Truck&Fleet ME September 2019 by CPI Trade Media

VEHICLES/ TECH / TRANSPORTATION/LOGISTICS

O68/SEPTEMBER 2O19

MIDDLE EAST

LI CENSED BY D U BAI D EVELO PM ENT AU TH O RIT Y

. . . K C A T T A O T K C A

D A O R X THE

on l a n o i t a n r e Int s k c u r T t l u e a b d l Ren u o c k c u r ed t s u s t i n e v e why ne o w e n r u o y better than

N A D E S T R S M A M G5 C H A L L E N G E S

EDAN COM PACT S T S E GM E NT E E L F L A N TR ADITIO

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UNRIVALLED PERFORMANCE 3.0 litre engine, up to 146 hp and 350 Nm

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THE ABSOLUTE DRIVING PLEASURE. A business oriented vehicle that features larger volumes, a more accessible loading platform and lower fuel consumption.

CONTENTS

CONTENTS FEATURE

14 / TIME FOR THE X-ROAD Why Renault Trucks International thinks its used trucks can be its killer app in the region.

ALSO THIS ISSUE … NETWORK

06 / NEWS FROM THE MONTH Careem and the RTA prepare to unleash the Hala service in the UAE, while VR comes to bus drivers.

LAUNCHES

10 / MG5 LAUNCHES IN UAE UK brand looks to challenge the fleet sector with the new and intelligent MG5. OPINION

14 / AN END TO CAR PARKS Should we start preparing for a future without the traditional car park? INTERVIEW

20 / ELECTRIC TRICKS The Ducato Electric launch marries fantasy and reality as it receives world premiere in Italy. FEATURE

24 / PORTS OF CALL Technology will change the links between sea and land – if equipment can learn to talk to each other. EVENT PREVIEW

34 / BUSWORLD 2019 A new venue for a sector undergoing rapid change in Europe. ANALYSIS

36 / THE CORE OF MOBILITY UITP highlights the trends and challenges that are shaping public and urban transport.

SEPTEMBER 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

DO YOU HAVE SOMETHING TO SAY THAT WE NEED TO HEAR? The plan for the first phase of Truck & Fleet Middle East – right from the outset – was to establish the magazine in the market, create a website of real value and information for fleets and distributors (if you haven’t done so already please drop by www.truckandfleetme.com) and finally create an event where the industry can come together. I am very fortunate to be able to travel across the region and further afield to meet some of the personalities and minds that are shaping this industry. Unfortunately, I am very rarely able to put everything that they are saying into the pages of the magazine, either because of space for discussions that move too far away from the topic in hand. However, I’ve always wanted to find a way for readers to get the same insight that I can. Consequently and very quietly, we been have putting together the very first Truck & Fleet Middle East conference over the past six months ahead of what we hope will be a very exciting addition to your diaries in December 2019. We are currently reaching out to all four corners of the globe’s industry to get what we hope will be a stellar line-up of speakers covering topics such as trends in the market, fleet advice, threats and opportunities and ways to take out costs in your fleet operation. I want them to be able to properly engage with our community so they can return to their headquarters or factories with a better understanding of our requirements. Over the coming months, we hope to share more information on the event but it is not too late for those readers out there that feel they have a burning topic they want to hear and see discussed. So my letter this month is really a request for anyone who feels like they would be able to give a unique insight into the market – or share what it is like to be part of a fleet operation in 2019 – to contact myself or the team. I really want this event to be something that speaks to the sector and be highly relevant for our readership. Without your input, there wouldn’t be a magazine today and I want to be able to bring your inspiration and dedication to as wide an audience as possible. Please don’t hesitate to drop me a line.

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 DISTRIBUTION MANAGER PHINSON MATHEW GEORGE phinson.george@cpitrademedia.com +971 4 375 5476 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)

The publisher of this magazine has made every effort to ensure the content is accurate on the date of publication. The opinions and views expressed in the articles do not necessarily reflect the publisher and editor. The published material, adverts, editorials and all other content are published in good faith. No part of this publication or any part of the contents thereof may be reproduced, stored or transmitted in any form without the permission of the publisher in writing. Publication licensed by Dubai Development Authority

STEPHEN WHITE EDITOR, TRUCK&FLEET ME STEPHEN.WHITE@CPITRADEMEDIA.COM 02 TRUCK&FLEET ME SEPTEMBER 2019

ONLINE

MOST POPULAR

READERS’ COMMENTS

FEATURED

CONSTRUCTION

OVER HALF OF CONSTRUCTION LEADERS EXPECT 6-10% GROWTH OVER THE NEXT YEAR

Oman’s first utility-scale windfarm starts operations

The industry has changed a lot over the last decade and now it looks like we are set for even greaer change. For one reason or another I didn’t get to

CONSTRUCTION

participate in this KPMG

HH Sheikh Mohammed bin Rashid Al Maktoum ‘satisfied’ with Expo 2020 preparations

survey (see Over half

of construction leaders expect 6-10% growth over the next year) but look beyond the headline

Site Visit: Nakheel’s Palm Tower

and it is fascinating to see how the construction industry is being ‘disrupted’ by technology.

CONSTRUCTION

While the use of drones

China’s CNTC wins contract for Reem Island’s Pixel project

and 3D printing aren’t necessarily mainstream yet, it is clear that we have to be prepared (and are preparing) for major changes in the industry. Almost 8 out of every 10 of the people surveyed

CONSTRUCTION

believe that modular

Expo 2020 Dubai irrigation and landscaping projects costing over $75mn

fabrication is going to be widespread within the decade – and while I think that’s being driven by the developers, I think contractors also need to be finding ways to use technology to take costs out of their own

CONSTRUCTION

Tasmim awards Unique Contracting Habitat contract 04 TRUCK&FLEET ME SEPTEMBER 2019

Opinion: The power of effective communications in construction

operations. Name withheld by request

Hyundaiâ&#x20AC;&#x2122;s Petra CSR Project To contribute to the conservation of Petra, one of the seven wonders of the world in Jordan, Hyundai donated Eleccity, an Eco-friendly electric bus.

Training for data analysis and failure diagnosis

Eleccity delivery event with head commissioner of PDTRA

Group commemorative photo of technicians and drivers

Hyundai Motor Company recognizes itself not only as a profitmaking organization, but as an active corporate citizen of the international community. Accordingly, Hyundai made efforts to ensure a more sustainable future for the Red Rose City â&#x20AC;&#x2DC;Petraâ&#x20AC;&#x2122;, one of the seven wonders of the world in Jordan. In order to fulfill the environmental responsibilities, Hyundai Motor Company continues to develop new and more eco-friendly technology. To preserve Petra environment, Hyundai donated an Eco-friendly electric bus, Eleccity, as a shuttle bus to further better experience for tourist without environmental pollutants in Petra. In late July, Hyundai and PDTRA (Petra Development and Tourism Region Authority) held a bus delivery event and Hyundai trained technicians and drivers who will operate the vehicle. Also, Hyundai supplied infrastructure for the Electric vehicle which includes electric charger and charging station. Bus stop stations for the shuttle bus will be also provided by Hyundai as well as renovation for the existing bus stop.

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

Partner in Every Way. Hyundai TRUCK & BUS

NETWORK

VR TRAINING FIRST IN THE UAE / EXPONENTIAL GROWTH FOR LOGISTICS / HALA COMES INTO SERVICE / BEE’AH INITIATIVE / FORD NEW EMOJI

NETWORK Bus drivers to use VR in Dubai RTA DIVISION BECOMES FIRST PUBLIC AGENCY IN THE MIDDLE EAST TO USE VR TECHNOLOGY BUSES Bus drivers will soon be able to use Virtual Reality (VR) technology to improve their skills after Dubai’s Public Transport Agency launched the initial stage of introducing the technology for the training and qualifying passenger transport drivers. The RTA division is the first government entity in the Middle East to use VR technology and is integrating VR training modules with the aim of enhancing their performance and “contribute to customers’ happiness as well”. “The introduction of smart VR technology is part of a plan for privatising passenger transport

training, and will be generalised later on to all contracted training institutes,” said Abdullah Al Meer, Director of Drivers Affairs at RTA’s Public Transport Agency. “The step demonstrates RTA’s efforts to apply the best global practices in leveraging the quality of training deliverables and harness the latest technologies in support of passenger transport activities in Dubai. The initial phase of the VR technology is focused on the inspection process for the buses before receiving them, which ultimately contributes to RTA’s vision of Safe and Smooth Transport for All.” He added: “In the second

phase, RTA will use VR technology in basic and follow-up training courses. It will also be part of the rehabilitation process of drivers involved in traffic accidents and responding to customer complaints. Public Transport Agency is keen on improving the training environment through using cutting-edge technologies and top global practices in the training of passenger transport drivers. “Under the process drivers will experience various scenarios of interactive training including exposure to different climatic and road conditions to polish their skills in controlling buses and averting traffic accidents. It also enables

the intake of large numbers of drivers for training at the same time. It also enables drivers to take quick reaction to avoid mistakes of others; which adds to the safety of passengers. VR learning has huge potential for improvement and the introduction of swift practical solutions to cope with any future developments in the Emirate. “VR is easy to understand as it is built on the visualisation concept. It brings about sustained improvements in monitoring and assessing drivers performance through identifying improvement areas and measuring the impact of training programmes and materials.”

UAE MOI SAYS 785 ACCIDENTS IN 2018 CAUSED BY WORN-OUT TYRES ON POORLY MAINTAINED AND OVERLOADED VEHICLES

06 TRUCK&FLEET ME SEPTEMBER 2019

NETWORK

HALA E-HAILING READY FOR SERVICE RIDE HAILING

UAE WAREHOUSE AND LOGISTICS MARKET TO GROW AT AN EXPONENTIAL RATE LOGISTICS

All over the world, e-commerce has been driving the expansion in the warehouse leasing market, said Saleh Abdullah Lootah, CEO of Lootah Real Estate, predicting that due to this the UAE’s warehousing and logistics market is set to grow at an exponential rate. He said that this is especially evident in the emirate, which enjoys the world’s highest mobile penetration, high purchasing power per capita and large consumer spending. All these factors result in a huge demand for warehouses. However, the warehouse inventory in the UAE has not been catching up with this upward trend, Lootah stated. According to global real estate services and investment firm, CBRE, despite the increase in demand, the supply for storage space in the country remains low. Meanwhile, UK-based consultancy firm Business Monitor International (BMI) puts the average annual online spend per person in the UAE at around $300, more than three times than Saudi Arabia’s $90 and France’s $94. Additionally, Visa recently reported that payment volumes in MENA region surged by 44 per cent in 2018 over the previous year. The UAE’s e-commerce market is estimated to be worth $27.1 billion by 2022, a report from Admitad MENA, a branch of the Global Affiliate Network Admitad, shows. Due to this, anticipating an increase in warehouses, Lootah Real Estate had launched the region’s first lease-to-own industrial warehouses, Senaeyat, in Dubai industrial Park. “The Senaeyat project will strongly contribute to the growth of UAE’s industrial and logistics ecosystem by providing cost-effective options for businesses without compromising excellence. As an affordable industrial partner, Senaeyat empowers businesses to own warehouses over a period of only 10 years and convert rental expense to property asset,” he added. Senaeyat will offer industrial warehouses at 2 per cent down payment, with customisation options available for different business requirements.

Dubai’s Roads and Transport Authority (RTA) and Careem’s taxi e-hailing service Hala will begin operations this month. H.E Matar Al Tayer, chairman of the Board of Executive Directors of RTA described the launch of ‘Hala’ as an important milestone in the strategic partnership journey between RTA and Careem which “supports the efforts of Dubai’s government to make Dubai the smartest city in the world.” The first partnership – the first of its kind worldwide between a public transport authority and a ride-hailing company – is part of wider plan that the RTA to encourage Dubai residents to reduce their dependency on privately owned vehicles. “Hala started a trial e-hailing service for Dubai Taxis in May on 2,000 vehicles whereby a great deal of rides were booked using the Careem App experiencing a substantial growth over the subsequent weeks,” said Al Tayer. “The service was rated at no less than four out of five stars. “The estimated time of arrival (ETA) has already reached an average of four and a half minutes versus the previous average of 12 to 14 minutes, aiming to reach an ETA of three minutes in September. 50% of RTA’s Taxi fleet will be bookable on the Careem App,” he explained. During the trial period research indicates that the service witnessed “excellent” customer and drivers’ satisfaction. “Launching ‘Hala’ aims to improve and enhance the taxi sector in Dubai and increase efficiency, ease the finding a taxi by booking through the app and lower the estimated time of arrival,” continued Al Tayer. He added that the service enables customers to

access special advantages such as e-payment through the app. They will also be able to know the trip route as well as share their trip infomation. Like similar ride-hailing apps users will be able to see car and driver information, and rate the service and driver. ‘Hala’ will be part of the ‘Careem’ rewards programme whereby customers get to earn points as they ride. Along with providing new transport features in the future, the service will support RTA in achieving full mobility integration and providing first/ last mile solutions, which will help public transport users reach their final destination,” he commented. Mudassir Sheikha, co-founder and CEO of Careem added: “Careem aims to simplify and improve the mobility of people in the region. Through this exciting partnership with RTA, we are now able to extend the benefits of our e-hailing technology to the mass population of Dubai through the ‘Careem’ taxi e-hailing App. “Customers will be able to find the closest taxi to them on demand, see a fare estimator and time of arrival and connect their credit card for easy, hassle free payment. It also means less down time for the Captains (drivers) who can optimize their time on the road through customer proximity matching and real time alerts of geographical areas experiencing high demand,” Shaikha added. “We hope ‘Hala’ will enhance the taxi experience in Dubai for both customer and Captain (driver) and to set a new world standard where ride hailing and the public sector can obtain common benefits.”

SEPTEMBER 2019 TRUCK&FLEET ME 07

NETWORK

BEE’AH ANNOUNCES NEW WASTE INITIATIVE

WASTE MANAGEMENT

Bee’ah has kicked off a new initiative to enhance waste segregation and recycling practices in Sharjah. The initiative is designed to the supplement the firm’s current residential recycling programme. The new initiative gives each household a green and blue bin of their own – green bins will be used

for general waste, while the blue bins will be used for recyclables. Residents will also be encouraged to attend sessions on recycling from Bee’ah experts at the community majlis, a report from WAM said. “We have achieved a waste diversion rate of 76% in Sharjah, and we hope to make the emirate the region’s first zero-waste city by

2021. We believe we can work together towards making our homes and city cleaner, better, and more sustainable,” said Khaled Al Huraimel, Bee’ah’s group CEO. The firm says it is also facilitating the disposal of heavy waste through ‘You Call We Haul’ which allows residents to discard large-sized, bulky waste such as furniture and housing appliances. It also provides bulk bags, with a capacity of 1.5t each for the disposal of materials such as worn pots, trees, carpets, and dead bushes, as part of its Green and Bulky Waste Collection Programme. Waste collected from recycling bins and bulk bags will be transported to the Bee’ah Waste Management Centre.

MG OPENS FIRST EVER BEIRUT SHOWROOM RETAIL Unity Motor Company has been appointed the MG Motor’s exclusive local distributor as the British brand prepares to open its first pair of MG showrooms in Lebanon. A local subsidiary MG Motor Lebanon will be managed by Unity Motor Company. Customers will gain access to a dedicated team of MG sales and aftersales experts. They will also be able to use “best-inregion” manufacturer warranty of six years or 200,000km. The new MG line-up of SUVs

and sedans that will go on sale across several dealerships all over Lebanon. Unity Motor Company will also provide an array of services for new and existing customers of the rejuvenated MG brand including new car sales, servicing and certified pre-owned sales. “Lebanon is a dynamic market and a key country for MG Motor,” said Tom Lee, managing director, SAIC Motor Middle East). “This is our first official entry into the market and we are confident we have found the right partner, whose

in-depth knowledge of the automotive sector and successful track record in Lebanon creates a solid platform for the future success of the MG Motor brand. With three exciting new products coming this year we are now, more than ever, in a position to take this new market by storm.” Rabih Rasamny, general manager, Unity Motor Company said his company was very excited to relaunch “the legendary MG brand in Lebanon. Many Lebanese still have vivid memories of the brand and its iconic models.”

ELTIZAM BOAT TO HELP CLEAN REEM ISLAND WASTE MANAGEMENT

Tafawuq Facilities Management has added a boat to its growing fleet of vehicles to help free the waterways and mangrove areas of Reem Island free of any debris. The subsidiary of UAE-based Eltizam Asset Management Group services more than 200 clients and 10 million square feet of real estate; managing an array of high-profile facilities including Marina Bay and Oceanscape. The new vessel will be deployed to clean the mangroves in Abu Dhabi, habitats for breeding grounds for fish, birds and other organism, which it describes as some of the UAE’s most sensitive natural areas and carbon sinks. “We believe every company has a responsibility towards the environment and our new boat will ensure that Eltizam upholds its pledge in this regard by cleaning the waters adjacent to the projects it services,” said Mohammed Alsharaf, COO, Eltizam Asset Management Group. “Achieving customer happiness is our ultimate objective and this new addition to our fleet will be a valuable asset that will elevate the quality of our services. The boat is the first step in a new phase of service and expansion in the UAE that will allow us to progress while maintaining the high standard services that benefit all customers.” Michael Nicholas, general manager, Tafawuq Facilities Management, added that Tafawuq Facilities Management believes that it can have a significant impact on the living and working environment of the communities, public sector entities and businesses, “that we serve through our passion.”

INSIDE THIS ISSUE: THE POWER OF USED SALES WITH RENAULT TRUCKS, HOW FLEETS SHAPED THE DUCATO ELECTRIC, LOGISTICS’ FUTURE AND MORE

08 TRUCK&FLEET ME SEPTEMBER 2019

NETWORK

FORD WANTS TO CREATE NEW PICK-UP EMOJI PICK-UPS

ALLIANCE VENTURES BOOSTS VEHICLETO-GRID (V2G) TECH FUNDING MOBILITY

The strategic venture capital arm of the Renault-Nissan-Mitsubishi Alliance has revealed it is investing in The Mobility House, a company that is developing technology that will integrate vehicle batteries into power grids using intelligent charging, energy and storage solutions. Alliance Ventures’ new cash injection into the technology company’s work in mobility builds on an existing collaboration that has seen the Nissan LEAF become the first electric car to be used in a Vehicle-toGrid (V2G) project in Germany. Cooperating with Groupe Renault, The Mobility House will market the biggest stationary energy storage systems made with electric vehicle batteries in Europe and help make the Portuguese island of Porto Santo, near Madeira, the first “smart island” in the world through its smart energy platform, the firms said in a statement. “Alliance Ventures aims to provide the right ecosystem of open innovation to ensure Alliance member companies deliver mobility for tomorrow,” said François Dossa, Alliance global VP for Ventures and Open Innovation. “The Mobility House’s expertise in e-mobility and energy transition will contribute to the Alliance commitment to zero-emission vehicles and to the achievement of our vision: shaping the future of mobility.” Based in Germany, Switzerland and California’s Silicon Valley, The Mobility House is the 12th company to secure investment by Alliance Ventures.

10 TRUCK&FLEET ME SEPTEMBER 2019

Ford says it decided to create an emoji for pick-ups due to demand from truck fans. Created to celebrate World Emoji Day (yes, there is such a thing), the pick-up emoji has now been passed for approval and could be confirmed as early as 2020. The design will be customized for all mobile platforms to meet the needs of customers – from skilled tradespeople to active families and emoji lovers alike, said Ford. “When customers started demanding a truck emoji, we knew we had to help make it happen,” said Joe Hinrichs, Ford’s president, automotive.

In 2018, Ford submitted a proposal to the Unicode Consortium – the organization that reviews and approves proposals for new emoji – to add a truck to emoji keyboards everywhere. Now, the pickup truck emoji has been shortlisted as a candidate for inclusion

in a future version of Unicode. “Our team spent a lot of time digging through message boards, texting influencers and watching social media feeds to really understand our customers’ needs,” addedCraig Metros, Ford North America design director. “

KAEC DEVELOPING RECORD HYPERLOOP TRACK TRANSPORT Virgin Hyperloop One has entered into a development partnership with Saudi Arabia’s Economic City Authority (ECA). The deal will see the firms collaborate on a study to build what is billed as the world’s longest test and certification hyperloop track, in addition to a R&D centre and hyperloop manufacturing facility north of Jeddah. According to a statement from Virgin Hyperloop One, the project is expected to include a 35km test and certification track. The project is expected to create opportunities for the development of specific hyperloop technologies and develop local expertise in

Saudi Arabia, which will be commercialised and scaled. The study will also enable the development of localised hyperloop supply chains and the acceleration of innovation clusters across the kingdom. The deal was announced during a visit by a senior ECA delegation to Virgin Hyperloop One’s Los Angeles headquarters. The delegation was led by ECA secretarygeneral Mohanud Helal. “Our partnership with Virgin Hyperloop One is a matter of pride for us and all of Saudi Arabia. As we continue to help deliver the strategic pillars of Vision 2030, technology transfer and hightech job creation opportunities that this relationship will

bring are fundamental to our progress as a nation and our efforts to create opportunities for our bright young people,” said Helal. While the study is underway, the Prince Mohammad bin Salman College of Business and Entrepreneurship will collaborate on the creation and publication of an academic paper outlining the economic impact of a Hyperloop Center of Excellence in KAEC, the statement said. “Having hyperloop at King Abdullah Economic City is going to act as a catalyst for a Saudi Silicon Valley effect and galvanise our software development, high technology research, and manufacturing industries,” Helal added.

Free attendance for industry professionals. Register online tfconference.com

Running faster, longer & leaner Not only is the Middle East a centre for transport and logistics activity, but it is also increasingly embedded into the international landscape of the two sectors in terms of adopting trends and best practices, as well as in the companies involved.

05 December 2019 Ghaya Grand Hotel Dubai, UAE tfconference.com Please scan here to register

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LAUNCHES

MG SAYS NEW MG5 PROVES THAT IT WANTS TO CHALLENGE FLEET SEGMENT / HYUNDAI TEASES ELECTRIC CONCEPT CAR DEBUT

LAUNCHES $9,900 MG5 STARTING PRICE

Now in showrooms: MG5 makes its regional debut MG5 IS THE LATEST STAGE IN THE RAPID EXPANSION OF THE UK BRAND’S REGION LINE-UP MG Motor has confirmed that the all-new MG5 will go on sale across the Middle East this August, with prices from $9,900 for the entry level model up to $12,600 (excluding VAT) for the top of the range. Ensuring that the region’s car buyers will no longer have to compromise when choosing a compact sedan, the all-new MG5 brings together spacious sporty styling with an impressive list of hi-tech features and entertaining performance and handling. The arrival of the all-new MG5 is the latest stage in the exciting expansion of the British-born brand’s Middle East car lineup,

and comes at a time when more customers in the region are buying MG cars than ever before. The new MG5 is totally new from the ground-up, with a sporty look that perfectly suits those with an active lifestyle. At the front, the lightening blade design LED headlights, daytime running lights and chrome Wingspan grille make a strong visual statement, while the double curve of the side panels serves to accentuate the new model’s sports credentials. The MG5 is equipped with a raft of cutting-edge features. The on-board infotainment system

12 TRUCK&FLEET ME SEPTEMBER 2019

includes a 10.1-inch touch screen, Apple CarPlay and Android Auto. Cruise control comes as standard, while push button start, keyless entry, a panoramic sunroof, electrically adjustable seats with manual lumbar support for both driver and passenger, a rear-view camera and a 360o surround-view camera for ultimate safety are also available, depending on model. Despite sitting in the highly competitive compact sedan sector, the MG5 is particularly roomy. At 4601mm long, 1818mm wide, 1489mm high, and with a 2680mm wheelbase and 512 litre boot, the new model benefits from best-in-

class interior space. It also offers a premium travel experience courtesy of the carefully designed, extra-comfy seats and use of softtouch material around the cabin. In the Middle East, the MG5 will come with a 1.5L petrol engine delivering max power of 118hp and up to 150 Nm of torque, and mated to a fuel efficient CVT. An “entertaining driving” experience is bolstered by MG’s XDS system for enhanced cornering, a choice of three steering models and ESP traction control across all trims. Superb handling is further prioritised by the fitting of Michelin tyres available with the lux trim.

LAUNCHES

HYUNDAI’S SINGLE FOCUS ON NEW 45

FULLY ELECTRIC CONCEPT CAR TO MAKE IAA DEBUT

READY TO ENTERTAIN YOU The on-board infotainment system includes a 10.1inch touch screen, Apple CarPlay and Android Auto. Cruise control comes as standard.

ALL-ROUND SAFETY A high-tensile steel cage is hidden under the exterior and the MG5 boasts a series of active measures.

Ready to tackle the challenges offered by the Middle East’s roads, it majors on safety. Passive safety features include a high-tensile steel cage-style body, the use of advanced laser brazing technology to enhance overall vehicle strength and stiffness powered by curtain airbags. An autohold function, ABS, EBD and a corner brake control all contribute to active safety. Tom Lee, Managing Director for SAIC Motor Middle East, parent company

of MG Motor’s Middle East operations, commented: “With the MG5, we are taking things up another level and making a real statement of intent. This new model is a true game changer, and will be pitched directly against less well-equipped models from the established brands. With an extremely competitive price, in a segment that is dominated by fleet sales, the MG5 is a true challenger model that will hold great appeal among its young target customers.”

Hyundai Motor will display the company’s focus toward the future direction of car design at this month’s forthcoming IAA Frankfurt Motor Show (10-22 September, 2019) in Germany. Inspired by looking back at the brand’s first model in the 1970s, the 45 fullyelectric concept car will act as a symbolic milestone for Hyundai’s future EV design. “The new concept accentuates the forward-driven design direction while exploring the evolution of Hyundai’s ‘Sensuous Sportiness’ design language. ‘Sensuous’ stands for enhanced emotional values that customers can experience through design, and ‘Sportiness’ is determined to implement those values through innovative mobility solutions,” the company said in a release highlighting the world premiere. Hyundai will showcase various future innovations in vehicle technology and integration of lifestyle applications as it continues to illustrate Style Set Free, its new personalised vehicle design concept which allows drivers to fully customise and upgrade their driving environment to suit their lifestyle. At the CES show earlier this year, Hyundai demonstrated to the Las Vegas audience how it wants to take data generated from smart vehicles to launch

an open ecosystem that could lead to the widespread adoption of connected cars, further cementing Hyundai’s role as a leader in the future mobility field. The Hyundai CRADLE, a hub for corporate venturing and innovation business, takes on the responsibility for securing Hyundai’s vision of a cleaner and more integrated answer to transportation. To expedite these ambitions, Hyundai has made investments in more than 30 promising companies such as WayRay and Perceptive Automata over the past year. As part of its Open Innovation plan, Hyundai today unveiled the design concept and prototype of the Hyundai ‘Elevate’ Walking Car. “This innovative concept will redefine the common perception of vehicular mobility with its ability to traverse previously inaccessible terrain using its four, highly dexterous moveable legs,” the company told the gathered CES media and press. Hyundai also presented its future roadmap for expanding its competitiveness in AI technology at the technology showcase. The Hyundai 45 concept car will be unveiled to the world on the first day of the IAA Frankfurt Motor Show (09:25 CET, Hall 11).

WORLD PREMIERE 10 SEPTEMBER IAA

SPECIFICATIONS Engine

1.5l petrol

Power

118hp

Torque

150NM

Wheelbase

2.6m

Boot capacity

512l

SEPTEMBER 2019 TRUCK&FLEET ME 13

OPINION

AN END TO CAR PARKS?

Aurecon’s Russ Yell looks at why parking lots are an endangered urban species

e all know them: those custodians of the pavement, often donned in reflective uniforms and armed with their weapon of ticketry. Everywhere you go in the world, parking inspectors tend to provoke the same irritations and avoidance responses. This kerbside dynamic is pretty universal. Yet it’s becoming increasingly dated too. A new urban mobility revolution is underway, transforming our city streets at a thunderous pace, and repurposing our pavement for more connected, greener, multimodal forms of transportation. From bike shares to autonomous transit, along with more traditional options such as rail and walking, a new urban ecosystem is on the rise. It’s inevitably altering the physical landscape, as well as the conventional thinking underpinning city planning, and changing the way we own our sustained future. The parking industry argues, while we may not require as much space or parking lots in the future as we now have, “parking, as both a function and an industry, isn’t going anywhere” – but it won’t stay the same either. New modes of transportation like AVs (whether they will be owned or shared), will need to live ‘somewhere’ when not in use. With more than half of the population asleep at night, not all AVs will be occupying the streets at 2 am to pick up late night revellers or shift workers. And with Uber’s recent announcement that 14 TRUCK&FLEET ME SEPTEMBER 2019

Melbourne will be one of the test sites for flying taxi service UberAIR, the need for adaptation to these new breeds of transportation is becoming more urgent than ever. The shift from humans parking cars to self-parking AVs will also revolutionise the infrastructure required. In fact, multinational automotive corporation Daimler has partnered with Bosch to introduce a ‘fully-autonomous auto valet parking environment‘ at Mercedes World in Germany, where AVs can drop off passengers at the lobby and park themselves. MIT spin-off company WiTricity is currently developing an EV charger using patented magnetic resonance technology that enables a charging panel on the ground to transfer power wirelessly into the car. It’s about what the spaces can offer. But what if the great ‘carpocalypse‘ actually does descend on our cities? What do we do with this abandoned architecture, and what will we build? Kerbs will be reimagined, with the current idle space repurposed for the future as a buzzing hive of data collection thanks to AVs dropping off and picking up passengers. Parking spaces will be narrower, allowing our streets to accommodate more public transport and active movement. Parking lots could become green spaces to enhance liveability and encourage cycling, walking and outdoor living. Parking garages could present all kinds of conversion opportunities, ranging from office space to apartment blocks to fitness centres.

A centuryold automotive love affair is coming to an end, as ride sharing, electrification and Mobility-asa-Service come onto the scene”

Architecture firm Gensler proposes that the infrastructure could even be reworked into living and working “pods”: AVs drive into their portals and open up into condensed living rooms, bathrooms and kitchens – the ‘ultimate micro unit’ of blended living design. All these, however, are more than merely about finding solutions and ways of repurposing parking lots if and when they become obsolete. This is about driving the shift towards a new vibrant, connected and sustainable urbanism.Jennifer Henaghan, deputy director of research at the American Planning Association, believes the big question about the future of parking and kerbs is not a threat but a great opportunity for planners. In addition to this, open source projects such as SharedStreets are building an open source infrastructure that enables publicprivate collaboration and empowers city stakeholders to inform better transport solutions for seamlessly connected streets. As AVs and other technological trends continue to converge, our city streets will naturally need to adapt and change. Governments will have to spearhead these conversations, looking at a responsibilities including re-zoning, new governance frameworks, new transport taxes, and investing in all kinds of new digital infrastructure and private partnerships to pull off true transformation. It’s no small feat, but it’s not really an option, is it? The cities that move faster towards change will be those who don’t put innovation ‘in park’, but instead drive it forward.

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INTERVIEW

AS GOOD AS NEW?

Can buying ‘used’ be the cheapest way to upgrade your fleet? Renault Trucks thinks so

he introduction of Renault Trucks International’s Used operation in the Middle East – complete with a share in the manufacturer’s recently opened office in Jebel Ali – has given the French company an opportunity to take on its Asian competition on their strongest USP, namely price. Now customers can get their hands on the newest T generation of trucks with Euro 3 engines as well as the ruggedised X Road set-up via refurbished used units from Europe. These trucks are typically three or four years old and within a respectable running range of up to 500,000km. Put together at the Bourg-en-Bresse plant in France (see issue

16 TRUCK&FLEET ME SEPTEMBER 2019

T&FME July 2019), the T X-Road variants are fitted with all the range’s trimmings including steel bumpers, strengthened cab access and protective grilles mounted over the headlamps. Typically, the trucks are also fitted with the fuel-saving optidriver transmission (almost every truck sold in Europe is fitted with the automatic transmission). Add a fine selection of features and options including added fuel tanks and hydraulics for tippers and trailer roles, reinforced filtration for local conditions and fuel, under engine protection and a roof beacon system, you can purchase the ‘good as new trucks’ with an extendable warranty and save a few dirhams and dollars in the process. Renault Trucks International, Used

We are we are putting ourselves aside from the rest of the market, with our Euro 3, with our X-Roads, with our warranty”

Trucks VP, Alex Vosselman, has already seen units shipped out to countries as wide afield as Pakistan and the Africa market and says buyers can be confident of getting a truck that meets the company’s typically demanding standards. “Yes, we are getting started; launching the T X-road Range in our region and delivering the first ones,” he begins. “The strength that we have is that we can downgrade to certify them at Euro 3 in our factory. So, we don’t put any boxes on or flashes – whatever you may call them – plus, we really make them robust For the Middle East and Africa region.” He tells T&FME that the new service bridges a gap between the features offered on the newest heavy-duty vehicles

INTERVIEW

A PRESSING ADVANTAGE Trucks refurbished at the Bourg-en-Bresse plant in France can be fitted with Euro 3 engines but still have the latest safety and comfort features.

USED AND NEW, HAND-IN-HAND Cheaper than most new trucks on the market, Renault hopes the used vehicles will demonstrate the robustness and durability of its products.

and the need for fleets to run on higher sulphur grades of fuel in the region. “Our clients really appreciate that they don’t have to get a Euro 6 sort of truck that may not work (‘will it work? We don’t know’). Really our core business now is bringing it back to a certified Euro 3; making sure the truck is robust with our X Road upgrades and preparing it for a long life in the Middle East and Africa,” he says. Plugging into the existing Renault Trucks International network that stretches across the Middle East and Africa region means that the company can also add a warranty backed up by the firm’s distributors. “Giving the warranty for it through our importer means that we are looking

You cannot compare us with a trader as we are taking the risk out of buying a used truck for a customer”

at a bright future,” he enthuses. T&FME’s initial reaction is to suggest that this makes the trucks must be attractive for Africa fleets, in particular, but Vosselman insists that the Middle East market also needs them. “In the Middle East you have a lot of short-term projects,” he remarks. “A lot of people are questioning whether they should now invest in buying 20 used trucks or 20 new trucks? (With new trucks) what if there are no projects afterwards? They may have to write them down in two years and have to buy a used truck.” Renault Trucks International has been working behind the scenes to ensure that fleets can see the virtues of going for the used

alternative if a new truck doesn’t fit their current financial or operational requirements. This has enabled it and its dealers to be more aggressive with their used sales, even offering fleets access to Renault-backed financing in the same way that they can for its new trucks. “That’s why we also sit in the same office as the Renault Trucks’ new truck operation, we can work hand-in-hand and are not separated,” explains Vosselman. Fleets are becoming much more knowledgeable about the overall costs of their vehicles in the region and Gregoire Blaise, VP, Renault Trucks International believes you can no longer describe a fleet as being solely a new or used truck customer. He adds that the having a number of used trucks SEPTEMBER 2019 TRUCK&FLEET ME 17

INTERVIEW

active in the market can prove the reliability of the vehicles – and ultimately reassure customers that they will keep their value. “In this industry the higher price you are the more attractive you are,” he muses. “I mean if look at the price of say this very nice Range Rover over there (he points out to one parked close-by) and the price of my truck, I feel mine are relatively cheap but used trucks are important even if you want to sell a new truck.” Blaise gives an example of a recent visit to customer who hadn’t seen Renault Truck before. “It’s not like we are an unknown company in the Middle East,” he exclaims. “But I had the opportunity to show him a used truck that had gone 500,000km with four or five years running. He was amazed by it. It was well cleaned – obviously – but after five years it was mechanically in an amazing state. Blaise continues: “Showing this guy our trucks, showed him what we are. For me, used trucks are even more important than they are to Alex. If he is successful, I am pretty sure I will have an easy life.” Renault Trucks International is openly prepared to take on new Chinese trucks with its used vehicles and believes it can present a compelling offer built not only being the value option in the market but also by plugging fleets into its deep network of service and repair shops. “Frankly speaking, for me it is quite obvious that we are good at servicing these trucks as well,” he adds. On the T range, Renault Trucks International is offering a six months and international driveline warranty. So a customer that drives from Bahrain and Dubai (for example) has support under warranty at each of the local importers. Indeed, distributors are playing a crucial part of the operation with the Renault Trucks International ensuring that cross-border fleets can get access to support throughout the region. They are also tasked in ensuring that services under warranty are delivered to the same standards wherever the fleet or vehicle is. (Vosselman adds that the flagship T X-Road trucks come with a one year or one hundred and twenty thousand kilometres warranty.) “The international selection warranty gives a certain confidence to the customer that he has a warranty with the importers, with the dealers, and of course will be supported by us,” says Vosslemen. “Each truck is delivered like my colleague delivers a new truck. The fleet customers belongs to the same family, it’s not a used customer, it’s a Renault 18 TRUCK&FLEET ME SEPTEMBER 2019

UNIQUE IN THE INDUSTRY “We decided a couple of years ago to have Used Trucks as part of the executive management team. Which is, as far as I know, pretty unique in the industry,” says Renault Trucks International’s SVP Olivier De Saint Meleuc. “It’s a huge leverage for profitability for our customer. Secondly, we believe that with the trucks we have, we

can really bring added value. Between 2017 and 2018 we improved our used truck sales by almost 25% because customers can see the shape of the vehicle after three or four years and therefore agree to buy used trucks. Increasing our sales that much, gives me a lot of confidence on this strategy and to really focus on used trucks and

Trucks customer with the same service.” “We are working through out partners. It could happen that Alex is sitting with a customer but most of the time the favourite of preferred channel is through our partners. We have been clear with them, we want them to develop both activities. We believe in that for their own sustainability.” Renault Trucks has emerged as a reenergised member of the Volvo Trucks group in the region over the past half-decade and Blaise argues that the used operation can give it an edge in terms of market share: “Used Trucks is the way we can go faster.” Vosselman adds: “I think in the customer’s eyes the risk is low. They can think ‘let me try it’ and let me see if everything that they promise me.” Ensuring that the advantages of the used vehicles offered by Renault Trucks is well-understood is now one of Vosselman’s main tasks. Having arrived early this year, he brings a “lifetime” of being a used vehicle specialist to the role. He says that he has

Each truck is delivered like my colleague delivers a new truck. The fleet customers belongs to the same family, it’s not a used customer, it’s a Renault Trucks customer”

once again bring more profitability for our customer. “We produce fantastic trucks and believe that that they are not only fantastic new but also used. “We are offering financing for new and used. I think it’s fair to say that it’s sometimes more complicated to find financing for used trucks as there can be a lot of start-ups.”

witnessed a lot of change in the market and is now overseeing how they can find a niche in the Middle East and Africa region while proving to customers that used vehicles can be comparable to their younger siblings. “We are we are putting ourselves aside from the rest of the market, with our certified Euro 3, with our T X-Roads, with our warranty. You cannot compare us with a trader as we are taking the risk out of buying a used truck for a customer. We are in between a new one and used. That’s what we do.” While the focus is on the refurbished T Range trucks, the company can also offer other used vehicles in the Renault stable. Vosselman says that he enjoys his work and the varied customers the operation is attracting. “In the morning I can have a CEO coming in who has a 1,000 trucks in his fleet and in the afternoon, I can have somebody coming in who says that they really want to start a food truck business. We even sold a hairdresser a van.”

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FEATURE

THE E-TALIAN PROFESSIONAL

Fiat Professional’s Domenico Gostoli on how fleets have shaped the new Ducato Electric

he giant Turin football team of Juventus has for decades tried to balance the pragmatic defensivelyminded tradition of Italian teams with the more exotic talents of the game’s great creators. Platini, Baggio, Zidane and now Cristiano Ronaldo have thrilled the city’s crowds by daring to come up with something dramatic, inventive and magical. There was a touch of the unexpected when Fiat Professional invited the world’s media to its Turin home at the height of another hot European summer. Given the industry’s current pursuit to electrify mobility, it may be a stretch to call the Ducato Electric

20 TRUCK&FLEET ME SEPTEMBER 2019

van as the work of an unpredictable genius but its surprise showing – and the even more eyeopening launch date of 2020 at the event – has caught some observers off-guard. In the crowd noise of the world premiere it may also have been lost that the company is also determined to give the van a release in the Middle East. “Well the Ducato Electric is here,” Domenico Gostoli, head of Fiat Professional Electrification Programs says with an effortless coolness reminiscent of a French midfield general setting up a goal with a looping pass from inside in his own half. Behind him is the new vehicle itself. Doused in purple light, its shining new body deflecting the flashing cameras of the media

We could see the potential of the market. The real-life demand and applications”

around it, it is still difficult to escape the fact that it remains a van. A vehicle destined to spend a life of drudgery and shifting. The reality is that electric commercial vehicles are now out in the field in some markets and ready to be in fleets that have the infrastructure and know-how to use them. We need them to work, not to impress. Consequently, the Ducato Electric is also the identical twin of the MY2020 Ducato that will be launched earlier in the year and this was a launch to pare down wizardry with much needed pragmatism. Furthermore, anyone with an interest in a sustainable future for fleets will be happy to see that in a short time we have moved on from, say, the

FEATURE

FACTS ABOUT THE DUCATO ELECTRIC • Developed and designed to the FCA Group’s quality standards, it is available in all body variants with the same load volumes as the conventional Ducato, from 10m3 to 17m3, and the best payload on the market, up to 1,950 kg. • Ducato Electric will offer a choice of battery options for a total range of 220 to 360 km (NEDC cycle). • Maximum power of 90 kW and maximum torque of 280 Nm. • Its development is the outcome of in-depth analysis of commercial vehicle use data and the various mission types, and partnership with major customers, all aimed at offering made-to-measure solutions that adapt payload and performance to the different demands of professional use, with no half measures: 100% Ducato, 100% Electric.

eSprinter reveal in 2016 at IAA which came out with a Hans Zimmer-like soundtrack and a dancing, spinning, digital grille. Gostoli says the company has had to find the sweet spot between the standard Ducato’s best-in-class load volumes from 10 to 17 m3, and a payload of up to 1,950 kg (the best in its category) and the need to get enough power from the battery. In electric vehicles, batteries are everything, he says, and the company has opted for modular battery size options, with range from 220 to 360 km (NEDC cycle) and different charging configurations. This is combined with impressive performances: speed limited to 100 km/h to optimise energy use, maximum power of 90 kW

and maximum torque of 280 Nm. When asked by T&FME what that could translate to in the Middle East, he admits that the region remains a challenging environment to get a similar performance but is cautiously optimistic that the development of the technology will see it improve in the years to come. The standard Ducato has been in the field now for almost four decades since its arrival on the scene in 1981, and all-electric BEV (Battery Electric Vehicle) version completes a line-up that also includes the natural gas Ducato Natural Power. The brand has been built on combining performance, economy and a strong focus on TCO (total cost of ownership). The company stresses that its newest family member has been developed in deep consultation with fleets and follows a long-standing strategy of trying to understand the “different needs of every professional mission.” Development on the Ducato Electric began only a few years ago and has been shaped by a detailed study of the real use of customers’ vehicles, including a year

Large scale electrification is coming into our lives and we are ready to move to the next level. Indeed, electrification is leading and enabling change in customer culture and dedication”

of data gathering. The research found, in Europe, at least, 25% of the market already has a “BEV Attitude” in terms of use, routes, dynamics and performance – and is therefore ready and waiting for a mobility change. Emphasising how important going into the market to work out what their requirements are, Gostoli says that this process is more important than the specs themselves. “I guess you expect me to go straight to the technical data? This would be the usual norm, wouldn’t it?” He asks. “Well, this would be the normal type of presentation if this was just a normal product - which it’s not. Gostoli adds: “The Ducato Electric is much more. The Ducato Electric is a new mobility solution and it is essential to understand how the Ducato Electric was born and why was there innovation value it brings to the market.” Fiat Professional’s research has uncovered the fleets working in specific business areas which are well placed to be early adopters of this technology. It has looked at the growth of online retail, postal and courier services and seen how it could help those operations but

AN ELECTRIC ATTITUDE Fiat Professional research found at least 25% of the European market already has a “BEV Attitude” in terms of use, routes, dynamics and performance.

SEPTEMBER 2019 TRUCK&FLEET ME 21

FEATURE

THE HEART OF THE CITY Gostoli (pictured) says that early adopters generally need access to city centres.

there others too, such as: home ready-to-eat food deliveries and hub-spoke local transport. With access to city centres and ever-increasing traffic restrictions on conventional fuel vehicles encouraging a movement to cleaner vehicles, Gostoli sees a connection between early adopters – customers already interested in electric mobility – and specific mission types which give particular importance to TCO. “We started by building a holistic database using fleet data, an extensive study of a wide number of connected vehicles across the whole of Europe. We analysed this date: vehicle-by-vehicle, mission by mission, mile by mile, with of course the customer’s specifications.” These fleets generally have a low level of route variability and a high number of days of use per year but fairly low daily mileages, the company has found. “Large scale electrification is coming into our lives and we are ready to move to the next level,” says Gostoli. “Indeed, electrification is not a bad move in terms of technology or mobility. Electrification is leading and enabling change in customer culture and dedication. And electromobility will be deeply involved in the customer approach.” The development of the Ducato Electric has involved the company being pro-active in seeking cooperation with its customers, he adds. “We started with customer Pilot Projects involving some large industry players to fully exploit their knowledge base, letting the vehicles run for 15 million kilometres during the trials. He adds that the study meant they could 22 TRUCK&FLEET ME SEPTEMBER 2019

These perspectives gave the determination that it was best to find a 100% solution in a 100% Ducato”

set benchmarks of how to build a TCO for the vehicle that would mean it could remain a profitable investment for the fleet customer – even if it was likely to come with an added premium. “Finally, we could use it to see the potential of the market,” he adds. “The real-life demand and applications.” He believes this process has helped create the optimum mobility solution not just in terms of the basic van but also wrapping it in services, including route and charging optimisation, for fleets. With this approach, Fiat Professional believe it can now confidently offer complete electric mobility solutions, based on its study of energy needs and fleet roles. The finished vehicle will be marketed as an extension of the popular brand – 100% electric, 100% Ducato – and able to cover every single mission. “And that is the reason why we started with the customer first. These new perspectives gave Fiat Professional the determination that it was best to find a 100% solution into a 100% Ducato.” But the company also wants to go beyond vehicles to the charging infrastructures they need and inevitable range of services increasingly required by today’s new, constantly evolving mobility scenarios. “We are moving from being a manufacturer to a solution provider. We want to recognise the best for each customer and identify all specific use demands to be borne in mind during individual customisation and configuration for every application,” he remarks.

MADE FOR THE INDUSTRY, BY THE INDUSTRY Consultation with fleets followed by pilot projects in Europe have been essential to the development of the e-van.

READY TO PRE-ORDER The full electric version will be available to pre-order in 2019; this version is being anticipated by pilot projects dedicated to major clients, with which a joint experimentation will be set up to better grasp the specific needs. The Ducato will be the first fullelectric Fiat Professional model, designed and developed according to the most advanced quality standards of the FCA Group. Fiat Professional is sharing its technological experience to create the electric version of its best seller, precisely as for the rest of the range, not unlike a tailor-made suit respecting the needs of all professional user, under the banner of innovation, eco-friendliness and performance loyal to the Ducato concept of “more technology, more efficiency, more value”, offering to customers the best Ducato ever.

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FEATURE

SHIPPING BROADCAST

How ports are using data to connect sea to hinterland

cross the region, logistics equipment and vehicles ferry containers and goods from the everexpanding range of hubs and ports. The environment that transporters are entering is changing around them as a wave of digitisation hits the industry and TOC Europe, T&FME was able to get an understanding of how this rapid evolution 24 TRUCK&FLEET ME SEPTEMBER 2019

has not been without its teething troubles. There was a lot of talk about intelligent ports, using data to create digital trips through the terminal operations. However, the industry is currently at its latest impasse despite these advances. Port owners are increasingly interested in using the data that is being accumulated on their sites to create simulations for augmented reality and deploy artificial

It’s kind of a grass-root movement. A pragmatic approach”

intelligence with the two technologies seen as key to improve efficiencies. Holding all of this data together is the cloud or internet of things, giant servers based on site or elsewhere that accumulate information from the vehicles, equipment, camera, sensors and much more entering or part of the port’s infrastructure. The industry has obsessed over recent years in finding a standardisation

FEATURE

for this data that can be put to practical use – essentially placing the onus of port equipment- and vehicle-makers to agree on not only the way the data is formatted but also how it can be transmitted to where it is needed a port operation. There may have been rapid advances in information technology and, in particular digitalisation, machine learning and IoT but as much as they have created new

Getting a repository of high quality data is essential”

possibilities, there remains challenges for the industry. It is under more pressure to perform and to run its operations in an efficient way than ever. And while equipment, systems and solutions are more and more connected, interfacing them can be a complex and costly exercise. Frank Snijders, business development director of OrangeNXT, has been working in the supply chain industry for 20 years, helping logistic companies to digitally transform their operations with innovative solutions and new business models. The company is currently working to see how assets can generate the right sort of data that could allow for greater automation. “It’s a pretty straightforward solution nowadays. A lot of companies are trying to implement it requires a multitude of different data sources so it can be integrated. And that it could be in real time and those data sources need to be combined in a central place or hub,” he says. “Now what does it look like? On the bottom end you will see all kinds of data produced. And it could be any type systems not just IT systems but also your ERP system might get it. It can contain any sort of information, like weather information – so wind speed or the amount of rain that might influence your operations.” OrangeNXT is currently working with terminal operators to pool that data raw as possible into adata hub. “We analyse the data, enrich the data so you improve the data quality overall. But once you have the data a central repository you can start creating correlations between your assets and your businesses,” he continues. So, orders that are coming into your ERP needs to be executed by your equipment. You have one central repository to corrolate the data. And then you can apply nice things to it, for example, artificial intelligence.” At that point, it becomes possible to use the logorithms generated to set KPIs for the operation, optimise the movement of vehicles and equipment and set preventative maintenance routines. “It might be tracking trades or a tyres or inbound shipments or exchange information with your stakeholder, an ocean carrier for example. It is the basics of orchestrating data which is very essential to port and terminal operator because there’s a lot of data. Getting the central data and getting a repository of high quality data is essential.” It has been recognised that getting that high quality data and the benefits described by Snijders is going to require

an establishment of standards that the whole industry can adhere to. Ports sit between the ships moving from one port to another and haulers that transfer the cargo to landside destinations. The entire industry stands to benefit if data can be used to create more efficient hubs. Frank Kho of Kho Management was installed as the co-ordinator of a Port Equipment Manufacturers Association (PEMA) and FEPORT (The Federation of European Private Port Companies and Terminals) steering committee last year to set-up the standards and specifications for the container industry to help improve efficiencies throughout the whole logistics supply chain. The initiative, TIC 4.0, has already made progress after a meeting held in May 2018. TIC 4.0 was ultimately established to allow a closer technical interaction between terminals and manufacturers, says Kho, with the objective of outlining and defining industry standards that will favour the development of Internet of Things. Having worked on both the terminal and the equipment side of ports, he was the ideal choice – although he is characteristically modest about his appointment. “I was asked to be the spark to get the fire burning. Now I don’t whether I’m an accelerant or a spark but I wanted to get people together. For the first time in 30 years in the industry, I saw terminal operators and equipment suppliers – 15 organisations – sitting together in one room.” He says TIC is now working to find ways for the industry to work more effectively at all levels. “It’s kind of a grass-root movement,” says Kho. “A pragmatic approach.” Other meetings have followed to lay out the mission of the group and, “and how we climb this giant elephant. It is a very big environment so we are going to work from the terminal upwards and the most important processes as a starting point.” Having defined what they are the working groups, including representatives from companies like Konecranes, Kalmar and Liebherr, are going through each individual process to clearly define what they are, what they are called and how they fit with the wider terminal operations. He says the initiative has been able to gain funding from the EU to see how ports can be digitalised. “This has resonated with the regulatory bodies. The EU were looking to fund digital infrastructure pilots and several TIC members applied. We want to use the definitions of TIC 4.0 to test out SEPTEMBER 2019 TRUCK&FLEET ME 25

FEATURE

the definitions and implement them in their own operations. There now will be several pilots over the next three years in terminals across Europe.” Giving a terminal operator’s view on the TIC, Luisa Kempf, site director at Eurogate terminal, works for the technical services division of the operator; overseeing the maintenance and technical improvements to the equipment it operates in Europe, Russia and Morocco. She uses a thought experiment to explain what would happen to digitalisation without standards.

“Imagine you have a container terminal using cloud technology, ear pieces on everyone, analytics, everything you need to make good decisions. Then you’ve got the equipment: straddle carriers, terminal tractors, ship-to-shore cranes, reachstackers but hardly any of it is able to talk. Getting digital means using I0T to get the equipment to talk but each manufacturer’s equipment has its own language, it is talking about different content so you can’t implement a data-driven decision process. “I believe TIC 4.0 is so important

There will be several pilots over the next three years in terminals across Europe”

because it actually makes the industry defines those standard languages.” The original 15 members has grown to 18 and a further seven are being processed. Kho says that the group is now exploring industry association status, broadening its legitimacy and scope – as well as provide a pathway for terminal operators and equipment manufacturers to share information, knowledge and importantly experience. “This technology that has been coming in the last decade will finally be utilised in an efficient way.”

MARCH OF THE MACHINES While the much-used trope of ‘machines replacing humans’ is an understandable view, Jasmeet Bakshi, Exhibition Director of Materials Handling Middle East, argues the reality is far more complex. With more and more companies exploring new technology avenues to reduce human involvement in the workplace, the cost saving factor is often the primary motivation. Once expensive, injury and errorprone ‘human’ costs are removed, companies often see a direct impact on bottom-line profitability. Consequently, there is an increasing number of industrial organisations seeking to align with the hottest trend in operational efficiency: automated materials handling that minimise operational and manufacturing costs by reducing human involvement. According to a new growth forecast report by Global Market Insights, the global materials handling equipment market is growing at 5.5 percent CAGR

and is expected to surpass US$ 190 billion by 2024. Similarly, the GCC is on an upward growth trajectory with the automated materials handling equipment segment projected to grow at a CAGR of 8.6 percent to reach US$ 498.5 million by 2023. Unsurprisingly, Saudi Arabia and the UAE possess the largest regional shares. With both nations making massive investments in infrastructure to label themselves as ideal destinations for logistics and warehousing operations, the two most populous GCC countries will continue to drive regional demand for automated materials handling. A recent boom in e-commerce is also a major driver for automated materials handling as industry players aim to improve quality of service. Here are some key factors driving automated materials handling growth in the GCC region and beyond: Reduced costs Automation is poised to make

26 TRUCK&FLEET ME SEPTEMBER 2019

a significant and lasting impact on profitability, particularly as it reduces the need for manpower and outsourcing. Once considered the most effective way to manage costs while still producing a high-level output, outsourcing has been rendered obsolete by AI-powered automation which reduces errors, enhances security and allows for better scalability. Safety As businesses pursue automated industrial operations, increased safety is a tangible value-add. Improving workplace safety conditions is one of the primary motivators for manufacturers replacing existing materials handling solutions with automated systems. These systems reduce the risk of injury by removing workers from dangerous work procedures. Automated systems also make it seamless for businesses to update safety protocols and create a plan of action - without disrupting normal operations - in case of an emergency. Automated systems

also typically respond faster to emergencies by providing real-time monitoring. Safety results in happier workers, reduced costs and increased efficiency, all key metrics in bottom-line performance. Advanced technologies Coupled with industry growth and shifting workforce demographics, the automated material handling market is being driven by improved wireless technology. Indeed, robotics and automation have paved the way for more efficient, productive and intelligent industrial operations over the years. Robotic Process Automation is, however, only the beginning. With the increasing sophistication of IoT technology, new solutions will add further value for manufacturers in years to come. As more and more businesses see the results of machine-driven solutions, next-generation robotic technologies will further amplify smart, smooth and cost-efficient materials handling operations.

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21 October 2019 Ghaya Grand Hotel Dubai, UAE accessandhandlingsummit.com Please scan here to register

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WORKSHOP

PIRELLI SUMMER TYRE SAFETY / ROLLS-ROYCE DEFENDS DIESEL / ENOCBLUE SCR FLUID LAUNCH / CONTINENTAL ENTERS E-XTREME

WORKSHOP

Pirelli praises proactive summer drivers P ZERO WORLD SEASONAL SUCCESS SHOWS TYRE SAFETY IS BEING TAKEN SERIOUSLY IN UAE TYRES

Pirelli says the summer is proving to be its P ZERO World store’s most active period to date as motorists recognise the importance of healthy tyres in UAE’s hottest months. With hot weather putting

increased strain on tyre PSI (Pounds per Square Inch) - deflated or over -inflated pressure affects reliability, performance and ultimately safety - maintenance in the summer takes on extra importance. Pirelli opened its first flagship

TOP PRIORITY Alberico Avogadro, managing director, Pirelli Middle East, says driver and road safety is the company’s highest priority.

P ZERO World store in the Middle East in January with the Dubai store joining others in Los Angeles, Munich and Monte Carlo. The premium tyre maker said it recorded best month-on-month footfall figures to date, with more than 1,500 motorists visiting the Hessa Street store from the start of its operation in January through June. With visitors able to check or change their tyres, Pirelli attributes the rise to drivers paying closer attention to vehicle safety as the temperatures increase. “Driver and road safety is our top priority. As the market leader in the premium tyre sector, Pirelli strives to deliver the best driver experience, from performance and reliability to raising awareness of the importance of tyre maintenance,” said Alberico Avogadro, managing director, Pirelli Middle East. “With the wheels the only part of the car touching the road surface, regular checks are important all year round. However, additional factors in play during summer amplify the need to focus on tyre maintenance now. It’s extremely pleasing to see that our safety messages are resonating, and our customers are recognising the need to be extra vigilant on good tyre health.”

ROLLSROYCE: DIESEL HAS A FUTURE ENGINES

Rolls-Royce Power Systems’s CEO Andreas Schell said he believes that the diesel engine remains indispensable despite changes in the automotive industry and the manufacturer’s own plans to focus on services. “We are not going to take our leave of the diesel but are convinced that it will in future continue to be an integral part of our product portfolio – in the medium term, however, to a lesser degree as is the case today,” said Schell. “Because there is often no alternative, it is constantly being developed further and we have just recently presented the fifth generation of our MTU Series 4000 engine.” Hybrid drive systems, gas engines, alternative fuels and possibly even fuel cells will in some cases replace it, he added. “Whatever happens, however, we intend to offer our customers the most appropriate solution more frequently without diesel,” qualified Schell.

INSIDE THIS MONTH’S WORKSHOP: BUSWORLD PREVIEW, AUTONOMOUS VEHICLES GO TO WORK IN LOGISTICS, THE FUTURE OF PUBLIC TRANSPORT 28 TRUCK&FLEET ME SEPTEMBER 2019

WORKSHOP

CONTINENTAL GOES TO THE E-XTREME

REVOLUTIONARY ENOCBLUE LAUNCHED LUBRICANTS

ENOC Group recently launched ENOCBlue in the UAE, a diesel exhaust fluid that reduces harmful emissions. The product, mandated by ESMA and regulated by Euro 4 and above, is one of the highest international standards for exhaust emissions and will soon be rolled out across ENOC’s retail network. The company describes ENOCBlue as a “revolutionary non-toxic, colorless, odorless, incombustible diesel exhaust fluid” that breaks down toxic nitrogen oxides (NOx) in the fuel exhaust into nitrogen (N2) and water vapor (H2O) which are naturally occurring gases that are harmless to the environment. The exhaust fluid is injected into the exhaust system for diesel engines with Selective Catalytic Reduction (SCR) system to reduce the harmful emissions by 90%. “We remain committed towards enhancing the UAE’s sustainability,” said HE Saif Humaid Al Falasi, Group CEO, “With the government’s plans to have public transport account for 30% of all travel movement in Dubai by 2030, we see an opportunity for us to have a positive impact on the country’s environmental fabric by introducing products that contribute to lowering emission standards. We will continue to align with our country’s goals in the public transport sector.” Many countries across the world have begun to adopt Euro 6 standards since September 2015 and all mass-produced vehicles are required to comply with these standards. SCR has been installed in all diesel vehicles to meet Euro 6 emission legislation which necessitates the use of diesel exhaust fluids such as ENOCBlue.

TYRES Two new Continental tyre types, specially developed for the offroad racing series Extreme E, have made their global debut. As a founding partner of the electric racing series competition, Continental is providing tyre technology for this unprecedented rally driving competition. The new tyres, with summer and winter tyre technology and designed for the world’s toughest driving conditions, were unveiled at the Goodwood Festival of Speed along with the unique electric sports utility vehicle. Together, driver, car and tyres will tackle some of the most extreme locations across the globe, from the Himalayas and the Arctic to the Indian Ocean and deserts. “At Continental, we pride ourselves as leaders in groundbreaking automotive technology and so our partnership with Extreme E comes naturally,” said

TOUGH COMPETITOR Continental is guaranteeing perfect grip for acceleration, braking and precision handling on the toughest tracks.

Karel Kucera, managing director, MEA, Continental “With the cutting-edge tyre designs that we developed for Extreme E e-SUVs, we guarantee perfect grip for acceleration, braking and precision handling on the toughest tracks.” According to the manufacturer, all Extreme E teams must use the same set of standardised equipment, created and assembled by motorsport

manufacturer Spark Racing Technology, equipped with a battery manufactured by Williams Advanced Engineering, as well as Continental tyres. Prototype testing of the electric SUV has now begun in earnest. Extreme E team will receive two sets of summer and winter tyres, optimised for every conceivable facet of performance and safety required by their electric SUVs.

BMW DOUBLES BATTERY PRODUCTION CAPACITY BATTERIES

BMW Group Plant Spartanburg in the US state of South Carolina says it has doubled its capacity for production of high-voltage batteries. The plant’s own battery facility now produces the new fourth-generation batteries. These are intended for the

plug-in hybrid models of the new BMW X5 and the future BMW X3, also produced in Spartanburg. “We have invested around ten million US dollars in a new battery assembly line and expanded the area to more than 8,000 square metres. This means we could double the

POWERING AHEAD The new assembly line will be able to produce different types of fourthgeneration batteries to serve the growing range of electrified vehicles.

number of batteries produced if needed to meet market demand,” explains Michael Nikolaides, Senior Vice President Engines and Electrified Drivetrains, BMW Group. The new assembly line will be able to produce different types of fourthgeneration batteries to serve the growing range of electrified vehicles locally. These batteries are based on a new technology concept that further enhances their performance. More than 120 people will be employed in battery production at Plant Spartanburg by the end of the year, having completed a comprehensive training programme to acquire the technological know-how needed for battery production. “We have produced batteries on site at Plant Spartanburg since 2015 – making the BMW Group a pioneer for electromobility in the US,” says Knudt Flor, CEO, BMW Manufacturing, Co., LLC. In the past four years, the plant’s battery assembly team has produced a total of more than 45,000 batteries.

SEPTEMBER 2019 TRUCK&FLEET ME 29

FEATURE

TRANS AUTO EXPRESS As Vera goes on trial, DFDS looks at how self-driving trucks can impact logistics

he subject of self-driving trucks has evolved from utopian fever dream to a serious prospect in no time at all. In fact, experts estimate that the road to nearly fully autonomous fleets will not be much more than a decade long. Regardless, the implementation of self-driving technology will happen gradually and require more than a little oversight until the autonomous infrastructure is refined further. There is, however, plenty of incentives to work towards a more autonomous supply chain: from lessening the industry’s environmental impact to slashing logistics costs by up to 40% as estimated by McKinsey.

30 TRUCK&FLEET ME SEPTEMBER 2019

Companies like Scania and Volvo have already taken the first steps towards self-driving fleets. In 2016, a fleet of semi-autonomous Scania trucks completed a journey from Sweden to the Netherlands using a technique called platooning, in which a driver pilots the leading vehicle while the rest follow along automatically. Meanwhile, Volvo is taking steps to bring self-driving products to market and just last year signed a minor contract for autonomous logistics with a Swedish mine. While there are obvious benefits to autonomy – from streamlining delivery lead times to slashing operational costs – the technology presents more complicated upsides and challenges than most realise.

We see this collaboration as an important start and want to drive progress in this area”

In terms of upsides, self-driving technology will enable companies to tap into their latent capacity and effectively eliminate off-hours. Machines won’t have to take breaks, can work nights, don’t take vacations and so on. To that effect, Strategy& estimates truck usage to rise from the current 29% to an impressive 79% thanks to autonomous technology. Additionally, autonomy may help to resolve the industry’s mounting personnel issues, with qualified truck drivers being in increasingly short supply. Autonomy will also play a part in reducing the industry’s impact on the environment as platooning will minimise air drag and optimise fuel consumption. As for challenges, the question of jobs

FEATURE

is often brought up. However, it’s difficult to predict the exact impact of autonomy on employment numbers. This is, in part, because of the current shortage of drivers, which will likely only worsen as a considerable percentile of truckers is set to retire in the next decade or so – in tandem with the predicted rise of self-driving vehicles. Furthermore, it’s important to note that self-driving trucks will require plenty of monitoring and assistance in the short term, and almost certainly create a significant number of new jobs in the long run. Apart from the subject of jobs, autonomous logistics is sure to have ripple effects throughout related industries. For instance, restaurants, gas stations, hotels and so on, which depend on their proximity to busy highways will likely suffer a loss of business. Additionally, the industry will have to overcome certain legal obstacles before large-scale implementation of the technology is feasible. It’s precisely this combination of tremendous upsides and significant challenges that makes autonomous driving such a hot-button topic. While the subject is frequently reported on, the finer details tend to get lost in the conversation. There are at least three ways in which self-driving trucks will impact the logistics industry tremendously. Changing Paradigms

Current liability regulation is based on the premise that vehicles are operated by drivers who can be held responsible in the case of accidents. That, of course, isn’t the case with self-driving trucks. The issue of liability is essential to the future of autonomy, as both regulators and citizens need assurance that the responsible party will be held to account when things don’t go according to plan. “In that sense, legislation is the greatest obstacle for autonomous logistics,” says Mads Bentzen Billesø, Senior Project Manager of Innovation and Technology at DFDS. “I’m certain the technology will mature. The question is whether the law will catch up.” It’s not clear who exactly should be liable in the case of accidents with autonomous vehicles - the manufacturer, the software running the car or the supervisor monitoring the fleet from afar? Still, the impact of the accountability conundrum on the industry is crystal clear. “For some manufacturers, a single accident is all it would take to swing public opinion and close down their production,” says Billesø. And yet, one could argue we’re all viewing safety in the wrong light. While it’s true that self-driving technology

isn’t adept at handling certain edge events like, for instance, a flat tire, autonomous vehicles are generally safer than their human-operated counterparts. “There is no question that autonomous vehicles are safer – that goes for autonomous vessels too,” says Billesø. Indeed, some studies suggest that we can save lives by diminishing the human element of transportation sooner rather than later. The reasoning is that machines don’t fall asleep at the wheel or run red lights to make their next meeting and so, some of the estimated +90% of crashes caused by human error may be avoided. With that in mind, the conversation around safety is skewed unevenly towards disaster scenarios, concludes

Now we have the opportunity to implement Vera in an ideal setting and further develop her potential”

Billesø: “The discourse is focused too heavily on the 2-5% of cases, where autonomous technology alone won’t cut it, and too little on the majority of cases in which the technology could improve safety massively.” Benefitting drivers

There’s no denying that truckers have it rough. Drivers work long and irregular hours; their routes take them far away from friends and family and, on top of that, they’re counted on to do their own heavy lifting if need be. “We need to look at how autonomous solutions can benefit our drivers. If the technology can, for instance, reduce the need to work nights, we could take massive strides in improving

TRIAL RUNS FOR VERA Volvo’s Vera is being tested to see how it can transport goods from a logistics centre to a port terminal in Gothenburg, Sweden.

A DREAM BECOMES A REALITY Volvo Trucks presented Vera, its first electric, connected and autonomous solution, designed for repetitive assignments in logistics centres, factories and ports last year.

SEPTEMBER 2019 TRUCK&FLEET ME 31

FEATURE

working conditions for truckers,” says Billesø. The whole idea is for the autonomous technology to complement the efforts of drivers and ultimately reduce the strain of long-haul drives, heavy lifting and more. It’s an approach popularly dubbed ‘Human in the Loop’. “We’re currently part of a research project out of Århus University which explores how humans and robots can interact optimally,” says Billesø. “So far, we’ve only been confirmed in our belief that the best results are achieved when you delegate mundane, repetitive tasks to robots and leave creative thinking to humans.” As such, self-driving technology is poised to shoulder many of the heavy burdens of long-distance trucking and improve working conditions for drivers.

If you’re able to strike up the right partnership between experts in transportation and technology, you’ll simply outperform the competition”

Greener logistics

For the shipping and logistics industry, the future is and has to be green. To reduce its

environmental impact, the industry will have to rely on a patchwork of solutions counting optimisation through IoT technology, alternative fuel sources and more. In that respect, self-driving trucks will play an important part in making logistics greener. “Autonomous systems will be able to optimise their performance towards environmental targets, reducing fuel consumption by upwards of 40%,” says Billesø. Additionally, autonomous tech could make battery powered trucks more economical, says Billesø: “One underlying issue of electrical trucking is the expense of having a long-haul trucker waiting around for hours whenever the truck needs to charge.” Without that expense, electrical trucking would become all the more viable from a business perspective. Self-driving fleets will, undoubtedly, be a game changer for the logistics industry, but the question is how companies can

make the most of the new technology. “Through partnerships,” says Billesø. “If you’re able to strike up the right partnership between experts in transportation and technology, you’ll simply outperform the competition.” As such, success will hinge on any logistics provider’s willingness to open up, share findings and experiment with their expert suppliers. However, partnerships between tech and transportation won’t cut it, unless the authorities are kept in the loop, Billesø predicts: “Sweden has become one of the vanguards of autonomous trucking, in part because the Swedish companies have managed to include the transport authorities early on in every project.” All companies should strive toward developing close partnerships with the authorities for myriad reasons. First of all, such partnerships ensure that public welfare is prioritised over profit. Secondly, it’s the

PARTNERS IN AUTONOMY Volvo Trucks and DFDS are main partners but several actors are involved in implementing Vera’s first assignment, including APM.

VERA’S FIRST ASSIGNMENT Vera’s first assignment is to move containers from the DFDS logistics centre in Gothenburg to an APM terminals container terminal according to needed capacity. The autonomous system is monitored by an operator in a control tower who is also responsible for the transport. The solution is suited for repetitive flows with a maximum speed of 40 km/h.

Infrastructure adaptations are part of the scope in the implementation of the total transport system, including automated gates at the terminals. Volvo Trucks and DFDS are main partners but several actors are involved in implementing Vera’s first assignment. DFDS provides ferry and transport services in Europe and Turkey, generating annual revenues of around DKK

32 TRUCK&FLEET ME SEPTEMBER 2019

17bn. The 8.000 employees are located on ships and in offices across 20 countries. DFDS is headquartered in Copenhagen, and listed on NASDAQ Copenhagen. APM Terminals is a port service and container terminal solution provider, operating a network of 76 ports globally. APM Terminals is a part of A.P. Moller – Maersk, an integrated container logistics

company working to connect and simplify its customer’s supply chains, operating in 130 countries and employs roughly 70.000 employees. The initiative is carried out with support from the Swedish Innovation Agency Vinnova, the Swedish Transport Administration and the Swedish Energy Agency through the Strategic vehicle research and innovation programme FFI.

FEATURE

authorities who will ultimately decide when and how technology can be tested in public. Lastly, closer ties to the authorities will lend credibility to autonomous trucking as a whole and positively impact the greatest prerequisite for success: public perception. Vera starts testing

A new collaboration between Volvo Trucks and DFDS is exploring how the OEM’s electric, connected and autonomous vehicle Vera could form part of an integrated solution to transport goods from a logistics centre to a port terminal in Gothenburg, Sweden. The purpose of the collaboration is to implement Vera in a real application, enabling a connected system for a continuous flow of goods, from a DFDS’ logistics centre to an APM Terminals port facility in Gothenburg, for distribution across the world. In 2018, Volvo Trucks presented its first electric, connected and autonomous solution, designed for repetitive assignments in logistics centres, factories and ports. Vera is suited for short distances, transporting large volumes of goods with high precision. “Now we have the opportunity to implement Vera in an ideal setting

BEYOND THE PORTS It is hoped Vera has the potential to be used in closed logistics hubs beyond ports, says Mikael Karlsson, VP Autonomous Solutions at Volvo Trucks.

and further develop her potential for other similar operations,” says Mikael Karlsson, Vice President Autonomous Solutions at Volvo Trucks. The aim is to implement a connected system consisting of several Vera vehicles monitored by a control tower. The purpose is to enable a seamless and constant flow responsive to demands on greater efficiency, flexibility and sustainability. The collaboration with DFDS is a first step towards implementing Vera in a real transport assignment on pre-defined public roads in an industrial area. “We want to be at the forefront of

Autonomous transports with zero exhaust emissions will benefit business and society”

connected, autonomous transportation. This collaboration will help us develop an efficient, flexible and sustainable long-term solution for receiving autonomous vehicles arriving at our gates, benefitting our customers, the environment and our business,” says Torben Carlsen, CEO of DFDS. The autonomous transport solution will be further developed in terms of technology, operations management and infrastructure adaptations, before it can be fully operational. Moreover, necessary safety precautions will be taken to meet societal requirements for a safe path towards autonomous transports. As Volvo Trucks gains more experience, Vera has the potential to be used in similar applications as a complement to today’s transport solutions. “Autonomous transports with low noise levels and zero exhaust emissions have an important role to play in the future of logistics, and will benefit both business and society. We see this collaboration as an important start and want to drive progress in this area. Vera may have a speed limit, but we don’t. Testing has already started and we intend to implement the solution within the coming years,” adds Mikael Karlsson.

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SEPTEMBER 2019 TRUCK&FLEET ME 33

SHOW PREVIEW

A CHANGE OF PACE

The European home of Busworld is in flux as the event returns

here are both threats and opportunities on the horizon for bus and coach manufacturers and operators. The Euro VI standards have been in force for several years and are demonstrating admirably low levels of emissions. However, the European Union has been monitoring air quality in many cities and is demanding urgent action for cleaner air, principally to improve standards of health, especially for children. At the same time, diesel has become a dirty word in the mainstream media following the cheating scandals by more than one car maker. Fortunately, most of the media seems to realise that there are much more strict test standards for heavier vehicles, including buses and coaches. There is no doubt that some urban areas suffer badly from air pollution and steps must

34 TRUCK&FLEET ME SEPTEMBER 2019

be taken to reduce it. This has created political pressure for the introduction of ultra low or zero emission zones in urban areas. This is a major challenge for bus operators. They need to know that, if they buy Euro VI buses today, they will still be acceptable in fifteen years time. When emission standards are established internationally, everyone is on a level playing field. When local politicians create limits for their cities, that is a completely different issue. For instance, the target in Paris is to have, by 2025, a fleet of 4,500 buses of which two thirds are zero emission and the other third run on natural renewable biogas. That will require a massive investment not just in vehicles but also in recharging facilities at each depot. In London, the Mayor has introduced an Ultra Low Emission Zone, covering much of the central area. All the buses that run within this area are Euro VI, hybrid or electric. However, it has caught out many coach operators and

Buses can play a major role in urban transport, offering faster and more comfortable journey timesâ&#x20AC;?

caused serious problems for tourism and the theatre business. A pre Euro VI coach has to pay ÂŁ100 per day to enter the ULEZ zone. The coach owner has to pass that on to his passengers and also suffers from a sharp drop in the resale value of any pre Euro VI coach in his fleet. Continuing with the need for a level playing field, local legislators are often reluctant to restrict the owners of older cars, because, a cynic might say, every car owner is a local voter! The number of cars entering urban areas must be restricted. That will further reduce emissions, reduce congestion, and speed up the flow of traffic, because there will be less stop-start driving. If the use of cars can effectively be restricted, buses can play a major role in urban transport, offering faster and more comfortable journey times. This will make services more acceptable to existing passengers and hopefully encourage new customers.

SHOW PREVIEW

Bus manufacturers have made major progress in the reduction of vehicle emissions but, by their nature, buses tend to have an operating life of at least 15 years, therefore many vehicles built to earlier emission limits remain in daily service in urban centres. There need to be incentives to encourage the replacement of these older buses. Manufacturers and operators need to sit down with local authorities and legislators to plan how this can be done economically and reasonably while still helping to meet urban air quality limits. In the last few years, the bus and coach industry has gone through a more rapid period of product development than ever seen before. This is having an impact on operators, manufacturers, and suppliers of ancillary components and services This pace of change will become clearly apparent at Busworld Europe, the first edition to be held in the Expo Centre in Brussels, from 18 to 23 October. While it has been a wrench to leave the traditional home in Kortrijk, the move to Brussels offers much more space for exhibitors and visitors. The capital of Belgium is easier to reach and has far more hotels and restaurants. There are also excellent transport links to the Expo Centre, and they will benefit exhibitors and visitors. New bi-articulated Van Hool buses will run on a Bus Rapid Transit service between the airport and the Expo Centre. Registrations of buses and coaches above 8.0 tonnes gross in Western Europe in 2018 were slightly higher than the previous year, with encouraging signs of growth in Italy and Spain. Operators have accepted Euro VI engines and in many cases have found improvements in fuel economy, compared with previous engines. On city buses, there are interesting trends. While the market is still dominated by diesel buses, demand is being impacted by CNG, hybrid and electric vehicles. Those who predicted ten years ago that hybrid vehicles might be a passing phase are being proved correct. Hybrid appears, more and more, to be a stepping stone towards full electric propulsion. Two years ago, at Busworld Europe, there were plenty of electric buses and minibuses on view, but sales tended to be in small numbers. Understandably, the operating industry wanted to proceed carefully with the new technology, learning how to recharge, repair and use the new electric vehicles in all climates and in all kinds of terrain, day and night. That phase is still around, but some of those who have had experience of electric buses now feel more confident and are placing large orders. For instance, it is understood

STILL RELYING ON DIESEL Although electric buses are becoming more available, the industry is likely to be dependent on diesel for years to come

that Solaris and Mercedes-Benz were the only two manufacturers who had quoted ATM, Milan, for the supply of 250 electric buses. At Busworld Europe, we can expect to see electric vehicles available from all the main manufacturers either on their booths, in the demonstration park, or in catalogues if space does not permit. Coaches are likely to rely on diesel fuel for many years to come. They need to be flexible and capable of carrying large amounts of luggage on some assignments. However, they f ace the challenge that they might be excluded from historic cities which implement ultra low or zero emission zones. The supply industry continues to innovate. A new bus without wi-fi, passenger information systems and closed circuit

In the last few years, the industry has gone through a more rapid period of product development than ever â&#x20AC;?

BUSWORLD PREMIERES Despite its new home in Brussels, Busworld remains an important event for the launch of new vehicles.

television is becoming rare. Passengers expect connectivity and a constant feed of information. This in turn has brought large numbers of information technology suppliers into the industry. Modern satellite systems are a great help to drivers using unfamiliar roads. They can be accurate to within a metre or two and some can also warn about potential hazards like low or weak bridges. In the last few years, the bus and coach industry has gone through a more rapid period of product development than ever seen before. This is having an impact on operators, manufacturers, and suppliers of ancillary components and services. Safety is also high on the agenda. The bus and coach industry has a commendably good record of very low numbers of people who are killed or seriously injured, whether on a vehicle or in a collision with a bus or coach. However, every death is a major tragedy not just for families and friends but also for the wider perception of the industry. As an example, there have been developments of mirror systems that are able to detect pedestrians and cyclists in what were previously considered to be blind spots. Information technology developers and suppliers have been keen to work with the bus industry. Payment systems have become much more sophisticated but also much faster. When drivers had to handle cash, it took quite a long time for all the passengers to board the vehicle. Tap-in and scanning systems work so rapidly that a boarding passenger does not have to break his or her pace. Office to vehicle communication has been around for several years but is always getting better. Workshops can monitor the performance of a vehicle on the road. The next development is vehicle to vehicle communication. SEPTEMBER 2019 TRUCK&FLEET ME 35

FEATURE

AT THE CORE OF MOBILITY

UITP’s latest Public Transport reports on the trends in the sector

he UITP Public Transport Trends Report highlights some of the driving trends and challenges that are shaping public and urban transport. The latest edition illustrates how the sector is responding to urban mobility innovations and, in many cases, shows leadership in implementing them With each innovation, each new challenge we address, we are pushing the boundaries of the very definition of our sector. While mass public transport will remain the backbone around which sustainable mobility solutions will thrive, the multiplicity of complementary solutions is making the

36 TRUCK&FLEET ME SEPTEMBER 2019

passenger transport market more complex. We once limited the definition of public transport to mass public transport, combining public access and collective use, but it is only one element of that definition, which now encompasses every collective or shared mobility solution. In other words, public transport should include all collective and shared modes. Trends on technological and business evolution paradoxically reinforce the importance of the human dimension in public transport: the people who public transport connects and supports. It is with a people-driven mindset that we will succeed in redefining public

The public transport sector is striving to adapt to a changing cost structure”

transport, for the benefit of all. With this in mind, the Trends Report begins by highlighting the challenges in addressing our customers’ needs, and shows how our organisations need to further work on attracting talents and developing skills to make the most of technological innovations to better serve our customers. With an increasingly complex mobility offer, which shows great potential if steered towards sustainable urban transport solutions, the report addresses the challenge for governance models to preserve the urban mobility mission — to serve the public good, and more directly, the people — while maintaining a business approach. The role of authorities and their

FEATURE

progressive assertion in some parts of the world is very important in this respect. In parallel to these efforts, the public transport sector is striving to adapt to a changing cost structure and to manage financial constraints by exploring new revenue sources. To deliver customer service excellence, the sector has to adapt to a rapidly changing environment determined by evolving customer expectations and technological changes. This requires putting the customer at the centre of the system, and delivering peoplecentric transport systems. This means adopting a human-centred approach in solution design, management and decision making, and changing the structure and business culture of organisations to reflect the customer-centricity. Leading public transport operators are demonstrating that when customer service excellence is identified as a priority investment, it delivers tangible and rewarding results. Customer expectations are changing, and transport is now expected to create a memorable experience for customers. It involves providing a global, fluid and integrated mobility customer experience; ease of use and comfort are key for user satisfaction and market differentiation. Public transport is also expected to build personalised mobility services through data-driven transit design and the application of artificial intelligence. This creates the possibility of moving towards an integrated and intelligent mobility, powered by smart use of data and digitalmarketing solutions. The sector must work to serve a diverse range of customers, including all personalities, from elderlies to millennials, whose lifestyle choices have an impact on mobility. There is also an increasing acknowledgment that gender influences modal choice and travel habits as much as, if not more than, age, professional status, and other socio-economic factors. Involving customers in the design of the services is increasingly important for this reason, and opens opportunities to co-create tomorrow’s mobility. The quality and coherence of the customer experience relies on the quality of the physical environment. For this reason, operators and authorities, by focusing more and more on the integration of public transport in the urban environment, are also becoming public space planners, and not only pure transportation providers. This allows us to improve accessibility to all categories of customers, an essential part of the customer service. As organisations are becoming

ALL ABOUT THE SERVICE Leading public transport operators are demonstrating that when customer service excellence is identified as a priority investment, it delivers tangible and rewarding results.

increasingly customer centric and adapting to technological change, while continuously aiming at improving their operational and financial performance, they are making it a priority to attract talents and develop the skills of their employees to enable them to adapt and grow in their companies. This starts with the adoption of a customer-centric culture, which must be driven by the existing staff and the leaders of the organisation to support the transition. Several examples around the world illustrate how public transport is fostering a culture of continuous learning to support people development. Metro Santiago, for instance, is measuring workers’ positive

A digital revolution is making the acquisition of new talents a top priority for many in a globalised economy”

impact on people who use their services. Achieving excellence in service delivery and customer satisfaction can only be realised by dedicated and motivated staff capable of delivering high quality services to keep customers coming back. At the same time, a digital revolution, and the growth of the sector, are making the acquisition of new talents a top priority for many in a globalised economy in which it is vital to build a digitally native workforce. We observe that public transport organisations are responding to the challenge by increasingly collaborating with local universities and by developing their own training academies and programmes. Our workforce suffers from a serious lack of diversity, in particular a strong deficit of women employment. Creating a more inclusive work force and progressively correcting this gender gap by attracting more women as employees is an important element in the path forward for recruiting and attracting talents. To support these evolutions, the mission of human resources departments are evolving from resource management to talent empowerment. This contributes to reshaping the culture of companies and the employee’s environment, with the aim of reinventing the employee experience to establish oneself as employers of choice in the city. With this new corporate culture, public transport is progressively better fit to anticipate the next major evolution in the sector, and work together with its employees to make the most out of the potential of

ACHIEVING EXCELLENCE Achieving excellence in service delivery and customer satisfaction can only be realised by dedicated and motivated staff capable of delivering high quality services to keep customers coming back.

SEPTEMBER 2019 TRUCK&FLEET ME 37

FEATURE

MORE DATA THAN EVER New regulation and controls will be needed as public transport becomes more data-driven.

automation and further digital disruptions. As public transport becomes increasingly a data-driven sector, and while new actors offer a broader range of mobility services with uncertain business models, which interfere with current transport systems and urban infrastructure, governance models have to be adapted. From the growth of ride hailing, the deployment of on-demand services and the emergence of micro-mobility, the challenge is to develop governance frameworks that take advantage of innovation, while steering developments towards truly sustainable urban transport solutions benefitting the communities.

The Riyadh development agency has been able to raise $278mn with naming rights”

KEEPING CREATIVE Public transport organisations must make the most of micromobiity, such as Hala in Dubai, without stymieing its growth.

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Regulation should ensure that fair rules are set, for instance, on the use and sharing of data, and that data produced by public transport is well valued. With the emergence of new business models, we are increasingly observing incumbent public transport companies now able to “disrupt” themselves and offer new mobility solutions, such as MaaS or on-demand ride-sharing services. This indicates that with the right governance framework, a convergence of actors towards the most promising services to complement mass public transport solutions can rise. With such an active environment, transport authorities play an ever important role, which extends beyond the usual realm of public transport governance to the regulation and management of the whole urban transport system. In Africa, for instance, a growing number of transport authorities are being established to organise urban transport, and contribute to governance models more likely to answer the specific challenges of developing mass public transport infrastructure and services, addressing informal transport and capitalising on innovative solutions. After considering its impact on the relationship with customers, on employees and on governance models, technology, and in particular digitalisation, creates significant opportunities for containing costs and improving operational efficiency. This will eventually have an impact on the cost structure of public transport companies. Digitalisation enables, in particular,

OPTARE MIDI-BUS ENTERS DUBAI SERVICE The RTA Solo is a new derivative of Optare’s ground breaking midibus. This 8.5m variant has been developed in partnership with the RTA to provide a nimble fuel efficient feeder vehicle that can gain access to areas not open to larger buses. The first of its kind in the region. This wheel forward vehicle can carry up to 32 passengers in a bespoke configuration on a compact low floor, fully accessible platform. The RTA’s specification includes many new and state-of-the-art features such as Geo-fenced saloon air conditioning, colour destinations, real time passenger information and telematics. The Optare team subjected a specially built prototype vehicle to rigorous climate testing to ensure that passengers travel in air conditioned comfort and the bus delivers in ambient temperatures beyond those experienced in even the hottest Dubai summers. Optare’s CEO Richard Butler, said he was proud to see the project reach a successful conclusion: “The RTA Solo presented the business with many new technical challenges. We have bettered these challenges. I believe the Solo will provide the RTA with a powerful tool in growing patronage in Dubai and Optare an opportunity for growth in the region.” HE Mattar Al Tayer, director general of the RTA said: “The delivery is part of RTA’s masterplan to improve public transport and keep pace with the top international standards. Our objective is to deliver best-in-class services and match the sustained growth in the number of riders.” The new buses will be deployed on 17 routes including metro link buses, low-demand routes and serve residential areas that do not need large buses.

FEATURE

condition-based and predictive maintenance, which provide significant cost reductions. They not only reduce maintenance costs but also increase fleet availability and operational readiness. The electrification of public transport is a confirmed trend with the progressive implementation of ambitious programmes for the deployment of electric bus fleets, in Europe, but also in North America and India. These regions follow China where the number of electric buses is far bigger than anywhere else in the world, with over 350,000 electric bus in operation. The electrification of bus fleets has important impact on cost structures. Indeed, the cost of acquisition of vehicles, of energy of course, but also of the infrastructure, of maintenance and of operations, have to be adapted to the type of propulsion, and differ significantly from what has been done with diesel buses. While the cost structure is changing, public transport companies are also looking for a more stable funding model. They are constantly exploring alternative revenue sources, including better exploiting existing assets. It is a growing understanding that while public transport benefits a much broader range of actors than it serves directly, authorities are expecting to support schemes making all beneficiaries of public transport pay. In this respect, Land Value Capture is

THE MOVE TOWARDS ELECTRIFICATION Electric mobility comes at a premium compared to traditional modes of transport. Organisations need to seek sustainable funding to ensure its success.

still expected to be a virtuous scheme for the city, businesses and public transport actors. We are also observing a trend towards the implementation of demand management schemes, from parking to congestion charging, with the goal, among others, to raise funding for public transport. This is not exclusive of the permanent efforts of authorities to optimise fare revenues. With the growth of public transport and its diversification, come new opportunities to raise additional revenues. The Riyadh

We are pushing the boundaries of the very definition of our sector”

development agency, for instance, has been able to raise $278m (€245m) with naming rights when launching its new metro network. Upstream, providing a MaaS platform in Vienna, is attempting to make the most out of the data it collects. Online: The UITP Trends Report analyses these trends to support the public transport sector to grow and lead the transition towards a more sustainable urban transport system for more liveable and competitive cities.

SHARING (TRANSPORT) IS GOOD As much as 296.22 million riders have used public, shared transport and taxis in the first half of this year in Dubai. The number reflects a healthy 6.5% growth rate from the figure recorded in the same period last year, which was 277.91 million riders. The average daily ridership of mass transit means during the first six months of this year amounted to 1.618 million riders.

Reflecting on the statistics, HE Mattar Al Tayer, Director-General and Chairman of the Board of Executive Directors of Roads and Transport Authority (RTA) said, “March was the busiest month during the first half of the year attracting about 53.198 million riders of public transport means. The breakdown of ridership in March was as

following: 18.1m riders used Dubai Metro, 15.7m riders used taxis, 14.3m riders used public buses, 3.2m riders used shared transport (e-Hail and Smart Car Rental), 1.3m riders used marine transit modes, and 555,000 riders used the tram service.

“January was the second busiest month recording 51.668m riders, and the monthly average number of riders during the remaining four months ranged between 50 to 45m riders,” he added.

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PARTING SHOT

GPX TAKES SPA CROWN

Dubai-based race team, GPX Racing wins the world-famous 24 Hours of Spa

young team based in Dubai survived challenging wet conditions to score a surprise win at the 71st 24 Hours of Spa motor race. Supported by Porsche GPX Racing competed in the world-famous race only weeks after being admitted onto the roster. Managed by Pierre-Brice Mena and despite boasting three former world title winners, the Dubai-based motorsport team was not considered a favourite but claimed overall victory to ensure the United Arab Emirates national anthem rang out around the race circuit. With only a few months’ experience in the Blancpain GT Series and with the 911 GT3 R to take on the fight to match the benchmark set by competitor teams in the championship, racing drivers – Michael Christensen, Kévin Estre and Richard Lietz – fought at the front of the field from start to finish and gave the Porsche its first

victory in the Ardennes classic since 2010. GPX Racing laid down a marker right from the practice session of the world’s biggest endurance race for Grand Touring cars. The combined efforts of its three drivers put the #20 Porsche among the top 20 cars – out of 72 entries – into the Superpole shoot-out. Driver, Estre, clinched 11th place on the grid and then set the fastest time in night practice, which gave the team a huge motivational boost. As the rain began to batter the race circuit Kévin immediately began to carve his way up to the front of the pack. The French driver picked off his rivals one by one and finished his first stint in the lead! The #20 machine continued to battle it out with the other top teams, but the squad was handed a penalty during a pit stop. Luckily, it managed to pull back the time lost, in particular by taking advantage of a neutralisation to carry out the obligatory 5-minute technical stop. The drivers’ speed, motivation to bring home victory to the UAE, and the pertinence of

the strategic decisions paid off and at 16:30 the Porsche – adorned in the famous Gulf Motorsport colours - crossed the finishing line to win the race. “It hasn’t quite sunk in yet,” said Mena. “A month ago we didn’t even know if we would be competing in this race. When we turned up at the 24 Hours of Spa with such a strong driver line-up we knew we could do a good job - but there were so many parameters. We made a great start to the race and then we had a drivethrough. Above all, we had to avoid falling a lap behind. We fought our way back among the few teams capable of winning in the final hours. “When you have such an opportunity to go for victory you have to grasp it with both hands. We were never able to relax with the traffic and the battle right to the end with the other victory contenders and the incredibly challenging track conditions. But we finished with not one technical issue. A big thanks to Porsche, to the team and to all our partners for this extraordinary moment.”

NEXT ISSUE: BUSWORLD REVIEW, FLEETS IN THE REGION WITH AUDI, THE DRIVE TO SELF-DRIVING WITH PTV GROUP, AND MUCH MORE!

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All-Steel casing Excellent traction Outstanding stability High puncture resistance Long tire life SR45H2