Truck&Fleet ME April 2019 by CPI Trade Media

VEHICLES/ TECH / TranSporTaTIon/LogISTICS

O63/APRIL 2O19

MIDDLE EAST

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

R e g g I The B

E r u T C I p

s ’ h t n o m s i h s at t e i r o t s g i b he t t a s k o o l T&fMe za n a g a v a r t x 9e Bauma 201

E n o Z E M o C H r L e cO n O n y u n d e R Th e The fue Iny LOOks h s ’s In A R 2019 TeR

ALL NEW EURO 4 HAS ARRIVED Most Extensive and Environmentally Friendly Line-up of Vehicles

• Environment Friendly • Fuel Economy • Advance Technology • Best in Class • Minimum Cost of Operation

contents

contents FEATURE

30 / BAck To BAUmA

What’s in it for construction transporters?

also this issue … NETWoRk

06 / NEWs FRom ThE moNTh

Middle East goes from strength to strength on the global logistics scene. LAUNchEs

12 / ALL WhEEL TERRAIN sUV Multi-mode drive-train 2019 Terrain enters into Middle East market. INTERVIEW

14 / chANNEL hoPPERs T&FME meets a transporter that runs weekly trips across the Strait of Gibraltar. FEATURE

16 / To ThE REscUE DHL on how it is using Dubai as the centre of its humanitarian efforts. FEATURE

34 / RoAds oF ThE FUTURE A vision of the future of roads blending technology and artistry. AdVIcE

38 / oPTImIsEd oPs Advice for fleets wanting to make their operation more efficient. PARTING shoT

40 / RENAULT UP-TIck French manufacturer’s new strategy starts to make its impact.

APRIL 2019 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

Time To sTarT sTanding up for The liTTle guy? At T&FME we try to stand up for companies of all shapes and sizes involved in the commercial vehicles and transportation and logistics industries. We know that over half of the market even barely registers on most observers to the industry because they are owner/operator outfits that compete mostly on price. There is also a great many of companies that fall under the umbrella term of being classified as Small, Medium Enterprises – SMEs for short – and in the Middle East they are characterised by being upwardly mobile, flexible, ambitious and… competing mostly on price. This isn’t their own fault but, instead, the result of market forces and negative pressure on margins reducing all but the very biggest down to having to work in the least favourable way imaginable. But what about the customers? Well it looks like, similarly, that the companies to watch and work with over the next decade are going to be SMEs too. I was excited and intrigued by Agility’s latest Emerging Markets Logistics Index which was published just as we went to press as that describes SMEs as the group to watch in these markets. With the UAE ranking the third and Saudi the sixth highest in the world (with many of their neighbours not far behind) we should be taking note. The theory is that with e-commerce making access to international markets easier and technology helping to make trade more straightforward, SMEs are primed to be able grow faster than their larger counterparts as these developments will make the biggest impacts to their operations. The bigget obstacle in their way is a classic problem for companies of that size: resources. Namely the resources to be able to navigate the bureaucracy of crossborder travelling. So, if they can find a shipper that can handle the challenges of moving between countries, then they will take it. For me, it would seem obvious that we need to be helping transporters and their similarly-sized customers to help each other. Let’s clear as much of the red-tape out of the way as possible, get businesses trading, and let’s ensure that transporters of all size can help take hauling to a new level.

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

Licensed by tECOM to registered company, CpI trade publishing fZ LLC whose registered office is 207 – 209, Building 3, Dubai Studio City, Dubai, UAE. www.cpitrademedia.com the publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. the opinions and views contained in this publication are not necessarily those of the publishers.

stEPHEN WHItE EdiToR, TRUCK&FLEET ME STEPHEN.WHiTE@CPiTRAdEMEdiA.CoM 02 TRUCK&FLEET ME APRIL 2019

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feATURed

CONSTRUCTION

SAUdI CONSTRUCTION ReBOUNdINg BUT TeNdeR PRICeS dOwN IN SOMe gCC MARkeTS, ReveALS RICS SURvey

Shamal Steel Arch Bridge in RAK sets new world record

Saudi Arabia may sometimes be a challenging and frequently frustrating market to operate in – from a construction

CONSULTANT

stand-point – but it has

UAE firm to sell iconic New York tower

to be good news if there are signs of a recovery

Interview: Securing the future with Aquila PM’s Louise Rodrigues

CONSULTANT

BWTC awards management contract to Savills

CONSTRUCTION

RAK announces emirate’s first ‘Green Building’

CONSTRUCTION

Eagle Hills Sharjah launches Indigo Beach Residence 04 TRUCK&FLEET ME APRIL 2019

feature: Built to Sterling Standards

there (Saudi construction rebounding but tender prices down in some GCC markets, reveals RICS survey). Even if it has not always been the case that the region’s economies all grow at the same pace, a strong Saudi market is key to ensuring a continuity of work for the construction industry. At the very least it keeps cash-flow moving. Hopefully, the warnings in the survey about payment delays are not an indication that past lessons have not been learnt. If you are suffering from skill shortages (there is a reason why some of us get paid a ‘Saudi premium’), then you want to be able to afford the expertise you need. Name withheld by request

NETWORK

AGILITy EMERGING MARKETS REPORT / TRUSTWORThy BUILdING KIzAd FACILITy GITI OPENS FIRST FLAGShIP STORE IN REGION / MASdAR VEhICLE AWARd

network UAE third best emerging logistics market in the world OUT-RANKS ThE REST OF REGION IN AGILITy EMERGING MARKETS LOGISTICS INdEx LOGISTICS The logistics industry sees emerging markets growing at a healthy 5% pace in 2019, but a surprising percentage of executives are bracing for a crisis amid US-China trade friction, interest rate and currency volatility, and Brexit uncertainty. In Agility’s annual survey of more than 500 supply chain industry professionals, 55.7% say a growth rate of 5% for developing economies is “about right.” Emerging markets expanded by 4.7% in 2018, and the International

Monetary Fund now forecasts 4.5% expansion for 2019. At the same time, 47.1% of logistics executives surveyed say an emerging markets crisis is “likely” or “highly likely.” The survey is part of the 2019 Agility Emerging Markets Logistics Index, the company’s 10th annual snapshot of industry sentiment and ranking of the world’s 50 leading emerging markets. The Index is a broad gauge of countries’ competitiveness based on their international and

domestic logistics strengths and business fundamentals. “Companies looking for opportunity are finding it in emerging markets, where small and medium-sized enterprises with access to technology and mobile banking are increasingly driving growth,” says Essa Al-Saleh, CEO of Agility Global Integrated Logistics. “At the same time, logistics professionals worry that these markets are vulnerable to ripple effects from big geopolitical setbacks.” The Index ranks 50

countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. The top 10 are: China, India, United Arab Emirates, Indonesia, Malaysia, Saudi Arabia, Mexico, Qatar, Turkey and Vietnam. China, India and Indonesia rank highest for domestic logistics; China, India and Mexico are tops for international logistics; and UAE, Malaysia have the best business fundamentals.

SAUdI ARABIA IS INCREASING OVERALL SPENdING OF ABOUT $27 BILLION TO IMPROVE ANd ExPANd ThE COUNTRy’S ROAdS

06 TRUCK&FLEET ME APRIL 2019

NETWORK

NORThERN EMIRATES GETTING $3BN TO FUNd INFRASTRUCTURE

TRUSTWORThy BUILdING ICd ANd 3PL FACILITIES IN KIzAd LOGISTICS

The Trustworthy.ae Group has broken ground on its first inland container depot (ICD) and third-party logistics (3PL) facilities in Khalifa Industrial Zone Abu Dhabi (KIZAD). Hayleys Advantis Limited will manage and operate the two facilities located close to Khalifa Port and will serve the expected growth in container volumes from the current 1.5m twenty-foot equivalent units (TEUs), to 8.5m in the next five years. The 3PL facility will spread over 40,000sqm and will have 25,000sqm of open yard for storage. The facility is expected to open for business in Q1, 2020. The ICD facility will offer washing, cleaning, repairs and certification for containers, with an operational capacity of 1,500 to 1,800 trucks per day. Major and minor container repairs will be served by a workshop within the facility. The 3PL operations will cater to cold, ambient and open yard storage and is scheduled for completion in June 2019, the company said. “Today’s groundbreaking ceremony marks an important milestone on our project. Trustworthy. ae Group’s investment in building the ICD and 3PL facility in KIZAD demonstrates our continued commitment to the UAE. We are proud to collaborate with Hayleys Advantis Limited on this exceptional project who are leaders in managing and providing world-class depot and logistics facilities. We are confident that Hayleys Advantis will set a new benchmark for quality and service in the Middle East region,” said Abdul Lathif, MD of Trustworthy.ae Group. Samir Chaturvedi, CEO of KIZAD said: “We are pleased to celebrate the ground-breaking of Trustworthy.ae Group’s first Inland Container Depot and third-party logistics facility – two major developments that will support the trade of goods to and from Abu Dhabi across a wide spectrum of industries. The investment of Sri Lanka’s leading logistics firm at our industrial zone is testament to KIZAD’s established position as a global industrial and trading hub.”

ROAdS $3bn worth of road and infrastructure projects are coming to the UAE’s northern region. During a field visit, the Ruler of Dubai highlighted the importance of modernising infrastructure in line with the highest international standards, to serve the country’s development, according to a report by WAM. “Infrastructure advancement will benefit our sustainable development. There are no areas beyond its coverage. All road and transportation

projects in the UAE aim to provide the highest quality services to our citizens. The UAE’s transportation system is a key part of its infrastructure projects, and it translates our future vision of sustainable development. Our field visits are ongoing, and our development projects will not stop. The UAE will always advance economically, culturally and socially,” said Sheikh Mohammed. During the tour, the Ruler of Dubai also green lit the restoration and development of Al Ittihad Street, valued at $272m, to ensure the smooth flow of traffic.

BAPCO FLOATS TENdER ACROSS KSA TRANSPORTATION Bahrain Petroleum Company (Bapco) invited bids from leading contractors and construction companies to provide road and earthwork services, along with repair and maintenance work at the company’s major operating areas across the Kingdom. In a tender notification, Bapco said that the scope of work for the winning company will include the management, supervision, manpower,

plant, equipment, materials, as well as providing consumables and transport to carry out repairs, maintenance and the construction of roads. Furthermore, the contract requires the winning bidder selected by Bapco setup car parks, hard standings, tank foundations, tank ring beams and bund wells, along with other associated works and general operations, such as filing, grading and levelling, the oil company added.

APRIL 2019 TRUCK&FLEET ME 07

NETWORK

$2.6BN IN ROAd PROjECTS FOR jAzAN

ROAdS

The Emir of the Asir region of Saudi Arabia, Prince Turki Bin Talal bin Abdul Aziz Al Saud, has announced infrastructure projects totaling $2.6 billion in the Jazan area of the Kingdom. According to a report by the Saudi Gazette, the construction of the Asir-Jazan Road will cost

$1.59 billion, while the expansion of the Jeddah-Jazan Coastal Road is expected to cost $1.06 billion. The projects were announced by Prince Turki Bin Talal at a ceremony held in the Kingdom. The projects are in addition to the development of the Abha Regional Airport, which is being undertaken in three phases, and a new medical centre.

Once the final phase of the Abha Regional Airport project is complete, the airport will be able to accommodate 13 million passengers annually. The airport will also feature passenger boarding bridges, a yard for planes to park and parallel corridors to accommodate 36 planes simultaneously, car parking buildings to accommodate 10,000 cars, buildings for the Presidency of Meteorology and the Environment, airport administration, aviation and airport maintenance. A mosque that can accommodate 1,000 worshipers; buildings for police authorities working in the airport, and buildings for administrative and technical support is also planned.

GITI TIRE OPENS FIRST MIddLE EAST ‘FLAGShIP’ STORE IN dUBAI RETAIL Singapore-based Giti Tire inaugurated its first ‘Giti Flagship’ store in the Middle East at a special ceremony held in Dubai last month. The event was organised in partnership with Amin Auto Care and guests – including senior executives from the company – were treated to exciting displays, a ceremonial signing of a ‘Commitment to Service,’ as well as remarks by executive director of international sales

and marketing Chris Bloor. “This flagship store opening event is symbolic of Giti opening new doors in Dubai and across the region,” explained Bloor. “The Middle East is important to Giti’s objectives, and providing top service and quality in the region will continue to be a major focus, across all tire types and segments. We are happy to partner with Amin Auto Care for this exciting event and beautiful location.” The event was held at the

store’s location within the fast-growing Dubai Investment Park (DIP) district, a “perfect location to reach a large and diverse customer base,” the company said in a statement. During the event speakers from both Giti Tire and Amin Auto Care shared their comments and vision for the future Giti’s retail store programme carefully selects only the stores with best service, customer experience, and branding potential.

khalifa Port added to Uae rail network LOGISTICS

UAE national railway developer and operator, Etihad Rail has signed an agreement with Abu Dhabi Ports with the aim of connecting Khalifa Port to the national rail network. H.H. Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council and Chairman of Etihad Rail, witnessed the signing of the agreement between the two entities. Sheikh Theyab said that this union will have positive effects, as connecting Khalifa Port to the national rail network will raise competitiveness, while noting that the train station in Khalifa Port will have an annual capacity of 2.4 million containers, the largest in the network. He further conmmented: “The train station in Khalifa Port was designed to improve infrastructure and raise the capacity of our ports to transfer goods in a more economical and reliable way, through the ability of one train to transfer the load of 300 trucks.” The agreement was signed by Shadi Malak, CEO of Etisalat Rail and Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports at Khalifa Port. Also, in attendance was Minister of State and Chairman of Abu Dhabi Ports Company, Dr Sultan bin Ahmad Sultan Al Jaber. Stage two of a related project will extend the network’s tracks to over 605 km stretching from Al Ghuwaifat to the UAE’s border with the Kingdom of Saudi Arabia in the West to Fujairah on the Eastern Coast of the country; passing through Khalifa Port, Khor Fakkan Port, Jebel Ali Port and Fujairah Port, WAM stated.

INSIdE ThIS ISSUE: A TRANSPORTER OVER TWO CONTINENTS, BAUMA PREVIEW, SAVING TIME ANd LIVES WITh dhL, ANd MORE!

08 TRUCK&FLEET ME APRIL 2019

NETWORK

xCMG TO GO ON CRANE LAUNCh SPREE ThIS yEAR MOBILE CRANES

diP to hoUse lootah Pre-bUilt oPeration TRANSPORTATION

Lootah Real Estate has signed a long-term agreement with Dubai Industrial Park (DIP) to establish Senaeyat, a 3 million sqm pre-built modern industrial manufacturing development. Phase one comprises of a 49-year land lease agreement covering an area of one million sqm. DIP is one of the largest industrial hubs in the region and a member of TECOM Group. Abdulla Belhoul, Chief Commercial Officer of TECOM Group, and Saleh Abdullah Lootah, executive director of Lootah Real Estate Development, signed the agreement during DIP’s participation at Gulfood 2019, the company said in a statement. Belhoul said: “We are pleased that Dubai Industrial Park, the business enabler in the industrial sector within TECOM Group, continues to make strides in developing the sector as a main engine for growth for Dubai and the region.” “This strategic agreement with Lootah Real Estate Development to establish Senaeyat in Dubai Industrial Park is a significant step in line with our Group’s vision to stimulate investment and business growth in Dubai and the region.” “We welcome our new business partner Senaeyat to Dubai Industrial Park, a key value addition to our growing industrial hub. We look forward to a long successful partnership to achieve mutual milestones and contribute to the realization of the Dubai Industrial Strategy 2030,” said Saud Abu Al-Shawareb, MD of DIP about the agreement. “Driven by our mandate to grow the industrial sector, we are committed to meet the requirements of the developing market and our business partners.”

10 TRUCK&FLEET ME APRIL 2019

Chinese machinery brand XCMG has announced that it plans to introduce 84 new customised models of its G-series cranes globally by the end of this year. The company said that the new launches around the world will comprise 25 cranes for the Southeast Asian, Middle Eastern and African markets. These models will be designed with the conditions of the target markets in mind. Liu Jiansen, assistant president of XCMG Machinery and GM of XCMG Import and Export, said: “We are confident that our new line of cranes will achieve success in the Middle East, Africa and Southeast Asia “By leveraging the industry’s

first G-technology platform, XCMG will make breakthroughs by adapting to clients’ needs with differentiated products and cutting-edge technologies.” According to XCMG, the G-series of cranes have been collaboratively designed by the

company’s researchers in Europe, North America, Brazil and China. The manufacturer added that its Hoisting Machinery Business Division saw a 33% year-on-year increase in overseas sales in 2018 while exports of crane product to Europe and North America went up by 50%.

MASdAR WINS dAST AWARd TRANSPORT Masdar has won the prestigious Dubai Award for Sustainable Transport (DAST) in the Mobility Management category for its initiatives to promote walking and cycling at Masdar City. Masdar’s Abdulla Balalaa, Director, Real Estate Development and Asha Pawar, Manager, Transportation, accepted the Road and Transport Authority (RTA) award during a ceremony held at the World Trade Centre in Dubai,

where judges recognised Masdar’s efforts in promoting a pedestrian-friendly environment by focusing on non-motorised transport within Masdar City. “Masdar is delighted to accept this award for its transport initiatives that put the safety and comfort of pedestrians first,” said Balalaa. “Through our neighbourhoods, we aim to create a sense of connectivity and community that contributes to a healthier lifestyle for all our inhabitants

and visitors. We hope that the success of these initiatives at Masdar City encourages other pedestrian-friendly and sustainable transport projects elsewhere in the UAE and the wider region.” The Masdar was the city was the first in the region to implement autonomous vehicles with the arrival of the Personal Rapid Transit (PRT) system, which has successfully completed over two million trips since its launch in 2010.

LAUNCHES

2019 GMC TERRAIN ARRIVES IN THE MIDDLE EAST / EVo-LUTIoN FRoM LAMBoRGHINI

lau nches TRACTIoN SELECT SWITCHES TO FWD FOR FUEL ECONOMY

GMC enters new Terrain HD REAR VISIoN CAMERA AND TWo TURBoCHARGED MoDELS NoW AVAILABLE

GMC has announced the Middle East arrival of the 2019 Terrain, which is packed with more available advanced safety technologies than ever before. The available Driver Alert Package 2 on the Terrain has been enhanced with Front Pedestrian Braking. To help make it easier for the driver to park and manoeuvre in low-speed situations, HD Rear Vision Camera has been made available on the 2019 Terrain, while the Surround Vision feature is now standard exclusively on the Denali models.

12 TRUCK&FLEET ME APRIL 2019

GMC offers customers the widest range of choices yet, with two available turbocharged propulsion systems. Two efficiencyenhancing nine-speed automatic transmissions are matched with the two turbocharged engines. Stop/start technology is featured on all systems Denali boosts the 2019 Terrain with great exclusivity, offering a distinctive rangetopping design and uniquely refined features. The Terrain’s bold exterior features the brand’s signature cues with stronger, sharper and more

sculpted elements such as the grille and lighting features. Its refined shape in the wind tunnel helps ensure the distinctive profile cuts through the air with optimal efficiency and quietness. Elevating GMC’s design, the 2019 Terrain Denali will feature its signature satin chrome grille along with Denali-specific accents including body-colour fascias, lower trim and door handles, plus bright roof-mounted side rails, and chrome outside mirrors and body-side molding. Additionally, LED headlamps

and 19-inch ultra-bright machined aluminum wheels are standard on Denali. All other models feature signature LED running lamps and tail lamps. Bi-functional HID headlamps are standard on SLE and SLT. Additionally, 17-inch wheels are standard on SLE, with 18-inch wheels standard on SLE AWD, and standard on SLT. A range of two turbocharged gas engines, including the 1.5L and 2.0L turbocharged gas engines, matched with two unique nine-speed automatic transmissions. The 2.0L turbo engine offers

LAUNCHES

lamborghini DebuTs huracán eVo spyDer ExPECTED To ARRIVE IN THE MIDDLE EAST By THE END oF 2019

ALERT DRIVING The Driver Alert Package 2 on the Terrain has been enhanced with Front Pedestrian Braking.

SITTING oN CHRoME The 2019 Terrain Denali features the signature satin chrome grille along with Denali-specific accents including body-colour fascias, lower trim and door handles, plus bright roof-mounted side rails.

stronger acceleration and a higher degree of performance than its 1.5L counterpart. GMC’s Electronic Precision Shift enables large storage room in the center console with electronically controlled gear selection consisting of intuitive push buttons and pull triggers. It comes standard with GMC’s drivercontrollable Traction

Select system, which has choices for different conditions. Elements such as the throttle responses are optimised for the selected driving mode. AWD models include a FWD mode that disconnects the AWD system to minimise drag and optimise fuel economy, while the AWD mode offers all the benefits of an active AWD system.

Automobili Lamborghini presented the new Lamborghini Huracán EVO Spyder at the 2019 Geneva Motor Show last month: the open-top car joins its coupé counterpart launched earlier this year, as the second model in the V10 Huracán EVO line-up. Expected to arrive in the Middle East towards the end of the year, the Spyder adopts the next-generation vehicle dynamic control and aerodynamics developed for the coupé, with the 5.2-litre naturally-aspirated Lamborghini V10 engine uprated for a higher power output and incorporating Titanium intake valves. The Huracán EVO Spyder outputs 640 hp (470 kW) at 8,000 rpm with 600 Nm of torque delivered at 6,500 rpm. With a dry weight of 1,542 kg the car reaches a weightto-power ratio of 2.41 kg/hp, accelerates from 0-100 km/h in 3.1 seconds and from 0-200 km/h in 9.3 seconds. Braking from 100 km/h to 0 is achieved in just 32.2 m, with a top speed of 325 km/h. “The Huracán EVO Spyder incorporates all the performance, next-generation vehicle control and aerodynamic features of the EVO coupé, with its own unique personality and a driving excitement that only an open-top car can offer,” says Stefano Domenicali, CEO, Automobili Lamborghini. “The Spyder continues the Huracán

EVO’s evolutionary charge: extremely easy to drive while excelling as a highly responsive, fun super sports car. Particularly with the roof open, the emotive sound of the naturally aspirated engine and the refined, lightweight exhaust system take the sensory experience to a new level. The Huracán EVO Spyder’s design, performance and exhilarating open-air drive experience is literally breath-taking.” Rear-wheel steering and a fourwheel torque vectoring system are controlled centrally by Lamborghini Dinamica Veicolo Integrata (LDVI): the Central Processing Unit integrating and controlling every aspect of the car’s set-up and dynamic behaviour, anticipating the next move and needs of the driver and interpreting this through a ‘feed forward logic’. SPECIFICATIoNS Top speed

325km/h

0-100 km/h

3.1 seconds

Engine

10cyl V, 90°, IDS+MPI dual injection

Power

470kW / 640hp at 8,000 rpm

Torque

600Nm (442lb. ft.) at 6,500rpm

CAUSING A SToRM TOP SPEED OF 335KM/H

FETAURES HD Rear Vision Camera Surround Vision Forward Collision Alert with Distance Indicator Low-Speed Forward Automatic Braking Lane Keep Assist with Lane Departure Warning Front Pedestrian Braking

APRIL 2019 TRUCK&FLEET ME 13

FEATURE

Channel hOppers

T&FME talks to Moroccan transporter Boyauderie Drimano about its ventures over the water and into Europe

nly a select few drivers are able to say in the morning that they will not only be in another country when they finally settle down to sleep that night but also in a different continent. Fewer still do that journey on a weekly basis. Abdelkarim Mhammedi Senhaji, a driver for Fes-based Boyauderie Drimano, is one of those select few. The company ships products, olives and capers from the Moroccan city through the port of Tangiers on the northern coast and by boat across the 15km straits that separates Europe from Africa. Once on the other side, Senhaji will deliver to locations in Spain, France and even as far north as Belgium. “I do this because I just love this work,” Senhaji’s translator tells T&FME. When asked what it takes to be a good driver his words return wryly through her: “Passion and patience.”

14 TRUCK&FLEET ME APRIL 2019

We’re sitting with the owner of Boyauderie Drimano, Mohammad Ali Laraqui Houssani, during the Volvo Trucks Driver Challenge. More than 12,000 drivers took part in the competition, and Houssani says he is extremely proud to join his star man at the event. He adds that Senhaji, a man he endearingly calls the professor, is trusted to travel thousands of kilometres in the newest Swedish-built truck the company owns, a two-year-old FH. “We cannot give the oldest truck to the best driver we have!” He laughs Boyauderie Drimano owns nine FH trucks and Houssani says the company has always gone with Volvo because of safety, reliability and economy – crucial for a company that is running such long distances. The oldest in the company is now seven years old and, unsurprisingly, his expanding fleet will continue to bear the iron mark. “We can’t compare with other brands

We integrated to essentially better support our customers. Uptime is very important in our business”

since we have always used Volvo Trucks since the beginning,” he explains. “Safety is importance as we’re transporting raw materials but also final products.” With the trucks expected to travel thousands of kilometres away from home, maintenance schedules and programmes are prioritised and controlled in-house. “We integrated this activity into the company to essentially better support our customers. Uptime is very important in our business,” he continues. When he speaks, Houssani chooses his works carefully and responds softly – only hardening when asked how a Moroccan company has grown by transporting into Europe. “It’s normal, it’s easy for business as Morocco is in close proximity to Europe. It’s only 14km,” he retorts. “If you have a factory in Morocco, it’s like having it in France.” As such, the Boyauderie Drimano

FEATURE

ThE EURoPEAn InFLUEncE In MoRocco Morocco is estimated to have almost 140,000 commercial vehicles in operation. According to research by Automotive Fleet and General Motors, 84% of the fleet vehicles in Morocco consists of European brands like Renault, Peugeot, Citroën, BMW, Mercedes, and Audi. Japanese and Korean brands are competitors, especially in the utility and 4x4 segments. “Morocco is a European-centric market. After Opel was sold to PSA, General Motors is reviving the Chevrolet brand,” Wisam ElBana, general manager - North Africa for General Motors was quoted by the magazine. “We’re starting by building up a product portfolio that suits the market preferences. We recently introduced the Equinox in Morocco. We’re focusing on rebuilding our product portfolio starting with the Equinox by focusing on models made in the USA to leverage the customs and homologation benefits under the free trade agreement between Morocco and the United States.” Like many North African countries, except Egypt and Libya, French brands have retained their historical importance in the market. “The high penetration of Asian cars could soon threaten the dominance of French brands which still represent 40% of the market in Morocco,” said Abderrahim Benkirane, president of AIVAM, in an interview with the Le Matin daily. “The breakthrough by Asian car manufacturers, mainly Japanese and Korean, is progressing strongly and in four to five years, they are also set to be joined by the Chinese.“

operation is now fully plugged into the operations of its customers based on the continent across the water – running full both ways. “They bring the raw material, for example, on Monday and by Friday we can ship the final product. The next Monday they are in France. We have nine drivers and generally they take one week but it’s very simple.” In terms of fuelling, the trucks are sent fully fuelled on their outward journey as fuel is cheaper than in Spain. “Fez to Lyon is 2,600km,” he explains. “So 5,200km, in total. The advantage with Volvo is we have big tanks. 1,480 litres; and we need 1,200 litres to get to France.” Houssani is keen to stress that the drivers – their comfort and safety – are central to the company’s on-going ability to provide a service to customer. “We have a very friendly relationship (with the drivers). Our aim when we recruit is to find guys with a good education,” he explains. “We need to find the right guy who will take good care of the truck.” Perhaps surprisingly, he says the company hasn’t fully explored enrolling its drivers onto a driver training progamme. “Never, but we are talking about this.” Drivers he adds are not in short supply in Morocco, placing the emphasis on recruiting the right skills and right attitude. “We don’t have a shortage,” he affirms and says that the company does not have a bias against any gender working as drivers. As for when he is on the move, Houssani says the company has opted out of taking

A BUsy chAnnEL 20% of the world’s maritime traffic passing through the Strait of Gibraltar, container ports allow Morocco to grab a slice of the growing transshipment market.

If you have a factory in Morocco, it’s like having it in France”

cLosE To hoME Morocco is a vital link between Africa and Southern Europe. Houssani says that red-tape is minimal – making shipping straight-forward.

Volvo’s Dynafleet, instead choosing an off-the-shelf telematics solution to keep track of Sanhaji and the rest of the fleet. “I can see the benefit but the price is a bit high,” he adds. Looking at the wider picture, however, he suggests there are investment opportunities for companies in the Moroccan market. “We have good opportunities in Morocco now, it is time to invest because what happens now between all parts of the world. We even have an opportunity to develop the US as a destination. We have free-trade between Morocco and the US,” he explains, adding that easing of tax levies to China also makes that a viable market. “By ship containers of course!” He adds that the company’s success to date has been built on a simple threepronged mantra: “We should be serious have quality and respect our customer.” As he is travelling such long distances, Senhaji unsurprisingly says that the truck feels like a second home and is where he rests at night. But he does have one complaint. “The mattress….” He says ruefully. “It is not very comfortable for me.” After a brief exchange in French, Houssani adds on the professor’s behalf: “He thinks the back board is the problem!” Before we part, T&FME asks what’s more important for Houssani and Boyauderie Drimano: the truck or the driver? He pauses for a moment and draws a smile: “If they are safe, I am safe too.” APRIL 2019 TRUCK&FLEET ME 15

FEATURE

Saving time and liveS DHL on why Dubai is the hub of its humanitarian logistics operation

ith its gleaming skyscrapers, sprawling malls and ritzy hotels, Dubai has built a reputation both as a business and tourism hub, as well as a playground for the rich and famous. But there is another side to the glitzy Gulf city. As war rages on in many countries with terrorist attacks and natural disasters on the rise, the city is caught in the middle of a migration path between Europe and Asia, making it a natural global centre for humanitarian logistics. Not only is it home to the world’s largest humanitarian hub, it has also facilitated the movement of $32 billion worth of humanitarian and developmental aid from the United Arab Emirates to various countries. This has benefited millions of refugees and people displaced from their home country, including 10 million people in Yemen who are now facing one of the worst humanitarian disasters in recent history. 16 TRUCK&FLEET ME APRIL 2019

At the heart of the city’s humanitarian logistics network is the Dubai International Humanitarian City (IHC), located in a desert southwest of its central business district. Sitting between Al Maktoum International Airport and Jebel Ali port is a long stretch of hangars with warehouses packed with emergency relief supplies, medical kits and boxes of high-energy biscuits. Outside, a mobile hospital vehicle sits on the tarmac, waiting to be dispatched at a few hours’ notice to where the world’s next humanitarian crisis unfolds. Aid dispatched from the IHC can reach two-thirds of the world population in just eight hours, making it a vital link in the global humanitarian relief network. Its 70 members — comprising United Nations agencies, non-governmental organisations and commercial companies — can also move shipments from sea to air within 10 minutes. When the ISIS flag fell in Mosul in 2017, nine months of fighting had turned infrastructure

the centre pushes the city’s logistics capabilities up a notch, by facilitating collaboration with existing aid and humanitarian organisations”

to rubble, and left some 150,000 residents susceptible to diseases. It was no surprise that IHC stepped up to deliver aid to the Iraqi city, almost emptying its warehouses overnight. The IHC has distributed aid to countries in Asia, the Middle East, the Pacific islands and the Caribbean, including Haiti, Bangladesh, Iraq, Uganda, Somalia and Nigeria. In October last year, it sent 92 metric tons of aid to the Indonesian island of Sulawesi after it was struck by a 7.5 magnitude earthquake. Even as the bitter civil war enters the fourth year in Yemen and descends into the world’s largest humanitarian crisis, other Middle Eastern conflicts are intensifying. Dubai’s role as a humanitarian logistics hub, as a result, has only grown in importance. The Yemen conflict itself has left 22 million people in need of humanitarian assistance and protection. In early 2017, an expansion of IHC was approved — a move that sees the facility grow by

FEATURE

QUIck TURNAROUND Amadou Diallo, CEO Middle East & Africa, DHL Global Forwarding says connecting people and improving lives is what DHL wants to achieve across the globe.

more than 300,000sqm. This was followed by the development of a data bank, which will allow the sharing of aid information between governments and agencies to reduce waste, and ensure that aid is delivered where it is needed most. To give humanitarian logistics in Dubai a further boost, DHL Global Forwarding (DGF) unveiled its first Global Humanitarian Logistics Competence Center (GHLCC) there in February. The Center consolidates DGF’s existing humanitarian logistics services, offering non-governmental organizations, aid agencies and their suppliers and manufacturers a broad range of services, including air and ocean freight, customs clearance, consultation, warehousing, and local distribution of humanitarian shipments. These services will also be backed by control tower and data analytics services designed to increase freight visibility for humanitarian situations of any level of urgency and complexity. The Center offers non-governmental organizations, aid agencies, and their suppliers and manufacturers a broad range of services including air and ocean freight, customs clearance, warehousing and local distribution of humanitarian shipments. These services will be backed by control tower and data analytics services designed to offer heightened levels of freight visibility for humanitarian situations of any level of urgency and complexity. Organisations can also use the Center to tap into DHL Global Forwarding’s global network of freight connections for rapid, efficient transport of resources; as well as sector-specific services including temperature-controlled and cold-chain shipments for life sciences and healthcare – critical for public health assistance projects

IMPROVED LOGISTIcS The first Global Humanitarian Logistics Competence Center Dubai’s logistics capability, says centre head Fatima Ait Bendawad.

involving the long-term delivery of medicines and medical equipment to developing areas. With its geographical location and longstanding reputation as a cluster for global aid and relief organisations, Dubai currently plays host to several major logistics hubs including the International Humanitarian City, the largest humanitarian hub worldwide from which nine United Nations (UN) agencies and 48 NGOs currently run logistics operations. The centre will play the pivotal role of coordinating humanitarian logistics services globally, by leveraging expertise in regional hubs in Sub-Saharan Africa and Europe – to optimise the delivery schedule and routes to areas which need the resources. “The centre pushes the city’s logistics capabilities up a notch, by facilitating

QUIck TURNAROUND Humanitarian logistics requires coordination with different stakeholders to get help to those in need, says Massar Diop, director of Humanitarian Logistics, DHL Global Forwarding.

it means we can take care of our partners’ needs in full scale; finding suitable solutions against all challenges”

collaboration with existing aid and humanitarian organisations, and the IHC,” says centre head Fatima Ait Bendawad. “Dubai is geographically and strategically important. It’s a gateway to Asia, Africa and the Middle East. With the existing humanitarian hubs like the IHC international humanitarian city, emergency hubs based in Dubai. “It will act like a control tower. It means we can take care of our partners’ special necessities and needs in full scale; finding suitable solutions against all challenges. For DHL, it means (we can make) the last mile deliveries to communities in need.” Above all, the knowledge and expertise of the team will make a difference, comments the humanitarian operations veteran with 15 years’ of experience under her belt. She

FOR THOSE IN NEED $32 billion worth of humanitarian and developmental aid from the United Arab Emirates has been donated to various countries..

APRIL 2019 TRUCK&FLEET ME 17

FEATURE

adds that it enables DHL to bring together its many different logistics arms. “DHL has a network in every country worldwide and outstanding opportunities to centralise operations for enabling consistent service as well as developing partnerships. DHL has focussed on visibility for all the organisations,” she says. “We have created a dedicated solution for humanitarian logistics across all different divisions, like ocean freight, air freight, warehousing, road transport and customer service.” As part of the company’s GoHelp disaster management program, trained volunteers within the company are regularly deployed to render on-the-ground logistics support in natural disaster zones. It also holds joint workshops with the UN Development Program (UNDP) to prepare local airport management for the logistical issues associated with natural disaster situations. “Our work on the frontline has helped us build and maintain familiarity with the nuances of compliance, regulation and international standards that apply to movements of critical goods,” she says. “The level of preparedness – whether it be expedited customs clearances, readiness to handle dangerous goods like chemicals or medicines, or processes for on-ground collaboration between multiple agencies – directly correlates with the efficiency of humanitarian logistics. It will, without doubt, help us to put forth bigger and better solutions to help those in need.” Designed to meet growing global demand for these logistics services, the centrE will see close coordination across all DHL business divisions to provide all related services and products, to meet customers’ needs. A seasoned DHL manager with 15 years of experience in creating, providing and implementing solutions for complex humanitarian operations, has been appointed to lead the Global Competence Center for Humanitarian Logistics. She says the centre embodies DHL’s belied in being passionate about its work, teamwork and ensuring everybody is contributing to a common goal. “Humanitarian logistics for DHL means improving people’s lives. It includes prevention as in vaccination programmes; providing humanitarian logistics in a practical way,” she adds. “What DHL focusses on with partner organizations - that would be UN agencies, NGOs, manufacturers and governments as well – is in offering unique solutions.” “Humanitarian logistics requires dedication and coordination with different stakeholders to get critical goods to those in need, gaining 18 TRUCK&FLEET ME APRIL 2019

RAPID RESONDERS Once relief goods have arrived at the airport, the shipments are repacked by DRT volunteers for storage in temporary warehouses and for distribution mostl y by truck.

PROVIDING DISASTER RELIEF On 26 December 2003, an earthquake measuring 6.6 on the Richter scale struck the Iranian city of Bam, leaving the majority of buildings badly damaged. In the immediate aftermath of the quake, DPDHL Group was able to quickly mobilise its network and fly relief supplies into Bam Airport. As the airport’s infrastructure was not designed to cope with the sudden rise of incoming relief supplies, major logistical challenges soon led to the airport shutting down. It was at Bam Airport that DPDHL Group employees realized they could use their expertise in logistics, its global network and employees’ commitment to support people in need around the world. In cooperation with the United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA), DHL has since established a global network consisting of around 500 specially trained employees who volunteer their time to be a part of our Disaster Response Teams (DRT). There are DRTs for the Americas, the Middle East/ Africa and Asia Pacific regions. When called up by the United Nations after a natural disaster, DRTs

can be on the ground and operational at a disaster-site airport within 72 hours. In close cooperation with the worldwide humanitarian system, DRT members assume various logistics responsibilities all on a volunteer basis. They unload air freight palettes, warehouse relief supplies, conduct inventory and make sure that the incoming supplies are received by the appropriate relief organizations in an orderly fashion. The global DRT network consists of three regional relief hubs that have been chosen strategically to cover 80% of the world’s disaster hot-spots. One team is stationed in Singapore for operations in Asia Pacific. A second team, the DRT Americas in Panama, provides its services to the Latin American and Caribbean regions, while a third team is based in Dubai and covers the Middle East and Africa. Once relief goods have arrived at the airport, the shipments are repacked by DRT volunteers for storage in temporary warehouses and for distribution mostly by truck. To distribute urgently needed items such as health supplies and drinking water.

trust and working with numerous partners to coordinate shipments in situations which often require short turnaround times,” says Massar Diop, director of Humanitarian Logistics, DHL Global Forwarding. With more than a decade of experience working in this field, Massar has built a strong network of relationships with key UN agencies, NGOs and suppliers, to provide the best solutions to their needs, in different parts of the world. One of its partners is Merck KGaA, which has spent over a decade developing its Praziquantel Donation Program in Africa to fight to the Schistosomiasis tropical disease alongside the World Health Organisation (WHO) “Every year we deliver up to 250 million Praziquantel tablets to Africa. These tablets are used to treat school aged children against Schistosomiasis, says Christian Schroeter, Ph.D., senior director pharma business integration, Merck KGaA, Darmstadt Germany. “Utilising the DHL humanitarian logistics competence centre for managing these deliveries we’ve been able to dramatically improve visibility and control of these shipments. This has significantly improved our ability to deliver our donation medicine in time and ultimately combat one of the most severe neglected tropical diseases.” In addition to fighting epidemics, DHL also has extensive experience in disaster management activities – which includes the deployment of its Disaster Response Teams (DRT) consisting of DHL experts to provide on-ground logistics support in natural disaster zones; and the Get Airports Ready for Disasters (GARD) program, which runs joint workshops with the UN Development Programme to prepare local airport management for the logistical issues associated with natural disaster situations. “The impact of conflicts and natural disasters on the world is evident and at DHL Global Forwarding, we have the capability, expertise and global network to render resilient logistics support to organizations who are highly committed to ensure that critical resources are delivered, to meet the needs of those who require them,” said Amadou Diallo, CEO, DHL Global Forwarding, Middle East and Africa. “I come myself from an underprivileged area so I have known since I was born what it actually means to be in need and in need of help,” Amadou Diallo, CEO Middle East & Africa, DHL Global Forwarding. “Connecting people and improving lives is what we want to achieve across the globe. And logistics is our core competence and composing both is something that I know from my own lifer experience will help change the state of the world for tomorrow.”

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FEATURE

Middle east rising to the top

Agility says its survey reveals the huge potential of the UAE and KSA as logistics hubs

s we move into 2019, we will see an increasingly complex and unpredictable global picture, reveals Agility’s latest Emerging Markets Logistics Index but the industry is looking towards the Middle East to challenge the traditional logistics powerhouses. At the biggest scales, risk factors include the incoming threat of a trade war between Beijing and Washington, the prospect of a disorderly Brexit and tightening monetary policy, a particularly worrisome scenario for emerging markets with high volumes of US dollar denominated debt, to name just a few. China and India top the 2019 Agility Emerging Markets Logistics Index finishing some distance ahead of the remaining 48 emerging markets covered. The rest of the top 10 markets, however, are ranked much more closely together, with just 0.68 points separating them. The top 10 reflects the reality of emerging 20 TRUCK&FLEET ME APRIL 2019

markets – that China and India dominate given both their scale and the initiatives undertaken to capitalise on those structural advantages, and that the remaining markets in the top 10 each present viable opportunities, between which it is difficult to discern at the surface level. However, looking across all three subindices of the top 10 reveals a picture of asymmetric competition most evident in the business environments offered by the Middle Eastern and South East Asian markets. Building a significant advantage in business fundamentals through regulatory environments which create confidence for investors has proven a viable strategy for driving performance and potential as a logistics market, as the UAE and Malaysia demonstrate. Conversely, the Philippines, which achieves top 15 rankings for both domestic and international logistics opportunities, ranks 34th overall for business fundamentals – primarily the result of a legislative and judiciary system that fails to

the top 10 reveals asymmetric competition most evident in the business environments offered by Middle eastern and south east asian markets”

ensure protection of investments and contracts. “The larger point here, though, is that success and potential as an emerging logistics market in 2019 requires coherence of policy across and throughout a market’s business environment, and that this can significantly enhance a market’s potential if designed and implemented effectively. Given that it is a measure over which markets have near full control, poor performance is an opportunity lost,” says the report. Beyond China and India, the third-place ranking of the UAE is a result of exceptional performance in the business fundamentals sub-Index, combined with solid development of domestic and international logistics markets. Capabilities across the measures have been developed as part of a plan to position the UAE as a global trade and tourism hub. “The high ranking of the UAE’s business environment is primarily a result of its network of free trade zones, and the rules that govern foreign businesses within them. Inside free

FEATURE

zones, foreign companies can own up to 100% equity, receive a 100% import and export tax exemption, and repatriate 100% of capital and profits,” explains the report. “These free zones form a vital component of the local economy and serve as major re-export centres to the Gulf region. Free zones in the UAE are home to more than 20,000 companies. For the logistics sector, the most important is the Jebel Ali Free Zone, where more than 300 logistics providers from 30 countries are based, many offering contract logistics and freight forwarding services.” According to the report authors, rhe UAE is trying to position itself to be the region’s e-commerce hub by encouraging new businesses and start-ups such as Shipa.com and luring global talent and investment through ambitious projects such as Commercity in Dubai. “The UAE’s logistics markets have also benefitted greatly from vast investment in physical infrastructure. Domestically, the UAE is investing in big ticket infrastructure projects such as the $3.5bn Al MafraqAl Ghuwaifat road upgrade and the creation of a 1,200 km rail network. “The market is also undertaking expansions at its main air and sea ports. Jebel Ali, which serves as a multi-modal hub and free zone and facilitates domestic, regional and global trade flows, connecting the UAE with 140 ports worldwide, is undergoing expansions to increase handling capacity to 22.1m TEU.” Saudi Arabia’s 6th overall ranking is primarily a result of notable improvement in its business environment, a theme which is common across Middle Eastern markets. It is a strength that will be key to the Kingdom’s ability to transform its economy under the ambitious Vision 2030 strategy. “Announced in 2016, Vision 2030 aims to position Saudi Arabia as an investment powerhouse and a logistics hub connecting three continents. To achieve this, the strategy emphasises economic diversification away from dependence on oil, aiming to grow non-oil revenues tenfold by 2030. The Saudi government has instigated significant expansion of the road and rail networks, as well as the country’s airports in recent years, while also creating free trade and industrial zones, such as the Industrial Valley in King Abdullah Economic City, to boost economic growth. “Saudi Arabia has prioritised development of its sea ports in particular. Some 95% of its imports and exports pass through its sea ports, of which all but one are owned by the Saudi Ports Authority, whilst being managed and operated by the private sector. The new King Abdullah Port has a single-window Port Community System which integrates

RISK OF A TRADE WAR The sector is concern that a trade war between China and the US could effect the entire sector.

regulatory and logistics data, and makes port operations more efficient. It also has a Smart Gate System which automates security functions such as authenticating the identity of the driver, vehicle and cargo, as well as reducing the volume of traffic inside the port by only allowing in trucks that have an appointment.” According to the report, Vision 2030 will also create demand for logistics services in other areas of the Saudi economy. The petroleum sector accounts for roughly 87% of budget revenues, 42% of GDP and 90% of export earnings. “At a time of low oil prices, Saudi Arabia is encouraging the growth of the private sector

high ranking of Uae result of free trade zones, and rules that govern foreign firms”

in order to diversify its economy and employ more Saudi nationals. The government has approached investors about expanding the role of the private sector in the healthcare, education and tourism industries. Its Vision 2030 strategy aims to increase the private sector’s contribution from 40% to 65% of GDP. The Saudi e-commerce market is estimated to have reached $5.7bn in 2017, as increasing numbers of Saudis gain access to the internet. However, consumer preference for cash on delivery and cyber security remain barriers to growth. In addition, November 2018 saw the inauguration of Waad Al-Shamaal mining city, which is expected to create around 10,000 jobs.” This year’s report also includes a look at the markets with the most favourable conditions for growth in the sector and it is dominated by the Middle East, with five of the top 10 ranking positions occupied by emerging markets from the region. In top position is the UAE, where business fundamentals are strong across much of the economy for foreign investors. In particular, the Emirates have put into place a business environment that provides a robust financial sector, a transparent regulatory system and frameworks that offer protection from corruption, ensure property rights and enforce contracts. “Saudi Arabia’s 5th rank is driven by a similar set of strengths, although access to certain sectors of its economy remains more restrictive. The Kingdom’s ambitious Vision 2030 strategy aims to attract foreign investors with the expertise to power more diversified growth and develop local capabilities. This, however, THE POWER OF InvESTmEnT The UAE’s logistics markets have benefitted greatly from vast investment in physical infrastructure.

APRIL 2019 TRUCK&FLEET ME 21

FEATURE

will require consolidation of regulations to attract foreign investment, create new jobs and transfer private sector skills to the public sector, areas where the Saudi business environment still lags behind global standards. The region’s other high performing markets are Oman and Bahrain, which both gain top 10 ranking positions as a result of favourable regulatory environments for foreign investors and low disruption to business from crime and violence.” The UAE remains the top location for FDI in the region, taking up 26% of all FDI projects in 2017, according to fDi. In the same year, the report continues, Saudi Arabia saw capital investment fall 42% and a 14% decrease in overall FDI projects. Indeed, attracting foreign investors is a key pillar in many of the economic diversification plans across the region, and developing strong business environments has

taken on new impetus since the price of oil began to fall in 2014. A diversified economy is essential in dealing both with the dynamics of global energy markets, but also in creating opportunities for investment and job creation. “Every year, the economies of the Arabian Gulf have been the pacesetters when it comes to emerging markets business fundamentals among the 50 Index countries,” says Agility. “This year is no different. There has been a healthy competition among Gulf nations – UAE (1), Qatar (3), Oman (4), Saudi Arabia (5), Bahrain (8), Kuwait (11) – which have pushed themselves to improve the business environment in order to diversify their economies, attract investment and technology, spur new-business growth, nurture startups, create private sector jobs, and establish conditions for long-term growth and prosperity.

the Kingdom’s strategy aims to attract investors with expertise to power diversified growth and develop local capabilities”

“The Index draws, in part, on data from the World Bank’s annual Doing Business report, which looks at what it takes to start a business, get a permit, hook up electricity, register property and get credit, in addition to protections in place for minority and foreign investors. The World Bank rankings show emerging markets alongside developed markets and mature economies. It’s clear from those rankings that the Gulf countries and others emerging economies still have much ground to cover before they rank with New Zealand, Singapore, Denmark and the other developed nations in business fundamentals. What’s encouraging is that policy makers in the Gulf and other emerging markets are more eager than ever to listen, innovate, adapt and change.” Read Agility’s latest Emerging Markets Logistics Index online at: agility.com

InvESTmEnT In LOgISTIcS InFRASTRUcTURE bEgInS TO PAy OFF Infrastructure investment, smart policy is paying off for emerging markets, says Essa Al-Saleh, CEO & President of Agility Global Integrated Logistics. “A year ago, the world economy was outperforming expectations, and emerging markets were leading the way. Then robust growth in the United States pushed up interest rates and hurt countries with dollar debt such as Turkey and Argentina. China’s economy began braking. New international sanctions suppressed output and trade in Russia and Iran. Trade tensions – between the US and China, US and Mexico, and UK and its European Union partners – generated uncertainty that rippled through the global economy.

22 TRUCK&FLEET ME APRIL 2019

Heading into 2019, the world is bracing for deceleration in its three major economies: the US, China and the EU. Since July, the International Monetary Fund has cut its global growth 2019 forecast from 3.9% to 3.5% and dropped its forecast for emerging markets from 5.1% to 4.5%. “Concerns are valid, but remember that emerging markets as a group will still grow at more than twice the pace of developed economies. Also worth noting is that troubled emerging economies weathered their downdrafts in 2018 far better than they have in the past: there was no sign of the “contagion” that shot through them in 2013 and 2008. “The 10th annual Agility

Emerging Markets Logistics Index gives readers the opportunity to get beyond the macro picture - to look at the narratives of individual countries and regions, and to marvel at the results that come from shrewd policy making and smart logistics infrastructure investment. There are reasons for optimism in the data and in our survey of 500+ logistics industry executives. Among the examples are India’s astonishing transformation, the aggressive business reforms in Arabian Gulf economies, the growing middle class in Africa, or the fresh potential for renewal in sleeping giant Brazil. “Even where news is worrisome, it’s not all gloom. “Amid China’s

slowdown, rapid changes in buying habits are powering e-commerce and driving creation of a vast, modern domestic logistics and delivery network. “The UK’s problematic Brexit is seen by our survey respondents as something that will lead to favourable trade deals with London. And perhaps the best news is that long-forgotten small and medium-sized businesses are finally getting some attention and respect. Global logistics executives see SMEs – which account for most economic activity and job creation in emerging markets – as the businesses that will grow the fastest in the next few years.”

EXPERTS

HaulIng InTo THE grEEn

Kushal nahata, CEo, FarEye on how logistics can help the environment

ver since the industrial revolution, there has been significant changes in the environment due to human activities. Environmental degradation due to pollution and other human activities pose a serious threat to mankind. There is a need for all industries to embrace the goal of sustainable development and commitment towards environmental protection. Government regulations and growing awareness among the people has made it imperative for businesses to come up with business strategies that incorporate sustainability goals in their agenda. Logistics is one of the most important part in the business value chain across all industries. The transportation of goods via different vehicles is a source of carbon emission and adversely affects the environment. There is a growing need for players in this segment to integrate 24 TRUCK&FLEET ME APRIL 2019

‘green’ methods in their operations. There have been significant developments in the logistics sector that have helped enterprises reduce the damages to the environment. The adoption of digital logistics has been a game-changer in this field. The use of advanced analytics and machine learning algorithms are making logistics operations much more environment friendly. The key functionalities helping the cause are: • Capacity utilisation

There is a huge problem of LTL (Less Than Truck Load) in the logistics industry which increases cost and adds more carbon to the atmosphere. Digital logistics helps in utilising the full capacity of not only trucks but also other vehicles in the fleet. This is achieved by the use of sophisticated algorithms. Higher capacity utilization leads to less number of trips and subsequently lead to lower emission of greenhouse gases and pollutants. • Auto-routing

Digital logistics and the application of other emerging technologies like big data analytics, IoT, drones will be necessary to devise growth”

The adoption of software-based auto-routing instead of traditional spreadsheet based approach is unlocking new efficiencies in the value chain. Algorithm-based auto routing provides best routes for goods transport thereby reducing the distance traversed by the fleet. It also reduces the time spent in traffic jams. This helps in reducing the fuel consumption and the emission of CO2 and other gases by a significant margin. • Electronic documentation

The traditional documentation process during shipping, receiving and transit requires a lot of paper which has a direct link to deforestation. Digital logistics makes the entire documentation process automated and electronic, thereby significantly contributing to reduce deforestation by foregoing the usage of massive amounts of paper. TrEnds in logisTiCs

The logistics industry is set to be in

EXPERTS

in its ‘Prime Air’ service. Drones are more efficient as they need to cover much lesser distance than on-road fleets and are battery operated. The usage of drones in the future would lower the overall environmental impact of firms in the logistics sector. • ioT

IoT (Internet of Things) is an ecosystem of connected devices that communicate in real time. Cloud-based RFID chips, GPS trackers, advanced vehicle telematics, sensors constitute IoT. It makes communication possible between infrastructure and vehicle, vehicle and vehicle, infrastructure and infrastructure. The seamless flow of information would help in optimizing the entire network and scheduling; reducing distance traversed and idle engine time thereby reducing greenhouse gas emission. Smart sensors placed in vehicles would help in continuously monitoring the fuel emission and help keep negative impact on the environment in check. The Middle East region is the strategic hub for international trade and commerce between the east and the west. According to Statista, the revenue generated by the Logistics sector in the Middle East is $40.2 billion as of 2016. The logistics industry is set to grow in both value and volume in the future. The growth in this sector also provides challenges in devising strategies to counter the environmental impact of the same. Digital logistics and the application of other emerging technologies like big data analytics, IoT, drone et al. will be necessary

logisTiCs mUsT go digiTAl Digital logistics and the application of other eme rging technologies like big data analytics, IoT, drones, will all be necessary to devise a sustainable gro wth in this sector, says Nahata.

Digital logistics helps in utilising the full capacity of not only trucks but also other vehicles”

to devise a sustainable growth in this sector. As per A. T. Kearney analysis, the number of vehicles on the road is expected to double from 16 million in 2016 to 30 million by 2025. The application of IoT in the infrastructure and transportation sector could potentially lower $117 million in fuel costs to about half by 2025 resulting in massive decrease in the greenhouse gas emission and make the logistics industry much more environment friendly. The logistics industry is playing its part in reducing damage to the environment caused due to human activities and with the speedy adoption of smarter technologies, the future is going to get better.

the cusp of technological revolution. New breakthroughs in technologies and their rapid adoption would help industries reduce their carbon footprint and be more environmentally responsible. The key trends are: • Electrified logistics fleet

Logistics service providers are experimenting with the use of electric vehicles in their fleet. Some players are using e-bikes for innercity deliveries. The application of electric vehicles has been concentrated in the last mile segment as of now. The shift from hydrocarbon vehicles to electric vehicles will significantly lower the environmental impact of logistics operations. • UAV/drone

The usage of UAVs (Unmanned Aerial Vehicle) in logistics is in nascent state. However, companies like Amazon, DHL, Google are experimenting in this field. Amazon has even started delivery via drones

A gAmE ChAngEr The adoption of digital logistics has been a game-changer in the field. The use of advanced analytics and machine-learning algorithms are making logistics operations much more environmentally friendly.

APRIL 2019 TRUCK&FLEET ME 25

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TUBELESS VS TUBE TYPE TIRES

Giti Tires on how to spot the key differences Brought to you by

hen we talk about radial tires, there are two types of technologies that are in common use. The older Tube Type tires require tubes inside to retain the air pressure, while the more current Tubeless tires donâ&#x20AC;&#x2122;t need tubes to retain air pressure, as the air is retained by the integral inner liner. Below are the main differences between Tubeless & Tube Type tires. After going through these details, we are sure that you can judge by yourself which is an overall better option.

Tube Tire: Up to 7 Basic Components

Tubeless Tire: 3 Basic Components Valve

Steel Wheel

Tire

Lock Ring

Side Mounting Ring and Alloy Wheel

Flap and Mounting Ring

Tube with Air Valve

Tire

Advantages of Tubeless Tire

Constraints of Tube Type Tires

Fewer Integrating parts increase the rotating efficiency of the tire.

Many integrating parts lower the rotating efficiency of the tire.

Lower abrasion and rolling resistance because of limited fitting parts.

Higher rolling resistance and abrasion, due to more fitting parts.

Improved heat dissipation and low temperature when rolling,which extends the lifespan of the tire.

Inefficient heat dissipation increases the temperature of the tire during rotation and shortens the life span of the tire.

With better contact with road surfaces, the tire footprint has more of a rectangular shape. Lower fuel consumption and extended tire life.

Tire tread surface contact with the ground is oval shape, easy to get irregular wear.

Slower air leakage if the tire punctures.

Fast air leakage if the tire punctures.

Lower fuel consumption, because of the light weight and limited fitting parts with reduced rolling resistance.

Higher fuel consumption due to heavy weights of more fitting parts.

WEIGHT COMPARISON OF TUBELESS TIRE VS TUBE TYPE TIRE

Outer Casing

70.27kg

A A

B Outer Casing

64.21kg

Rim and Air Valve

47.55kg Total Weight

111.76kg

10%

lighter compared to tube tires

C D

Tube and Air Valve

4.05kg

Flap and Mounting Ring

2.91kg

Side Mounting Ring and Rim

39.7kg

Lock Ring E

7.6kg

Total Weight

124.53kg

Giti GAL817 12R22.5 18PR

Giti GAR558 11.00R20 18PR

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APOLLO TYRES WInS PRESTIGIOuS PRIzE / RTA TRIALS RObOT cLEAnERS / GEnERAL TYRE nEW SuMMER RAnGE / LTS LOOKInG bEYOnd KSA

workshop

Apollo Tyres wins Golden Peacock prize PRESTIGIOuS AWARd HAndEd OuT fOR APOLLO ALPHA H1 TYRES The prestigious 2019 Golden Peacock Award for the ‘Innovative Product/ Service Award’ has been won by Apollo Tyres. The firm was recognised for the development of India’s first zero degree steel belted motorcycle radial tyre, the Apollo Alpha H1. The award was presented to Apollo’s regional head Mohammed Loubani and

its chief R&D officer P K Mohamed during the 29th World Congress on Leadership for BUSINESS EXCELLENCE & INNOVATION at the Habtoor Palace in Dubai last month. The Golden Peacock awards were first started by India’s Institute of Directors in 1991 and recognises global achievement in business. It is considered one of the most prestigious awards businesses can win.

SPEcIAL REcOGnITIOn The award was presented to Apollo’s regional head Mohammed Loubani and chief R&D officer P K Mohamed during the 29th World Congress on Leadership for BUSINESS EXCELLENCE & INNOVATION.

The Apollo Alpha-H1 is the company’s first motorcycle steel radial tyre that’s designed to meet the demands of high performance motorcycles. The Alpha-H1 is designed for both road and track use and promises optimum grip along with improved tread life. Apollo claims that the Alpha-H1 offers 50% more tread life than many premium tyres whilst offering similar performance levels.

rTA begins TriAling roboT cleAners for meTro RObOTIcS

The Roads and Transport Authority (RTA) is trialing robots to clean Dubai’s metro stations. The move is part of the RTA’s efforts to support the UAE Artificial Intelligence Strategy and realise RTA’s first strategic goal (Smart Dubai). “The use of robots in cleaning is an experimental step considered the first of its kind worldwide. Once the success of the trial is verified, the technology will be deployed in other stations,” said Mohammed Hasan Al Amiri, director of Rail Maintenance, RTA. The robot is designed to be effective at reducing the amount of water used, while also providing better sterilising. Amiri added, “It can also be pre-set to perform automated cleaning patterns of floors, without human intervention except for limited and simple steps such as adding water and programming.“

InSIdE THIS MOnTH’S WORKSHOP: THE ROAdS Of THE fuTuRE, fLEET EffIcIEncY GuIdE And AdvIcE, 2019 bAuMA PREvIEW, And MucH MORE! 28 TRUCK&FLEET ME APRIL 2019

WORKSHOP

HYSTER cHOOSES Mbz/MTu fOR ‘bIG TRucK’

generAl Tire lAunches summer Tyre rAnge TYRES

General Tire says its new summer tyre ranges – Altimax One and Altimax One S – will arrive in the Middle East in the second quarter of 2019. General Tire, a brand of the premium German tyre and automotive technology company, Continental, has applied its ‘anywhere is possible’ know-how to offer motorists a tyre designed to provide them with total confidence as well as an enjoyable and safe driving experience in varied weather conditions. The Altimax One and Altimax One S tyres feature the robust characteristics and high grip for which General Tire is renowned. New rigid shoulder blocks and a continuous rib structure in the centre offer precise handling and outstanding braking on dry roads that the region is known for. As successors to the Altimax Comfort and Altimax Sport, the Altimax One and Altimax One S offer reliable dry performance, increased wet grip and mileage. Ricardo Martins, head of marketing, Continental Middle East, said: “General Tire has been delivering top quality tyres for the last 100 years. A Continental brand since 1987, General Tire’s latest range of summer tyres - The Altimax One and Altimax One S tyres - will increase our customers’ driving experiences here in the region by providing them with the confidence they need to tackle the dry and diverse terrains.”

EnGInE Hyster Europe says it will power its forthcoming Stage V compliant Big Truck range for European customers by Mercedes-Benz/ MTU engines. “Our heavy industry and port customers in Europe who will require a Stage V driveline, can continue to expect highly efficient trucks with low fuel and DEF consumption, benefiting from high productivity levels and fast operations with the power available.” says Jan Willem van den Brand, Director Big Truck Product Strategy & Solutions at Hyster Europe. Hyster lift trucks over 8 tonnes, Container Handlers and Reachstackers will be equipped with the Stage V-compliant MercedesBenz/ MTU Series 1000 and 1100 engines. The exact availability

varies per series and will be communicated in due course. The engines have been specially designed for industrial applications such as material handling and further developed to meet EU Stage V regulations. They are based on commercial vehicle engines from Daimler. Lars Kräft, VP Industrial Business at MTU, said: “We are very pleased, that Hyster, one of the leading global brands of materials handling equipment, decided to power its new vehicles with our engines.” The Mercedes-Benz/MTU engines

will support the Hyster® Big Trucks. They are proven to deliver reduced Total Cost of Ownership (TCO), reliability and performance in tough, heavy-duty applications. “Mercedes-Benz/ MTU engines have a highly successful track record in both on-road and offroad applications such as forestry or agriculture. They are also particularly suited to intermittent applications like our business serves,” said van den Brand, explaining that the power ratings range from 129kW to 280kW.

LTS LOOKInG bEYOnd SAudI MARKET fMS

Logistics Technology is planning to launch its portfolio of IoT services in the Gulf Cooperation Council (GCC) countries followed by the Middle East and Africa in the next three years. The new expansion strategy was unveiled by Eng. Bader Juwaied, CEO LTS, at the recently-held Saudi International Exhibition and Conference for the Internet of Things (IoT). As the Silver sponsor of the mega

event, LTS took the opportunity to showcase its pioneering experiences in the implementation of IoT solutions to the Middle East’s most influential audience in the field of ICT. “As regional enterprises continue to go through their digital transformation journeys, they seek a trusted partner with the depth and breadth of experience in the implementation of modern digital solutions. As a partner who speaks

TAKInG THE nEXT STEP The IoT solutions market in the GCC is poised for robust growth as regional governments are increasingly investing in next-generation technologies to move their economies away from reliance on oil, says LTS.

their language, understands their issues and helps meeting their goals, LTS is now planning to offer its highly-reputed IoT services in other GCC countries followed by the Middle East and Africa,” commented Eng. Bader Juwaied. “The IoT solutions market in the GCC is poised for robust growth as regional governments are increasingly investing in next-generation technologies to move their economies away from reliance on oil, Moreover, the next-generation technologies are creating massive opportunities for economic transformation and could lead to an industrial revolution, globally referred as the Fourth Industrial Revolution” Eng. Bader Juwaied stated. LTS, which started operations in KSA in 2010, offers fleet management solution and technical services to the industry projects including IoT, Oil & Gas, Petrochemical, Manufacturing and Utilities, and the support services include design, engineering and implementation. APRIL 2019 TRUCK&FLEET ME 29

Show PRevIew

An industry evolving

Bauma organiser Messe München looks at the evolving construction industry

igitisation is gaining ground in the construction machinery industry. More and more technologies are making their way into the industry. Cloud-based infrastructures, digital services portfolios and security solutions are ringing in a change of paradigm. During Bauma this month, the world’s leading manufacturers will be presenting their developments demonstrating that it is possible to realise and automate construction projects more efficiently, faster and more cost-effectively without having to sacrifice quality. In order to achieve this, all stakeholders must, for instance, be perfectly connected with each other, and the processes must be handled electronically. Initial systems for these purposes already exist. They can be seen next year at bauma, the world’s leading trade fair for construction machinery, building material machines, mining machines, construction

30 TRUCK&FLEET ME APRIL 2019

vehicles and construction equipment. “The digitisation of the construction industry is becoming increasingly important. Many construction machines are already equipped with communication interfaces that provide comprehensive data, e.g. on location and consumption. This development is also reflected at bauma 2019. They will not only be able to find out about initial technologies, but also exchange views with the exhibitors about their potential,” says Mareile Kästner, project manager at bauma. Coordinating all the activities of several construction sites, sometimes located thousands of miles apart, at the same time— this is no longer a vision of the future. Already today, cloud-based solutions enable projects like these. Planning, implementation, monitoring and optimisation of construction projects are consequently running fully digitised. Construction site vehicles can now even be controlled and managed by various

the vr experience at bauma will unleash the possibilities of what vr and Ar technology can be used for in construction”

technologies. For example, special sensors register the direction of rotation of concrete mixing vehicles and thus record the unloading process. And digitisation does not stop at height either. Cranes at various locations, for instance, are already controlled remotely from a central control centre so that they can carry out their work ‘driverless’. Digital innovations are increasingly shaping our everyday lives—including in the construction machinery industry. Thanks to virtual and augmented reality (VR/AR), users can now experience construction sites virtually and be part of the story in the middle of the action. It is not just an experience with deceptively real sensations and high entertainment value. VR and AR can be used to present products in the development phase, prototypes, or future scenarios and explain them in a completely new way. This opens up a whole host of new opportunities for companies. “With our digital construction site, we have

Show PRevIew

DeButS fRoM gooDyeAR Goodyear Omnitrac mixed service tyre range will make its exhibition debut at the show. It will also showcase its Goodyear Proactive Solutions TPMS Heavy Duty, EMTrack tyre management system and the TL-4A OTR tyre.

ScAnIA MuScLeS In on BAuMA Five construction trucks will be presented by Scania, including the new XT heavy tipper. Visitors can also experience the updated fuel-saving DC09 and DC13 engine ranges.

DIgItAL conStRuctIon The Fuso Canter, fitting in just below the Atego, with a permissible gross vehicle weight of between 3.5t and 8.55t rounds off Daimler’s construction-site vehicle portfolio at the show.

DAIMLeR In fuLL StRength Daimler will be showing a total of 22 vehicles for almost every construction segment application in the 2100 m² Hall B4 has to offer and on the 600 m² of open-air grounds.

created a platform that enables exhibitors’ products to be experienced not only at the actual exhibition stand but in any location. We offer the virtual exhibition space within a VR Experience. For the first time, companies at bauma 2019 will be able to present themselves completely digitally,” says Kästner. It is a virtual experience with high added value for daily business, opening up completely new possibilities for planning and development, but also basic/further training or sales. “Anyone wanting to train their apprentices under realistic conditions – in machine maintenance, for example – or looking to explain the inner workings of a crane to the customer, no longer has to even leave the site,” explains Kästner. Maria Scully of Trimble Civil Engineering and Construction highlights the potential of VR/AR for Trimble’s business: “We will connect construction by offering a suite of integrated solutions. Solutions that provide seamless data movement and data visualisation.

SiteVision is an example of this, a new solution providing high-accuracy outdoor augmented reality for the construction industry. The VR Experience at bauma will not only introduce and highlight the benefits of SiteVision, it will unleash the possibilities of what VR and AR technology can be used for in construction.” “As an innovative mechanical engineering company, we see promising opportunities for our organization in the possibilities offered by digitalisation. For example, topics such as virtual reality enable us to also present our construction hoists and industrial elevators to international customers in a lifelike environment. We look forward to being involved in the VR Experience at bauma 2019,” says Jürgen Deffner, head of marketing at GEDA. With the bauma VR Experience, it is not simply about just incorporating a digital format into the classic trade fair business: “It definitely gets emotional! It will be an unforgettable experience, especially when the

electromobility and driverless vehicles are gaining traction with manufacturers and service providers in the construction machinery industry”

surface of the earth opens and the elevator takes the visitor to lofty heights,” says Kästner. Visitors and exhibitors can get an accurate impression of this at bauma 2019 in hall B0. Continental, which will be familiar to readers as a tyre company but as T&FME learned recently is moving into the technology space, is presenting its new ContiLogger consultancy concept which incorporates tyres, hardware, software and data. This allows Continental to link end customer and Continental expertise even more closely. When using the ContiLogger service, a Continental engineer will first conduct a field study to understand the working environment in which the tires will operate. They will also use a data logger to measure speed, distance, location, lateral forces, elevation change, road grade, cycle downtime and the pressure and temperature of the tires. By analysing this on-site data, the engineer can identify data-driven observations. APRIL 2019 TRUCK&FLEET ME 31

Show Preview

An eye on the event Daimler says the new Actros and Arocs for the heavy-duty segment are highlights at the Mercedes-Benz Bauma stand.

After revising and analysing the data, the engineer will make recommendations regarding significant tire challenges and possible application improvements aimed at optimizing tire and equipment life and improving operational processes. “This is a holistic concept because it involves evaluating the application as a whole. We see this as extremely important in the OTR earthmoving business, where conditions are exceptionally harsh and the high cost of replacing tires means that proper tire servicing and consulting are essential,” says Enno Straten, head of Continental Commercial Specialty Tires (CST). The construction machinery industry is increasingly opting for alternative drives. In the future there will no longer be one single typical drive system but instead an increasingly wide range of competing drive systems on the market. Electromobility and driverless vehicles in particular are seen as key future drivers. “We have identified that electromobility and driverless vehicles are two areas that are increasingly gaining traction with manufacturers and service providers in the construction machinery industry. As such, we intend to provide these hot topics with a platform at bauma 2019. The important thing to note is that we won’t only be showcasing the diverse range of possible applications of leading exhibitors’ products but will also be 32 TRUCK&FLEET ME APRIL 2019

At bauma 2019, they will not only be able to find out about initial technologies, but also exchange views with the exhibitors”

providing a platform for discussing the aims, potential and sustainability of new technology,” says Kästner. Producing cleaner, quieter and more efficient machinery is the future aim of electrification, according to many manufacturers of construction machinery. In fact, more and more companies are already upgrading smaller machines in the lower power range with electric drives. There is also growing interest in hybrid vehicles. As such, systems, which can handle light work but then engage a combustion engine where maximum power is required, are already under development. Solutions to enable driverless construction machinery already exist in certain areas of the mining industry and other related areas. They are particularly suitable for use in quarries as the same routes are always followed from the actual quarrying site to the processing area. There are also future plans for excavators, which, for example, will be able to dig excavation pits autonomously. Although a lot of preparatory work has already been done, driverless machines are not yet something which can be fully accomplished or implemented due to the safety aspects involved at complex construction sites. The latest developments of leading manufacturers all around the world will therefore be the hot topic under the spotlight. The “Driverless Vehicles, Electromobility & Electric Drives and Zero Emissions” area will focus primarily on aspects regarding autonomous driving. Will there only be autonomous and networked systems in the future? Are we now digitalising everything? Not everything that is technologically possible is also useful and cost-effective. As such, exhibitors and trade fair attendees will have the opportunity to question aims and provide fitting responses together.

the DRIve to DIgItISAtIon The willingness to invest in the construction machinery industry is on a very high level globally and continues to be regarded cautiously optimistic in the coming years. This is one of the findings of the “bauma Industry Barometer”, a representative study which polled approximately 10,000 industry experts over a period of two months (June/August 2018). 44% of the respondents are planning to increase the investment volume for their company in the future. In a regional/country comparison, Africa (68%) and Asia (67%), in particular, are optimistic about the investment trend. The figure for Europe is at 42%. At 39%, Germany is a little more skeptical. “During the bauma year 2019, the industry is doing brilliantly. The majority of the respondents assume that investments will remain at a high level. This illustrates the extraordinarily positive mood with regard to the economic development of the industry. But it also shows that an above-average willingness to invest in order to remain competitive in the long-term,” says Klaus Dittrich, CEO of Messe München, assessing the investment-keen climate. More than half of the respondents (58%) regard the shortage of skilled workers as the greatest challenge for the industry. This is a major problem, especially for the traditional industrialised countries, but less so for populous countries such as China and India. Other key challenges include competitive and price pressure (31%), tighter environmental laws and regulations (24%) and the digitisation of business processes (19%).

Bringing the latest

construction news from across the GCC

FEATURE

A nEW ERA FoR RoAd dEsIgn New construction materials are offering fascinating alternatives with inbuilt renewability capabilities.

Re-imaging the Road Aurecon’s Anton Hartman looks at the future of roads

prawled across a bike path in Nuenen, Netherlands, 50,000 solar-powered stones are embedded on the pavement to glow in the dark and resemble Vincent van Gogh’s famous “The Starry Night”. It was a commemoration of the 125th anniversary of the painter’s death: a techno-poetry that Dutch artist and urban architect Daan Roosegaarde describes as “technical combined with experience”, a fusion of art and purpose. But more than honouring one of the most famous artists and paintings in history, Roosegaarde’s genius, unconventional, and sustainable idea of lighting up our pavements is a statement on the transformation of our roads for the future, or the lack thereof. “Why do we put so much focus on vehicles, innovation and mobility but neglect the surfaces they drive on?” he asks. “Infrastructure defines our cities and

34 TRUCK&FLEET ME APRIL 2019

landscapes way more than the cars.” It seems that in our journey to the autonomous future, we have forgotten our roads, literally. But it’s inevitable, as the Fourth Industrial Revolution ushers extraordinary technologies, that the way we conceptualise and build our roadways will be utterly configured. What’s the use of having smart cars if our roads are dumb? And with opportunities for innovative reinvention as never before, is it quite possible that we are coming to the end of roads as we know them? WHAT oUR RoAds WILL bE mAdE oF…

Realities such as globalisation and urban overpopulation are demanding we replace our traditional materials and techniques with more sustainable solutions, as well as the fossil fuel guzzlers that wear out its pavement. New construction materials are offering fascinating alternatives with inbuilt

Why do we put so much focus on vehicles but neglect the surfaces they drive on?”

renewability capabilities. Dr Rajagopalan Vasudevan, dean and professor of chemistry at India’s Thiagarajar College of Engineering, found that plastic, when molten and mixed with a stone and bitumen mix, has been proven to be an excellent binder and creates a stronger and longer-lasting road. An estimated 100,000 km of roads in India are actually made up of plastic, inspiring companies like MacRebur Plastic Roads Company to use it as well to build roads in the UK, Canada, Australia and New Zealand. Similarly, the use of fly ash and slags from mineral refineries in concrete construction has proven beneficial in reducing carbon emissions and for the disposal and neutralising of waste. And innovations like self-healing concrete are extending the lifespan of old concrete, with selfactivating limestone-producing bacteria that congeal in pavement cracks as they form. Modern pavement engineers are constantly

FEATURE

pushing the boundaries of form and function, seeking more effective ways to close the loop on conventional construction outputs. Architects Carlo Ratti Associati (CRA) and Sidewalk Labs (owned by Google’s Alphabet) recently teamed up and launched a prototype of Dynamic Street, a series of “hexagonal modular pavers which can be picked up and replaced within hours or even minutes”, and enable us to change the function of the road with much lesser disruptions to the street. “The project explores the different patterns that can be created on the hexagonal grid, as well as the integration of lights into individual pavers. Each paver can also potentially host a plug and play element – that is, vertical structures such as poles, bollards or even basketball hoops,” according to CRA. Just imagine how that would transform the construction and function of our roads. ‘FREAkIng’ soLAR coUP

Solar roads may just be the solar industry’s prized jewel, thanks to their large exposed surfacing that can harness solar energy to illuminate road markings and generate electricity. As Roosegaarde puts it: “Energy is everywhere. We just need to

HARnEssIng EnERgy The N329 in the Netherlands has replaced streetlamps with glow-in-the-dark lines on the pavement.

know how to harvest it.” While there have been criticisms on its efficiency and cost-effectiveness compared with rooftop solar panels, several projects around the world continue to work on developing the technology and explore how roads can play a greater role in generating energy. In the Netherlands, the N329 – Road of the Future has replaced streetlamps with glow-in-the-dark lines on the pavement made of photoluminescent paint, designed for recharging by sunlight before glowing at night for up to 10 hours. North Holland’s Dutch SolaRoad project created a 100 m cycleway pilot project that generated enough electricity to power one household for a year.

each paver can also potentially host a plug and play element – such as poles or bollards”

And most notable is China’s latest 1000 m-long smart road. Paved with solar panels, mapping sensors and electric-battery rechargers, the pilot project aims to be the first stage of ‘intelligent highway’ design that weaves the Autonomous Vehicle (AV) revolution into one digital and unique experience. ‘smARTEnIng’ oUR RoAds

Coupled with the current wave of innovation to design for sustainability, there is an equal imperative to see our new and old infrastructure becoming smarter. As autonomous vehicles increasingly dominate our streets and highways, our roads need to act as an intuitive and

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FEATURE

A sTARRy bIcycLE PATH Daan Roosegaarde designed Nuenen’s unique bicycle route using 50,000 solar-powered stones embedded on the pavement to glow in the dark and resemble Vincent van Gogh’s famous “The Starry Night”.

technologically integrated system that can host these new transport innovations. In the future, roads will no longer be seen simply as empty conduits to move vehicles from one place to another, but environmentally regenerative, digitally responsive networks. Magnetisable concrete, for example, is the latest invention that could potentially promise to revolutionise the Electric Vehicle (EV) industry. By embedding a highly controllable and resident coiled technology into a designated lane, EVs can charge up their vehicles on the go. The result is a streamlined highway, void of charging stations and an unbeatable value for money EV industry. Naturally, the reconstruction and

retrofitting of our roadways will demand a new eye when it comes to urban planning, as well as a new perspective when it comes to the nature of our public private partnerships. And, while all developments to transform our roads to become smart are still in the works, all sectors have to collectively start thinking ‘smart’ now before it’s too late. In fact, Singapore’s Smart Mobility 2030 is already consolidating perspectives and inputs from the Land Transport Authority (LTA) and the industry on how to develop a comprehensive and sustainable Intelligent Transport System (ITS) ecosystem in the country. It is also conducting research and development

dIgITALLy REsPonsIvE HIgHWAys Roads will no longer be seen simply as empty conduits to move vehicles, but environmentally regenerative, digitally responsive networks.

36 TRUCK&FLEET ME APRIL 2019

energy is everywhere. We just need to know how to harvest it”

of AV technology in preparation for the future deployments of AVs in Singapore. It makes sense. The AV revolution will require third-party involvement when it comes to planning, technology consulting, designing and other non-traditional services that accompany smart road development to make this utopian idea a reality. “Mobility is a fundamental right. It underpins all aspects of societal development allowing everyone, from individuals up to whole nations, to develop and prosper. ITS has already demonstrated (that it is) an essential tool for improving mobility and quality of life. The challenge now is to start using it to its full potential, to maximise the benefits that ITS can bring to society,” says Olga Landolfi, Telematica Trasporti e Sicurezza (TTS) Italia Secretary General in the International Road Federation Vienna Manifesto on ITS. In spite of all that they promise regarding road safety, ecological efficiency and connectivity, smart roads still have a long way to go in the public and private eye. Greater education, research and investment models are needed to expedite their roll out and pave the way for AV innovation. It’s not a question of which comes first, the road or the cars? If we want to make the dream of autonomous vehicles a reality, we have to remember the path we are travelling on. Aurecon’s award-winning blog, Just Imagine provides a glimpse into the future for curious readers, exploring ideas that are probable, possible and for the imagination. This post originally appeared on Aurecon’s Just Imagine blog. Get access to the latest blog posts as soon as they are published by subscribing to the blog.

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EXPERTS

Capital thinking

Sarah Wilkinson of Chevin looks at how you can understand your fleet management costs and learn how to reduce spending

hen it comes to the cost of fleet management, there are effectively two areas to look at: capital and operational costs. If you have a strong understanding of these areas of your fleet – and how to better manage them – then you have a very good chance of significantly reducing your fleet management costs. The capital costs of your fleet include: Acquisition costs, Ongoing financing of the vehicles; Deprecation (if you this is relevant to your funding). Not only does this include the actual figure of buying or leasing the car, but also the cost of acquiring the money to do so. If, for example, you are outright purchasing, you need to understand how much that capital outlay is costing the 38 TRUCK&FLEET ME APRIL 2019

company if the money has come through a lender. If the vehicle is leased, you’ll need to understand any tax advantages – or disadvantages – of that approach over the course of the vehicles’ fleet life. This can differ across companies, depending on accounting procedures and financial position, however, it is imperative that you start here when looking at your fleet management costs, otherwise the results of your subsequent calculations will always be skewed. A good fleet management company will be able to lay this out in black and white, and once you know your base financial position you can start to act. This obviously varies according to the way the vehicles are bought or leased, but there are some management issues you should consider that will help keep these costs on budget. Leasing generally accounts for about

Service, maintenance and repair (SMR) rates can have a big impact on your fleet management costs of ownership”

half a fleets total running costs, but if you employ fleet management you could reduce this proportion. Increasingly popular is a strategy of having a panel of preferred lenders in place rather than using a single leasing company – and asking them to tender for either individual vehicles or a selection at any one time. Taking this approach has the potential to cut your leasing costs by as much as 10%, but this does need to be managed strategically: just choosing the cheapest option every time doesn’t always work out in the long run. If you’re going to get your suppliers into a price war for supplying you with vehicles, you may well get some very impressive headline lease rates. But winning the business with the lowest price might result in much less accommodation from your supplier with wear and tear or excessive mileage issues at de-fleeting

EXPERTS

ThE PoWER of dEPRECIATIon Depreciation is a major part of capital cost, accounting for as much as 40% of the total cost of running a vehicle. As with buying or selling anything, striking a deal at the right time can be an art and for this it might well be worth getting a fleet management company in to help. From a fleet management perspective, there are many elements to consider right, from: • Picking vehicles with strong predicted used values • Working with the finance department to account for depreciation throughout the vehicle’s life on your books • Maintaining and looking after them properly • Ensuring they always have the right paperwork • Managing drivers so they look after them • Defleeting them at the right time

time or less competitive servicing costs. As with everything in fleet management, there is often a balance to be struck between front end prices and ongoing costs. The operational fleet management costs are those that come from day-to-day vehicle activity and the ongoing business of running them. Here are some of the main ones you’ll need to manage. Fuel cost is a major expense of running a fleet, and it can fluctuate depending on a wide range of factors that are sometimes out of your control. That said, from a fleet management perspective, there are some actions you can take. Choosing fuel-efficient vehicles (whatever their fuel type) is a start, and the new WLTP (Worldwide Harmonised Light Vehicle Test Procedure) regulations on official fuel economy figures should provide some clarity.

ConSIdER youR SERvICE PACkAgES Fleet should consider opting for packages, where servicing, tyres and general wear-and-tear is looked after by a fleet management or leasing company.

fuEL ouT of ConTRoL Fuel cost is a major expense of running a fleet, and it can fluctuate depending on a wide range of factors that are sometimes out of your control.

leasing accounts for about half a fleets total running costs, but if you employ fleet management you could reduce this”

Choosing the right type of fleet vehicle for the job is also important. For high mileage, diesel is still best, but whatever the fuel, buying it cheaply (either using a fuel card or specifying certain stations where possible) and keeping the vehicle in good condition will certainly help. Underinflated tyres can, for example, increase fuel consumption by up to 15%. Whatever insurance policy you currently have, you need to understand your risk first in order to reduce the costs of your next fleet insurance premium. So, you need to put in place a risk assessment (probably with the help of your insurer and fleet management company) to analyse your claims history and highlight areas that need to be worked on …perhaps by bringing in some fleet driver training or fitting telematics into vehicles. Service, maintenance and repair

(SMR) rates can have a big impact on your fleet management costs of ownership, and monthly leasing payments too. But it’s an area which is very hard to manage if you don’t have expertise in that area. A simple way is to opt for packages, where servicing, tyres and general wear-and-tear is looked after by a fleet management or leasing company. Alternatively, there are many systems which can monitor your servicing and repair work, with parts and labour prices guaranteed and service level agreements and KPIs in place for suppliers. Any time they fall outside those parameters, it is flagged up. This level of management will also give you a view on the operational behaviour of your fleet and business … and solving SMR issues could help vehicle downtime and make your business run more smoothly and efficiently. APRIL 2019 TRUCK&FLEET ME 39

PARTING SHOT

Renault Bounces Back

Huge rise in sales in Africa for Renault Trucks in 2018

runo Blin, President of Renault Trucks was understandably buoyant last month when he revealed how the company is turning around its fortunes. “In 2016 we launched our new strategy and implemented it in 2017 and 2018, and now we are harvesting the fruits of this strategy.” The French manufacturer says sales in Africa increased by 25% in 2018 as it ended the year with a total volume of 54,868 vehicles invoiced, up 10% on the previous year. Although it had further double digit increases in Europe and France, deliveries of Renault Trucks vehicles have fell 8.8% internationally,

with 4,457 trucks invoiced. This downturn can be explained by the introduction of import quotas in Algeria in 2018, said the company. In French-speaking Africa, Renault Trucks holds 20% of the premium range market (up by +1 point in 2018). It also recorded a ‘good performance’ in Turkey (plus 2.1 points with 5.8% of market share). Sales in the Middle East increased by +1.1 point helping the company gain a 6.4% market share. Renault Trucks ended 2018 with a total volume of 54,868 vehicles invoiced, up 10% on the previous year. The company said in a statement that it is continuing to develop

more fuel efficient models of its trucks. At the end of 2018, Renault Trucks announced the launch of the 2019 versions of the T, D and D Wide models, designed to reduce fuel consumption by up to 7% compared to previous versions. Renault Trucks is also continuing its research into improving the efficiency of diesel vehicles, with its Optifuel Lab 3 laboratory vehicle. The aim is to reduce fuel consumption by 13% for a full heavy vehicle unit by 2020, Renault Trucks is also launching its D and D Wide Z.E electric trucks in 2019, manufactured in its Blainville-sur-Orne factory. The Renault Master Z.E., on the other hand, is already being distributed in the Renault Trucks network.

NEXT ISSUE: T&FME IS IN BAHRAIN wITH RENAULT ANd Ud TRUckS, BAUMA ROUNd-UP, PREPARING FOR THE SUMMER ANd MUcH MORE!

40 TRUCK&FLEET ME APRIL 2019

BUILT TO DELIVER

The entire Renault Trucks range delivers an impressive fuel performance to drive the profitability of your business and to get the job done in all terrains.