VEHICLES/ TECH / TRANSPORTATION/LOGISTICS
O85/APRIL 2O21
MIDDLE EAST
LI CENSED BY D U BAI D EVELO PM ENT AU TH O RIT Y
C I R T C E L E THE NEW
! S R E K C SHO
ant w o h w s r e t srup i d g n i d a e l the t a s k o o l E T&FM les c i h e v c i r t c e to make el ts e e fl r o f e l a f f o r d ab
R E T S A M 1 2 20 E R FO R 2021 M A ST
RENAULT’S ES TO UAE M O C S E D A A LL TR
Date
Venue
27 May
Radisson RED
RADISSON RED / DUBAI / UAE
The future of fleet in the GCC and the route to a sustainable industry 27 May 2021
About the
T&F Conference
More than ever, fleet operations must control their costs and remain competitive in a highly dynamic market. Those that will succeed will be those that can be agile and open to new ideas.
Are you ready for the new normal? The second edition of our flagship conferences will continue to help fleets in the UAE run leaner, safer, more efficiently, while making the most of the new normal.
Ultimately, only fleets armed with up-to-date market information and a deep understanding of the cutting-edge technology and services available to them will have everything they need to be successful.
After a successful inaugural event and a turbulent 12 months, the demands on fleets to be key players during the pandemic and the rebuilding to follow have never been greater. But this is also an exciting time where opportunities such as e-commerce, last mile delivery services and digitalisation can take an operation to another level.
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CONTENTS
CONTENTS INTERVIEW
18 / VOLTA: MAKING EVS AFFORDABLE Insight into how Volta Trucks is attempting to create electric trucks affordable for fleets.
ALSO THIS ISSUE … NETWORK
06 / NEWS FROM THE MONTH
06
10
12
22
26
30
United Stars earns a contract renewal with SABIC in Saudi Arabia. LAUNCHES
10 / A MASTER FOR ALL TRADES This month’s launches includes the flexible new Master van from Renualt. INTERVIEW
12 / ALEX SCHEY INTERVIEW T&FME talks to Allison Transmission’s adventrurer, disrupter and pioneer. FLEET
16 / THE FIRST RESORT T&FME looks at how The Red Sea Project is changing the way vehicles work on site. AUTONOMOUS VEHICLES
22 / DATA IN THE DIRT How Volvo Trucks is using data to focus on autonomous mining. MARKET ANALYSIS
26 / PORT REPORTS KPMG report reviews how GCC ports and logistics is playing its role in re-shaping the economy. DESIGN
30 / THE ESSENCE OF ‘Z’ Nissan’s chief product specialist Hiroshi Tamura on designing the Z Proto to fit with the Japanese brand’s DNA.
meconstructionnews.com
APRIL 2021 01
WELCOME
GROUP MANAGING DIRECTOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5483 MANAGING PARTNER VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5472 EDITORIAL
ELECTRIC VEHICLES: GETTING DOWN TO THE NITTY- GRITTY As any seven year old waiting for their birthday will tell you, the closer the big day gets the further it seems to be away. We have been talking about electric vehicles, and specifically electric trucks, as the cure-all answer for our fleet woes in Truck&Fleet Middle East magazine almost since our first issue way back in 2013. And yet, like your wrapped up GI Joe tank, Optimus Prime, Cabbage Patch Kid or whatever the modern day equivalent is (checks with nearby seven year old son…. apparently it’s a baby Yoda), they always seem to be agonisingly just around the corner and never in your hands. Could that be about to change, I wonder? The good news I found after a lot of digging around last month, is that we finally seem to have broken through the technology barriers of battery space and capacity versus vehicle capacities and ranges. This is particularly true of vans and light trucks tasked with delivering in the bright lights of the city where the charging is green and the incentives are pretty good for fleets. You don’t even have to be involved in the industry to know that it has become infinitely easier to switch to electric when you are spending most of your time on a city highway. In fact,
chances are you are now only two or three degrees away from knowing someone who owns one (take that Kevin Bacon). It stands to reason then, that a sector that will see financial benefits from investing in electric vehicles – as they can open a new array of business opporutinities – and guarantees access to parts of the urban environment long after diesel guzzlers have been ruled out, should have an electric truck or van on their birthday wishlist....if it wasn’t for the double or triple premium you need to pay up front to do it. Fortunately, we are starting to see real progress in bringing the costs down and could reach parity. Talking to Vantage Power founder and Allison Transmission chief commercial officer Alex Schey there is real scope to make the technology viable even for heavy duty applications in the near-future. Volta Trucks, meanwhile, are not only creating their own truck from the ground-up but also putting together a financing/leasing package that could make them more accessible than ever. While I’m not sure my son would be interested in recieving a Present-asa-Service but being able to get a truck through Volta’s TaaS scheme definitely looks a worthy gift for fleets.
EDITOR STEPHEN WHITE stephen.white@cpitrademedia.com +44 7541 244 377 DEPUTY EDITOR PAUL GODFREY paul.godfrey@cpitrademedia.com ADVERTISING SALES MANAGER BRIAN FERNANDES brian.fernandes@cpitrademedia.com +971 4 375 5479 DESIGN ART DIRECTOR SIMON COBON simon.cobon@cpitrademedia.com DESIGNER PERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com PHOTOGRAPHY MAKSYM PORIECHKIN maksym.poriechkin@cpitrademedia.com 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 SADIQ SIDDIQUI ABDUL BAEIS FINANCE ACCOUNTS SHIYAS KAREEM shiyas.kareem@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 to CPI Trade Publishing FZ LLC. Printed by Printwell Printing Press LLC.
STEPHEN WHITE EDITOR, TRUCK&FLEET ME STEPHEN.WHITE@CPITRADEMEDIA.COM 02 APRIL 2021
CPI Trade Media. PO Box 13700, Dubai, UAE. +971 4 375 5470 cpitrademedia.com © Copyright 2021. All rights reserved.
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COVID-19 Vaccine Transport Vehicle. Hyundai HD Series Refrigerated/Eutectic Van.
With flexibility and versatiliy for different usage, the HD light truck series provides various upfit options such as refrigerated and eutectic vans, used for transporting the COVID-19 vaccines. Depending on the type of vaccines delivered, you can choose either refrigerated or eutectic upfit to meet the required storage temperature.
Refrigerated Van
Eutectic Van
http://trucknbus.hyundai.com www.facebook.com/hyundaiCV
Vaccine manufacturer
Storage temperature
Van Type
AstraZeneca (UK) Novavax (USA) Sinovac (China) Gamaleya (Russia)
2℃ ~8℃
Refrigerated
Johnson & Johnson (Belgium-USA) Moderna (USA)
Lowest Temperature Model (LWB) HD45
-25℃
Eutectic
-16℃
-30℃
Box Dimension
Vol.(m³)
3,460L x 1,770 W x 1,800H
11.0
HD65
4,210L x 1,890W x 1,800H
14.3
HD72/HD78
4,730L x 2,040W x 1,800H
17.4
HD45
3,460L x 1,770W x 1,800H
11.0
HD65
4,180L x 1,850W x 1,800H
13.9
HD72/HD78
4,680L x 2,030W x 1,800H
17.1
ONLINE
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FEATURED
CONSULTANT
SHEIKH MOHAMMED DECREES ESTABLISHMENT OF INHERITED PROPERTY DISPUTE TRIBUNAL
Egis completes acquisition of Kuwait’s Projacs International
CONSTRUCTION
Abu Dhabi Airports to pull MTB contractors’ bonds over project
EXPERTS Digital twins show the way towards a net-zero emissions construction sector
CONSTRUCTION
DEWA commissions $153m 400/132kV substation at MBR Solar Park
CONSTRUCTION
Grundfos bounces back after COVID-19 revenue slump
CONSULTANT
EMPC appoints Arab Architects to Reef Mall refurbishment
04 APRIL 2021
READERS’ COMMENTS
ANALYSIS The tech to enhance collaboration and transparency
The question of inheritance all too frequently unravels the bonds of families and can leave many lives in tatters. The importance of this intervention by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and ruler of Dubai therefore cannot be overstated. The establishment of a special tribunal to resolve disputes between heirs in relation to the sale of inherited residential property provides clarity to both home owners and the real estate market in general in the UAE. The move to protect the rights and interests of all concerned parties, especially the elderly, minors, femes sole, divorcees, widows and people of determination closes a loop hole and provides protection to these vulnerable groups. The decision to move the tribunals away from Dubai Court is an interesting initiative and in many ways it is a return to the spirit of personal dispute resolutions that were conducted many years ago in Dubai. My main hope is that this will provide speed and certainty to many and allow them to continue with their lives as soon as possible. Name withheld by request
meconstructionnews.com
NETWORK
UNITED EARNS ITS STARS AND SABIC EXTENSION / DUBAI POLICE TOYOTA SPEED BOOST FEMALE REPRESENTATION TO THE FORE / MAMMOET EXPANDS / H&G FLEET BIKING
NETWORK
United Stars earns two-year SABIC contract extension TRISTAR GROUP JV COMMITS TO EXPANDING FLEET TO MEET 28,000 MT REQUIREMENT IN Q2 FLEET Saudi Basic Industries Corporation (SABIC) has extended Tristar Group’s Saudi joint-venture, United Stars’ contract to to transport liquid industrial gases to SABIC’s diverse portfolio of clients across the GCC. Tristar has enjoyed a longstanding relationship with SABIC over a number of years. In December 2017, United Stars’ country manager Aous Ali signed a three-year contract to transport liquid gases from SABIC’s plants in Jubail in the Eastern Province and Yanbu in the Western Province to SABIC affiliates inside
the Kingdom, Gulf Cooperating Council (GCC) and Jordan. Under the newly agreed deal, United Stars will now continue the role for a further two years. Under the initial contract, Tristar had invested in 30 gas-carrying road tankers and Cryogenic ISO tankers to meet SABIC’s requirements, however, with the extension, an additional 11 tankers will be deployed this month, said the firm in a statement. For the second phase of the contract, the company will commit to providing around 20 tankers for an additional
28,000 MT requirement. The expanded fleet is expected to be deployed in the second quarter. “We pride ourselves on our longstanding relationships and repeat business with our blue-chip clients globally, which have enabled our business to grow steadily, leading to a strong track record of growth with a consistent EBITDA margin between 20.1% to 22.8% in the years 2018 to 2020,” said Eugene Mayne, group CEO, Tristar. “The extension of our contract with SABIC, a leading player in the Middle East, is testament to our expertise in energy logistics, and
plays a key role as we continue to grow our business in Saudi Arabia. We look forward to continuing to demonstrate best practice in safety that ensures a consistent level of safe and high quality service to SABIC and all our customers, and I look forward to reporting on further business developments in due course.” United Stars operates a yard at the Dammam Modon Second Industrial Area, with an area of 40,000 sqm and a 10,000 sqm warehouse for both Dangerous Goods and Non-Dangerous Goods.
THREE OUT OF FOUR FEMALE VEHICLE BUYERS FEEL MISUNDERSTOOD BY THE AUTOMOTIVE INDUSTRY DESPITE INFLUENCING 80% OF PURCHASES
06 APRIL 2021
meconstructionnews.com
NETWORK
GM CHAMPIONING FEMALE EMPOWERMENT
DUBAI POLICE GETS A 250KM/H BOOST FROM ITS NEW TOYOTA SUPERCAR FLEET
Dubai Police has added the 2021 Toyota GR Supra to its high-profile supercar fleet. The car was provided by AlFuttaim Automotive, the exclusive distributor of Toyota in the UAE, and a long-term partner of Dubai Police. The inclusion of the 2021 GR Supra in the awe inspiring fleet, “which is used to promote the Dubai Police both locally and internationally, reinforces its position as one of the most sought after sportscars since its return after a 17-year wait,” said AlFuttaim Automotive in a statement. The full power GR Supra is not readily available in some markets, notably in Europe, where it has been restricted due to the Euro 6 emission rules. Dubai Police drivers, however, will be able to tap into the 3.0L longitudinally-mounted, in-line turbocharged six-cylinder engine power to hit the 100km/h mark in just 4.1 seconds. It’s 8-speed automatic transmission will “easily accelerate” to an electronically limited top speed of 250km/h, said Dubai Police. At a handover held in the presence of senior officials from both organisations including Yousuf Al Raeesi, director, Gov’t Affairs & HSSE at Al-Futtaim Motors, Brig. Dr. Mohamed Al Razooqi, general director – General Department of Transport & Rescue at Dubai Police said the increase of high powered supercars to the department’s fleet is due to the positive feedback from the citizens and media. meconstructionnews.com
OEMS Over 370 women in key roles across GM dealerships in the region, WiDS conference told General Motors Africa and Middle East marked International Women’s Day by championing its ongoing commitment to diversity and inclusion in the region. To mark the global event it hosted The Women in Data Science (WiDS) virtual conference in Dubai on 8 March in collaboration with Stanford University. “Underpinned by the knowledge that diverse perspectives and a dynamic team are at the heart of current and future business success, GM is shining the light on over 370 women, further complimenting GM’s overall female representation in its workforce,” said the manufacturer in a statement.
“At General Motors, we are committed to a diverse and inclusive workforce and globally we aspire to be the most inclusive company in the world,” said Luay Al Shurafa, president and managing director, GM Africa and Middle East. “From putting in place local employee programs and initiatives to building on our global efforts to support our MENA community, all of this is underpinned by our commitment to our people and what we
call the three tenants: Trust, Empathy and Flexibility. Female empowerment is something we always champion at GM and we will continue driving equal opportunities across the board to help better our society and our business.” “Data science is at the heart of our journey to help create a future that is safe, equitable and all-electric,” said Sheri Marshall, head of global analytic capability development at GM International.
NISSAN: 30% OF STAFF ARE FEMALE IN REGION OEMS
Figures released as Nissan launches ‘SheShares’ series on International Women’s Day to Drive Forward Diversity & Inclusion Nissan says it is releasing new data on gender diversity and launching a yearlong webinar series, SheShares to driver forward inclusion in the automotive industry. The details of its new programme, as well as the first webinar, were published to mark last
week’s International Women’s Day. Across the Africa, Middle East and Indian (AMI) region, year-on-year growth between FY19 and FY20 led to a 14.8% increase in representation by women in senior roles, said Nissan. It added that between FY16 and FY20 representation by women within senior roles in AMI increased by 141%: “In the Middle East, the Nissan Middle East office is now leading the way forward in an effort to close the gender gap,
with female representation presently accounting for 30% of all staff.” SheShares is an extension of Nissan’s wider diversity and inclusion (D&I) strategy introduced in 2020: “Designed to engage members of the wider Nissan team in key discussions surrounding the implications of diversity and inclusion, these initiatives reinforce the important space D&I occupies within the company’s Nissan NEXT transformation plan.”
APRIL 2021 07
NETWORK
MAMMOET EXPANDS MEA CRANE FLEET HEAVY LIFT
Mammoet has expanded its crane fleet in the Middle East, Africa and Caspian (MEA) region with the addition of eight new units comprising crawler cranes and rough-terrain and all-terrain models. The world’s largest engineered heavy lifting and transport service provider said the new models in the regional fleet are a 600t crawler crane, two 250t all-terrain cranes as well as one each of 400t and 100t capacity all-terrain cranes, along with three 35t rough-terrain cranes. Mammoet said the expansion
increases its capacity in the region, complementing its diverse fleet of equipment for projects and day rental jobs, adding flexibility and greater availability for work in several high-
demand geographic areas. The cranes will support Mammoet’s range of engineered heavy lifting work – from small construction sites to handling complex lifts in industrial plants. They will be available for customers across all sectors including the power, petrochemical, mining, renewables and civil construction sectors throughout the Middle East, Africa and the Caspian region. Shortly after arrival, cranes have been deployed on construction projects: a short-term substation transformer installation and other infrastructure projects in the UAE.
AL-FUTTAIM TRADING ENTERPRISES OPENS RELCOCATED ABU DHABI FACILITY AFTERSALES Al-Futtaim’s Trading Enterprises says its relocated service operation in Abu Dhabi will offer Chrysler, Dodge and Ram customers a time-efficient and convenient service experience all “the way from the drop-off to the pickup of the vehicle”. Coordinated at the new Mopar aftersales centre in Mussafah features a new interactive service concept including drive-in airconditioned vehicle handover areas with personal customer
reception managed by service advisors: “Offering a unique deskless space, each service area is equipped with a large display monitor and high seating lounge, exclusively designed for a convenient, transparent and barrierfree customer interaction. The service process ensures personalised, time-efficient customer experience, delivered in a completely safe environment, especially that each reception area is cleaned and sanitised after
every customer meeting.” Oscar Rivoli, managing director, Al-Futtaim’s Trading Enterprises, emphasised that the new service centre was designed with the customer in mind, “offering a facility that gives our customers the chance to openly interact with our service advisors, hand over their vehicles conveniently in a climate-controlled environment. The new facility promises customers peace of mind and an ultimate timeliness, reassurance at all times.”
HITCHES & GLITCHES ADDS FIRST ELECTRIC BIKE TO FLEET FLEET
Hitches & Glitches (H&G) has added its first ever electric motorbike to its home maintenance fleet in the UAE. The Farnek subsidiary said the new vevicle will support its environmental goals and help “ascertain how much more costeffective and efficient they are compared to their conventional saloon cars.” Kelvin Vargheese, director, H&G, added: “Electric motorbikes are a costeffective and efficient way of supporting our residential customers. There is no petrol to buy, and with no oil, there are fewer moving parts meaning servicing costs are lower. With top speeds of up to 130 kmh, these motorbikes can cover considerable distances in less time than an average saloon car, especially when navigating their way through congested roads during peak hour traffic. This offers our customers quicker call out times in general, rapid response to emergencies and potentially more call-outs per day, all without increasing air pollution. “Indeed, the reason that we originally wanted to go electric was the fact that we could save approximately 14 metric tonnes of carbon emissions, per e-motorbike over a 12-month, period assuming total travel of around 90,000km. In addition, there is virtually no noise pollution compared with conventional motorbikes.” According to research, the global electric motorcycle will be worth over US$14 billion within the next six years.
INSIDE THIS ISSUE: HOW ALLISON AND VOLTA AIM TO MAKE EVS AFFORDABLE, VOLVO GOES AUTONOMOUS, AND MUCH MORE!
08 APRIL 2021
meconstructionnews.com
NETWORK
RITCHIE BROS FOCUSES ON THE INDIAN BUYER
RTA COMPLETES STATE-OFTHE-ART BUS STATIONS PROJECT TRANSPORT
Dubai’s Roads and Transpot Authority (RTA) has completed the construction of two model bus stations at Oud Mehta and Al Satwa. According to a statement by the RTA, the stations feature unique designs and form a blend of creative and practical solutions to engineering designs, along with introducing a new concept of mass transit. Mattar Mohammed Al Tayer, the Director-General, Chairman of the Board of Executive Directors of the RTA, explained that the new stations boast contemporary designs that cater to the needs of sustainability and people of determination, yet remain consistent with the identity and shape of RTA’s stations. Furthermore, the role of the new stations goes beyond the prevailing concept of commuting passengers, to encompass integrated services for passengers, offering retail outlets, service points, offices, and others, he added. “The construction of stations for public bus riders complements RTA’s efforts to upgrade public transport infrastructure to encourage people to use public transit means in their daily movement,” Al Tayer continued. Spanning an area of 9640 sqm, the Oud Metha Station is located in a densely populated area and close to Oud Metha Metro Station, schools, community clubs and offices. It serves numerous bus routes, including the two routes from Dubai Mall and International City. It comprises of a ground floor and three upper floors, in addition to rooftop car parking, it has parking spaces for buses, private vehicles and taxis. meconstructionnews.com
AUCTIONS Global machinery and heavy equipment auctioneers Ritchie Bros. reported that India is emerging as an important buyer market for used Middle Eastern mobile cranes and heavy lifting equipment ahead of last month’s Dubai auction Ritchie Bros. said in a statement that in 2020, its Middle East operations experienced a gradual increase in demand from Indian buyers at its Online
Timed Auctions, with sales of some mobile crane categories increasing three-fold compared to the same period the previous year. The company added that although crane sales in India are at early stages of growth, it will focus more of its marketing efforts on the Indian buyer market in the future. According to Ritchie Bros. auction results since Covid-19 lockdowns started in March 2020, many civil
and infrastructure construction projects in the Middle East continued unaffected due to long project life cycles and resultingly did not have an immediate impact on the heavy lifting industry. However, as this sector is heavily dependent on the oil & gas and energy segments, a prolonged period of low global oil prices has resulted in decreasing regional demand for new and used mobile cranes.
ELTIZAM GROUP ACQUIRES COMPETITOR FLEET
Eltizam Asset Management Group has acquired Fixis, a Dubai-based facilities management provider in a move it says continues to expand its facilities management portfolio. Established in 2013, Fixis
caters to privately-owned housing properties, offers services such as AC servicing, plumbing, electrical systems, masonry work, painting, thermographic analysis, and pool maintenance services. The new owner added in a
statement that the acquisition is part of Eltizam’s strategy to diverse its facilities business into multiple markets. It expects the Fixis business will aims to generate up to USD 40 million in revenue for the group. “This strategic acquisition will be beneficial for us in the long,” explained Chris Roberts, CEO of Eltizam Asset Management Group. “With Fixis, we will add value to our facilities management growth and open doors for more opportunities in one of four key focus areas: real estate facilities management.” Fixis will join sister entities Tafawuq FM and 800TEK in broadening Eltizam’s high standard integrated facilities management offering in the MENA region. APRIL 2021 09
LAUNCHES
THE NEW RENAULT MASTER VAN COMES TO THE UAE / SPACE AND CAPACITY A PRIORITY FOR THE NEW KIA CARNIVAL MINIVAN
LAUNCHES AED18,000 AVERAGE ANNUAL FUEL COST
New 2021 Renault Master launched in the UAE FLEXIBLE VEHICLE IS DESIGNED TO CATER FOR A DIVERSE SET OF TRANSPORTATION NEEDS AND FEATURES A RANGE OF INTERIOR LAYOUTS Arabian Automobiles says the newly launched 2021 Renault Master van is a fleet vehicle that offers “you all of the style and design of a passenger car with no compromise on utility”. The flexible vehicle is designed to cater for a diverse set of transportation needs and features a range of interior layouts, with loading volumes ranging from 8 to 17 cubic meters, and its cabin is designed for your comfort, with ergonomic controls and steering wheel to adapt to driving positions, adjustable seats, air conditioning, optimised soundproofing, and multiple storage compartments.
10 APRIL 2021
With the growth of ecommerce and digital services in the UAE market, light commercial vehicles, and vans in particular, are becoming increasingly popular. “The UAE’s consistent support for SMEs and small businesses has grown significantly to ensure that these businesses are empowered financially and supported to enhance their local presence,” said Salah Yamout, COO, Arabian Automobiles. “A growing number of these businesses using operational leasing as their main financing method in the UAE, have increased from 9% to 13% which is further solidifying the UAE’s efforts
towards growing the fleet market environment for government and rent-a-car companies.” The new Master is framed by Renault’s signature C-shaped lights with an array of technological features on the inside, including a rear-view camera to enable faster and safer parking. It also couples ABS braking and cruise control with a speed limiter. “The all-new 2021 Renault MASTER is the ideal car to give your fleet the boost it deserves. This MASTERpiece is a model to be reckoned with,” claims Arabian Automobiles. Yamout added: “Reliability and integration across AAC’s
full lineup are key touchpoints that cater to the needs of all consumers, whether regular drivers or fleet owners. The launch of the new 2021 RENAULT MASTER is a consolidation of the customer-centric approach we adopt in all we do and offer, down to our awardwinning after-sales offerings.” The stand-out Renault Master 2021 2.3T Panel Van (L4H3) is listed at AED 91,000 including VAT. One of four available trim levels, it is also available with airbags, an anti theft alarm, EBD (Electronic Brakeforce Distribution), immobiliser, central locking, power steering, seat adjustment - manual,
meconstructionnews.com
LAUNCHES
CARNIVAL SEASON FOR KIA
SPACIOUS INTERIOR AND BEST-IN-CLASS CARGO SPACE DISTINGUISHES THE CARNIVAL AS A MODERN MINIVAN
FEATURE RICH VEHICLE Four trims are available and features include anti-theft systems, EBD braking, power steering, halogen lamps and electric windows.
DIVERSE SET OF ROLES With up to 17 sqm of space, the 2021 Renault Master van is capable of fulfilling a variety of roles for fleets.
steering tilt adjustment, halogen headlamps, front power windows, halogen rear lamps, plus a Bluetooth and MP3 compatible radio player. This van comes with a 2.3-litre 4 Diesel engine that generates 125 horsepower and 310 Nm of torque. With a 100-litre fuel tank and an average of 0-l for every 100 kilometers, filling
the 2.3T Panel Van (L4H3) is likely to set you back AED 180 to fill, taking into account the current fuel price of AED 1.8 per liter for unleaded gasoline 95. With an average commute of 25,000 kilometers per year, you will be doing fill-ups, costing you a total of AED 18,000, claims Arabian Automobiles on its current online listing.
SPECIFICATIONS Engine
2.3l 4cyl diesel
Fuel Tank Capacity
100l
Power
125hp
Torque
310Nm
Wheelbase
4.3m
Trunk Capacity
17,000l
meconstructionnews.com
KIA’s next generation flagship SUV, the Carnival is now available in the region. Kia says the new vehicle is designed to appeal to progressive young families through its leading combination of innovation, space, flexibility, and style. Based on Kia’s new mid-size platform, the Carnival is more refined, roomy, and capable than ever, offering generous space and increased efficiency than its predecessors — and current rivals in the minivan segment. Offering owners three or four-row seating configurations, with room for seven, eight, or 11 occupants in total. “The Carnival is as practical as it is stunning. Offering an abundance of space and cargo, the Carnival comes fitted with a modern suite of hi-tech features that cater to the interests and demands of seasoned drivers and passengers of all ages. The Carnival’s cabin provides an immersive luxury experience that prioritises comfort and convenience first.” said Yaser Shabsogh, COO, Regional HQs, Middle East & Africa. “Our design team has tackled the Carnival through all angles to produce a high-quality product which is unlike any other vehicle in the segment. The anticipation comes to an end as Kia customers from the region can now contact their distributor to learn more about the all-encompassing Carnival.” He added. The Carnival’s state-of-the-art suite of high-tech features is designed to make life and travel as easy and convenient as possible.
A high-tech twin digital display links Kia’s 12.3-inch digital driver instrument cluster and touchscreen infotainment and navigation system, with Kia Live services providing live traffic information, weather forecasts, and more helpful travel features for all passengers. The new Carnival adopts Kia’s latest ‘Smartstream’ powertrain technologies to enhance efficiency and performance. Depending on local specifications, the Carnival is available with a choice of up to three new engines, all offering swift, easily-accessible performance. All engines are paired as standard with eight-speed automatic transmissions, offering smooth and swift progress to match the car’s unruffled dynamic character. It also boasts a range of passive and active safety and driver assistance systems, including Kia’s advanced driver assistance systems (ADAS). The ADAS helps to reduce the inherent hazards and stresses of driving for a relaxing and safe journey. It is also fitted with up to seven airbags and also includes Kia’s innovative Multi-Collision Brake system. SPECIFICATIONS Engine
3.3l
Power
266hp
Torque
6,400rpm
Transmission
6-speed Auto
Length
5.1m
Seating Cap
7-8 seats (11 max)
AED99,000 STARTING PRICE
APRIL 2021 11
FEATURE
FINDING THE MISSING LINK
Alexander Schey on helping Allison Transmission form a vital link in the industry’s journey towards electrification We did all sorts of things that were verging on criminal,” Alexander Schey tells T&FME as he recalls Racing Green Endurance’s (RGE) monumental trek from Alaska to Argentina in a 400hp, 160mph electric sports car he had put together with his fellow Imperial College London students. In some ways, this was the quintessential pet project that got out of hand. Schey entered his mechanical engineering studies with no particular passion for car design but was forming an interest in electrification technology fuelled by the projects he was seeing on campus and in the university’s labs. By the time they set off for South America they had raised a million 12 APRIL 2021
dollars in sponsorship; and 26,000 km later Schey and his peers were well on their way to the cutting edge of the automotive industry. “I was getting the bug from just being around these projects,” he affirms. “But we were disappointed that when you went out into the real world, no-one really cared or was interested in electric vehicles at the time. So, we wanted to do something to change that perception and built that car from scratch.” He pauses to joke: “I think somebody last summer did Argentina to Alaska on electric power, but we were the first. We are still the first to do it from North to South!” In terms of where electric vehicles were at the time, Schey and the rest of the Racing
We are going into a totally new world now and to be able to work on that is very exciting”
Green Endurance (RGE) electric sports car team were – relatively speaking - attempting to use a technology that had barely pushed itself out of the primordial soup. While there may have been Prii (it took Toyota until 2011 to give its hybrid a plural) on the road since the late 1990s, the perception that an electric vehicle was a slow and expensive novelty was proving hard to shake off. In 2010, the world was largely devoid of Teslas and supermarket fast-chargers. Keeping their ‘SRZero’ electric sports car on the road proved to be one of their biggest challenges. “To be frank, there was no charging infrastructure,” Schey says as he recalls his time as RGE’s project manager. “We were jimmying meconstructionnews.com
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any electricity supply we could. Our favourite trick in North America was to rock up at a Holiday Inn, or a motel like that, and while some of us would check in, some of us would go out the back and get into the laundry room – which had the only high-powered socket they had – pull out the dryer from the wall and sneak a cable out to the car through the window.” Schey and team’s extraordinary world record-making journey was followed by a curious media along the route, as well as filmed by legendary Swiss lensman Claudio von Planta who helped diarise the 136-day trek for the BBC. He also compiled the footage for the documentary film Racing Green. As credentials for placing yourself at the forefront of a push towards electrification go taking on the Pan-American highway in an electric sports car wasn’t a bad way to introduce himself to the automotive industry, but Schey says that he wasn’t yet ready to step onto the corporate ladder. RGE was then morphed into Vantage Power, a start-up designed to test and develop emerging electric vehicles technology. At the beginning, the new firm was very much on the outside of the automotive industry. “Maybe we would look back and think we were naive at the time. But we didn’t really want to get a job,” he reflects on the creation of Vantage Power with fellow student Toby Schulz. “We were so excited about the technology, we thought we could do it ourselves in a business.” Between 2011 and 2019, Vantage Power set about developing a series of highly innovative electrification and connectivity technologies, many of which are regarded as world firsts, including in 2017, the first fleet of retrofitted hybrid buses going into service on the streets of London. The growing team also created its own 25t triple-axle hybrid bus. In VPVision, it developed one of the first and best telemetry data collectors in the industry for powertrains and battery data while leaning on AI and cloud technology. When T&FME asks whether there was any doubt in his mind that he had made the right choice to pursue his ambition of making electrification more mainstream in the automotive industry, rather than taking on a role at a large OEM, Schey’s answer is forthright and blunt. “No. I never felt that,” he says, before adding: “It had become apparent that where we thought the industry should be was many years away. Maybe ten years from where it actually was. We were very firmly of the belief that it would happen. meconstructionnews.com
“Quite early on, in that journey, you started seeing the tell-tale signs that we (as an industry) were not going back. Dieselgate in 2015, really had a big impact. Tesla’s meteoric rise over that period really was indicating on a global scale that people wanted the technology. There was never any doubt in our minds that we would end up where the industry is today and where it’s heading.” Unsurprisingly, its pioneering work didn’t go unnoticed among the major OEMs in the automotive industry and in 2019 it was acquired by US powertrain powerhouse Allison Transmission. He says the move was prompted when another company had expressed an interest in investing in
We were so excited about the technology, we thought we could do it ourselves in a business”
PROVIDING A VITAL LINK Allison Transmission has been involved in the auto industry for over 100 years and has been headquartered in Indiana since 1915.
the firm and soon there were almost halfa-dozen other suitors for the company. “This was something that was always on our radar but a long way out. We ended up with a shortlist of five we were going down the process with, but Allison accelerated faster through that than others.” Schey now combines his role as Allison’s chief commercial officer as well as directing Vantage Power’s development. “Most of Vantage Power got rolled up into the engineering organisation and is working on a number of innovative technologies in battery packs, telemetry control systems, integration and that’s feeding most of our R&D activity,” he explains. “I trained as an engineer, but can no longer call myself one as I’ve been doing the commercial side for too long! I was brought into the sales and marketing organisation to head up all of our electrification efforts globally with all our customers. I work primarily with our global team and the team over in Indianapolis and in the US to essentially commercialise not just what’s going on in Vantage Power but also the other investments Allison has made concurrently, particularly around our propulsion solutions.” Much of his role now involves coordinating Allison’s development and production with its long list of global OEM partners. The move from small to large organisation – and from disrupter to industry insider – was understandably a challenge he has had to embrace. “It was a huge adjustment, not least because I had never had a boss before!” He says. “When you join a large organisation your role actually shrinks because there are specialists in areas you may have been juggling before. Equally, your decisions are much larger in magnitude and you need to involve many more people in the process. Learning that was a steep curve.” He says that the move has also help him appreciate the strength of linking with a company with over 100 years of knowledge to fall back on. “The thing that struck me coming from a start-up background when I first walked around Allison was the institutional knowledge of knowing how to make a product survive; how you service it; how it comes apart in the field…With the greatest of respect to many of the early stage companies, and I was one of them: no matter how much money you have, it takes a lot of time and experience to build up that capability.” Schey and Vantage Power were welcomed into the Allison Transmission fold APRIL 2021 13
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at the same time as another acquired firm AxleTech, a company which was designing, manufacturing and selling axles, but had also made its own progress with a proof of concept integrated electrified axle for on- and off-highway heavy-duty commercial vehicles. The combination of the two has eased in the introduction of a new series of fully integrated electric axles from Allison Transmission called eGen Power. Building on AxleTech’s work, the series is designed to fit between the wheels of heavy-duty trucks and buses, replacing the vehicle’s traditional powertrain system. “We thought their e-axle was the best in the market,” recalls Schey, adding that Allison
is now applying all of its own engineering processes, reliability, durability: “(Bringing...) all of that manufacturing capability to the products and bring it forward as a much more mature solution. Building it out from one product into a family of products.” The eGen Power is a bolt-in solution compatible with current vehicle frame, suspension, wheel ends and well suited to most OEM vehicle assembly processes. The series features fully integrated electric motors, a multi-speed gearbox, oil cooler and pump, providing the industry’s highest performance and efficiency. The system is compatible with full battery electric vehicles (BEV), fuel cell electric vehicles (FCEV), as well as range
The batteries that exist today, are capable of powering any vehicle that we throw them at”
extending hybrid applications. The company believes it can have the biggest impact with heavy-duty vocational and severe duty lines (“where Allison has been traditionally strong”) and Schey is playing a central role in OEM engagement as the products are trialled on their own vehicle platforms. “I think Allison has a tremendous advantage particularly compared to many of the newer organisations that have sprung up. We work with 350 oems around the world, so you’re getting those meetings and having those conversations is kind of second nature. “We’ve been able to really rapidly understand what the customers are doing; learn about their programmes
FROM DISRUPTER TO INSIDER Allison Transmission acquired Alexander Schey’s firm Vantage Power in 2019. He is now helping to drive the company’s efforts in the electrification of the auto industry.
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and in several cases are ready to supply them with prototype axles.” He adds, that while Allison is currently targeting heavy-duty lines it also recognises that the fastest moving segment is the medium duty market: “We have a roadmap and plan for those applications too”. Many OEMs in the commercial vehicles sector are following their car counterparts in committing to electrifying their vehicle line-ups, and Schey says the pace of the rollouts will – not for the first time – be dictated by government regulation and pressure. “I think the industry wants a certainty around what’s going to happen,” he comments. “That’s probably true for any industry, right? So, the more we see and hear that OEMs are committing to electrification; that government’s are committing to electrification; that legislation is coming in place to accelerate that: the more certain it becomes that solutions are needed in these spaces. And that gives a degree of comfort to all of those that are putting on some pretty big bets on this technology.” T&FME asks on what timescale fleets may see a point where the TCO (total cost of ownership) of running an electric truck may match (or at least be close to) to the cost of owning a traditional vehicle. “I’m going to give you an answer which is not probably going to satisfy you,” he replies. “It is highly dependent on the vehicle and the type of application. To give you an example, if we take a medium duty pickup and delivery
A ONCE IN A CENTURY EVENT Schey believes rapid changes in transportation which are currently underway are leading to a once-in-a-century change.
van, that’s operating a hundred miles a day or less; delivering, lightweight Amazon packages, that is going to reach some level of price parity sooner than let’s say a fire truck that needs to have extremely high acceleration and operates in all conditions down to -40o C.” Another common perception for heavy duty electric vehicles is that the battery technology is simply not ready to make them practical or economically viable. It is the latter of the two that Schey feels is the most important. “The batteries that exist today, are capable of powering any vehicle that we throw them at,” he says. “The stumbling block is around cost,” he says before suggesting
There was never any doubt that we would end up where the industry is today and where it’s heading”
that the industry is building up capacity to meet the requirement down the line. “Electric vehicles will become cheaper because the batteries become cheaper (it is the largest single costliest component). (When that happens) then it means we will sell more electrified propulsion systems. Really, don’t we all want that?” He continues: “Previously people developed new products on long development cycles and the industry wasn’t really changing. There were more relatively minor updates to existing products. “Now we have the perfect storm of totally new products that need to be developed and the requirement to move quickly. I think that the ones that will succeed will be the ones that are able to move quickly but still leverage all those decades of experience in process that have been built up. With our conversation drawing to a close, Schey reflects on his career to date and his part in helping to change the way we view transport. “I would emphasise that this is not even a once-in-a-generation type event, this is a once in a century type of event. Fundamentally, the whole backbone of the way in which we transport ourselves and our goods change. It happened a hundred years ago with internal combustion engine and the fundamental technology and science behind that has remained the same. We are going into a totally new world now and to be able to work on that is very exciting.”
ALLISON AND HYUNDAI PASS AUTOMATIC LANDMARK Allison Transmission Korea has revealed that 1,000 of Hyundai Motor Company’s Mighty trucks equipped with the Allison 1000 xFE fully automatic transmission have been sold since its launch in June 2020. The Hyundai Mighty is a 2.5and 3.5-ton light-duty truck, which has unrivaled market share in South Korea. Hyundai Mighty trucks with Allison fully automatic transmissions provide better driving convenience, fuel economy, reliability and productivity than the manual transmission equipped Mighty trucks. To celebrate the successful launch, Allison Transmission held an event
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with the owner of the 1,000th Hyundai Mighty equipped with the 1000 xFE™ fully automatic transmission. Gyung-Jae Joo, who lives in Hwaseong, Gyeonggi Province, was the 1000th customer to purchase a Hyundai Mighty with an Allison fully automatic transmission. He received his Mighty truck in December 2020 from Gold Van, a company specialising in shipping fresh food and food materials to Seoul and Gyeonggi Province. “I’ve recently changed my job to a pick-up and delivery business. A friend of mine in the distribution industry recommended Allison Transmission, so I chose
a Mighty truck equipped with the fully automatic transmission,” said Gyung-Jae Joo “I usually drive for more than 12 hours a day from 6 a.m. to 5 p.m., and I am very satisfied with Allison Automatics because I do not need to manually shift the gears. Also, I believe that it provides excellent safety because I only have to pay attention to the traffic flow ahead. I didn’t feel much pressure by the price of the fully automatic transmission options in Mighty because they were around KRW 3 million. I’m very satisfied with the fuel efficiency and the low cost of maintenance of this vehicle as only Allison approved fluid needs
to be replaced periodically.” “Hyundai Mighty trucks equipped with Allison fully automatic transmissions have been on a steep sales growth since its mass production in June 2020. This is the result of a fully automatic transmission entering the light-duty truck segment and thereby satisfying the needs of customers who wanted an automatic light duty truck,” said Kyoungmee Lee, regionald irector of Allison Transmission Korea. “Together with Allison Automatics, Hyundai brings to the South Korean market trucks that are backed by more than 100 year old company steeped in reliability and durability.”
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STAYING ON TRACK
T&FME takes a ‘fleet peak’ at the region’s largest sustainable mega-development, The Red Sea Project
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s a statement of a possible greener future for Saudi Arabia, it doesn’t get much better than the Red Sea Project, the world’s most ambitious regenerative tourism project. At 50 hotels (offering up to 8,000 hotel rooms) and around 1,300 residential properties across 22 islands and six inland sites, the west coast resort is an impressive development on any scale. The fact that all those structures have to adhere to the strictest environmental standards make it an even greater undertaking. Late last year, developer TRSDC (The Red Sea Development Company) announced that it was creating the world’s largest battery storage facility to enable the entire site to be powered by renewable energy 24 hours a day, including the island sites. It was an initiative 16 APRIL 2021
among other sustainability and environmental regeneration schemes in and around the flagship project that led it to be named The Developer of The Year by T&FME’s sister publication Big Project Middle East. “We are happy to see a greater focus being placed on rewarding sustainable and responsible development, which is a growing trend around the world, particularly in the wake of the Covid-19 pandemic,” said John Pagano, CEO of TRSDC. “We firmly believe that development does not need to be at the expense of nature and the natural habitat.” As with any development of this scale, TRSDC has been in overdrive to recruit the very best in construction consultants and contractors to help fulfil its ambitions but it also wants to reach out to the fleet and true industry too. Mott MacDonald is providing
Using IoT technologies will keep the workforce safer and support secure and more efficient operations”
consultancy services to help build a world-class vehicle fleet of e-bikes, golf buggies, cars, vans, trucks, buses, seaplanes, helicopters, VTOL, passenger ferries, boats, maintenance vehicles, airside vehicles and even off-road leisure pursuit vehicles The global engineering firm has also been tasked with delivering a comprehensive and robust analysis of the total land, sea and air transport needs for the development and operation of the 28,000km² site, from its opening in 2022 to its completion in 2030. Central to this task, will be a proposal of the best fleet propulsion systems from a range of available sustainable options. Given the Red Sea Project’s profile, it could set the tone for green transport investment in Saudi for a generation. At the Big Projects Awards, TRSDC was also awarded the Excellence in Health and Employee Safety award for its Covid-19 meconstructionnews.com
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Health and Safety Plan. This year it is taking its safety programme even further with the recruitment of IoT specialist MachinesTalk which will deploy its ‘Workforce and Vehicles’ Smart Locator technology on 3,000 trucks. Smart Locator badges designed by the Saudi tech firm will eventually be worn by up to 36,000 construction workers, and more than 3,000 vehicles will be tagged “to ensure safety and security”. The smart badges and tags will aid help identify workers and vehicles within the mega-development while securing the construction area against unauthorised individual and vehicle access. Individual access rights will be granted based on “role, responsibility, category and group of workers. In addition, the possibility of identifying vehicles remotely, geo-fencing perimeters and setting up alerts based on worker and vehicle access breaches will further enhance security.” Workers in distress will also be able to use a panic button to send an SOS signal back to TRSDC’s security and emergency response centre. Once implemented, it will be one of the largest smart wearable technology and wireless tagging programmes in the region. CEO John Pagano said delivering a project of this scale against an ambitious timeline while aiming to meet and exceed the highest international standards for health, safety and sustainability, required “innovative solutions.” He added: “Our partnership with MachinesTalk will play an important role in ensuring the welfare of our workers, given their proven track record providing smart construction technology and alignment with our business goals.” Nawaaf Alshalani, CEO of MachinesTalk said he believes the tagging shows “real forward thinking” and care for employees, “when a company wants to implement these solutions at such scale. Using IoT technologies will keep the workforce safer and support secure and more efficient operations.” The new technology aims to address four key considerations for TRSDC’s core construction site area of 3,500km2: site security, worker safety, access control, and process efficiency. Ian Williamson, TRSDC’s chief projects delivery officer, further explained: “We asked ourselves how we could enhance security on our site and enable an efficient construction process at the same time, while considering upwards of 36,000 workers across 3,500 km2.How could we ensure worker safety in case of health emergencies or prevent workers getting lost in remote locations in the desert or meconstructionnews.com
on islands? How could we control access and track the 3,000 vehicles of multiple contractors across the construction site, delivering materials, tools and transporting employees?” The challenge for a project with green ambitions like this is also how to deal with the waste it generates. Last month, TRSDC opened an integrated waste management facility that was developed, and will be managed, by waste and recycling specialist Averda. The facility is designed to tackle all forms of waste generated during the construction of Phase One of the giga-project and will enable the TRSDC to meet its goal of zero waste to landfill. Tonnes of rubble, rock and concrete generated by the construction of the foundations, buildings and infrastructure are sorted and treated by special machinery which converts them into smaller particles.
We firmly believe that development does not need to be at the expense of nature and the natural habitat”
These are then reused for other purposes, such as aggregate for building roads. Speaking at the inauguration ceremony Malek Sukkar, CEO of Averda explained: “We talk of waste management but here nothing is being wasted.” The workforce employed to construct the first phase of the project make up the population of a small town and create all the same varieties of household waste. Dedicated recycling bins segregate waste, with recyclable glass, plastics, cans, paper and card being collected separately. These materials are then checked again before being baled and transferred to Saudi recyclers to be made into new products. Food and organic waste will be turned into compost, providing nutrient-rich material for the dedicated million-square meter landscape nursery built for the project, completed last year. The facility will eventually provide over 15 million plants required to landscape the destination. Only a tiny proportion of non-recyclable, non-compostable materials remain after these processes. To avoid landfill, this residual waste is incinerated in special, environmentallysensitive facilities, and the particles and carbon generated is captured. The resulting ash is used for the manufacture of bricks. Ian Williamson explained that the facility allows TRSDC to facilitate waste segregation at every one of the construction sites across the development, followed by the collection and then repurposing and recycling of the waste by Averda’s team: “This waste management asset creates a new benchmark for large-scale development projects in the Gulf region and globally.”
A MEGA-PROJECT WITH MEGA AMBITIONS Phase One of the Red Sea Project comprises 16 luxury hotels across five islands and two inland resorts, providing more than 3,000 hotel rooms. It will also include a new international airport, a yacht marina, leisure and lifestyle facilities, as well as supporting logistics and utilities infrastructure, including more than 80km of new roads.
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VOLTA BEGINS TO SPARK
T&FME deep dives into the development of an electric truck pioneer
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t’s been more than 12 months since countries around the globe realised that they had to place populations in lockdown to keep them safe from the COVID-19 outbreak. While the measures have saved lives, they have also caused huge economic disruption and distress. In the face of the overwhelming doom and gloom, a rare ray of light has been the evidence of double digit falls in emissions in most of the world’s major cities. It is too early to really tell what difference this may have made apart from many of us getting used to a quieter way of life for a few months, but it is likely to not be enough to curtail the long-term health effects of living in an urban sprawl. Considering that the International Council on Clean Transportation (ICCT) estimates that on-road diesel 18 APRIL 2021
vehicles are responsible for nearly half of the health impacts of air pollution from vehicles worldwide (and two-thirds of impacts in India, France, Germany, and Italy), you can expect to see air quality return as a political hot potato as our roads return to normality. The transportation industry is likely to be presented with a choice of being green or being excluded over the next decade if it wants to continue to deliver into city and town centres. Fortunately, on the horizon are a phalanx of electric vehicles that are capable of slotting into the infrastructure built for the medium and heavy duty trucks that logistics and delivery businesses rely on. The most obvious example would be the Tesla Semi but other major OEMs are following suit. Volvo, for example, re-stated at the end of 2020 that it was committed to adding a
I want to see a company with a positive impact on the world that grows and thrives”
complete model range in 2021. Likewise, Mercedes’ eActros, which first debuted in 2016, will go into production this year. T&FME has been told on many occasions that truck fleet buyers are interested in going electric but few, if any, see a pathway for making it affordable. Simply put, the TCO may be getting ever closer between traditional and electric but the upfront costs are daunting. Furthermore, fleets are built around the re-sale of their vehicles and early adopters are unlikely to see a substantial return on their risky investment. What if another financial model was available that mitigate a lot of that risk but allowed you to get onto the electric fleet powertrain? Meet Carl-Magnus Norden, co-Founder of Volta Trucks. Two years ago, Norden and his partner Kjell Walöen created meconstructionnews.com
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the start-up to develop both an electric truck but also a new way of making it readily available to commercial vehicle fleet operators. This ‘Truck-as-a-Service’ (TaaS) rental model, as the name suggests, means Volta takes on supplying the truck as well as array of other services such as infrastructure installation, electricity supply, insurance, tax, tyres for the vehicle and personnel training. Fleets are guaranteed 97 percent uptime in return for taking on full financing with monthly billing options. Norden recently told one interviewer that the idea for Volta came after watching the Tesla 3 annoucement half a decade ago. Since the creation of the company (across Sweden, France and the UK) in 2019, a series of funding rounds have been passed and the Volta Zero truck, its first purpose-built full-electric large commercial vehicle, made its prototype debut in September last year. Customer trials will start later in 2021, with tens of thousands of trucks expected on the roads soon after series production starts around 12 months later. Norden clearly believes that speed is of the essence for Volta and says that from the beginning he realised that it had to be as fast as possible to market and start reducing CO2 emissions and global warming “quickly”. “When I learnt more, I understood the damage in cities with NOX, particulates, and noise pollution. Personally, I think we have to act very fast to stop global warming and CO2 emissions. Instead of talking, at Volta Trucks, we want to do something very tangible. Trucks are big polluters so, by working in that (HGV) sector, we can make a significant impact,” he says. “Professionally, in big technology shifts like electrification, there is an incredible opportunity that a small venture from outside the industry can contribute to change. You can see what Tesla did for cars. Volta Trucks can do the same for commercial vehicles. “I also want to see a company with a positive impact on the world that grows and thrives. Taking an idea from concept, to initial drawings, first product and then to market, is fantastically stimulating and rewarding. The same goes for building a dedicated team who satisfy customers and other stakeholders. Also making cities more liveable, and having a positive impact on the world, and the people living in it. The combination of doing good, and building a profitable company, is the perfect combination that should be every entrepreneur’s dream.” “Then, I realised the unacceptable statistics of accidents between trucks, bikes, meconstructionnews.com
and pedestrians. Also, the accident risks for truck drivers, which is an important reason for the severe driver shortage the industry currently faces. We are a very driver-centric company. We want to give drivers a good working environment that is as safe, modern, and pleasant as possible, and more akin to a premium car than a tired old truck. With an electric powertrain, we can reduce noise and vibration, which reduces stress and tiredness. This, in turn, reduces the risk of accidents, which is good for the driver, the people around the vehicle, and the fleet operator. Having Volta Zero vehicles on their fleets should support our fleet operators with recruiting and retaining the best drivers and give them a competitive advantage over fleets using existing legacy vehicles...And finally, I understood the fleet operators’ hesitation
Taking an idea from concept, to initial drawings, first product and then to market, is fantastically rewarding”
to start using trucks based on electrification technology they are not familiar with. With Volta Trucks, we needed to create a level of service that supported them and mitigated all their perceived risks and problems.” Norden says that beyond the truck itself, Volta is looking at emissions in the whole supply chain. “This is something we have started by using natural fibre composite materials, but we have to do much more by working with our suppliers. Most suppliers want to reduce the carbon footprint in their processes, and we have to work together, in partnership, to find further reductions. “Another aspect is how we design, build, and maintain our trucks. By designing and manufacturing for maximum lifetime, and the minimum servicing and maintenance,
TRYING TO MEET FLEET DEMANDS Volta CEO Carl-Magnus Norden says Volta Trucks is attempting to create a level of service that supports fleets and mitigated all their perceived risks and problems of EV adoption, including costs.
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we contribute to sustainability. The same goes for how we think about product at the ‘end of life’. Can we re-use parts? Is there the opportunity for a second life for our materials? Our long-term goal is to monitor the full supply chain, monitor active duty-time, and the impact of the truck at its ‘end of life’, so we can tell our fleet operator customers or their end-customers, that 1 kg transported 1 km on a Volta Zero, has limited total environmental impact. We want to give our customers the tools to measure their own sustainability, and help them improve their ability to measure outcomes, according to the principle: ‘what you cannot measure, you cannot control.” Designing the Volta Zero
The firm claims that the Volta Zero is the world’s first purpose-built full-electric 16-tonne vehicle designed for inner-city freight deliveries, reducing the environmental impact of freight deliveries in city centres. Designed from the ground up with an operating pure-electric range of 150 - 200 kms (95 – 125 miles), the Volta Zero is expected to have replaced an estimated 180,000 tonnes of CO2 by 2025. The truck also uses the removal of the internal combustion engine to sit the driver in a central driving position, with a much lower seat height than a conventional truck, says Volta. “Removing the internal combustion engine from the cabin and placing the electric drivetrain in the ladder chassis beneath the body gave us almost complete freedom for the cabin design and architecture,” explains
BUILT FOR URBAN DELIVERIES The firm claims that the Volta Zero is the world’s first purpose-built full-electric 16t vehicle designed for inner-city freight deliveries.
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COMPLETE FREEDOM Removing the engine from the cabin and placing the electric drivetrain in the ladder chassis beneath the body gave Volta almost complete freedom for the cabin design, says lead designer Carsten Astheimer.
We want to give our customers the tools to measure their own sustainability”
the Volta Zero’s lead designer Carsten Astheimer. “In a traditionally designed truck, to minimise the cabin length, the driver is positioned above the engine placing them extremely high above the road. This creates safety issues with blind spots, and also makes the entry and exit hazardous, especially in urban delivery where a driver can make up to 60 deliveries or more in a day. We were able to completely change the cabin layout, creating a new type of vehicle – one which you could say is almost a hybrid between a bus, that is naturally designed to be driven safely in inner city environments, and a truck. With the Volta Zero, we have the driver visibility and
safety from the front end of a bus, but with the rear load carrying capabilities of a truck.” “As with all of our projects, the starting point is the user. In this case, it was the driver, optimising their position. So, we designed the truck from the inside out, firstly positioning the driver exactly where we wanted them to be, then building the cabin architecture around them. Finally, we designed the exterior, with a form language expressing the values of the brand.” Ben Anstey, chief engineer, electrical and control systems for Volta Trucks, says that the driver and customer experience was always at the forefront of development: “Commercial vehicles perform a very specific task, and the cabin represents the workplace of the driver. As a workplace, it is imperative to consider all aspects of the functional design and human factors that lead to a safe, healthy, and efficient working environment,” says Anstey. “Due to the ground up approach we’ve taken thanks to departing from the traditional legacy cab-overengine architecture, every decision can be made with the driver and functional usage in mind. Everything from the ingress and egress to the multiple touch points and seamless technology integration can be considered from first principles to determine the optimal solution to maximise the functional performance. “Passenger vehicles tend to target a wide demographic of users, each with their own personal needs and expectations. This results in an amalgamation of complex features with an overly simplified front end and complex menu structures to configure all of the various options. Within the existing commercial vehicle space, there is a high level of after-market offers where products are isolated, stand-alone, and not integrated. Starting from a blank sheet of paper presents a great opportunity to create a seamless integration of the technology, taking advantage of dedicated screens and clear, intuitive interfaces to allow the driver to focus on their primary activity, whilst still having all of the functionality available without extensive and intrusive system interference.” Anstey stresses that the design won’t be completely alien to drivers. “The customer has become very familiar with the existing legacy vehicle cabin design over many years. We need to balance innovation with the usual utilitarian function to create a new paradigm in the sector. Where to innovate is a fine balance to be managed. We also have to consider that the fleet manager is often not the driver, for whom the cabin represents their workplace environment. We meconstructionnews.com
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believe that creating a premium environment and experience for the driver will also help support the operator of a fleet of Volta Zeros with the recruitment and retention of their drivers, giving them a competitive advantage in the marketplace. In addition, the opportunity to bring a number of proven human-centric and best practice approaches from other parts of the automotive industry enables a high level of innovation which can grow over time as customers become more familiar with enriched functionality and less traditional interfaces within the commercial vehicle sector.” Changing retail
The coronavirus pandemic has accelerated the demise of many great high-street brands, says Carl-Magnus Norden – but the “exponential rise” of online shopping should be embraced by fleets. “I don’t see any short-term reversal of this. This trend away from high street shopping, further enhanced by the reduction in commuter’s spending in city centre workplaces, will accelerate a complete reappraisal of cities. Retail needs to transition from being a function to an experience, and draw buyers back in to attractive destinations,” he remarks. “This could be accelerated with the growth of localism, with local communities supporting local businesses. Another possible outcome could be a mass redevelopment of retail and office space into residential space, to deal with the chronic shortage of low-cost housing.” He argues that these factors could change the face of the Smart City of the future completely, making them far more focussed around human needs than commercial or corporate needs. “That said, as the producer of a full-electric large commercial vehicle that’s specifically designed for inner city distribution, this transition could have a positive effect on our business model, with many more residents to serve with their online deliveries,” he adds. “More and more consumers care about sustainability. Cities and governments are following in the same direction. B2C companies, consumers goods producers, retailers, fleet operators and their employees are all listening. The problem is that there are currently not enough viable electric trucks for them to buy. We hope that the rest of the industry will increase their pace of change so together, we can give our beautiful planet a chance to survive.” He continues: “TaaS is perfectly suited for sustainability. The classic model for a vehicle meconstructionnews.com
Retail needs to transition from being a function to an experience”
manufacturer is to produce products needing a lot of servicing and maintenance, and also many spare parts. A very big part of their profit comes from servicing, maintenance and spare parts (as anybody who takes their private car for a service will know). So, the less servicing and spare parts required in an electric vehicle is good for our customers’ bottom line. As the customers of our trucks will primarily transport quite heavy goods, like frozen food, white goods, furniture, etc, weight carrying capacity is important. A normal 3.5t electric truck can seldom carry more than 1,000 kg of payload. One of our trucks can carry 6t of payload. So, we can replace five to six smaller 3.5t ton trucks with
one Volta Zero, which will reduce congestion considerably. Also, for fleet operators, it is a big win, as they can reduce their number of vehicles, and number of drivers, that will also have a positive effect on their profitability. Our ambition is to produce the safest and most environmentally friendly truck driving in the world’s cities. But, long-term, TaaS, will be our biggest differentiator. Knowing that the team has approached each decision with a driver centric mindset, it will make me very proud to know that beyond transitioning to a sustainable logistics solution, that we have improved the driver environment to satisfy the next generation of logistics operators.”
FROM DRAWING BOARD TO ON-BOARD Ian Collins, engineering director, Volta Trucks, explains the opportunities and challenges of developing a purpose-built full electric large commercial vehicle. “Once designers have designed a vehicle, can you outline the process that engineers go through to take the design from drawings through to a real vehicle. Designers and engineers work in collaboration throughout the vehicle development process. In the earliest stages, designers take the lead with the product concept, with the engineers supporting with input on regulatory compliance, position and size of the main components, material and manufacturing options etc. As the design matures, the engineering team develops the technical concept from a highlevel specification of the targets such as vehicle performance, features and attributes, through to the specification and design of all the components, to a fully detailed digital model of the vehicle.
This digital model can be used to analyse the expected performance of the vehicle, simulate the assembly process to guide the manufacturing plant design, and to confirm that the appearance and functional design intent of the vehicle has been met before we proceed to building prototypes. “As prototype parts are manufactured, we test each part and system to make sure it meets the targets specified. By the time we have built a full vehicle, we know that each component works correctly and can concentrate on the optimisation of vehicle attributes such as durability, comfort, driving performance and safety. In this test phase, the prototype vehicle is subjected to a wide range of different operating conditions. For example, we expose it to very low and very high temperatures, poor quality roads and unusual loading conditions.
We do this so that we can make any required adjustments to the design and engineering to ensure that the final product will exceed our customer’s expectations.” “In the final phase, the design and engineering data is approved and released to suppliers for final component manufacturing tooling and equipment to be made. Again, we build up the final vehicle part by part, testing and qualifying each part individually before we build a final fleet of vehicles to prove the performance, quality, and consistency of the final product. A key part of this stage is certification, when the approval authorities require test and measurement data to confirm that each regulation has been met so that we can begin series production and deliveries to our customers.“
APRIL 2021 21
FEATURE
STARTING SIMPLE Volvo experts explore why
autonomous transport will happen in quarries and light mining first
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reating solutions capable of maximising transport efficiency through advanced automation is the goal of an entire industry. For Volvo Autonomous Solutions, it’s likely to happen first in the controlled world of quarrying and mining. After developing steadily, step-bycareful-step, for more than 100 years, the automotive world is currently in the grip of a two-sided revolution: on the one side under pressure to reduce emissions by going electric, and on the other, striving to reach the Holy Grail of transport – the vehicle/ machine that doesn’t need an operator. While great strides have been taken in the switch to hybrid and all-electric drive, creating autonomous transport is proving harder to perfect. 22 APRIL 2021
“Automation has struggled in the mainstream automotive world because they are trying to get autonomous vehicles to work everywhere and safely coexist with all the variables of life – cars, trucks, bikes, people, dogs, cats – you name it,” says Perjohan Rosdahl, head of Off-Road at Volvo Autonomous Solutions. “Solving all these issues at the same time is proving to be an enormously complex challenge, even for the world’s biggest automotive and technology companies. Our approach is to start small, in a tightly confined environment and build on our successes over time. A perfect place to start is quarries, which have clearly defined load-and-dump locations over generally short circuits.” The move to autonomous machines will not be simply a case of replacing a machine with an operator to one without.
Automation has struggled in the mainstream because they are trying to get autonomous vehicles to work everywhere”
Autonomous machines will prompt the automation of the whole process and require a new way of looking at the entire operation. Volvo Autonomous Solutions was created on 1 January, 2020 to develop and commercialize autonomous transport solutions for the whole Volvo Group. As well as providing adapted machines from within the Volvo Group, Volvo Autonomous Solutions will support customers with solutions to autonomous machines’ other challenges, namely the supporting infrastructure, control towers, repair and maintenance, virtual drivers and even run the operations if needed. “It’s as much about a new mindset as it is about developing autonomous machines,” says Uwe Müller, sales and marketing lead for Off Road Solutions at Volvo Autonomous Solutions. “We are talking about automating a transport process, not just selling a single meconstructionnews.com
FEATURE
machine. Because of that we need to develop a total solution to manage this full process.” Volvo Autonomous Solutions is working closely with the Volvo Group’s other business areas, especially Volvo Construction Equipment in the off-road segment. This ensures that new machines, whether developed specifically to be autonomous – like Volvo’s award-winning TA-15 hauler – or traditional operator-based equipment, use the same autonomous drive platforms, coding languages etc. This allows them to be ‘talked to’ in the same way, as well as offering the ability to scale up easily. Not all machines will be autonomous but being ‘autonomous enabled’ allows Volvo Autonomous Solutions to supercharge the standard products into operator-less machines, using its own proprietary autonomous drive kit. “To reduce the complexity of the world we need to standardize the process as much as possible,” says Müller. “In quarries we can do this as they are in a confined area, are highly regulated and it’s easier to separate autonomous transport from other processes. Involving loading and dumping, the process itself is simple and repetitive.” “We are starting small with less complex use cases and will build on our successes,” says Rosdahl. “With the right customer partners, the next step could be underground mining and tunnel applications – autonomous machines (especially electric ones) work just as well in the dark as in the light, and it’s good to remove people as much as possible from these hazardous locations. From there we could focus on large earthmoving projects that are still contained but have more variables to cope with, as our technology becomes more embedded over time.” Improved process optimisation, lower energy consumption and improved safety are just three of the benefits of autonomous machines. There are lots of R&D challenges to be overcome – and they will be. But it won’t be a technical innovation that makes the breakthrough – that requires changes in legislation and a new mindset as to how the whole process can operate more effectively. Make no mistake, autonomous solutions are coming, and they will be disruptive to current business models. To that end, Volvo Autonomous Solutions has formed a partnership with Foretellix to jointly create a Coverage Driven Verification solution for autonomous driving solutions operating on both public roads and in confined areas. The solution will enable meconstructionnews.com
COMBINING WITH FORETELLIX Ziv Binyamini, CEO, Foretellix, said its partnership with Volvo “sets a new standard in the verification of automated driving systems, boosting both safety and productivity.”
massive scale testing of millions of different scenarios, which will validate autonomous vehicles and machines dealing with situations they might encounter within their specified Operational Design Domain (ODD). The partnership will focus on providing high levels of safety and productivity of Volvo Autonomous Solution vehicles and machines. The ability of the solution to orchestrate large scale simulation and conduct the big data analysis required will lead to a substantial reduction in costs and time to market, ensuring faster operational readiness and the ability to safely scale up the system across multiple sites and ODDs. Foretellix is considered a pioneer in
To reduce the complexity of the world we need to standardise the process as much as possible”
the commercialisation of coverage-driven methodologies for automated driving systems verification. Foretellix developed a novel verification platform that uses intelligent automation and big data analytics tools that coordinate and monitor millions of driving scenarios, to expose bugs and edge cases, including the most extreme cases. Volvo Autonomous Solutions will jointly adapt Foretellix’s verification system for both highways and confined area applications, such as mines and quarries. Volvo Autonomous Solutions and Foretellix will use the Open Measurable Scenario Description Language (M-SDL) created by Foretellix. M-SDL simplifies the capture, reuse and sharing of scenarios, and can specify any mix of scenarios and operating conditions, to identify previously unknown hazards. “Volvo Autonomous Solutions believes in a collaborative verification concept, one that uses open standards,” says Magnus Liljeqvist, Global Technology Manager Volvo Autonomous Solutions. “The partnership with Foretellix gives us access to the state-of-the-art verification tools and accelerating our time to market. “We are very proud to partner with Volvo Group. This partnership is a significant milestone for the industry as it is the first time that large scale Coverage Driven Verification will be used for verification of ADS in confined areas. Our partnership will combine the expertise of the two companies and set a new standard in the verification of automated driving systems, boosting both safety and productivity,” says Ziv Binyamini, CEO and co-founder of Foretellix.. In 2020 both companies conducted a successful pre-study that evaluated the Foretellix portfolio and its potential value in confined areas. APRIL 2021 23
WORKSHOP
AL MASAOOD INTRODUCES NEW PRECISION TRAINING / TENDERD AND EMA COMBINE / PIRELLI GETS F1 TYRE EXTENSION / NEW BKT EARTHMAX LAUNCH
WORKSHOP
Al Masaood upskilling diagnostic team SERVICE GENERAL MANAGER SAYS SERVICE WILL ENABLE TECHNICIANS TO PERFORM AT HIGHER LEVELS OF PRECISION TRAINING
The authorised distributor of Nissan, INFINITI and Renault in Abu Dhabi, Al Ain and the Western region, Al Masaood says it is making upskilling a top priority with its development of a vehicle diagnostic training programme for its staff members in collaboration with Hella Gutmann, an industryleading provider of diagnostic devices and parts manufacturer. Al Masaood Automobiles’ technicians and in-house technical trainers recently underwent and completed the vocational training
program at Hella Gutmann Academy, earning them a technical diagnostic certification that confirms their enhanced skills and knowledge. After training, technicians are now better equipped to deliver advanced and high-quality vehicle services across the company’s facilities and workshops, and operate technologically advanced automotive diagnostic tools and equipment. Mirsad Nezirevic, general manager – service at Al Masaood explained that the programme will enable technicians to
REWARDING TRAINING The professional certificates were awarded to 21 employees at Al Masaood Automobiles in a special ceremony attended by senior executives from both entities last month.
perform at higher levels and achieve precise work results. “It is also built to make the participants flexible and adaptable to industry changes,” added Nezirevic. “The combined experience and knowledge obtained through this training will help our technical staff in ensuring that all required car repairs are conducted accurately from the first time, which in turn will have a positive impact on customer satisfaction.” The training complements the company’s commitment to enriched customer experience and automotive services par excellence. “By choosing to partner with Hella Gutmann Academy, Al Masaood Automobiles is also strengthening its knowledge on vehicle diagnostic tools and equipment,” said Nezirevic. “This will allow us to tackle all challenges arising from new technologies and systems that are continuously being introduced to the local automotive industry. “Ultimately, what we aim to demonstrate is that we are sparing no efforts to ensure that our facilities are manned by highly skilled automotive technicians and are equipped with advanced technologies.”
BKT INTRODUCES EARTHMAX SR 412 TYRE TYRES
Off-the-road (OTR) tyre manufacturer BKT Tires has introduced the Earthmax SR 412, it new tyre designed for articulated dump trucks, loaders and dozers. According to the company, the new tyre offers greater stability and resistance to damage as its main qualities due to a robust casing and all-steel belts, which enables the Earthmax SR 412 to transport heavy loads while avoiding tears and punctures. The tread has a unique design with an E-4 depth for high levels of traction and high heat resistance, while the square shoulder gives the new tyre a more solid grip on the ground. Available in 29.5 R 25 and 750/65 R 25 sizes, the Earthmax SR 412 is designed for dump trucks, wheeled loaders, wheeled dozers and graders. BKT says the tyres in this range are “true partners in the toughest operations”.
INSIDE THIS MONTH’S WORKSHOP: HOW THE PORTS AND LOGISTICS SECTOR IS EVOLVING IN THE REGION, THE MAN BEHIND NISSAN’S Z AND MUCH MORE!
24 APRIL 2021
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WORKSHOP
PIRELLI EXTENDS FORMULA 1 DEAL
ISUZU KSA AND SHELL TARGET SAUDI BUYERS WITH FREE 32-POINT INSPECTIONS REPAIRS
ISUZU KSA, and its Saudi dealers (Alyemni Motors Co., Bakhashab Brothers Co. Ltd., Alissa Universal Motors), embarked with Al Jomaih and Shell Lubricants on a comprehensive and lucrative service campaign last montb. The promotion offered ISUZU customers free vehicle inspections along with “hefty discounts”, said the Japanese brand. Included in the offer, explained ISUZU KSA, was a free 32-point vehicle inspection and a detailed health report. Customers also gain an additional 40% discount on parts and labour, “along with an assured gift and an attractive service coupon for the next visit. Moreover, customers will avail of a very special price on their engine oil and oil filter relative to the aftermarket.” The campaign was heavily promoted across the Kingdom using direct marketing platforms, it added: “(This campaign) cements ISUZU legacy as the heavy truck manufacturer of choice for drivers who accept no downtime and demand maximum highway time. Norihiro Yoshimoto, After Sales VP at ISUZU Motors International FZE, described the service campaign as a token of appreciation for the brand’s loyal customers in the Kingdom. “In the highly competitive and demanding Saudi trucking industry, it is insufficient to just provide a properly engineered and dependable heavy-duty truck,” he added. “Because drivers cover hundreds of thousands of kilometers a year, often in arduous climatic conditions, they demand, and rightfully so, exceptional aftersales service, thus turning our relationship with them into an enduring friendship built on trust.”
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TYRES The FIA and Formula 1 have proposed, and Pirelli has agreed, to a one-year extension to the existing exclusive tyre supply contract to reflect the original intention of the 2018 tyre tender and remain within the overall technical framework, which is in the best interests of all relevant stakeholders. The most recent tyre tender from the FIA and Formula 1 back in 2018 was for the supply of a 13-inch tyre during the 2020 season, followed by three consecutive seasons of 18-inch tyres from 2021 to 2023 inclusive. Tyre durability was a major concern during the early stages of the 2020 season with Pirelli being blamed for poor performance by some teams. However there were mitigating circumstances. The COVID-19 pandemic, which also disrupted
A SHIFT TO 18IN RIMS The shift to 18” wheels and tyres will certainly provide a more exciting image for Formula 1 cars, but it has also presented a significant technical challenge, says FIA president Jean Todt.
the 2020 Formula 1 season, obliged the FIA and Formula 1 to implement emergency measures that included the cancellation of tyre development tests last year and the postponement of planned new technical regulations – which included 18-inch tyres – from 2021 to 2022. As a result, the current rules now state that 13-inch tyres will be used during the 2021 season, with
a move to 18-inch tyres in 2022. “The pandemic caused disruption and Formula 1 was not immune from that. We took measures last year to defer the regulations by one year to 2022,” said Stefano Domenicali, Formula 1 President and Chief Executive Officer. “We are proud of our partnership and grateful to them for their constructive approach to this timing change.”
TENDERD AND EMA LUBRICANTS COMBINE
LUBRICANTS
Online equipment rental marketplace Tenderd and EMA Lubricants Company (ExxonMobil JV) have announced an agreement to offer maintenance services to equipment fleet owners in order for them to prevent breakdowns, increase fleet productivity and reduce project costs and delays. Explaining the agreement’s aims and objectives, a statement from Tenderd said that the “breakdown of one single piece of machinery on-site means loss of operation, project delays
and extra costs”. Since equipment and on-site work is interdependent, one single breakdown can bring the job site to a standstill. Other equipment and resources continue to absorb costs while idling by and waiting for the breakdown to be resolved. The single most important issue that causes equipment breakdown is the lack of proper maintenance. The collaboration between EMALU and Tenderd aims to address this problem. The technology startup focuses on increasing equipment efficiency and productivity on-site
with real-time data and has developed its in-house technology to identify and notify equipment owners, operators, and project foremen on predictive maintenance alerts. Collaborating with Mobil, it will offer exclusive services to its clients to ensure less equipment downtime and a higher utilisation rate. Arjun Mohan, founder of Tenderd, said: “It is very exciting to see our company collaborate with a global player in offering a large scope of different lubrication solutions that would fit each client’s needs.” APRIL 2021 25
FEATURE
AT THE CENTRE KPMG report reviews how GCC ports and logistics is playing its role in re-shaping the economy
26 APRIL 2021
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FEATURE
T
he last two decades witnessed significant growth in containerised cargo, fuelled by an increase in global consumer demand. A major contributor of the global trade growth has been China, with the country’s share in global merchandise trade increasing from 3.8% in 2000 to 12.7% in 2019. The Covid-19 pandemic resulted in an unprecedented contraction in demand leading to a slowdown in global trade in 2020. The World Bank forecasted a 5% reduction in global GDP and 20% contraction in trade volumes due to governmentimposed lockdowns and lack of demand. The global port industry’s earnings before interest, tax, depreciation and amortisation (EBITDA) for H1 of 2020 has reduced by 16% as compared to H1 of 2019. Container volumes have declined by 2.1% in 2020 but is expected to rebound by 8.9% in 2021. The list of the top 15 container ports in 2019 highlights China’s dominance in global container shipping with 8 of the top 15 ports located in China. China contributed 27% of the global manufacturing output in 2019 and most of the containerised volumes from Chinese ports represent port-toport (ie origin to destination) cargo. Container volumes have declined by 2.1% in 2020 but is expected to rebound by 8.9% in 2021. Port operators in the region are reimagining their operations, shifting to a broader concept of port-centric logistics, where they are part of a larger integrated ecosystem of global trade. However, the rapid increase in port capacities across the GCC region has led to a drop in utilisation, as supply growth has outpaced demand. Global trade patterns are gradually changing, with regional trade replacing the traditional east-west international routes. These were among the key findings of Anchored in the new reality – ports perspectives, a new report by KPMG Lower Gulf, which captures the evolving dynamics of the region’s maritime sector and the road ahead for port operators. Shahnawaz Nakhoda, partner, Ports and Logistics, KPMG Lower Gulf says: “The GCC’s strategic geographic location and state-of-the-art infrastructure has enabled port operators to play a vital role in global maritime trade. As the world battles geopolitical trade tensions and the coronavirus pandemic, meconstructionnews.com
EXPECTED TO REBOUND The Covid-19 pandemic resulted in an unprecedented contraction in demand leading to a slowdown in global trade in 2020. Container volumes declined by 2.1% in 2020 but is expected to rebound by 8.9% this year.
ports are playing a vital role in keeping the flow of goods moving. Port operators are building a presence across the supply chain to enhance their value proposition.” Container penetration in GCC countries is more than six times that of the world average and significantly higher than that of major developed nations in the west. The development of port-linked free trade zones has contributed to the success of the sector in the region. GCC port operators have continued to invest in infrastructure, expansion and technology, increasing throughput capacity, the KPMG report states. Currently, the region’s annual average capacity growth is estimated to be 4.2% — double the global average capacity growth of 2.1%, as supply growth has outpaced demand in recent years. Excess capacity has resulted
Saudi Arabia is planning USD 36 billion worth of investments in logistics”
in a port utilisation rate of 55% compared to the global average of 62%. Increased concentration in the shipping industry and the adoption of larger vessels has resulted in demand for higher port productivity and better infrastructure by the liners. To address these requirements, port operators are increasingly investing in technology the report states. GCC ports have higher-than-average vessel sizes, as they tend to be trans-shipment hubs. However, in the UAE and Saudi Arabia, the average duration of stay for a vessel in the port is higher than any of the other major maritime geographies, even in comparison with hubs such as Singapore and Hong Kong. According to the KPMG report, operators are also implementing technology-led solutions to increase trade efficiency and establishing initiatives designed to overcome trade barriers. Addressing port underutilization and congestion remains a priority. Meanwhile, climate change is emerging as a significant risk. Other emerging challenges include growing freight traffic and critical operational challenges while delivering services. To overcome these, ports are increasing investment in smart port technologies and integration of the value chain with digital platforms. The KPMG report notes that port operators are integral to the global ecosystem of trade, with emerging markets remaining the primary focus. In terms of geographical footprint, DP World is the most diverse operator, with terminals in 31 countries across six continents. Vertical integration between port operators and logistics service providers (both inland and by sea) either through alliances, or mergers and acquisitions, are picking up pace as port operators seek to increase their overall presence across the trade supply chain. Logistics service providers, especially smaller businesses who may not want to partner with port operators, would accordingly need to differentiate or improve their service offerings to remain competitive. US-China tensions
With the recent US-China trade situation having been aggravated by Covid-19, a number of multinational companies are contemplating a manufacturing exodus from China and relocating their production base to escape higher tariffs and rising production costs. The ongoing pandemic has expedited the shift as it makes sense for companies to diversify production and supply lines. APRIL 2021 27
FEATURE
Other countries including India, Bangladesh, Mexico, Vietnam and Taiwan are emerging as suitable alternatives. The shift will have a detrimental impact on Chinese containerised volumes but benefit ports of the countries where the trade shift will occur. However, while companies are reassessing their supply chains, they will initially find it difficult to replace China due to the challenges in replicating the scale and quality of infrastructure. As global companies look to realign their supply chains and decentralise their manufacturing capacities, China is also focusing more on high tech and high value industries to power their next growth cycle. Increased concentration in the shipping industry and the adoption of larger vessels has resulted in demand for higher port productivity and better infrastructure by the liners. The use of mega vessels has led to increased container handling per call, requiring higher crane throughputs and increased productivity. To address these requirements, global port operators are increasingly investing in automation technology. Four of the top eight port operators (HP, DP World, PSA International and Cosco) are considered ‘enthusiastic adopters’ of automation – i.e. they deploy automation across a relatively high number of terminals with some degree of automation. The rest are considered as at an ‘emerging state’ with a small number of automated terminals. The GCC region accounted for 3.4% of global merchandise trade in 2019, at USD 1.3
100
Currently, there are approximately 100 FTZs in the GCC region with more planned
trillion. The UAE and Saudi Arabia account for 77% of merchandise trade of GCC members, with the UAE enjoying the highest trade value. The GCC is making its mark in the world maritime trade due to the pace of infrastructure creation. Wealth derived from oil has been invested to create stateof-the art infrastructure over the last two decades. Countries including the UAE have invested heavily in building infrastructure such as ports and FTZs to attract FDIs. The GCC member countries account for more than 3% of global container port traffic, with the UAE leading the containerised trade throughput, representing more than 50% of the region’s total in 2019. The location of the GCC countries is advantageous as it is located at the entry to Red Sea and near the Suez Canal, and can be
considered as gateway to Europe and Asia. This location maybe an ideal transshipment hub for container traffic on the Europe-Asia lane. The mix of transshipment volumes is generally higher than port-to-port volumes in the GCC region. However, tariff rates from transshipment are significantly lower than that of port-to-port. As a result, port operators need to find the optimal mix of transshipment and port-toport volumes to maximise port profitability and productivity. Container penetration is more than six times that of the world average, and significantly higher than that of major developed nations in the West, indicating significant transshipment volumes. Approximately 51% of container traffic in the region is handled by ports in UAE, followed by Saudi Arabian ports with 23%. The Port of Jebel Ali in Dubai is the busiest in the region, with 51% of the throughput of the top five container ports. This dominance in container shipping is due to the UAE’s significant investment in port infrastructure and the logistics ecosystems, including Free Trad Zones. Other countries in the region have also announced significant investment plans in their vision documents. Saudi Arabia is planning USD 36 billion worth of investments in logistics, as part of its National Industrial Development and Logistics Programme. Most ports in the region are owned and managed by regional port authorities, while terminals are directly operated
GROWING GLOBAL IMPORTANCE The GCC member countries account for more than 3% of global container port traffic, with the UAE representing more than 50% of the region’s total throughput.
28 APRIL 2021
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FEATURE
either by the port authorities, or by major global port operators. Operators such as DP World and Gulftainer have expanded across multiple geographies. Abu Dhabi Ports, which operate ports, economic zones and logistics businesses in the region, have lofty global ambitions and capabilities for rapid expansion across geographies. The industrial and logistics sectors are amongst the core pillars identified for economic diversification in the GCC region. To support manufacturing-led growth and to attract FDIs, there has been an emphasis on development of FTZs. Currently, there are approximately 100 FTZs in the GCC region with more planned. The development of port-linked FTZs has been one of the success factors for the ports and logistics segments in the region. For instance, one of the key factors contributing to the success of the Port of Jebel Ali is the linking of their operations with the Jebel Ali FTZ. Several other players in the region are adapting the same model, including Abu Dhabi Ports – Khalifa Industrial Zone, Saqr Port – Salalah Port, Salalah Free Zone, RAKEZ Free Zone, etc. Throughput, capacity and utilisation
While the region is in a decent position in terms of demand growth, the rapid increase in capacities have fuelled growth in the region’s ports, leading to a drop in utilisation across ports, as supply growth has outpaced demand in recent years. The region’s annual average capacity growth is estimated to be 4.2% - double the global average capacity growth of 2.1%. The region is currently in a state of excess capacity with a port utilisation rate of 55% – the lowest in Asia by region and still far behind the global average of 62%. Another factor for consideration for authorities and operators in the region has been comparatively low port efficiency, as vessel turnaround time is generally longer. GCC ports have higher-than-average vessel sizes as they tend to be transshipment hubs. However, in the UAE and Saudi Arabia, the average duration of stay for a vessel in the port is higher than any of the other major maritime geographies, even in comparison to transshipment hubs such as Singapore and Hong Kong. One of the major factors affecting vessel days in ports is the quality of port infrastructure. Based on the 2019 data from the World Economic Forum Opinion Survey, in terms of port infrastructure quality, Singapore and Hong Kong ranked first and fourth respectively, meconstructionnews.com
IMPROVING CLEARANCE Port operators and public authorities in the GCC region are actively adopting innovative technologies and improving the customs clearance process to ease the movement of goods.
while the UAE and Saudi Arabia ranked 12th and 42nd respectively. Another factor that contributes to Hong Kong’s low vessel days in ports is its keen focus on a ‘convenience and trade’ policy, which imposes minimum licensing controls on transported goods and an expedited customs clearing process. To improve port efficiency, port operators, with the help of public authorities in the GCC region, are actively adopting innovative technologies and improving the customs clearance process to ease the movement of goods being imported and exported from the region. A recent initiative is the adoption of the World Logistics Passport (WLP) framework. The WLP framework is designed to overcome trade barriers such as logistics inefficiencies, that currently limit
Port operators in the region are reimagining their operations, shifting to a broader concept of port-centric logistics”
the growth of trade in developing markets. Benefits from the project include shared expertise and process developments among partner countries, resulting in cost and time savings and faster customs clearances. WLP connects government bodies such as customs authorities with logistics service providers to ease the process of commercial transactions. “The GCC region has played an important role in the development of the global maritime trade routes by virtue of its strategic location on the East-West trade lanes, enabling development of state-of-the-art infrastructure. This report endeavours to capture the evolving dynamics influencing the region’s maritime sector and the road ahead for regional maritime operators,” says Dr Steffen Wagner, global head of transport & leisure, KPMG. APRIL 2021 29
INTERVIEW
THE ESSENCE OF Z-NESS
Chief product specialist Hiroshi Tamura on how the Z Proto fits with Nissan’s DNA
S
ince 1969, the venerable Fairlady Z has enthralled sports cars enthusiasts the world over. While there have been many iterations of the model through the years, it has constantly maintained its identity as the archetypal Japanese sports car. So, what is the secret to its success? What has made this model so special over the years? To find out Nissan has been asking its employees what they thought were the qualities that defined the Z, what “Z-ness” meant to them. 30 APRIL 2021
And at the top of the list is Hiroshi Tamura, the chief product specialist (CPS) of the Z Proto and next Z. After graduating from university, he joined Nissan in April 1984, where he spent his early years as an engineer, along with stints at Autech Japan and Nissan Prince Kanagawa sales branches. In February 2006, he received his first CPS assignment— with the Product Planning Department — and in April 2012, he became the CPS of the GT-R and the 370Z, taking on the challenge to not only meet, but exceed fan expectations with both legendary models.
The Z responds to the driver’s impulses as an unspoken connection”
“Z-ness to me is the spirit of Nissan,” says Tamura. “It’s how the car connects to the driver — to the driver’s mind, body and soul — providing the ultimate driving pleasure. It’s where the driver meets machine, resulting in an authentic “oneness” or “bond” between the driver and car. The Z expresses a striking attitude that first attracts you and then entices you to want a lasting relationship. This is truly unique to Z.” When Tamura considers what he means by mind, body and soul, he describes, the Z as a perfectly suited dance partner, that “responds to the driver’s impulses as meconstructionnews.com
INTERVIEW
an unspoken connection that is deeply felt. Many cars possess good dynamic performance, but the Z makes it easy to enjoy this performance because it creates an emotional relationship with the driver. “Also, Z-ness is about enjoying and celebrating life in your own way, whether you’re the type that prefers driving solo on a challenging road or being part of a global community of Z enthusiasts, or ‘Zenthusiasts’.” The Z family – like its stablemate the GT-R – represent the flipside of Nissan’s more conservative output such as the standard Juke, Micra and Qashqai models. While it was always envisioned as an affordable interpretation of its car lines, dating back to the Fairlady of the late-1960s, each model has delivered power and striking good looks. “As mentioned, Z is the spirit of Nissan, and is especially important now as Nissan is going through its Nissan NEXT transformation. The Z injects excitement into every product in the lineup, which in turn, excites all of us who are associated with the company, including the customers, employees and fans,” adds Tamura. “It’s a car that people know and remember. The Z has a fundamental balance of power and design that’s instantly recognizable as a Nissan, and it’s within reach of many potential buyers, which is very important. It’s a dream car that can be enjoyed by many. “The Z has driven our passion to innovate and challenge the norms through the generations. Passion, innovation, challenge: These three words define the Z and remain vital to the company’s DNA, making the Z a strong influence in the culture and personality of Nissan.” He adds that the Z has managed to hold onto its strong fan base for 50-plus years. “The Z is timeless, thanks to its style and accessibility. Millions of people share a special connection with the car. Ask your friends or family about the Z, and you get smiles and very positive answers. That is what keeps the Z spirit alive, and it is only getting stronger.” Tamura explains that his job, as the chief product specialist (CPS), is to be the voice of those fans and customers. “Introducing a new Z is a challenging job for the whole team because so many people love the Z for different reasons, such as its appearance, performance, and even positive memories they may have had with the past generations of Z. We must consider the customer’s wants and their happiness first. But it helps that I meconstructionnews.com
Z-NESS: THE SPIRIT OF NISS AN Hiroshi Tamura, chief product speci alist of the Z Proto says the brand “represents the spirit Nissan”.
have loved Z cars since the very beginning, and I have owned them over the years.” Tamura admits to having been a Nissan petrol-head since he was a child. Unsurprisingly, he says he was a fan of two the GT-R and the Z in his formative years: “And it was then (that) I wanted to be a part of the future of Nissan and its sports cars. I remember the GT-R’s power and racing performance, and I remember the beautiful look of the Fairlady Z; these cars changed my life. I have so many happy memories owning and driving the Z and GT-R, and to think that I’m now responsible in
Passion, innovation, challenge: These three words define the Z”
creating them leaves me speechless. I will have to write a book about it some day!” His first model he adds was the 240ZG ‘G-nose’, “which I bought secondhand and, of course, instantly began tuning in pursuit of its ‘ultimate performance’, something I still do today.” He continues: “I loved the 240ZG’s appearance, which looked to me like a Shinkansen (bullet train). It had a very sleek aerodynamic body with a shape that sliced the air. It surprised me that a Japanese car company could create such a design, something with a low and wide stance, a long nose, a short rear deck and aggressive bolted over-fenders. The other Z in his garage was a turbocharged Z31 that he also tuned. “The tuning scene was big then and many aftermarket parts were affordable. I learned how to tune my cars through lots of trial and error, learning to pay attention to the details, such as the cooling system, the brake system, and much more. Some lessons I learned the hard way, but in the end, it turned out to be a very nice car.” Returning to the future, Tamura says that he wants people to drive the next Z and feel like they have discovered a new dance partner. “I want customers to smile and enjoy the car, while continuing to spread the Z dream. The next Z will be a car that will keep Nissan’s sports-car spirit alive, and I hope it will help create new, happy memories for the Nissan family, car lovers, and Zenthusiasts everywhere!”
A NEW CAR AND A NEW CHALLENGE Tamura says introducing a new Z is a challenging job as the car needs to meet its fans’ expectations of appearance, performance, and even their memories of past generations.
APRIL 2021 31
PARTING SHOT
NEVER RUN OUT ekar becomes world’s first self-drive mobility company to use automated mobile refueling
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wo of the region’s leading mobility pioneers CAFU and ekar are partnering in what they describe as the ‘next gen’ of connected car technology services. The two firms recently completed a successful trial of automating the fuelling process between CAFU and ekar’s fleet of cars; where the latter set of vehicles’ fuel tanks were never less than 25% full. The process itself is fully automated through a shared interface where CAFU sends an automatic refuelling push alerts via ekar’s Mobility OS during low-usage periods. Vehicles with 25% or less fuel in the tank are flagged to CAFU which then leads to an automated order generation. Once refuelled and marked completed by a CAFU pilot, ekar’s Mobility OS instantly reflects the new fuel level within the App for users to see ahead of their next booking. Through CAFU’s technology combined with ekar’s Mobility OS software, ekar’s entire
fleet of cars will always be full or at least above 25% of fuel consumption, “providing the driver with convenience and sparing them the long wait in refuelling queues at petrol stations”. This “first of its kind technology integration in the region” will reap benefits for both CAFU and ekar, as well as customers, said the firms: “For ekar, the simpler and smarter refueling system will allow added focus towards customers through real time fuel level monitoring and automated refueling timelines.” In a statement, CAFU explained that the partnership with ekar forms the first step towards a range of new partnerships making a leap forward in its “relentless ambition for delivering a new predicative era for car services, driving its momentum of innovation to be better connected to its customers, and harnessing further the power of technology to be more responsive for the world today.” “The deepening of this partnership between
CAFU and ekar marks another milestone as it aligns with our mission to enable convenience in motion,” said Rashid Al Ghurair, CEO and founder, CAFU. “This disruptive approach works towards our long-term vision of always using the collective power of intelligence – both human and machine – to create a better world through connected mobility to enable consumers access a superior unmatched product experience. “ekar is a like-minded partner placing the focus on convenience-based solutions for customers and we will be using our technology to evolve this even further. Vilhelm Hedberg, founder, ekar, said his firm was proud to be the world’s first Self Drive Mobility company to natively integrate automated mobile refueling. “We are constantly working to improve our customers’ experience, and with our integration with CAFU, ekar carshare customers know that they will always have a fueled car ready to drive.”
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