VEHICLES/ TECH / TranSporTaTIon/LogISTICS
O56/SEPTEMBER 2O18
MIDDLE EAST
PU BLI CATI O N LI CENSED BY D U BAI PRO D U CTI O N CIT Y
E d i R a E k a T
S S a L C E n I taro i c e w e n e th n o l i e v e h t s w o h s daimler lift a a i s ’ nt h o m s i h t f o ahead
E C n a H C d SECon ES fOR iTS SEcOnd h hOP n MG haS hiG En SUV in ThE REGiO G
contents
contents FEATURE
24 / dESigning FoR ThE REgion
The man behind the new Quester on how the testing in the Middle East was crucial.
also this issue … nETWoRK
05 / nEWS FRoM ThE MonTh
06
12
16
20
32
36
B2B helps Aramex to post impressive growth in the first half of 2018. LAUnChES
12 / going CoACh E-CLASS Daimler Buses reveals the new eCitaro ahead of this month’s IAA event. inTERViEW
16 / BATiC BooSTS TRUKKin Why Saudi Arabia’s transport giant is investing in the techno logistics start-up. inTERViEW
20 / A CLEAR ViEW WABCO’s Peter Bal on finding the right FMS and telematics set-up for your fleet. WoRKShoP
30 / gETTing hEAVy Vehicles to return to the Big 5 as the Big 5 Heavy is announced for November. FEATURE
32 / ACTiVE APTiV How active safety systems are no longer the preserve of premium vehicles. FEATURE
36 / iAA PREViEW The year’s most important commercial vehicles event returns to Hannover this month.
SEPTEMBER 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
The Saudi diSrupTerS Once upon a time, we used to call new technological and industry innovations as progress. Today, we perhaps too lazily slap the label of disruption (similar to the same way we over-use the word innovation for new technology) onto anything that we don’t have full control over. I’m not going to go down the rabbit hole of whether there is any coincidence that it is grown in usage since the global economic crisis that began a decade ago, but I do want to point out two ‘disruption’ episodes that piqued my interest over the summer. We’ve talked to a lot of companies that consider themselves industry disrupters over the past two years, and in this issue we catch up with the CEO of Trukkin, whose company has just received a cash injection from one of the largest publicly-listed transporters in the region, BATIC. You can read the article itself on page 20, but you can draw parallels to the Kingdom’s own drive to position itself as the centre of land logistics in the region and this investment into new technology. The Kingdom has finally recognised the importance of transport and logistics and is suddenly showing a willingness to invest. While Trukkin can be viewed as a minor start-up in global terms, Elon Musk’s Tesla is probably the biggest. Musk himself reportedly courted PiF financing for two years, and while there are rumours that a potential buyout has failed, reports that Saudi could yet invest in another US EV-maker suggest that the Kingdom remains fixed on securing a controlling stake in the automotive industry and transport industry at a global level. Finally, Truck & Fleet Middle East would just like to send its support to the RTA in Dubai and its progress towards setting industry standards for inspections. As has been mentioned in the pages of the magazine previously, the fleet and commercial vehicles sector needs careful regulatory frameworks in place if it is going to be able to match the green ambitions of cities like Dubai. We’ve seen elsewhere in the world that governments and local authorities are planning for a non-diesel future in the heart of their urban centres – and we are already seeing the early stages of this here. What is so welcoming about the RTA’s initiative has been the authority’s desire to engage with fleets, operators and testing centres to prepare standards that will help spur on the adoption of electric vehicles (as well as autonomous vehicles). The framework is necessary, the involvement of the industry may prove essential.
SUB EDITOR AELRED DOYLE aelred.doyle@cpitrademedia.com ADVERTISING SENIOR SALES MANAGER BIpIN SONEJI bipin.soneji@cpitrademedia.com +971 4 433 2856 DESIGN ART DIRECTOR SIMON COBON simon.cobon@cpitrademedia.com DESIGNER pERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com PHOTOGRAPHY MAKSYM pORIECHKIN maksym.poriechkin@cpitrademedia.com MARKETING MARKETING MANAGER SHEENA SApSfORD sheena.sapsford@cpitrademedia.com +971 4 375 5498 CIRCULATION & PRODUCTION PRODUCTION MANAGER VIpIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 WEB DEVELOPMENT MOHAMMAD AwAIS SADIQ SIDDIQUI fINANCE ACCOUNTS NAHEED HOOD naheed.hood@cpitrademedia.com +971 4 375 5474 CREDIT CONTROL ExECUTIVE CAMERON CARDOZO cameron.cardozo@cpitrademedia.com +971 4 375 5499 fOUNDER DOMINIC DE SOUSA (1959-2015) PRINTED BY AL ALEf pRINtINg pRESS LLC
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STEPHEN WHITE EdiToR, TRUCK&FLEET ME STEPHEN.WHiTE@CPiTRAdEMEdiA.CoM 02 TRUCK&FLEET ME SEPTEMBER 2018
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CONSULTANT
CONSTRUCTiON diSPUTe TiMeS fALL TO LOweST SiNCe 2011 bUT vALUeS SOAR 38%
Yousef Al Mulla to take over as DSI Group CEO as firm announces Q2 losses
It was great to read in the headline that construction dispute times are falling to their lowest (quickest?) since the turn of the decade but more worrisome
CONSTRUCTiON
to hear that: “On a
Two men killed during maintenance of industrial furnace in Jebel Ali
less positive note, the average value of disputes increased over the last year, rising to
feature: Art of Living Mall – The Consultant’s Role
$91 million. This was due to a small number of high-value disputes and a flow of ‘mid value’ final account claims.” It
CONSULTANT
is sad we’re still seeing
Dubai Properties energy initiative at Business Bay project to offset 1,450t of carbon dioxide
a small minority of big projects bringing the rest of us down, but I think this is mostly positive news for the industry. We all benefit when disputes are settled quickly particularly as the industry relies on cash flowing smoothly
CONSTRUCTiON
UAE launches next phase of Al Badiya Bridge project
in the system and we’ve seen how difficult it can be when it doesn’t. Sad to hear that companies continue to repeat the same mistakes of the past. We’ve clearly still got some room for improvement
CONSTRUCTiON
Construction begins on European Maternity Hospital project in Khalifa City 04 TRUCK&FLEET ME SEPTEMBER 2018
feature: Advancing low-carbon urban development in the UAe
as an industry! Name withheld by request
NETWORK
ARAMEX POSTS iMPRESSiVE RESULTS / gPL FOcUSSED ON BUSES ADNOc DiSTRiBUTiON gROWTH / MAN TRAiNiNg iN DUBAi / RTA STANDARDS
network B2B services and restructuring drive Aramex profit in H1 2018 ARAMEX REPORTS THAT iTS NET PROFiT WAS UP By 26% iN THE SEcOND QUARTER LOgiSTicS Aramex has reported that its net profit was up by 26% to $33.22 million in Q2, compared to $26.41 million in Q2 2017, as the company’s net profit in the first half of 2018 increased by 20% to $61.45 million, compared to $51.38 million for the same period of 2017. Revenues for the quarter rose by 7% to $335.43million, compared to $312.28 million in the corresponding period of 2017. H1 2018 revenue reached $659.42million, up by 7% compared to $613.40 million in the
same period 2017. “We are extremely pleased with our results this quarter, which are attributed to the increase in demand for our services across most of our businesses and to our restructuring efforts,” said cEO Bashar Obeid. “We continue to witness a boom in the global e-commerce market, and have been able to reap the benefits of that trend by boosting our investments in lastmile delivery solutions while enhancing our service levels. We also had encouraging growth in our Freight Forwarding
services specifically from the Oil and gas segment, which enjoyed a doubledigit growth this quarter. Aramex is continuing to develop its digital transformation strategy it hopes will improve profitability and efficiency in its business. The company is also on-track to deliver strong results this year: “as we continue to focus on initiatives to transform our business into a technologydriven enterprise and uplift operational efficiencies. While e-commerce continues to drive the growth of our Express business, we are
strategically committed to expanding our B2B and Freight Forwarding capabilities to leverage great business opportunities in our markets starting with the Oil and gas segment.” Aramex’s international Express business grew by 10% due to the strong growth in cross-border e-commerce across most regions. Aramex’s Logistics and Supply chain Management business increased by 13% to $38.66 million, as a result of the growth of business in key markets: UAE, KSA, North Africa and Singapore.
NEARLy 125,000 HEAVy-DUTy TRUcKS WERE SOLD gLOBALLy UP UNTiL JULy, WHicH iS THE HigHEST FigURE SiNcE 2008
06 TRUCK&FLEET ME SEPTEMBER 2018
NETWORK
ADNOc DiSTRiBUTiON ANNOUNcES POSiTiVE RESULTS FOR Q2, H1 2018
gPL LOOKiNg TO EXPAND BUS OPS TRANSPORT
Gulf Pinnacle Logistics (GPL) is looking to sign more than five new schools to its bus transportation business, adding thousands of students by the end of 2018. The company is in advanced discussions with various schools in the country, according to Shailesh Dash, chairman at Gulf Pinnacle Logistics. Gulf Pinnacle Logistics entered the school bus transportation business under the name of Gulf Pinnacle Transport (GPT) in September 2016 with three school transportation contracts providing services to 450 students with 30 busses. In less than two years, the firm was able to expand its transportation contracts to 13 schools, served via 250 buses and catering transportation services to more than 6,000 students. GPT’s portfolio of schools is a mix of highly regarded institutions spread between Dubai, Abu Dhabi and Sharjah offering British, American and Indian curriculums. This phenomenal growth is largely driven by a tremendous business development effort of its management team, operational excellence and state-of-the-art technology features. “Safety is our number one priority. We have excelled as we raised the bar for safety measures in the industry and are privileged to be the recipient of RTA’s Dubai Award for Sustainable Transport on the Category of Safety for the year 2017. Being recognised as an industry leader for safety has helped the company gain momentum, as new schools wanted to partner with us,” Dash said. “Our company is witnessing exponential growth, and we are confident that this growth will continue for the near future” Dash added. GPT has consistently improved its technology infrastructure, expanding its fleet and upgrading its bus-driver training methodology. “Our GPS systems allow parents to track the location of their kids with real-time updates and our camera systems assist us in monitoring the performance of our bus drivers and attendants.” Ganesh Sivaraman, GPT’s SVP said. “We have heavily invested in route-management technology solutions to optimise the performance levels of our buses on various fronts such as transportation time, route optimisation and cost.”
DiSTRiBUTiON ADNOC Distribution has reported that net profit for the six months ended 30th June 2018 increased by 18% to $306.02 year-on-year. Gross profit rose by 24% to $710.33million with free cash-flow generation up 72% year-on-year to $302.48million in the first half of 2018. The net profit for the second quarter of 2018 was up 24% compared to the second quarter of 2017, gross profit for Q2 2018 increased by 33%, and gross profit margin rose to 25%, up from 22% during the same period last year, the statement added. Total fuel volumes sold
during the period was 4,763 million litres, a 1% decrease compared to the same period last year. “ADNOC Distribution’s results reflect our continued progress towards delivering on our strategy. We have made progress in all three of our strategic pillars: fuel, non-fuel and cost-efficiency,” said Saeed Mubarak Al Rashdi, acting CEO, ADNOC Distribution. “We are on track to hit our declared target of achieving approximately $52 million in cost savings.”
KHiMJi RAMDAS DELiVERS LARgE HEAVy gENERATORS iN OMAN HEAVy TRANSPORT Khimji Ramdas Projects and Logistics Group, the Oman-headquartered freight, container, and cargo transport specialist, recently delivered a set of heat recovery steam generators (HRSGs) in Sohar, Oman, in a cargo comprising eight oversized pieces with a combined weight of 815t. The distance that the cargo was transported was 50km, from Sohar port to the job site. Khimji Ramdas took delivery of the items from a cargo vessel at the port, which brought in the
eight pieces with dimensions of 26.3m by 5.4m by 3.6m. The job involved jacking the loads onto customised stools, clearing customs, arranging escorts and civil work along the delivery route. Two lots of 18 axle lines of SPMT were used in the delivery. Arijit Das, unit manager at Khimji Ramdas, said the scope of work comprised surveying the route, arranging police permission to move the cargo and overseeing the entire delivery of one piece per day with operations taking place after midnight.
SEPTEMBER 2018 TRUCK&FLEET ME 07
NETWORK
TRiSTAR PURcHASES SHELL’S JAFZA TERMiNAL
TANK STORAgE
Tristar Group has further consolidated its presence in Jebel Ali Free Zone ( JAFZA) with the acquisition of the Shell Chemicals terminal in a deal that was recently signed between Eugene Mayne, Group CEO for Tristar, and Jack
Eggels, General Manager Chemical operations EU/AF/ME for Shell. The Shell Chemicals terminal is situated on a 21,000 sqm water facing lot and consists of nine above-the-ground storage tanks with a capacity of 5,505 CBM, a jetty with three pipeline connections
to the tanks, truck loading gantry and drumming facility. Tristar will undertake a capacity expansion and terminal modernization programme over the next five years which will see the capacity expand to over 25,000 CBM and designed to house a wide range of all types of Solvents and Industrial Chemicals. Shell will continue to remain a customer under the terms of a services agreement signed between the two companies. “We are very proud of this acquisition which has strategic importance not only for us a company but also to our customers who can now have access to a fully integrated distribution service,” said Mayne.
gULFTAiNER BEgiNS cONSTRUcTiON OF ROAD EXTENSiON LOgiSTicS Gulftainer, the world’s largest privately-owned independent port operator based has hosted a ceremony to celebrate the start of construction of the Saja’a Industrial Investment Park (SIIP), Permanent Access Road. The company’s $3million highway will extend over 2km to link the Saja’a Industrial Investment Park (SIIP), Gulftainer’s first-ever leasehold initiative, via the Emirates Road (E611), to the three major
seaports in Sharjah – Port Khalid, Hamriyah Port and Khorfakkan Port. Spanning an area of 750,000 square metres, SIIP is set to become a fully bonded logistics facility with goods imported under bond exempt from duty or VAT until released to the local market. “Moreover, the mixed use development will also offer convenient access to premier air and sea hubs as well as connectivity within the UAE and beyond,” said
Gulftainer in a statement. “We are delighted to announce the start of construction, once completed, will significantly improve transport links between the Saja’a Industrial Investment Part and the three seaports of Sharjah,” said, Peter Richards, Group CEO, Gulftainer. “Our investment testifies to our commitment to fuelling Sharjah’s economy and enhancing the emirate’s global competitiveness ranking.”
MAn: Fleets, Don’t unDer vAlue trAining ROAD SAFETy
MAN Truck & Bus Middle East recently took part in a ‘Road Safety for Commercial Driving’ seminar hosted by the Dubai Chamber Sustainability Network. The session, hosted by Hans-Joachim Neumann, head of training at MAN, placed emphasised the importance of combining behavioural and technological measures to tackle accidents. He identified supporting the introduction of road transport governance regulations, education for transport operators/enforcement officers and enforcing mandatory vehicle specification standards for new commercial vehicle deliveries as areas which could have a huge impact on improving road safety standards in the UAE, but also in the region as a whole. Neumann highlighted that intelligent safety and driver assistance systems as well as on correct load positioning can have a significant impact on making the roads a safer place. MAN research has found that driver education and training is underestimated. Fleets using MAN’s ProfiDrive programme, for example, can guarantee improved driver behaviour, safety, productivity, as well as extend vehicle life. “We are pleased to be able to present to the Dubai Chamber,” said Franz von Redwitz, Managing Director, MAN Truck & Bus Middle East FZE. “It is crucial to regularly conduct training and seminars as vehicle technologies are constantly changing and developing and professional drivers need to be able to adapt in order to ensure safe roads for all.”
iNSiDE THiS iSSUE: TRUKKiN’S cEO ON AcHiEViNg ScALE, FiNDiNg THE RigHT TELEMATicS AND FMS SySTEMS AND UD’S DESigN gURU
08 TRUCK&FLEET ME SEPTEMBER 2018
NETWORK
LULU iNVESTiNg iNTO SAUDi ARABiA RETAiL
uwe HerMAnn joins AuDi MiDDle eAst
LuLu Group’s chairman Yusuff Ali M.A. revealed that the company is investing $266.8 million into the Saudi market at the opening of the retailer’s 150th hypermarket in the Saudi captial Riyadh. “We see tremendous growth opportunities in the Kingdom and are glad to be part of the 2030 vision by further expanding our presence here,” he said. “We will open another 15 hypermarkets by 2020 at an investment of $270 million out of which five will be opened this year itself. This includes three Hypermarkets in Riyadh followed by one each in Tabuk and Dammam. This is apart from the SAR 1 billion we have already invested in the Kingdom till now.” He added: “Currently, our group employs more than 3000
Saudi nationals out of which 1,400 are ladies which is approximately 40% Saudisation. And our goal is to give employment to 6,000 Saudi nationals by the end of 2020. We have a very elaborate and effective multi-level training programme, through which we not only train them here but also send the local recruits to our other regions in the GCC & India for training in various
departments. We have also tied up with Saudi vocational institutions and universities in this regard.” LuLu Group is also investing $53 million in building a 93,000 sqm state-of-the-art wholesale and logistics centre in King Abdulla Economic City (KAEC), “will not only support our retail expansion but also help in ensuring food security.”
APPOiNTMENT
Uwe Hermann has joined Audi Middle East as its sales director for 11 countries, 12 importers and 24 dealer facilities in the GCC and Levant. An automotive professional with extensive international experience, Hermann has worked in the Middle East for more than 16 years. He joins the brand with the Four Rings from sister brand Porsche, where he held the role of senior regional sales manager. In his new role, he will lead the sales for the Audi brand across 11 countries, 12 importers and 24 dealer facilities in the GCC and Levant. Uwe Hermann will operate from the AVME regional office in Dubai and is responsible for driving the growth for the Audi brand in the Middle East. Key to this will be to focus on enhancing the customer experience through the long term goals of digitalisation, sustainability and urbanisation throughout the dealer network. “Audi Middle East has an exciting future ahead with a wealth of innovative new models arriving over the next few years,” said Hermann. “My role will be to develop the business in close partnership with our dealer network and to focus on enhancing the customer experience.”
10 TRUCK&FLEET ME SEPTEMBER 2018
DUBAi AUTHORiTy ENDORSES TEST STANDARDS FOR SELF-DRiViNg cARS REgULATiON Self-driving vehicles are a reality and will be here in the UAE in the near-future, according to Abdullah Yousef Al Ali, CEO of RTA’s Licensing Agency. Last month saw the RTA endorse testing standards of electric, hybrid and self-driving vehicles bringing it into line with international standards. Al Ali said that 66 workshops were required with vehicle
manufacturers, testing centres in Dubai and consultancy firms: “During these workshops, the responsibilities of each party were clearly defined, and plans were developed to ensure the successful implementation. As for the testing of electric and hybrid vehicles, RTA has given due consideration to the components of those vehicles such as the high-voltage battery, internal charging system, circuit
breaker, and transformer. Universal standards have been set up for implementation by technical inspection centres across Dubai, which were briefed about the role of equipment manufacturers.” “It involved the provision of appropriate infrastructure to ensure the safety and security of using these vehicles, especially noting that this type of vehicles will become a reality and hit Dubai streets in the near future.”
LAUNCHES
DAIMLER BRINGS THE NEW ECLASS OUT TO IAA IN HANNOVER / MG LAUNCHES ITS SECOND GENERATION Of SUV INTO THE MIDDLE EAST MARkET
lau nches TWIN POWERS
Two baTTERiEs ToTaL 243KwH
Taking buses into the eClass
DAIMLER UNVEILS THE MERCEDES-BENz ECITARO AHEAD Of THIS MONTH’S IAA The all-electric Mercedes-Benz eCitaro takes the company’s 50,000 unit best-selling city bus platform, straps on 243kWh lithium-ion batteries and packs in a thermal management system that slashes energy consumption by 50%. It’s also the first vehicle to truly benefit from Daimler Buses’ integrated eMobility system. Experts at EvoBus analyse every route the customer operates and a simulation program then calculates the energy requirements for the future electric buses in the system. This consultation results in precise recommendations
and calculations on energy consumption, the infrastructure required and the recommended connection power for the depots’ power supply as well as recommendations for charging management. A special eMobility service from the Omniplus service brand will also be available in future for service, maintenance and repair. The batteries have a total capacity of up to about 243 kWh provide the power for the eCitaro. They are modular in design: the batteries are divided between as many as ten modules, each supplying around 25 kWh. In addition
12 TRUCK&FLEET ME SEPTEMBER 2018
to two battery modules on the vehicle roof, the standard equipment includes four battery modules in the rear of the bus. Depending upon customer requirements, another two or four battery modules are mounted on the roof of the eCitaro. With a minimum of six and up to a maximum of ten possible battery modules, transport operators can adapt their usage and charging strategy very precisely to individual needs. With the maximum complement of ten battery modules, the eCitaro in standard specification weighs around 13.44t. In conjunction
with a gross vehicle weight (GVW) rating of 19.5t, this corresponds to a payload of more than six tonnes or around 88 passengers – in line with what is needed in practice even during rush hour, says Daimler. The eCitaro forms part of Daimler Buses’ integrated eMobility system. The focus is on the eConsulting expert advice service even before any purchase is made. Experts at EvoBus analyse every route the customer operates and a simulation program then calculates the energy requirements for the future electric buses in the system.
LAUNCHES
MG Motor launches new MG Gs 2019 MIDDLE EAST INTRODUCTION fOR IMPROVED SUV
READy fOR OPERATIONS The first Mercedes-benz eCitaro will be delivered at the end of the year and will go into practical operations and field testing with operator Rhein-Neckar-Verkehr.
MOVING TO CONSULTANCy The head of daimler buses Till oberwörder (second from right), says the eCitaro is more than just a battery concept and fully introduces a complete eMobility system.
This consultation results in precise recommendations and calculations on energy consumption, the infrastructure required and the recommended connection power for the depots’ power supply as well as recommendations for charging management. #A special eMobility service from the Omniplus service brand will be available in future for service, maintenance and repair. The current focus is on the eConsulting expert advice service even
before any purchase is made. Experts at EvoBus analyse every route the customer operates and a simulation programme then calculates the energy requirements for the future electric buses in the system.
MG Motor has launched New MG GS 2019 in the Middle East. While the previous generation MG GS was the first SUV to be launched by the British-born car brand onto the global market, the new, improved model now takes a major step forward with its refreshed and practical interior, high levels of equipment and dynamic design. The New MG GS is available across the region in two trim levels: 2.0T COM and 2.0T LUX AWD. With prices starting from just $17,200, depending on market, MG’s SUV offers fun family versatility in a highly affordable package. The New GS has a sportier, yet more aggressive look from the front and a newly designed bumper helps to improve aerodynamics and is nicely complemented by a larger grille and redesigned air intake. More than 80% of the surfaces are now covered in soft-touch material, an impressive 30 percent more than in the first-generation model. Making it as quiet as it is comfortable, MG has worked hard to reduce cabin noise. The central console has been completely revamped to offer a more premium finish and greater functionality. It integrates new 360o air conditioning vents, while a revised compressor contributes to both enhance the system’s operation and reduce noise. New, sportier seats contribute to the heightened levels of comfort and style within the cabin. Standard features on both models
include electric folding mirrors, an electrically-operated sunroof, keyless entry, cruise control, a push-start button, auto-hold function, hilldescent control, reversing sensors and a parking camera. The infotainment system also supports Apple CarPlay. There is ample room in the New MG GS, including 24 different storage spaces. The rear seats can be completely laid flat, expanding the trunk capacity from 434l to a whopping 1,336l and allowing easy storage of large items. And passengers also benefit from plenty of room in the smart cabin, thanks the new model’s dimensions – it is longer, wider and taller than its key competitors. Equipped with a 2.0T powerful engine, mated to a smoother 6-speed automatic gearbox with paddleshift gearchange, the New MG GS delivers maximum power of 221hp and maximum torque of 350Nm. It is available with either 2-Wheel Drive or a new AWD. SPECIfICATIONS Engine
2.0l
Power
221hp
Torque
350Nm
Transmission
6-speed paddleshift
Battery power
243 kwh
Drives
2wd or awd
STARTING PRICE $17,200 dEpENdiNg oN MaRKET
SPECIfICATIONS Electric motors 2 x 125 kw Torque
2 x 485 Nm
Battery power 243 kwh Weight
13.44t
Capacity
88 pax
GVW
19.5t
Range
250km
GREATER STABILITy in the rigidity of the Thanks to an overall improvement the new model has been suspension set-up, the stability of tly reduced. improved and cabin noise significan
SEPTEMBER 2018 TRUCK&FLEET ME 13
FEATURE
The bounCe bACk The global bus market could be ready to recover by the end of 2018, says analyst LMC Automotive
A
s expected, global bus and coach sales (GVW >6t) declined by 5% in 2017. Much of this decline can be attributed to a variety of economic and policy reforms in China and India which have negatively impacted bus demand over the last year. Encouragingly, global bus sales spiked in Q4’17 (6% YoY), as demand surged in China (13% YoY) ahead of the New Energy Vehicle subsidy cut at the turn of the year. Furthermore, growth was spurred on by the improving macroeconomic climate and the release of credit in Mercosur, which drove growth of 57% YoY in Q4. The most notable declines in 2017 were in China (6%), India (14%), the ASEAN region (15%) and the UK (9%). This year, we forecast the global bus market to rebound and expect growth of 3% - with demand picking up in the emerging economies. Following three consecutive quarters of YoY decline, bus sales in China rebounded strongly in the final quarter of 2017, with eye-catching 14 TRUCK&FLEET ME SEPTEMBER 2018
growth of 13%. Bus sales in the last three months accounted for 46% of total sales in 2017. This upward spike in demand was primarily as a result of bus buyers purchasing electric buses before the technical threshold for the New Energy Vehicle (NEV) subsidy was upgraded at the turn of the year. This year the NEV subsidy was cut by up to 40% and amended to favour vehicles with longer battery ranges. We expect a similar degree of seasonality distortion to continue as the NEV subsidy is progressively phased out by 2020. Looking at the full year in 2017, sales receded by 6%. This decline was primarily due to the implementation of the Euro V emission standards and NEV subsidy upgrade in January 2017 which incentivised a high number of pre-buys in the latter half of 2016, offset by a payback period in 2017. For 2018, we forecast resilient growth of 2%, with the seasonality profile remaining similar to last year. Sales will be boosted by high infrastructure spending and high demand for cleaner emitting vehicles. Of note, from July 2018 and applicable to buses, import
If the Chinese economy is to slow, as a result of the trade war, it is probable the Chinese government will launch some kind of stimulus measures to offset this”
tariffs for automotive vehicles and parts will be cut from 25% to 15%. This will increase the attractiveness of importing parts and reduce the overall cost of manufacturing. In regards to the continuing tit-for-tat tariffs between China and U.S. it is unlikely to have a significant effect on the bus market, for now. At present, we have not adjusted our forecast as a result of the further threats of a full blown trade war. However, the increasing likelihood could fuel inflation and undermine job and income growth – especially in exportdependent provinces. In addition, if the Chinese economy is to slow, as a result of the trade war, it is probable the Chinese government will launch some kind of stimulus measures to offset this. In the final quarter of 2017 Indian bus sales remained in the doldrums – declining 19% YoY. The Indian bus industry faced a number of hurdles last year which contributed to FY sales depreciating 14% from 2016. The bus market was weighed down by a series of economic and policy reforms, such as the Goods and Service Tax, demonetisation and
FEATURE
the BS IV emission standard implementation. Furthermore, demand was subdued as state transport undertakings (STUs) orders slumped and the roll out of the bus body code caused a degree of uncertainty. Looking at this year, we expect sales to rebound strongly from Q2 onwards and forecast double digit growth of 11%. This growth will be driven by stronger infrastructure spending and restored confidence as the negative effects from the economic reforms from last year fade. These factors will encourage fleet buyers to renew and expand their aging fleets. We expect this positive outlook to continue over the horizon, and we forecast a compound annual growth rate (CAGR) of 7% over the medium term. However, whilst we are optimistic on growth there remain some factors - particularly in the short term - which could impact demand. These include rising fuel prices and the weakening of the rupee. Following three years of decline the Brazilian bus market rebounded in 2017 and witnessed resilient FY growth of 5%, albeit from a very low base. The pick-up in bus demand coincides with the improving macroeconomic climate, which resulted in the economy coming out of recession and GDP expanding by 1% in 2017. In the final quarter of 2017 bus sales skyrocketed by 72%, which was spurred on by improving confidence and the release of funds under the Refrota 17 financing programme. The Refrota 17 programme aims to renew up to 10% of the urban fleet by financing the purchase of 10,000 new urban buses. For 2018, we expect a surge in demand and forecast FY growth of 16%. This growth will be stimulated by low interest rates, the Refrota 17 program and the requirement for
GLOBAL MARKET TAKES A hiT Changes to policy in China and India impacted global sales last year with sales down 5% in 2017.
MixEd RESULTS in EUROPE Sales in Western Europe were boosted by growth in Spain and Italy but sales were down in France, Germany and the UK. Eastern Europe was up 11%.
This year, we expect growth of 3% - with demand picking up in the emerging economies�
fleet owners running buses on interstate and international lines to reduce the average age of their fleet from 8 years to 6 years in 2018. Bus sales in 2017 surpassed 12,000 units (12% YoY) for the first time since 2013. The pickup in demand was supported by the improving macroeconomic climate and a number of government backed programmes to aid Russian bus manufacturers, replace old fleets and procure buses ahead of the World Cup in 2018. We forecast FY sales to grow by 4% in 2018, with the bulk of sales occurring in the first half of the year to accommodate the influx of tourists ahead of the World Cup in June 2018. Bus demand is projected to remain strong over the forecast, with a CAGR of 3% from 2017 to 2025. This will be driven by the renewal of aging fleets and
the replacement of dirtier emitting buses. The final quarter of 2017 witnessed bus sales decline by 1% YoY in the EU+2 region. The downturn in Q4’17 weighed down on full year sales, resulting in modest growth of 1%. The big five economies in Western Europe had mixed fortunes in 2017, with robust growth in Spain (8%) and Italy (21%) offset by declines in Germany (1%), France (1%) and the UK (9%). The largest gains in the EU+2 came from Eastern European countries that rebounded strongly after declines in 2016 to post growth of 11%. This year, we expect sales in the EU+2 to grow by 3% as demand picks up in Germany (2%) and France (1%), and buoyant city bus renewals bolster sales in Italy (22%). The most noteworthy decline is expected to continue in the UK (8%) as ongoing economic and regulatory uncertainty clouds confidence. In North America, the class 4-7 school bus market recorded its seventh consecutive year of growth in 2017 as sales surpassed 42,000 units (2%). This impressive run rate was heaped on by resilient sales in the final quarter of 2017 (4% YoY). By country, Mexico and USA witnessed 2017 FY sales exceed 5,000 (3%) and 35,000 units (3%) respectively, whilst growth was dampened to some extent by decline in Canada (9%). The downturn in Canada was foreseen, after a strong 2016 which was boosted by an increase in funding. This year, we expect the demand for school buses to cool off somewhat, following a prolonged period of post-recession growth. We forecast declines in the U.S. (2%) and Canada (10%) whilst we expect Mexico to buck this trend and post double digit growth of 13%. Overall, we expect the region to decline by 1% in 2018, whilst the long term average growth remains unchanged at 1%. SEPTEMBER 2018 TRUCK&FLEET ME 15
INTERVIEW
Trukkin’s CEO Janardan Dalmia reveals to T&FME why new funding will accelerate its growth
In for the long-haul t he region’s transport industry entered an exciting new era last year with the emergence of a tranche of truck aggregators into the market. Typified by their hunger and ambition to disrupt the market, they seemingly offer a radically different way for fleet operators to utilise their vehicles and expand their businesses. Truck aggregators are powered by their cloud-based and app-delivered technology which has drawn comparisons with the so-called ride-hailing companies such as Uber and Careem that have very quickly revolutionised passenger transport. Indeed, many of the companies that T&FME has
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spoken to in recent years admit they have been directly inspired to take on the status quo of transportation and logistics by looking at the way the ride-hailers leverage their technology to offer on-demand services to customers. In a very short time, we have seen companies such as Trukker and India’s Truckapp entering the market by recruiting large volumes of local transporters into their ranks. Unlike say, Uber, they are predominantly focused on operating within the B2B sector and attempting to attract companies that would normally be attached to a small group of regular transporters but are now wanting greater availability and potentially lower transport costs. The CEO of Trukkin, a company that describes itself as a B2B techno-logistics
the funding helps us to allocate resources in the further enhancement of our platforms”
platform, Janardan Dalmia told T&FME over a year ago that his company wants to give companies more control of their logistics. “An owner that transports goods in the Middle East could sit back in the UK for instance and have full visibility on how the business is. From a fleet and individual vehicle owner’s perspective under-utilisation is a huge issue. You may have a truck go to Riyadh and come back empty, it can be inefficient,” he said. “Independent drivers are dependent on certain individuals or companies that they are having to call up every day looking for jobs. With this they get control of their own livelihood which is what Uber and have companies have done. They are empowered as they can work in their own terms. In the middle of all
INTERVIEW
WhO IS JaNaRDaN DalMIa? An investment banker turned technology evangelist, Janardan Dalmia aka JD is on a mission to transform logistics industry. As CEO of Trukkin, JD is tasked with the mammoth responsibility of leading young, energetic and passionate team on to the next revolution in technology & logistics. Prior to Trukkin, JD was honing his corporate finance experience working with and advising on some of the very high profile M&A transactions over a decade at Barclays and Bank of America in Dubai and New York. JD is also the President & member of the Board at Aiwa.ae, an online business portal in the UAE. With the plethora of skill set & experience JD aims to make Trukkin the regional leader in the commercial transportation industry.
this we provide operational support for all the truck drivers and companies to ensure that these are good quality drivers.” Trukkin customers can request services to transport their goods/load and provide order details via the company’s app and web platforms. They gain access to a list of fleet owners, and independent drivers (who themselves must go through a verification process to join the service). Once the customers have chosen their preferred supplier and give the go-ahead, drivers are despatched from the logistics firm or fleet operator to pick up their goods and take them onto be delivered. After the driver makes it to the drop-off location and completed the delivery, a proof of delivery is uploaded to the app, and the service is officially concluded. (Customers then have a variety of in-app methods to offer payment. The Trukkin team will also provide clients with operational support throughout the transaction experience.) Dalmia told T&FME that this is a very simple process and low-cost for private customers. He argued that in the end they will be able to reduce their dependency on a carrier and give them the benefit of supply and demand economics. “Plus, they get the whole technology experience with tracking (in real-time through Trukkin’s tracking system) and control of their whole logistics,” he remarked. “From the fleet owner’s perspective, once we have verified them we teach them how to use the app and we then provide them with operational support.” He continued: “We give companies more control of their logistics. An owner that transports goods in the Middle East could sit back in the UK for instance and have full visibility on how the business is. With under-utilisation is a concern, you may have a truck go to Riyadh and come back empty, it can be inefficient.” Trukkin was launched in 2017, and in a short period of time, has matched industry expectations with significant commercial transport capabilities, shipping over 6,000 heavy cargo truck movement across GCC. The Middle East region carries huge potential in technologistics but is still tied up with traditional operating processes. The market is fragmented and is hampered by several inefficiencies. Trukkin is an aggregator, full-scale commercial and land transport service provider, offering trucks at the most competitive prices along with technology enhancements such as shipment tracking, along with optimal utilisation and effective fleet management. Trukkin has opened up a new way to unlock new suppliers and lower transport overheads.
Over the past year, Trukkin has set itself the ambitious goal of trying to make the transport and logistics sector in the region much more efficient and transparent. That requires continual investment into the technology at the heart of its business as well as its physical infrastructure particularly in the UAE and Saudi Arabia. Dalmia wants the company to be the de-facto enabler of the industry and has been working in the background to draw in backing and financial support to accelerate this progress. “As with any start-ups, there is a steep learning curve. We have had to learn fast, adapt fast, pivot fast, scale fast, attract investment fast etc. There has been a lot of learnings doing heavy cargo movement across the GCC,” he told T&FME. “We have been able to successfully now run offices in two countries, deal with variety of customers and have shipped multiple kinds of products across different kind of vehicles. Over all we are growing at a rapid pace in a measured way and we are very optimistic about the opportunity in the region.” Earlier this year, it was announced that Trukkin will receive an undisclosed amount of funding led by Saudi Arabia’s only large publicly listed logistics and private security company Batic Investment and Logistics Co (BATIC) for a pre-series round. Not only is BATIC one of the largest transporters in the region, it is also at the centre of Saudi Arabia’s modernisation programme and determined to establish itself as the Kingdom’s leading logistics provider. Like Trukkin, it believes leveraging technology is vital to change the traditional model for logistics. Its new partner provides BATIC with the kind of asset-light technology platforms it hopes will transform the sector. “Logistics is at the centre of Vision 2030 as a way to cement the region’s position at the crossroads of important international trade routes, between Asia, Europe and Africa and build a unique regional logistics hub,” said Omar Al Mohammady, CEO of BATIC when the funding was announced. “We have been closely monitoring the traction of the business for the past few months and are very excited about the potential opportunity Trukkin presents in this field. We have tremendous faith in the execution capabilities of its team and are very happy to join hands with them.” Catching up with T&FME, Dalmia says being able to bring BATIC on-board is a demonstration that his company is on the right track. He adds that the investment will enable the company to scale its operations and continue to grow. “BATIC has been in touch from the very SEPTEMBER 2018 TRUCK&FLEET ME 17
INTERVIEW
beginning – from the middle of the last year. They have been our early backers, although silently, and our progress in a quick span of time reiterated their belief in us and hence our partnership was formalised,” he enthused. “The funding helps us to allocate resources in the further enhancement of our platforms and scaling the business in both the regions.” Trukkin’s CEO says the company has other investors looking to join in but the achieving pre-series round of funding is very much a stepping stone for a company that is still in its start-up phase. “We are calling it a pre-series round as, currently, we are only focusing on stabilising the platform and create the right momentum for the scale. With appropriate structure and scale, soon we will be ready for a much bigger round of investment which we are already attracting a lot of attention to.” Life as a start-up is typically volatile but Dalmia says the funding provides stability to the company. “Absolutely, start-ups are like a roller coaster ride. You get highs and lows on a daily basis. Funding is like a fuel for the rocket,” he says. “You need it to make it run faster and grow further. External funding is also a stamp of approval from sophisticated investors that startup is on the right track. A constant review by the investors also helps to keep things in check
I will not say it’s crowded but there is healthy competition emerging. Competition always keeps us on our toes and makes us strive to become better”
REaDy TO DISRuPT? Dalmia, here pictured with fellow director and Aramco veteran Ahmed Ibrahim Alnafie, says Trukkin is focussed on building on its strong start in the KSA and UAE markets.
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and helps to grow in a more measured way.” Drawing a comparison between the sizes of the two companies, T&FME asks Dalmia if there was an opportunity for BATIC to absorb Trukkin and its technology into the larger business. He quickly dismissed this as a likely outcome. “Trukkin is a stand-alone platform and at this stage there have been no talks about going that way. BATIC being a logistic player itself, can add a lot of value in our own learning and scaling of the operation,” he remarks. “But fundamentally, we are two different kinds of operations (we are asset light, they are asset heavy).” With the interview drawing to a close, T&FME asked what was it about Trukkin, compared to some of the other start-ups setting out into the region’s emerging and increasingly competitive techno-logistics scene, that made it an attractive investment for BATIC. “I will not say it’s crowded but there is healthy competition emerging. Competition always keeps us on our toes and makes us strive to become better,” he enthuses. “Our strong on-the-ground focus, our ability to operate in KSA and UAE from the get-go, our performance in terms of numbers (i.e. more than 6000-plus heavy cargo movements across GCC) is what instilled BATIC’s faith in Trukkin.”
a NEW aPP-ROaCh fOR flEETS For the middle man – the fleet operators – there are a huge number of benefits. Raghav Himatsingka, CEO of India’s Truckola recently wrote an article directed at fleets detailing why he thinks that aggregators can ease concerns of rising costs in the industry. “Aggregators can help fleet operators scale their companies profitably without the burdens and complexities of a large fleet operator, but still enjoying all the benefits of scale. Machine learning and AI-based algorithms can assist fleet owners in planning optimal routes for their vehicles, thereby reducing idling time and increasing utilisation,” argues Himatsingka. “Real-time vehicle tracking increases transparency and reliability of service. New age IoT hardware enables predictive and diagnostic analysis like driver behaviour, machine failures, diesel consumption and preventive maintenance. “Cloud-based documentation can eliminate the need for manual paperwork such as lorry receipt, proof of delivery, and paper invoice. In addition to these benefits, the truck aggregators are also able to provide discounts to their fleet partners on all essential goods and services such as diesel, spare parts, consumable oils, vehicle purchase, insurance, and tyres. “Lastly, the fleet partners no longer need to carry the overhead of a sales team as the truck aggregators provide them loads as per their preference. With these benefits, the entire transport value chain becomes more transparent, hasslefree, convenient, cost-efficient, and reliable for everyone involved – be it fleet operators or cargo owners.”
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
INTERVIEW
ABouT PETER BAl Peter Bal is vice president and business unit leader digital customer services at WABCO. He holds an engineering and business administration degree and joined WABCO in 2007 as Chief Information Officer. Prior to WABCO, Peter Bal was responsible for the delivery of technology solutions at SWIFT, a financial, industry-owned cooperative providing messaging services to most of the world’s banks. Previously, he worked at Belgacom, the leading telecommunications company in Belgium, where he was holding a number of senior IT leadership positions. Before joining Belgacom, Peter Bal worked for Alcatel, a global telecommunications equipment provider. He started his career at IMEC, Europe’s leading independent research center in the field of micro- and nanoelectronics. In 2009, his position at WABCO was expanded to vice president, administrative process optimisation. Since May 2017, he is leading the newly created Digital Customer Services Business Unit that is focused at globally growing WABCO’s fleet management solutions business and developing digital services for new customers and applications.
20 TRUCK&FLEET ME SEPTEMBER 2018
INTERVIEW
Making the right choice
WABCo’s VP digital customer services Peter Bal, argues telematics is more than simply buying a product
F
ixed on-board computers or mobile telematics solutions, comprehensive fleet management solutions or specialised apps with limited functionalities – today, the market of telematics and digital solutions for commercial vehicles is very complex. “For fleets it’s becoming more and more difficult to orientate between these options and to determine in every specific case which possibility would be the best from a cost and efficiency point,” Peter Bal, VP digital customer services at WABCO, tells T&FME. WABCO, together with its subsidiary Transics, has set out to uniquely connecting trucks, trailers, cargo, drivers, business partners and fleet operators through some of the most advanced fleet management solutions on the market. Bal claims that as a full solution provider for truck, driver, trailer, cargo and subcontractor management, WABCO’s customers can benefit from a full portfolio of fixed and mobile telematics solutions which are offered by Transics. “They can choose the right solution fitting their specific needs best,” he comments. “To help them finding the right solution, we offer a quick test on our website (www. transics.com). But no matter which solution
fits your needs and regardless the size of your fleet, one thing is for sure: smooth logistic processes are only possible if there is farreaching integration between the telematics provider and other software providers, offering solutions such as freight planning, trip optimisation, payroll software, reporting and analysis tools. Transics premium fleet management solution (FMS) fosters such integration: it ensures a swift and correct flow of information between the Transics system and the applications of software partners, cutting back on administration cost.” With the transport business environment currently highly competitive, new contracts and orders are being fiercely contested. This places larger fleets at an advantage when it comes to investing in new systems and present seemingly insurmountable challenges for smaller fleets. Bal says the company has developed solutions to help smaller operators regain lost ground by launching a new solution suited to their needs. “We are always striving to develop new solutions meeting the demands of the markets. That’s why WABCO recently launched its new fleet management solution TRAXEE which is tailored to the specific needs of small to mid-sized fleets of medium to heavy duty commercial vehicles. TRAXEE is designed
companies should look for a reliable, experienced provider who will cover their needs, guide them through the project and guarantee a long-term relationship”
to support operators who frequently lack the specialist staff of larger operators to coordinate, for example, fleet capacity, driver activity and legal compliance,” he explains. “Our new FMS delivers several business-critical features to help operators track and manage their fleet anytime and anywhere, even from the comfort of their own truck cabin. TRAXEE also enables effective customer and driver communication, as well as supporting operators in meeting legislative and administrative requirements. Designed as an all-in-one app and Softwareas-a-Service model, TRAXEE offers a hosted solution economically priced as of 20 euros ($23) per vehicle per month.” While FMS and telematics systems are intended to help fleets to significantly enhance efficiency, safety and productivity, Bal believes transport companies are often confused and uncertain in their choice. During his talk with T&FME, he explains how they can find the right solution to meet their individual needs and requirements, adding that he wants to provide insight on the current developments within the telematics market. “Companies should look for a reliable, experienced provider who will cover their needs, guide them through the project and guarantee a long-term relationship. Customers have to keep in mind that they are buying
SEPTEMBER 2018 TRUCK&FLEET ME 21
INTERVIEW
a complete solution and corresponding service – not just a product,” begins Bal. “Overall, finding the right solution really depends on the very specific needs of each fleet. Because it is a very different thing if you are transporting high valuable goods across Europe or you are a small fleet owner with a regional focus.” According to Bal, the purpose of telematics should be to help fleets of all sizes to be efficient. “It is the general requirement for all transport companies to work cost-effectively and rapidly. Therefore, relevant data needs to be accessible at any time from any place to keep up with the competition,” he remarks. “For example, a rising number of customers want to keep track of their orders in realtime to flexibly arrange delivery times and consequently expect enhanced transparency from their transport companies. If transport companies want to be attractive for an extended customer base they consequently have to match these rising expectations.” This does not mean companies need to overload their fleets with additional tools, but they can improve the processes that drive their operations. “All required data can be retrieved easily via advanced FMS....thinking of the daily work routine of transport companies, several examples can be given (such as) the digitalised management of documents saves time by enabling a two-way document transfer between back office and trucks guaranteeing a fast administrative process with less paper work. “On top, FMS also contribute to being compliant with regard to legal requirements as they enable an integration of all tachograph data into the fleet management system – from driver authentication to data archiving. They also make it possible to avoid infractions on driving and resting times and meet the legal requirements of tacho card and mass memory read-outs.” Another example for improved business processes due to digitalisation is the possibility of remote diagnostics which enable fleet operators to detect on-board system failure modes early and optimise vehicle maintenance schedules more carefully. “Downtimes can be reduced significantly,” Bal enthuses. “We believe the answer to further increasing cost-efficiency in the transport sector lies in finding one overall integrated solution. And this is what we are doing with modern FMS. Every day we are searching for an optimised way to support our customers in all their needs and also face upcoming challenges.” Bal says as a full systems supplier, WABCO 22 TRUCK&FLEET ME SEPTEMBER 2018
WIThIN IN TouChINg dISTANCE Bal says WABCO believes the transport sector is on the path to finding one overall integrated solution to ensure it remains cost-effective.
can connect trucks, trailers, cargo, drivers, business partners and fleet operators in real time; helping commercial fleets to significantly enhance safety and productivity. He adds that the company can have a pivotal role in progressing the industry’s path towards mobilising intelligent vehicle control systems. “WABCO is at the forefront of harnessing the power of mobile communications and cloud-based solutions. This means we can improve vehicle and driver performance by enabling linkage to – and intelligent use of – captured onboard-systems information,” he says. “Continuously moving forward in this area, WABCO holds a privileged position as the company designs, manufactures and controls most of the key systems on-board trucks. As a result, WABCO is uniquely positioned to collect, analyse and understand this data and provide it to relevant industry stakeholders.” As the importance of digital solutions in transportation steadily increases, Bal believes that telematics systems will retain a vital position in their development. “Connectivity is the name of the game these days. By connecting devices, systems, etc. with one another, a wealth of real-time information and, consequently, actionable insight becomes available to many different stakeholders – ready to enhance
a rising number of customers want to keep track of their orders in real-time. if transport companies want to be attractive for an extended customer base they consequently have to match these rising expectations”
decision-making and improve operations. Forward-looking transport and logistics companies integrate connected telematics units to provide insight into the current activity status of their trucks, trailers and drivers, as well as in technical data such as temperature, door opening or fuel level. He continues: “While you might suspect that such FMS are a basic requirement, the reality is that today only around 18% of commercial vehicles in the EU and 9% of trailers are equipped with telematicsrelated fleet management systems. There’s still a lot of room to improve the efficiency of fleets by connecting truck, trailer, cargo, drivers and subcontractors. “Digitalisation is the trending topic affecting all branches and industries around the globe. Undoubtedly it also leads to great challenges and opportunities for the commercial vehicle industry. And this is not only about a fast internet connection or about providing all drivers and fleet managers with a mobile device. Digitalisation reaches far beyond this.” In order to keep up with competition, relevant fleet data needs to be accessible at any time from any place. Understood correctly, fleets can potentially achieve effective cost management, compliance, sustainability, customer satisfaction, safety targets and many other goals – “basically everything,” he adds. “But most of today’s generated data is not even used to its full potential!” Exclaims Bal. “This raises the question of how all this data can be maximised in new services and solutions. That is why WABCO has founded its new business unit Digital Customer Services. Its task is to find new ways to use big data and the new digital technologies for increasing the efficiency of transport companies and their fleets.” Systems that can talk to each other will not only gain further importance in the future, they will become standard, Bal argues, adding that the industry is only beginning to realise their full potential. “The potential is vast ranging, from advanced collision avoidance to the simplified finding of parking spaces. In conjunction with the Internet of Things, vehicles will communicate with each other as well as with infrastructure,” says an enthusiastic Bal. “Due to increased connectivity, vehicles will become more intelligent, while the infrastructure and characteristics of road traffic will change and pave the way for automated driving. We are on the road towards a connected, digitised world – an amazing world with huge potential and an enormous impact on our all daily life.”
AUTONOMOUS HYUNDAI XCIENT demonstrates cargo delivery Hyundai Motor Company Completes South Korea’s First Domestic Autonomous Truck Highway Journey
Hyundai Motor Company has completed South Korea’s first domestic highway journey with an autonomously navigated semi-trailer truck. Hyundai’s Xcient truck drove approximately 40km on the highway. This was semi-equipped with a Society of Automotive Engineers (SAE) standard Level 3 autonomous driving system, enabling it to steer, accelerate or decelerate, and maneuver through traffic, all without human input. A human driver was on-board to take over manual control when required.
Autonomous Truck Technology 10 different sensors, including 3 front and side-rear cameras, 2 frontal and rear radars, 3 Lidars in the front and sides, and a hitch angle sensor in the trailer coupler which computes the change in angle between the truck and trailer in real-time, allowing the truck to be safely stabilized upon sharp turns. A new steering control system (MAHS : Motor Assist Hydraulic Steering) developed by Hyundai Mobis was also implemented, providing a precise steering mechanism that controls the steering angle depending on the decision made by the electronic control unit. This minimizes the effort required to steer the vehicle, reducing driver fatigue.
Innovation in Trade Logistics Industry Autonomous trucks maximize efficiency by maintaining the most efficient speed and velocity, reducing fuel costs, which make up one third of long distance delivery costs, and thereby lowering the vehicles carbon footprint. In the distribution industry, when multiple trucks travel in a convoy all vehicles precisely follow the path of the leading vehicle. Hyundai is currently investing in truck platooning technology that will enable this process to continue with autonomous vehicles, which it plans to complete by 2020s.
Safety Hyundai Motor is actively working to prevent accidents and minimize related damage by implementing next-generation driver assistant systems into large-sized trucks and buses currently being sold in the market. The company offers options such as Forward Collision-Avoidance Assist (FCA), Smart Cruise Control (SCC), and Lane Departure Warning (LDW) in its Xcient model, and applied FCA and LDW as default options in all models of Hyundai Universe.
trucknbus.hyundai.com www.facebook.com/hyundaiCV
Partner in Every Way. Hyundai TRUCK & BUS
FEATURE
Tried and TesTed
T&FME talks to UD Trucks and learns why the new Quester puts the driver first
L
ike many other countries in the developed world, the transportation industry in Japan is facing a major dilemma: there simply isn’t enough drivers. Long gone are the days where getting behind the wheel of a Japanese-branded truck was considered a badge of honour and transport companies are facing the challenge of having to rely on an ageing cache of drivers for a deceptively physical role. One of its leading truck manufacturers UD Trucks is tackling the problem head on and deliberately designing its latest generation of heavy vehicles with the intention of making driving an attractive vocation for young people, including the
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un-tapped potential of a female workforce. UD wants to prove that driving one of its vehicles can be less demanding while putting state-of-the-art technology at the finger-tips of drivers. At last year’s Tokyo Motor Show it was given the opportunity to unveil its progress with the launch of a new version of the Quon at arguably Asia’s major motoring event. The latest Quon, which is a close relative of the Quester (more on that later), has been given a completely redesigned cabin by UD and a re-worked ESCOT transmission – the ESCOT VI – where its gearshift speed and efficiency have been reprogrammed to reduce fuel consumption and improve driver comfort. Upgrading the ESCOT system has led to other nice
Our strategy is simple. We will provide a truck that must be suitable for each market and what each market needs today”
and soothing touches for distressed drivers too, including the Escape function which through a simple press and release of the accelerator pedal will rock the vehicle to get out of difficult ground conditions. Meanwhile, Foretrack, constantly learns the typography of the road the truck is driving, and on second trip automatically optimise the speed and gear-shifting, so the vehicle travels in the most fuel-efficient way possible. “The driver just focuses on steering the truck. The function works under ECO mode with Cruise Control activated,” says Akira Mutou, feature test engineer for Driving Performance and Fuel Econom. “The truck knows when and how much to accelerate, when to use engine break and exhaust break to control the speed, reaching maximum fuel
FEATURE
efficiency driving the second time on the same route. It’s a complex system that works with the GPS and ESCOT-Roll; we did a lot of testing on the road to prove its reliability.” Any casual observer of the trucking industry will be aware of the movement towards smart logistics and more intelligent vehicles, but Kenneth Haggas, VP brand marketing at UD Trucks, explains that, while UD’s newest vehicles have their share of advanced technology, the company is deliberately focusing on the basic challenges facing fleets. Even within the Volvo Group that UD Trucks belongs, the Japan-based company is prepared to stand apart to focus on the core needs of its customers, it seems. “Everybody else is talking only about electro-mobility – and we have that
if you want to have smart logistics in the country you need to have skilled drivers. Otherwise you cannot have it”
together within the Volvo Group and our own product pipeline – but we are also asking what is the biggest challenge in transport today? And, as always, it is business efficiency and profitability,” he remarks. “There’s always a cost pressure in transport for our customers. But then there is also more pressure to be safer and cleaner on the society side. “And then there is the lack of skill drivers...one of our customers in Japan told us if he had just another driver he could get more business tomorrow. What we do is provide the smart and modem products and services so our customers can do more. But it’s not only about products and services, right? If you want to have smart logistics in the country you need to have skilled
drivers. Otherwise you cannot have it.” Taizo Matsuo, VP for product offer at UD Trucks says that the driver shortage in Japan could be alleviated if more company’s could encourage female drivers. “There are very few female drivers – less than 2%,” he says. “The male drivers are getting older, so it means that the transporters are finding difficult to get professional drivers.” He adds that as the industry shifts from manual to automatic transmissions, more female drivers could be encouraged to join transportation companies. UD Trucks, he feels, has the right engineering to help those companies looking to widen their recruitment net. “Our AMT (automatic transmission)
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FEATURE
behind the development of the new variants. “The launch of the 40t Quester with 24in tyre was personally done by me because I know they (transporters) carry 80% on road and 20% off road,” he says before he signals his astonishment at the demanding nature of driving heavy vehicles in the region with a single gasp: “….Wooo!” Pausing to smile, he utters words that link back to those of UD Truck’s founder Kenzo Adachi in 1935 who said the company must always make “the truck the world needs today”. “Our strategy is simple. We will provide a truck that must be suitable for each market and what each market needs today,” he says still smiling. UD Trucks tested the new vehicles for a year in the region ahead of their launch this Spring. The new models boast reinforced front suspension, higher ground clearance
ESCOT VI, can provide very efficient, economic and safe driving,” he enthuses. A 40t launch in the Middle East
Two years ago, the Quon’s international counterpart, the Quester, was first launched into the Middle East, East and North Africa territories. It is a truck range that was designed, sourced and manufactured with customers in the Middle East and other growth markets high in the minds of Matsuo and UD Trucks’ engineers. UD Trucks recently launched 40t versions of truck in the UAE; it is a move, the truck-maker says, that completes its range in the region. Built for heavy construction, both the Quester 6x4R-40 Tons and 8x4R feature a hub reduction, and are intended to meet the very many different requirements of drivers in the region. Matsuo reveals he was
There’s always a cost pressure in transport for our customers. But then there is also more pressure to be safer and cleaner”
and an 11-litre engine (GH11E) based on the Volvo Group’s technology. Features such as fuel economy, payload, robustness and a wide range of applications, are intended to not only to meet the different needs of customers across the region but to also extend the uptime of the truck. “We don’t want to compromise,” adds Haggas. “It is very common that you develop a truck for Japan and then you take it abroad and you have to compromise. But we are making trucks that fit with many different aspects of these growth markets. That’s why we have a strategy where we have a Japan and international truck.” “Some technology, like the engine, are the same, but for international markets we have a menu of Euro 3 to Euro 6 for customers,” adds Matsuo. “For any kind of requirement. We are ready.
UD lAUnchES nEw hEAvy conSTRUcTion TRUckS in REgion According to UD Trucks, the new Quester 6x4R-40 Tons and 8x4R trucks with hub reduction are designed for heavy construction enables it to complete the heavy-duty Quester range. “We are very excited about the arrival of the Quester 6x4R-40T and 8x4R which
complete the Quester model range line-up. The Middle East conditions are tough, with the varied terrain, high temperatures and payloads. To ensure the new models meet the needs of our customers, we tested the model in real conditions for over a year. We are confident
oUT on ThE RoAD AnD oFF-highwAy To ensure the new models met the region’s demanding environment, UD Trucks tested the new Quester in real conditions for over a year in the Middle East.
26 TRUCK&FLEET ME SEPTEMBER 2018
that the now complete range of Quester with its proven fuelefficient engines and UD Trucks quality – will set new standards of efficiency in the Middle East and other growth markets”. According to UD Trucks, the new Quester range is: “robust and strong, utilising a
combination of global technology and Japanese craftsmanship. The new range combines the best of three worlds; UD’s heritage of Japanese craftsmanship and customer care, Volvo Group’s global technology and aftersales know-how, and cost efficiency through local know-how.”
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How to CHoose tHe rigHt tire
C
Giti Tire shares advice on finding the right tire patterns for your fleet
hoosing the appropriate tire pattern is one of the most important things you can do to maximize the efficiency, longevity, safety, and cost per km of your fleet. To achieve this, a number of factors should be taken into consideration! 1. Understanding your vehicle type is the first step to choosing the correct tires.
Based on the type of vehicle and wheel layout (4x2, 6x4, etc.), certain tires may be more appropriate. 2. Selecting tires for the correct axle is vital.
Each axle has specific purposes, wear amounts, and needs… and must be treated accordingly! • Steer (front) axle - focused on steering with rib tire pattern • Drive axle - focused on
moving the vehicle with block tire pattern • Trailer axle – focused on stability with rib tire pattern 3. Being aware of the vehicle’s application is very important and often not taken into consideration enough.
Giti Tire defines application/ usage into the five following segments: Long Haul: • Heavy loads and high speeds for an extended period of time • One-way travel distance generally exceeds 500 kms (based on highways) • Annual vehicle mileage is 130,000-325,000 kms • Average speed of 80100 kms at full load Regional: • Medium to heavy loads, frequently on 2-lane roads, generally returning to base at night • One-way travel distance
between 100-500 kms (may include 1-2 km of rough/muddy roads) • Annual vehicle mileage is 50,000–130,000 kms • Average speed of 5080 kms at full load Urban: • Stop and go delivery service within a limited metro or suburban area • One-way travel distance <50 kms (only urban roads) • Annual vehicle mileage is 30,000–95,000 kms • Average speed of <50 kms at full load Mixed Service: • Heavy loads and slower speeds, operating on a mixture of secondary and aggressive road services • One-way travel distance between 100-300 kms (~80% on-road/20% off-road) • Annual vehicle mileage is 15,000–115,000 kms • Average speed of <50 kms at full load
BUS FlEET ConSidERaTionS and GiTi Bus fleets take a special focus and attention requirement, due to the need to carry a large number of people comfortably, safely, and with high-efficiency.
Off-Road: • Very heavy load normally on poor or rough road surfaces, may have 50% or more overloading • One-way travel distance is around 50 kms (~20% on-road/80% off-road) • Annual vehicle mileage is 15,000–36,000 kms • Average speed of <50 kms at full load 4. Here are some additional factors to consider when selecting tires for your fleets:
• Select based on weight when fully loaded and the loading index • Understand the speed of the vehicle when fully loaded and select from the speed index • Know the weather conditions and choose the appropriate tire type (i.e. all-season, summer tire, snow tire) • Understand the tire size and rim size and match appropriately Hopefully these tips have provided some key ideas to consider when selecting tires. Giti Tire sales and technical reps are available to provide expertise and customized solutions based on your exact needs, so that you don’t need to worry about these all by yourself! Check back in next month’s issue to learn more about selecting the correct ‘shoes’ for your truck or bus, and why consistent size, axle, and positioning of your tires is so important.
did YoU KnoW? For each 100km your truck travels on 12.00R24 tires, each tire rotates roughly 27,000 times! So if you travel 100,000km a year? You do the math… Ok, we will tell you that it’s
27 Million TiMES. Invest wisely in your tires. They do more work than you think!
SEPTEMBER 2018 TRUCK&FLEET ME 29
WORKSHOP
THE BiG 5 HEaVy BacK iN NOVEMBER / acDELcO NEW cOOLaNTS MaGNa STEPS UP PRODUcTiON / HONEyWELL LaUNcHES NEW HaNDHELD
workshop
The Big 5 Heavy returns to main event SEcOND BiG-5 HEaVy aNNOUNcED FOR 2018 iN DUBai EVENTS Organiser says growing demand for heavy equipment and creating one consolidated construction event the reasons behind second edition this year The Big 5 Heavy, the Middle East’s dedicated heavy construction equipment and machinery exhibition, will be held for the second time this year, running alongside The
Big 5 2018 from November 26-29, organisers dmg events have announced. According to dmg events, the move to host the Big 5 Heavy along with the Big 5 aims to establish an international mega event in Dubai, catering to the needs of the entire construction community. The two exhibitions will be co-located at the Dubai World Trade Centre with the BacK TO DUBai The Big 5 Heavy along with the Big 5 aims to establish an international mega event in Dubai
Middle East Concrete (MEC), The Big 5 Solar, HVACR Expo and the Urban Design & Landscaping Expo, all part of The Big 5. Richard Pavitt, event director The Big 5 Heavy, said: “The success of The Big 5 Heavy this year shows a growing demand for PMV, commercial vehicles, foundations and geotechnical, quarrying and mining, road construction and site equipment in the region. “We’re therefore delighted to announce that the show will now feature as part of The Big 5, the region’s largest construction event. The introduction of The Big 5 Heavy will create one mega construction event for the industry to source products for the construction cycle, from concept through to completion, under one roof.” The Big 5 Heavy last took place in March this year along with Middle East Concrete (MEC), which also returns to The Big 5 in November. Dedicated entirely to the concrete industry, MEC will host over 100 concrete exhibitors and four days of education led by The American Concrete Institute, PCI and Precast For All.
coolants heat up acDelco range
cOOLaNT
ACDelco says it has increased its range of coolants and redeveloped them specifically to help prevent summer overheating in the region. Covering a significant proportion of car marques, ranging from American to European and Asian brands, the ACDelco range of coolants now comprises two new product lines, the new ACDelco Engine Protector Coolant and the ACDelco Classic Green Coolant, developed to provide protection to car engines all year round. ACDelco added that it is competing on quality and price in a region that is estimated at a combined value of $108 million for Tier I, Tier II and Tier III coolant product range. “ACDelco offers an extensive array of 90,000 high quality products across 37 categories, including the newly developed engine coolants,” said Mohammed Al Fayyad, customer care and aftersales director for General Motors Middle East.
iNSiDE THiS MONTH’S WORKSHOP: WHaT’S LiNED-UP FOR ViSiTORS aT THiS yEaR’S BiG TRUcK SHOW iaa, acTiVE SaFETy GETS aFFORDaBLE aND MORE! 30 TRUCK&FLEET ME SEPTEMBER 2018
WORKSHOP
HONEyWELL iNTRODUcES NEW RUGGED HaNDHELD
Magna tyres Doubles proDuction capacity
TyRES
Off-the road (OTR) tyre manufacturer Magna Tyres has nearly doubled production capacity at its Hardenburg factory in the Netherlands six months after opening the facility earlier this year. The Dutch manufacturer, which is among the leading brands for OTR, mobile crane and other construction equipment tyres in the Middle East, announced that the expansion was necessitated by the growing demand for its 26.5R25 and 29.5R25 OTR sizes. Magna Tyres opened the Hardenberg factory in January to produce heavy-duty off-highway lines in the MA02 grader/loader, M-Terrain articulated dump-truck and AG24 agricultural line segments. The company has production bases in Taiwan and China, apart from its home base in the Netherlands and supplies tyres to the Middle East construction equipment and off-highway sector from all its plants. “New capacity has since been added to keep up with demand for the new sizes. OTR tyres are working at several mines and quarries around the world, including the Middle East in KSA, the UAE and other countries,” said Vijay Nambiar, GM, Middle East and Africa at Magna Tyres. “The Middle East is one of the largest global regions for Magna in terms of revenue, and we have seen a rise in demand for our products in the region with several recent successes, such as a deal with GCC crane services major Al Faris to supply the tyres for their mobile crane fleet.” With the expansion Magna seeks to sustain its success in the region by increasing supply of its 29.5R25 Magna MA02, an E3+/L3+ tyre for wheel loaders, dumpers and dozers.
LOGiSTicS Honeywell has launched a new rugged handheld computer device in the Middle East that enables workers in the distribution and logistics, and field mobility fields to use it in demanding environment for quick data handling and input. The software-industrial giant said the Dolphin CN80 handheld computer, which runs the AndroidTM operating system, is designed for tough environments, including distribution centres, field applications such as pickupand-delivery and direct store delivery, and offers options for cold storage or hazardous locations. Built and operated on the company’s Mobility Edge Platform, the Dolphin CN80 is a hybrid device that incorporates both a traditional keypad and a large touchscreen interface. “Workers in distribution centres or out in the field rely on their mobile devices to provide rapid
data entry at high transaction rates,” said Miroslav Kafedzhiev, vice president, META, Honeywell Safety and Productivity Solutions. “For many of our customers who work in challenging locations in the region, or who have applications that rely on keyed shortcuts to speed data entry, a physical keypad remains a popular option for capturing mission-critical information.” The new device features a 4.2in touchscreen display along with a choice of either a numeric or a QWERTY keypad. In addition, it features enhanced 1D and 2D scanning/data capture options with the ability to read bar codes from as close as 6in to as far as 50ft. Its ultra-rugged design has the ability to withstand multiple drops onto concrete from 8ft and 2,000 tumbles from 3.3ft. Battery life is also designed to be strong to support long shifts, extended talk-times and heavy GPS usage.
SKyjacK iNTRODUcES NEW SaFETy SySTEM WaREHOUSiNG
Powered access major Skyjack has introduced its Secondary Guarding Lift Enable (SGLE) system, a new solution for secondary guarding of scissors and vertical mast lifts. According to the manufacturer, the launch is the result of growing awareness and interest in the market in safety at heights, especially
through incorporating secondary guarding systems for mobile elevating work platforms (MEWP). A statement from Skyjack said: “Industry groups have recently suggested possible circumstances, conditions and operations that might result in inadvertent contact with obstructions and consequently an entrapment hazard. As a result, a
GOiNG VERTicaL SGLE is suitable for all Skyjack vertical mast lift and scissor lift models. It is available directly installed from the factory or as an aftermarket accessory.
form of secondary guarding is now being requested on scissor lifts and vertical mast lifts by some equipment users. So, we introduced SGLE.” With a strong control box shroud, the SGLE system allows for additional guarding of controls, which reduces the risk associated with unintended actuation. A secondary anti-tamper enable button is located on the side of the control box. The operator must activate both the joystick and the secondary enabler to lift the platform. Releasing either control stops the elevate function immediately. With two-handed operation required to lift the platform, the operator’s body is also maintained in an upright position and away from the railings, which lowers the risk of entrapment. Lowering the platform or driving it on its wheels or tracks requires use of only the joystick, with the secondary enable button not used for these functions. SGLE is suitable for all Skyjack vertical mast lift and scissor lift models.
SEPTEMBER 2018 TRUCK&FLEET ME 31
FEATURE
FRoM PREMiUM DownwARDS Only available in premium cars until relatively recently, increased consumer awareness has resulted in an increase in demand for active safety systems.
ACTIVE PURSUITS
Aptiv’s Glen De Vos looks at why active safety systems makes driving safer than ever
I
n 1999, Aptiv (then Delphi) put the first radar on a car. Ever. It was a 1999 Jaguar, and we joked that if you bought the radar, you got the car for free. With that first system, we took a technology from aerospace and put it on a car. It was a revolutionary break-through, and is one that has since saved countless lives. But, as the joke implies, it was very expensive at the time. That’s how it goes with most technology when it’s first introduced – expensive and only available on premium or select vehicles. But over time as the technology proliferates, production volumes increase, and continuous improvement in the technology makes its impact, prices invariably come down. Just think of flat-screen TVs. When they were first introduced, they were astronomically expensive. Now, flat-screens are norm and affordable for all market segments. We call this phenomenon 32 TRUCK&FLEET ME SEPTEMBER 2018
the democratisation of technology – a progression in which the tech becomes available and affordable to all. The phenomenon is no different with automotive technology. When the radar was introduced to the automotive space, it was a radical leap forward from the anti-lock braking and traction control systems that represented the early steps in ‘active safety’ technology. It also represented a completely different approach from ‘passive safety’ systems – e.g. seatbelts and airbags, where the technology worked to keep passengers protected during a crash. Now, we have technology that proactively helps prevent crashes. Roads have become more crowded, drivers more distracted, and people are causing more accidents. According to NHTSA, 94 percent of accidents are directly related to human error. And a staggering 1.25 million deaths annually
Just a half-second can mitigate 60 percent of accidents – and that half-second is exactly what active safety systems can provide”
are caused by vehicles, according to the World Health Organization. That means every 30 seconds, someone dies in a car accident. Just a half-second can mitigate 60% of accidents – and that half-second is exactly what active safety systems can provide. Technologies like adaptive cruise control, which adjusts the speed of your car if the car in front of you slows down, lane keeping systems, which alert you if you start to veer out of your lane, and emergency braking, which stops your car even if you don’t – can all decrease the severity of crashes or prevent accidents completely. The Aptiv active safety system engages a full brake intervention on this truck and prevented a rear-end collision. The automatic emergency braking (AEB) technology reacts faster than the driver, giving him that extra half-second, in a traffic scenario that drivers encounter daily. In a real-life example, the AEB can
FEATURE
DEMocRATiSATion oF TEchnoloGy Largely due to mandated regulations in the US and EU, advanced safety technology is broadly available accross the globe.
perhaps even prevent a tragedy; when you consider the size of a truck, the size of a small car it is about to hit and the speed at which vehicles travel on highways. Until recently, most of this technology was only available on premium cars, and was out of reach for most people. However, an accelerating pace of innovation over the past decade, and ever-growing initiatives in vehicle automation and autonomous cars, has led to raised awareness of driver safety and assistance systems. Increased consumer awareness has resulted in an increase in demand for these active safety systems. As the technology has been installed on smaller cars, which are in higher demand on a global basis, the adoption and use of the systems has further accelerated. Today, cars with Advanced DriverAssistance Systems (ADAS) generally
94 percent of vehicle accidents are directly related to human error. And a staggering 1.25 million deaths annually are caused by vehicles”
have anywhere from two to ten sensors working to protect their occupants. In order to try and decrease accidents, some governments have been increasing mandates, which has also driven a proliferation of these technologies. For instance, the European Union has mandated the automotive manufacturers to fit ADAS such as lane departure warning systems (LDWS) and autonomous emergency braking systems (AEBs) in all heavy commercial vehicles weighing more than 7,000kg. Also in Europe, to achieve the NCAP’s highest five-star rating, a car must have active safety systems. In the US, all new cars must have back-up cameras, and 20 automakers have agreed to make AEB standard on all new vehicles by 2022. All this has fuelled market growth and reduced costs – it’s the democratisation of technology at work. Now, just like those flat-screen TVs, active safety technology is broadly available in markets around the world. In China, a 2006 Cherry QQ didn’t even come with the option to purchase active safety systems. Now, driven by consumer demand, the 2017 Cherry Tiggo 7, comes standard with airbags, ABS (anti-lock brakes), ESP (electronic stability protection), adaptive cruise control and auto braking. We’ve come a long way since that first radar on the Jaguar, and we’re now working on our eighth-generation of radar. Aptiv’s innovation in active safety have been core to the growth in the industry and have helped fuel consumer appetite for the technology. Our safety-enhancing solutions have been finalists 14 times in Automotive News PACE Awards, an award recognizsed around the world as the industry benchmark for innovation – five of those winners. Additionally, we have increased our customer count from five global automakers in 2015 to 20 in 2020. At Aptiv, we’re proud to be an integral part of the democratisation of active safety systems. We see a monumental increase in the proliferation of these technologies globally ahead of us, which we hope will lead to an equally monumental decrease in accidents and deaths involving vehicles. On a personal note, when I take my family, my wife and three sons, on road trips (a frequent occurrence in the summer), I do so with the knowledge and comfort that, thanks to the active safety systems already installed in the global fleet of vehicles, we are already safer now than we have ever been. I can’t imagine getting on the road with that precious cargo without that protection. Glen De Vos is Aptiv’s chief technology officer and president, Mobility and Services Group
MoBiliTy now Cities are becoming the epicentre for mobility innovation – and for good reason, says Aptiv’s Manu Namboodiri, Smart Cities and Connected Vehicles. Mobility is the lifeblood of any city. It enables the movement of people, goods, and thus ideas, social interactions, and resources. Mobility is what makes a city liveable and an attractive place to live. Cities today, however, face massive challenges in improving mobility. If you ask any city mayor, planner or transit official, he or she can reel off multiple challenges such as safety, congestion, environmental concerns, and equitable access for all. Increased population growth in cities means that by 2050, congestion and thus commute times could increase threefold, costs of transportation could increase fourfold, and emissions could rise to five times the current levels – if timely steps are not taken to address them. Autonomous technology has the potential to address most of these challenges. In fact, studies have shown that autonomous technologies can reduce urban travel time by 30%, bring down emissions by 66%, and lower the number of required parking spots by 44%. The most valuable impact autonomous vehicles can have in cities, however, is in the safety of its residents. Globally more than 1.5 million people die in traffic-related accidents annually. In addition to the incalculable cost to human lives, this is a significant drain on city health and emergency services. Autonomous technology has the potential to reduce traffic accidents by nearly 90%, this is why progressive cities are planning for connected and autonomous vehicles by deploying upgrades including vehicle-toinfrastructure technologies and smart traffic signals. The cities that best handle these mobility challenges will provide a better quality of life, and thus attract more residents, capital, jobs, and opportunities.
SEPTEMBER 2018 TRUCK&FLEET ME 33
FEATURE
In safe Hands Why is Bosch looking to the skies for its next level autonomous tech?
H
aptic sensation when driving is something that shouldn’t be underestimated. What condition is the road in, how well are the tires gripping? Having or developing a feeling for this can help drivers handle their cars appropriately and safely. Race drivers already have a word for it: seat-of-thepants feel. They mean the contact between the seat of their pants and their driving seat, which allows them to feel the state of the road surface. Automated vehicles also urgently need information about road conditions. Unfortunately, however, they don’t have any feeling for such conditions – or haven’t up to now. Bosch has developed a system that gives automated vehicles seat-of-the-pants feel. “Wet roads, snow, ice – with our predictive road-condition services, we alert to hazards
34 TRUCK&FLEET ME SEPTEMBER 2018
before critical situations can develop. We are helped here by the weather data provided by our partner Foreca. This means an automated vehicle will know exactly where it can drive autonomously, and how,” says Bosch management board member Dr Dirk Hoheisel. Foreca is one of the world’s leading providers of weather information, with two decades of experience in predicting road weather conditions. “Combining the expertise of Foreca and Bosch will lead to a new era of road-condition forecasting. Unlike weather forecasts in the media, the Bosch road-condition services take multiple possible forecast scenarios into consideration,” says Petri Marjava, Foreca’s sales director. The road-condition services boost driving safety and smoothness. In addition, the availability of automated driving functions is increased. The Bosch services package is
Unlike weather forecasts in the media, the Bosch roadcondition services take multiple forecast scenarios into consideration”
to be rolled out worldwide in 2020, initially on the basis of weather data. As more and more connected cars appear on the roads, the service will be augmented by vehicle data. Up to the highly automated SAE level 4, the decision as to whether a car can assume the task of driving depends on factors such as road type, speed range, and environmental conditions. In future automated vehicles, this decision will also be based on the predictive road-condition services provided by Bosch. Thanks to their help, the automated vehicle will know in good time what environmental conditions to expect. This means it will have plenty of time to adapt its driving style, instead of having to hand over the driving task to the driver at the first sign of impaired road conditions, however minor. If the vehicle’s route takes it through rain, it will adapt its speed well in advance to a level
FEATURE
that excludes any risk of aquaplaning and allows it to stop safely at any time. Whatever the SAE automation level, the result is a safe drive that is also smooth and comfortable. For its predictive road-condition services, Bosch is relying on a multiphase concept. By the time of its planned launch in 2020, it cannot be expected that there will be a sufficiently large proportion of connected vehicles on the roads. Bosch estimates it would take some 20 million connected cars to cover the roughly 80,000 kilometers of freeway in Europe alone. For this reason, road-weather forecasts will initially be the only reliable source of information for drawing sound conclusions about road conditions, especially in rural areas where there is less traffic. Bosch will get the constantly updated global road-weather data it needs for this from Foreca. Bosch’s thorough examination of several leading providers showed that the Finnish weather experts were the most accurate road-weather data provider globally. The more precisely hazardous conditions can be predicted and localised, the easier it will be to keep the availability of automated driving functions to a maximum. Thanks to a worldwide reference measuring fleet and machine learning
MAchinE-lEARning goES MoBilE Bosch and Foreca will use machinelearning and data to eventually pave the way for safe autonomous driving.
methods, Bosch and Foreca have jointly been able to optimise the safety and availability of the road-weather models. In this way, the two companies have achieved a safety standard of the kind that will be necessary for lifecritical systems such as automated driving. As a sufficient number of connected vehicles take to the roads, Bosch will supplement its predictive road-condition services with vehicle data. These data will include information stored on the CAN bus, the vehicle’s central data network, such as the temperatures measured inside and outside the vehicle, and whether the windshield wipers
an automated vehicle will know exactly where it can drive autonomously, and how”
are in use. Thanks to connectivity, this data will not remain unused in the vehicle, but will find its way into the Bosch cloud via the respective automaker’s back-end server. In addition, Bosch will evaluate the regular interventions by the ESP anti-skid system. Using mathematical methods, engineers can measure the friction coefficient of the road surface at each individual wheel, as well as the status of each wheel. When all these data are combined and intelligently evaluated, the result is a package of smart Bosch services – and the comforting feeling of being in safe hands.
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SEPTEMBER 2018 TRUCK&FLEET ME 35 16.05.18 09:38
EVENT PREVIEW
IAA: MobIlIty on the Move The world’s biggest truck show returns
D
igitisation, connectivity, automated driving and alternative powertrains are the drivers of innovation in commercial vehicles. These topics are the focus of the 67th IAA Commercial Vehicles, which will be held in Hannover later this month. The international press workshop, held ahead of the world’s most important trade show for transport, logistics and mobility in Frankfurt am Main, attracted a collection of high-level representatives from the commercial vehicle industry as well as more than 120 international journalists Bernhard Mattes, president of the organisers German Association of the Automotive Industry (VDA) told the gathered audience that the digitisation of traffic opens up completely new opportunities for making mobility smoother and more efficient in large metropolitan areas and beyond. “That reduces emissions. Most
36 TRUCK&FLEET ME SEPTEMBER 2018
importantly, digitisation, connectivity and automated driving will bring about a quantum jump in road safety, ” he related. Furthermore, he argued that digitisation can contribute to even better connection of the various transport modes within the transport and logistics chains: “This is necessary because we need the interplay of all types of transport in order to cope with the increasing volumes of freight,” Mattes explained. The VDA president drew attention to the advantages of digitisation, using platooning as an example. “The Truck Platooning Challenge has proved the technical feasibility of platooning. Now it is being tested in real-life logistics operation. We find that it can reduce fuel consumption and CO2 output by up to 10%. The next step is now to deploy mixed platoons with trucks from different makers. That will ensure the general applicability of the approach.” Mattes emphasised: “One essential prerequisite for digitisation is the existence
Innovative mobility will only be possible if there is coverage with the latest mobile communication tech on trunk and less major roads”
of an appropriate digital infrastructure. Innovative mobility offers will only be possible if there is coverage with the latest mobile communication technology on federal trunk roads and in the network of less major roads.” Electric mobility will again also be a key theme at the IAA, Mattes underscored. There are many openings for deployment, particularly for vans and urban buses but also in local distribution using battery-electric vehicles up to 26t. However, the possibilities must not be overlooked that are offered for especially environmentally friendly transport, for example by natural gas, particularly in metropolitan areas. Mattes added: “E-fuels synthesised using renewable electricity open up the prospect of completely CO2-neutral operation also for trucks. Moreover, they exert their effects not only in newly registered vehicles, but throughout the vehicle fleet. That brings about considerable CO2 reductions.” The VDA president stressed the industry is facing important political
EVENT PREVIEW
preparations in climate protection policy. “The commercial vehicle industry wishes to make its contribution in this area. Yet the manufacturers cannot overcome the challenges on their own. An integrated approach is necessary involving vehicle production, vehicle use, fuels and the infrastructure in equal measure.” According to Mattes, considerable progress had already been achieved in reducing fuel consumption and CO2 output: “Since 2000, CO2 emissions from road freight traffic in Germany have fallen by 8% – despite the increased volume of traffic – while emissions per tonnekilometre have come down by a whole 35%.” He went on to say that fuel consumption accounts for over a quarter of the total costs of ownership for a long-distance truck. Unlike the market for passenger cars, the market for commercial vehicles is driven solely by efficiency. “Low consumption is therefore an important competitive advantage on the market. So, it is right that the European Commission
the digitisation of traffic opens up completely new opportunities for making mobility smoother and more efficient in lareg areas and beyond”
(EC) is endeavouring, in close cooperation with the commercial vehicle industry, to further improve market transparency at this point. The simulation tool VECTO, which delivers “official” comparable values for consumption and CO2 output, is an appropriate instrument for this,” Mattes said. The VDA president took a critical view of the EC’s proposal for the first CO2 Regulation for heavy-duty commercial vehicles: “The industry supports a realistic regulation in principle. However, the Commission’s draft is totally out of proportion.” He explained that the EC has proposed CO2 reduction targets of 15% by 2025 and 30% by 2030. These targets are roughly double those that the industry considers very ambitious, but still feasible. “Furthermore, the penalties for missing the targets are exorbitantly high and almost arbitrary,” Mattes emphasised. “We also take a critical view of what the EC proposed in the second mobility package for the CO2 fleet-wide limit values applicable to passenger cars and vans. The projected 30%
ThE 67Th IAA CoMMERCIAl VEhIClES EVENT The 67th IAA Commercial Vehicles (with the slogan “Driving tomorrow”) will take place in Hannover from September 20 to 27, 2018. The New Mobility World (NMW) area will focus on connected and automated driving, alternative powertrains, urban logistics and transport services. NMW will give these five important topics a dedicated platform where decisionmakers and designers provide information on how traffic, mobility and logistics can become more efficient, greener and smarter.
SEPTEMBER 2018 TRUCK&FLEET ME 37
EVENT PREVIEW
reduction by 2030 is already very ambitious for passenger cars. For vans, this value is just not realistic,” Mattes pointed out. First, he explained, there are many different types of vans whose construction also varies widely – resulting in differences in consumption. So it is likely to be difficult to implement a standardised CO2 value. Second, the potentials for electrification also vary tremendously. “And third, new technologies are generally only introduced in light commercial vehicles after they have demonstrated their benefits in passenger cars.” He emphasised that: “The European Parliament and the Council of Ministers are now called on to make adjustments in order to find an approach that will indeed still be ambitious, but which above all must also be realistic and appropriate in practice. Brussels is oversimplifying the issue if it merely transfers the reduction rates for passenger cars to the CV sector, which is different in nature. The guiding principle for any CO2 Regulation must be the basic principle of technology neutrality. We must be able to exploit all the potentials.” The markets, on the other hand, were providing welcome news: “The international commercial vehicle markets are developing well. For example, by the end of May our Western European home market had expanded by a good 1%,” Mattes stated. Nearly 125,000 heavy-duty trucks had been sold up until July, which is the highest figure since 2008. The truck markets are also growing in the new EU member states and in Russia. Light commercial vehicles in Western Europe showed a rise of 4%
INTERNATIoNAl gRoWTh VDA president Bernhard Mattes said 125,000 vehicles had been sold up internationally until July – the highest volumes in a decade.
38 TRUCK&FLEET ME SEPTEMBER 2018
e-fuels synthesised using renewable electricity open up the prospect of completely Co2 -neutral operation also for trucks. Moreover, they exert their effects not only in newly registered vehicles, but throughout the vehicle fleet”
in the first five months of this year. The situation was equally good on the US truck market, which had again developed a strong dynamic since the second half of 2017. In the first five months of the current year there has been a rise of almost 18%. And China, the world’s largest truck market, also showed double-digit growth from January to May (increasing by 12%), even if the market may be expected to cool off during the second half of the year. Mattes continued: “In addition Brazil, a cause for concern over recent years, is again generating optimism.” Sales rose by more than half – albeit at a low level – during the first five months. We are, however, still a long way from previous record figures. India, the third largest individual market in the world, has also expanded strongly so far this year (+49%). The markets for trailers and bodies have also developed well. Sales by this manufacturer group in Germany grew by 10% up to the end of April, and new registrations of semitrailers added 11% in the period up to May. “On the commercial vehicle markets, the outlook for 2018 as a whole is also largely positive, especially given the healthy state of the global economy,” remarked Mattes. “No-one is going to overlook the risks here – especially the political risks – and that includes the effects of Brexit. In important regions there is the threat of isolationism and protectionism. So, it is all the more imperative that we continue to back free and fair trade and continuation of the negotiations between the large trading nations.”
FuTuRE-PRooF TRANSPoRT Transporter Industry International GmbH (TII Group) is presenting its future-proof transport solutions for logistics yards and on the road. At the company´s stand in Hall 27, the focus of attention will be on the Wiesel: a successful swap body transporter which boasts a new driver´s cab ergonomically optimised in accordance with customer-specific requirements. The Wiesel or more specifically Truckwiesel is designed for the transport of swap bodies and semi-trailers within logistics yards or terminals. Customers of the extremely manoeuvrable vehicle include logistics companies, mail order businesses, postal operators and parcel service providers. “Our swap body transporter make the intralogistics of our customers far more economical and efficient,” according to Jürgen Dirr, area sales manager and responsible for Wiesel at TII´s Ulm-based subsidiary Kamag. “In order to keep abreast of the market, we are constantly optimising our products and solutions.” Thus, for example, the successful swap body transporter is also available as an emission-free version complete with electric drive. The latest development is a new cab which was realised by Kamag. Innovations include an enlarged windscreen for optimum all-round visibility, a maximum low access height and a range of ergonomic features. In addition, there are mounting options for data terminals and convenient storage possibilities.
PARTING SHOT
The firsT wave
lMc Automotive’s david Oakley warns that giving women the right to drive may not be enough to spur the kSA market
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n 24 June, Saudi Arabia implemented a long-awaited change in policy by permitting women to drive for the first time. The move has generated immense publicity and presents an unusual situation for forecasting car sales – it is not often that the opportunity to drive is presented to (almost) half the population of a country on a single day. However, this sudden revolution may not be the gold rush that some had assumed when the news first broke. These developments should be seen in context. Saudi Arabia’s car market has struggled in recent years, after the downturn in global oil prices took its toll on the Kingdom’s economy. From a peak of 685,000 Personal Vehicle sales
in 2015, the market shrank to just 457,000 units in 2017. In the first quarter of 2018, sales were down by 24%, year-on-year, not helped by the introduction of VAT for the first time in January. As such, the anticipated surge of new female drivers is much needed, and there is little doubt that the Saudi market holds great potential for car sales. Saudi Arabia lags behind neighbours such as the UAE in car density (the number of cars on the road per 1,000 adults). The gap, however, will not be closed overnight. When the policy change was first announced back in September 2017, we estimated that it would result in an increase in new car sales of 15-20% per year until the mid-2020s. Although this may seem cautious, the removal of legal prohibitions on women driving does not
automatically translate into new car sales. Pertinent questions include: will Saudi women exercise their new freedom en masse, or will some wait and see before getting behind the wheel? Will women have the financial resources to buy a new car? Will the choices available within buyers’ budgets be sufficiently appealing to entice them to splash out on a new, rather than a used, vehicle? Or will women simply decide to get into the driver’s seat of a car already owned by a family member? It will be several months before we can begin to assess the impact of this policy change on Saudi Arabia’s hitherto lacklustre car sales. If recent history is anything to go by, the effect of the first wave of women drivers might not be to trigger a gold rush, so much as to breathe new life into a struggling market.”
NEXT ISSUE: T&FME TRAvElS TO lYON wITH RENAUlT TRUckS, wONdERS IF wE’ll EvER HAvE A dIESEl-FREE FUTURE, REvIEwS IAA, ANd MORE!
40 TRUCK&FLEET ME SEPTEMBER 2018