pickup power al-futtaim reveals all-new 2016 hilux
020 SEPTEMBER 2015
MIDDLE EAST
charting a new course bilal al ribi talks strategy
financing your fleet funding options in the market
onfoton, the move volvo and higer discuss their best-selling buses
06 CONTENTS
A supplement of Cmme
12
MIDDLE EAST
GRoUp CHAIRMAn AnD 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
22
editOrial
All eyes on the hilux
ACTInG EDIToR STian oVERDaHL stian.overdahl@cpidubai.com +49 176 271 203 87 REpoRTER JERuSHa SEquEiRa jerusha.sequeira@cpimediagroup.com +971 4 375 5477
Regular commuters on the UAE’s roads will certainly be familiar with the sight of the Toyota Hilux. Sturdy and trustworthy, the pickup
NETWORK
04 / new roAds in sAudi KSA announces new road projects to link the cities of Makkah and Jeddah.
has long been a favourite with fleet owners
advertiSinG
and businesses for their day-to-day needs.
CoMMERCIAL DIRECToR MicHaEL STanSFiELD michael.stansfield@cpimediagroup.com +971 4 375 5497
Last month, Al-Futtaim Motors revealed the 2016 version of their popular workhorse at a glittering launch event in Dubai’s Madinat Jumeirah resort. The event is covered in more detail on page 22.
06 / ChArting A new Course Bilal Al Ribi, the new GM of EMC’s Daimler Commercial Vehicles, discusses his plans.
commercial vehicle in the UAE and not available to retail buyers. However, if the success of vehicles like Ford’s F-150 or the GMC Sierra is anything to go by, there is a market for pickups in the leisure segment, particularly among off-
COvER sTORy
12 / on the move A look at the best-selling buses from Volvo, Foton and Higer for different industry segments.
road enthusiasts. Meanwhile, small business
18 / funding your fleet We examine how banks and dealers are catering to the financing needs of fleet owners.
JUnIoR GRApHIC DESIGnER PERciVaL ManaLaYSaY MarKetinG MARKETInG MAnAGER LiSa JuSTicE lisa.justice@cpimediagroup.com +971 4 375 5498 CirCUlatiOn & PrOdUCtiOn
can be used for work and with family. If the
DISTRIBUTIon MAnAGER SuniL KuMaR sunil.kumar@cpimediagroup.com +971 4 375 5476
advertising campaign for the new Hilux is Toyota is positioning its pickup towards. Expanding the scope of the Hilux, therefore, is high on Al-Futtaim Motors’
pRoDUCTIon MAnAGER ViPin V. ViJaY vipin.vijay@cpimediagroup.com +971 4 375 5713 diGital
agenda moving forwards, and it is looking
WEB DEVELopER MoHaMMaD awaiS uMaiR SHaMiM
at working with regulatory bodies in the
FEaTUREd vEhiCLE
Emirates to tap into the opportunity.
Al-Futtaim launches the all-new 2016 Toyota Hilux pickup for the UAE market.
fleet owners in the region remains unchanged:
22 / riding high on hilux
ART DIRECToR SiMon coBon
owners might also find utility in a vehicle that
any indication, this is certainly a segment that
FEaTURE
SALES EXECUTIVE BiPin SonEJi bipin.soneji@cpidubai.com +971 4 433 2856 deSiGn
Currently, the Hilux is categorised as a
iNTERviEW
SUB EDIToR aELRED DoYLE
Future plans aside, what’s important to
PUbliShed by
a durable vehicle with high resale value, backed up with solid after-sales support and financing
WORKshOp
28 / kuwAit bridges gAp
options. On those counts, Al-Futtaim Motors is certain the Hilux will continue to deliver.
Kuwait to ease the flow of Iraq-bound Jordanian trucks through its borders.
Registered at iMPZ Po Box 13700 Dubai, uaE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com Printed by Printwell Printing Press LLc
paRTiNg shOT
32/ loAding smArt The story behind LoadMe.ae, the Middle East’s first online freight exchange platform.
© copyright 2015 cPi. all rights reserved
Stian Overdahl ACting 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.
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Abu Dhabi approves 26 major projects in second quarter
Total floor area of developments given green light triples to 2.3 million square metres, Abu Dhabi Urban Planning Council says
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Jobs advice: What Gulf construction firms look for
when hiring Top trends driving recruitment in the sector
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Dredging the New Suez Canal in Egypt The new waterway marks a significant achievement by men and machines. See photo galleries at: meconstructionnews.com/photos
Dubai set to break new records with world’s tallest
residential tower Planned 711m-tall tower to be
Name withheld; response to story ‘Modi visit: UAE, India aim to raise $75bn infrastructure fund’
part of Meydan One development, which will also include world’s longest indoor ski slope
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meet October 2016 project deadline
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Dubai Parks and Resorts’ expenditure tops $1bn
Second-quarter costs came to $218m
“There were some impressive numbers being thrown around after [Indian Prime Minister] Narendra Modi’s visit to the UAE – not least, the billions being put into a fund for muchneeded infrastructure. But to achieve such ambitious plans India will have to make doing business much easier for foreign firms. Buying land there is a nightmare and there’s a whole host of bureaucratic complications and legal oddities that firms need to grapple with.”
Another ‘bubble’ is about to burst
The boom is over, prices will fall further
21%
11%
The ‘stabilisation’ is a positive sign
Prices will start rising again soon
Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com 2 TRUCK&FLEET ME SEPTEMBER 2015
NETWORK
NETWORK 09 15
YOUR MONTHLY GUIDE TO THE MIDDLE EAST’S TRUCK AND FLEET OPERATOR NETWORK
About 35 million people are set to benefit from the new projects.
ksa announces new roads to link Makkah, Jeddah Saudi Arabia has announced new road projects linking Makkah with Jeddah, in order to facilitate traffic flow between the two cities. About 35 million people will benefit from the projects, which will also feature wider roads and warning signs, Arab News reported. The new projects are the Makkah-Jeddah Highway, the Breman-Hada Al-Sham-Makkah Road, the Makkah-Jeddah Direct Roadway, and a road for cargo and freight trucks to link the Second Ring Road in Jeddah and the Hada-AlJamoum Roadway. The 72km Makkah-Jeddah Highway will extend from Al Khair Bridge in Jeddah to the Al-Dawariq Roundabout in Makkah, and will include four lanes in both directions. Work is also underway on the 53km Old Makkah-
Jeddah Road, it was reported. The Hada Al-Sham-Makkah Roadway facilitates travel to King Abdul Aziz International Airport in Jeddah for passengers coming from Makkah and Taif. The Ministry of Transport is currently working on providing an alternative route linking Makkah and Jeddah, estimated to cost more than SR86.9 billion ($23.1 billion). Work is also in progress on the truck and cargo roadway linking the Second Ring Road in Jeddah with Hada and Al-Jomoum. The road will facilitate the movement of cargo trucks from Al-Mina and southern Jeddah in the direction of Hada-Al-Jomoum, and will reduce the movement of trucks on the Al-Khair Bridge (Mina) and the Makkah-Jeddah Highway.
KIA bAGS KUwAIT fLEET DEAL Kia Motors Middle East and Africa has won a contract to supply 60 units of the Kia Quoris sedans to the Kuwait National Assembly, the company announced in a statement. Alex Chung, president of Kia Motors Middle East and Africa, said the Korean auto-maker will be supplying Quoris sedans equipped with VIP packages to meet the needs of Kuwaiti government officials. National Agencies Group, Kia’s dealer in Kuwait, will supply the fleet. “Serving the government through our prestigious Quoris is a testament to its upscale amenities. We have a strong track record of experience working together with government departments around the world, and we’re looking forward to supporting the important work of the Kuwaiti government,” Chung said. The 2015 Quoris comes with a 420hp V8 engine under the hood. Equipped with the VIP package, the vehicle offers added amenities such as reclining outboard rear seats.
ThE TRANsPORTATiON AND LOgisTiCs iNDUsTRy iN ThE mENA REgiON gENERATED $66 biLLiON iN 2013 4 TRUCK&FLEET ME
SEPTEMBER 2015
NETWORK
ivECO DAiLy sCOOPs AWARD The Iveco Daily has bagged the Best KEP Transporter 2015 award, conferred by industry professionals from the express courier and postal sector. A panel of judges in Germany put the Daily 35S13 through a multi-vehicle appraisal. The Daily was selected for its accessible loading space, driver comfort and the new Hi-Matic eight-speed automatic gearbox.
GCC CaR saLEs TO dip FOLLOWiNG OiL dECLiNE Car sales in the GCC countries are expected to slow down in 2015 compared with the double-digit growth of 2014, as lower oil prices dampen economic growth. According to data from IHS Automotive, 890,000 vehicles were sold in the region in the first half of 2015. Overall sales this year are expected to reach about 1.88 million units, compared to 1.78 million in 2014 – growth of 5.6%. The UAE led the GCC region in car sales growth during the first half of this year at 3.5% growth. Saudi Arabia followed at about 3.2%, while Kuwait showed gains of barely 1% and Oman recorded negative
growth. Average growth across the GCC in the first half of 2015 was over 3%.
IKCO hopes to sign a 10-year deal with Daimler to produce trucks and buses in Iran.
iRAN’s iKCO hOPEs TO iNK DEAL WiTh DAimLER The Iran Khodro Industrial Group (IKCO) hopes to sign a manufacturing agreement with Daimler AG, given international sanctions look set to be lifted, it said in a statement. According to Hashem Yekke Zare, chief executive of IKCO, Iran’s hard times have come to an end and many foreign companies are now looking at doing business with the vehicle manufacturer. IKCO hopes to sign a 10-year agreement with Daimler to produce trucks and buses in Iran, per Yekke Zare. The German automotive giant once partnered with IKCO, but the imposition of sanctions
JAIDAH AUTOMOTIvE DELIvERS CHEvROLET fLEET
Twenty-six Chevrolet Cruze vehicles will be supplied to Pearl Limousine.
Jaidah Automotive, the dealer for Chevrolet vehicles in Qatar, has signed with Pearl Limousine for the delivery of 26 2015 Chevrolet Cruze models.
The deal was worth about $412,000 (QR1.5 million), the Gulf Times reported. Partnering with Pearl Limousine offers Jaidah Automotive a new platform to reach and support new businesses and enlarge the Chevrolet fleet in the Qatari market, a company statement said. “The Chevrolet Cruze 2015 is one of our bestselling models, and embodies all that Chevrolet stands for,” said Hussam Abo Abdoh, fleet & leasing manager at Jaidah Automotive. “We are delighted to partner with a top private transport company like Pearl Limousine, and hope to further strengthen this relationship in the future.”
ended trade relations, he added. Daimler has remained tight-lipped on the specifics of any talks with IKCO, but the automaker is looking to make a comeback in the Iranian market, a senior executive said recently. “The position for us in terms of trucks and cars and our broad portfolio is a good one,” said Daimler CFO Bodo Uebber, quoted by Bloomberg. “It’s too early to say how far that can be, but we are in contact with our business partners to have discussions on how to restart.” Daimler pulled back from business in Iran in 2010 amid rising political tensions, giving up a 30% stake in Iranian Diesel Engine Manufacturing (a joint venture with IKCO) and withdrawing plans to export three-axle trucks. However, according to Bloomberg, it has now joined the ranks of other European carmakers like Volkswagen AG considering
UAE’s shiFT CAR RENTAL PLANs TO iNvEsT $109 miLLiON iN ExPANsiON.
a return to the Islamic Republic – a market that could average 1.7 million vehicles in annual sales in the longer term, per estimates from IHS Automotive.
SEPTEMBER 2015 TRUCK&FLEET ME 7
FEATURE
Funding your Fleet Funding your Fleet Jerusha sequeira examines how banks anD Dealers are working to meet the financing neeDs of fleet owners
A
s various industries like construction, infrastructure and logistics report rising growth in the GCC, there is bound to be an increased need for transportation services. Consequently, firms across the region will need to purchase new vehicles to keep up with the growing demand. According to estimates from Emirates Money, the consumer finance arm of Emirates NBD, about 16,000 units of heavy and light commercial vehicles were sold in Dubai alone in 2013, 15% growth from the previous
year. Around 35% of these vehicles could be classified as heavy commercial vehicles, while the rest were light and heavy buses. This growth trend is not expected to be confined to the UAE, and commercial vehicle manufacturers are optimistic about the potential of the Gulf region as a whole. However, for any business looking to build a new fleet of vehicles or expand an existing one, access to easily available financing is undoubtedly a key consideration. With a variety of funding options that can be customised according to needs available, fleet customers can now obtain loans without
much trouble and save their capital for other requirements, finance providers say. “Traditionally, the PMV sector has been slightly under-served, but there are now a lot of financial options available for fleet owners,” says Vikas Thapar, CEO of Emirates Money, which offers a comprehensive range of fleet financing solutions with loans of up to AED7 million ($1.9 million) for commercial vehicles and construction equipment. Payment options on the loans are customised according to customer requirements, and interest rates vary but typically range between 3-5%. “On certain occasions we have tie-ups
16,000: commercial vehicles sold in Dubai in 2013 8 TRUCK&FLEET ME SEPTEMBER 2015
FEATURE
Vikas Thapar, CeO of emirates Money.
where we come up with joint offers which offer better value for customers,” Thapar says. One example is the recent signing of a preferred partnership agreement with CNH Capital, the financial services business of CNH Global. The agreement foresees financing activities for commercial vehicles and equipment sold under CNH Industrial brands, which include Case Construction Equipment and Iveco. The partnership with CNH Capital will help customise financial solutions for fleet owners, Thapar notes. “We're working in terms of giving competitive pricing, limits, services and turnaround times to our customers. We are also looking at some bundled options where we look at certain low down payment options for our customers.” Emirates NBD has partnerships with other major dealers in the UAE as well, through which it offers special financial arrangements to customers, he says. Meanwhile, other banks are also looking to capitalise on the fleet segment. Abu Dhabi Islamic Bank (ADIB), for instance, caters to a client base including rent-a-car, transportation, logistics,
trading and manufacturing companies, says Mahdi Kilani, head of Business Banking at ADIB. The bank also provides heavy equipment financing, and offers up to 48 months finance at an interest rate starting from 4.5% flat per annum. It's not just banks; dealers are also increasingly offering financing options for customers. Al Futtaim Auto and Machinery Company (FAMCO), has a financial services division to help fleet owners with their funding needs. “We understand that cash flow and financing are as important as the quality and reliability of equipment,” says Mahmoud Turkieh, head of Financial Services at FAMCO. “Our aim is to help customers to conserve their capital and cash for where and when they need it the most, which is to grow their business. With this in mind, we provide flexible, cost-effective and tailor-made solutions to meet the financial requirements of our customers.” FAMCO uses multiple funding sources to find the right fit for each customer based on his needs and credit profile, he notes, recounting different instances where the dealer has helped meet client needs. “Our solutions have covered a range of customers, from small businesses looking to obtain a fleet of Volvo Trucks to large corporations seeking to secure new projects across the UAE.” Despite the abundance of options available for existing and potential fleet owners, Thapar notes that the segment is a niche that requires professionals well-versed in customer needs. “At Emirates Money, we have been working in this industry for the past five to six years. We have hired people from within the PMV industry to understand the usage of assets, the mileage of assets, the returns and the kind of revenue that can be generated from each asset. They can also advise our customers in terms of where to get the best pricing.” While it may be easy enough for customers to get a loan, paying it back is generally where the challenge arises, and fleet owners might have to deal with uncertain payment schedules. However, Thapar is quick to assure
Mahdi Kilani, head of Business Banking at aDiB.
that this has been accounted for. “We understand our customers’ payment schedules very well, and we understand the risks associated with their contracts. Obviously, in any lending business, you come across certain industries and certain sectors where customers might have difficulties. “We are able to do a comprehensive evaluation of our customers’ [needs] and offer them better terms and conditions and better limits. We are also able to advise them on the kind of assets they should buy.” About 60-70% of Emirates Money’s loans in a month are made to existing customers, he adds. Meanwhile, Turkieh points out that it can be challenging to arrange financing for small businesses and start-ups. FAMCO tackles this using thorough analysis and leveraging its relationships with different banks to meet customer needs. “Our multi-bank approach and financial services expertise helps find the perfect fit for our customers’ requirements, to secure the best rates and terms based on the customer’s credit profile.”
“We have hired people From Within the pmv industry to understand the usage oF assets, the mileage oF assets, the returns and the kind oF revenue that can be generated From each asset” SEPTEMBER 2015 TRUCK&FLEET ME 9
INTERVIEW InTERVIEw
charting a nEw CoURsE
Bilal al RiBi, the new geneRal manageR of emiRates motoR Company’s DaimleR CommeRCial VehiCles DiVision, tells jeRusha sequeiRa how the Company's RestRuCtuRing will Benefit CustomeRs
10 TRUCK&FLEET ME SEPTEMBER 2015
INTERVIEW
F
ew automotive brands boast the dominance in both passenger and commercial vehicle segments that Mercedes-Benz enjoys. This is perhaps why parent company Daimler undertook a global restructuring of its passenger and commercial vehicle divisions to be able to better focus on growth in both. Following the German giant’s lead, Emirates Motor Company (EMC) – the flagship company of UAE’s Al Fahim Group and distributor of Mercedes-Benz vehicles in Abu Dhabi and Al Ain – announced a new operating structure, establishing separate business units for passenger and commercial vehicles. Under the realignment, EMC MercedesBenz Passenger Cars is now led by Nassim Mourani, and EMC Daimler Commercial Vehicles is now headed by Bilal Al Ribi, the new general manager for the division.
With 23 years of experience in commercial vehicles under his belt, Al Ribi is certainly no stranger to the field. “I started my career in diesel engines. After graduation, I started as a maintenance engineer working on trucks with various customers, mainly the military,” he says, in an interview in his office at the EMC premises in Abu Dhabi. “Afterwards, I moved to the US, where I worked for about ten years on commercial vehicles at the owner-operator side, rather than the manufacturer. With fleet companies, I started as a service supervisor and climbed up the career ladder to become regional director of maintenance.” He went on to join the Al Fahim Group in 2012 as general manager for Central Motors and Equipment (CME), a subsidiary of the group dealing in tyres, automotive parts, service and power tools. In May this year, he moved to the commercial vehicles division of Daimler at EMC.
“EMC’s Mission is to offEr transport solutions rathEr than produCts. our ExpErtisE in thE MarkEt EnablEs us to bEttEr idEntify CustoMEr nEEds and to providE valuEaddEd solutions” SEPTEMBER 2015 TRUCK&FLEET ME 11
INTERVIEW
Commenting on the restructuring, Al Ribi notes that the Al Fahim Group made the call in order to cope with increased demand in both segments. “We aligned our decision with Daimler’s organisational approach worldwide. Now, as a commercial organisation, we will focus on trucks, vans and buses.” He feels honoured to have been selected for his new position, he adds. “My experience in the market with CME allowed me to better leverage my plans with commercial vehicles due to the fact that the customers are of the same nature.” The restructuring will allow the company not just to focus more on growing the commercial vehicles business but also to better cater to fleet customers. “Our plan of action is to be close to customers, because commercial vehicles need support in the field. We have presence in a couple of the main fleets in Abu Dhabi, and we're planning for another two to three fleets this year.” “EMC’s mission is to offer transport solutions rather than products. Our expertise in the market enables us to better identify customer needs and to provide value-added solutions for long periods of operations.” These solutions are going to be more in demand going forward, as the market for commercial vehicles in the UAE capital looks increasingly promising. “There is definitely growth,” he says, adding that the construction and infrastructure sectors in particular hold potential, and are
12 TRUCK&FLEET ME SEPTEMBER 2015
set to contribute to increased demand. However, given Abu Dhabi’s status as an oil producer, one wonders whether the market for commercial vehicles will be affected by the oil price declines of recent months. “To tell you the truth, we did not see a direct impact. There has been minimal impact on the spare parts and service side, however,” Al Ribi says. “People are slightly reluctant to store a large stock of spare parts, although we are still witnessing high consumption. I still see projects in Abu Dhabi moving fast, and there are many in need of commercial vehicles, such as infrastructure projects,
EMC's restructuring will allow it to better cater to the needs of fleet customers.
for example. To enable these to materialise, you need durable, high-quality trucks.” And in the trucks segment, EMC is more than ready to compete, he asserts, with the company’s portfolio designed to cover all needs and applications. The Atego is tailored to the medium-weight segment, and the Zetros and Unimog to special applications like oilfield operations. Meanwhile, the Axor and Mercedes-Benz’s ever-popular workhorse, the Actros, caters to heavy-duty applications. The Actros, in particular, continues to maintain its stronghold in the heavy trucks market, and is used across the board in the construction, oil and gas, and transport
INTERVIEW
and logistics sectors, to name a few. EMC and Daimler also have new offerings in the vans segment, he says. “We have some plans for the rest of this year, plus the beginning of next year and the three years to come, with the introduction of new models in vans.” A new nomenclature will also be adopted. For instance, in 2016, the Viano will be called the V-Class, which will be a totally new vehicle. Meanwhile, the Vito and Sprinter are already popular options in the market, and he expects their success to continue into 2016. The Sprinter, covered in last month’s issue, is popular in goods transport applications, as well as the ambulance segment, and the Vito is used in taxi fleets, airport shuttle buses and for transporting VIP customers. Additionally, EMC is looking at stepping up its offering in the bus sector, in line with the Abu Dhabi Department of Transport’s (DoT) plans for upgrading public transport in the emirate. “DoT is executing a master plan for transportation in Abu Dhabi. This will allow us to be part of these new developments, as Mercedes-Benz provides high-quality buses, from large city buses to coaches and small buses,” Al Ribi says. “Soon, we will introduce some of the new 19+1 buses that fit the medium range to target the tourism and educational sectors, where safe buses are needed.” The company is particularly keen on targeting the school bus sector, with vehicles that offer enhanced safety features, crucial for the segment. Features such as seat-belts for all, roll-over capabilities and side air-bags are mandatory on all Mercedes-Benz buses and should also be on school buses. “We will keep pushing for these essential features, as we believe they are vital for the safety of children. Hopefully, in 2016, we will introduce a couple of models to some of the schools in the emirate.” The dealer is also working with the DoT to roll out new regulations regarding truck safety. Along with other dealers and manufacturers, it participates in monthly
EMC is working with Abu Dhabi's DoT to formulate new rules to make roads in the capital safer.
meetings with the department to discuss new rules to make the capital's roads safer. “Once the new regulations have been formulated and become widespread, a completely new category of trucks will dominate the streets of Abu Dhabi, where the loads are less and safety is more promising for people on the roads,” he says. When asked what changes he’s seeing in the market in terms of customers, Al Ribi notes that fleet owners are slowly but surely becoming more interested in better managing their fleet and optimising operational costs. Accordingly, EMC is adopting an even
more aggressive approach to after-sales and maintenance for fleet customers. While it already boasts one of the biggest after-sales and maintenance facilities in the region, the company plans to further enhance after-market support for fleet owners and operators. One method will be through the introduction of the first alignment machine for tractor-trailers in Abu Dhabi. “This is one of our new investments, and we are looking forward to venturing into [other] new investment opportunities in 2016.” The firm also touts the benefits of its costper-kilometre (CPK) solution for fleet owners.
“i still sEE projECts in abu dhabi Moving fast, and thErE arE Many in nEEd of CoMMErCial vEhiClEs. to EnablE thEsE to MatErialisE, you nEEd durablE, high-quality truCks” 14 TRUCK&FLEET ME SEPTEMBER 2015
INTERVIEW
foCus on aftEr-salEs: nEw whEEl alignMEnt MaChinEs Improper wheel alignment on vehicles can cause a range of problems for drivers and fleet owners, including abnormal tyre wear and fuel consumption and increased wear and tear. As part of its preventive maintenance offering, EMC has introduced new wheel alignment systems that quickly check for correct wheel alignment. If wheel angles need to be adjusted, this can be done immediately, or a customer can reserve a later time. “With the after-sales team’s experience in wheel alignment and adjustment of heavy vehicles, you can rest assured that your vehicle rolls straight and secure on the road. The new measuring systems are superior in speed, precision and safety,” Al Ribi says. Planning and foresight is also key when it comes to avoiding tyre wear and excessive fuel consumption, due to incorrect wheel alignment, he adds. “By the time abnormal tyre wear is discovered, the damage is already done. Because of this, it is important to check the wheel angles of your vehicle regularly. Before carrying out a wheel alignment, it is also important to fix wear and tear on bushes and bearings to get correct measurements.”
“Normally, on the maintenance side, we calculate all the services, warranties, spare parts and labour costs, including the average distances travelled based on the customer’s operational needs,” Al Ribi says. “Subsequently, we draft a service contract based on the customer’s mileage. This is part of an initiative that fleet owners are trying to undertake: understanding their initial investment in capital expense, considering fuel costs as well as cost for human resources. This allows them to understand how they can fix their cost and avoid variable expenses in the months ahead.” Looking ahead, Al Ribi plans to adopt a more customer-focused strategy in sales, service and after-sales, to complement the Mercedes-Benz product line-up. “Commercial vehicles will always be needed, particularly with Abu Dhabi’s 2030 vision, and we will make sure we accommodate the needs of the emirate with quality products and services.”
SEPTEMBER 2015 TRUCK&FLEET ME 15
Cover COvER STorY STORY
On the move
Truck & FleeT Me TAKES A LOOK AT HOW BUS mAnUfAcTUrErS ArE WOrKing TO cATEr TO diffErEnT indUSTry SEgmEnTS in THE gcc
As Gcc governments work to improve public transport, demand for buses is expected to rise.
I
n January, Dubai’s Roads and Transport Authority (RTA) reported that public transport in the emirate was used more than half a billion times in 2014, up considerably from the previous year. By 2020, the RTA hopes public transport will make up 20% of all journeys made in the emirate. As an emphasis on sustainability slowly but steadily gains traction around the GCC, governments are seeing the value in upgrading their public transport infrastructure to more efficiently serve the needs of a growing population. Simultaneously, as other industries like education and tourism see growth, there also arises the need for transport options to ferry people around. This creates a valuable opportunity for commercial vehicle manufacturers in the region to supply both government and private
16 TRUCK&FLEET ME SEPTEMBER 2015
sector entities with buses and coaches. Truck & Fleet ME, therefore, decided to speak with manufacturers to glean some insight into their offerings for different industry segments and their plans to tap into the lucrative Gulf market. PUBLIC TRANSPORT The public transport sector in the GCC and wider Middle East is expected to get a boost over the coming years as governments place large orders for buses, in efforts to boost transport infrastructure. Volvo Buses, for one, is seeing increased opportunities in the segment as attitudes towards public transport change in an oil-rich region, explains Steve Hedouin, vice president, Volvo Bus Corporation Middle East and Africa. The manufacturer recently delivered 55
coaches to Dubai’s RTA, as well as a batch of 18 B11R coaches to Sharjah. In Egypt, it has been awarded a tender for 150 city buses for the city of Alexandria, he says. “In the GCC, there is a change in mind-set and there is a greater need for transportation. The cities are booming, and they're increasing in terms of size. Of course, oil is very cheap, but it still seems that the governments are paying more and more attention to fuel efficiency and pollution.” This is bound to create a growing demand not just for more buses, but also buses that run cleaner and meet increasingly stringent emission requirements, he points out. Volvo Buses offers a range of coaches and city buses for the public transport segment, Hedouin says. “For city bus applications, we use three types of chassis. The first one
COvER Cover STORY STorY
is the B7, which is a low-entry, high-floor city bus. We also offer the B7R, which is used in some countries as a city bus." “The second one is the B9, which is offered as a low-floor bus. The third type of vehicle we're offering is called B12MA, equipped with a 12.0L engine. The engine is located in the middle of the chassis and it's an articulated, high-floor bus.” High-floor city buses tend to be cheaper than their low-floor counterparts and are the more popular option with governments running on tighter budgets, Hedouin notes. “In the bus business, if you use a high-floor bus, the cost is usually much more affordable compared to low-entry and low-floor. It's because the design of the chassis is much simpler, there is less engineering, less complicated parts.”
Countries like Egypt which tend to be more price-conscious thus usually opt for high-floor buses for their public transportation needs, he says. SCHOOL TRANSPORT Apart from the public transport sector, an important market segment that contributes to a large share of the demand for buses is school transport. As this is historically a very price-conscious segment in the GCC region, however, European manufacturers typically don’t supply vehicles to it. Chinese brands, on the other hand, are growing increasingly popular in the segment, as their perception in the market steadily improves, says Nihad Alkilani, general manager – Fleet & Commercial at Liberty Automobiles Company, the UAE dealer for Foton trucks and buses.
“In the earlier days, from about 2002 onwards, the market started to accept Chinese buses and coaches due to the cost factor only. European brands completely dominated the market, but since the cost was not feasible for operators, they started accepting Chinese brands. “In the following years, however, Chinese buses underwent significant improvements. Now they sometimes exceed their European counterparts in some areas, and generally they compete very well.” Many Chinese buses have been successfully running in the market without any issues, and customers have started to see the value in the products, he points out. Foton buses were introduced into the market by Liberty Automobiles about two years ago, and the dealer plans to relaunch
SEPTEMBER 2015 TRUCK&FLEET ME 17
Cover STorY
Attitudes towards public transport are changing in the Middle east, Volvo Buses says.
the buses with more high-end specifications to suit the needs of the UAE market. The school sector has been particularly lucrative for the brand, and the company supplies buses to institutions like the International School of Choueifat. Currently, Foton buses are offered with different seating capacities, ranging from 35 to 65 seats. Meanwhile, KHF Automotive, the distributor of China’s Higer buses, is also working on expanding its footprint in the school sector. Safety is a top priority in school buses, and Higer buses come equipped with several features to make them safer, says Reju Joseph, sales manager at the firm. “We mainly focus on safety. Our vehicles come with three-point seatbelts and a reverse camera, which gives an added advantage
to the drivers. Now the school buses come with eight cameras: reverse camera plus the side cameras, and an inside camera.” Higer buses can also be fitted with GPS tracking, he notes. Additionally, the vehicles come with a fire-suppression system inside the engine compartment which is automatically activated in the event of a fire in the compartment. Other safety features include breakable windows and a slip-resistant floor. When asked what school customers typically look for besides safety features, Alkilani notes that they also seek buses that can accommodate the maximum number of students at a reasonable cost. Earlier, many schools depended on buses from Japanese competitor brands, which had an average seating capacity of 30 seats
and came equipped with foldable jump seats. But Dubai’s RTA now stipulates that jump seats are no longer allowed on school buses due to safety concerns, further diminishing seating capacity on the Japanese buses. Foton buses, however, come with 35 complete seats, including seats for a driver and a guide, bringing total capacity to 37. Furthermore, they are specifically manufactured for school transport purposes, as opposed to buses from other brands, which are modified in garages to fit RTA specifications for school buses, Alkilani says. TOURISM Another industry with immense potential for commercial vehicle manufacturers in the region is tourism, as various Gulf countries
“In the bus busIness, If you use a hIghfloor bus, the cost Is usually much more affordable compared to low-entry and low-floor. It's because the desIgn of the chassIs Is much sImpler” 18 TRUCK&FLEET ME SEPTEMBER 2015
MAN Truck & Bus looks back to 100 years of construction truck manufacturing. From the 1922 traction vehicle belonging to the Guttehoffnungshütte to the latest MAN TGS tipper truck we have evolved from 45hp to 540hp and from 4.5tonnes payload to 35tonnes. Driven to make efficiency ever more efficient and clients ever more satisfied, we’ve been thinking ahead of the curve for 100 years. It’s what we’ve always done, and what we’ll always do. www.man-middleeast.com
100 Years of Traction. Who else but MAN.
Cover STorY
look to ramp up offerings in the sector. Buses and coaches sold to the tourism sector are generally of the luxury variety, and come with a host of different features for passenger comfort and entertainment, Alkilani says. Foton buses and coaches supplied to the tourism sector are equipped with an on-board refrigerator, LCD TVs and electric chargers for mobile phones, laptops and cameras, for instance. Liberty Automobiles supplies Foton buses to different tour operators in the country, such as Arabian Incentives. Meanwhile, Higer’s H92K 53-seater, launched in the UAE market last year, has been faring well in the tourism segment, Joseph says. The 12m bus comes with two doors and is equipped with features such as on-board TVs, reclining seats, refrigerator and luggage compartment. “We have buses travelling from here to Salalah every day, a distance of around 1,350km,” Joseph says. He adds that the total industry volume annually in the UAE is 300350 vehicles in the luxury coach segment, of which Higer has a 25-30% market share, selling between 85 and 100 vehicles every year. Although Higer buses are more expensive than their other Chinese counterparts, they are more reliable due to the extensive use of European parts, he adds. The H92K is equipped with a 340hp Cummins Euro 3 engine, a Sachs Diaphragm spring clutch and ZF gearbox, and power steering. Volvo Buses is also active in the tourism sector, and the manufacturer recently delivered 25 double-decker opentop buses to the UAE, built by Spanish bodybuilder Unvi on a B7RLE chassis. “Unvi is a preferred bodybuilder for double-deckers open-top for Volvo worldwide, and therefore we send the naked chassis to Spain. They build the body in Spain in their own factory, and then we ship the complete vehicles to the final customer,” Hedouin says. The tourism industry holds promise for the Swedish automaker in the UAE and the wider region in the near future, he notes. “The tourism segment is expanding. Of course, it has its ups and downs, but there is potential for this industry to grow in the Middle East. “More and more people are coming to the UAE on vacation, so tourism will definitely increase. And tourism means people will need to move from hotels to attractions, so that’s why the coach segment is also a segment where we see more and more interest.”
20 TRUCK&FLEET ME SEPTEMBER 2015
chinese brands like Foton are increasingly seeing opportunities in the school bus sector.
Higer buses have been faring well in the uAe's rapidly growing tourism industry.
hybrId buses: the way forward for the gcc? In July, Volvo Buses announced
naturally not been a popular
if you have a lot of stop-and-go,
that it was “actively looking at
option in an oil-rich region like
such as in city applications,”
opportunities” to bring its energy-
the Gcc, Hedouin notes.
Hedouin points out.
saving electric buses to the
“In the Gcc countries, due
“So, if you need high-
Middle east. The manufacturer
to the cost of oil, we're still not
performing air conditioning, the
had recently introduced
there yet. However, there are a
demand on electricity to supply
its concept electric bus in
couple of cities and countries
this air conditioning unit will be
Gothenburg, and is currently
that are extremely interested in
extremely high. Therefore, the
gearing up for production of
such products, because there
performance of your vehicle
all-electric vehicles in 2017.
is a big change in mindset,
in terms of fuel efficiency will
Volvo Buses already has a
leaning towards less pollution.”
decrease significantly.”
range of electrified buses, such
Although hybrid buses are
To counter this, Volvo
as the Volvo 7900 Hybrid – with
certainly a cleaner alternative
Buses is looking at how to
over 2000 units sold – and the
to conventional buses, the high
strike a balance between fuel
Volvo 7900 electric Hybrid. As
temperatures in the Middle
efficiency and air conditioning
Gcc countries make conscious
east region present their own
performance. However,
efforts to promote sustainability,
set of challenges.
Hedouin notes that Volvo
it’s worth examining whether
“Temperatures are usually
hybrid buses have been
more eco-friendly public transport
above 45 degrees in all Gulf
running without issues in
options are viable in the region.
countries and it’s a trade-off when
Spain, where temperatures can
it comes to fuel consumption.
reach 35 degrees celsius in
been successful in Western
While hybrid buses have
Air conditioning in the Gcc
summer. “I'm sure the Middle
countries on account of the
accounts for more than 50% of
east will also soon see such
high fuel costs there, they have
the fuel consumption, especially
products in operation.”
Featured FEaTUREd vehicle vEhiCLE
Riding high on the hilux Truck & FleeT Me attends the Uae laUnch of the all-new 2016 toyota hilUx by al-fUttaim motors
A
t the Madinat Arena in Dubai’s Madinat Jumeirah hotel, you would be forgiven for thinking you had accidentally wandered into a construction site. Scaffolding has been erected on the stage, shipping containers are positioned at the sides of the vast room, and mannequins dressed as construction workers – complete with safety vests and hard hats – stand around. The elaborate setup is for the launch
22 TRUCK&FLEET ME SEPTEMBER 2015
of the 2016 version of Toyota’s everpopular pickup, the Hilux, by the Japanese brand’s UAE dealer, Al-Futtaim Motors. First introduced in Japan in 1968, the Hilux – its name a contraction of ‘high’ and ‘luxury’– is one of Toyota’s most popular commercialvehicles, renowned for toughness and durability worldwide and in the GCC. “The first Hilux was brought to the UAE forty years ago, and since then it has sold more than 150,000 units to date, becoming one of the most relied-upon commercial vehicles in the
country and a major staple in construction firms, farms, oil fields and more,” says Jon Williams, managing director of Al-Futtaim Motors, at the launch event held on August 19, 2015. When it’s time for the great reveal, the lights are dimmed and the music is turned up. The pickup makes a dramatic entrance, roaring across the stage as it comfortably manoeuvres around obstacles in its path. The launch certainly illustrates the sturdy nature of Toyota’s beloved workhorse in its all-new avatar, boasting improved ride
Featured vEhiCLE vehicle FEaTUREd
The new Hilux pickup is offered in single- and double-cab variants.
Toyota Hilux was The launch event for the 2016 resort in Dubai. irah Jume inat Mad the at held
comfort and easier driveability. This is thanks to a newly developed frame and redesigned suspension, with longer leaf springs and forward- and rear-facing shock absorbers. Offered in single- and double-cab variants, the new Hilux comes in 2.0L and 2.7L petrol engines or a 2.4L diesel engine, and in 4x4 or 4x2 configurations. The pickup is now available with a six-speed automatic transmission, which according to the manufacturer translates into fuel savings of up to 15% over the prevous Hilux, depending on the choice of petrol or diesel engine. The 2.4L diesel engine is also available with a six-speed manual transmission, delivering a torque of 40.7kg-m (399Nm) at 1600-2000rpm and power of 147hp at 3600rpm.
To further boost fuel economy, the Hilux features a switch that allows the driver to select a preferred drive mode, Eco for optimum economy and Power for enhanced acceleration. Eco Mode reduces power consumption of acceleration, heating and cooling, while Power Mode provides sharper acceleration response, ensuring a more agile drive on slopes and winding roads. The deck has been reimagined, with structure panels that have been strengthened with reinforcement underneath. The deck floor ribs have been redesigned to better resist deformation during loading and unloading of heavy payloads. Staggered tie-downs and thickened load secure points make the Hilux well suited to a wide range of transport needs.
“What We’re seeing is a groWing demand from retail customers but also from sme customers, Who Want to use the vehicle for Work and leisure”
Driver comfort has also been upgraded with more ergonomically designed seats that have a new frame structure and increased bolsters. In the double-cab version, body support and legroom have been increased on the rear seats to make the ride easier for second-row passengers. The steering wheel features audio switches, while the shift lever has a shorter height and throw, similar to passenger vehicles, allowing the driver to operate the pickup in a more relaxed manner. Safety features include ABS and SRS airbags for the driver and front passenger, a knee airbag for the driver, Electronic Brakeforce Distribution and Brake Assist systems. The use of high-tensile strength steel sheets and supplementary materials throughout the body structure helps reduce passenger injuries, while impact-absorbing structures for parts such as the engine hood, front fender and cowl decrease impact force to the head and legs of pedestrians during a collision. Although the vehicle is currently only available to commercial customers, Al-Futtaim sees an opportunity to expand its scope and make it available to retail customers as well, going forward. “We’re looking at what we can do with Dubai’s RTA and the other registration departments across the Emirates. It's clearly on our agenda, and an even bigger opportunity moving forward for the vehicle,” says Williams, who tells Truck & Fleet ME that there is increasing demand from customers keen on using the Hilux for more than just commercial purposes. “What we’re seeing is there is a growing demand from retail customers but also from SME customers, who want to use the vehicle for work and leisure. "We’re seeing more and more people getting into interactive sports, and cycling is on the increase. People want to have a vehicle which can move their stuff around, but also feels more like an SUV and drives more like an SUV. I would say it’s a global trend. Customers have told us that’s what they want.”
SEPTEMBER 2015 TRUCK&FLEET ME 23
COMMENT
uae fleet owners need to be more proactive about road safety While the government is Working to improve safety standards among truck drivers, the industry as a Whole needs to do more Thomas Edelmann, founder of RoadSafetyUAE
R
eflecting on media reports and personal daily observations, it’s easy to see tremendous potential for improved standards in truck safety in the UAE with regard to three key elements: vehicle maintenance, vehicle operation and driver operation. There are manifold examples of violations. One only needs to look at the omnipresent debris of burst truck tyres on UAE roads, improperly loaded vehicles and common misbehaviours among truck drivers, such as speeding, dangerous driving on curves, a lack of respect towards other motorists and so on. The problem is big, and the landscape is diverse. The big professional fleet operators typically handle well-equipped and properly maintained vehicles, have policies and procedures in place and contribute actively to road safety. Still, there is the need for ongoing policy reviews, driver training and more. On the other hand, with owner operators and subcontractors, the situation is less rosy. A lot needs to be done to improve standards in literally all dimensions of road safety for this segment. We believe a multi-stakeholder approach is required to rectify current shortcomings. Ultimately, we need to create awareness about the key ingredients of road safety.
Stakeholders like government entities and the police, big logistics hot-spots like DP World and other free zones, entities like the Dubai Chamber of Commerce and the vehicle industry – all need to join forces in educating this segment, which is very often the individual owner operator. There are noteworthy programmes already in place, like the ever-improving truck standards of RTA, the Dubai Chamber of Commerce’s ongoing road safety campaign inaugurated in 2014, and commercial vehicle manufacturers like MAN that conduct workshops. The UAE government elevated road safety to a national key priority subject in their UAE Vision 2021, and acknowledges that it takes the efforts of all stakeholders to reach the ambitious targets. While steps are being taken to address the policy aspect of road safety, the call to action for fleet owners and operators is to reflect on the areas for improvement in their fields and take a proactive approach in addressing road safety opportunities with the concerned stakeholders in their organisations, by focusing on the other key elements of truck safety: driver safety and vehicle safety. Thomas Edelmann is the founder of RoadSafetyUAE, an online platform aiming to raise awareness of road safety across the Emirates.
“A multi-stAkeholder ApproAch is necessAry to rectify current shortcomings. ultimAtely, we need to creAte AwAreness About roAd sAfety” 24 TRUCK&FLEET ME SEPTEMBER 2015
new vehicles
HyUndai LaUnCHEs nEw TUCson
60,000
Units sold in the Middle East last year Hyundai Motor Company announced the launch of the new Tucson in the Middle East and Africa last month. Now in its third generation, the Tucson SUV has proved popular with customers in the region in the past. Last year, it was
the third best-selling model in the Middle East, with total sales of over 60,000 units. “The all-new Tucson is an extremely important car for Hyundai in the Africa and Middle East region,” said Jin Kim, vice president and head of Hyundai Africa and Middle East.
“We are confident that this new model will build on the success of its predecessor when it hits showrooms in the second half of this year.” The new Tucson offers technological convenience in the form of a smart tailgate that opens at the approach of the key-holder, keyless entry and engine start, an electric parking brake and automatic cruise control. In terms of safety, the model is equipped with features such as blind spot detection and front and rear parking assist system. The chassis on the Tucson has been developed to ensure enhanced highspeed and cornering stability. Moreover, aerodynamics and structural rigidity are combined with an improved front and rear suspension and the integration of enhanced noise reduction techniques in the vehicle. Depending on the market, the Tucson will be available with a choice of 1.6 T-GDi, 2.4 GDi and 2.0 MPI petrol engines, and 2.0 VGT diesel engine. All units are mated to six-speed gearboxes, with a seven-speed DCT transmission also available for the 1.6 T-GDi.
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PEUgEoT PaRTnER REvEaLEd in BaHRain Zayani Motors, the dealer for Peugeot in Bahrain, has introduced the all-new enhanced Peugeot Partner in the Kingdom. Tailored towards commercial users, the Peugeot Partner is a purpose-built van featuring sliding doors on both sides and ‘barn doors’ at the back. Six VTi petrol and BlueHDi Diesel engines are available at launch for the new Partner, delivering 75-120hp. According to Peugeot, fuel consumption and CO2 emissions on the new engines are 15% lower on average than the engines replaced. Standard safety features include ABS, ESP and Brake Assist, with a driver-side airbag as well as an optional passenger-side airbag. In addition, cruise control and a speed limiter are included as standard on trim level 2, and rear parking sensors are standard on trim level 3. Front parking sensors and a reversing camera are also available as options on trim level 3. Meanwhile, the van’s interior can hold up to 4.1m3 of cargo, with a payload capacity of up
26 TRUCK&FLEET ME SEPTEMBER 2015
to 750kg. Cargo on the vehicle can be accessed through the rear door or the sliding side panels. Connectivity also gets a boost on the Partner, which offers a new telematics system with an integrated 7” colour touch screen, available as standard on trim level 3 and an option on trim level 2. Peugeot also offers the Peugeot Connect
4.1m3
Cargo space available
Fleet Management solution to fleet managers, to increase productivity and cut running costs. “Used across several small and medium business across Bahrain, we’re certain that the new Partner will offer benefits and uses like never before,” said Mohammed Zaki, general manager at Zayani Motors.
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You will be required to have previous experience on Construction Supervision of Commercial Building Projects with at least 5 years’ experience in the UAE and a formal university qualification or diploma, as well as, having the ability to work full time from Abu Dhabi.
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You will be responsible for representing the company on site and liaising with client, subcontractors and local government officials, executing the project in line with the delivery schedule, contract specifications and conditions, developing project organization chart and mobilization schedule based on standard models, using standard job descriptions and titles.
You will be responsible for supplier sourcing for repair and manufacturing of oil filed components, forecasting, tracking, analyzing and reporting purchase savings, leading supplier negotiation on pricing, payment terms, delivery terms, quality targets, consignment stocking policies (defining, tracking and reporting progress on projects), as well as, improving supplier delivery performance.
You will be responsible for identifying all major pipe manufacturers/ traders/ installers in the region, establishing a relationship for all their polymer accessory needs (end caps, thread protectors, spacers, storage racks, seals), as well as, actively searching for new opportunities within the segment that can be manufactured and supplied by supping composite plastics.
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WORKSHOP
WORKSHOP Maintaining yOuR fleet’S efficiency
Kuwait to ease flow of Jordanian goods to iraq
Kuwait is willing to ease the transit of Jordanian exports through its borders.
Kuwait has announced that the country is willing to ease the entry of Jordanian goods and trucks into Iraq, according to media reports. Kuwaiti Emir Sheikh Sabah Al Ahmad Al Sabah said that the country would make the necessary arrangements to facilitate the transit
13%
Growth rate of Qatar commercial vehicles market between 2015-20. 28 TRUCK&FLEET ME SEPTEMBER 2015
of Jordanian exports through Kuwait, Jordan Times reported. Salameh Hammad, Jordan’s Interior Minister, thanked Kuwaiti leaders for their “understanding of the difficult circumstances the Kingdom is going through, especially after
the closure of its borders with Syria and Iraq” due to security concerns. On July 16, Iraq announced that it would be closing its main border crossing with Jordan until further notice. Meanwhile, the Kuwait Chamber of Commerce and Industry has also indicated its willingness to facilitate the flow of Jordanian exports to Iraq – a major market for Jordanian products – via the GCC nation. Ali Al Ghanem, head of the Chamber, said the body has contacted Kuwait’s interior ministry and customs department to issue visas for Jordanian truck drivers and escort trucks to the Safwan border crossing with Iraq. Jordanian exports have suffered from the closing of Iraq’s border with the Kingdom, leading to massive losses for traders and exporters, said Issa Murad, president of the Amman Chamber of Commerce (ACC). The ACC has also contacted the Council for Saudi Chambers of Commerce and Industry to help facilitate the movement of goods to Iraq via Saudi Arabia, which Jordanian trucks have to cross to get to Kuwait, before entering Iraq.
UAQ issUEs TRUCK pARKing gUidELinEs Umm Al Quwain has issued a new directive regarding the parking of trucks in the emirate, WAM reported. The decision allocates a parking lot to be set up by the Department of Public Works and Services, in
order to accommodate trucks. The government has banned the parking of trucks without traffic plate numbers in parking lots, or in a manner hampering the utilisation of parking spaces.
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SHaRjaH actS againSt tRucK viOlatiOnS
Traffic flow has become smoother after radars were deployed.
Sharjah Police is implementing a new radar system to prevent trucks from using roads during
restricted hours without prior permission. The project has been in the works since 2013, said Captain Jamal Obaid Buaafra, director of the Roads Control Section, quoted in the National. In the first phase, radars were deployed around nine locations, including Mohammed bin Zayed Road and Maliha Road. In the second phase, seven additional radars were installed, bringing the total number to 16. Since the radars were deployed, traffic flow has become smoother, Buaafra said. Trucks have started abiding by the timing ban at a rate of 90%.
QuicK tiPS Save fuel by making some easy changes. 1. Use your air conditioning while driving. There’s a common misconception that driving with windows open uses less fuel than driving while using air conditioning. Driving with windows open at freeway speeds actually creates drag and uses more fuel than driving with windows closed and the A/C running. 2. Inflate tyres to recommended levels. Properly inflated tyres reduce the demand on the engine and therefore the need for fuel.
sAUdi dEALER AppOinTEd FOR sUMO FiREnzA TyREs
3. Don’t speed. The faster you drive, the higher the demand for fuel. On the highway, use cruise control to avoid
Al Habtoor Motors, the GCC distributor for Singapore’s Sumo Firenza Tyres, has appointed Mohammed Omer Kabli Trading Establishment (MOK) as the first dealer for the tyre brand in Saudi Arabia. The official signing took place at this year’s Automechanika Dubai. The Sumo Firenza product range includes passenger vehicle, SUV, light commercial and HGV tyres.
unnecessary braking or accelerating. 4. Don’t carry unnecessary items in your vehicle. The lighter your vehicle, the better the fuel efficiency. 5. Consider trading in gas-guzzling vehicles. High-tech engines today offer better performance and power than many larger engines, while also delivering better fuel efficiency and lower emissions. Courtesy: Ford Middle East and Africa
OMan lOOkS TO cuRB fuEl SMuGGlinG Omani lawmakers have called for stricter penalties to stop diesel and petrol smuggling through land and sea borders, which could increase after UAE’s subsidy cuts. Authorities in Oman have foiled over 20 attempts to transport petrol and diesel through border posts to neighbouring countries recently, Gulf News reported. Petrol and diesel smuggling could increase going forward, given that the UAE has raised petrol prices, said Humaid Al Nasri, a member of the elected Shura Council, quoted in Gulf News. “Petrol and diesel smugglers, particularly trailer drivers, will make a huge
Omani lawmakers fear that petrol and diesel smuggling could increase going forwards.
profit from smuggling petrol on a daily basis.” Such activity costs Oman millions of
riyals every year due to increasing demand for Omani fuel in neighbouring markets, said Salim Al Rashdi, another Shura member. To cut down on smuggling, some observers have called for petrol stations operating near the Oman-UAE border to be strictly regulated. Ahmad Al Musalmi, an economic expert, said that heavy trucks and trailers should be monitored and limits set on the amount of fuel sold to them. In July, the UAE announced it would be axing fuel subsidies effective August 1. Fuel prices for each month will be announced on the 28th of the preceding month.
“PetROl and dieSel SMuggleRS, PaRticulaRly tRaileR dRiveRS, Will MaKe a Huge PROfit fROM SMuggling PetROl On a daily baSiS” Humaid Al Nasri, member of the elected Shura council in Oman SEPTEMBER 2015 TRUCK&FLEET ME 31
PARTING SHOT
Loading smart SebaStian Stefan, CeO Of LOadMe.ae, expLainS the COnCept behind the OnLine freight exChange prOgraMMe, and hOw it Can benefit tranSpOrterS in the regiOn
F
or most transporters in the GCC, delivering cargo by road usually amounts to loading a truck and dispatching it to the desired destination, with the vehicle dropping off its cargo and driving back empty. The latter leg of the journey was a gap in the market that Romanian national Sebastian Stefan decided to tackle with the launch of the website LoadMe.ae, a freight exchange platform enabling transporters to find loads for trucks returning empty from their destination. The idea for the platform came from his background in logistics, Stefan tells Truck & Fleet ME. The concept, well established in Europe, is new to the Middle East. Explaining how it works, he says that even if transporters offer a reduced rate to carry a load back from their destination, they can still make a profit. “But the challenge is to find the right load owner at that specific moment. And the
32 TRUCK&FLEET ME SEPTEMBER 2015
solution to it is to have the load owners in one pool, connected with a large number of truck owners.” Describing LoadMe.ae as kind of an Uber service for the transportation industry, Stefan explains that it was founded with an investment from Dubai-based port operator DP World through Turn8, a seed accelerator programme designed to encourage entrepreneurship. Target customers for the site are transporters and load owners – factories, logistics managers or freight forwarders, for example – all over the Middle East, says Stefan, company CEO. “The business model is that we’re going to have monthly subscription.” He notes that this will be introduced later, as the website, launched in January this year, is still finding its feet. “Today, we have 860 users. Out of these, there are about 220 transporters, and they have a cumulative fleet of over 2,000 trucks at the moment.”
Looking ahead, Stefan plans to introduce the service in more languages, including Arabic and Urdu. He is also in talks with telematics providers to integrate their services with the platform, allowing a transporter to open the website on a phone and look for trucks nearby. “If you have the app, you can see the trucks that are in the area, and you can contact the sales in charge from that company. You can then book the same truck and carry out a shipment within hours, on demand.” Meetings with telematics companies have proved positive thus far, and a few major players have agreed to share information with the platform, he notes. “We’re adding a new value to their products. GPS tracking units are currently used just for cost control and operational purposes, but this will bring sales too. Customers can track their shipments, so it is also safer.”
Apollo Tyres Middle East FZE T : + 971 4884 1603 www.apollotyres.com
Middle East Tyres LLC
T : + 971 4255 7172