-Nissan
and reliable legal
alliance, which is
and regulatory
looking at launching
framework
more than 10
addressing a
vehicles with
broad set of
autonomous drive
risk and liability
technology over the
questions they
next four years.
will face. Insurers
All the talk about
will only provide
driverless vehicles,
coverage if they
however, is giving rise to questions over the allocation of liability in case of accidents. Without a driver on board, or when a driver isn’t actively operating a vehicle, liability understandably
can make a pure commercial case.” “As such, they require certainty about the allocation of risks and liabilities to different stakeholders, such
becomes a lot
as manufacturers,
more complex.
owners, insurers,
Governments will
etc. Potentially
need to put rules in
most important is a
place to tackle this,
clear answer on the
without creating
liabilities in case of
disincentives for
fatalities incurred
manufacturers,
by an autonomous
Viereckl notes.
vehicle.”
FEBRUARY 2016 TRUCK&FLEET ME 33
new vehicles
REdEsignEd RAV4 now in UAE showRooMs Al-Futtaim Motors, Toyota’s UAE distributor, has announced the launch of the newly redesigned RAV4, one of the brand’s most popular crossover vehicles. Available in four different grades – EX and VX (4x2), as well as GXR and VXR (4x4 fulltime) – the 2016 RAV4 is powered by a 2.5L four-cylinder engine, producing 177bhp at 6,000rpm and 233Nm of torque at 4,100rpm, mated to a six-speed automatic transmission. “The RAV4 has been one of our best performing vehicles since the launch of the fourth generation in 2013,” said Alan Carpenter, Toyota general manager Sales and Marketing at Al-Futtaim Motors. “It was the world’s original crossover SUV when it was introduced in 1994, and 22 years later it remains one of the most loved vehicles in the Toyota line-up.” The 2016 RAV4 gets a redesigned front fascia with LED headlights and DRL, redesigned LED tail lights and redesigned 18-inch alloy wheels. Safety features include six airbags as well as traction control (TRC), electronic brake-force distribution, enhanced vehicle stability control, hill assist control and brake assist, among others.
233nm:
Torque at 4,100rpm
gMC LAUnChEs ALL-nEw 2017 ACAdiA GMC has introduced the all-new 2017 Acadia, offering customers a midsize crossover positioned between the compact Terrain and full-size Yukon. Originally introduced about a decade ago, the Acadia had its strongest sales year ever
34 TRUCK&FLEET ME febrUArY 2016
in 2015, with 96,393 deliveries worldwide. Depending on the model, the 2017 edition is available with five-, six- or sevenpassenger seating, while offering greater manoeuvrability than the first-generation model. “GMC is a strong, growing premium
brand and the Acadia is a cornerstone of our success story,” said Duncan Aldred, vice president of GMC Sales and Marketing. “The all-new Acadia leverages GMC’s proven SUV experience to take on and shake up one of the largest vehicle segments, with a strong blend of design, technology and capability.” The new Acadia is 318kg lighter than the current model, making it more fuel-efficient. A new 3.6L V-6 engine is more powerful and efficient than the current model, while offering over 1,800kg of estimated trailering capability (with the available towing package). It is GMestimated at 310hp and 9.41L/100km highway. The new Acadia retains a front-drive layout with available all-wheel drive. All models feature a new drive mode selector, which allows the driver to alter chassis and powertrain attributes to suit a variety of driving conditions. Front-drive models offer Normal (2x4), Snow, Sport and Trailer/Tow modes, while AWD models offer 2x4 (AWD disconnect), 4x4, Sport, Off Road and Trailer/Tow modes.
new vehicles
nissAn hiTs ThE dUnEs wiTh PATRoL dEsERT EdiTion The Nissan Patrol, one of the most popular SUVs in the region, has been made more off-road capable with the launch of the Patrol Desert Edition. The new model has been conceptualised and developed specifically for the Middle East in collaboration with motorsports personality Dr Mohammed Ben Sulayem. The vehicle made
its debut at the Dubai Motor Show last year. “The development of the Nissan Patrol Desert Edition followed a study that we conducted in the GCC, which outlined that our consumers wanted an ultimate offroading version of the Patrol tailored to the region,” said Samir Cherfan, managing director of Nissan Middle East.
Visually identifiable with special ‘Desert Edition’ and ‘MBS’ badges, the new model is based on the Nissan Patrol LE, powered by a 5.6L V8 engine that generates 400hp and 560Nm of torque. It is mated to a seven-speed automatic transmission that incorporates manual mode and synchronised rev control. “To lend my initials to any vehicle, it has to be the best of its kind,” says Dr Ben Sulayem of his involvement in the project. “It was particularly thrilling for me to have so much influence over the technical specification of what was already the ultimate off-road machine.” Features on the Patrol Desert edition include special skid plates for underbody protection, in addition to an on-board tyre inflator and bead-lock wheels that enable tyres to be used at extremely low pressures. The suspension has been specially tuned after extensive and gruelling sessions of desert testing. The new Nissan Patrol Desert Edition is priced at $69,430 in the UAE. Prices vary depending on market.
2016 ChEVRoLET CAPRiCE goEs on sALE in ThE MiddLE EAsT The 2016 Chevrolet Caprice is now available for sale in showrooms across the Middle East, the manufacturer recently announced. Available in four trim levels – LS, LTZ, SS and Royale – the 2016 Chevrolet Caprice is powered by a 6.0L V-8 engine with a sixspeed automatic transmission. The Caprice’s 6.0L engine – rated at 360hp and 521Nm of torque – also features Active Fuel Management technology, which saves fuel by allowing the engine to operate on only four cylinders during certain light-load driving conditions. The new Caprice is equipped with 18inch aluminium wheels and a standard tyre pressure monitoring system. The vehicle also offers eight-way power adjustability on the driver and front passenger seats as a standard feature on LTZ, SS and Royale models. All Caprice models feature a fourwheel independent suspension with heavyduty components. Turning diameter of 11.4m and ground clearance of 142.2mm
enable maneuverability on the vehicle. The sedan is equipped with the Chevrolet MyLink infotainment system, standard on SS and Royale models. The system includes a seveninch colour touch screen with colour connected AM/FM stereo radio, navigation, CD player, mp3 playback and USB port. Customers can opt
to purchase an integrated navigation system. All 2016 Caprice owners will benefit from the Chevrolet Complete Care after-sales package, which promises one-hour servicing, two-day advanced booking, a regional threeyear / 100,000km warranty and four years of regional 24x7 roadside assistance.
6.0L V8:
Engine on the Caprice
febrUArY 2016 TRUCK&FLEET ME 35
WORKSHOP
WORKSHOP Maintaining yOuR fleet’S efficiency
Dubai gets tough on illegal truck parking
The RTA has built six resting stops for trucks so far.
Dubai’s Roads and Transport Authority (RTA) has set out procedures and controls to curb the parking of light and heavy trucks, along with their trailers, on road shoulders and non-designated spots. This practice is hazardous to traffic movement and undermines road safety, the RTA said. Last year, the authority issued 227 tickets to offenders, locked the wheels of 141 vehicles and impounded 190 others, said Eng Maitha bin Udai, CEO of RTA’s Traffic and Roads Agency. “This phenomenon is quite rampant
27%
Decrease in road traffic deaths caused by speeding in Abu Dhabi last year. 36 TRUCK&FLEET ME JANUARY FEBRUARY2016 2016
all over industrial areas of the emirate. Many companies illegally utilise lands and open areas to park their vehicles, although they are committed to provide designated parking spaces for those vehicles.” It is prohibited in Dubai to park vehicles in a manner that obstructs traffic movement. The RTA has issued special permits for companies to streamline the parking of vehicles for loading and offloading, the RTA said. In case of illegal parking, the authority
is entitled to remove violating vehicles and claim removal expenses from the offender. “Our objective is to align such processes with the international traffic safety standards [and] maintain the safety of road users,” bin Udai said. The RTA has so far constructed six resting stops for trucks and is in the process of building more along Emirates Road, Sheikh Mohammed bin Zayed Road, Dubai-Hatta Road and Ras Al Khor Road. These stops are built to prevent unauthorised parking on road shoulders.
HyUndai UaE oFFERs nEw waRRanTy Juma Al Majid, Hyundai’s UAE dealer, has announced an offer allowing buyers to select a new warranty option of four years/unlimited mileage at no extra cost. The offer is available at Hyundai’s UAE showrooms for its range of
passenger models (excluding the Genesis, Genesis Coupe and Centennial). Customers can choose either Hyundai’s current default warranty of five years/100,000km or the new warranty of four years/ unlimited mileage.
WORKSHOP woRKsHoP
autOMecHaniKa KicKS Off in JeddaH
The inaugural Automechanika Jeddah took place last month, with over 170 exhibitors from 27 countries.
The three-day event was held at the Jeddah Centre for Forums and Events. Local and international manufacturers showcased products including automotive parts and systems, accessories, tyres, batteries, lubricants and tuning equipment. Official launch partners included 3M Saudi, Juffali Industrial Products Company (JIPCO) and Hardex Brakes. “We are using our laboratories across the world to create products that will make our roads safer,” said Nicholas Brunet, country business leader at 3M Industrial Business Group, Saudi Arabia. “Automechanika Jeddah is a great platform to drive home our message.”
QuicK tiPS Save fuel by following these tips from Chevrolet Arabia: 1. Drive smoothly. Not accelerating smoothly is one of the most common mistakes drivers make on the road. According to Chevrolet engineers, by driving smoothly, drivers can improve mileage by approximately 20%. 2. Use cruise control to maintain a constant speed over time. This is much more efficient than speeding up and slowing down over and over again. 3. Roll up the windows. Leaving windows open on the highway increases air pressure in your car. This consumes more energy than the air conditioner
TasjEEL, HERTz inK dEaL
does, slowing you down and consuming fuel.
Tasjeel, a UAE-based vehicle testing and registration service provider, has signed a contract with car rental firm Hertz to provide all tests required for registration of the company’s fleet of vehicles. Under the agreement, Tasjeel will handle vehicle inspection services prior to registration, which will help Hertz ensure the smooth registration of its fleet.
4. Check tyre pressure. Even with tyres just five pounds under the recommended air pressure, the engine will have to work harder to turn the wheels. It is recommended that tyres be checked at least once a month. 5. Avoid excess idling: A car gets 0km per litre when the engine is idling. Turn off your engine when your vehicle is parked.
QAtAR lAUNchEs micRochips to stop FUEl Bill FRAUD Qatar Fuel (Woqod) has started installing electronic microchips in vehicles to curb malpractice, such as petrol station staff issuing inflated bills or fraudulent acts by customers. In the first phase, over 60,000 vehicles already registered with Woqod will be covered under the new smart fuelling and payment system, the Peninsula reported. A senior Woqod official said the system will eliminate the possibility of irregularities like price manipulation, frequent refuelling by unscrupulous
motorists for pilferage and other issues. Named Woqodi, the system entails a microchip affixed in a vehicle near the fuel tank opening. The chip carries details of the vehicle, such as registration number, name and location of the petrol station where a customer prefers to refuel, and other details as desired. The chip is priced at QR500 for companies and QR350 for private vehicles. The technology will also help cut down on diesel smuggling, it was reported. Woqod is offering the system only to its pre-registered customers, including
those with big fleets, with a limited number. The system “will provide full control to customers about the details such as accurate bill, amount purchased, etc. It will also help reduce refuelling time,” said Yousef Al Sulaiti, manager – Information Technology at Woqod.
“Many cOMPanieS illegally utiliSe landS and OPen aReaS tO PaRK tHeiR veHicleS, altHOugH tHey aRe cOMMitted tO PROvide deSignated PaRKing SPaceS fOR tHOSe veHicleS” Maitha bin Udai, CEO of RTA’s Traffic and Roads Agency. FEBRUARY 2016 TRUCK&FLEET ME 39
PARTING SHOT
conquerIng the Dak ar
gerard de rooy clinches his second dakar victory with iveco
I
veco conquered the top of the podium in the 2016 edition of the gruelling Dakar rally, with the Netherlands’ Gerard de Rooy bagging top honours at the race. The win is de Rooy’s second victory in the Truck category, after he previously won with Iveco in 2012. Iveco’s triumph at the Dakar follows the recognition the brand received after the Eurocargo and Magelys were named International Truck of the Year 2016 and International Coach of the Year 2016 respectively, said Pierre Lahutte, Iveco brand president. “Iveco puts the excellent reliability of its
40 TRUCK&FLEET ME FEBRUARY 2016
trucks on the trails of the Dakar rally, enabling the team’s outstanding pilots to give their best performance in the race. I would like to thank Gerard de Rooy, Federico Villagra, Anton Van Genugten, Pep Vila and Ales Loprais and their remarkable teams for the determination and drive they have shown.” This year, the route of the rally – billed as the most competitive of its kind in the world – stretched 9,000km across Argentina and Bolivia. Piloted by the Catalonian Moi Torrllardona and assisted by Polish mechanic Darek Rodewald, de Rooy was able to maintain a constant pace with his Iveco Powerstar
throughout the race. The Dutch champion dedicated his victory to his Belgian navigator, Jurgen Damen, who passed away last year. On the podium in third place at Dakar 2016 was Argentinian pilot Federico Villagra, while Ton Van Genugten finished fifth in his Trakker. Spaniard Pep Vila, behind the wheel of another Iveco Trakker, took tenth place. Iveco’s success at this year’s rally was powered by Iveco Cursor 13 engines, manufactured in Bourbon Lancy, France and specifically prepared for the race by FPT Industrial at its R&D centre in Arbon, Switzerland.
Apollo Tyres Middle East FZE T : + 971 4884 1603 www.apollotyres.com
Middle East Tyres LLC
T : + 971 4255 7172
IVECO TRIUMPHS AT THE DAKAR 2016
3 IVECO in the top 5 Gerard de Rooy, the leader of the Petronas De Rooy Iveco team, is overall winner.
RSTAR
WE ECO PO
IV
#501
OOY D DE R GERAR rrallardona To Moisés odewald Darek R
FINAL RANKING: POS. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
DRIVER
De Rooy Mardeev Villag ra Stacey Van Genugten De Baar Nikolaev Valtr Ver sluis Pep Vila Roca Ardavichus Van den Heuvel
1st VEHICLE
Iveco Powerstar Kamaz Iveco Powerstar MAN Iveco Trakker Renault Trucks Kamaz Tatra MAN Iveco Trakker Tatra Scania
6 R #51 AKKE ENUGTEN R T O NG IVEC ON VA
TIME 44:42:03 45:52:30 46:22:58 47:05:04 47:13:02 47:46:10 48:21:26 48:36:33 48:39:55 49:37:07 49:43:09 49:57:44
ANT
impt van L Anton d r e an E Peter v
IVECO PO
WERSTA
FEDERIC
OV
R #514
ILLAGRA Jorge Pérez Companc Andrés M emi
3rd
Thanks to: , Xavi Colomé Roqueta and Marc Torres Sala , the fast service truck who finished 10th Pep Vila Roca Aleš Loprais , Ferrán Marco Alcayna and Bernard der Kinderen , who unfortunately abandoned during stage 5 The FPT team in Arbon who specially prepared Iveco’s Cursor 13 engines manufactured in Bourbon Lancy plant The whole team, sponsors, friends and supporters.
“I wish to dedicate our victory to my former co-pilot Jurgen Damen
who accidentally passed away last year” Gerard De Rooy
AFTER MAGELYS, COACH OF THE YEAR 2016 AND EUROCARGO, TRUCK OF THE YEAR 2016 IVECO TRIUMPHS AT THE DAKAR 2016, THE WORLD’S TOUGHEST RALLY.
5th