Truck&Fleet ME June 2020

VEHICLES/ TECH / TRANSPORTATION/LOGISTICS

MIDDLE EAST

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T O G E WE’ V O D O T K R O W

9 1 D I I V CO it w o h n o y r dust n i t e e fl e h T ght fi e h t n i w is going to us r i v a n o r o C against the

LAUNCHES

CONTENTS FEATURE

18 / STATE OF THE EV REVOLUTION Economic challenges could spur a surge in electric vehicle sales.

ALSO THIS ISSUE … NETWORK

06 / NEWS FROM THE MONTH

06

10

14

22

26

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News from around the region as Averda advances in Saudi Arabia and the industry deals with COVID-19.

FEATURE

10 / A NEW NORMAL Fleets talk about how they are dealing with new regulations and rules introduced to fight the Coronavirus outbreak.

INTERVIEW

14 / FACING THE CHALLENGE T&FME catches up with Scania Middle East to learn how they are still open for business.

FEATURE

22 / AROUND THE CORNER It is time to realise that you need a new business model as transportation changes.

WORKSHOP

24 / ALMAJDOUIE DEAL Saudi logistics player opts for WABCO to fit telematics systems to thousands of vehicles.

FEATURE

26 / NO TIME TO STOP How we can keep the world moving during and after COVID-19.

FEATURE

30 / FEELING GREEN SAF-HOLLAND on how it is helping transportation be sustainable.

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MAY-JUNE 2020

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NETWORK

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

RESTRICTIONS EASE, BUT NOW COMES THE REAL TEST Restrictions on movements may be easing in some countries after one of the quietest Holy Months I can remember, but the transport industry isn’t out of the woods yet.

Many fleets have, of course, continued to operate in some capacity during the Coronavirus panademic and, while others will begin to re-emerge, we are all facing one of the most serious economic crises seen in decades.

To put it in context, the organisation that oversees businesses in that most global of our regional cities, Dubai, said on the eve of Eid celebrations in the Emirates that 70% of companies were at a risk of going under because of financial difficulties before the end of the year.

This could be the biggest challenge the industry will have to face for a generation and throughout this issue you will see references to the vital roles fleet may play in keeping lives and the economy going. It is my hope that the incredible work carried out during the most testing of times will be recognised by financial support, or at least flexibility, to ensure they can remain in place to enable

normality (or something close to it) to return as quickly as possible.

It has been heartening to see so many fleets look to protect their drivers and customers by introducing new practices at a searing pace throughout the outbreak but now is now the time to rest on our laurals. As I’ve said many times, fleets need to do the basics of training, safety and efficiency to achieve the bare minimum of surviving.

When we set out the planning for the year, we expected to be focused on the aftermarket and electric vehicle technology. Now that Automechanika Dubai is scheduled to come later in the year, we will push that coverage into our late summer issues. We are, however, still looking at the development of EVs in this combined edition and there is certainly a sense that some of the solutions it promises such as lower air pollution and sustainable transport seem even more relevant than they did a few months ago.

It’s a pity that governments won’t view them as priorities in the short-term but then we all recognise that all our priorities are changing because of the Coronavirus.

EDITOR STEPHEN WHITE stephen.white@cpitrademedia.com +44 7541 244 377 SUB EDITOR AELRED DOYLE aelred.doyle@cpitrademedia.com ADVERTISING SENIOR SALES MANAGER BIPIN SONEJI bipin.soneji@cpitrademedia.com +971 4 433 2856 DESIGN ART DIRECTOR SIMON COBON simon.cobon@cpitrademedia.com DESIGNER PERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com PHOTOGRAPHY MAKSYM PORIECHKIN maksym.poriechkin@cpitrademedia.com MARKETING MARKETING ASSISTANT AYSHA SULTAN aysha.sultan@cpitrademedia.com +971 4 375 5498 CIRCULATION & PRODUCTION PRODUCTION MANAGER VIPIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 DISTRIBUTION MANAGER PHINSON MATHEW GEORGE phinson.george@cpitrademedia.com +971 4 375 5476 WEB DEVELOPMENT 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

STEPHEN WHITE EDITOR, TRUCK&FLEET ME STEPHEN.WHITE@CPITRADEMEDIA.COM 02 MAY-JUNE 2020

to CPI Trade Publishing FZ LLC. Printed by Printwell Printing Press LLC. CPI Trade Media. PO Box 13700, Dubai, UAE. +971 4 375 5470 cpitrademedia.com © Copyright 2020. All rights reserved.

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CONSTRUCTION

KSA’S BINLADIN GROUP

Kuwait construction sector facing mass closures due to COVID-19 lockdown

CUTS THOUSANDS OF JOBS AND SLASHES SALARIES DUE TO COVID-19 CRISIS

So Binladin has cut thousands of jobs and is reducing staff salaries by between 30% to 70% as the coronavirus outbreak hits the

CONSTRUCTION

contracting giant (KSA’s

Etihad Rail begins construction of $4.9bn, 605km long second phase of rail network

Binladin Group cuts thousands of jobs and slashes salaries due to COVID-19 crisis)?

Analysis: Uncertainty key challenge facing business leaders according to survey

While it is always sad to see people lose their jobs, I think this move was inevitable.

FLEET

The pandemic has just

MAG launches ‘Uber-style’ maintenance tracking app

accelerated the process.

While the Saudi market has seen a lot shallower dip in activity, we are, across the region having to face up to a new normal and SBG has been struggling

MACHINERY

for some time.

Abu Dhabi Terminals announces delivery of five STS cranes to Khalifa Port Container Terminal

Recent issues only served to highlight its reliance on out-sourcing and subcontracting. I hope that we will see a new SBG emerge that can fuse the best of its expertise and the best of modern

CONSULTANT

Arada to launch Sharjah’s first drive-in cinema experience

04 MAY-JUNE 2020

Feature: Cairo real estate fighting off influence of COVID-19

construction practices.

Name withheld by request

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NETWORK

AVERDA WINS KSA WASTE MANAGEMENT CONTRACT / ABU DHABI MAKES LARGE DAIMLER BUS ORDER / HALA AND SWEETHEART JOIN FORCES / FUSO EXTENDS WARRANTIES IN MENA

NETWORK

Averda awarded solid waste management contract by TRSDC AVERDA AND THE SAUDI NAVAL SUPPORT COMPANY (SNS) WILL COLLECT AND RECYCLE WASTE GENERATED BY ADMINISTRATION OFFICES, RESIDENTIAL FACILITIES, AND CONSTRUCTION

WASTE MANAGEMENT A JV between leading waste management company, Averda and the Saudi Naval Support Company (SNS) has been awarded a solid waste management contract by The Red Sea Development Company, the developer behind one of the world’s most ambitious tourism initiatives.

The JV will collect and recycle waste generated by administration offices, residential facilities, and construction activities.

The parties involved said the deal will ensure that handling will meet the high environmental standards set for a project that has set a goal of ‘zero waste to landfill’.

“We’re uncompromising in our commitment to protect, preserve and enhance the natural environment. Pioneering new standards in sustainable development is at the heart of The Red Sea Project, as is selecting the right partners who are willing and able to support our ambition,”

said John Pagano, CEO, The Red Sea Development Company.

The Red Sea Project is considered a flagship international tourism development which will set new standards in sustainable development in the Kingdom with sustainability targets including a 100% reliance on renewable energy, a total ban on single-use plastics, and complete carbon neutrality in the destination’s operations.

The Red Sea Project site is being developed from the ground up,

with no pre-existing infrastructure in place. The award of this contract represents another step forward in the development of enabling infrastructure that supports the delivery of the first and second phases of construction, the developer explained.

“We are pleased to award this contract to a partnership led by a Saudi company, and feel confident that both will play a key role in our aim to achieve zero waste to landfill even during construction,” added Pagano.

A NEW STUDY IN NATURE CLIMATE CHANGE LED BY UK AND US SCIENTISTS SAYS DAILY GLOBAL CO2 EMISSIONS IN EARLY APRIL WERE DOWN 17%

06 MAY-JUNE 2020

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NETWORK

ABU DHABI COMPLETES LARGE DAIMLER BUS ORDER BUSES

AD PORTS CONSTRUCTS COVID-19 TESTING FACILITIES LOGISTICS

Abu Dhabi Ports has constructed COVID-19 testing facilities at Zayed Port and Khalifa Port, in a bid to preserve the health and safety of maritime personnel in Abu Dhabi and to drive business continuity. The facilities can be used by all port employees, as well as contractors and subcontractors working in the port.

According to a statement, the 150sqm testing facilities feature the latest equipment for detecting COVID-19 and are staffed by qualified medical personnel who can conduct tests in minutes.

Results are said to take 24 hours and Abu Dhabi Ports said it aims to conduct 6,000 tests in the upcoming days.

“Hundreds of thousands of port personnel, ship crews, and offshore workers across the world are running critical maritime operations, day and night, to ensure that the global supply chain continues to move critical cargo to where it is most needed. As part of our fight against COVID-19, it is imperative we redouble our efforts to protect the health of these invaluable individuals, so they can continue to support our vital economic and trade lifelines and help mitigate the overall impact of the coronavirus pandemic,” said Captain Hazzaa Al Junaibi, Corporate Security manager at Abu Dhabi Ports.

Abu Dhabi Ports states that it introduced several measures to ensure health and safety is maintained across all aspects of its operations, since the outbreak of the pandemic.

It has introduced temperature screening at all sea checkpoints, as well as thermal scans of all vessel crews and offshore personnel. meconstructionnews.com

Emirates Motor Company Commercial Vehicles (EMC CV) will maintain the buses under a five-year full-service contract. Daimler Buses said it recently delivered 99 MercedesBenz city buses to the Abu Dhabi Department of Transport in the UAE. The new city buses are low-floor solo buses from the Mercedes-Benz Citaro range and have started operations in Abu Dhabi “to significantly expand and modernise the capital’s efficient and well-integrated transport system”.

The buses were manufactured at Daimler Buses’ production site in Mannheim, Germany and are equipped with the Euro VI emissions standard.

Emirates Motor Company Commercial Vehicles (EMC CV) will maintain the buses under a five-year full-service contract.

Daimler Buses first supplied Abu Dhabi with 100 units of the Mercedes-

Benz Citaro in 2009. With a second major order, “the delivery underscores Daimler Buses’ strategic growth goal of opening up new markets; thereby, further expanding its global market presence,” said the manufacturer.

UD TRUCKS ANNOUNCES 60-DAY WARRANTY EXTENSION DURING LOCKDOWN HEAVY TRUCKS UD Trucks owners in the region with warranties ending during Covid-19 lockdowns have been given a 60-day extension by the Volvo Group truck maker.

A statement from UD Trucks said the decision, which also covers UD Trucks customers in East Africa, said the initiative aims to support its customers “who are not able to carry out services due to the varying levels of social distancing measures mandated by individual governments”.

“UD Trucks hopes to alleviate any concern from customers

who have vehicle maintenance and repair needs during these challenging times. Logistics is the lifeblood of society and with the current situation it is more important than ever that trucks stay on road to deliver the goods we take for granted in our day-to-day lives,” said the company.

Amon the measures and services announced by UD Trucks are ongoing service and support to customers carrying out essential services; extensions to periodical service and maintenance without any impact on the warranty

terms; and dxtended warranty coverage of 60 days for vehicles whose warranty expires during the lockdown period Adding that that lockdown dates, service contracts and warranty terms and conditions might vary from market to market, it advised customers to contact local distributors for more details on the warranty extension and related measures.

UD added that with the importance of business continuity in this period of unprecedented disruption, it is ‘endeavouring to play its part to help negate the impact’.

MAY-JUNE 2020 07

NETWORK

FUSO EXTENDS WARRANTIES TO MENA CUSTOMERS LIGHT TRUCKS

Buyers of Fuso Trucks are to be handed an extended warranty in the MENA region as part of a global programme to support customers during the peak weeks of the Coronovirus (COVID-19) pandamic.

The current global situation has resulted in extremely trying times for businesses and individuals alike, said Mitsubishi-Fuso in a statement.

Any Fuso truck, bus or engine with a warranty expiring between March 15 to May 15, 2020, is now valid for an additional two months of warranty coverage.

“In order to support Fuso customers and their services to society, Fuso is now offering extended warranties to customers in the MENA region as part of a worldwide

assistance program designed to help meet these challenges,” it added.

“Our customers are working tirelessly. We want to give them our fullest support,” said CEO of Mitsubishi-Fuso Hartmut Schick.

Fuso is rolling out the programme to ease the increased demands on transport, supply, delivery and emergency support, ‘which are paramount to communities and the vital services that safeguard society’s well-being.’

Fuso said it continues to ensure the safety of customers and employees at service locations that remain open.

UNION COOP DOUBLING FLEET AS IT COMMITS TO COMPLETING ONLINE ORDERS WITHIN TWO DAYS DELIVERIES Union Coop says that it has bolstered its logistical operation to ensure that it can fulfill online orders within two days.

The company is also finalising contracting with several companies to raise the its level of delivery and double its fleet to 300 vehicles.

The largest consumer cooperative in the UAE said in a statement that this “comes within the framework of improving its services to delight

the community members and contribute towards curbing the spread of Coronavirus.”

Union Coop has raised the number of employees working in the online store to more than 500 people and have been deployed throughout its e-commerce section, delivery services and logistical support.

A spokesperson for the company said its partnership agreements with Noon, El Grocer, Dukkaani, Instashop, Masar, ATC, Swan, Dubai Taxi,

Infiniti, New Heights and ADCO have helped achieve records in delivering the goods. The retailer now wants to boost its fleet operation even further.

“Where there are currently about 155 delivery vehicles, we are seeking to increase their number to more than 300 vehicles,” said the spokesperson.

“We are currently working on contracting with several companies to raise the level of delivery and achieve the highest levels of consumer happiness.”

HALA AND SWEETHEART KITCHEN PARTNER-UP DELIVERIES

Sweetheart Kitchen partnered with Hala (Dubai Taxi) to deliver food packages to drivers in an initiative to “feed and fuel the front line” during Ramadan amid the Coronavirus (COVID-19) pandemic.

Over 500 three-course meals have been facilitated by Sweetheart Kitchen through their collaboration with Hala (Dubai Taxi) in a bid to support the “frontline workers” of Dubai’s transport industry.

This initiative comes as a natural significant decrease in demand for public transport continues, with official restrictions remaining in place to reduce unnecessary movement around the city, said the firms.

“Now more than ever, our core values at Hala are guiding our everyday decisions, as we make every effort to help our captains, who have been affected by restrictions,” said Ann-Sophie Petersmann, marketing director, Hala.

“Above all, this is a time for togetherness, and we are proud of this partnership with Sweetheart Kitchen; working together to realise meaningful difference for them.”

The two companies said the collaboration is a “reflection of how local businesses are coming together in unity for the greater good of lending a helping hand to their communities”.

Adib Samara, Global Brand & marketing director of Sweetheart Kitchen added: “It is our responsibility; in fact it is our civic duty to support the local community in times of need.”

INSIDE THIS ISSUE: HOW TRANSPORTERS ARE ADAPTING TO COVID-19, SCANIA ON FIGHTING THE PANDEMIC, AND MUCH MORE!

08 MAY-JUNE 2020

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NETWORK

AL RAWABI COMMITS TO FREE HOSPITAL FOOD DELIVERIES DELIVERIES

Al Rawabi has launched a new CSR initiative that will see it deliver free food to hospitals in the UAE via the ministry of health.

The functional products can boost immune systems which will ‘give each of us an edge in staying healthy’ during the Coronavirus (COVID-19) outbreak, claimed the dairy food specialist.

The functional products, which are enriched with multivitamins and minerals, were designed to help solve the major health concerns of the GCC population, such as Vitamin D deficiency, which can lead to bone metabolism disorders, rickets in children, cancer, cardiovascular disease, diabetes, and much more, explained the company in a statement.

“We are not powerless,” added Dr Ahmed El Tigani, CEO, Al Rawabi Dairy Company. “In a time where everyone is looking at how to protect himself from COVID-19, Al Rawabi is committed to boosting your health by improving the well-being of your immune system.”

A truck delivering Al Rawabi functional products (Vitamin D, Nutree Boost, Orange Juice, Super Milk) will be delivered daily to the ministry of health in the UAE, “who will be taking care of distributing the products within the hospitals’ network to everyone, from the medical staff to their patients, to boost their immune system.

“Right now, what matters most is guaranteeing everyone’s safety and immunity. We want to salute our doctors and medical staff and support them as much as we can.” meconstructionnews.com

SAUDI CEMENT SECTOR NOT HIT BY CORONAVIRUS PANDEMIC IN Q1 2020 MATERIALS The Saudi cement sector has not witnessed any impact from the coronavirus pandemic in terms of the year-on-year volume growth during the first quarter of 2020, a new report from Al Rajhi Capital has found.

According to the report, the total market volume in Q1 grew by 33% on an average, when compared to the previous year. When combined together, the companies under the report’s coverage also witnessed similar year-on-year average growth, it added.

From the companies under its coverage, Qassim Cement reported the highest y-o-y growth of 53%, followed by Yanbu Cement and Yamama Cement, with y-o-y growth of 43% and 38% respectively.

However, restrictions imposed by the government to reduce the spread of the virus have resulted in project delays, the report said, adding that this may directly impact the demand in the Kingdom, which cause under-utilisation of capacities.

Along with the Ramadan season, these circumstances are expected to lower cement

volumes and thereby the revenue of producers, mainly in the month of April and May. The report added that Tabuk Cement has already made an announcement, stating that it expects the impact of the coronavirus epidemic to be reflected in its financial results.

The pandemic has further hit oil prices, driving them to their lowest, which means that government spending could be curbed within the country.

This could disrupt current and future projects, including housing and infrastructure, the report concluded.

SERVEU LAUNCHES A NEW DISINFECTION SERVICES SERVICES

ServeU, has launched a new line of specialised disinfection services in the UAE. The Union Properties leading facilities management service provider is offering “a full set of cleaning and disinfection services” for customers across businesses, offices and residential properties, including sanitisation and disinfectant treatment at their accommodation and offices.

ServeU confirmed it will only use products which meet the “highest international standards for healthcare disinfection and comply with all of OSHA regulations as well as being

certified by Dubai Municipality.”

“The new services include the disinfection and sanitisation of all surfaces including hard to reach areas,” said Gary Reader, general manager,

ServeU. “Our cleaners comply with Covid-19 measures and are daily disinfecting and sanitising workplaces, buildings and homes to prevent the further spread of the virus.”

MAY-JUNE 2020 09

FEATURE

M O R F HELP EROES H G N U U NS re a h s y r t s u d e in h t s s o r c a m ep o e r k f s o r t o e t c a i t r c e Op pra d o o g d n a ence i r e p mic x e e d n r i a e p h t e h t ing r u d e f a s s t flee

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FEATURE

O

ne of the positives to come out of the recent jolt to the market has been the eagerness of companies across the industry to share their advice to others on how best to adjust to the so-called new normal we are all facing. Case in point, a webinar hosted by Dubai Chamber and supported by UAE Roadsafety last month that brought together a wide selection of fleet and operations managers to discuss how they are the introducing new practices to ensure their drivers and workforce can stay safe and healthy during the Coronavirus (COVID-19) outbreak.

Syed Atif Ali, program manager CSR, Dubai Chamber, said he wanted the event to get member companies to share then steps they taking to protect their employees and, in particular, their drivers from exposure to COVID-19.

“The aim (of this webinar) is to address the health and safety of commercial drivers as they are likely to be at higher risk during this pandemic due to the exposure they get,” said Atif Ali. “They are the unsung heroes delivering critical medical and food supplies in this time of crisis.”

Having spread from the Chinese city of Wuhan at the turn of the year, the UAE first began introducing measures to tackle the spread of the virus in March before enforcing a lockdown of the country on Saturday, 4 April.

Firms were suddenly forced to implement measures that meant an unprecedented strain on their day-to-day operations such as infection control and safe work practices; the acquisition of Personal Protective Equipment (PPE) to prevent worker and driver exposure; while addressing the need to keep vehicles out on the road sanitised.

“Since this is an ongoing situation, we are all learning how to deal with it,” Atif Ali sums up. “We recognise that our member companies are committed to comply with regulatory requirements and have adopted industrial practices to the best of their knowledge.”

Roshan Menon, quality and safety manager, Emirates, stressed that social distancing will become the ‘new norm’ even in the travel and hospitality sectors.

He added that the famous brand is looking at the use of synthetic partition and isolators that segregate the passenger and driver as way of enabling the safe sharing of vehicles. meconstructionnews.com

A PICTURE OF HOW THINGS USED TO BE Sectors like hospitality are having to re-think the way they engage with their passengers and clients.

TAKING COVID-19 HEAD-ON Dulsco’s Fenu Rehana said that its new safety precautions are part of a strategy to tackle the threat of the pandemic ‘head-on’.

In the aftermath of the outbreak the world it has issued instructions within its Transport Services set-up asking providers to improve their vehicle sanitisation practices and driver management processes to safeguard colleagues and passengers.

“As a precautionary control, providers have been instructed to create and monitor infection control procedures that include daily health monitoring of drivers (using thermal scanning) at their accommodation and workshops, and increased cleaning with alcohol-based products,” he explained.

Part of the sanitisation measures include explicit advice to ensure every vehicle is wiped down at the start of every shift. Drivers are also being frequently briefed on good hygiene practices that follow WHO (World Health Organisation) and Dubai Health Authority guidelines. If a driver has been quarantined or asked to do a health check, the assigned vehicle must be isolated and washed down.

“The Transport Services Health and Safety team are validating this through periodic audits,” he said.

Fenu Rehana is a manager at Dulsco’s own health and safety executive. To protect its 14,000-strong workforce and the communities they serve, he said the services company is, “actively implementing our business continuity plan and implementing all the health and safety measures for our staff and communities first. We at Dulsco have a motto of powering better communities and we believe that this is the time are to stand and deliver.”

According to Rehana, the key to successfully implementing its own Covid-19 safety programme is transparency, flexibility and resilience.

“We are taking this head-on,” affirms Rehana. “We have a Covid Action Group which meets daily and discusses all proactive measures to mitigate the risk.

We also have a our HSE training team which is commissioned to do sanitisation.

(They are) very important at present for transportation where we have a lot of buses.”

The company started early with its anti-coronavirus strategy in March; setting up hundreds of sanitiser facilities throughout its offices and employee accommodation, as well as implementing sanitisation programmes for its fleet. You cannot now enter a Dulsco facility without passing through a disinfectant zone and buses used to carry workers have been fitted out with sheeting to protect drivers and passengers.

MAY-JUNE 2020

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FEATURE

With their vehicles ventilated and cleaned using disinfectant before each shift, drivers are being checked to see if they have a temperature before going out onto the road. They are furthermore responsible for the safety of passengers.

“They are being asked to take the lead and ensure everyone boarding the bus is being checked for a temperature,” he revealed.

Getting information on the risks being posed by Coronavirus out into the workforce was critical during the early stages within Dulsco, he added.

“Prior to this pandemic, we started escalating with a lot of sessions done by doctors close to our accommodation.

We have done a lot of training in terms of cleaning and sanitising.”

Much of this training is now being conducted online and workers can access pages of information in a multitude of languages to ensure that it is easy for everyone to understand the precautions they need to take.

“We have started online and offline platforms and toolbox of is one of the most important to communicate all these messages to drivers as basically one-to-one or face-toface training is not allowed and it is difficult to get training done,” he said. “When they go out to the communities in vehicles and buses, we want to give them the right brief on how to sanitise and how to get their PPE ready. We provide waste management PPE and safety glasses to all employees.”

In addition to these measures, the company is using posters as part of the ongoing awareness drive to keep people safe.

“Everybody is aware of the preventive measures in place and the new guidelines that needs to be followed which on a daily basis we get from the government and the authorities. Transport, buses and waste management vehicles are mobile environment prone to the spread of infectious diseases such as cold and flues.

And specifically in terms of Coronavirus, it is very important to sanitise those vehicles.”

Sundarmoorthy Hariharaiyer, manager, Warehousing & Transportation at Transworld said the logistics and shipping company was now closely guarding its facilities against the threat posed by the outbreak.

“Our security personnel at the Entry/ Exit gate post check the temperature of all visitors, customers and employees.

If their temperature is above 37°Celsius they do not allow that person inside 12

MAY-JUNE 2020

A VITAL ROLE TO PLAY Throughout the pandemic, transportation and logistics firms have continued to keep going to ensure the vital products like food remain in the market.

MISSION CONTROL Tristar has launched a Mission Control team that ensures that health and safety guidelines are understood by its teams.

the premises and advise them to go to a medical clinic,” he began.

Hand sanitiser dispensers have been installed throughout all locations and employees have been advised to regularly use sanitiser during the day to reduce risk of infection. All employees are meanwhile asked to wear medical masks and hand gloves to protect against infection. Drivers must run through a series of check and sanitise the vehicle completely, “before he starts the vehicle.”

Like Dulsco, briefings have become a daily ritual at the company with the Group HR CSR team playing a vital role, he added: “By educating our employees and revealing the importance of Safety Health, and routine basic medical check ups are conducted at our premises for everyone.”

They are the unsung heroes delivering critical medical and food supplies in this time of crisis”

“The basic medical check-up is free for employees who work on the floor,” Hariharaiye commented. “So they all are well aware about the precautions that need to be taken. On top of that, within the company, we have a dedicated doctor who visits once a month to our office and guides all of our employees and understand their problems.”

At the start of the lockdown over two-thirds (70%) of the Transworld staff were forced to work from home but the company was able to fall back on its cloudordering system to keep sales, warehousing and logistics operations connected.

“We were the first in the industry to switch to cloud... Everything is digitalised.

No customer needs to call; with the click of a button they can get the details: for instance, meconstructionnews.com

FEATURE

THE NEW NORMAL It is not clear when economically important sectors such as travel will recover, however, precautions to protect safety and health will remain in place for the foreseeable future.

if they need a stock report or if they need to know where the vehicles are. We also provide an app to all the drivers who can inform the customer when the product is going to be delivere by clicking a link to upload the details.

“This is a difficult time. We all are working together to overcome these current challenges but we are very much optimistic that this is a temporary period.”

Tristar Group operates in 20 countries within business verticals of shipping and is one of the region’s leading road hauliers.

“We are already involved in many initiatives and work with local authorities like the RTA to keep our drivers safe on roads,” remarked Arundhan Alphones, AGM-Operation RTW, Tristar Group. “You all aware of challenges in road transport meconstructionnews.com

COVID-19 is giving a new life for everyone to learn the importance of safety”

but now we have another challenge to ensure our drivers remain and deliver product essential for our survival.”

According to Alphones, Tristar drivers complete 25.3 million km per year in the UAE alone.

“That is the equivalent of 30 round trips to the moon, so you can imagine the risks involved in road safety and we have aligned drivers with our values in our day-to-day operation.”

He continued: “Our drivers are in close contact with our customers and away from offices; and so we quickly developed a control framework that this is in line with the UAE government as well as the information what we are receiving from the WHO.” With the flood of information on how to properly remain operational, he explained that, initially, there was some confusion on what the best measures to implement across its vast operation would be. He said the solution was to set-up Mission Control, a team that can cascade advice down through the firm and into its operations.

Soon drivers were learning about the importance of thermal screening as well as why and how their entire vehicle and accommodation were to be sanatised. Basic PPE for the drivers and the employees was also made available with social distancing the key to keeping them and anyone they came into contact with safe.

“A permit is issued to the drivers every day after they are checked while boarding the bus at their accomodation - if he is sick he is isolated in a separate room,” he explained.

With drivers moving between cities and borders, Tristar also began releasing a Daily Bulletin that detailed the precautions needed to be taken before driving but also border information – local information – on work permits, PPE requirements, and more.

“We get it daily around 6-7 o’clock AM. I’m amazed how it is being captured. They work the entire night and publish in the morning to get the fresh news out,” he enthused.

With personal hygiene and strict adherence to new guidelines now a must, Alphones said the drivers are the best way to judge how the company is adapting to a new way of working.

“You can see the change day by day,” he remarked. “COVID-19 is giving a new life for everyone to learn the importance of safety. We were struggling when we first started road safety awareness but

now I can see each and every driver’s caution. Transportation should not come to a standstill in this kind of situation.”

Suneeth Mathew works as sales support and SHE officer for the UAE subsidiary of one of the world’s biggest FMCG brands Nestlé. He said, as always, for the company people are at the heart of its business and it is working hard to keep its employees, partners and communities where it operates safe during the coronavirus outbreak.

He explained that all the Nestlé factories are in the region and other parts of the world are up and running, but it has placed additional safety measures across its factories, offices and distribution centres.

“We work closely with our supply chain distributors and retail partners to implement appropriate infection control measures and ensure continued production and delivery of our products across the world,” said Mathew. “We are determined to ensure the continued availability of food.”

Nestlé UAE froze international travel at the start of the lockdown and asked pregnant employees or those with underlying health issues to work from home. It also introduced thermal checks for all the employees coming into its office with drivers given access to complete a thermal check if they are feeling unwell.

“An awareness communication was rolled out in all the offices across UAE and has been displayed on all the monitors,” he added. “So, employees are seeing the hygiene measures sent out by the DHA and the Nestlé sites.

“Proper guidance was given to the cleaning star to ensure the safety of our employees in offices, and also in the factories they were told to increase the times they clean the premises (using proper hygiene measures and sanitisers).

A subsequent awareness communication was sent to all the employees using different platforms like workplace solution the through a Facebook emails and WhatsApp, he explained, adding that special instructions have been handed to those transporting its products.

“For me, my drivers are basically merchandisers who make sure Nestlé products are available in supermarkets and hypermarkets for all of us,” he remarked.

“We have given them safety kits, like masks and sanitisers and gloves for their safety. So, even when they use their own cars, they are protected and encouraged to use sanitisers for their safety.”

MAY-JUNE 2020

13

INTERVIEW

HELPING HANDS

Scania Middle East’s Hans Wising talks to T&FME about keeping fleets moving during the COVID-19 crisis

S

weden is being held up by some as an example of how to deal with the Coronavirus (COVID-19) pandemic.

While the early signs suggest its pragmatic approach is working; it will be months, or possibly years, before the world will be able to judge if its fight to keep the country going, when others have closed ranks, has truly been successful.

The fleet industry, of course, rarely gets more than a few hours before it can be held to account. Some industries may be enduring enforced lay-offs, but many fleets are still busy providing essential services to keep food and economies going.

Consequently, the regional division of one of Sweden’s most famous exports very early on decided that it had no choice but 14

MAY-JUNE 2020

to keep its operation going as much as it possibly can. Like many of us, the staff of Scania Middle East are adjusting to the new normals of social distancing and rules on how many people can be in their Jebal Ali office at one time. Disruptive it may be but regional sales director Hans Wising tells T&FME during the height of the disruption in April that the firm is determined to help support its customers as the COVID-19 crisis continues to disrupt business in the region.

With the on-trend niceties of checking that we can hear each other – even if the video isn’t behaving – out of the way, Wising is soon confirming that, with sectors such as oil and gas and construction continuing in parts of the region, customers can still access workshops and fleet support. In fact, even through a wobbly connection (at T&FME’s

The focus at Scania is to keep our customers running”

end), there’s plenty of bandwidth for him to stress that Scania Middle East is ready to serve fleets whenever they need help.

“Trucks are a part of a society’s lifeline; keeping goods and medical supplies moving. The focus at Scania is to keep our customers running and keep our workshops open and keep spare parts available.”

Wising says that construction and food supply continued to ‘move on’ even after the start of lockdowns and Scania Middle East and its dealers offered a full set of sort of services at their workshops as well as the continuation of mobile unit support for fleets despite showrooms and sales operations largely closing down.

The variety of rules in place between countries in the region means that the workshop services currently available to meconstructionnews.com

INTERVIEW

couldn’t get components and parts,” he muses. “But when it comes to purchasing, of course, we have products that are available.”

(After halting production at most of its facilities in March, Scania said it was gradually restarting production in Sweden, the Netherlands, Brazil and France at the end of April. All locations began operating at reduced capacity, with its Swedish plants opening initially for two days of the week, and at half capacity compared to normal operations.)

At the start of Apri’s lock-down, Scania Middle East juggled restrictions to maintain a maximum of only 20% of the workforce sitting at their desks. Wising explains that meant that only one of the management team was able to go in any one time. There is a pause and then a chuckle, “Tuesday is my day.”

Turning more serious, he adds, “Of course, even with the need for minimal contact, our role is to ensure we support our dealers support their customers.”

Part of this help has been to give advice and guidelines on how to survey workshops and provide safe assistance and help to incoming truck and bus owners or drivers.

Wising says it has been helpful when introducing these new practices to fall-on the Scania expertise in other regions.

“We have been able to follow Scania’s own global guidelines although of course there are different regulations in some countries,” he adds.

As we talk, Scania trucks supplied by the Swedish manufacturer’s dealer SATA are being deployed by the Royal Navy of Oman to help ferry fuel supplies between fleets may differ, he tells the magazine.

“Take Oman, for example. They have quite strict regulations so (access) is only for more emergency basis. You don’t just walk in there. You have to make an appointment and so on,” he explains before stressing that the message remains the same: “All our workshops are open.”

More than ever, access to spare parts is crucial for operators during a period where uptime is vital and many fleets are running with reduced teams. Stock continues to be available through the dealers and the global warehouse in Europe is manfully continuing to ensure that more obscure SKUs remain in the supply chain.

“They are facing challenges in both inbound and out-bound. In fact, our production was (effectively) shut done because we meconstructionnews.com

FERRYING FUEL Scania trucks supplied by the Swedish manufacturer’s dealer SATA have been deployed by the Royal Navy of Oman to help ferry fuel supplies.

Trucks are a part of a society’s lifeline; keeping goods and medical supplies moving”

the port of Sohar and Musandam, on the peninsula coast in the Strait of Hormuz.

Bulk cargo and oil and gas specialist DATE Transport, whose clients include Oman Oil Marketing Company (OOMCO) and Al Maha Petroleum Products Marketing Company, has been tasked with the vital role.

Wising explains that the closing of borders to contain the spread of the virus means the fuel has to be transported by sea.

“They face the challenge of delivering fuel from Oman to Musandam. Normally they could go through the UAE but trucks will get stuck at the border.”

The regional sales director adds: “Now, the trucks go on the boat from Sohar to Khasab in Musandam – offload and go back again.”

KEEPING THE FLOW GOING Bulk cargo and oil and gas specialist DATE Transport, whose clients include Oman Oil Marketing Company (OOMCO) and Al Maha Petroleum Products Marketing Company, has been tasked with the vital role.

MAY-JUNE 2020

15

INTERVIEW

PLAYING A VITAL ROLE IN KSA

ALL WORKSHOPS STAY OPEN Despite the challenge of the pandemic, all Scania Middle East affiliated workshops have remained open.

Wising has been reassured by Scania Middle East’s progress in Oman despite the disruption caused by the outbreak. He also observes that Saudi Arabia appears to be a market that has remained active where others have taken a pause.

“On one hand, they imposed stricter curfews, but some business seems to be ongoing for us.”

Given its resources and knowhow, Scania has also been able to help the Coronavirus effort in its home market as well as in this region. The company is involved in a number of initiatives to help fight the virus, including lending purchasing and logistics help to the Karolinska University Hospital in Stockholm; aiding the acquisition of protective equipment for healthcare workers working to save those suffering from COVID-19.

At the same time, trailers from Scania are being converted to mobile testing stations.

It has even sent its own employees out into the field to help with these initiatives, Wising explains.

“They help with the logistics and purchasing but employees can go into the internal website and see job ads to go and work in the hospitals. They get medical training as a nurse – or whatever – and offered the chance to take an absence of leave.”

Like Ford and General Motors in the US, and companies like JCB elsewhere in Europe, Scania has also been on the frontlines to help the national effort to ensure there is enough medical equipment out in hospitals.

He adds: “We actually have people from production helping to make the ventilators.”

16

MAY-JUNE 2020

KSA imposed stricter curfews, but some business seems to be ongoing”

Like many other company’s Scania Middle East has considered using the slow down in the market to prepare for when the market improves. Although he says the firm has not had a huge amount of extra time (“some things are adding work,” jokes Wising), it has provided a chance to catch up with some training. The main focus he says has been the chance to look towards the long-term, alhough; “it can be difficult to do when you’re sitting in different locations and not meet face-to-face.”

As we talk, we are interrupted by two young intruders curious to see what is going on on the computer screen. “These are some of the challenges we face!” Wising jests.

Reader note: Interview conducted in April, prior to lockdown easing.

Scania Trucks are playing a vital role despite the challenges in logistic operations for transporting essential commodities and performing on time deliveries in Saudi Arabia.

Its customer, Nova Water is transporting 3 million water bottles everyday across the Kingdom.

During achallenging time, Nova Water has stepped up to ensure that drinking water is readily available with the highest safety and standards at the customers’ doorstep.

Additionally, Scania trucks are also being used by Linde Gas to supply Medical gases to hospitals in major cities. Linde provides pharmaceutical and medical-grade gas products and services that enable healthcare professionals to deliver optimal therapy for patients in hospitals, clinics, care centres, emergency centres and patients’ homes.

“Thanks to GCC Olayan, our proud partners in the Kingdom of Saudi Arabia where Scania is able to contribute and support the citizens and residents of the kingdom during this critical time,” said the company in a statement.

THE NEED FOR SPEED Transporting by water proved to be a lot faster than attempting to go through the land border during the height of restrictions.

meconstructionnews.com

FEATURE

INSIGHT:

WHY ELECTRIC IS KEY FOR OUR COMMERCIAL FLEETS Samer Choucair, director, Crescent Enterprise on why fleet electrification is both feasible and profitable

W

e have been aware for decades that driving a personal car for private use contributes to pollution. However, if you manage a fleet of vehicles, the negative environmental impact is even higher. The onus lies with regulators, companies and fleet managers to mitigate emissions, and this crucial item on the environmental 18

MAY-JUNE 2020

agenda should not take a back seat to commercial growth and success; in fact, it should be considered a complementary conversation to commercial efficiency.

Rising CO2 and particulate matter (PM) emissions have brought the transportation sector under heavy pressure to reduce its environmental footprint. Transportation accounts for 24% of direct global CO2 emissions from fuel combustion, with road vehicles together accounting for nearly threequarters of transport-related CO2 emissions.

We need to become much better at managing existing fleets�

Road transport also causes around one third of all emissions of PM, fine particles that can restrict breathing and cause premature death. Overall, there were 385,000 deaths estimated worldwide due to transport-related air pollution in 2015.

As a result, we have seen renewed efforts and a rise in legislations to encourage individuals to cut down on car travel and use public transport, walk and cycle. Initiatives to encourage drivers to trade petrol and diesel-fueled cars for meconstructionnews.com

FEATURE

THE NEED FOR GOVERNMENT HELP Overhead charging is being trialled in Europe but like many other electric vehicle technology it will need both public and private resources to get off the ground.

LOOKING AND THINKING GLOBALLY FedEx accelerated the electrification of its massive delivery vehicle fleet by securing 1,000 electric vans from Chinese firm Chanje in 2018.

new electric vehicles (EVs) are also on the increase. It is easier said than done.

When it comes to reducing carbon footprints, replacing older vehicles with modern green alternatives and driving people towards e-vehicles, the road is a bumpy one, and change is not always practically feasible or financially viable.

There is no instantaneous solution.

There is little doubt that electrification of vehicles can immediately cut greenhouse gas emissions from commercial vehicles. meconstructionnews.com

Change is not always practically feasible or financially viable”

There is also no question, that these vehicles lag behind, as they face major technical hurdles to be surpassed in a bid to achieve sufficient electrification of the commercial vehicle sector, and in particular, longer distance road freight, to drive tangible results. What remains crucial is to keep in sight projected monetary savings that could help finance a gradual or wholesale greening of existing fleet.

For the 3PL and express delivery industries, there is a limited scope to reduce

the number of journeys made, nor is it feasible to trade in entire fleets of diesel and petrol vehicles for electric vehicles within a short or even medium timeframe. That being said, we are seeing great examples of long-term projected plans by industry leaders to achieve full fleet greening.

Recently, Amazon announced plans to achieve a fleet of around 100,000 electric trucks as part of the company’s participation in the Climate Pledge, to reach the Paris Agreement’s terms 10 years early. Signatories of the Climate Pledge also agree to make their businesses net zero carbon by 2040, ten years ahead of the Paris deadline of 2050. The resonating message here is that while it may not be today, that a full fleet overhaul is implemented, it should be a part of every company’s long-term plan. We need to start somewhere.

If we are to make a rapid reduction in our environmental footprint, we need to become much better at managing existing fleets. The good news is that there is plenty we can do right now to make existing fossil fuel vans and trucks more sustainable.

ION was born out of an emissions reduction initiative and a joint venture between CE-Creates, Crescent Enterprises’ internal business incubation platform and Bee’ah, the leading Sharjah-based environmental solutions company. Bee’ah was looking for ways to reduce the carbon footprint of its existing fleet of 1200 vehicles. The company discovered that through the use of route optimisation software and RFID-tagged bins, it could dramatically reduce emissions and optimise fuel consumption.

There have been similar successes elsewhere. Logistics Emissions Reduction Scheme (LERS), a UK supply chain industry initiative, claims that its members have become 13% more fuel efficient by adopting six measures and applying them to existing diesel vehicles. Some of these measures, such as keeping consistent speeds, avoiding unnecessary braking and accelerating more smoothly, are a matter of modifying driver behaviour.

Adoption of telematics and route optimisation software require moderate investments in technology. Other measures include the use of low resistance tyres, regular monitoring of tyres to ensure air pressure is at optimum levels and installation of aerodynamic devices on vehicles. With the emergence of smartphone technology, MAY-JUNE 2020

19

FEATURE

A FLEET ELECTRIFYING AT A HUGE SCALE Amazon is planing to create a fleet of around 100,000 electric trucks as part of the company’s strategy to keep with the global effort to reduce emissions.

it has become easy to track vehicle movements, optimise routes, schedule periodic maintenance and encourage the shared utilisation of vehicles.

All these measures can be applied now to existing vehicles. They achieve significant carbon and cost savings and create a breathing space for fleet managers to begin planning the transition to electric vehicles.

Unless there is regulation in place to force fleet electrification, operators would

be advised to run trials in which they would first replace up to 10% of their fleet to gauge EVs’ overall impact on operations. If there are positive results, they could move to change the whole fleet at a faster pace. At least for the next two years, smaller vehicles used for express delivery are the most likely candidates for electrification. Their shorter charging times make them easier to integrate into everyday operations and charging points tend to be more plentiful in urban locations.

The choice of electric delivery vans is increasing”

Despite a recent setback with DHL’s decision to close StreetScooter, the choice of electric delivery vans is increasing and their range continues to improve.

More and more logistics companies are adding them to their fleets, including FedEx with an order for 1000 Class 5 electric vans made by Ryder and UPS with 1000 vans from Workhorse Group.

Eventually, even the very largest trucks will be candidates for electrification.

In 2018, Daimler announced the allelectric, 18-wheel Freightliner eCascadia.

Scheduled to begin production at the end of 2021, this class-8 truck is planned to have a range of 250 miles and a battery charge capacity of 80% in 90 minutes.

Tesla has also announced its entry into the market, with plans to make two semis, with a range of 300 and 500 miles.

Although production has been pushed back to an unspecified date, Tesla is claiming buyers of the truck will earn their money back in operating savings within two years. We should soon see the Semi on the region’s roads, with Bee’ah placing an order for 50 of the vehicles straight after their official launch.

There are, naturally, barriers to the acquisition of EVs. These include a lack

ELECTRIC VEHICLES WILL SURVIVE COVID-19 Sales of electric passenger cars are expected to be the most impacted by vehicle type, but post COVID-19, the global electric vehicle (EV) and infrastructure market is projected to reach 4.18 million units by 2021 from an estimated 3.42 million units in 2020, says research analyst Markets and Markets.

While the projection for 2021 is estimated to be down by 34% as compared to preCOVID estimation, demand for electric vehicles still has a strong foundation amid favourable government policies and support through subsidies and grants, tax rebates, and other non-financial benefits in the form of carpool lane access is one of the primary factors driving the growth of the market.

20

MAY-JUNE 2020

The adoption rate of electric vehicles is increasing, and many countries across the globe are investing heavily in R&D. Countries such as Canada, France, India, the Netherlands, and France have introduced various campaigns to boost the adoption of electric vehicles.

However, because of the outbreak, the automobile industry is facing a slowdown due to the lockdown in several countries that has restricted the production of EVs, says Markets and Markets in its COVID-19 Impact on EV and EV Infrastructure Market Report.

“The operations of some crucial companies affected by COVID-19 epidemics include Nissan Motor Co., Kia Motors Corp., BMW AG, Daimler AG,

and Tesla, Inc. Most of these companies have shut down their electric vehicle production facilities and shifted their focus towards the manufacturing of personal protective equipment.

“The government stimulus packages in the future could help the EV market get through an economic crisis brought by COVID-19 by investing heavily in charging infrastructure. China is one of the countries set to make such an investment to help stimulate its automotive industry.

The Chinese government has emphasised “new infrastructure” as part of a stimulus strategy to boost its economy after the slowdown caused in part by trade tensions and coronavirus.

Thus, most governments from

affected regions have resorted to infrastructure rehabilitation as an economic stimulus method.

As the impact of COVID-19 lockdowns spread during the Q1 2020, global sales in major markets, including Europe and the US, are expected to fall significantly.

“Falling consumer demand, disruption to upstream and downstream supply chains, and government guidelines have now resulted in the suspension and curtailment of production at major automotive OEMs and battery manufacturers. European and US automakers have delayed Asian Li-ion battery shipments initially scheduled for Q2 2020 amid the growing uncertainty for automotive demand.”

meconstructionnews.com

FEATURE

TURN SAVINGS INTO EV INVESTMENT Samer Choucair says fleet managers looking to reduce their carbon footprints can implement a range of measures to the vehicles they already own and use the savings to begin their transition into EVs.

of legislation to enforce green vehicles to be used in fleets, the higher purchase cost of EVs and a lack of historical data comparing the total cost of ownership of a green fleet with an ICE fleet. Sacrifices need to be made, and these barriers can be overcome if the world is to conserve its ecosystem.

In Dubai, DEWA has solved one significant problem by spearheading the rollout of charging points. We at ION have partnered with SEWA to establish a charger network in Sharjah. Resistance to

We should soon see the Tesla Semi on the region’s roads”

the idea of EVs will, we believe, disappear with time and greater awareness.

The debate over the overall cost of sustainability measures will continue.

In the short term, the financial impact is negative as the cost of implementing green initiatives, including the purchase of EVs, is absorbed. There is, however, an economic benefit of 15 to 20% if the fleet is operated for three years or more.

In the context of EVs, legislation is vital for two reasons. It first and foremost signals the intent of regulators.

It also incentivises the first movers in the ecosystem by providing them with subsidies or discounts. Naturally, there is friction between policymakers and civil society groups regarding the stringency of green fleet legislation; however, as we become aware of the negative effects of global warming, regulators are now being embracing opportunities to make our future more sustainable. The UK government is amongst those leading the way, with plans to end the sale of new diesel and petrol cars by 2035.

Fleet managers looking to reduce their carbon footprints can implement a range of measures to the vehicles they already own. As these savings start to manifest on balance sheets, they can begin planning the long-term transition to an electric fleet with motivated vigor, and a belief that change is both feasible, and profitable, in the not so distant future.

ION is a sustainable transportation company, established in 2018 as a joint venture between CE-Creates (Crescent Enterprises) and Bee’ah.

INNOVATIVE AND COMPETITIVE BEARING SOLUTIONS FOR YOUR TRUCK AND FLEET

PERFORMS BEST WITH THE RIGHT LUBRICATION SOLUTION

HEAR MORE FROM THE SKF’S TRUSTED PARTNER IN THE MIDDLE EAST

WhatsApp: +971-54-998-1442 E-mail: export@mcb.ae www.mcb.ae MORE DELAYS FOR TESLA Tesla said last month that the launch of the all-electric Tesla Semi has been once again delayed with production and deliveries now penciled in for 2021.

meconstructionnews.com

MAY-JUNE 2020

21

OPINION

FUTURE MOBILITY: THE NEXT STEPS WE NEED TO TAKE

Jesús Sancho, managing director, ACCIONA ME on the paradigm shift that is just ‘around the corner’

M

obility has always been a gateway for development of our society but it has also brought some other impact to the environment that, over time, may have worryingly contributed to the greenhouse effect.

At the beginning of the 20th century, the appearance of the internal combustion engine followed by the global passenger car changed the landscape forever. The car was a symbol and evidence of prosperity, but it caused great impacts on people: traffic congestion, increased accident rate and a significant 22

MAY-JUNE 2020

pollution. The car has meant, since its invention, a success story but everything indicates that a paradigm shift is around the corner.

Currently, the use of the different transport modes in the cities are responsible for 40% of the urban emissions. More than half of the World’s urban population was exposed last year to pollution levels at least 2.5 times higher than the ones considered as healthy standards.

It is estimated that air pollution already causes up to 7 million deaths a year. According to the WHO, one-fourth of all estimated global deaths are linked to the environment.

This problem is exacerbated by the high population growth, especially in large cities.

Different transport modes in cities are responsible for 40% of urban emissions”

The World’s cities occupy only 3% of the land but produce 75% of the total carbon emissions.

The ever-increasing population in the cities of the future will need to meet the demand for transport and social infrastructure of a higher complexity and in accordance with the 17 Objectives for Sustainable Development of the United Nations (UN). Additional investment is required in order to build either basic or complex infrastructures that shall ensure economic development and social welfare, with special emphasis on affordable, sustainable and equitable access for all.

One of the main challenges that we shall face as a society in some already collapsed cities, meconstructionnews.com

OPINION

is solving and approaching the urban mobility in a different manner to confront the traffic congestion and high levels of air pollution.

If we come to think of it, the arrival of new technologies at the start of the 21st century has some similarities with the start of the 20th century with the appearance of the automobile.

The urban mobility sector of this century may have the new tools for another paradigm shift.

This ‘perfect storm’ originates in two main circumstances that have come together: first, the confluence of new technologies that act as a catalyst for the emergence of new business models around mobility and, second, the cultural change that is happening that produces very quickly behavioral changes in the citizens:

A NEW REVOLUTION Sancho sees similiarities with the emergence of new auto technology with those seen at the start of the 20th century.

New technologies

•

•

•

•

Appearance of the electric vehicle, which is becoming cheaper with decreasing costs of the batteries.

Big Data, data analytics tools, machine learning and artificial intelligence are essential to achieve the efficiency that new urban transport models need and that make economic sense.

Autonomous vehicle technology: It still has many challenges ahead, not only of the vehicle technology itself, but also of the deployment of the necessary communication infrastructure in the cities and of the regulation itself. We shall see this happening sooner than later.

Implementation of the 5G technology will dramatically improve connectivity and shall enable the Internet of Things (IoT).

sophisticated urban mobility technologies, a large selection of food delivery and many options as far as sharing different transportation modes, where ACCIONA is already an actor with our flourishing Moto-sharing service.

All players that make up the mobility sector are learning on the go. Solutions to citizen mobility concerns are generated at a faster rate than regulatory capacity, but there is no single formula for addressing this business model.

Governments should encourage collaboration between cities that have similar problems and should rely on the knowledge and experience that the private sector can bring.

Urban mobility is one of the main problems of large cities, and factoring the urgency in combating the climate change, allowing the decarbonisation of the economy and encouraging

According to the WHO, one-fourth of all estimated global deaths are linked to the environment”

the use of the new technologies will certainly improve the quality of life for the citizens.

In ACCIONA, we are focused in offering solutions to these problems through the provision of innovative and sustainable mobility services. This is at the core of all our businesses.

We heavily invest in de-carbonisation through the generation of 100% renewable energy and the construction and management of different solutions in infrastructure and services that mitigate the effects of climate urgency.

Our company has recently launched the Moto-sharing service as part of our sustainable electric shared mobility strategy.

In line with ACCIONA’s commitment to de-carbonization, our scooter sharing service uses the “ACCIONA Movilidad” app to provide information about the CO2 emissions avoided by using a shared scooter instead of a conventional private vehicle. More than 7,000 units are already deployed in different European cities in Spain such as Madrid, Barcelona, Sevilla, Valencia and Zaragoza but also in Italy (Milan) and Portugal (Lisbon).

Given the present situation all over the world due to the spread of the Covid-19, and as part of the ACCIONA’s commitment to the society, we have made available one million disposable hairnets to hospitals, care centers and residences throughout Spain.

These are the nets usually used with the helmet within our Moto-sharing services.

At ACCIONA, we are devoted to joining the challenges associated to the urban mobility by creating sustainable solutions that respond to the needs of the citizens and that equally invest in the future of our planet.

Cultural changes

•

•

The priorities have changed. The new normal is a permanently connected society used to depend on software and applications for the needs in their everyday life. The trend in the population is not so much to demand their own assets, but to enjoy and share them. We see a large business growth around the collaborative economy. Everywhere.

The general public has greater environmental awareness and the governments and authorities have more commitment and receptiveness to new sustainable solutions.

All these new technologies coupled with the changes in the people’s behaviour have triggered, in my opinion, the appearance of new business models. There are more meconstructionnews.com

DEPLOYING DRONES TO DO THE DIRTY WORK Acciona has said it has begun using drones during tunnel construction phases to obtain regular digital records of works. The firm says it can analyse the volume of material excavated, the consumption of inputs, execution deadlines, incidents, etc., and carry out its processing without interfering in tasks done in the workplace.

According to a statement, the technology, which can be used on tunnel projects excavated by conventional methods (explosives,

hammers or cutters), as well as on underground mining projects, can be supplemented with photographic resources to regularly monitor a project.

Tripod-based laser scanner systems are currently used, supplemented with conventional topography, to obtain digital models of the inside of tunnels under construction. However, these methods are time-consuming and offer limited versatility, which is not compatible with

the production performance of the works, the firm said.

Acciona explained that it is constantly developing applications to leverage drone technology in order to collect real time data about major transport projects, which will help its managers understand what is happening onsite.

The firm said the aerial information would enable it to monitor progress and help detect incidents before they became costly or slowed down the project.

MAY-JUNE 2020

23

WORKSHOP

WABCO BOOST IN SAUDI MARKET / TYRE WORKERS RETURN TO PLANTS / GITI HONES INTELLIGENT TYRE STRATEGY / MCB PLANS REGIONAL RESURGE

WORKSHOP

Wabco Holdings wins major contract with Saudi firm WABCO WILL EMPLOY ITS TELEMATICS SOLUTIONS TO BOOST THE EFFICIENCY AND SAFETY OF ALMAJDOUIE’S MIDDLE EAST FLEET PARTS Wabco has signed a landmark deal with Saudi-based Almajdouie Logistics Company. Wabco will employ its telematics solutions to boost the efficiency and safety of Almajdouie’s Middle East based fleet.

Wabco will equip 1,200 trucks and 1,400 trailers of Almajdouie’s firm with its telematics solutions and support services, replacing the company’s current basic

track-and-trace solution. The new technology is expected to support Almajdouie Logistics Company’s digital transformation programme, enabling it to increasingly build its business through real-time fleet management capabilities and data-driven insights, Wabco said in a statement.

Wabco stated that its Fleet Management System (FMS) will significantly increase the efficiency of both fleet and back office

DEAL RAISES STANDARDS FOR ALMAJDOUIE As operating costs, particularly for fuel, continue to rise, Almajdouie wanted more control over both fleet and cargo while simultaneously raising the efficiency of drivers and our back office to better service our customer base.

operations, cut operating costs, help meet increasingly stringent regional legal requirements and boost driver and cargo safety Commenting on the contact win, Peter Bal, business leader Fleet Solutions EMEA at Wabco, said: “We are honoured to welcome a market leader like Almajdouie as a greatly valued customer. We are confident that our solutions will boost their ambitious digitisation journey and enable them to take their highly rated customer services to the next level.”

Bal added as part of the agreement, Wabco’s advanced TX-GO 2 on-board computers will be fitted in all Almajdouie trucks. In return, this will deliver advanced fuel management capabilities, cargo and temperature monitoring, trend reporting and driver authentication and driver scoring.

Eyad Hamzah Arafah, GM at Almajdouie Logistics Heavy Lift, said: “. In today’s increasingly competitive and connected logistics market, that is no longer enough. The new solution will also enable us to further boost safety.”

BRIDGESTONE RAMPS UP AS WORKERS RETURN TYRES

Bridgestone EMIA says production has resumed in all plants located in Spain (Burgos, Bilbao and Puente San Miguel) and Russia (Ulyanovsk).

The leading tyre major said that several plants across its manufacturing network will slowly ramp up production.

The move is in response to business and customer needs in market segments – including OEM passenger tyres and the commercial sector – which have been less severely affected by the economic downturn following the global outbreak of the Coronavirus (COVID-19) pandemic.

Production facilities in Poland (Poznan and Stargard) and Hungary (Tatabanya) have remained operational at reduced capacity, but not firm says its passenger tyre plant in Bari (Italy) and retreading facility in Lanklaar (Belgium) are anticipated to restart.

INSIDE THIS MONTH’S WORKSHOP: A SPECIAL LOOK AT REBUILDING TRANSPORTATION, SAF-HOLLAND GETS GREENER, AND MORE!

24 MAY-JUNE 2020

meconstructionnews.com

WORKSHOP

MCB ‘FINALLY’ READY TO BOUNCE BACK

GITI UNVEILS ADVANZTECH INITIATIVE TYRES

Singapore-Based Giti Tire says that it has brought together its global research and development to launch a series of new components under the AdvanZtech umbrella. Giti Tire operates R&D centers in China, Indonesia, Germany, and the US, as well as a UK Tire Testing Center.

Representing close to 1,000 team members, Giti said uniting them under the AdvanZtech initiative is enabling it to utilise state of the art equipment and high technologies to create “an allencompassing platform that considers driver needs from six key perspectives”.

Leading the way is Giti Tire’s pattern noise simulation system which optimises the design of its tyres to quiet down the noise from the tyre and road interaction. This technology eliminates annoying tire vibrations by combining testing, modal and transmissibility analysis, and structural analysis, improving overall ride comfort.

Through simulation and test technology, Giti also optimises its tyre structure - fine-tuning tire stiffness, improving grip, and optimising handling response. The company’s low rolling resistance compound reduces friction between rubber molecules, which lowers energy consumption.

Computational contour deformation analyses and rolling resistance prediction technologies result in structural designs with optimised deformations. This means less heat generation, less fuel, and better protection for the environment.

Giti is actively engaged in next generation innovative tyre technologies. It says its latest smart tyre technologies help reveal hidden safety hazards opening new frontiers for improved safety and performance.

meconstructionnews.com

PARTS Mineral Circles Bearings (MCB) says its return to Automechanika Dubai this October is an opportunity to showcase its new partnership with industry-leading brand SKF and SNR. The company said in a statement that it is “finally ready to bounce back from its two-year-long hiatus from the event” after last participating at the aftermarket show in 2018.

It will use Automechanika Dubai to introduce SKF’s wheel bearing, timing, and accessory belt kits to the market: “which is very timely for the burgeoning automotive market in the region.

With SKF and Mineral Circles’ newly inked agreement, both pacesetters are set to expand their footprint specifically for the Automotive market.”

As the sole authorised distributor in the UAE, Mineral Circles Bearings described

TIMELY LAUNCH MCB said Automechanika is the perfect platform to launch its new brands.

Automechanika Dubai as the best opportunity to underline its convenience and benefits, specifically for its top European vehicle brands. Both premium brands manufacture high caliber kits are fit for leading car brands such as Nissan, Volvo, Renault, Honda, among others.

Managing director Hassanein Alwan said he believes there is a

bigger potential to penetrate a wider market audience through the collaboration with SNR and SKF. “These two brands are globally known to cover at least 98% of European vehicle-inoperations,” he explained. “This will put an end to the difficulty of the MEA region to have easy access to European brands.”

IAA AND AUTOMECHANIKA FRANKFURT BOTH OFF EVENTS

The world’s leading event for transport, logistics and mobility has been cancelled and will not return until 2022.

The IAA Commercial Vehicles show was dues to take place during its usual slot of September but organisers said the health risks of the Covid-19 pandemic and the measures taken to contain it have “fundamentally

changed the backdrop” for the event.

“The Covid-19 pandemic is having an unprecedented impact on business in the sector and also the IAA,” said the IAA’s organisers, the German Association of the Automotive Industry (VDA) in a statement.

“Many countries have travel restrictions that will remain in force for several months to come. Large

RESPONDING TO DEMAND The organisers of Automechanika said that both safety concerns and demand from customers led to its postponement.

events have been prohibited over the coming months in nearly all European countries. Given the situation with the corona pandemic, face-to-face meetings can no longer be held at a trade fair and particularly at the IAA.” Automechanika Frankfurt has also been postponed until 14 to 18 September 2021. Show organisers Messe Frankfurt said in its own statement that it “simply would not have been possible” for many of the exhibitors and visitors from over 180 countries to take part in the event under the conditions currently prevailing or those expected at that time.

The event is expected to resume its biennial rotation.

“With waves of the pandemic moving around the globe and many countries not expecting it to peak until the summer, I am certain that the decision to postpone is the right one,” said Detlef Braun, member of the Executive Board of Messe Frankfurt.

MAY-JUNE 2020 25

FEATURE

TRANSPORT FOCUS:

FINDING A NEW NORMAL

T

Atkins Acuity looks at how we can keep the world moving during and after COVID-19

he World Health Organisation (WHO) declared COVID-19 an international health emergency on 30th January 2020 and a global pandemic on 11th March 2020. Compared to previous global pandemics such as SARS or Ebola, the current COVID-19 Crisis is a global event without precedent, possibly in a generation, and exerts a number of specific impacts over and above conventional 26

MAY-JUNE 2020

disaster management and recovery.

The crisis is as much an economic crash as it is a public health emergency, now exceeding the 2008 Financial Crisis.

In the Gulf Consultative (GCC) Council region, major lockdowns on personal and business activity have been compounded by record lows in oil price, on which economic activity and Government budgets are based.

Right now, as we potentially approach a pause in what the International Monetary Fund has called the “Great Lockdown,” the

This is a perfect storm of circumstances”

Crisis presents immediate logistical and operational challenges requiring urgent mitigation, with containing the number of COVID-19 cases and deaths being the top priority ahead of economic recovery.

According to The National Cooperative Highway Research Program (NCHRP), 80% of these responses are common to all crisis categories, but 20% are unique to pandemic and local circumstances.

Although less severe than being seen in Europe or the USA, the human cost of the meconstructionnews.com

FEATURE

Pandemic in the GCC is real and tangible.

Over time, the balance and trade-offs between policy objectives is likely to change with the current hard lockdowns giving way to a careful restarting of economic and social activity. This has is already commencing is some parts of the GCC and is expected to continue into June and July, ahead of a restarting of international and regional movement across borders later in the year.

The transport sector, and the public and private organisations within it, is impacted meconstructionnews.com

by COVID-19 as much as others. However, it has a vital role in keeping essential goods and workers moving; it will have a vital role in the recovery too, especially if Governments prioritise infrastructure investment as an economic stimulus and a means of re-invigorating the private sector.

As well as challenges, the Crisis presents some positive opportunities. We should not lose sight of what could be done better or differently and how our postCOVID-19 World might benefit as a result.

When people, business and communities recover from COVID-19, we are unlikely to go back to normal – there will be medium- and long-term implications and, whilst there are pressing immediate needs, we should start thinking about those now. There is also a need to be better prepared for future pandemics.

Globally, COVID-19 has taken a massive toll in terms of confirmed cases and reported deaths. The picture in the GCC has been comparatively modest compared to Europe, the USA & China, but cases have accelerated dramatically since March, rising to a peak of infections across the region.

Lockdowns have been imposed in all countries (e.g. National Sanitation Program in UAE, 24-hour curfews in Saudi Arabia), with strong restrictions on personal or work travel except for essential purposes.

There has been a near cessation of international flights, with the travel and tourism sector now shutdown.

Economic impacts have been exacerbated by record low oil prices. Despite OPEC production cuts being agreed, prices have been trading at below half the level in January and continue to be volatile.

Central banks, together with immigration authorities, have introduced various economic stimulus packages, support and relief for people and business, but these will take time to kick in and the IMF’ s World Economic Outlook has already forecast sharp declines in growth for 2020, both globally and for the GCC. This is a perfect storm of circumstances.

Recovery from the health and economic emergency may commence in the second half of 2020. This is dependent on many factors which remain uncertain, not least the chance of further waves of infection.

The effects of COVID-19 will be felt well into 2021, possibly beyond.

There been sharp and substantial falls in demand for movement as a result of stay

The effects of COVID-19 will be felt well into 2021�

home campaigns, curfews, cessation of tourism, business contraction and exodus of expat workers in all countries of the GCC. International and domestic aviation is nearly completely suspended with most national airlines grounded and airports at a standstill, except for air cargo and a small number of repatriation flights. General traffic is estimated to have fallen by around four-fifths dependent on area, whilst international benchmarking suggests road freight may have halved. Public transport

CREATING POLICIES THAT PROTECT PASSENGERS Governments are going to need to assess the overall demand for travel, and how and in what form it will recover, together with associated issues such as transport revenues, congestion and clean air. They should also safeguard the continued viability of mass transit as the preferred mobility solution for large cities.

The way people work is chaning. Office and home working practices, have implications for commuting and business travel, as well as work-life balance, lifestyle choices, how organisations are run and change management.

Supply chain management, with freight and logistics should be given priority over movement of people.

Technology and automation, with COVID-19 accelerating the agenda for digital transformation, smart mobility management, autonomous vehicles, drones and the next generation of Intelligent Transport Systems. Emergency planning, business continuity, resilience and risk management will receive greater focus, but be done and certified properly, replacing frameworks which have proved ineffective in the current crisis.

MAY-JUNE 2020

27

FEATURE

has been suspended in many locations, and, where services are still running, seeing falls in patronage in line with road traffic. For the latter: there are limitations on occupancy to provide social distancing; frontline staff are being provided with masks, gloves and sanitisers against infection; and there has been a stepping-up in cleaning and sanitation of public areas and facilities.

New regulations (and penalties) have been introduced to minimise trip-making and enforce social distancing. At the same time, some regulations have been eased, such as free public parking, suspension of road tolls and support for home deliveries and enabling movement of health supplies.

While there has been slowdown in construction and maintenance projects (e.g. Dubai’s Route 2020, Riyadh Metro) not all impacts are negative. Air quality has improved, congestion & road traffic accidents are likely to have fallen; the question is how such benefits can be retained as demand rises as the lockdowns ease.

Public and private entities across the GCC have closed offices and implemented remote working. For example, they are issuing laptops and implementing ICT to allow employees to communicate.

Managers are having to coordinate their teams, set tasks, meet deadlines & achieve performance KPIs virtually.

In transportation, management of frontline staff poses special challenges, in terms of absenteeism, reduced capacity, occupational health and safety and protecting key workers from contracting or passing on disease. Non-essential tasks are being wound down or continuing only with new safeguarding procedures in place.

The role and mandate of transport agencies has been strengthened, operationally being regarded as an essential service alongside health agencies, police, civil defense and supply chain management. This raises a need for enhanced organisational leadership and joint working to common goals across agencies.

Since February, we have been monitoring the impacts of COVID-19 across the GCC, as well as globally.

We are gathering evidence through our own worldwide offices and via our participation in global road and transport sector groupings. We are collating, and influencing, the practices and procedures which are emerging, examining what the key issues are, what seems to work at this 28

MAY-JUNE 2020

A GLOBAL PROBLEM FOR TRANSPORT From our sources, ten issues have emerged as the most pressing for transport organisations around the World and are listed below. We continue to expand and update this list continually whilst the Crisis continues, looking at immediate pressures as well as the longer-term challenges and opportunities: 1. Tracking changes in demand for transport now and into the recovery period, together with associated implications (e.g. falls in toll revenues or public transport fares, road traffic accidents); 2. Required changes to the role, mandate and powers of transport agencies in delivering essential services, sometimes under “emergency powers” and relationships and working arrangements with other agencies (such as the police, civil defense and health agencies); 3. Keeping key road networks and facilities open, accessible and operational, and regulating and maintaining the movement of essential goods (such as food and health supplies) and workers;

4. Ensuring the health & safety of road and transport workers, especially those in operational roles; 5. Connecting, managing & maintaining effectiveness of officebased staff working from home; 6. Continuing, postponing, or bringing forward infrastructure construction and maintenance activities; 7. Personal mobility management and contact tracing (including use of smart/Bluetooth applications); 8. Relations of public agencies with the private sector supply chain, including contract management and variation, maintaining project schedules and outputs, and continued support for SMEs; 9. Cybersecurity, including an increase in hacking and other threats, with new remote working arrangements especially vulnerable until protections are put in place; 10. Financial sustainability, at a time when assets need to be maintained and some operational costs have risen, but revenues have all but dried up.

time and what remains problematic. The situation is fast-moving; it is still messy, but some clear lessons are already emerging.

Across the World, since the COVID-19 crisis took hold at the end of January 2020, public transport systems have seen sharp falls in patronage. In some cases, services have been suspended entirely or had the level of service sharply reduced. Elsewhere, services have continued to run, but with the general public locked down or subject to strong travel advisories, ridership have become focused on essential workers and those carrying out unavoidable personal business.

Data is still being complied, but in London, buses and trains are carrying only around 20 - 30% of normal demand.

Equivalent reductions have been seen in New York, Paris, Singapore and other global cities, whilst in Dubai , the first metro in the GCC was suspended for a period as the National Sanitisation Programme was extended to 24 hours a day, with residents only allowed to leave their homes with an online Move Permit issued by the Police.

Ridership has become more focused on key workers, such as healthcare professionals and auxiliaries, essential operational staff and those working in supply chain activities.

Where still running, public transport faces a number of operational challenges: • Frontline staff (themselves reduced by increased sickness and absenteeism) must be equipped with appropriate personal protection, such as masks and gloves, and in some cases protected by screens; • Surfaces in stations and vehicles must be regularly sanitised, with many systems subject to a comprehensive deep-clean; • The need to maintain social distancing, requires passenger access to vehicles to be regulated, numbers to be maintained well below normal peak capacities and front doors, seats or standing areas to be closed off; and appropriate signage and passenger guidelines to be installed.

• Cash payment presents a high risk of transmission of infection, driving a shift towards electronic or cashless payment with minimal interaction between employees and passengers.

It seems likely that at least some of these measures will be retained as the current period of general lockdowns comes to an end and public movement is slowly reactivated with precautions in place to avoid a resurgence of infections. meconstructionnews.com

FEATURE

Looking into the medium-term, COVID-19 raises multiple issues for public transport. Patronage is unlikely to recover for many months, due to economic recession and as passengers continue to feel anxiety around the health risks of crowded carriages and vehicles. This may sharply affect the financial performance of transit authorities and operating companies and undermine the business case for investment in new or improved services. The design and operational standards of infrastructure, vehicles and equipment is also likely to undergo review, not least to be more prepared for any future pandemic or equivalent threat.

This will require a focus on credible scenario planning, demand forecasting and associated economic and financial analysis.

We are unlikely to go back to normal – there will be mediumand longterm implications”

Yet such work will be essential to ensure the future viability of public transport, without which private car ownership will increase and urban traffic and congestion problems escalate as people seek personal protection and isolation rather than mass transit.

Right now, we are in the midst of the Crisis. In the space of six weeks, our world has been turned upside down. It will take all our time and attention for the foreseeable future just to get through it.

We will, however, prevail. This too will pass, and we will emerge stronger and more resilient afterwards.

There are various scenarios for the duration of the pandemic, how it will end, and timing and form of the recovery.

Working out how these scenarios will play out in different parts of the World,

and via connectivity within and between regions, is challenging. We will need to recognise, accept and manage uncertainty.

COVID-19 is unlikely to vanish as quickly as it arrived; there may be several months ahead where we need to manage residual infectivity as the economy, and the transport system, restarts. After this current wave of global infection, a second or even a third wave cannot yet be ruled out. We will need robust, yet practical, processes, procedures and technologies to be ready and be able to respond effectively.

It also seems inevitable that some of the impacts of COVID-19 will be permanent and transformational. A “new normal” will emerge. This could be positive as well as negative, but how the future shapes up depend on how we approach the task.

SOME LONGER-TERM CHALLENGES AND OPPORTUNITIES BEYOND COVID-19 Challenges

Opportunities

Falls in demand for transport mean reductions in operator and transport authority revenue and financial performance

Transport and logistics recognised as an essential service

Question over whether mass transit faces and “existential” threat and struggle to retain ridership

There have been major environmental benefits (e.g. air quality, noise, carbon) – how can these be maintained?

Potential for increased car purchase and use due to health concerns over public and shared transport

Likewise, road traffic accidents and casualties have decreased dramatically, should be maintained at low levels

Some business continuity plans, and processes, have been found wanting and must be re-written

WFH has gone better than expected for many organisations and will inform future management practices, office design as well as individual lifestyle choices and commuting patterns

Short-term business performance will be painful – jobs will be lost and not all transport entities will survive

Some transport focus areas will grow – Business resilience (done properly), digital services, sustainability, supply chain management, automation, self-driving transport

Medium-term funding of capital infrastructure projects may become limited and harder to find

Travel Demand Management – Why did we travel so much?

Public agencies have already cut their budgets and may seek to pass this onto suppliers in project cancellations, postponements and contractual savings

Capital projects & public expenditure will continue and may be treated as economic stimulus – the discipline of strong prioritisation and budget control should continue

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MAY-JUNE 2020

29

FEATURE

SAF IS FEELING GREEN SAF-HOLLAND on how it is helping transportation be sustainable

S

AF-HOLLAND tells T&FME that its latest annual sustainability report is its widest-ranging yet. The firm says the 2019 Sustainability Report shows how the company is contributing to a more sustainable transport industry and which activities are already showing results. The report is available now in a reader-friendly, interactive PDF format and “for the first time includes all production sites worldwide, providing a thorough look at product innovations, supply chains, CO2 management as well as environmental and climate protection.”

All 24 production sites of the supplier for commercial vehicle parts in the four 30 MAY-JUNE 2020

regions EMEA, Americas, APAC and China all feature and Alexander Geis, CEO of SAF-HOLLAND commented that, “this highlights the global alignment of our management approach to sustainability in our business.”

According to Geis, sociopolitical discussions about sustainability are an important factor which has influenced the actions of the supplier for commercial vehicle parts in 2019. He added that company is evolving to meet changes in regulations and the promise of data-driven technology.

Recording and analysis of the environmental impact at all sites now allows the company to provide complete data, for example on the energy consumption

Product innovations which reduce weight allow us to save fuel and reduce greenhouse gas emissions”

of individual factories. On this basis, SAF-HOLLAND says it will be able to identify hot spots at the different levels of the product life cycle in the future and take targeted action, such as lowering the emission of greenhouse gases. The medium-term objective is a climate strategy which systematically identifies the requirements of climate change in corporate risk management while using these as new business opportunities.

“We are convinced we will contribute significantly to a more sustainable transport industry,” said CEO Alexander Geis. “We put our focus on lightweight construction, durable quality products, date-driven fleet management and electrified drive axles.” meconstructionnews.com

FEATURE

To examine and improve all environmental influences from a complete axle unit, for example, SAF-HOLLAND generated a comprehensive life cycle assessment for a Trio axle unit and examined different usage scenarios. The phase of product use during driving makes up the largest part of the life cycle. The crucial parameter here is fuel consumption.

“Product innovations which reduce weight or bearing friction allow us to save fuel and effectively reduce greenhouse gas emissions. We have been working on this as a priority for several years and will continue this focus in our development work in the future,” explained the SAF-HOLLAND CEO. The axle specialist sees extended opportunities in the commercial vehicle market for its products and systems which are under continuous further development with regard to weight reduction and durability.

The SAF INTRADISC plus INTEGRAL premium axle, for example, has been available in a lighter version since 2019, with a weight reduction of eight kilogrammes. The SAF TRAKe and SAF TRAKr electric trailer axles are another successful example from the SAF-HOLLAND range: They use the energy gained from regenerative braking to charge batteries or run electrical equipment.

SAF TIRE PILOT meanwhile is a technical solution for lowering CO2 emissions: The tyre-inflating system keeps tyre pressure constant, even with puncture damage, reducing road load and therefore fuel consumption.

It also makes a spare tyre superfluous, which saves up to 160 kilogrammes.

Digitalisation solutions also support fuel efficiency: In the SMART STEEL concept, SAF-HOLLAND intelligently links mechanical and digital components, for example in tyre pressure management.

The TrailerMaster system additionally supplies fleet managers with useful operating data in real time, which can be used for optimum planning of operating periods or maintenance intervals of the trailers.

One of the key messages from the report is that environmental responsibility does not stop at the factory gates.

In 2019, SAF-HOLLAND thoroughly examined the topic of sustainability in the supply chain. The company considers compliance with this standard as an important added-value factor. Permanent monitoring of business processes also meconstructionnews.com

TRYING TO GET LIGHTER Geis says n 2019, the company is concentrating on lightweight construction, durable quality products, datedriven fleet management and electrified drive axles.

standards. To further raise awareness among auditors and purchasers and to derive relevant topics in individual regions, SAFHOLLAND has added sustainability criteria to the self-certification and communicates its updated Code of Conduct to all suppliers. The guideline for value-based and legally compliant conduct was first released in 2013 and was comprehensively revised and updated in 2019.

Governments should encourage collaboration between cities that have similar problems.

Taking on COVID-19

TAKING A LOOK AT THE CHAIN SAF-HOLLAND reviewed sustainability in the supply chain. It considers compliance with this standard as an important ‘added-value’ factor.

HOW SAF-HOLLAND HAS CHANGED FOR THE CORONAVIRUS SAF-HOLLAND has taken wide-ranging measures globally to counter the spread of the coronavirus.

These include the implementation of a Global Emergency Response Team which advises the Group Management Board on the current situation, prepares and coordinates the materials needed for decisions and monitors communicative and operative measures.

In this context, travel rules and a provision for mobile working were decided at an early stage and extensive measures to ensure social distancing implemented.

allows risks to be identified in the long term, evaluated and eventually minimised.

Consequently, SAF-HOLLAND can base storage concepts or delivery routes on potential climate change hazards, for example extreme weather events such as heat waves or flooding. The same applies to the supply chains and own production sites.

All suppliers have to undergo an audit process to qualify as a subcontractor for SAFHOLLAND. They receive a questionnaire for self-certification, for example on issues of environmental protection or human rights.

Current audits - conducted throughout the Group in 2019 for 56 suppliers of production materials - have shown that all audited partners meet the required

We are convinced we will contribute significantly to a more sustainable transport industry”

After a first quarter that developed generally as planned, the SAF-HOLLAND Group has had to adjust production in its global production network site specific in response to the global spread of the COVID-19 pandemic, taking into account the respective requirements.

Two German plants in Bessenbach and Singen as well as the production and assembly plants in Turkey, Italy, Brazil, India and South Africa as well as some sales companies all had to take on measures ranging from introduction of partial short time work in Germany to temporary site closures – “largely by official order”.

The company says the duration and extent of the production cutbacks will be adjusted flexibly to the status of the supply chains and the sales markets.

Despite this, both service and the supply of spare parts remains guaranteed without restriction and customers of SAF-HOLLAND can be supplied with spare parts at any time.

The company formally opened a new plant in the Chinese province of Yangzhou last November but says that production there has generally returned to normal with the first deliveries to customers have taken place.

“Our top priority is to protect the health of our workforce, keep our supply chain as intact as possible and to minimize the impact of the crisis on our customers,” says Geis. “We have initiated all the measures needed for a flexible adjustment of the production capacities and for an internal COVID-19 emergency response. We will react immediately and flexibly to future developments. It makes me happy to see how intensive the dialogue is between our customers and business partners, but also within the organisation, to master this challenging time together.”

MAY-JUNE 2020 31

PARTING SHOT

TEST AT YOUR LEISURE

P

Peugeot starts delivering cars to UAE drivers to test at home

eugeot cars can now be brought directly to an interested customer’s home address after the UAE began to advise people to stay at home and exercise social distancing during the COVID-19 outbreak.

Peugeot says its Valet Test Drive and Service programme will help UAE drivers to experience the brand’s models from the comfort and safety of their own home.

According to Peugeot, showrooms across the UAE have taken measures to protect customers and employees alike, starting valet test drive and remote maintenance services.

“The programme aims to bring a whole new experience to customers from purchasing their new car to servicing their current

model,” said the firm in a statement.

A dedicated website uae.peugeot.com/ valet-test-drive has been launched which provides information about the car they are interested in and book a Valet Test Drive.

A sales executive will then contact the customer and go over the details of the model as well as location and time where they would like to experience the car, the company explained.

Cars are thoroughly sanitised ahead of delivery with in-depth tours of the car adhering to strict precautions to maintain social distancing and hygiene standards.

If the customer is happy with the demonstration, a personalised letter is sent to the them with the price breakdown to finalise financial proceedings, before the car is

registered and delivered to the new owner.

“It is difficult for everyone right now, however we are always determined to keep our customers well-served and safe, whether that be while buying the car or after the purchase has been done,” said Rakesh Nair, managing director, Groupe PSA in the GCC. “The idea is to improve the process and customise car ownership, not only for current times, but for the future as well.”

Customers in Dubai and the Northern Emirates, where the brand is represented by Swaidan Trading, can also access the Valet Service Program via uae.peugeot.com/services/valet-service and have their cars serviced at their own home.

Cars are then taken to a service facility and returned to the customer having been fully sanitised.

NEXT ISSUE: T&FME TALKS TO THE INDUSTRY TO FIND OUT THERE PLANS FOR A POST-COVID-19 FUTURE AND MUCH MORE!

32 MAY-JUNE 2020

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sustainability can’t be bought It can be borrowed - from future generations - or it can be earned from each and every aspect of your operation through a consistently focused and forward thinking mindset. That mindset is a vital part of the Scania DNA - and we’d like to pass it on to you.

For more information about our new generation trucks and services, please visit scania.com/ae