Truck&Fleet ME August 2018

VEHICLES/ TECH / TranSporTaTIon/LogISTICS

O55/AUGUST 2O18

MIDDLE EAST

PU BLI CATI O N LI CENSED BY D U BAI PRO D U CTI O N CIT Y

n O S E y E l l A

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contents

contents COVER STORY

14 / HOw VOlVO iS EVOlVinG

The updated VDS typifies Volvo’s integrated approach to its tech.

also this issue … nETwORK

05 / nEwS fROm THE mOnTH

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DHL Express goes all on electric as its first e-Golfs are delivered. inTERViEw

12 / REnAUlT in THE Z.On.E Master ZE leads Renault’s electric vehicle charge in the market. inTERViEw

22 / A nEw ERA How Careem is playing a central part in a rapidlychanging Saudi Arabia. fEATURE

26 / PORT-OmATiOn Experts discuss the challenges of automating the logistics process at Ports. wORKSHOP

30 / mARK YOUR diARiES Continental sets a date for its digital tyres in the region; plus Dalby looks for a partner.

AnAlYSiS

32 / flEETS fACinG fAilURE Strategy& on why fleets that fail to face the future are set to fail.

AnAlYSiS

36 / fOSSil-fREE fUTURE New Scania-led research plots out how the transport industry will evolve.

AUGUST 2018 TRUCK&FLEET ME 01

WELCOME

GROUP MANAGING DIRECTOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5483 EDITORIAL DIRECTOR VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5472 EDITORIAL EDITOR StEpHEN wHItE stephen.white@cpitrademedia.com +44 7541 244 377

To lease or loan an eV fleeT? Another month and another electric vehicle gets its launch in the UAE with the introduction of Chevrolet’s Bolt EV. Like others such as the Nissan Leaf, the Bolt EV is a compact mover, and for all its promise of a range of 500km with no compromise on comfort or performance, it is unlikely to be picked up as a serious addition to fleets simply because of its size. Nevertheless, there are plenty of initiatives such as Careem’s new turquoise Tesla S fleet, Aramex’ partial electrification, Dubai’s commitment to reaching 50% electrification of its fleet by 2021 and the qualified success of hybrids in the market that suggest that this is more than a passing fad. Even for a low tax, and low fuel cost environment, the ability to access free charging and the incentives out there to encourage adoption are compelling arguments for opting to electrify – although I would argue there are harder and faster ways to reduce your carbon footprint. Recent weeks have seen easier financing launched from both the National Bank of Fujairah (green loans worth up to 1 million dirhams) and Emirates Islamic, (its Green Auto Finance offers an even better 1.5 million) dirhams. Like others from Emirates NBD and HSBC, these come loaded with favourable rates of around 2%, more than half the interest rates of other loans.

As ever, there’s value for fleets that are able to purchase in numbers and it may be tempting to jump in – should you find the vehicle for you. But then, fleets are prone to being sensibly incautious. This is still new technology and the short-term benefits are not widely understood for those who can’t use it as a promotional tool (like the ride-hailers) or have the economies of scale and backing of say, a Dubai Taxi, for instance. Given the rate of launches and the rate of development of technology, it is also difficult to predict how much your investment may be worth when it comes to trading in later on down the line.

When asked about the EV market, Bill Carter, chief systems and innovation officer for Autodata told The National that while dealers are using their margin to subsidise EV deals and get financial support from car makers to try and stimulate sales, “Those unsure about the technology and residual value should consider a lease rather than buying to mitigate the risk. In the UK, where ‘green’ cars have been around much longer, we are seeing used electric cars rising in value. This may happen in the longer term in the UAE.” To lease or loan then? Well, I suspect that, maybe, it might be better to simply wait and see.

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$1bN WARNER bROS. WORLd AbU dHAbI INdOOR THEME PARk INAUgURATEd

Emaar to sell hotels, clinics and schools as it looks to raise $1.4bn in funds

While the rest of the world sees Dubai as the main tourist destination in the UAE, I am always stressing to my friends that live outside the country that there is so much to do if you are willing to go further than that city’s

CONSTRUCTION

beaches and malls. It amazes

ANCG $204m contract wins include ‘leading’ airline HQ

me that some residents have rarely ventured out into the desert or mountains. I would also argue that Abu

Video: Shaping the Future of Construction

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Dhabi has its own charms and over the past few years it has opened theme parks and museums that

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match anything that Dubai

Emaar to develop Middle East’s largest Chinatown

offers. More of this please!

Proud AD resident WHY RESIdENCY LAW CHANgES ARE A POSITIVE FOR dEVELOPERS

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We got onto the property

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ladder several years ago and

DEWA starts testing new turbines at M-Station expansion project

although we had to jump through some hoops at the time, it has been worth every dirham! I also run an international company based in JAFZA and this will make it easier to attract new talent and importantly we’ll have less turnover

PROPERTY

BinGhatti says UAE-China talks will boost FDI in UAE 04 TRUCK&FLEET ME AUGUST 2018

Feature: Ready for new challenges – Hamish Tyrwhitt interview

and hold onto our talent.

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PERFECT CROSSING

Discover the IVECO world and all its news on: www.iveco.com, Middle East area.

Or call now the IVECO Representative Office: 00971 4 2994935

BEST PAYLOAD IN THE INDUSTRY Payload up to 20 ton on a 6x4 chassis with Large “C” section chassis

CONTINUOUS OPERATION Higher autonomy thanks to the Cursor engine that allow to reduce fuel consumption

ON-ROAD EXCELLENCE. OFF-ROAD ENDURANCE.

OUTSTANDING TCO Thanks to 11.2% fuel saving tested by TÜV on the New Stralis, optimised driveline and disk brakes

MODULAR AND MISSION-ORIENTED RANGE New front axle (off road) that guarantee an higher ground clereance Robust chassis for light off-road missions

NETWORK

E-GOLF ARRIVES IN THE REGION THROUGH DHL EXPRESS / ET AND ORACLE CEmENT SALES SLUmP IN KSA / AGILITy LOOKS TO SUEz / RTA GUIDELINES

network Al Nabooda delivers first e-Golfs to DHL Express DEAL mARKS THE FIRST TImE THE EV HAS bEEN INTRODUCED TO THE REGION ELECTRIC VEHICLES DHL Express has partnered with Al Nabooda Automobiles to introduce for the first time in the region the all-electric Volkswagen e-Golf for deliveries and collections, the companies have revealed.

The fully customised 134hp electric-Golf car will initially be used for documents’ delivery and collection specifically throughout areas with a reputation of high volume traffic, such as

Dubai International Financial Centre and Downtown Dubai, followed by gradual expansion to remaining UAE regions in the near future.

Running entirely on electrical current with a 100 kW AC electric motor, re-chargeable on standard power supply, it is also the only, fully customised commercial vehicle in the UAE with a segregated cargo bay separated from the driver.

With its full adaptation to DHL’s duties, the e-Golf has

the capacity to complete a 250km journey operating on just a single charge aswell-as boasting advanced endurance capabilities when exposed to extreme, warm weather climates. The innovative vehicle also uses a regenerative braking system, allowing the conversion of stored kinetic energy to be used to recharge its batteries.

“DHL Express is paving the way towards a green future with the aim of bringing our logistic-related emissions

to zero by 2050,” said Geoff Walsh, UAE country manager, DHL Express. “The introduction of e-Golf is an important step towards implementing our vision to protect the environment, and inspire the entire logistics industry in reducing the impact of day-to-day operations. We are confident that this new and advanced method of delivery will contribute significantly to a more sustainable way of operating in the region.”

mIDDLE EAST ONE OF THE PRImE TARGETS FOR EICHER AS IT AImS FOR ImPRESSIVE 50% SALES GROWTH IN COmmERCIAL VEHICLES IN 2018

06 TRUCK&FLEET ME AUGUST 2018

NETWORK

DP WORLD TO OPEN LOGISTICS FACILITy IN ETHIOPIA

ET CHOOSES ORACLE CLOUD TO DRIVE DIGITAL TRANSFORmATION FLEET

Emirates Transport, one of the largest transportation and logistics services companies in the Middle East, is implementing Oracle Cloud Applications to drive a major digital transformation across all its core business operations.

In a statement the company said that the initiative will help Emirates Transport introduce innovative offerings that create new revenue streams, deliver exceptional customer service and drive operational efficiency.

“The UAE’s transportation sector is experiencing sustained growth on the back of promising economic activities across infrastructure development, government investment and private sector expansion”, said Faryal Tawakul, executive director of Support Services at Emirates Transport.

“These changes have created significant growth opportunities for Emirates Transport and by using the latest cloud technologies to drive expansion and offer unmatched services to our customers; we will be able to establish a huge competitive advantage.”

“We selected Oracle to support our transformation into a service focused company and to help establish Emirates Transport as the preferred transportation and logistics partner for the UAE’s public and private sector. This is our first step towards implementing a more elaborate digital transformation roadmap which in due course will also explore the implementation of next gen technologies like Artificial Intelligence and Internet of Things (IoT) to help us drive long term growth”, added Tawakul.

With Oracle Cloud Applications, the Emirates Transport leadership team will be able to take advantage of a complete and fully integrated suite of applications to increase business agility and reduce costs. The new cloud applications will provide Emirates Transport with full financial control, simplifying procurement processes and allowing the management to make data driven investment and business decisions. The Emirates Transport management team will also be able to run simulations for new services and programs to ensure an exceptional customer experience and high employee engagement.

LOGISTICS Sultan bin Sulayem, DP World Group Chairman & CEO and Chairman of Ports, Customs and Free Zone Corporation has revealed that DP World is planning to set up a logistics facility in Ethiopia to facilitate transport of goods to landlocked countries in Africa.

“We are planning to set up a logistics complex in Ethiopia where goods can be transported from

the port to it, and from there it can be transported to different African landlocked countries,” he said.

“We have signed a number of agreements with Ethiopia that will promote our friendly relationships with them. Business groups in Dubai can always benefit from DP World’s presence in different countries including Rwanda and Egypt where re-exporting opportunities are abundant,” bin Sulayem remarked.

RTA ISSUES NEW mANUAL DETAILING RIGHT-OF-WAy AND NOCS ROADS The Roads and Transport Authority (RTA) in Dubai has issued a new Right-of-Way Utilities Distribution Manual “with the aim of streamlining the distribution of infrastructural utilities on the right-of-way.”

In a release published on official UAE news site WAM, the RTA said the Manual is consistent with the world’s top practices as well as the Strategic Plan of Dubai Government 2021.

“The Manual focuses on the optimal distribution of infrastructural utilities on

the right-of-way in line with the needs of mobility and service requirements in Dubai. It sets the Manuallines for undertaking infrastructural works on the right-of-way, and the stipulations of various phases of No Objection Certificates for projects,” said Maitha bin Adai, CEO of Traffic and Roads Agency. “The Manual has been prepared in coordination with other service entities and providers in Dubai with the aim of delivering quality services matching to the highest standards worldwide.”

AUGUST 2018 TRUCK&FLEET ME 07

NETWORK

KSA CEmENT SECTOR TO SEE A FALL IN REVENUE

INDUSTRy RESTRUCTURES A Q2 sales slump is being blamed on the restructuring of industry in the KSA.

mATERIALS

Saudi Arabia’s cement sector is expected to witness a fall in revenue in the second quarter of 2018, according to a report released by Al Rajhi Capital, a leading financial services provider in the Kingdom.

According to Al Rajhi’s Q2 2018 earnings estimates

report, the companies under Al Rajhi’s coverage are expected to report a ~6% year-on-year decline in revenue, while earnings are likely to fall by ~10% year-on-year.

The cement’s sector sales volume declined by 16.7% y-o-y in the first two months of Q2, which was put down to the restructuring of the industry, and the seasonality effect (summer, Ramadan and Eid), added the report.

On a quarterly basis, sale volumes are expected to be lower than the previous quarter due to the seasonality effect, the report said.

“In the first two months of Q2 2018, 15 cement companies have reported a y-o-y decline in sales volume, led by Riyadh Cement (-44.1% y-o-y) and Cement City (-37.5%), while only two companies have reported an increase viz Tabuk Cement (+82.4% y-o-y) and Hail Cement (+28.7%),” it outlined.

However, the total inventory for the sector has increased slightly by 1.2% q-o-q (~36.2 million tons by the end of May) due to an increase in production and declining sales.

AGILITy TO OPEN LOGISTICS CENTRE IN SUEz LOGISTICS Logistics giant Agility is to develop a logistics hub in East Port Said located close to the Suez Canal’s Mediterranean entrance.

The company said the new centre will apply “with international standard logistics infrastructure to enhance the importing and warehousing of raw materials,” as well as the export and distribution of intermediate and final goods through the Suez Canal Ports.

The company promised Egyptian shippers and freight companies that it will provide “world-class solutions for Egyptian customs, including the modernisation and automation of the customs processes.”

In a statement, Agility added that this will improve the speed at which commodities are moved and strengthen the supply chain in a fast and secure manner: “These improvements, in turn, will help decrease supply chain costs

for the industrial operations across the various areas of the economic zone.”

“Egypt’s prominent location allows access to strong regional markets and trade routes, making it an ideal site for a regional distribution hub. Given global demand for access in the continent, Agility has continuously invested in Africa,” said Tarek Sultan, CEO, Agility.

“Wworking in the East Port Said area will give companies access to world-class infrastructure.”

Dubai expanDs parking for ‘green’ vehicles ECO VEHICLES

Dubai’s Roads and Transport Authority (RTA) has finished work on 70 free parking spaces for environmentally-friendly vehicles.

The spaces are spread across 40 paid parking zones across the city, under its ‘Dubai Green Mobility’ initiative.

The move is part of phase one of a larger scheme to offer free parking exclusively to ecofriendly vehicles in the city.

Maitha bin Adai, chief executive of the RTA’s Traffic and Roads Agency said, “The RTA is keen on spreading this initiative to high-density traffic areas and streets across Dubai with the aim of covering most paid parking zones in vital areas. Locations include the Central Business Districts, Trade Centre area, Burj Khalifa, Dubai Marina, Jumeirah Street and Sheikh Zayed Road.”

Earlier, authorities announced several incentives for electric car owners, including exemption from RTA registration and renewal fees, free Salik tag and free charging at 100 stations across Dubai.

“The parking spaces are marked by green-painted frames with signs showing the maximum allowable use time, and the fine applicable on parking violations. Only eco-friendly vehicles are allowed to access these parking slots, and for a time limit of four hours, which will increase the rotation of using each parking,” she added.

The RTA first introduced its plans for eco-friendly vehicle parking in 2017.

INSIDE THIS ISSUE: CAREEm FOUNDER ON ITS KSA SUCCESS, VOLVO TRUCKS’ INTEGRATED TECH APPROACH, THE FUTURE OF T&L

08 TRUCK&FLEET ME AUGUST 2018

NETWORK

bIODIESEL SAVES mCDONALD’S UAE 8,563T OF CO2 FLEET McDonald’s UAE has revealed that its logistics fleet of biodiesel delivery trucks have clocked 10 million km since the launch of its cleaner fuel initiative seven years ago. The company added that it has saved 8,563 tonnes of CO2 in the process while contributing to improve air quality in the country.

Since July 2011, McDonald’s UAE’s logistics fleet has been running on fuel made from used vegetable oil from their restaurants in the UAE. As reported in T&FME last year, the biodiesel is converted

by Dubai-based company ‘Neutral Fuels’, a UAE-backed venture that makes use of environment-friendly technology. The initiative is part of Dubai’s green schemes and is a team effort that also incorporates Dubai FDI, the foreign investment promotion arm of the Department of Economic Development.

“At McDonald’s UAE we strongly champion the cause of protecting the environment. This is evident with

our various campaigns and our long-running partnership with the Emirates Environment Group (EEG),” said Rafic Fakih, anaging director and partner at McDonald’s UAE He further added that the Biodiesel Initiative is an example of how McDonald’s UAE is helping improve communities by contributing to prevent the degradation of air quality in the country.

“Having covered 10,000,000 kilometers, our logistics fleet has saved as much as 100% of CO2 emissions, thereby helping improve the air we breathe.”

ALL mAjOR TUNNELLING WORKS ON ROUTE 2020 COmPLETED A mAjOR mILESTONE With the tunnelling now complete the project is on course for completion in 2019.

ROADS

Dubai’s RTA has completed all major tunnelling works related to the Route 2020 Project, stretching 3.2km at a depth ranging from 12 metres to 36 metres.

According to Mattar Al Tayer, chairman of the board of executive directors for the RTA, the tunnel drilling works commenced in October 2017, with the giant Tunnel Boring Machine (TBM), branded ‘Al Wugeisha Expo 2020’, starting off at Discovery Gardens and reaching the underground station

near Jumeirah Golf Estates in February.

“The drilling works then continued past the Dubai Investment Park, and up to the final point at the Green Community,” said Al Tayer, going on to explain that Al Wugesha can crush stones and penetrate through sandy layers or any other soil components encountered during the drilling process.

It has a huge metal gear supported by an automated tail and a cutting wheel with a cavity the shape of which varies according to the type of drilling and soil layers,” he outlined.

ADVERTORIAL

A NEW STANDARD IN TRUCKS

The UAE industry’s call for innovative transport solutions following the announcement of new ESMA and RTA regulations on emissions standards has been answered by Al-Futtaim’s Commercial Vehicles division with the launch of light, medium and heavy duty trucks built with Euro 4 engines from Hino.

Al-Futtaim offers customers a well-established network of facilities with 3S facilities in Dubai, Abu Dhabi and Sharjah, supported by its Mobile (Van) Services across the UAE to attend to minor repairs. The company’s growth has been based on offering comprehensive tailor-made solutions including genuine spare parts, service contracts, 24/7 service support and specialised technicians.

With changing regulations and increased environmental awareness in the UAE, it is now focussed on helping commercial fleets to be cleaner and more sustainable than ever before through the Hino range.

Hino trucks range from

3.5t-40t GVW, with different types of bodies suitable for any application. It has increased its market share from 9%-22% in the last three years by bringing superior models in its class and catering to various industries.

The new UAE rules stating that all 2018 trucks should have Euro 4 engines is an opportunity for Hino to be the first Japanese brand to bring vehicles that meet the new standards to the market.

“We are proud to be contributing to the UAE’s goal of creating a cleaner and greener future,” says General Manager – Commercial Vehicles Division, Mr Ramez Hamdan. “Hino trucks offer higher performance at greater cost efficiency and higher horsepower and torque at lower RPMs; meaning the efficiency of the engine is greater with the fuel consumed.”

For more information visit the HINO website: www.hino.ae or call the Contact Center: 800 4466 72537

AUGUST 2018 TRUCK&FLEET ME 09

NETWORK

WOmEN DRIVERS START WORK FOR CAREEm IN SAUDI RIDE HAILING

auDi MiDDle east appoints new branD Director APPOINTmENT

Audi Middle East has appointed Carsten Bender as the new brand director of Audi Middle East. Operating from the AVME regional office in Dubai, Carsten Bender will be responsible for driving the growth across 11 countries in the GCC and Levant for the Audi brand, said the company. Key to this will be a brief to focus on enhancing the customer experience through the long-term goals of digitalisation, sustainability and urbanisation throughout the dealer network.

“I am taking over the responsibility of Audi Middle East at a time of great change, both globally and regionally.

Audi has a strong portfolio of innovative new models to bring to the market over the next few years and I am looking forward to a period of growth and opportunity upon which we can further develop our business,” said Bender. “We have excellent business partners to work with in our region and I look forward to utilising my experience, in the Middle East, Europe and Asia Pacific, to continue to build our Brand image in the region and to enhance the customer experience.”

Carsten Bender’s move to the Audi Middle East organisation will see him operate from the regional headquarters of AVME FZE in Dubai Airport Free Zone. His role will be to lead a team of over 36 staff representing Audi, and to support growth of the Audi brand across 11 countries, 12 importers and 24 dealer facilities in the GCC and Levant.

10 TRUCK&FLEET ME AUGUST 2018

Careem has revealed its new fleet of female drivers following the lifting of their driving ban in Saudi Arabia.

Careem said the drivers – called Captainahs – have begun working this week “as part of the company’s ongoing mission to simplify and improve lies in the region”. The service has started in the three major cities of Saudi Arabia - Riyadh, Jeddah, and Dammam - in a first phase which is expected to be expanded to include all cities “within a short period.”

“We are delighted to welcome these pioneering women to Careem and in line with Careem’s commitment to create job opportunities across the wider Middle East region, 2018 will see a new focus begin on attracting women to sign up to the platform,” said Careem CEO Mudassir Sheikha, adding that Careem is creating between 60,000-to-70,000 jobs per month across all cities of operation, “We’ve set a longer-term target of having 20,000 females signed up regionwide by 2020.”

“Following the announcement in Saudi Arabia in September 2017 that women would soon be allowed to drive, we opened our door to female Captains (Captainahs) and invited them to come and sign

A WAKE-UP CALL Careem say the industy has largely ignored women and the potential they might have to earn an income: “It’s been a wake-up call and we are now investing”.

up to Careem and receive the initial training,” said Careem’s GM of Saudi Arabia, Abdulla Elyas. “We have been overwhelmed by the response, with some 2,000 women already having taken part in sessions from our operational, safety and technology teams.”

Abdulla added that driving for a ride-hailing company provides the chance for women drivers to be their own boss, earn an additional income and work their own hours, “so it’s particularly geared towards the needs of working mothers.”

UAE TO INVEST $23.1bN INTO ITS AIRPORTS LOGISTICS The UAE is to invest $23.16 billion into airport development and expansion that will see the country’s airports have a combined capacity to handle in excess of 300 million passengers per year, organisers of the Global Investment in Aviation Summit (GIAS) in Dubai said.

The UAE’s investment airport development includes $8 billion spent on Al Maktoum International Airport, $7.6

billion on the expansion of Phase IV of Dubai International Airport and $6.8 billion on the re-development and expansion of Abu Dhabi International Airport. Many of these investments have been supported by the country’s banks and financial institutions.

In addition, Sharjah International Airport is also undergoing a $408.3 million investment for the expansion of its terminal.

The UAE has 14 airports,

airstrips and airfields, served by 113 airlines, with total annual take-off and landings in excess of 540,000.

“The UAE is the largest airline market and aviation hub in the Middle East and North Africa and it is still the most vibrant market where the airlines are adding new aircraft every month to their fleet,” Suwaidi, Saif Mohammed Al Suwaidi, director-general of the UAE General Civil Aviation Authority (GCAA).

LAUNCHES

RENAULT TRUCkS UNvEILS ITS SECOND GENERATION OF ALL-ELECTRIC vEHICLES THAT HAS BEEN A DECADE IN THE MAkING

lau nches 12 HOURS CHARGING Using an 380V 32a soCKET

Renault Trucks unveils new all-electric trucks Z.E. MODEL vEHICLES START FROM 3.5T TO 26T WITH OP RANGES UP TO S300kM Renault Trucks has unveiled its second generation of all-electric vehicles with a complete range that comprises vehicles in the weight range of 3.5t to 26t.

The new range, which is a result of 10 years of experimentation under actual operating conditions with its customer-partners, is made up of the Renault Master Z.E., Renault Trucks D Z.E. and Renault Trucks D Wide Z.E. While the Master Z.E. will be available this year itself, the D Z.E. and D Wide Z.E. will be manufactured in the company’s plant at Blainvillesur-Orne in France and will arrive on the market in 2019.

12 TRUCK&FLEET ME AUGUST 2018

According to Renault Trucks, the new range covers the full gamut of urban uses from goods distribution and delivery to refuse collection.

The company believes electromobility is the obvious response to urban air quality and noise issues, as well as to cut overall CO2 emissions.

The Renault Trucks Master Z.E., which will be released in September 2018, is ideal for last-mile deliveries and provides access to inner-city areas with strict traffic restrictions, said the manufacturer, adding that the battery of this all-electric utility vehicle takes six hours to charge.

Its loading volume is the same as a conventional diesel Renault Master, as the batteries are mounted under the front seats. The Master Z.E. range comes in six variants (four panel vans and two platform cabs) designed to meet all the requirements of professionals working in urban environments.

The specially designed 16t version of the Renault Trucks D Z.E. is ideal for urban and controlled temperature deliveries. The Renault Trucks D Wide Z.E. will come in a 26t version for efficient refuse collection. The vehicles have an operating range

of up to 300km depending on usage and configuration of its lithium ion batteries.

The specially designed 16 t version of the Renault Trucks D Z.E. is ideal for urban and controlled temperature deliveries. The Renault Trucks D Wide Z.E. will come in a 26 t version for efficient refuse collection.

Both models will be manufactured at the Renault Trucks plant in Blainvillesur-Orne, Normandy, France in the second half of 2019.

A medium-duty Renault Trucks Z.E. vehicle has an operating range of up to 300 km depending on usage and battery configuration.

LAUNCHES

eV cornerstone RENAULT COMMITS TO ELECTRIC FUTURE Renault Trucks electric vehicles s range draws on the experience from ten years of testing electric trucks in real-life conditions with its customerpartners. These all-electric trucks are designed for use in urban and periurban areas and will be produced at the Renault Trucks plant at Blainvillesur-Orne in Normandy, France.

Electromobility is the cornerstone of Renault Trucks’ strategy for a sustainable urban transport. Zero-emission vehicles help improve air quality, curb climate change and also reduce congestion thanks to noise-free out-of-hours deliveries. Tomorrow, electric trucks will be simply indispensable for city centre access.

Renault Trucks has been investing heavily in electromobility research and development since 2009, focusing on extensive field testing in partnership with its customers.

Real-world tests on various types of experimental full-electric 12-16 tonne trucks – Speed Distribution for Guerlain, Stef for Carrefour, Nestlé and the Delanchy Group – have provided Renault Trucks with vital information on conditions of use, battery behaviour, recharging facilities and specific maintenance

requirements for electric trucks.

In addition to these experimental vehicles, a 4.5-tonne electric truck has been on the market since 2010, the Electric Maxity: “Our commercial experience with the Electric Maxity has enabled us to bring our network up to speed on selling, servicing and repairing electric vehicles,” explains François Savoye who is in charge of Renault Trucks’ energy efficiency strategy. “Today’s electric vehicles are a competitive solution, which was not the case in 2010.”

In addition to the great strides made in understanding customer uses and market requirements, Renault Trucks is able to take advantage of the impressive R&D resources offered by the Volvo Group, benefit from tried and tested technology and harness synergy between different entities working on all-electric vehicle development such as buses. Thanks to these economies of scale, Renault Trucks is now in a position to market a cost-effective range of vehicles for its customers in 2019.

A dedicated assembly line for all-electric trucks is being installed at Renault Trucks’ Blainvillesur-Orne plant in Normandy.

INNER CITy LIGHT released in september 2018, be will h whic Z.E., er Mast s The Renault Truck s. provides access to inner-city area is ideal for last-mile deliveries and

ADVERTORIAL

AL-FUTTAIM AND TMH LAUNCH NEW Z-SERIES FORKLIFT IN UAE

Al-Futtaim’s Commercial Vehicles division and Toyota Material Handling (TMH) is proud to announce the arrival of the Z Series forklift truck in the UAE. This ’Simple & Tough machine’ has exceptional features including a Toyota-built engine, the innovative Operator Presence Sensing System (OPS) and the Lattice Design Head Guard for outstanding upward visibility and strength whilst lifting loads.

According to the company, the Z Series’ purpose is to help small businesses acquire and own a forklift machine that is well-worth the initial investment.

The Z-Series joins Al-Futtaim’s huge range of Hand Pallet to VNA TMH solutions for indoor and out-door material handling; including electric/ diesel/gas powered machines; ranging from 1.5t-16t and up to 17.3m in height.

The new range is being introduced as part of a wider strategy to approach existing and new clients, small businesses especially, by providing a cost-

effective and high performance solution for their logistic and warehouse operations. The past year has seen the opening of the very first standalone and state-ofthe-art 3S TMH facility in Dubai.

“Our customers are the first to benefit from our highly trained service teams and marketleading after sales support and we are increasing our sales team to fully cover the UAE market with continuous sales and product training,” says General Manager – Commercial Vehicles Division, Mr Ramez Hamdan. “The combination of our understanding of what is driving our customers’ businesses with TMH’s cutting-edge technology ensures equipment owners in the transportation and logistics sectors have a reliable partner focussed on ensuring their success.”

For more information visit the website: www.toyotaforklift.ae or call the Contact Center: 800 4466 72537

AUGUST 2018 TRUCK&FLEET ME 13

INTERVIEW

VolVo EVolVEs

T&FME travels to Gothenburg for this year’s Volvo Innovation Days

I

n the multi-national, multi-brand behemoth that is the Volvo Group, it is Volvo Trucks International (VTI) that arguably continues to be at the forefront of the group’s efforts to remain at the bleeding edge of technological advancement.

Enjoying mild but damp June weather, T&FME travels through Gothenburg’s wide avenues to take part in this year’s Innovation Days, the company’s perennial showcasing of its very latest developments in safety, autonomy and efficiency. Rubber stamping the company’s global ambitions, the trip is coinciding with the Gothenburg leg of the 2018 Volvo Ocean Race and as we cross the Gota Alv, from where the city draws its name, the boats can be seen moored to the harbour below.

Gothenburg is Volvo country. The famous iron marque greets you at the airport and is emblazoned on every other vehicle you see on the road. Ubiquitous, the Volvo Group is even creating its own city-within-a-city with the construction of Campus Lundby district which has been funded by a $300,000 sale of property it owned across Gothenburg. Then there are the factories and research centres that spread out on the fringes of the city. So many people work at VTI, Volvo Construction Equipment and the Chinese-owned Volvo Cars that they changed the shift patterns to stop gridlocking the city in rush hour.

On arrival at the Volvo Experience Centre, Helene Mellquist welcomes the gathered media junket with an update of VTI’s progress – although she turns to another sporting event, other than the

14 TRUCK&FLEET ME AUGUST 2018

Volvo Ocean Race for a useful metaphor.

“We would like to say our position is number one. (There’s the football World Cup championship on right now) but we’re not like a Zlatan (referring to Zlatan Ibrahimovic, Sweden’s global footballing icon and a player so self-confident he refers to himself in the third person as simply Zlatan). It’s not that type of number one,” she says ruefully. “It’s more Swedish in the way that we would like to be the most desired. To do that we should be leading in performance and, by far, we should have the most successful customers because they are our main driver.”

Mellquist tells T&FME that the company is currently active in 72 countries and has a presence in 55 others with the company further bolstered in those markets with 500 dealer centres (“ we own more than 10% ourselves”). She adds that in 2017, the company delivered 120,000 vehicles and registered parts sales of 380 million euros.

Presenting a slide, she runs through the biggest markets for the company last year and most Middle East markets conspicuous by their absence. In 2016, Saudi Arabia ranked in the top 25 but has now dropped down the chart. Mellquist, however, is cautiously optimistic that reform and the national development strategy of the Kingdom will help strengthen the market.

“I would like to be part of the transformation that is happening and I think we should have a role to play there. Instead of being oil dependent there will be so many other industries coming up such as mining and the service industries,” she comments. “I think we have an important role to play there.”

We are building further on our success with new functions that help make the traffic environment even safer. This is all in accordance with our vision that no accidents involving Volvo trucks should ever occur”

Entering into this year, 1,355 trucks were sold in the MEENA region in the first quarter and Mellquist adds that the company is scoring high in terms of the perception of its brand and products in many key markets across the territory. In Turkey and Morocco, Volvo trucks are considered the leading vehicles in terms of image position and number two in Saudi Arabia and the UAE. Likewise, on a another slide she reveals that Volvo ranks highest in terms of customer satisfaction in the UAE and number two in Saudi Arabia and Turkey.

“Our image and how we are perceived is very dear to us,” she says. “These are positions that we really aim for everywhere.

We should be number one or number two, and number one absolutely in the image.

You can see that we have a strong position in all the footholds that we have.”

When Mellquist last spoke to T&FME she talked in great detail about how Volvo had been shaped by the harsh Swedish climate of short summers and long, cold and icy winters. She says core values such as respecting the conditions and environment have shaped the company from the outset and remain more relevant than ever.

“Swedish people had to be innovative to survive in this. We have also had to live very close to our nature... and all of this has been built into the foundation of our core values of safety, quality and environmental care ever since we started.”

2018 is the 90th year since Volvo trucks first went into production; rolling out onto the snowy Swedish roads and beginning their journey to help establish Sweden as a major commercial vehicles-maker. Mellquist

INTERVIEW

HIGHWAY TO HIGH TECHNOLOGY Volvo Trucks presented a lot of emerging technology in drivelines and autonomy but the updated Volvo Dynamic Steering really impressed during its Innovation Days event.

AUGUST 2018 TRUCK&FLEET ME 15

INTERVIEW

REMOTE AND IN CONTROL Volvo Dynamic Steering with External Steering is every little boy or girl’s dream, enabling drivers to control the truck from outside the cab.

says she is proud to be at the helm as the significant landmark is passed: “It’s something you need to take on and respect. You need to handle it with care,” she muses.

Changing technology

Much of the brand identity that has formed around Volvo over the past nine decades has been wrapped up in building a legacy in safety. Famously, the company developed and then donated the three-point safety belt to the automotive industry in the 1960s, a move that freed it to be deployed vehicles across the world. In recent years, it has helped shape the current generation of safety and efficiency systems used on trucks, including its I-Shift automatic transmission, Collision Warning and Emergency Braking System, Lane Assist, and much more.

While there was much to admire in the long-term vision for semi-autonomous trucks and alternative driveline systems (which T&FME will explore in more detail in the next issue), the real substance for Middle East fleet owners was the revealing of its evolution of the Volvo Dynamic Steering (VDS) system.

Volvo Dynamic Steering was originally developed to automatically compensate for unevenness in the road surface and to eliminate vibration and kicks in the steering wheel. When driving at low speed, steering wheel resistance is reduced by 75% – a major benefit, says VTI, when reversing and in close-quarter manoeuvring. The steering wheel also self-centres as soon as the driver’s grip on the wheel lightens. At higher speeds, the truck can maintain its direction even on poor surfaces and in strong side-winds.

VTI has reached a new phase in its safety 16 TRUCK&FLEET ME AUGUST 2018

and efficiency driving systems development, where it is beginning to integrate and connect the various systems installed on its trucks.

When VDS was first sold to the industry, Volvo chose Claude Van Damme doing the splits between two trucks to demonstrate to capture how its provides stability and control at speed. Since then it has been beefed-up by combining with systems such as Lane Keeping Assist and the Electronic Stability Control system making it even more powerful.

Take Volvo Dynamic Steering with Stability Assist, for example. VDS uses hydraulic power steering that is assisted by an electronicallyregulated electric motor which continuously adjusts steering and provides added turning force when needed. It is now able to work together with the truck’s Electronic Stability

I would like to be part of the transformation that is happening in saudi and I think we should have a role to play there”

Control system using sensors to continuously monitor the truck’s rotational speed (yaw).

If there is a slight skidding is detected, the system is activated and provides light steering wheel assistance to help the driver steer in the opposite direction, stabilising the vehicle.

“Imagine you’re driving on a wet, slippery road and you suddenly notice that the rear of the truck is starting to lose its grip on the asphalt. Before this develops into a skid, you steer gently in the opposite direction until the danger is over. That’s exactly the way Volvo Dynamic Steering with Stability Assist works.

The big difference is that the system can discover the risk and help stabilise the vehicle before you’ve even noticed that something is about to happen,” explains traffic and safety product director Carl Johan Almqvist.

Elsewhere, VDS will work together with the on-board Lane Keeping Support system at speeds over 55 km/h using the latter’s cameras.

Should it detect that the truck is drifting outside its current lane, the steering kicks in and helps the driver return to the intended direction. If additional assistance is needed, the driver is alerted via gentle vibration in the steering wheel, instead of a warning sound. (One driver told T&FME that vibration – or habtic feedback – is the most popular form of warning in the cab).

Further enhancements include the option to use personal steering settings and allow drivers to fully customise the sensitivity of the steering. Ulf Andreasson, product manager for the FM and FMX says the driver can choose between four pre-programmed steering settings through the truck’s infotainment system or their own fully personalised settings. The driver’s steering setting are stored via the driver’s ID Card but they can chose other pre-set settings

UPTIME ON THE OUTSIDE Volvo Trucks claims that Volvo Dynamic Steering with External Steering will improve productivity by reducing the time needed to get in and out of the cab.

HYUNDAI ECO-FRIENDLY VEHICLE MAKES WORLD PREMIERE Hyundai’s next-generation fuel-cell electric buses equipped with enhanced technical specifications will be unveiled next year

FCEV (′05 1st Gen / ′09 2nd Gen / ′16 3rd Gen)

BEV (′18)

CNG Hybrid (′12)

CNG (′00)

Hyundai Motor Company has long recognized the importance of sustainability and strived to develop low-emission vehicles.

Ever since it launched a compressed natural gas (CNG) bus in 2000, its work has brought about tangible outcomes, culminating in the FCEVs, which received a test-run at the 2018 PyeongChang Winter Olympics.

FCEV Bus (city transport)

Battery Hydrogen tank

FCEV Coach (tour/express transport)

Air-conditioning Cooling Inverter, J/Box

Wheel motor axle

Electric machinery

Fuel cell

FCEV Coach Specification Dimensions

Powertrain

The futuristic image and comfortable interior environment will satisfy drivers and passengers

Performance

Length (mm)

12,030

Passenger

22 (21+1)

Fuel cell max. output (kW)

200 (100 x 2)

Hydrogen tank Pressure (bar)/Capacity (kg)

700/38

Battery type/ Capacity (kWh)

Lithium-ion polymer/33

Motor type/ max. power (kW)

Central motor/240

Top speed (KPH)

138

One charge mileage (km)

464 Highway (actual road)

The Hyundai FCEV’s world premiere was a high point for Hyundai Commercial Vehicle and is its response to the growing trend towards eco-friendly transport. The Hyundai FCEV features Hyundai’s world-leading proprietary FCEV technologies and made a strong impression with its quick charging time of 15 minutes and driving range 460km, about 6.5 times the charging efficiency of battery electric buses. It also received positive feedback for the incorporation of various advanced features including a button-driven gearbox and a digital cluster suitable for electric driving.

Hyundai Fuel Cell Electric Vehicle emits no environmental pollutants and actually purifies the ambient air while in operation. For this reason, it has been named ‘the ultimate eco-friendly bus’. Hyundai Commercial Vehicle promises to take the lead in meeting the global demand for environmentally friendly transport. It is developing various eco-friendly commercial vehicles, such as fuel cell electric buses and battery electric buses suitable for various uses and environments.

trucknbus.hyundai.com www.facebook.com/hyundaiCV

Partner in Every Way. Hyundai TRUCK & BUS

INTERVIEW

on the fly such as ‘light’ for construction applications, ‘responsive’ for roads or ‘stable’ if they want a heavier feel of the steering wheel. They can also adjust other settings like cornering or damping on the fly too – think a graphic equaliser but for truck behaviour.

“We have developed the four settings that we think will 90% of all situations, but then as an option, you can do your own settings depending on how you prefer the feel of the truck,” Andreasson explains. “As a bonus if you have a strong side wind, you can change the straight-ahead position really easily.”

Almqvist says each driver has a different perception of how light or heavy the steering system should be:“Now every driver can adjust the steering wheel resistance exactly as he or she wants for comfortable, relaxed and safe driving.

This is a very practical feature, not least for trucks that often have different drivers,” he adds.

Finally, Volvo Trucks is also introducing VDS with External Steering. Using a shoulder-

We should be the most leading in performance and, by far, we should have the most successful customers because that is our main driver”

holstered and sturdy-looking (let’s call it industrial-looking) remote control a driver can step outside the cab to manoeuvre the truck.

Andreasson tells T&FME that this will save time and improve productivity by reducing the need to climb in and out of the truck.

Using an electronic interface that can be installed to trailers by bodybuilders, it is possible to have it in the Middle East although the applications may be limited, says Andreasson before adding that in many cases it can improve, “the working conditions of the driver.”

Following a short talk hosted by Andreasson during the Innovations Days event, T&FME got to experience some of the interplay of VDS and other systems on the test track in Gothenburg. Sitting in a cab with a driver switching through the settings on the track on his screen as Andreasson stood visible through the window; moving a truck like it was a toy car was an impressive experience;

and the results of Volvo’s engineers are clearly a significant leap forward for drivers of its trucks.

“Volvo Dynamic Steering has truly revolutionised the driver’s job behind the wheel. Better directional stability, easier manoeuvring and higher comfort have reduced the risk of road accidents and strain-related injuries,” says Almqvist.

“Now we are building further on our success with new functions that help make the traffic environment even safer. This is all in accordance with our vision that no accidents involving Volvo trucks should ever occur. These functions were developed to help drivers avoid some of the most common accident scenarios identified via our accident research programme.”

Saving lives is action hero stuff and, with VDS, Volvo is getting Belgium’s finest Van Damme working alongside Schwarzenegger, Stallone, Ford, and maybe a touch of Sweden’s Zlatan too.

CONNECTED SAFETY AND TECHNOLOGY Volvo Trucks has introduced its own cloud-based service, Connected Safety, which allows its trucks and Volvo cars to automatically alert each other to hazardous traffic situations. The two independent vehicle manufacturers are allowing their cars and trucks to share realtime traffic hazard information.

When the hazard warning lights are switched on, the truck sends a signal via the driver’s Internet-connected mobile phone to Volvo Trucks’ cloud service.

From there the information is forwarded to the corresponding service at Volvo Cars. An alert is then transmitted to all connected cars and trucks approaching the location of the vehicle whose hazard lights have been activated.

18 TRUCK&FLEET ME AUGUST 2018

Like VDS, Connected Safety is bringing together several existent technologies under one umbrella such as its Adaptive Cruise Control, Collision warning with Emergency Brake and Driver Alert Support which alerts the driver to stop for a break if the system identifies signs of inattentiveness.

The passenger-car version of Connected Safety was launched

by Volvo Cars in 2016. With Volvo Trucks now rolling out its version of the service, trucks and cars are able to alert each other to potential hazards. This is possible because the two companies share safety-related data between their respective clouds.

“Expanded cooperation between different players is one of the most

important keys to improved road safety. If more vehicles are able to exchange real-time information about the traffic situation, it will lower the risk of accidents. With Connected Safety we are opening the door to the future, with the hope that more vehicle manufacturers will join in,” says Carl Johan Almqvist, traffic and product safety director at Volvo Trucks.

Connected Safety was developed to send out alerts to nearby vehicles connected to the service whenever a driver activates the vehicle’s hazard warning lights.

“A vehicle standing still by the roadside in poor visibility risks being hit from the rear, which can have severe consequences.

An alert issued well in advance

gives all drivers of nearby cars and trucks the same opportunity to reduce speed, adjust their driving to the traffic situation and avoid a collision,” explains Carl Johan Almqvist.

In the longer term, the cloud-based service can be expanded with additional safety-enhancing functions.

“Real-time information will become an important complement to the various intelligent safety and driver support systems found in our trucks today. Connected Safety marks the start of a new phase in our ongoing drive to promote safe driving and prevent accidents,” says Emanuele Piga, director new services development at Volvo Truck.

Driving Synergies 11 – 15. 9. 2018 Experience an unrivalled diversity of mobility solutions. In addition to equipment, parts, accessories, management and services, the tyre industry is also represented for the first time in Frankfurt.

Automechanika and REIFEN – two leading world trade fairs at Germany’s most international trade fair venue. Use the synergies of tyres and workshop business at the largest industry forum since Automechanika started! www.automechanika.com mary.ann.romano@uae.messefrankfurt.com Tel. +971 4 389 45 00

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th

Automechanika Frankfurt

0-035_AUM_Besucher_allg_Truck_and_Fleet_240x300 • FOGRA 39 • CMYK • mr: 06.06.2018

DU: 14.07.2018

Dubai-gb

ADVERTORIAL

BeTTer FleeT eFFiciency

T

Giti Tire’s flagship brand is making a splash in the Middle East

hrough two decades of dedicated service in the Middle East, global tire company Giti Tire has learned that fleets perform at their best when they are running on tires that can endure the harshest conditions on the planet, as well as rely on support that ensures their operations’ run smoothly, safely and efficiently.

Now with the recent launch of its flagship Giti brand tires around the region – as well as a new regional office in Dubai – the market is taking special notice of its quality and value first-hand.

As fleet costs rise and road safety regulations become stricter, fleet owners require more help than ever to remain competitive. Chris Bloor, Executive Director of International Sales and Marketing at Giti Tire, says the company’s efforts strengthen its ability to provide vital fleet assistance at a time when many commercial vehicles operators are demanding more from their tires.

“Previously, the market was often characterised by wholesale selling with a focus on price and not much in the way of service or other benefits,” says Bloor. “However, this model is no longer able to succeed, due to

better informed end-users and an influx of low-end tires. A model that includes great cost-per-kilometer, service, fleet education, and support tools and materials is needed to be truly successful in the long-term.”

Characterising the region as a “large and diverse” consumer market, Bloor says that the region remains important because of the wide use of commercial vehicles that are well-suited to Giti’s line-up of tires. “When comparing costper-km in testing, Giti performs very strongly.

In addition we offer a great deal of training and support tools for fleets and other users. That is why Giti Tire products are already being used on a wide range of top-level fleets in the region.”

As one of the world’s largest global tire manufacturers, Giti Tire has close partnerships with numerous OEMs worldwide. Twelve international offices and five R&D/technical centres help power its eight factories in China, Indonesia and the US. The net result for the commercial truck and bus tire sector is a full range of Long Haul, Regional, Urban, Mixed Service, Off-Road, and even competition racing truck tires: “Regardless of the application or conditions the vehicles are working in, Giti has an option to fit the need,” says Bloor.

SErvinG SMArTEr flEETS “A model that includes great cost-per-km, service, fleet education, and support tools and materials is needed to be truly successful in the long-term,” says Bloor.

Giti tires are furthermore designed to withstand the harshest of environments, including the strong heat and sometimes challenging road conditions in the region.

For Giti, the quality and durability of its tires is always paramount, all the way from product design to the equipment used at all of its production facilities.

“This is something that can be demonstrated both when comparing the cut sections of the tires to others and in road testing,” says Bloor. “In addition, the tires allow for strong re-treadability which can provide even more lifelong value.”

Giti’s presence at Automechanika Dubai in May showcased its flagship tires for the region including the GSR225, GAM833, and GDR665 truck and bus patterns, as well as the RunFlat series and other premium offerings from the Giti passenger car range.

Bloor says the event was a great opportunity to show the brand and products to industry leaders from around the region: “Visitors were happy to experience first-hand the advantages which the tires bring.”

It was also a chance to gather Giti’s regional distributor partners who are crucial to expanding products and services to the local markets. “They are the bridge to the users in their countries,” Bloor says.

“Fortunately, we have a variety of very strong partners throughout the region, many who have been working together with the company for more than 10 and 20 years.”

Bloor notes an increased need for cleaner and more efficient transport in the region, drawing a comparison with Giti Tire’s own determination to be a greener manufacturer: “Fuel efficiency and conservation is extremely important for Giti Tire from the top management to factory workers. When educating distributors and end-users, fuel efficiency is one of the most important topics, and Giti always wants to help save fleet costs and also help the local environment and communities in which it operates.”

GAM833 The GAM833 – showcased at Automechnika Dubai in May — is a super durable and long-lasting all-position tire designed for on-and-off road vehicles In particular, it is a great option for dumpers, cement mixers, and dumper trailers – and is well tailored to the Middle East’s unique heat and terrain conditions.

AUGUST 2018 TRUCK&FLEET ME 21

INTERVIEW

Mudassir Sheikha, CEO & Cofounder, Careem, on a changing Saudi Arabia

CAreem riSeS To The Top

T

o say that the short history of Careem in the Kingdom of Saudi Arabia has been a success is probably doing the ride-hailing company a disservice. The brainchild of two former management consultants at McKinsey & Company, it has been merely six years since Mudassir Sheikha and Magnus Olsson, working alongside fellow co-founder Abdulla Elyas, first went live with a web-based service offering corporate car bookings.

Based in Dubai, the company continues

22 TRUCK&FLEET ME AUGUST 2018

to evolve, riding both technological and social change in the region and is one of the leading privately-owned transportation networks operators in the market. Today you can pick up your phone and hail one of its vehicles in nearly 100 cities in the Middle East, North Africa and South Asia. In Saudi Arabia it provides an income for more people than the Kingdom’s largest employer Saudi Aramco and almost 10% of its 800,000 enrolled drivers are based in the country.

In an extensive interview with T&FME, Mudassir Sheikha talks about how demand

Approximately 75,000 Saudi nationals now earn a income via Careem”

from women has exceeded expectations following the lifting of a ban of their ability to legally drive in Saudi Arabia.

You’ve been in Saudi for a number of years but it would be great to find out more about your journey up to this landmark moment

The infrastructure was already in place as Careem launched in Saudi Arabia in October 2013 and has so far invested almost $80 million in its Saudi operations in infrastructure, call centres, and affordable

INTERVIEW

A CHANGING KINGDOM Careem recieved thousands of requests for work ahead of June’s lifting of the ban on women drivers in Saudi Arabia.

Has the demand met or even exceeded expectations?

We have received thousands of requests to register on our platform and that was beyond our expectations, especially when we saw that applicants were from all parts of the Kingdom and comprising a wide range of ages.

To put this contect, what is the current overall performance of Careem in terms of recruitment?

We are employing more than 800,000 captains – our name for drivers – with full- and part-time opportunities to support their families. So far, we’ve given rides to around 24 million people.

Approximately 75,000 Saudi nationals now earn a full time or part-time income via services provided on Careem’s platform. This is more than the number of Saudi nationals employed by Saudi Aramco, the kingdom’s largest employer. With regards to women, we are constantly signing up and training women who want to work with us and our goal is to register more than 20,000 Captainahs region-wide (not just Saudi) by 2020.

In your opinion, why are the number of women passengers so high (at 70%) in Saudi?

Careem has been particularly beneficial for females who did not have safe and reliable transport before and this is reason that almost 70% of Careem’s rides are taken by females. People in Saudi have even referred to there being a time before, and a time after Careem, so significant has the impact been in enabling women to move around the country without the need for a male family member to drive them. Careem is the largest mover of people in Saudi Arabia.

We’ve naturally been very happy to be able to help improve the mobility of women in the region and now we can offer them employment opportunities as well.

How does a woman sign up? Do

on-demand transportation services in 40+ cities across the Kingdom. Careem KSA launched the Captainah Project “Women Captains” in October 2017, 14 days after the royal decree allowing women to drive.

From the moment that we announced we were willing to receive applications, there were thousands of requests from women wishing to work with Careem, notably in major cities Riyadh, Jeddah, and Dammam.

We have already started training and on-boarding the Captainahs to work with Careem through our office in Al Khobar City.

they need special permission?

Careem is the largest mover of people in Saudi Arabia”

No, they are just required to have normal licenses.

Do you expect any differences across the region for the availability of women drivers, if so, why?

No, while it would be logical to expect more drivers (male or female) to be available in the more populous areas of the country, (major cities Riyadh, Jeddah, and Dammam) we saw that applicants were from all parts of the Kingdom and comprising a wide range of ages.

INSIGHT FROM A CApTAINAH Amaal Farooq Farahat, one of Careem’s new Captainahs on what driving means to her “By being able to drive, a lot of the stress and hassle of figuring out in advance how to get from one place to the other will be diminished. I’m from the generation of Saudi women who remember a time before Careem, a time when you have the mobile number of limo drivers on speed dial, or you had to walk significant distances to get a limo off the streets.

I remember a time when taking a taxi was considered dangerous and when taxis were driven by Saudi men.

“I grew up in a time when the first Saudi women were protesting not being allowed to drive and were imprisoned for doing so. Our teachers were telling us how deluded and these women were as surely no respectable woman would want to drive.

“I remember a time when I was praying that my daughter would not have to face all the challenges I faced to get to work on time or get to any event that was important.

The discussions over women being able to drive has been on and off several time over the years and I’d honestly reached the point where I wondered whether I would witness this change or not. Now, not only do I get to witness it, I am ready for it with my first Saudi driving license.

“I believe many Saudis – both male and female – still need a lot more positive images of how Saudi women driving improves all our lives. Having the ability for women to work as Careem Captains opens lots of job opportunities for women and supports a lot more women to be out and about without the need for a male guardian.”

AUGUST 2018 TRUCK&FLEET ME 23

INTERVIEW

see a similar demographic?

Interestingly, there isn’t a typical demographic.

Careem drivers compromise a wide range of ages and backgrounds and so far, that has also been the case with women who have registered to work for us.

Beyond the training, what attributes

governments are our long-term partners and our relationships must be governed by mutual respect – Careem is of the region and for the region. Secondly, that Careem can drive growth, jobs and positive economic change, and thirdly, that Careem can help governments make their citizens happier by improving access to safe, affordable on-demand transportation services.

and smarts will women drivers need to have to be a business

What would you pinpoint

success in the Kingdom?

as the reason for your

The same ones as the men in the Kingdom.

success in the Kingdom?

As we’re clearly into new territory, is there a difference in insurance for women?

You’ll have to speak to an insurance company about that as we can’t really speculate upon future cost fluctuations in the insurance industry.

COFOUNDER, CAREEM MUDASSIR SHEIKHA, CEO & any has a mission comp the says em Care of The CEO ing multiple offer by lives le’s of simplifying peop the local market. transportation solutions tailored for

What targets are you setting in terms of recruitment?

Approximately 75,000 Saudi nationals now earn a full time or part-time income via services provided on Careem’s platform. This is more than the number of Saudi nationals employed by Saudi Aramco, the kingdom’s largest employer. With regards to women, we are constantly signing up and training women who want to work with us and our goal is to register more than 20,000 Captainahs region-wide (not just Saudi) by 2020.

What impact will allowing women drivers have on Saudi Arabia as a country?

We can’t speculate overall, but Careem has empowered Saudi Arabian women with a reliable means to get to their place of work and back home again. This has enabled women to become part of the workforce and he hugely helped with the government’s Vision 2030 plan to diversify the economy, decrease dependence on oil, and engage Saudis in the labour force. Also, it’s worth noting that more than 95 percent of Careem’s fleet in Saudi Arabia is driven by locals and now that women can join, it opens more earning opportunities for people and families in the country.

From the moment that we announced we were willing to receive applications, there were thousands of requests from women wishing to work with Careem”

Have you observed any resistance to the change in law or your busines?

We haven’t seen any resistance and our presence has been welcomed. Saudi Arabia announced in September 2017 it will allow women to drive, starting in June 2018.

The decree followed a series of decisions supporting Vision 2030, a plan to diversify the economy, decrease dependence on oil, and engage Saudis in the labour force.

Careem’s approach to engaging governments in each market we operate is defined by three guiding principles. First, that

Careem has a mission of simplifying people’s lives by offering multiple transportation solutions on its app with different pricing schemes to ensure everyone has the access to mobility. We have offered specially-tailored solutions for the local market, with a fast extend strategy to operate now in more than 40 cities in the kingdom. In Saudi, our car types are: GO (Most affordable ride for everyday use); GO Star (Ride with top rated Captains); Taxi (Book a taxi)l; Max (Spacious ride for group up to seven people); Business (Premium rides with a luxury service); First (Ultimate luxury); ONE (Easy access for wheelchairs); Delivery (Pick up and delivery of your orders and purchases); and SAWA (Share a Careem with another person travelling the same way).

With a wide range of prices we can be more inclusive in what we offer and – as we do everywhere we operate – tailor our service to the needs of that specific market.

What is a typical demographic of current Careem drivers in Saudi Arabia – given how new this is for women drivers, will we still 24 TRUCK&FLEET ME AUGUST 2018

EMpOWERING WOMEN IN SAUDI ARABIA Sheikha believes that Careem was enabling women to work as mode of transportation but can now offer even more earning opportunities.

INTERVIEW

OppORTUNITIES IN THE UAE Al-Tamimi & Co has conducted an analysis on the potential for a so-called Gig Economy in the UAE — but will need localisation.

THE RISE OF THE GIG ECONOMY: UAE EMplOYMENT CONSIDERATIONS BY lAW FIRM Al TAMIMI & CO Whilst Uber and (the Middle East equivalent) Careem operate in the UAE, the set-up is markedly different to their Western model.

Typically, the model in the UAE works, broadly, as follows: booking platform operator enters into a commercial services contract or agreement with a locally licensed and registered limousine company in order to avail of its limousines and drivers; its pricing of services must be in line with the limousine services and cannot compete directly with the city’s regular taxi companies; and it does not engage the drivers directly (which is the model in other Western jurisdictions) given the regulatory and licensing regime in the UAE. This therefore means that the drivers remain employees of the limousine company throughout – not of the booking platform operator.

From an employment perspective, then, the model is still very much the classic employeremployee one, with the employees of the limousine companies still

falling within the folds of the UAE Labour Law and entitled to basic standards and protections (including, as applicable, maximum working hours, sick leave and pay, the right not to be unfairly terminated and end-ofservice gratuity). Their employment relationship is very much specific to the limousine company only. It is a similar model throughout the GCC. The fact that the licensing regime in the UAE does not permit a driver (in this instance) to be engaged directly by such booking platforms adds another interesting and unique layer to the mix – which is not generally a matter of consideration in other countries in which Uber-esq models operate.

Is there scope for a genuine gig economy in the UAE? Could the concept of atypical working be adapted across other industries in the UAE? Yes, but it will require legislative change.

The UAE’s employment regime is inextricably linked to the immigration regime which itself is fairly static (very limited

exceptions apply). However, the UAE does recognise the concept of “the freelancer” or “independent worker” – but not in the same manner as other Western jurisdictions (and certainly not in the same manner as Uber-esq models). Freelancers/contractors can set up their own businesses (ordinarily in the various free zones) and, subject to the terms of their licenses, can render services to other companies but usually within the confines of the free zone in which it operates.

Work outside the free zone is generally not permitted. To that end, it remains to be seen whether a special flexible model of work (similar to the Western concept of independent contractor) will be developed or created in the UAE and across certain industry sectors, with the aim of creating greater flexibility. This would entail careful consideration, to ensure that appropriate frameworks are in place to accommodate the needs and requirements of both companies and individuals

operating under such a model, whilst maintaining a differing approach to such a set-up from an employment law perspective.

One would imagine that the appetite to introduce any such change would be limited to top end sectors/workers and not across the board generally as that would represent a paradigm shift in the entire fabric of the UAE visa/employment regime.

Technology has certainly made connecting workers and customers easier than ever before. This has enabled the rise of the rapidly growing gig economy. However, there has in other jurisdictions been an increasing trend of attempting to re-characterise gig-economy companies as employers of the independent contractors/workers.

Such a re-classification, it has been argued, hinders the growth of gig economies. It remains to be seen to what extent a new flexible model – creating a genuine selfemployed relationship of the kind envisaged by gig economy firms – can be adapted in the UAE.

AUGUST 2018 TRUCK&FLEET ME 25

LOGISTICS

Taking The load off T&FME looks at the challenge of building automation in port vehicles

26 TRUCK&FLEET ME AUGUST 2018

LOGISTICS

a

INCrEASINGLy COMpETITIvE It is a crucial time for those supplying the cranes and reach-stackers used at ports with global shipping becoming increasingly competitive says APM’s Alex Duca

s we pass into the second half of 2018, there remains an unease with how strong the green-shoots of growth in the global economy really are. One of the key bellwethers that people look for during a time of uncertainty is the shipping trade and in the last year it has seen a resurgence in the movement of cargo. 2017 saw TEU (twenty foot equivalent unit) global growth hit a reassuring 6% for a Gulf region that is investing in its ports and equipment to solidify its position as major export hub.

Across the region, large-scale infrastructure and economic programmes are underway. Saudi Arabia, for instance, has a string of large infrastructure and economic projects along its Red Sea coast as part of its Saudi Vision 2030 plan, including the development at DP World’s Jeddah Port as well as the $500 billion mega-development of the NEOM in the north of the country. Elsewhere, Kuwait is building the $3.3 billion Mubarak marine and air cargo port on Boubyan Island.

At the heart of the next generation of ports is the equipment used to ferry the containers off the ships and onto trucks and the planned GCC rail network with digital technologies expected to be central to the region’s transformation and growth of its ports. The UAE is currently testing autonomous ships with a view to improving safety and lowering operating costs by 2019.

If successful, autonomous harbour tugs could soon be towing and manoeuvring autonomous container ships within ports. Landside autonomous equipment, particularly cranes, will be utilised to make the links to the supply chain ever more efficient and the hope is that automation will help define the GCC’s importance on the world’s trading stage.

At TOC 2018 in Rotterdam, T&FME learned that cost and safety remain major barriers for large scale adoption of the technology.

It is a crucial time for those supplying the cranes and reach-stackers used at ports with global shipping becoming increasingly competitive, Alex Duca, director, head of automation program, APM Terminals, tells delegates during one of the event’s public sessions. He warns that the promise of digitalisation and automation of equipment, which could make ports more efficient, is presenting a new set of challenges.

“The customers, basically the shipping lines, have more buying power than ever in their current line structures. Our customers, like the supply chain managers,

need more transparency and timelines which will help them to proactively manage their supply chains,” he begins. “So port operators are becoming more and more constrained in a complex environment where a lot of stakeholder demands and we have standardisation efforts which that have not gained traction yet.”

Based in Rotterdam but active in ports across the globe, APM has committed to both automation and investment in landside logistics to improve its own supply chain management at its key international terminals. He says that as one of the world’s largest port and terminal operators the company is learning that the industry needs to standardise the autonomous technology it is using across all of its equipment if it is going to achieve its efficiency aims.

Duca cites the example of one of APM’s own greenfield port developments as typifying the scale of cooperation needed to integrate technology within a modern terminal.

“We are involving more than 30 local and global suppliers and partners; bringing together people of expertise from more than 10 countries; and counting, to date, 1.9 million man-hours on site and 3 million manhours planned to completion. And, in these numbers, we are not including the effort of our suppliers and partners in their engineering offices, their assembly lines and in their test facilities. That’s a very complex picture and standardisation is the only way forward.”

He adds that APM’s own approach to building in automation into terminal design is focussed on reducing complex terminal operation processes to individual modules. By breaking up processes such as crane operation and stacking, the company is learning how ports, and the technology they use, can be built or refitted to be more efficient.

“There are opportunities in each of these models to modernise into applied technology which after this could be connected with other modules,” he says.

“This modular concept to port operations and enhancing operations with technology is the foundation for everything. Automation is, for us, an evolution not a revolution, and our suppliers have to understand this. Let’s not forget it took us more than 20 years to get to the place where we are today.”

Not all ports have the benefit from starting from scratch. Retrofitting autonomous technology can quickly become an expensive and complex exercise with every terminal having its own unique legacy fleet of equipment with each machine having its own control system.

AUGUST 2018 TRUCK&FLEET ME 27

LOGISTICS

Christian Koegl, SVP, Siemens says that this challenge is further complicated by the need to consider the human factor in port design.

“People are always doing something different. We have to get to a point where we have a standard process,” he says. “For example, we have different competitors in the crane business, and while I think we shouldn’t go down to the last nuts on the crane, we have to standardise the communication between equipment and all over the terminal.”

When asked whether the level of standardisation may lead to a commoditisation of equipment and reduce innovation in the market, he suggests that the almost limitless variation between ports will mean that equipment-makers will always be pushed to supply different solutions at every terminal.

“This is not passenger car production, we are not producing one million cranes per year,” he says.

One of the biggest advocates for standardisation in the industry has been Antti Kaunonen, the head of Kalmar, one of the industry’s leading produces of crane and logistics vehicles and equipment.

According to Kaunonen, automation is the

ThE SIMpLIFIEd ApprOACh Konecranes is trying to make the process of integrating automation into its machines at ports as simple and as cost-effective as much as possible.

28 TRUCK&FLEET ME AUGUST 2018

automation is an evolution not a revolution, and our suppliers have to understand this. let’s not forget it took us more than 20 years to get to the place where we are today”

only foreseeable way by which terminals can respond to trends in the industry, and continue to improve the efficiency, safety and sustainability of their operations. A relative newcomer to the industry he says he is surprised to hear that only 2% of all current port operations are automated.

In a recent open letter to the industry, Kaunonen wrote that despite efforts between Kalmar and it competitors, an industry-wide standards framework has proven to be elusive as the port operators have been reluctant to participate.

“I’ve been in this industry for just three years and I am still amazed that we still haven’t any cooperation and the use of standardisation,” he says. “We are suppliers.

We can take care of our products but we cannot create standardisation and the direction (the industry) wants to go.”

Tuomas Saastamoinen, SVP, sales and marketing - Port Solutions, of RTG (rubber tyre gantry) crane giant Konecranes, says that there are some major barriers preventing wider use of automated cranes in ports. While questioning how automated something can truly be if there is a “muscle and joystick” not on the machine but based in a control centre,

LIEbhErr MArITIME INTrOdUCES bULkEdUp LrS 545 – 35 During TOC, Liebherr Maritime presented the first prototype of a new reachstacker, the LRS 545 -35 which is capable of lifting 35t in the second container row. Also unveiling the LRS 545 Log Handler, a machine with a grapple capacity of 8.2m, the company said its new port machine maintains the hydrostatic drive design that was developed for Liebherr wheel loaders. According to the company. it enables a number of unique advantages, such as a sidestepping of maintenance- and wearintensive parts such as differential and torque converters. Furthermore, the hydrostatic drive combined with the 230 kW Liebherr diesel engine provides possible fuel savings of up to 30% versus the market average.

“Since the last three years we collected an enormous amount of valuable feedback from our customers,” said Liebherr sales director Eric Colditz. “The operators praise particularly the stepless and gearless driving characteristics of our devices repeatedly. Thanks to the individual wheel drive and the excellent panoramic view from the driver’s cab, our reachstackers are well-known for their high mobility and all-round visibility, even on terminals with narrow container rows.”

To extend the safety aspect during operation, Liebherr developed the new Topview Camera System, which is an optional feature available for all device types of the LRS 545 series. The innovative Topview System offers the driver an excellent rear and side view from a bird’s eye perspective, without any blind spots. Due to the logical composition of three camera images, the complete rear area is covered by the system at an angle of 270°.

LOGISTICS

People are always doing something different.

We have to get to a point where we have a standard process … we have to standardise the communication all over the terminal”

MAChINES ANd vEhICLES TALkING TOGEThEr Cooperation is needed in the industry to ensure that al equipment and vehicles at logistics centres and ports can interface and coordinate with each other.

he says that, like Kalmar, his company is trying to make the process of integrating automation into its machines at ports as simple and as cost-effective as much as possible. He warns, however, there is always going to be a price barrier for port operators to contend with.

“Automating an RTG system is really not a commodity (process) today,” he says.

“Believe me, my team and I are trying to make it a commodity. We are trying to place the same standard system everywhere in the world but there are some frictions that are preventing us from doing it, challenges… it’s not too easy. It’s not the technology, the product, it’s the overall profits on the systems – and these are mainly safety-related.”

Despite Saastamoinen’s concerns with the viability of using automated RTG’s to carry heavy loads at ports, Francisco Banquer, innovation & development senior, Terminal Link, remains cautiously positive that progress is being made.

“Every time we try to start the house from the roof things go wrong,” he says.

“We need to start with the bricks: first we need the semantics, second the definition of automation, third the protocols and then the process. After that it will be much easier.”

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AUGUST 2018 TRUCK&FLEET ME 09:38 29 16.05.18

WORKSHOP

COnTinEnTAl DiGiTAl TYRE DATE / PARTnER nEEDED fOR DAlBY / AxAlTA MilESTOnE / AUDi OVERSPRAY / GOOGlE AnD VOlVO CARS

workshop

Continental sets date for new digital tyre 2019 DEADlinE SET fOR ME lAUnCH Of COnTiCOnnECT TYRES Global tyre major Continental has announced that it will introduce ContiConnect, its new digital tyre monitoring platform for commercial fleets, in the Middle East by 2019.

Describing ContiConnect as an “efficient solution for remote tyre monitoring”, a statement on the upcoming launch from Continental said the technology seeks to help fleets maximise efficiency by sending alerts if tyre pressure deviates from the defined value. By providing this information the new platform allows fleets to benefit from a reduced number of breakdowns, lowers maintenance costs, and generates value by increasing

the vehicle’s uptime, said the statement.

ContiConnect allows fleet managers to act proactively instead of fixing problems reactively, for entire fleets.

Juan Uruburu, head of sales, Commercial Vehicle Tyres, Continental Middle East, said: “ContiConnect is the starting point for Continental to become a profound partner for tyre-related data services.

“We are taking a huge step forward in our evolution from a premium tyre manufacturer to a solutions provider with this new digital tyre monitoring platform, which will provide a whole host of important benefits to customers in the Middle East from 2019.”

PRE- AnD RETRO-fiTTinG OPTiOnS Mounted on the tyre’s inner liner, the tyre sensor connects the vehicle’s tyres with the outside world. It measures both tyre pressure and temperature and will be available as both a retro-fit and a pre-fit option.

DAlBY lOOKS fOR lOCAl PARTnER lifTinG

French hooklift specialist Dalby says it is searching for partners in Middle East area in order to expand its export services. Dalby designs, builds and markets hydraulic hooklifts for all types of 2- to 32-ton vehicle, along with roll-off containers, and container trailers for road transport and agriculture.

Recent achievements with sales in Africa for cotton farming and waste management activities and the signing of a distribution agreement in Canada, have helped establish Dalby’s credibility and international recognition. Dalby offers customers a comprehensive range of equipment for roll-off containers, designed to ensure efficiency, simplicity, reliability and cost effectiveness, and assembled in its French manufacturing plants and workshops.

“Dalby’s strength is its adaptability and flexibility.

Our engineering teams are continuously developing or modernising our products and tailoring them to meet the specific needs,” said the company.

“Another of Dalby’s assets, particularly important in regions such as the Near- and Middle East, are that its hooklift controls are all pneumatic. There are no electric sensors to be subjected to weather and terrain conditions. Our system is unaffected by dust and sand deposits and does not need any kind of special cleaning. As our pneumatic sensors are integrated, they do not get broken in the event of collisions. This system is also practical and easy during repairs and offers a minimum operation mode.”

inSiDE THiS MOnTH’S WORKSHOP: nEW RESEARCH On THE RiSKS TO T&l COMPAniES nOT fACinG A DiGiTAl fUTURE, GOinG fOSSil fREE, AnD MORE 30 TRUCK&FLEET ME AUGUST 2018

WORKSHOP

AxAlTA SEllS 50,000TH SPECTROPHOTOMETER

Audi tests oversprAy free pAinting BODYWORK

Audi says it is expanding the spectrum of its painting methods with the addition of overspray-free painting. This technology allows specific surfaces of a car body to be painted in a different color – all in one spraying process.

This is economical and very resource friendly, claims the company. In a pilot paint shop at the plant in Ingolstadt, Audi is testing a method that is unique in the industry with car roofs in contrasting black.

“Time-consuming and material-intensive masking off is no longer necessary when painting without overspray,” explained the company in statement.

For spraying a contrasting color, employees previously had to mask off the relevant part of the car body and then paint it separately with a second spray process. With overspray-free painting, a robot-controlled high-precision instrument now measures the laser-brazed seam between the roof and the side-panel frame before each car is painted. A special applicator then applies the black paint directly to the car body in individual strips with millimetre accuracy. The applicator places the strips of paint with sharp borders and without any spray mist – that is, without any overspray.

“This method saves time and money, and the environment also benefits. On the one hand, no more masking material is needed; on the other hand, less paint is required,” said the company. “Audi plans to put the innovative process into series production already next year. In this way, the automobile manufacturer will offer its customers even more possibilities for individualisation.”

BODYWORK Bodywork specialist Axalta says it has sold its 50,000th spectrophotometer globally since the launch of the first generation of handheld devices for the refinish industry in 2005.

Spectrophotometers are used to match colours and are used by bodyshops to ensure faster, right-first-time color matches during refinishing.

To commemorate this accomplishment, BYK-Gardner created a limited-edition spectrophotometer, painted in StarLite, Axalta’s 2018 Automotive Color of the Year.

According to Axalta, Starlite is a modern, light and reflective hue for” vehicles of today and tomorrow that uses Axalta’s tri-coat process to create an eye catching pearlescent effect.”

The first commemorative device was presented to Joe McDougall, Axalta’s President of Global Refinish and EMEA, by BYK-Gardner President Frank Wagner during the 2018 IBIS Global Summit, in Munich, Germany.

“Marking the 50,000th global spectrophotometer sale highlights the importance refinishers attach to accurate and fast color matching,” said McDougall. “This small yet technology-packed device demonstrates our

fUTURE-PROOf TECH Axalta claims that Starlite is suitable for current and upcoming vehicles.

commitment to providing innovative colormatching technology to customers. These devices and their patented technology are designed to achieve the perfect color match accurately, efficiently and reliably, every day in the bodyshop. When used in conjunction with our color management software, they truly support our commitment to customers to transition from traditional color retrieval to a fully digital color management process.”

GOOGlE TO BE EMBEDDED inTO VOlVO CARS TECHnOlOGY

Volvo Cars say it is working with Google to place the voice-controlled Google Assistant, Google Play Store, Google Maps and other Google services into its next-generation Sensus infotainment system, based on Google’s Android operating system.

Apps and services developed by Google and Volvo Cars are embedded in the car, plus thousands of additional apps are available through the Google Play Store that is optimized and adapted for Android-based car infotainment systems.

COnTinUinG TO AD-APPT Volvo Cars says it is continuing to develop its own apps, software and connected services.

Since the next generation of Sensus will run on Android, new apps and software updates will be available in real-time and can be automatically applied. This allows future Volvo cars to react to customer needs and offer drivers up-todate information and predictive services.

“Bringing Google services into Volvo cars will accelerate innovation in connectivity and boost our development in applications and connected services,” commented Henrik Green, senior vice president of research and development at Volvo Cars. “Soon, Volvo drivers will have direct access to thousands of in-car apps that make daily life easier and the connected in-car experience more enjoyable.”

The Google Assistant provides a central voice interface for the car that allows drivers to control in-car functions such as air conditioning, and use apps to play music and send messages even when the car is not connected to the internet.

This integration contributes to reducing driver distraction, helping drivers keep their eyes on the road at all times.

Google Maps will also enable the next generation of Sensus to provide refreshed map and traffic data in real time, keeping drivers informed about upcoming traffic situations and proactively suggesting alternative routes.

AUGUST 2018 TRUCK&FLEET ME 31

ANALYSIS

Strategy& tells fleets that ignore technology that they will soon be out of business

FuTuRepRooF youR FleeT – oR Fail

T

o date, many T&L companies in the GCC have resisted investing in technology, but that wait-and-see mind-set now threatens to render them irrelevant. According to Strategy&’s new report, Putting GCC transportation and logistics in the driver’s seat: Technologies for business transformation, digital tools and applications are advancing rapidly, and T&L companies in other markets are already capitalising on them. T&L executives in the GCC need to start taking action today, the report warns. If not, they will serve as a drag on the region’s economic aspirations, rather than an engine to 32 TRUCK&FLEET ME AUGUST 2018

Rather than simply moving goods, big data help companies better manage information”

help achieve them. More important, a failure to embrace digital will put T&L companies themselves at a permanent disadvantage — one from which they will not recover.

Freight transportation and logistics (T&L) is a critical industry for the Gulf Cooperation Council (GCC)1 countries, yet its technology and infrastructure lag behind that of developed countries. Worldwide, new digital tools and applications are transforming T&L at all stages of the value chain. GCC companies have not seized this opportunity, nor capitalised on these technologies — which they must to remain competitive with global players. Digital is more than a tool to improve efficiency

— it is a means to fundamentally rethink business models and better support national goals of creating more vibrant economies.

There are numerous emerging technologies relevant to GCC T&L players. Many of these technologies are still in the initial stages of implementation. They have a long way to go in terms of regulatory support and capability development within companies before they are commercially viable. Nonetheless, several are further advanced and should be at the top of GCC T&L companies’ strategic agendas: big data and analytics, on-demand mobility, and blockchain.

We have observed that these digital

ANALYSIS

solutions have the potential to reduce operating costs by 10%-30% and reduce operational risk and breakdowns by up to 75%. Even more compelling is that these technologies allow T&L companies to develop new business models, based on services that dramatically improve customer engagement and unlock new revenue sources.

To capture these gains, GCC companies must move fast or risk ceding the first-mover advantage to their competitors. Already, some early adopters are implementing these technologies and retooling their operations and offerings, leading to operational and financial performance gains. To succeed, companies must apply a framework in which they rethink their strategic objectives and business model and then define a digital strategy to address their business needs.

The T&L industry in the GCC faces a combined, existential threat of declining business and outdated infrastructure. At the same time, T&L companies have a critical, oncein-a-generation opportunity to implement digital technologies that can transform their businesses.

From 2010 through 2014, freight revenue in the region grew at a steady pace of about 10%. Since then, revenue has declined by about 5% a year, due to slowing economic activity in the region. As oil prices remain low, businesses are scaling back projects, imports are down, and governments are spending less on the kind of infrastructure projects that require major freight shipments. revenues are slowing

GCC companies must move fast or risk ceding the first-mover advantage to their competitors”

In addition, the region’s T&L industry significantly lags behind its global peers in terms of technology. T&L is a latecomer to digitisation, with many management teams still applying an analog mind-set. It is a traditional industry worldwide, dating back to the origins of commerce. The Strategy& Industry Digitisation Index, which looked at how various sectors use data and analytics to improve operations, found that T&L is behind utilities. Based on our experience, GCC T&L companies are less digitised than their peers in more developed markets.

The slow progress thus far is not due to a lack of options. The industry is witnessing a wave of innovation across the entire value chain, as startups emerge with new, intelligent solutions to solve the challenges of moving goods across land and sea. To date, most GCC companies have not adopted these solutions — a critical failing that puts them at a steep competitive disadvantage, with no chance to recover.

The industry’s cautious approach poses

Improve cUSTomer experIeNce Redesign existing business models, improving customer satisfaction and loyalty. For example, Flexport, a U.S.based freight forwarder, bundled all freight carriers into a single database, which it offers free to companies that want to better organise and track their shipments. Flexport’s service is akin to Amazon’s “One-Click” model — it allows enterprise clients to set up automatic re-order cycles and plan future shipments, thus reducing their volumes of inventory. It also digitised much of the paperwork process, and it runs algorithms, allowing the system to become smarter over time. Flexport has also introduced its own freight forwarding service, which can sift through routes and rates to find customers the best terms, as a result of first-hand access to the relevant data. The company takes a 15% cut of every shipping container it moves. It currently moves $1.5 billion in merchandise value each year among 64 countries.

Transporeon is another example.

The company built a network that links more than 1,000 shippers, 65,000 carriers (including T&L providers, thirdparty logistics players, freight forwarders, and brokers), along with more than 100,000 users worldwide. The network is available on a “software-asa- service” model (SaaS, in which software is licensed and accessed remotely) in more than 100 countries and 24 languages. By using Transporeon’s tool, shippers can manage the request for proposal process, source suppliers, and automate auditing and billing. According to Transporeon, the tool lowers process costs by as much as 30%, freight costs by nearly 20%, and waiting times for carriers by 40%.

the risk that technology could be imposed on T&L because of the dynamics that are reshaping other sectors. If T&L companies continue to take the back seat in exploring and investing in new digital solutions in alignment with their overall business objectives, then they could instead end up with unplanned and inefficient technology retooling that is designed for the benefit of other firms. For example, in March 2018, Authentag, which provides inventory management services, announced that it will introduce a blockchain-based ledger system for the pharmaceutical industry to provide tracking and verification services for products. Successful trials for similar systems could force the T&L sector to adopt them to cater to the business needs and requirements of its large corporate clients, whether or not these technologies fit with any particular T&L company’s needs.

The policy environment, however, should encourage the digital transformation of GCC T&L. Governments in the region are making large-scale investments in digital to promote sustainable economic growth. Saudi Vision 2030, for example, seeks to increase the private sector’s role in the economy and diversify away from dependence on oil. Critically, it aims to improve logistics throughout the country. The United Arab Emirates (UAE) has an even stronger focus on T&L. The UAE Vision 2021 sets goals for innovation, including making digital technology one of seven primary national sectors, and it aspires to make the country first overall in the global rankings of air transport and port infrastructure, and among the top 10 in terms of logistics.

For these broad initiatives, investing in T&L is a short-term goal and a means of hitting more ambitious economic targets. Moreover, digital investments in the region are low risk as they involve retooling and redesigning minimal amounts of legacy IT infrastructure.

The constant flood of new technologies can be confusing for T&L executives. However, as powerful as these tools can be, they are merely tools that are most useful when applied to a specific purpose. Rather than trying to choose from an ever-changing menu of available technologies, T&L leaders must first determine their business objectives, and then determine the right application of technology to get there.

Overall, digital solutions offer two main benefits to T&L: increased operational efficiency and the fundamental redesign of business models. Greater efficiency is significant, particularly as the industry faces growing financial pressure and, in the short term, lower freight volume. Of greater importance is that T&L companies can fundamentally redesign AUGUST 2018 TRUCK&FLEET ME 33

ANALYSIS

their business models, improve the customer experience, and better engage with customers.

This change will be as radical for T&L as the shift in media was from playing videocassettes to streaming movies on a smartphone.

FINdING New wAYS For FLeeTS Companies need to think about how digital solutions allow them to interact with customers in new ways and what kinds of information and services those customers want.

Technologies to know

Most T&L executives rose through the ranks during a time when digital technologies did not even exist. They often do not know where to start when faced with many rapidly developing new technologies. Based on our analysis of the region’s T&L market, we believe there are nine important digital technologies for major T&L freight companies in the region.

Although all of these technologies are increasingly adopted and drawing considerable investments across various sectors and industries, we believe that the majority should not be high priorities for T&L companies in the GCC. This is primarily because these technologies are in the early stages of implementation and do not yet have regulatory support or because companies lack the internal capabilities to capitalise on them. However, a subset of these emerging technologies is already disrupting the regional T&L freight industry. We believe this subset will have the greatest impact in the industry over the next several years, and thus should be at the top of the management agenda for companies in the region. The most foundational new technology is big data and analytics.

Companies can reduce costs, improve their performance, and potentially transform their business model by capturing more data, and more detailed types of data, and running them through algorithms to yield insights. Rather than simply moving goods, big data and analytics help companies better manage information, and thus create greater value for their customers.

German freight company DHL Express, which has the largest market share in the GCC, is a good example. DHL Express’s use of big data and analytics has led to greater transparency for management, a dramatic improvement in processes and performance, and increased customer loyalty and retention. Rather than simply moving goods, big data and analytics help companies better manage information, and thus create greater value for their customers.

The company delivers goods for customers such as technology and pharmaceutical firms, consumer packaged goods companies, and individual consumers. DHL Express has transformed its entire value chain through the use of data. In the past, there was little transparency or collaboration among different aspects of the value chain. The company was unable to forecast accurately long-term demand, or to respond to spikes 34 TRUCK&FLEET ME AUGUST 2018

T&l executives in the GCC need to start taking action today. if not, they will serve as a drag on the region’s economic aspirations, rather than an engine to help achieve them”

redeSIGN exISTING bUSINeSS modeLS ANd proceSSeS Companies can redesign traditional business models and processes through digital. Companies across all industries now collect real-time performance information and use advanced analytics and business intelligence to make smarter decisions. For the T&L industry, we have seen, these improvements can reduce operational costs by 10 to 30% through efficiency gains, while minimising operational risks and reducing asset breakdowns by up to 75%.

or drops in short-term demand. Its assets, including manpower, were often either idle or stretched too thin, and the company had few customer interactions, leading to minimal brand equity.

In response, DHL Express implemented a project, leveraging big data and analytics, to connect those disparate parts and allow them to function more effectively as a coherent whole. The company now optimises routes in real-time, based on the delivery sequence of cargo, traffic conditions, and customer demands. Sensors on the trucks, for example, collect data on traffic conditions and send them to the analytics systems. DHL Express also “crowd-sources” pick-ups and deliveries among its drivers, allowing available carriers to scale up and handle increased volume on their regular routes.

By aggregating overall freight data and other information, DHL Express can generate more effective long-term forecasts. These allow the company to fine-tune operations among different entities, anticipate risk, and better utilise assets. It even sells marketbased information to small and mediumsized businesses, based on insights that its data yield. The company also gauges its own performance by soliciting input from customers, to assess satisfaction levels, predict which customers are likely to jump to competitors, and develop new services.

The second priority technology for

ANALYSIS

T&L freight companies in the GCC is ondemand mobility. This is the capability to get data securely and reliably into the hands of those who need it – whether through smart phones, tablets, or other mobile platforms. After all, data only have value if decision makers can access them when and where they are making critical decisions.

Some startups are launching in the region based on the concept of on-demand mobility.

For example, a company called Load-Me. com has created a transportation marketplace in the GCC. The goal was to give shippers greater transparency on freight costs and streamline some of the often unnecessarily long and complicated processes involved in booking freight transport in the region.

T&l leaders must first determine their objectives, and then determine the right technology to get there�

Load-Me.com in essence creates an online community of shippers, logistics professionals, and drivers, allowing them to work directly with each other. It gives real-time information about shipments that need transport, trucks, and other logistics services across the region.

As a result, it has increased competition and lowered freight costs. It has also dramatically simplified the process of booking freight.

The third digital technology with the greatest potential for disruption in the regional T&L industry is blockchain. In basic terms, blockchain allows organisations to record transactions online in a secure way, by encrypting them and distributing them across a wide network of computers. For the GCC freight industry, blockchain is a way to connect carriers and shippers directly without the need for distributors or other intermediaries.For example, Silicon Valley-based startup called Skuchain created a blockchain-based app specifically for the T&L industry. By removing the middleman of distributors and reducing shipping complexity, it simplified shipping and reduces logistics costs. By creating a means to track shipments securely throughout their journey, Skuchain puts smaller and less-experienced carriers, such as those in the Middle East, on an equal footing with larger, established players.

T&L executives and management teams need a structured approach for how to implement digital technology because it represents a radically new way of working for many T&L companies. Regardless of which technology they choose to prioritise, there are five critical elements to consider.

First and foremost, companies need to rethink their business model or define their business strategy. For some. emerging digital tools will mesh with their current business model and lead to incremental gains in performance.

For example, port operators in the GCC need to think about how digital tools can lead to greater transparency, streamlined operations, a faster

flow of cargo and data, and improved pricing.

For other types of players, the technology will completely disrupt their business, allowing them to develop entirely new models.

Next, companies need to think about how digital solutions allow them to interact with customers in new ways and what kinds of information and services those customers want. For companies that offer last-mile delivery services, these kinds of interactions could include unconventional delivery technologies.

DHL Express has started using autonomous quadcopter drones to deliver small packages to customers on Juist, an island 12km from the German North Sea coast. Improved last-mile customer interactions could also include a 24/7 call center, website, mobile app, and social networks, so that customers can always check the status of a delivery and resolve any issues.

Companies need to rethink their business model or define their digital business strategy. The choice of technology is a key decision, and it will vary depending on the role a T&L company plays in the value chain. Freight forwarders will likely start with big data and analytics tools that allow them to optimise routes based on real-time conditions, benefit from predictive maintenance (rather than reactive repairs), and collaborate across their entire supply chain, including air, land, and sea assets.

Just about all T&L companies in the region will need to invest in upgrading their digital skills in key areas such as cybersecurity and data mining. Some companies may establish new organisational functions to house all digital capabilities. Perhaps most important, companies need to remain on active lookout for new developments in technology, so they can stay current.

Finally, companies will need to reengineer key business and operation processes to capitalise on the new tools, in areas such as cargo-tracking, pricing, and cross-docking.

INveNT New eNGAGemeNT or bUSINeSS modeLS T&L companies can use digital technologies to launch entirely new means of creating value.

For example, a company called Freightos developed an inventive new business model: a web-based marketplace for international freight shipping.

Freightos aggregates quotes for services from thousands of freight forwarders, allowing

shipping customers to see what is available in terms of price, service levels, and transit times, and then book instantly through the site.

Another good example is C.H. Robinson, a North American third-party logistics provider that developed a SaaS platform called Navisphere, which delivers better customer service

while also generating revenue.

The platform gives customers greater transparency into their supply chain, down to the level of individual stock keeping units (SKUs). Using machine learning and AIalgorithms, it can identify supply chain threats such as weather, traffic, or geopolitical events, assess their impact, and recommend mitigation measures.

AUGUST 2018 TRUCK&FLEET ME 35

FEATURE

The possIble dreAm

Fossil-free fleets by 2050 are not only possible but could make operations less costly, says research headed by Scania

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chieving a fossil-free commercial transport system in the timeframe of the Paris Agreement target is not only possible, but also financially attractive from a societal perspective. This is the key conclusion of The Pathways Study initiated by Scania.

CO2 emissions can be reduced by over 20% simply by optimising transport systems, for example through improved routing and better load management. Moreover, there are several fuel- and powertrain pathways to a fossil-free future. Biofuels offer the highest CO2 emissions reduction pathway and electrification is the 36 TRUCK&FLEET ME AUGUST 2018

most cost-effective. Other technologies, such as hydrogen fuel cells and e-highways, have important use cases to consider and may be critical for select geographies and applications.

To reach this goal, the industry must begin to change rapidly and immediately.

New technologies can take a long time to achieve wide adoption, as the existing stock of vehicles turns over slowly. This means that for 2050 to be fossil-free, changes at scale are required already by 2025, including not just new technologies but also new infrastructure, behaviours, and partnerships.

To limit warming to two degrees Celsius, in line with the United Nations

It is critical to allocate resources to develop and commercialise new technologies�

Sustainable Development Goals and the Paris Agreement, the world will need to become fully fossil-free by 2050. This is a significant challenge, one which will require dramatic changes across all sectors in the form of new technologies, new infrastructure, and completely new business models. This study aspires to start a discussion on the decisions and actions that need to be taken today.

After the energy industry, transport is the largest source of global CO2 emissions and currently contributes nearly a quarter of global emissions. Commercial road transport represents nearly a quarter of that. The research shows that we can reach a fossil-free

FEATURE

After the energy industry, transport is the largest source of global Co2 emissions”

commercial transport system by 2050 – and that doing so reduces rather than adds societal costs on a cumulative basis.

The research goal was not to forecast how the industry will develop, but rather to start from the end goal of reaching zero CO2 emissions by 2050. From there, the research team determined what technology development, infrastructure development, and market adoption actions will be necessary to reach the goal. The impact that can be expected from these actions has been quantified, and the speed and intensity required to meet the Paris Agreement target outlined.

Several pathways to reach a fossilfree transport future, ranging from full electrification to a portfolio of powertrain types, have been identified. The transport sector and adjacent industries must begin to change rapidly and immediately to reach these goals. New technologies can take a long time to achieve wide adoption, as the existing stock of vehicles turns over slowly.

This means that for 2050 to be fossil-free, changes at scale are required by 2025, including not just new technologies but also new infrastructure, behaviours, and partnerships.

Since the pace and degree of change required is unprecedented, the heavy vehicle manufacturing industry cannot achieve this transformation alone. Resources to enable this transition must be allocated and cooperation across the industry and adjacent sectors, including the public sector, will be required.

In a “back-cast” modelling approach beginning with a range of 2050 scenarios, researchers calculated what it would take to achieve a fossil-free commercial transport ecosystem. Initially, a detailed model integrating the elements of logistics system and powertrain efficiency, technology cost and technology penetration, transportation and shipping demand, and “well-towheel” carbon emissions was built.

Technology cost was incorporated using a proprietary total cost of ownership (TCO) model that considers powertrain, fuel, and infrastructure costs to create a metric in euros per kilometre that is consistent across technologies. Long-haulage battery electric trucks could reach cost parity with diesel engines as early as 2027, while fuel cell vehicles could reach parity in 2047. The well-to-wheel carbon emissions were calculated based on the emission factors of each fuel and technology. This enables an understanding of the abatement potential of each scenario relative to a “business-as-usual” scenario where current operations continue without change.

The emission calculations were

THE FOUR PATHWAYS TO FOSSIL-FREE FLEETS 1. Battery electric vehicle (BEV) growth: In this scenario, commercial transportation is fully electrified by 2050.

2. Biofuels growth: Biofuels used in internal combustion engines are the near-term choice to begin abating CO2 emissions, but in the long run, battery electric vehicles constitute the majority, with biofuelbased internal combustion engines powering 20% of vehicles in 2050 based on maximum possible use of globally available biofuel supply.

3. Fuel cell electric vehicles (FCEV) growth: Fuel cell vehicles grow very rapidly to power most vehicles by 2050, with adoption starting later than battery electric due to larger cost disadvantage.

The remainder of the volume in the end-state is battery electric.

4. Technology mix: Multiple powertrain technologies and infrastructures will coexist, with a mix of battery electric, fuel cell, and biofuel-powered internal combustion engine vehicles.

comprehensive, spanning production to end-use of fuel and electricity. The assumption was that adjacent industries will also reach the Paris target, meaning that by 2050, the energy sector will also reach a point of fossilfree power for commercial transport’s global energy needs. It was therefore assumed that the cost of renewable integration would be reflected in slightly higher electricity prices.

A sensitivity analysis for the European market showed that if the grid only decarbonises along the trajectory dictated by current economics and regulation, a 90% reduction of cumulative emissions on average could still be obtained.

Each of these inputs were adjusted based on the transport segment, region and time frame being modelled. In the initial phase of the study, the focus was on the three commercial transport segments responsible for 90% of commercial vehicle carbon emissions – distribution vehicles, long-haulage transport, and city bus transport – in Sweden, the US, Germany and China.

Four scenarios or “pathways” were defined (Battery electric vehicle, Biofuels, Fuel Cell EVs, Technology mix) based on the penetration of competing powertrain technologies by 2050. These technologies were selected based on their potential to deliver a fossil-free transport system. Typically, growth in each technology was modelled to start at the point of cost parity with internal combustion engine vehicles. These scenarios were designed to serve as cornerstone cases to show whether it is possible to reach fossil-free transport on each path, and what is required to do so.

For each pathway, the total greenhouse gas abatement potential was calculated in terms of carbon dioxide equivalent (CO2e) and the total cost to the system, including all public and private sector investments required in technology and infrastructure.

Each of the four pathways requires different shifts in fuels and technology, A fossil-free commercial transport system is attainable by 2050 and delivers cost savings relative to business-as-usual operations through a combination of increased logistics and vehicle efficiency and through fossilfree fuels and powertrains. Emissions can be abated by over 20% simply by optimising transport systems and making non-powertrain vehicle improvements. Several fuel and powertrain pathways to a fossil-free future can be pursued: Biofuels is the highest carbon abatement pathway; Electrification is the most efficient and cost-effective pathway; Other technologies have important use cases to consider and may be critical for select geographies and applications. Each pathway requires an unprecedented pace of change.

These findings are consistent across geographies and indicate that we can build a cleaner and more cost-effective global commercial transport system. However, building a fossil-free commercial transport system in just one generation will not be easy.

Players across the transport sector and adjacent industries will need to work together, and with the public sector, in new ways. Innovation will need to accelerate, along with new technology adoption, at unprecedented pace. As a result, investments will need to begin now The research shows that several AUGUST 2018 TRUCK&FLEET ME 37

FEATURE

paths can lead to fossil-free commercial transport if investments begin immediately.

In addition to reducing greenhouse gas emissions, these investments could yield significant savings, lowering the overall cost to society of building, maintaining, and operating commercial transport by 20% or more compared to business-as-usual.

The degree and timing of cost savings potential differ by pathway. The lowest-cost scenario, the battery electric vehicle pathway, already yields savings relative to maintaining business-as-usual infrastructure within the next decade and delivers total system savings of about 20% by 2050. In Sweden, for example, a lowest-cost abatement pathway is 7% cheaper than business-as-usual in 2050 with the greater savings due primarily to Sweden’s comparatively low electricity prices.

More than 20% in emissions abatement can be achieved by optimising system and non-powertrain vehicle improvements, such as improving routing and load management.

The remainder of emissions can be abated with alternative powertrains and fuels.

The study indicates that a scenario with a high deployment of biofuels in the end-state can deliver full abatement by 2050 while delivering maximal abatement over the course of the transition, relative to other pathways.

This increased abatement does come at higher cost, however. While capex and infrastructure costs are very low because biofuels can be used to replace diesel in internal combustion engines and infrastructure, opex is almost two times higher in 2050 due to the high cost and energy intensity of biofuel production relative to renewable electricity. If diesel fuel was produced synthetically by renewable electrolysis (powerto-fuel), the cost and energy intensity would be even greater, and carbon capture technology would be required to render the fuel truly carbon-emissions free due to the persistence of point source combustion emissions.

Taking into account infrastructure and battery size requirements, the research shows that electrification can deliver up to 6% in cumulative savings through 2050, with about 21% lower system cost in 2050 compared with diesel.

The total cost of ownership for battery electric vehicles reaches parity with diesel for all vehicle segments, even long-haulage, by 2031. In fact, it is currently at cost-parity for bus and distribution applications in Sweden and for buses in Germany. Delivering the battery electric vehicle scenario by 2050 will require four to five times more infrastructure investment relative to the present situation, but it will decrease operating expenses by 38 TRUCK&FLEET ME AUGUST 2018

FAST RATE OF CHAnGE nEEdEd To achieve the goals of the Paris Agreement, technology must be developed at an unprecedented rate. Cooperation between all stakeholders is the only way the targets will be achieveable.

The industry must begin to change rapidly and immediately.

New technologies can take a long time to achieve wide adoption, as existing stock of vehicles turns over slowly”

40%, making for a cost profile that is very different from the diesel model. The battery electric vehicle growth pathway offers the most cost-effective route and delivers almost 20% total system cost savings by 2050 compared to business-as-usual.

When the carbon emissions impact of all battery electric vehicles is included – raw material mining, synthesis and formulation – the battery electric vehicles growth pathway still abates the second most carbon. While the battery electric vehicles pathway still reaches zero emissions by 2050 at the lowest cost relative to other pathways, players along the battery value chain will need to reduce the energy and carbon intensity of their operations to maximise the abatement potential of the electric powertrain.

If maximising carbon abatement over the coming decades is the chief objective, biofuels will be critical, given they lend the unique advantage of being able to play a near-term role in reducing emissions while the dominant engine on the road is still internal combustion. That said, their deployment may be challenged by high cost relative to other fuels and powertrains and by bioavailability.

If exclusively used for commercial transport, biofuels could supply a maximum of 20% of 2050 global commercial transport demand.

However, since there will be competing demand from applications that are more challenging to electrify, such as marine and air transport, this maximum is unlikely. Fuel cell vehicles, though more expensive to deploy, may become attractive alternatives to battery electric powertrains in markets where regulatory support for hydrogen technology is high, and supply of hydrogen is plentiful and available at low cost. Additionally, they are better suited to long-haulage transport due to higher range relative to battery electric vehicles, a key consideration for long distance transport.

Assuming high utilisation, electric highways used for long-haulage transport could be a costpositive enabler of electrification, particularly in the coming decade when battery pack costs remain high and further energy density improvements have yet to be commercialised.

Electric highways could deliver 17% increased abatement by reducing the size and quantity of batteries required by the commercial transport system. Pathways where multiple powertrain technologies coexist in the end state will need to overcome the cost of building and maintaining multiple forms of infrastructure, but could be critical for use cases and geographies where electrification is difficult to deploy.

Success of each of pathway requires not only an unprecedented rate of technological change but also requires adjacent industries to innovate, for example high renewables in electricity generation and continued falling battery prices. To meet the Paris Agreement target cost-effectively, we need to achieve an adoption rate growth of new fossil-free powertrain technologies of at least 5-10% per year on average across regions and achieve full sales penetration by 2040. Change at high speed and at scale take time; historical examples of other disruptive infrastructure and technology changes, such as the adoption of solar photovoltaic technology or 3G broadband, moved at a fraction of this pace.

Thus, this rate and scope of change represent a new horizon and a great challenge.

No single player can overcome this challenge alone. Public and private sector stakeholders around the world will need to cooperate in new ways, sharing ideas, financial resources, and risk. System and equipment providers will need to adopt new powertrain technology; transport providers must adopt emerging technology; retailers and transport buyers need to drive CO2 reductions in their supply chains; energy providers must continue to drive renewables penetration and ensure grid stability. And policymakers must work with industry to accelerate decarbonising technology to market.

PARTING SHOT

Safe and Secure

MAN Truck & bus Middle East hosts Safety workshop for dubai Police

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imed at emphasising the role of heavy vehicles in ensuring safety on UAE roads, MAN Truck & Bus Middle East, in partnership with RoadSafetyUAE, Michelin tyres and WABCO hosted a Safety workshop in June for Dubai Police officers, showcasing various road safety initiatives and solutions to reduce heavy commercial traffic incidents in the country.

The training highlighted the ongoing efforts

by MAN, Michelin and WABCO to increase road safety, both by building safety into its trucks and fostering a culture of safe driving. Participants gained insights into how proper safety measures, best tyre and load practices, technology-driven solutions and driver training support programs

can lead to a significant drop in road incidents.

More specifically, MAN demonstrated a number of technological solutions developed

by MAN such as Electronic Stability Program (ESP), Anti-Spin Regulator (ASR), Constant Damping Control (CDC), and MAN TeleMatics, an intelligent technology solution that provides drivers and fleet managers with essential data to optimise vehicle usage and plan services well in advance, and comprising a MAN Tachograph which automatically records the vehicle’s speed, distance travelled, and time spent on the road, helping keep tired drivers off the roads.

This is only a continuation of ongoing efforts and cooperation with Dubai Police will be extended through various training sessions, events and campaigns by end of the year in

order to make the UAE roads safer. MAN Truck & Bus Middle East is fully focussed on educating organisations on the importance of understanding the importance of vehicle speed, distance travelled, and time spent on the road; helping to keep tired drivers off the roads and reduce the likelihood of accidents.

“We are pleased to partner with Dubai Police to further enhance road safety awareness in the UAE,” said Franz von Redwitz, Managing Director, MAN Truck & Bus Middle East FZE. “The importance of stricter enforcement of laws and continuous education and training is paramount, but it is also critical to equip commercial vehicles with new technologies to ensure complete and absolute safety on the roads in the country.”

NEXT ISSUE: T&FME TAlkS TO GAME cHANGERS ION ANd TRUkkIN AbOUT HOw THEy ARE TRANSFORMING TRANSPORTATION ANd MUcH MORE!

40 TRUCK&FLEET ME AUGUST 2018

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