Truck&Fleet ME March 2021 by CPI Trade Media

VEHICLES/ TECH / TRANSPORTATION/LOGISTICS

O84/MARCH 2O21

MIDDLE EAST

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

T S E U Q C C G ’ S CK

! S E U N I T N O C

UD T RU

is t a h w n o a e dn H d a r u o M ve: i s u l c x E ese E n a M p a J T&F e h t ss of e c c u s e h t driving g io n e r e h t n i d bran

0 5 1 F W E N TS A LL PICK- UP GE ’S TH E PEO PL E W E R BO OS T O P ID R B Y AH

Date

Venue

27 May

Radisson RED

RADISSON RED / DUBAI / UAE

The future of fleet in the GCC and the route to a sustainable industry 27 May 2021

About the

T&F Conference

More than ever, fleet operations must control their costs and remain competitive in a highly dynamic market. Those that will succeed will be those that can be agile and open to new ideas.

Are you ready for the new normal? The second edition of our flagship conferences will continue to help fleets in the UAE run leaner, safer, more efficiently, while making the most of the new normal.

After a successful inaugural event and a turbulent 12 months, the demands on fleets to be key players during the pandemic and the rebuilding to follow have never been greater. But this is also an exciting time where opportunities such as e-commerce, last mile delivery services and digitalisation can take an operation to another level.

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This event presents you with an opportunity to connect with industry decision makers and influencers. There are several ways to sponsor, from interactive live polls to session background branding, and from lead generation campaigns to presentations.

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Stephen White | +44 7541244377 stephen.white@cpitrademedia.com

Raz Islam | +971 4 375 5471 raz.islam@cpitrademedia.com

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Thank you to all our amazing partners and sponsors for your support.

CONTENTS

CONTENTS INTERVIEW

12/ UD IS STILL ON THE UP Exclusive insight from UD Trucks’ Mourad Hedna on why the brand is going from strength to strength.

ALSO THIS ISSUE … NETWORK

06 / NEWS FROM THE MONTH

Big deals for both Scania and Ford Trucks as Al Faris moves into Iraq. LAUNCHES

10 / IT’S PICKING UP This month’s launches includes Ford’s F-150 and Chevrolet’s Bolt EUV. FEATURE

16 / ELECTRIC JAG T&FME’s coverage of Thierry Boloré’s electric vision for Land Rover and Jaguar. FLEET

20 / MAKING A DIFFERENCE Sébastien Chauvin, CEO of Veolia Middle East considers what it takes for a green recovery. MARKET ANALYSIS

26 / AEMLI 2021 The UAE and KSA emerge even stronger in the annual Agility Emerging Markets Logistics Index despite the challenge of COVID-19. TECHNOLOGY

30 / MADE IN THE GCC Is the COVID-19 crisis a chance to rethink manufacturing and assembly in the GCC? PARTING SHOT

32 / GOING THE RIGHT WAY Skoda heads into the drivers heading the wrong way with Bosch.

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MARCH 2021 01

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 EDITOR STEPHEN WHITE stephen.white@cpitrademedia.com +44 7541 244 377

IT’S TIME TO GET REAL PEOPLE As many readers will be aware, this year’s Truck and Fleet Conference was due to take place this month, but with the Coronavirus still proving a trickier negotiator than Nancy Pelosi we now have a new COVIDsecure date of the 27th May 2021. The first conference came just before a turbulent 12 months where the demands on fleets were never greater. More firms than ever found have themselves elevated to the importance of key workers and services during the pandemic – but not necessarily with the support that, say, an ambulance or fire service operation may take for granted. With the rebuilding process hopefully now in full-swing, the main focus on the conference will remain helping fleets in the UAE and the wider region to run leaner, safer, more efficiently, while making the most of the new normal. I really do think this is also an exciting time for fleets where opportunities such as e-commerce, last mile delivery services and digitalisation can take an operation to another level. More than ever, fleet operations must control their costs and remain competitive in a highly dynamic market. And as I’ve written on the event’s dedicated website, those that will succeed will be those that can be agile and open to new ideas.

Ultimately, only fleets armed with up-to-date market information and a deep understanding of the cutting-edge technology and services available to them will have everything they need to be successful. This year’s one-day Truck & Fleet Conference will include a unique blend of insight from world’s leading vehicle-makers, thought leaders from the regional Truck & Fleet industry, and a raft of technical and solutions experts serving the region. While the event will be stacked full of industry roundtables, on-stage interviews and showcases, the event is going to provide a platform for delegates to see and experience world-class vehicles through the new truck walk-round sessions and post-event test drives. And it is this part of the event that I hope really shows the power of being able to host a physical event over the webinars and Zoom sessions most of us have participated in since the start of last year. So, PSA (public service announcement) time, look for calls on the Truck and Fleet website and your inbox (or drop me a line) to make sure you have your registration confirmed for walkrounds and test drive bookings in March and April ahead of the event. After all, there is nothing better than the real thing.

DEPUTY EDITOR PAUL GODFREY paul.godfrey@cpitrademedia.com ADVERTISING SALES MANAGER BRIAN FERNANDES brian.fernandes@cpitrademedia.com +971 4 375 5479 DESIGN ART DIRECTOR SIMON COBON simon.cobon@cpitrademedia.com DESIGNER PERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com PHOTOGRAPHY MAKSYM PORIECHKIN maksym.poriechkin@cpitrademedia.com CIRCULATION & PRODUCTION PRODUCTION MANAGER VIPIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 DISTRIBUTION MANAGER PHINSON MATHEW GEORGE phinson.george@cpitrademedia.com +971 4 375 5476 WEB DEVELOPMENT SADIQ SIDDIQUI ABDUL BAEIS FINANCE ACCOUNTS SHIYAS KAREEM shiyas.kareem@cpitrademedia.com +971 4 375 5474 CREDIT CONTROL EXECUTIVE CAMERON CARDOZO cameron.cardozo@cpitrademedia.com +971 4 375 5499 FOUNDER DOMINIC DE SOUSA (1959-2015)

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

STEPHEN WHITE EDITOR, TRUCK&FLEET ME STEPHEN.WHITE@CPITRADEMEDIA.COM 02 MARCH 2021

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NETWORK

MOST POPULAR

READERS’ COMMENTS

FEATURED

CONSTRUCTION

INDUSTRY TALK: TALENT AND

TRSDC announces ‘Coral Bloom’ plan for main hub island at destination

GREEN TECHNOLOGY TOP INDUSTRY’S 2021 WISH-LIST

I think if there is one thing these guys are all sharing is that the industry has to be realistic about how the year is going to pan out. I am sure GlobalData has done CONSTRUCTION

a thorough job in terms

Select Group launches latest project in Business Bay

of how the construction market in the region is reacting to the Covid-19 crisis but I would argue that

ANALYSIS: ALEC identifies key trends for the construction sector in 2021

the writing was on the wall for our mega-projects in the region going back 18 months

CONSULTANT

to 2 two years – possibly

Phase One of Sa’ada development in Bahrain now open says EMPC

longer. If you look at the big projects that are underway in Saudi Arabia, for instance, you can see that even they are having to balance out ‘making a statement’ with making a development sustainable. And as painful as it may be in the short-

CONSULTANT

term that has to be a good

Intertek starts fire testing and certification services for Saudi building materials sector

thing going forwards. I firmly believe that the onus is now on the construction industry to prove it can be greener and is also willing to invest in its talent. Let’s make sure we also pack our brains as we find our

CONSTRUCTION

India pavilion at Expo 2020 Dubai to be complete by March 31

04 MARCH 2021

VIDEO: How BIM is at the heart of Amana’s award-winning achievements

feet again in the recovery! Name withheld by request

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NETWORK

AL MARIAH MAKES FLEET BIOSAFE / IMDAAD AND FORD STRIKE DEAL UD DEFIES COVID-19 GLOOM / FARNEK LAUNCHES ITS OWN FMS

NETWORK Al Mariah GT buys 29 ‘biosafe’ Scania Marcopolo buses NEW BIOSAFE FEATURES MAKE IT THE SAFEST AND GREENEST COACH FLEET IN THE UAE FLEET Al Mariah General Transport has expanded its Abu Dhabi fleet with the purchase of 29 Scania Marcopolo luxury buses from Bin Brook Motors. All unit engines are rated at Euro 6 bringing them in line with the greenest fuel options available in the UAE, said the Scania importer, adding that, by opting for BioSafe buses, the award-winning operator is also setting “another standard for the executive staff transport at the time of pandemic”. According to Bin Brook, these are the first buses of their type in

the UAE and have been fitted with integrated sanitising points, driver protection shield, disinfection of the air and the surfaces inside the toilet by means of UV-C and, “many more, to be benchmarked as the most safest and most environment friendly coach fleet in the country.” “The story starts from first quarter of the year, when we won a prestigious project for the Executive Staff’s transportation in the Western Region of Abu Dhabi emirate,” said Ahmed Al Naggar, group managing director, Al Mariah General Transport. “Bin Brook’s Sales & After

Sales team, have been actively participating in the discussion since the beginning, providing all technical and commercial solutions, as a reliable partner. Our experience together was more than a decade old and we complimented each other for a successful execution of the project.” Following delivery in December, the buses entered into operation in the New Year. Al Mariah General Transport is now the biggest fleet owner of Scania coaches in the country. “The challenges were many, which were inevitable due to the

outbreak of Covid-19 pandemic, immediately after the order was confirmed,” said Ayman Hafez, general manager, Bin Brook Motors. “Our principals, both Scania and Marcopolo were not exempted from the after effects. Despite all disruptions, with the great efforts from all stake holders, we managed to bring the buses to Abu Dhabi on time before the scheduled delivery.” Mansur Ali, sales manager, Bin Brook Motors added: “The BioSafe concept was introduced during the production time at Marcopolo and luckily we could incorporate it.”

MARKETPLACE-E SAYS VEHICLE AUCTIONS HELPED IT TO A 28% INCREASE IN BIDDER ACTIVITY IN 2020 FROM BUYERS ACROSS THE MEA REGION

06 MARCH 2021

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NETWORK

UD TRUCKS PROMISES A ‘BETTER LIFE’ AFTER GROWTH DEFIES COVID GLOOM

IMDAAD TAKES DELIVERY OF FORD TRUCKS VEHICLES FROM AL TAYER MOTORS FLEET

Dubai-based integrated facilities management company, Imdaad, has taken delivery of Ford Trucks 3542 series vehicles from the truck maker’s official UAE importerdealer Al Tayer Motors, for its operations across the UAE. The trucks are expected to “enhance operational efficiencies of physical assets” at Imdaad and to “bolster their waste management operations across the UAE”, according to a statement by Ford Trucks. The handover of the first Ford Truck unit to be inducted into Imdaad’s fleet took place at the company’s Farz materials recovery facility in Dubai in the presence of senior members of the management teams of Al Tayer Motors, Ford Trucks and Imdaad. Ashly Alex, head of business, Environmental Solutions, Imdaad, said: “In keeping with Imdaad’s commitment to creating value for our clients and promoting sustainable operations, we are in constant pursuit of new technologies, tools, and equipment. In the Ford Trucks 3542 series, we have found a fuel-efficient vehicle with a competitive cost of ownership complemented by an excellent service package provided by Al Tayer Motors. We are pleased to add these vehicles to our fleet to enhance our service delivery.” According to Ford Trucks, the 3542 series offers an economical advantage with reduced maintenance costs. Service periods extended up to 40,000km/800hours allow customers to have competitive maintenance advantages across many industry sectors. meconstructionnews.com

TRUCKS UD Trucks enjoyed a successful 2020 across the Middle East despite an ongoing “challenging business environment” attributed to the pandemic crisis. During a media briefing last week in Dubai, the Japanese commercial vehicle brand said it had improved its market share in the majority of its regional markets, “while also registering increased sales in many of the countries.” Total sales across the year rose by six percent versus 2019, in a market that experienced an overall decrease, said the Volvo Trucks-owned firm. While UD Trucks described 2020 as a transitional year in the Saudi market, the late2019 switch to Zahid Tractor in Saudi Arabia helped the Quester and Croner manufacturer record a doubling of sales in the Kingdom. In statement UD Trucks said that there was a focus on raising customer service standards and support to the highest levels in 2020, “reflecting UD Trucks’ ambitions and Zahid Tractor’s longstanding reputation as a

customer-centric organisation. The new partnership was marked by a series of celebratory launch events in Jeddah, Dammam and Riyadh”. Sales also grew by 14 percent in Qatar. The market had been a major focus for UD Trucks prior to the imposing of trade restrictions on the country in 2017; suggesting the brand is well-positioned with the easing of relations with its GCC partners. UD Trucks also revealed that the brand maintained stable sales in other key regional markets, including the UAE, Oman, Bahrain and Ethiopia. On the services side, UD Trucks “shifted its focus to take measures” during the pandemic outbreak with warranty terms extended for customers whose contracts expired within the lockdown period. This alleviated any concerns they may have had regarding vehicle maintenance and repair needs during these challenging times, said the firm. It added that its positive performance was built on the company’s continued, comprehensive and consistent strategy for growth, “which

is based on customer focus and satisfaction, a strong partnership with its regional partners and employees’ engagement.” “2020 was a difficult year across all market segments with many challenges and uncertainties. Thanks to our customers’ trust and our partners and employees’ engagement, the solid performances we recorded have given us a lot of confidence and motivation to continue our sustainable growth journey,” said Mourad Hedna, president, UD Trucks MEENA. “I would like to thank all my team at UD Trucks MEENA and all our partners in the region for their efforts, dedication and hard work in prioritising our customers’ needs and making 2020 another successful year, despite all the complications.” With the transport and automotive sectors in the region progressing online to compensate for disruptionn in the market, UD Trucks revealed it had implemented its own “digital approach to stay connected and keep its partners informed of the latest news and announcements.”

MARCH 2021 07

NETWORK

AGILITY POURS MONEY INTO SUSTAINABLE TECH VC LOGISTICS

Agility has invested $35 million in Queen’s Gambit Growth Capital, a blank-check company that will target businesses offering sustainable solutions in clean energy, healthcare, financial technology, industrials, mobility and emerging technology. In a statement, the logistics powerhouse explained that the Queen’s Gambit’s all-female management team is led by CEO Victoria Grace, a New York-based venture capitalist, and supported by an all-female Board with strategic networks and diverse industry experience.

“Agility’s investment in Queen’s Gambit reflects our commitment to sustainability and our belief that

innovative technology can yield both social and economic returns,” Tarek Sultan, Vice-Chairman, Agility said. “This is not a new position for us. We’ve been investing in stakeholder capitalism for more than a decade.” Sultan added that Queen’s Gambit’s female-led management team “has the potential to tap into a differentiated network and perspective that positions it to execute a business combination with an attractive target. “This is a chance to take a more inclusive view of opportunities in the market, and drive value in the process.”

ABU DHABI PORTS TO RELOCATE CORAL AT KHALIFA PORT SUSTAINABILITY Abu Dhabi Ports has announced the launch of a major coral relocation and conservation project in the waters surrounding Khalifa Port part of a series of mitigation measures to lessen the environmental impact from dredging. The ports authority said in a statement that the effort will be conducted in partnership with the Environment Agency - Abu Dhabi (EAD) and is part of its ongoing initiatives to sustain Abu Dhabi’s unique maritime environment while developing world-leading maritime infrastructure.

The plan for the initiative, which aims to reclaim waters that separate the offshore port’s breakwater from the nearby spectacular Ras Ghanada coral reef, is being unveiled ahead of the construction of a heavy rail terminal that will connect Abu Dhabi Ports’ flagship, deepwater port to the UAE’s future rail network, Etihad Rail. Coral reef is deemed essential for protecting local marine wildlife ecosystem and Mohamed

Eidha Tannaf Al Menhali, port director, Khalifa Port, Abu Dhabi Ports, said: “Aquatic ecosystems have always been key considerations in the ongoing development of Khalifa Port, one of world’s most advanced deep-water ports. Abu Dhabi Ports is committed to driving both local and global initiatives aimed at introducing new technologies and solutions that will protect marine life and limit the impact of port activities on the local environment.”

AL FARIS EXPANDS INTO IRAQ HEAVY LIFT

Regional heavy lifting and transport specialist Al Faris has started its operations in Iraq, deploying a new fleet of heavy lifting and heavy haulage equipment along with a team of personnel with local knowledge. A statement from Al Faris said the new Iraq operations are headed by Alberto Pittaluga, who comes with “immense industry knowledge, credibility and over 20-plus years of experience in challenging regions including Iraq”. Al Faris added in the statement: “We have invested in the latest advanced equipment in our fleet. Our heavy lifting equipment includes Liebherr cranes ranging from 100t to 600t and our heavy haulage equipment includes hydraulic trailers, SPMTs, semi-trailers and low-bed trailers. With a brand-new fleet of heavy lifting and heavy haulage equipment and a highly experienced team with vast local knowledge and global experience headed by Alberto, Al Faris is ready to fully serve your heavy lifting and heavy transport requirements.” The company added that it also provides alternative lifting solutions like jacking and skidding techniques in confined spaces and its equipment includes hydraulic gantries and other modular push-pull skidding systems. Among the projects in Iraq that Al Faris has already successfully completed are West Qurna 1, West Qurna 2 and Al Faw. Apart from the quality of equipment, “We provide a strong commitment to investment in the development of HSE practices,” added Al Faris.

INSIDE THIS ISSUE: THE STORY BEHIND UD TRUCK’S 2020 SUCCESS, HOW VEOLIA IS GETTING GREENER, A NEW VISION FOR JLR, AND MORE!

08 MARCH 2021

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NETWORK

AL DHAFRA REOPENS WASTE RECYCLING OP

FARNEK LAUNCHES ITS OWN INHOUSE FLEET MANAGEMENT SOLUTION FLEET

Facilities management (FM) company Farnek says the launch of its own-house smart fleet management solution will optimise the performance of its transport fleet and improve service delivery to its customers. The company turned to its own technology division team to develop the solution which will be used by its entire transport fleet of more than 300 buses, vans and cars across the UAE The firm said development required a lengthy process but has “simply and ingeniously adopted and adapted the latest smart technology to produce a homemade solution”. “This bespoke telematics system has been developed in-house by our own IT engineers, using proven technology and is a Cloud and mobility-based platform. Our fleet is now powered by IoT telematic sensors connected with Google Maps for route optimisation with our drivers, fleet, service schedule and of course our customers, front of mind,” explained Javeria Aijaz, director, Technology & Innovation, Farnek. Operational staff at its logistics centre can use Farnek’s live administrative portal to compare vehicle inventory with the current and scheduled demand and issue instructions to the drivers (and each vehicle is fitted with a dedicated smart app. The drivers log in, accept the notification based on a QR code sent to the smart phone in the vehicle and start their journey. The app automatically calculates and compares the estimated and actual journey times and presents the driver with Google Maps-based navigation, to show the most time-efficient route to take.

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WASTE MANAGEMENT The Ghayathi Crusher in the Al Dhafra region has been reopened according to the Abu Dhabi Waste Management Centre (Tadweer). The move is said to be part of the centre’s strategic plan to promote environmental sustainability and develop an integrated waste management system in Abu Dhabi. As per a statement from Tadweer, the facility aims to cut construction and demolition (C&D) waste in the emirate and can handle 2,000 tonnes of C&D waste per day (30,000 tonnes per month). The crusher

can produce high-quality aggregate for the construction of vital infrastructure projects such as roads, to contribute to the sustainable development of Al Dhafra region. In diverting significant amount of C&D waste away from landfills and turning it into useful materials, the crusher helps lower greenhouse gas emission and contributes to the creation of green jobs in the region, the statement explained. “Tadweer’s move to reopen Ghayathi crusher is aligned with its continued efforts to fulfill Abu Dhabi’s vision of diverting 75%

of its waste away from landfills. The crushers run by Tadweer play an important role in achieving this target through recycling huge quantities of C&D waste and turning them into useful materials to use in vital projects in Al Dhafra region and across the country,” said Dr Salem Al Kaabi, director-general at Tadweer. The statement noted that the facility drives significant saving for the local economy and articulates Tadweer’s strategy of meeting the demand for recycled aggregates from the Emirate’s crushers and use them in vital projects.

UNITED TRANS GETS HIACE ON-DEMAND BUSES FLEET

United Trans has opted for AlFuttaim Hertz UAE’s range of Toyota Hiace vehicles for its Dubai Bus on Demand service. The fully-owned subsidiary of the Al Serkal group will now deploy the 13 new generation Toyota Hiace buses within selected zones in Dubai.

The 2020 Toyota Hiace design focuses on greater comfort and safety and comes with advanced safety features, powerful engines, exceptional ride comfort and a eye-catching semibonnet design that enhances reliability and toughness. It was manufactured with a choice of two body types including normal that has a standard

roof and, long which includes a high roof design, thereby catering to different needs of customers including both cargo and commuters. Al-Futtaim Automotive said in a statement that its collaboration with Hertz and the deal were in line with “its efforts to maintain its heritage of transporting people and goods with the highest safety and security standards and peace of mind.” Marius Anton, national operations manager at Hertz UAE, added: “We are immensely proud to be a part of this collaboration. We are committed to further enhancing our relationship with local companies and authorities to support the mission of providing unified logistics and transportation services in the UAE.” MARCH 2021 09

LAUNCHES

F-150 HYBRID ARRIVES IN THE MIDDLE EAST PACKING THE 3.5L V6 ECOBOOST / GENERAL MOTORS’ ELECTRIC BOLT SUV LAUNCHES WITH A RANGE OF 400KM-PLUS

LAUNCHES F-150 FIRST 3.5L ECOBOOST HYBRID

Electric pick-me-up THERE’S ‘MORE TECH AND POWER THAN EVER’ INSIDE THE REGION’S FIRST HYBRID PICKUP America’s so-called favourite truck, the Ford F-series lineup now has a hybrid variant in the Middle East. The all-new F-150 is purpose-built to be the toughest, most productive F-Series truck ever and Ford claims it arrives with best-in-class towing and payload capability. It also introduces all-new features to increase customer productivity, and an available all-new 3.5-litre PowerBoost hybrid powertrain with Pro Power Onboard – an integrated power generator. It launches with a choice of four engines – three V6 options, including the segment’s first ever full hybrid powertrain – and a naturally aspirated V8. The 3.5-litre PowerBoost fullhybrid V6 powertrain is targeted

10 MARCH 2021

to deliver the most torque and horsepower of any light-duty fullsize pickup. Available on every trim level from F-150 XL to Limited, the no-compromise PowerBoost system – the only light-duty full-size pickup to offer a full hybrid – adds instant electric torque to Ford’s 3.5-litre EcoBoost V6. It is targeting an estimated range of approximately 1,100km on a single tank of gas and will deliver at least 5,400kg of available maximum towing – equivalent to the average weight of ten fully grown dromedary camels. PowerBoost combines Ford’s proven EcoBoost engine and 10-speed SelectShift® automatic transmission with a 35-kilowatt (47-horsepower) electric motor integrated into the transmission, as well as software calibrated

specially for truck use, including drive modes like tow/haul mode to help customers better manage towing heavy trailers. The electric motor applies regenerative braking energy capture to help recharge the 1.5-kilowatt-hour lithium-ion battery. The battery is efficiently packaged underneath the truck, leaving the cab and cargo box of PowerBoost F-150 as spacious for passengers and cargo as other comparably equipped F-150 models. The system is capable of sustained battery usage at extreme outside temperatures or under heavy loads. Power isn’t only important under the hood. Available Pro Power Onboard expands F-150’s capability by bringing generator

levels of exportable power to work sites, camp sites and everyday life. Pro Power Onboard is available on the PowerBoost-equipped F-150, providing 2.3 kilowatts of output to help drive productivity. Power is accessible through incabin outlets and up to four cargo bed-mounted outlets, including one 230V three-pin socket for Middle East markets. There’s enough power to run a heavyduty air compressor, or power your campsite for the evening. The F-150 comes with a durable, proven foundation – a fully boxed high-strength steel frame with a high-strength, military-grade, aluminium alloy body. Every panel of the distinctive, rugged exterior is redesigned, including an updated headlamp design,

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LAUNCHES

A BOLT OF INSPIRATION THE NEW CHEVROLET BOLT EUV ARRIVES AT THE CENTRE OF GENERAL MOTORS (GM) MIDDLE EAST MOBILITY PLANS

GOING WITH THE FLOW The F-150 is more aerodynamic than ever. New active grille shutters and new cab and tailgate geometry all work together to reduce drag and improve fuel consumption on every truck.

EASY, BACK IT UP The F-150 is the only light-duty full-size pickup to offer Trailer Reverse Guidance which uses the truck’s high-resolution cameras to provide multiple views along with helpful graphics that tell drivers which way to turn the steering wheel while backing up.

new power dome hood and wrap-around bumpers. Higher front fenders, a tucked-in midsection and larger-diameter tyres pulled out three-quarters of an inch create a stronger, more powerful stance on and off the road. The interior is completely redesigned to elevate truck owners’ experience

with style, comfort, utility and technology. Featuring enhanced materials, new color choices and more storage, it is built around the functional needs of truck customers. Every surface has been thoughtfully designed, such as more soil-resistant two-tone seats for XL or the new standard dual glovebox.

When General Motors (GM) Middle East outlined its 2021 plans – and beyond - last month it placed the new Chevrolet Bolt EUV as a critical piece of GM’s past, present and future progress towards its mobility goals. GM Middle East says it is focusing on two distinct strategic business pillars: growing and expanding its core business of delivering world-class cars, trucks and SUVs, while accelerating its future mobility agenda across electrification, autonomy and connectivity. And in many ways that is all summed up in the new, all electric Chevrolet Bolt EUV. “We have been in this region for 90 years and plan to be leaders for the next 90 years to come,” said Luay Al Shurafa, managing director, General Motors Africa and Middle East. “GM is flexing its size, scale and expertise like never before. The opportunity for us, as we look towards the future, is to translate this success into electric vehicles, too. With the reveal of the Chevrolet Bolt EUV, we are taking another step toward achieving this. Al Shurafa added: “The Bolt EUV builds on other recent announcements including the GMC HUMMER EV Super Truck launching in the region next year, and that our pioneering connectivity and safety brand, OnStar, will launch here very soon – and be available across our Cadillac, Chevrolet and GMC brands. This is game-changing technology.”

In December 2020, GM announced a $27 billion investment in autonomous and electric vehicles as well as a plan to launch 30 new EVs globally by 2025 and now we have the first all-electric SUV from Chevrolet. The Bolt EUV boasts a range of 402 KM, meaning it only needs to be recharged about as often as a petrol car needs to re-fuel. The integration of these battery advancements demonstrates how the Bolt EUV and all future EVs from GM will be a viable everyday vehicle. “We continue to see high consumer demand for SUVs in the Middle East and as a pioneer in this space, the natural step for us was to bring an electric SUV to the region. GM is planning for an all-electric future and we want everybody in. We have unlocked a new offering, ensuring we provide an EV suitable for all people and all lifestyles,” said Kelly MacDonald, chief marketing officer, GM Africa and Middle East. SPECIFICATIONS Range

402km

Speed

150km/hr

120V charging

6.6km in 1 hr

240V charging

Full charge in 7 hrs

DC fast charge

150km in 30 mins

Curb weight

1.6t

Storage

462l

402KM FREE RANGE EUV

SPECIFICATIONS Engine

3.5-litre PowerBoost

Power

Full-hybrid V6 powertrain

Hybrid motor rating

47 hp

Transmission

10-spd SelectShift auto

Range

1,100km

Towing capacity

5.4t

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MARCH 2021 11

INTERVIEW

WE’RE HERE TO STAY

In this exclusive interview, Mourad Hedna highlights UD Trucks’ unwavering commitment to the MEENA market, the company’s aspirations, and its investments in customer support and ‘smart’ technology

ince its foundation in 1935, UD Trucks has built an international reputation for its focus on practicality and the core aspects of driving and ownership - with an enviable record of durability and a ‘customer-first’ mindset that has driven expansion from its native Japan to a truly global presence. T&FME spoke to Mourad Hedna, President of UD Trucks Hub, MEENA, about the current market dynamics, the company’s performance and its all-important plans for 2021. 12 MARCH 2021

Mourad, in most GCC markets, you hold the No.1 or No.2 position among Japanese truck firms. What do you see as the main reasons for this success?

The first thing I should say is that regionally, we have invested substantially in building a strong brand reputation - one that’s based on the philosophy of always supporting our customers and providing workable solutions for their business needs and challenges. We have a service-first mindset and provide the right framework for pre-emptive

We have invested substantially in building a strong brand”

maintenance - which plays a vital factor in helping our customers maximise their time on-road and keep their costs down. We have invested heavily in our presence in the region and we’re here to stay – I hope customers can see that from our consistency, focus and long-term approach. We demonstrate this by providing vehicles which are equipped and modified for the needs of the MEENA market. We were actually the first brand to understand that we needed to develop products specifically for this region. This makes a major contribution meconstructionnews.com

INTERVIEW

in terms of the vehicles’ longevity, reliability and user safety - particularly when allied to our aftermarket support and the network of strong local partners. After fully renewing our full Heavy Duty and Medium Duty ranges, we also introduce upgrades every year, such as ESCOT and the 40T capacity. When UD first decided to make inroads into the GCC, we undertook a major testing and research programme in Oman, which offers a classic mixture of the driving conditions so prevalent across MEENA - from desert heat (up to 52oC) to mountain cold, twisting un-made roads to long highways, and extreme gaps between service facilities, followed by additional tests in Qatar and Abu Dhabi when our products got upgraded and when we introduced new features It was only when we were certain our vehicles could handle these demanding conditions that we offered them to the market. This is the kind of mindset that our customers buy into, because they know we have their best commercial interests at heart. Remarkably, even during the pandemic, you delivered 6% growth in the region over 2019 – and improved your market share by 30%. How do you plan to build on that success in 2021?

Achieving such good results during this difficult time is giving us and our partners more motivation to continue being more aggressive towards our growth journey and it confirms that we are on the right track. In 2021, we will not only continue to support customers in every way we can, pioneering a range of new fleet deals, but we will also continue the growth journey by penetrating new segments, too. Our aspiration is to be a key player in critical sectors such as logistics and construction. We are also bringing a number of new specs and features to the market – you’ll be hearing a lot more about these later in the year. Throughout 2021, we will continue working with our ‘family’ mindset. One where we truly value our customers and provide them with the support they need to prosper in what has been a globally challenging climate.

are real technological game changers. UD Analytics helps boost fleet management with advanced reporting. With the option to include fuel and driving behavior consultancy services for an in-depth look into your fleet. So this means benefits such as: Visibility of the fleet at all times; Real time alerts for faster action; Improvements in overall safety; The ability to trace past routes; Minimising operating expenses; Fuel reports that allow insights into your fleet; andDriving behaviour reports for targeted coaching. In fact, I am delighted that we can see already the interest and positive feedback from customers using the UD Telematics service.

KEEPING UP ON UPTIME UD Telematics and Analytics both help fleets to maximise time on the road – and therefore profitability, says Mourad Hedna.

What are the key features in your range for 2021? Any new

There will be a continuous focus to improve fleet efficiency, productivity and total cost of operation, and some indicators - such as cost per ton and per kms transported - will be more and more closely and continuously monitored. For example, factors such as uptime and fuel consumption are increasingly important, especially for fleets. The reality is, that to maximise the profitability of your business, you need to be able to manage your trucks effectively by keeping them on the road for longer while reducing on-going costs. UD Telematics Services, a high-tech wireless communication system, coupled with the new UD Analytics (advanced) offering

model launches forthcoming?

To maximise profitability, you need to be able to manage your trucks effectively”

We are planning to have new specs and features in 2021 that will be revealed shortly: these will address more customer segments and will make our medium and heavy-duty ranges one the most complete and versatile ranges on the market. Plus, all our model range in the region will offer the choice of either automated or manual transmission in both ranges. How do you see the market changing this year and how is UD Trucks ahead of the trend?

There will be a stronger-then-ever demand for trucks: even during the Pandemic, we

Tell us your views about the trend towards ‘smart’ fleets, and factors such as telematics and its ability to deliver fuel optimisation and ‘anytime’ fleet data?

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FOCUSING ON THE REGION Hedna hopes customers can see that UD Trucks is investing heavily in the region and is here for the long-term.

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INTERVIEW

see the logistics sector growing more and more, and this is only possible because of the end-to-end flexibility of truck transport and delivery. I also believe customers will continue to invest, but there will be stronger pressure on their costs and cashflow, which means that affordability is more key to success than ever. In our view, this might mean, for example, that there won’t be so much emphasis on higher-end, luxury features. Rather, it will be important to have an offer where the basics are right and customers are supported by stateof-the-art service, so basically value for money will be more and more important. You mention three key themes for 2021: agility and resilience;

workshops are available and working to full capacity. Of course, if things do change in the future and we see a need then, we will take the necessary decisions to support our customers. What features make the New Quester particularly suitable for Construction work in the region?

AFFORDABILITY IS ‘KEY’ Hedna believes fleets will favour affordability over highendand luxury features in the present climate.

partnership mindset; and employee engagement. What training do you have here ‘on the ground’ to help you deliver these?

To be honest, it’s not only training, but a mindset of leadership and being prepared to monitor the situation and the respond as proactively as possible. This makes us more agile in the event that there need to be any changes. We also believe in continuous work with our valued partners and stakeholders, and that includes investing in simple processes to build better collaboration with our partners and ensure that, internally, we can react quickly to what happens in the market and adjust accordingly. We also want to create a culture of trust

We undertook a major testing and research programme in Oman”

and empowerment for employees and partners, as well as have a feel for market pulse and monitoring. Respect and trust is important for us and we are working hand in hand with our partners in a supportive manner. Likewise we focus on employee engagement which means transparent communication and a commitment to their wellbeing and health and safety. Are you continuing the Extended Warranty arrangement in the region, which you introduced during Lockdown?

No, to be honest, with the situation today we don’t see the need - all our SUPER VARIATION Superstructure variants of the Quester cover a lot of roles for fleets. Available vehicles include the Quester Mixer; Quester Concrete Pump; Quester Tanker; and Quester Tipper.

Well, to start with, it’s agile on any terrain. A purposely-designed with a combination of robust chassis, true heavy duty cabin with an optimised drive-line in terms of performance and durability. Productivity is also increased, with a higher payload capacity – you’ll find a wide variety of specifications on wheelbase and axles that can help maximise payload. The Quester in particular is designed for handling heavier loads in tough conditions. There are also benefits from better uptime, due to a longer service life. For example, the optional hub reduction rear axles increase service life in tough conditions. The engine was developed with the most modern technology, allowing longer service intervals and there is also high component durability. The Quester is also designed to make superstructure installation very easy. The comprehensive bodybuilder instructions and power take offs for specific applications make it ideal to be adapted for all assignments and road conditions. As examples of superstructure variants, you’ll find Quester Mixer; Quester Concrete Pump; Quester Tanker; and Quester Tipper. The 40T Quester has power, durability and operational efficiency. It’s got the new rugged 24 inch tyres and a super-strong chassis.For heavy construction work, 6×4 and 8×4 rigid configurations provide flexibility to match the truck to the job, and of top of that, the Quester is equipped with ESCOT, An Automatic- Manual transmission for easy driving, better fuel consumption and maintenance cost. How is UD Trucks provide a workable solution for operators facing up to a challenging 2021?

Well, there’s no doubt in my mind that the biggest challenge is uncertainty - and all its implications for the demand and supply chain, for health and safety issues, and concerns for people and the society as a whole. There are currently a lot of tensions in areas such as freight and supply in general, although we see a number of positive 14 MARCH 2021

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INTERVIEW

TARGETED APPROACH Prior to the COVID-19 crisis, UD Trucks had completed a series of deals including Kuwait Municipality purchasing 106 Quester and Croner models for waste management. The focus going forwards will be on the construction and logistics sectors.

developments, too: the continued growth of e-commerce is a classic example, with all the benefits this has for the logistics sector. Some specific segments could be going through different cycles depending on their importance and the priorities set by the governments; putting some projects on hold. Throughout, we have to be agile and adapt to customer’s needs and support them in tough times by offering a total solution focusing on uptime and total cost of operations. Whatever the sector you work in, we can help you lower costs and build profitability with products that combine durability with strong service support – and allied with today’s raft of ‘smart’

THE MOVE TO ZAHID Hedna believes the move to Zahid Tractor in Saudi Arabia bolsters both firms position. Kit assembly could potentially start by the end of the year.

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technologies, we will stay close to you and listen carefully to your needs.

There are really four major goals on the road to being Sustainability Leader”

What are some of the key steps to reach your goal to be the Japanese truck industry’s sustainability leader by 2025?

There are really four major goals. These are the environment – we will work towards having the lowest impact. Having the right active and passive technologies in place to minimise emissions and run cleanly. We have to also be the customer satisfaction leader in the market. We will work with employees to become the most desirable employer. This means developing employee talents

and better understanding the most effective ways of working with customers. Providing employees with integrated solutions – not simply piecemeal training, but overview and guidance towards a more fulfilling working career. Finally, in terms of our performance, we aspire to be ‘best-in-class’ and a key part of this is to develop fully-integrated processes as a vehicle manufacturer, which embrace quality, technology and the use of resources – and of course, the impact these have on the environment and customer satisfaction. As you can appreciate, this is not a simple journey, but it is one that is undeniably worthwhile to the future of the industry as a whole.

ROBUSTNESS AND AGILITY UD Truck’s latest Quester is deisgned with a steel bumper that offers high clearance on any terrain. It also features a higher payload capacity than previously available in the Middle East.

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REIMAGINING JLR

CEO Thierry Bolloré sets out an electrified future for Land Rover and Jaguar

aking a moment to look back on a troubled 12 months, Jaguar Land Rover’s CEO concedes it has been a “difficult year for everybody” in the Tata-owned organisation but, as he presents his vision of an electrified future for his two main brands, Thierry Bolloré says he has found solace in the way his team have reacted in the first few months of his tenure. “I have been witnessing the resilience, energy and spirit of our people in dealing with such adversity,” he adds, although he is in no mood to look backwards. “I would like to thank them for that but the 16 MARCH 2021

day has come to think of the future.” While Bolloré only formally joined JLR in September 2020, he is ready to set out an ambitiousnew global strategy – Reimagine – for the British company, the key points of which include the reimagination of Jaguar as an all-electric luxury brand from 2025 to ‘realise its unique potential’; Land Rover launching six ‘pure electric’ variants as it continues to be’ the world leader of luxury SUVs’; the development of hydrogen fuel cell vehicles; and a streamlining of the organisation. He describes it as move towards bringing “sustainability-rich reimagination of modern luxury, unique customer

We have something truly unique at Jaguar Land Rover”

experiences, and positive societal impact” toits two distinct brands. “British brands steeped in a rich tapestry of timeless designs that resonate and leave people with a smile,” he enthuses. “They create an affinity which is truly unique of the global stage.” Bolloré continues: “You only have to walk around our magnificent classic works facility to see and feel how alive our history is.” That history includes a successful integration into the Tata Group 13 years ago although the luxury car and SUV market has been a rollercoaster ride in recent years with JLR swinging from losses to profit meconstructionnews.com

FEATURE

almost on a quarterly basis. Tata itself has consequently been open to partnering to develop the brands with Bolloré’s own background as an arbiter in the Renault and Nissan partnership only reinforcing the possibility that JLR’s future will be driven by collaborative deals and concessions. For now, Bolloré is happy to fall back on Tata’s own considerable knowhow. “As a proud member of the Tata eco-system and its industrial strength and worldwide standing we have something truly unique at Jaguar Land Rover,” he says noting JLR’s own footprint in the UK, Slovakia and China. “We have all the ingredients we need to reimagine the business. Now is the time to realise its potential.” Set against a canvas of true sustainability, Jaguar Land Rover will become a more agile creator of the world’s most desirable luxury vehicles and services for the most discerning of customers, says Bolloré. A strategy that is designed to create a new benchmark in environmental, societal and community impact for a luxury business. “Jaguar Land Rover is unique in the global automotive industry. Designers of peerless models, an unrivalled understanding of the future luxury needs of its customers, emotionally rich brand equity, a spirit of Britishness and unrivalled access to leading global players in technology and sustainability within the wider Tata Group. “We are harnessing those ingredients today to reimagine the business, the two brands and the customer experience of tomorrow. The Reimagine strategy allows us to enhance and celebrate that uniqueness like never before. Together, we can design an even more sustainable and positive impact on the world around us,” he comments. At the heart of its Reimagine plan will be the electrification of both Land Rover and Jaguar brands on separate architectures with two clear, unique personalities. “The electrification of our brands is truly exciting for us,” says Bolloré. “Serenity, calmness, smoothness of the ride are all ways that we express luxury in our vehicles today. The purity of electric is the next natural step. It embodies everything a modern vehicle should be: It allows us to play with the material, the light, the shape, the smells to heighten the physical as well as the visual emotions of our products.” He continues: “We will have two unique personalities rooted in their meconstructionnews.com

own emotionally rich histories. This will give us two distinct choices of modern luxury for our customers.” In a Land Rover, vehicle and driver are united by adventure. By breaking new ground, confronting new challenges and not being content with the expected, Land Rover truly helps people to go ‘Above and Beyond’. In the next five years, Land Rover will welcome six pure electric variants as it continues to be the world leader of luxury SUVs through its three families of Range Rover, Discovery and Defender. The first all-electric variant will arrive in 2024. By the middle of the decade, Jaguar will have undergone a renaissance to

Together, we can design an even more sustainable and positive impact on the world around us”

emerge as a pure electric luxury brand with a dramatically beautiful new portfolio of emotionally engaging designs and pioneering next-generation technologies. Jaguar will exist to make life extraordinary by creating “dramatically beautiful automotive experiences” that leave its customers feeling unique and rewarded. Although the nameplate may be retained, the planned Jaguar XJ replacement will not form part of the line-up, as the brand looks to realise its unique potential. Jaguar and Land Rover will offer pure electric power, nameplate by nameplate, by 2030. By this time, in addition to 100% of Jaguar sales, it is anticipated that

BECOMING MORE AGILE Jaguar Land Rover will become a more agile creator of the world’s most desirable luxury vehicles and services for the most discerning of customers, says Bolloré.

LAND ROVER SETS ELECTRIC PACE Land Rover is introducing six pure electric variants in the next five years through its three families of Range Rover, Discovery and Defender. The first all-electric variant will arrive in 2024.

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around 60% of Land Rovers sold will be equipped with zero tailpipe powertrains. Jaguar Land Rover’s aim is to achieve net zero carbon emissions across its supply chain, products and operations by 2039. As part of this ambition, the company is also preparing for the expected adoption of clean fuel-cell power in line with a maturing of the hydrogen economy. Development is already underway with prototypes arriving on UK roads within the next 12 months as part of the long-term investment programme. Sustainability that delivers a new benchmark in environmental and societal impact for the luxury sector is fundamental to the success of Reimagine. A new

We are harnessing those ingredients to reimagine the business”

centralised team will be empowered to build on and accelerate pioneering innovations in materiality, engineering, manufacturing, services and circular economy investments. Annual commitments of circa £2.5bn will include investments in electrification technologies and the development of connected services to enhance the journey and experiences of customers, alongside data-centric technologies that will further improve their ownership ecosystem. Proven services like the flexible PIVOTAL subscription model (which has grown 750% during the fiscal year), born out of Jaguar Land Rover’s incubator and investor arm, InMotion, will now be

THE REIMAGINE STRATEGY Its Jaguars and Land Rovers are in demand around the world and in 2020 it sold 425,974 vehicles in 127 countries. Land Rover is the global leader of luxury SUVs through its three families of Range Rover, Discovery and Defender. Jaguar is the firstever brand to offer a premium all-electric performance SUV, the Jaguar I-PACE.  JLR remains at heart a British company, with two major design and engineering sites, three vehicle manufacturing facilities, an Engine Manufacturing Centre and a Battery Assembly Centre in the UK. We also have vehicle plants in China, Brazil, India, Austria and Slovakia. Three

18 MARCH 2021

of our seven technology hubs are in the UK – Manchester, Warwick (NAIC) and London – with additional sites in Shannon, Ireland, Portland, USA, Budapest, Hungary and Shanghai, China. Central to its Reimagine strategy is the electrification of both the Land Rover and Jaguar brands with two clear, distinct personalities. All Jaguar and Land Rover nameplates will be available in pure electric form by the end of the decade. This marks the start of the company’s journey to become a net zero carbon business across its supply chain, products and operations by 2039. As a wholly-owned

subsidiary of Tata Motors since 2008, Jaguar Land Rover has unrivalled access to leading global players in technology and sustainability within the wider Tata Group. “The Reimagine strategy takes Jaguar Land Rover on a significant path of acceleration in harmony with the vision and sustainability priorities of the wider Tata Group,” says N Chandrasekaran, Chairman of Tata Sons, Tata Motors and Jaguar Land Rover Automotive. “Together, we will help Jaguar realise its potential, reinforce Land Rover’s timeless appeal and collectively become a symbol of a truly responsible business for its customers, society and the planet.”

rolled out to other markets following a successful launch in the UK. Reimagine will see Jaguar Land Rover establish new benchmark standards in quality and efficiency for the luxury sector by rightsizing, repurposing and reorganising. Central to that journey, and in order to establish different personalities for the two brands, is the new architecture strategy. Land Rover will use the forthcoming flex Modular Longitudinal Architecture (MLA). It will deliver electrified internal combustion engines (ICE) and full electric variants as the company evolves its product line-up in the future. In addition, Land Rover will also use pure electric biased Electric Modular Architecture (EMA) which will also support advanced electrified ICE. Future Jaguar models will be built exclusively on a pure electric architecture. Reimagine is designed to deliver simplification too. By consolidating the number of platforms and models being produced per plant, the company will be able to establish new benchmark standards in efficient scale and quality for the luxury sector. Such an approach will help rationalise sourcing and accelerate investments in local circular economy supply chains. From a core manufacturing perspective that means Jaguar Land Rover will retain its plant and assembly facilities in the home UK market and around the world. As well as being the manufacturer of the MLA architecture, Solihull, West Midlands will also be the home to the future advanced Jaguar pure electric platform. Key partners including Trade Unions, retailers and those in the supply chain will continue to play a vital part of the extended new Jaguar Land Rover ecosystem and its journey towards “reimagining the future of modern luxury”. As suggested in the latest financial results, Jaguar Land Rover has a strong foundation on which to build a sustainable and resilient business for its customers and their communities, partners, employees, shareholders and the environment.Driving this transformation is the recently launched Refocus programme, by consolidating existing initiatives like Charge+ with new cross-functional activities. Reimagine will also see Jaguar Land Rover right-size, repurpose and reorganise into a more agile operation. The creation of a flatter structure is designed meconstructionnews.com

FEATURE

WHAT IS JAGUAR LAND ROVER MENA?

WORKING WITH TATA JLR will collaborate with other TATA companies, bringing it closer to the group.

DEFENDING ITS POSITION Land Rover will use the forthcoming flex Modular Longitudinal Architecture (MLA) as well as deliver electrified internal combustion engines (ICE) and full electric variants in the future.

to empower employees to create and deliver at speed and with clear purpose. To accelerate this efficiency of focus, the company will substantially reduce and rationalise its nonmanufacturing infrastructure in the UK. Gaydon will become the symbol of this effort – the ‘reactor’ of the business – with the Executive Team and other management functions moving into the one location to aid frictionless cooperation and agile decision-making. In order to realise its vision of modern luxury mobility with confidence, the company is curating a closer collaboration and knowledge-sharing with other Tata meconstructionnews.com

Group companies to enhance sustainability and reduce emissions as well as sharing best practice in next-generation technology, data and software development leadership. “We have so many ingredients from within. It is a unique opportunity,” said Bolloré. “Others have to rely solely on external partnerships and compromise, but we have frictionless access that will allow us to lean forward with confidence and at speed.” Bringing all these ingredients together, Jaguar Land Rover is on a path towards double-digit EBIT margins and positive cash flow, with an ambition to achieve positive cash net-of-debt by 2025.

We have frictionless access that will allow us to lean forward”

Based in Dubai, Jaguar Land Rover MENA is responsible for the provision of region-wide support to 18 markets and 44 dealerships, with strategic actions planned to further strengthen the regional dealer network MENA office supports. Jaguar Land Rover MENA is headquartered in Dubai Silicon Oasis (DSO): the integrated free zone technology park. Spanning a total area of 14,000 square meters, the brand’s regional headquarters features innovative technologies that equip engineers, as well as technical and administrative staff across JLR’s regional network, with the support, infrastructure and tools required to deliver the topquality products and services that customers have long associated with the Jaguar Land Rover name. Engineering Vehicle Testing Centre operates in Dubai, with a dedicated Jaguar Land Rover Training Academy that is the first of its kind in the region. A dedicated Jaguar Land Rover parts distribution centre is also open in Jebel Ali Free Zone to service the entire region.

Ultimately, Jaguar Land Rover aims to be one of the most profitable luxury manufacturers in the world. Bolloré concludes: “As a human-centred company, we can, and will, move much faster and with clear purpose of not just reimagining modern luxury but defining it for two distinct brands. Brands that present emotionally unique designs, pieces of art if you like, but all with connected technologies and responsible materials that collectively set new standards in ownership. We are reimagining a new modern luxury by design. Our focus will be to oversatisfy our customers at every step of their journey with us.” MARCH 2021 19

FEATURE

LIFE AFTER COVID

Sébastien Chauvin, CEO of Veolia Middle East plots out a green recovery

20 MARCH 2021

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he COVID-19 pandemic sent shockwaves through global supply chains. For the first time in modern manufacturing history, demand, supply, and the available workforce were affected globally at the same time. The strain the pandemic conditions have placed on our worldwide industrial infrastructure has ultimately shined a light on several critical shortcomings. During the ongoing crisis and due to the extreme quarantine measures, we have also seen many positive changes from all around the world, such as improved environmental conditions including reduction in CO2 emissions, emission of greenhouse gases and ozone layer depletion. Globally, the only time carbon dioxide emissions have decreased in the past twenty years is during economic slowdowns, such as the 2008 financial crisis or last year’s COVID-19-related restrictions: global CO2 emissions decreased by 8.8% (−1,551 Mt CO2-eq) in the first half of 2020 as compared to the same period in 2019. On the other hand, the world has also seen an increase of disposable plastic, which is highly damageable for the environment and biodiversity. The science is beyond dispute. If global warming is to be kept to no more than +2°C by the turn of the century, compared to the preindustrial era, then global greenhouse gas emissions must fall 61% by 2050, compared to current trends. To help achieve this we must innovate and strive to help reduce, or even eliminate atmospheric emissions of greenhouse gases by our activities. If COVID-19 has taught us anything, it is the crucial need for creativity, solidarity, and innovation in terms of sustainability. The Covid-19 pandemic and the global economic crisis has triggered a unique occasion to make the global economic and social models more resilient. More than ever, governments and economies will be focusing their efforts and growth strategy on sustainable development and a green recovery. This is not a matter of creating a new economy from scratch but instead using the existing tools and expertise available. This moment of recovery is an opportunity to rethink our society and develop a new growth model, which is more inclusive, resilient, circular, and digital. Digitalization has appeared to be a key resilience factor for most organizations. Furthermore, the transition to a climatemeconstructionnews.com

RECYCLING AS A CORNERSTONE Recycling is a “cornerstone of the circular economy”, where others see problems, Chaucin says Veolia sees “resources and beautiful projects” that can materialise from discarded waste.

neutral economy, the protection of biodiversity and the transformation of agrifood systems has the potential to rapidly provide jobs, growth and also contribute to building more resilient societies, based on a global circular economy approach. Veolia as a group has accelerated the roll-out of an enterprise project ‘Impact 2023’ that traces a clear and ambitious route defined by its commitment to making a positive impact for the planet and all the company’s stakeholders. Building on the results of the efforts and refocusing of the past few years, Veolia now has the strength and confidence needed to set its goals even higher with a carefully constructed

This moment of recovery is an opportunity to rethink”

and revealed ambition to be the champion of the ecological transformation. The French transnational company has put in place business continuity plans to ensure essential services that focus primarily on producing and supplying drinking water and treating wastewater, preserving waste collection operation, safeguarding energy management activities in cooling networks, performing industrial on-site services to ensure industrial continue to operate and upholding its activities processing hazardous waste, which is vital to maintaining key industrial operations. Additionally, Veolia has also helped to mitigate the climate emergency through various innovative projects, such as the production of renewable energy, by capturing and converting biogas in electricity, and by also installing solar panels. We currently have several renewable energy projects on-going in Dubai, Ajman, and Abu Dhabi. Developing the recycling culture is part of Veolia’s mission, with a circular economy at the heart of our approach. Veolia also fosters adaptations to the climate emergency and its consequences by towns, cities, and industries, deploying solutions such as identification of water stress risks and water recycling to limit pressure on resources. With the implementation of appropriate desalination and water reuse strategies, Veolia contributes to supplying potable water to 1 million people within the region. By operating wastewater systems

COVID-SAFE HANDLING 340 of Veolia’s employees were mobilised to handle waste after the COVID-19 crisis began.

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across cities in Ajman, Abu Dhabi and Al Ain, Veolia Middle East ensures safety to more than 2.8 million residents who are connected to sanitation. The optimised management of wastewater systems helps to preserve the natural environment and the biodiversity. Food security challenge

Agriculture in the UAE faces many challenges, such as water scarcity, extreme temperatures, population growth, intense urbanisation, industrialisation, and a lack of land suitable for agriculture. Despite these issues, the UAE continues to flourish, although its increasing population growth needs to be supported by a steady food supply. All needed resources to face this challenge are already within the region. For example, untapped potential lies with the reuse of treated water, which remains largely underutilised in MENA — according to the WRI a total of 82% is not reused. This water could provide a viable source of clean water, which is key to establishing food security programs in the region. To protect water resources, Veolia is developing irrigation solutions with treated water recycling, and has developed an innovative solution based on “intelligent reuse”. This approach makes it possible to reuse wastewater for agriculture and conserve the nutrients it contains, such as nitrogen, phosphorus, or potassium, which limits the use of chemical fertilisers.

JUST TO RECAPP Veolia has launched Recapp, the UAE’s first freeof-charge digital service to “collect recyclables and to incentivise responsible behaviour”.

We have also seen many positive changes from all around the world”

Globally, around a third of all food is wasted and the IPCC estimated that food waste contributed to nearly 10% of all man-made greenhouse gas emissions, between 2010 and 2016. Waste management companies like Veolia have an important role to play in helping to alleviate this problem. Veolia can use sludge and organic waste to produce fertilisers and organic amendments, which achieves the loop in the circular economy. Thanks to our expertise in water and waste, we can transform bio waste into organic fertilisers and recycle wastewater sludge on compost. In Abu Dhabi and Dubai, more than 900,000 metric tonnes of plastic resin are

used annually, with consumer packaging representing 45% of plastic used in the UAE. This is a colossal issue as most plastics do not just ‘go away’, they end up in our seas and oceans, taking hundreds of years to degrade. By enhancing its commitment towards improving sustainable development in the UAE and widely across the Middle East, Veolia plays an active role by raising awareness to current and future generations about the environmental challenges, such as decreasing the amount of waste generated in the region, by spreading the recycling reflex. Recycling is a cornerstone of the circular economy, where others see problems, Veolia sees resources and beautiful projects that can materialise from waste. Initiatives can be taken to help citizens limit throwing waste, and encourage people to segregate waste to ease recycling. To support this approach, Veolia has launched in Abu Dhabi the UAE’s first free-of-charge digital service to collect recyclables and to incentivise responsible behaviour, called Recapp. The app offers an on-demand, free of charge, door-to-door collection service for recyclable material such as plastic bottles and aluminium cans. Several initiatives surrounding plastic recycling will be deployed to establish a circular ecosystem to help pave the way towards more recycling in the region. Together, we aim to make recycling easier and accessible by proposing different collection schemes.

INTELLIGENT REUSE Veolia is developing irrigation solutions with treated water recycling, and has developed an innovative solution based on “intelligent reuse”.

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A circular economy has the power to tackle the challenges which the region, and the world, faces within the waste, energy, and water sectors. Creating local loops of resources and enhancing food security are just a few examples of Veolia’s contribution to a greater future. At Veolia Middle East, we are not simply contributing to the more efficient use of resources in MENA, but rather discovering new approaches towards creating a truly sustainable and selfsufficient ecosystem. By supporting and helping local public infrastructures and industries achieve their sustainable journey, by sensitising and helping customers to adopt a more sustainable lifestyle, we aim to play the role of a key partner in the region, to help build the green recovery. More than just helping you get through the next crisis; circular processes will help businesses survive the current one. Businesses need to keep their focus on the long-term goal of sustainability and make better use of existing goods and resources to generate revenue. Maintaining consistent operations whilst adjusting to the demand of consumers is key to increasing business resiliency during uncertain times. In order to maintain the quality and availability of its services, Veolia has activated a business continuity plan to protect its operations for its desalination plant in Fujairah. Veolia teams continue to guarantee the supply of perfect quality drinking water in sufficient quantities, in all circumstances. To make this possible, Veolia has organised its operational and support services to continuously maintain the level of staffing required to keep its activity ticking over Tap water is perfectly suitable for drinking. The water supplied has systematically undergone various stages of treatment, including disinfection, which is designed to eliminate all viruses, as well as the coronavirus. The World Health Organization (WHO) has confirmed that the virus has not displayed any resistance to the standard treatment applied to drinking water. Each day, Veolia employees are working hard to keep communities safe and continue providing essential services and to safeguard continuity in public water services, which also covers wastewater treatment as cleaning wastewater is essential to uphold public hygiene and protect the environment. Veolia teams have put in place resilient meconstructionnews.com

Recycling is a cornerstone of the circular economy”

organisation in order to ensure the continuity of operation of its wastewater treatment plants of Ajman, Abu-Dhabi and Al Ain. While important in everyday life, it is imperative in a time of crisis that people remember some items cannot be flushed down the toilet. Waste items such as disinfectant wipes, tissues and all paper other than toilet paper, dental floss, cat litter, medication, cooking fat and even nappies are found in wastewater, even though they should be thrown in the bin. These items clog up pipes in homes and wastewater treatment facilities. Some users seem to ignore the

severity of the environmental and financial consequences of disposing of waste in this way, which pollutes natural environments and creates an imbalance in the ecosystem. When people do the right thing and throw away their waste properly, it is a sign of respect and support for the operatives working each day on the ground, combating the pandemic and maintaining good standards of household hygiene to guarantee health security. It is important to try and help the heroes on the ground and allow them to concentrate on the job they are there to do.

COVID-19: MOBILISING A WORKFORCE Veolia put in place business continuity plans for all its various waste management activities to maintain waste collection through specific plans and protect waste processing operations and facilities in Abu Dhabi. 340 of Veolia’s employees have been mobilised to handle waste in the safest and most efficient manner to the satisfaction of its customers. Veolia employees have been instructed to strictly comply with protective measures, health regulations, social distancing rules and professional risk prevention measures that are already in place within the Group. Veolia also provides employees on the ground with the protective equipment required and disinfects the cabins of waste collection trucks at the end of every shift. To respect its operatives who are

working on the ground each day to uphold this public service, it has asked communities to adopt practices such as: Household waste should be thrown away in closed bags in the right bin to minimise handling; tissues, masks, disinfectant wipes and all-purpose kitchen rolls should be thrown away in closed bags with other household waste; and recycling bins should be used for recycling waste only. Veolia employees who can carry out duties remotely using digital technology are currently working from home. Where people have to be present on the ground, in particular for certain tasks that are essential in maintaining service continuity, Veolia Middle East also modified shifts in order to reduce risk exposure and secure procurement of essentials consumables and spare-parts

for the coming month. On the ground, technicians and on-call teams have also been laid up to work in rotation. Interventions have been prioritised and the teams are concentrating on priority duties, including treating, producing and distributing drinking water, undertaking repair work on major leaks and handling emergency call outs. “Veolia’s mission is to provide services that are essential in day-to-day life, like supplying drinking water, treating wastewater, processing waste and providing energy services. Our operatives are fully mobilised to continue serving the country and with the help of digital, Veolia operations are more resilient. Day in, day out, these everyday heroes are on the ground so others can stay at home,” said Sébastien Chauvin, CEO of Veolia Middle East.

MARCH 2021 23

WORKSHOP

UAE DEVELOPERS INVITED ONTO VOLVO PLATFORM / BOSCH LAUNCHES EV FILTERS CONTI CONFIRM ELECTRIC VEHICLE FOCUS / NISSAN TAKES MOBILITY LOCAL

WORKSHOP

UAE digital developers needed for Volvo Cars

BY JOINING GLOBAL BRAND PORTAL, DEVELOPERS IN THE UAE COULD HELP CREATE ‘BETTER VOLVO CARS IN THE WORLD’ TECHNOLOGY

Al-Futtaim’s Trading Enterprises is asking UAE app and software developers to help create better Volvo cars for the future via the Swedish brand’s new innovation portal. The portal enables developers from across the world to share their ideas for easier and more convenient ownership as well as safer cars. The portal makes a broad variety of resources and tools available for free, allowing external developers to create new innovative services and in-car apps, explained Al-Futtaim.

“Digital innovation remains at the forefront of Trading Enterprises – Volvo as we continue to develop applications and services offered to our customers through the web and smart devices,” said Oscar Rivoli, managing director, Al-Futtaim’s Trading Enterprises. “Volvo cars are becoming increasingly smarter and more connected, and with that comes a growing demand for apps and services among our customers. “Availing these resources for UAE developers is a testament of the significance of the local market

EVOLVING PLATFORM The API allows developers and other third parties to access car dashboard data, including fuel level and distance travelled, and use it to build and provide new services. Additional data and data sources will be made available over time.

for Volvo Cars, and we look forward to see UAE developers join the platform and share innovations that could be implemented on Volvo vehicles both locally and globally.” The portal’s resources are not only useful for developers, but also for researchers, smart-home tinkerers, and computer-savvy artists. By making these available, Volvo Cars continues its long tradition of sharing knowledge and research to contribute to safer roads for all. The resources available on the Innovation Portal include a simulator that recreates the Android Automotive Operating System and Google apps used in new Volvos, providing developers with an accurate in-car experience of the system on their computer. This helpful tool supports app developers to design, develop, test and publish apps directly on Google Play in the car. The platform will also feature the Extended Vehicle API (Application Programming Interface), marking the first time Volvo Cars offers an API to the public. With customers’ consent, the API allows developers and other third parties to access car dashboard data.

BOSCH UNVEILS CABIN FILTERS FOR EVS FILTERS

The numbers of newly registered electric vehicles has risen dynamically due to government incentives over the last year. As a result, electric cars and plug-in hybrids are also of increasing importance for workshops. Featuring a market coverage exceeding 90 percent, the Bosch range includes cabin filters for most electric and plug-in hybrid vehicles on the European market. In view of the changing aftermarket business concerning EVs the broad Bosch range of cabin filters provides workshops with good chances for additional turnovers. Cabin filters protect the vehicle interior and the vehicle occupants against fine dust, aerosols, bad smells, allergens and bacteria – even in case of electric vehicles. Bosch recommends replacing them ever 15 000 kilometers or at least once a year, especially prior to the pollen and hay fever seasons.

INSIDE THIS MONTH’S WORKSHOP: THE RANKING OF THIS YEAR’S EMERGING LOGISTICS INDEX FROM AGILITY IS REVEALED, AND MUCH MORE!

24 MARCH 2021

meconstructionnews.com

WORKSHOP

NISSAN TESTS COMMUNITY MOBILITY

CONTI UPDATES 2030 STRATEGY TECHNOLOGY

Continental has set out its new strategic programme for the Tyre business area as it is looks at ways it can set itself apart from the competition in respect of sustainability and digital solutions. In the passenger and light truck tyres segment, the focus will be on growing the global business with tyres for electric vehicles and ultra-high-performance tyres. In the truck and bus tyre segment, the Conti360° fleet services offering will be a key driver across all regions. “Excellent tyres are and will remain our DNA. They have made us one of the world’s largest manufacturers. Now, with our ‘Vision 2030’ strategic program, we are setting the stage to build on what is already a position of strength. Going forward, smart digital tyre solutions and the realisation of ambitious sustainability goals will be decisive for our success and as differentiators in the marketplace,” said Christian Kötz, head of the Tyres business area and a member of Continental’s Executive Board. Going forward, with its premium portfolio of passenger, truck and specialty tyres, Continental will continue to stand for innovative peak performance in tyre technology. In the future, this will be complemented by an ever-expanding service offering and aligned even more precisely with different customer segments. On top of this, in recent years it has pursued the targeted expansion of its worldwide production network. At the company’s state-of-the-art production plants, innovations such as fully automated tyre warehouses. It will continue to systematically develop new business models and create an entire ecosystem of smart digital solutions centered on its tyres a one of the world’s largest suppliers of electronics, sensor systems and software in the mobility sector.

meconstructionnews.com

MOBILITY Nissan has begun field testing new mobility services as part of a partnership to promote future community building in Japan. The partnership agreement between three local governments and eight companies aims to develop new modes of transportation, and to promote the use of renewable energy, in the Hamadori area of Fukushima Prefecture. The overall goal is to help develop a revitalized, resilient and sustainable low-carbon community. Nissan’s involvement in the project is part of the company’s vision of enriching people’s lives and its global efforts to achieve carbon neutrality by 2050. The field operation tests are aimed at assessing receptiveness among residents and visitors to the community. The tests include operation of an EV shuttle service

VEHICLES THAT ARE SPOKEN FOR Mobility hubs connect vehicles to each other, including personal vehicles, which serve as ‘spokes’ and are used for travel to nearby areas in the community.

that runs in a loop around the central district of Namie town at a high frequency, using roadside stations as mobility hubs. The hubs connect to other vehicles, including personal vehicles, which serve as ‘spokes’ and are used for travel to nearby areas. The service supports both passenger and cargo transport. It includes home delivery of packages using ‘spoke’

vehicles such as EV taxis and utilizing Japan Post vehicles for efficient delivery, as well as roadside station pickup of purchases from supermarkets. The tests also include running an autonomous vehicle on a route around central Namie. The long-term vision is to create sustainable transportation services that offer convenience and contribute to the economy.

F.LLI FERRARI ADDS HEAVY CRANES TO NEW AGE LINE TRANSPORT

Italian manufacturer F.lli Ferrari has added a 60tm family to its New Age line of truck-mounted cranes, which brings its portfolio to now span products from 1tm to 165tm lifting capacities. A statement from the company said that the new models further strengthen its position in large size truck-mounted cranes, with the

new family comprising two models: the 9601C - Standard Lifting Control System and the 9661C - Proportional Lifting Control System, with lifting capacity 10% greater than 9601C. Each of the two models come with two jib options – the J1206 Light Jib for lifting horizontally and the J2006 Heavy Jib for lifting verticall. Standard features on the new models include FASTER, HEAVIER LOADS F.lli Ferrari said that the new light and compact cranes have the best lifting capacity currently available in this segment of the market.

double linkage, negative second boom angle, up to eight extensions, endless slewing and multifunction radio remote control. A wide range of accessories and options are also available in the 60tm family for optimising the cranes’ configuration according to the applications. The features on the New Age models that increase productivity and improve operator efficiency and safety include an Auto Levelling System, which automatically keeps the truck frame in a horizontal position, enabling best crane performance; an Operator Auto Detection, which automatically activates the operator’s closest stabiliser, avoiding the need for operator contact; Front Stabilizer control, which allows possible load in the front area, avoiding stress and overload of the truck frame; and Compact Installation Kit, which guides the hoses through a different route, allowing a more compact installation of the crane on the truck. MARCH 2021 25

ANALYSIS

STRONGER THAN EVER

The UAE and KSA emerge even stronger in the annual Agility Emerging Markets Logistics Index despite the challenge of COVID-19

gility first created its Agility Emerging Markets Logistics Index report with its research partners Transport Intelligence (Ti) 12 years ago to look at the competitiveness of countries that were capturing foreign investment, expanding the global middle class, joining the knowledge economy, and becoming indispensable as suppliers, markets and innovators. In that time the UAE and Saudi Arabia have risen through the ranks of the 50 leading emerging economies and today stand at three and sixth in the top ten on the list. Both are firmly among the leading markets of their peers 26 MARCH 2021

and have only strengthened their positions in a year ravaged by the Coronavirus pandemic. Chris Price, CEO, Agility Global Integrated Logistics says the 2021 Index and its survey of 1,200 supply chain executives offers a few clues as to how COVID-19 is reshaping the logistics sector globally. “Industry executives don’t foresee a full global recovery until 2022 or beyond, despite a surprising rebound in key Asia-Pacific markets such as China and Vietnam. While the Eurozone economy was shrinking 7.4% in 2020 and the U.S. economy contracted 3.6%, China overcame a disastrous first quarter to post year-on-year GDP growth of 2.3% in 2020,” he remarks on the report.

We don’t know how small companies have weathered the storm”

“By a two-to-one ratio, companies are choosing to build supply chain resilience by speeding their adoption of digital technology and moving more of their business online vs. moving production to markets that they feel are somehow safer. Nineteen percent of executives surveyed say 2020 sales decreased as a result of the pandemic but only 10% say Covid-related employee safety measures have decreased efficiency.” According to Price, cost is driving emerging markets investment and globalisation, “but low-cost labour is barely a consideration today. After total cost, the executives we surveyed say the most important factors are government bureaucracy and regulation; infrastructure meconstructionnews.com

ANALYSIS

quality; and supply of skilled labour. The pandemic accelerated the e-commerce revolution in every region of the world. Online sales growth eclipsed pre-Covid forecasts, and digital purchases gained a larger share of wallet. “What we don’t know – because there is little reliable data – is how small and medium-sized companies have weathered the storm,” he says. “A number of factors continue to cloud the emerging markets outlook for 2021. Most worrisome is the slow, uneven rollout of Covid vaccines and the prospect that populations in many emerging markets could be the last to get access.” He adds: “A worry of mine is creeping trade protectionism and, with it, the increasingly costly and complex burden of compliance. Here’s hoping we keep it from choking off trade, the lifeblood we need to speed the global economy and emerging markets toward recovery.” In the survey of 1,206 logistics industry executives, 51.5% believe the global economy will not fully recover from the Covid-19 pandemic until at least 2022. However, many are more optimistic for the recovery prospects of Asia Pacific, Europe and North America ahead of that timeline. While this will clearly benefit Asia Pacific’s emerging markets, recovery in the key consumer markets of North America and Europe will drive demand for commodities and goods produced in emerging markets globally, powering a wider recovery. Latin America and Sub-Saharan Africa are likely to be the last regions to recover, according to survey respondents. Reinforcing the caution over recovery prospects, 49% of survey respondents say the International Monetary Fund’s 2021 forecast of 5.9% GDP growth for emerging markets is too optimistic; 42% say it’s about right. Despite the caution, the global downturn has the logistics industry feeling opportunistic – if not optimistic – about emerging markets. Fifty-two percent of respondents say they plan to increase business activity in emerging markets or are expressing more confidence in those markets. Only 19.5% say they are less confident in emerging markets. Logistics executives felt disruption across the entire supply chain in 2020. Significant percentages say they have struggled to cope with port congestion, transportation capacity, supplies of parts and inputs, distribution and delivery, maintaining international operations, and storage. In their own operations, industry executives say the most acute pain points in 2020 were planning and meconstructionnews.com

AGILITY’S TOP TEN EMERGING MARKETS IN 2021 Amid an economic downturn and uncertainty caused by the pandemic, these nations rank highest in the 2021 Agility Emerging Markets Index: Rank

2021 Index

Change from 2020

China

–

India

–

Indonesia

UAE

-1

Malaysia

–

Saudi Arabia

–

Mexico

Vietnam

Qatar

-1

Turkey

forecasting for both supply and demand. Managing orders and cash flow were the areas next most affected by the pandemic. Nineteen percent of executives surveyed say 2020 sales decreased as a result of the pandemic. But only 10% say COVID-related employee safety measures have decreased efficiency. Sixty percent of logistics executives in the survey say the pandemic has resulted in permanent changes to the way their businesses operate globally or regionally. About 25% said it’s too soon to tell. How are logistics executives trying to build more resilient supply chains? By a two-to-one margin, they favour accelerated adoption

–

Industry executives don’t foresee a full global recovery until 2022 or beyond”

GOING INTO THE DIGITAL SPACE Logistics companies are choosing to build supply chain resilience by speeding their adoption of digital technology and moving more of their business online vs. moving production to markets that they feel are somehow safer.

and integration of technology plus enhanced digital business (40.3%) over movement of production through multi-shoring, nearshoring or reshoring strategies (20.9%). Logistics executives plan to harden their operations and build supply chain resilience in 2021 by focusing on business-continuity planning; tech and automation improvements; and strengthening their financial viability. Shifting production to other manufacturing locales is a low priority for them. The online retail and healthcare/pharma sectors are expected to see extremely strong growth in 2021. The automotive, store-based retail and industrial sectors will struggle. No one type of business is seen as powering the recovery: small and medium-sized businesses, multinationals, and large regional players in emerging markets are expected to play roles. China and India are executives’ choices as the top future logistics markets, although the two countries flipped positions with China on top and India now No. 2. Saudi Arabia and Kuwait gained the most ground. Logistics executives rank Saudi Arabia No. 7 among countries with the most potential to grow as logistics hubs, a leap from No. 10 a year ago; Kuwait climbs three spots to No. 20. Egypt and Qatar both rise two spots, to No. 15 and No. 19, respectively Like many oil producing nations, the UAE had to contend not only with the spread of Covid-19 within their populations in 2020, but also with the collapse in oil prices as demand collapsed. The IMF expects the UAE’s GDP to fall 6.6%, while Oxford Economics forecasts its nonoil economy will shrink some 7.4% during the year and not return to pre-pandemic levels until mid-2022, as a result. Clearly the impact of the Covid-19 pandemic has been harsh in the Emirates, but the expectations are for a recovery to take hold in 2021 as social restrictions ease and the country’s other dominant sector – tourism – sees greater levels of activity. The UAE’s central bank forecasts a 3.6% expansion, while the country has financial reserves to provide fiscal support throughout the year which may provide a boost to recovery prospects via funding for new projects. The delayed Expo 2021 will provide a boost to non-oil recovery. The disruption to its economic performance saw the Emirates slip to 4th in the overall ranking. The fall is limited though, as the UAE’s position in the Top 10 remains a result of its leadership in Business Fundamentals, where it has been ranked first in all iterations of this Index methodology. MARCH 2021 27

ANALYSIS

New policy initiatives announced during the year show the UAE is set to continue developing this strength. There are amendments to bankruptcy laws, allocation of grants and incentives to tourism businesses, changes to commercial transaction laws and a targeted economic support plan aiming to enhance liquidity in financial services already progressing under the Emirates’ Covid-19 economic recovery plan. Other reforms have also taken place. Visas for foreign workers can now be granted for up to ten years for certain types of investors and those with specialized degrees in fields including artificial intelligence. Foreign ownership rules have also been relaxed, scrapping the requirement that boards be majority Emirati and chaired by a national, thereby effectively allowing for full foreign ownership. While the moves significantly open up investment opportunities, removing the need for Emirati representation within onshore companies will challenge the business models of the UAE’s network of free trade zones which have been so successful in creating the current business environment. The reforms are further supported by an investment programme from the Abu Dhabi National Oil Company (ADNOC) to boost economic growth after the pandemic. ADNOC will spend $43.6 billion over the next five years, including $1.36 billion for investments in over 400 local micro, small and medium sized businesses. The programme is an extension of investments that have seen $20.7 billion ADNOC has pushed into the UAE’s economy. Infrastructure development is not being neglected either. Work is underway on the UAE’s first national rail network, although no completion date has been announced. The realisation of a domestic rail network has the potential to improve domestic logistics opportunities in the Emirates, particularly as the first stages focus on introducing freight capacity linking Jebel Ali Port, Khalifa Port and the Port of Fujairah to industrial hubs in Abu Dhabi, Dubai and Ras Al Khaimah. The development could see as much as 60 million tons of freight move from sea and road to the rail network annually. Saudi Arabia meanwhile faced a number of challenges in 2020 as it fought to contain both the Covid-19 pandemic and oil market turmoil. The Kingdom entered 2020 in an already vulnerable economic situation with data from Saudi Arabia’s General Authority for Statistics showing GDP contractions 28 MARCH 2021

LIFTING LOGISTICS Logistics executives plan to harden their operations and build supply chain resilience in 2021 by focusing on businesscontinuity planning; tech and automation improvements.

towards manufacturing and construction. The construction sector in particular has seen strong growth, particularly in support of projects related to the 2022 World Cup, and there are further plans for development projects in telecoms and infrastructure. Qatar has the highest per capita GDP of all 50 emerging markets measured in the Index, and positive signs from its manufacturing sector in the second half of 2020 suggest it is on a pathway to growth in 2021. The country’s PMI rose from 51.5 in October to 52.5 in November 2020 to suggest growing momentum in the manufacturing sector as Covid-19 restrictions eased. Qatar’s Free Zones, including the Airport Free Zone at Ras Bufontas, directly

Challenges facing Saudi Arabia’s oil economy run deeper than pricing”

COVID-19 IS CHANGING HOW BUSINESSES OPERATE

60% of logistics executives in the Agility Emerging Markets Logistics Index say the pandemic has resulted in permanent changes to the way their businesses operate globally or regionally.

About 25% said it’s too early to tell.

Only 14% say business will operate as usual, a sign the pandemic has made permanent changes in the way the global economy will move ahead.

beginning in Q3 2019. The IMF expected the Saudi economy to shrink 5.4% in 2020, while its Ministry of Finance forecasted a 12% budget deficit. Like its GCC neighbours, however, the strength of Saudi Arabia’s business and regulatory environment drives its performance in the Agility Emerging Markets Logistics Index, which sees the Kingdom retain its overall ranking of 6th. As social restrictions were introduced to supress the pandemic globally, demand for oil dropped significantly. The lower demand for oil saw prices collapse and changed the spending options available to the Saudi administration. Despite some success in efforts to diversify its economy, Saudi Arabia’s prospects in the medium-term are still linked to a wider global recovery and rising oil demand, according to the World Bank. Oil revenues account for around two thirds of the Kingdom’s exports, however data from Capital Economics illustrates that Saudi Arabia’s share of global exports fell to around 12% in 2020 from 30% a few years previously. The challenges facing the oil economy run deeper than pricing, and the expectation is that as spending is reduced due to lower state revenues and social restrictions are only gradually lifted, activity in the nonoil economy will remain depressed. The Kingdom, however, took steps to address the shortfall in hydrocarbon revenues by introducing and amending new and existing taxes during 2020. VAT was raised to 15%, significantly up from the 5% it was set at upon introduction in 2018. A living allowance offered to all public sectors workers was also scrapped, saving the Kingdom around $4.8 billion per year. Both moves are likely to weigh on private household spending but demonstrate the ongoing process of reforms in the Saudi state as it attempts to lessen its dependence on oil and expand other areas of its economy. Government spending will also be reduced to address the budget deficit following spending in 2020 equivalent to 12% of GDP. The year ahead will be challenging for Saudi Arabia as it seeks to continue its reform agenda. KSA’s recovery will be linked to global recovery and an increased demand for oil. The Kingdom’s $300 billion sovereignwealth fund will pump $40 billion into the domestic economy in each of 2021 and 2022, primarily to support real estate development in the tourism sector, a key component of the Vision 2030 plan. While there remains financial support for Vision 2030, certain projects are likely to be delayed, scaled back or even abandoned. meconstructionnews.com

ANALYSIS

Indeed, the plan to boost non-oil revenue to 1 trillion riyals in 2030, from 163 billion riyals in 2016, may now be out of reach. Many of the regulatory reforms and liberalization in the Vision 2030 plans though could be unaffected, potentially securing the Kingdom’s ability to continue improving Business Fundamentals. The year ahead may be decisive for the Kingdom’s transition and its pursuit of the Vision 2030 strategy. Job creation will be tested – unemployment and underemployment remain significant issues in a country where two thirds of the population are under 30 years old. The Kingdom’s “Saudization” plans could see up to 1.2 million foreign workers leave, opening up employment opportunities, although only provided businesses can weather the pandemic and its economic consequences and also pay the higher wages the local population would demand. Qatar maintains a Top 10 position due in large part to its business environment, although a two ranking position fall sees it rank 8th overall in 2021. The GCC state has faced challenges in recent years, including the Covid-19 pandemic as well as a dispute with neighboring states that isolated the nation from regional trade. Its economy is expected to contract by 4.5% in 2020 according to IMF data, while the 6.1% fall it experienced in Q2 2020 was the worst since 2012. Qatar’s ongoing economic challenges have hobbled growth in recent years – GDP expansion in 2019 was just 0.8%. Qatar’s relations with its neighbours remain strained but are normalising with the blockade implemented by neighboring states lifted in January 2021. Qatar proved somewhat successful in mitigating the effective end of trade between it and the UAE, Saudi Arabia, Bahrain and Egypt. The normalisation of relations is likely to be a gradual process, but is expected to further support economic diversification, bolstering the country’s nonoil GDP growth over the coming years. Qatar’s economy remains heavily exposed to the hydrocarbon sector. Commissioning of the Barzan natural gas facility is expected to positively impact growth in the coming years, while the expansion of the North Field gas project will boost gas output when it comes online in 2024. Qatar has left OPEC to allow it to focus efforts on natural gas, as well as lower tensions with its neighbors. It has also enacted diversification plans to lessen the dependence on hydrocarbon exports. The country’s non-oil economy now contributes a little more than half of all GDP, with Qatar directing investment meconstructionnews.com

MARKET OVERVIEW: AFTER A DOUBLE WHAMMY The Middle East economy was in full-year recession for 2020, as per IMF data, with GDP growth falling in all four quarters, writes Glasgow Consulting’s Vishal Pandey. Oil-exporting Gulf economies were subjected to a double whammy of lockdowns as well as a collapse in oil prices. The Saudi Arabian economy contracted at its steepest pace in Q2 2020 with -7% GDP growth, with recovery likely to begin only in Q2 2021. In October 2020, IMF projected the UAE GDP to contract by -6.6% in 2020 due to COVID-19 and lower oil production. Dependent on the speed of global recovery, growth is expected to reach 2.5% by 2022, supported by government recovery plans, higher oil revenues, and a boost from Dubai Expo2021 In Q3 2020, containment measures had been relaxed in most parts of the GCC, leading to the resumption of activities to some extent. This translated into a rapid quarter-over-quarter GDP expansion in Q3 2020. However, GDP growth, when measured against the same quarter of last year, remained in the negative territory in Q3 and Q4, given prolonged restrictions and their impact especially across sectors such as travel and tourism, hotels and restaurants, entertainment, and education. Demand is likely to improve with the lifting of lockdowns, but remain muted, on account of job losses and a dampened consumed sentiment. From

Q1 2021, we expect a positive rebound in GCC GDP, with GDP returning to full recovery by Q4 2021. The GCC car market experienced a dip of 70 to 80% drop in footfalls during the peak of the pandemic; however, there are signs of recovery happening from Q3 2020 and the market is expected to reach its pre-covid growth trajectory by last quarter of 2021. Globally the logistic cost of cargo movement in GCC is less given the subsidized fuel cost and low wages of drivers and since there is no other mode of land transportation like rail, the truck market in GCC is the backbone of transportation of goods within the GCC countries. During pandemic situation one of the hard hit sectors of the economy is the sale of commercial vehicles segment, however the recovery is expected to start soon with light trucks sales catching up faster than the medium and heavy truck segment due to the usage of light trucks in diverse sectors vis-a-vis heavy trucks, the growth in ecommerce, retail sales and last mile connectivity are major factors which would drive this growth. The heavy duty truck market is expected to bounce back with the opening of infra projects and tourism sector. One positive impact of the COVID crisis has been the evolving of new business models across sectors from automotive, healthcare to other consumer sectors, which has driven growth in online sales.

linked to Hamad International Airport, and the Port Free Zone at Umm Alhoul, connected to the Hamad Port, reported rising interest from logistics providers and companies operating in advanced technology, light manufacturing and the aviation sector during 2020. It was also announced that Volkswagen will deploy its first autonomous vehicle project in Qatar. There remain some challenges to navigate, however. In June, falling hydrocarbon revenues and the effects of the Covid-19 pandemic led Qatar’s Finance Ministry to instruct state funded government departments and institutions to reduce wage bills for foreign workers by 30%. This resulted in a combination of wage cuts and layoffs. Qatar’s population is made up of around 85% foreign workers. While initial fears that some Gulf nations could see populations fall by 10% as a result of such programmes in 2020, Qatar’s population shrank by a more modest 2.8% between March and November 2020. Turkey came close to achieving high income status in 2014 after years of solid growth. In the subsequent years however, regression has been consistent. This year, Turkey sees both its Domestic Logistics Opportunities and Business Fundamentals scores decline, although it did record an improved Business Fundamentals ranking position, rising two spots to 6th. Turkey stays in 10th overall, but its place amongst the world’s top 10 emerging logistics markets is increasingly more vulnerable each year. As the Covid-19 pandemic recedes Turkey will not be as well placed to deal with economic upheaval. Recent years have seen the foundations of the Turkish economy eroded, leaving it on shaky ground. There is distinct uncertainty amid rising inflation, growing unemployment and vulnerabilities in corporate and financial sectors, while instability in its neighborhood has led to rising political tensions. The impact of the Covid-19 pandemic has added to these uncertainties. Structural reforms are needed if the market is to return to the high growth rates of the early 21st century. To combat the pandemic, Turkey implemented social restrictions and testing procedures and expanded healthcare capacity which helped to contain the spread of the virus. While the economy saw deep contractions in the second quarter as a result of shutdowns, fiscal and monetary stimulus eased the impact. Goods exports are likely to play a central role in Turkey’s recovery an expected 5% GDP contraction in 2020, as external demand returns. MARCH 2021 29

FEATURE

MOVING FORWARDS Could the GCC sustain an expansion of the currently limited assembly lines in the region?

MADE IN THE GCC?

What is the potential for auto parts production in the UAE – and beyond?

he UAE isn’t what you would describe as a classical manufacturing hub but for many years it has been regarded as a vital link in the automotive industry’s global supply chain. As well as being home to major ports and industrial centres like Kizad and Jebel Ali, it also hosts thousands of trading and re-selling businesses that supply to the GCC and the nearby African markets. It is unsurprising then that most OEMs, parts, tyres and auto-tech companies choose to use the country as their regional base. If you want access to both the Middle East and Africa – and you are an automotive manufacturer – you probably need to be in the UAE. During last month’s Manufacturing in the UAE Automechanika webinar, Subhash 30 MARCH 2021

Joshi of Frost & Sullivan presented the case for local component assembly and the possibility of car prodution at the larger scale. “I would say it’s a very interesting question. This is a debate which we often have with investment authorities and private players,” he begins before revealing is roughly about 70 to 80% OEMs with the rest coming from the independent aftermarket. To Joshi, the thriving regional aftermarket powered by the UAE proves that the economics and demand are strong enough to support manufacturing. In order of importance and feasibility he lists brake shoes and brake pads, brake discs, wiper blades leaf springs, alloy wheels, filters and shock absorbers. “We have very closely studied the component market in GCC and identified almost 40 components which have the

The UAE has better infrastructure in place in comparison with the other countries”

potential to be highly dependent on the aftermarket requirement. The top eight components of the list can completely rely on aftermarket demand and serve not only the GCC regional requirement but the larger Middle East and Africa and requirement too.” He continues: “There are other components which are feasible like water pumps, oil pumps, fuel pumps, alternators, starter motors, etc, that are all feasible, but with a longer payback period.” While he says aftermarket demand alone can sustain the production of components, government and investor support could establish local vehicle assembly which would, in turn, ensure the long-term viability of the businesses within an automotive cluster. “The aftermarket is highly volatile and without having vehicle assembly it always meconstructionnews.com

FEATURE

becomes tough to have those requirements fulfilled,” he says. “However, when it comes to a region like GCC, which is very unique in many ways, potential manufacturers require support to make component manufacturing a mainstream business activity. Support always doesn’t mean government funding there are many other ways to incentivise investors to develop the required ecosystem.” Looking regionally, Joshi suggests that the potential for manufacturing is less clear, despite countries like Saudi Arabia encouraging local assembly in exchange for OEMS gaining easier access to the market. “I would say the UAE has a better infrastructure in place in comparison with the other countries in the region but on a more regional perspective we do not have required ecosystem in place. We do have commercial vehicle assembly in the region with about five to six operational assembly facilities, but those are mainly limited to SKD kits,” he explains. “But barring a few examples, they do not require support or the development of a full ecosystem. Looking at the Tier 1, 2 and 3 supplier’s mindset, they have always thought it’s very important to have upfront order intake levels that guarantee that your plant will remain operational and your costs are covered - but there are other ways of having this guarantee in place, especially for high consumption components like brake pads, shoes, wiper blades, etc,” he continues. “I will not get into the nitty gritty of it as we have limited time, however to address the question of what pieces of the ecosystem puzzle is missing, from my experience of sitting on both sides of the table - supporting local government as well as component manufacturers - I believe the key ones include a well-defined support policy by governments and semi-governmental bodies. We have many local entities offering support in bits and pieces, but when we talk about the entire ecosystem the equation changes, we need a national policy.” He adds that that such a policy would fix government support over the long-term plus make it easier to export your parts to other markets: “It should clearly mention that we will provide ABC support if you made XYZ criteria. They can provide you funding support as an incentive, loan or an equity partnership which if upon X percentage if you meet ABC criteria, then there can be export-based support which we have seen some developing countries provide to component manufacturers,” he explains. “For example, if you are targeting meconstructionnews.com

TYRE EXPORTS TO THE REGION Chinese tyre company Roadbot spent $600mn on its KIZAD facility, but many international tyre manufacturers, “don’t require a new plant and are happy to export to this region,” says Subhash Joshi.

the African market, then the government can look at having dedicated warehouses to avoid transit time delays and the product can be made available in just in time. Or if you export X percentage of volume, the support and incentives can become 2x or 3x times as much.” As Joshi alluded to earlier, he has very recent experience of how this support may work in practice; and says that one example is his work to see if the Saudi government can provide testing facilities for products to ease the cost of going to market with a new product. “We were having a discussion with Saudi government in 2018 about setting up government labs and testing facility as

We can look at bringing in policies which give you a duty advantage”

testing tools are a big expense (depending on what component we are talking about. For smaller companies having those expenses really impacts their balance sheets.” Joshi also suggests that fleets should be rewarded for supporting locally-sourced parts over imports. “For an example, if, as a fleet operator, I am buying parts which are manufactured locally in UAE and Saudi, in other regions, then I should also get preference in bidding for government projects (to a 10% and 20% level) - because that helps me (as a fleet) and gives an incentive to a parts supplier to put their facility in the region or in the UAE. And if we have three or four such facilities which meets these criteria, then we can look at bringing in policies which can give you duty or tariff advantage. We have seen that happening in Saudi Arabia with the anti-dumping duty, which came in a couple of years back - and that was really supported in the local market.” With many Tier 1 manufacturers barely reaching 60% of their capacity in their existing factories, Joshi says that smaller companies are more likely to want to open up manufacturing. “We are very much inclined towards only talking to large Tier one suppliers who have already established themselves globally. We won’t get every large manufacturer of every component category to come and set up their factory. If we are serious about developing this ecosystem then we need to talk to Tier 2, Tier 3 and smaller players who can really make a difference.”

OPEN FOR ASSEMBLY The team gathers for the first Saudi-built Renault trucks made by Arabian Vehicles & Trucks Industry Ltd (AVI), a joint venture between Zahid Tractor & Heavy Machinery Co. Ltd and Volvo Trucks Corp.

MARCH 2021 31

PARTING SHOT

SO WRONG, IT’S RIGHT

Skoda takes on the drivers heading the wrong way Warning! A wrong-way driver is headed your way!” Traffic reports about wrongway drivers are a surprisingly frequent occurrence. On German radio stations alone, some 2,000 such warnings are broadcast each year. And much too often, these incidents lead to critical situations – including serious and even fatal accidents. With its cloud-based wrong-way driver warning system, Bosch has developed a solution that warns both the wrong-way driver and all road users at risk of the impending danger within seconds – much faster than traffic news on the radio. Now ŠKODA is the world’s first automaker to opt for the Bosch wrong-way driver warning system. Thanks to a new infotainment app, ŠKODA drivers will receive the lifesaving warning directly via the display in their vehicle’s cockpit. “Our goal is to put the wrong-way driver warning system in every car . Every death, every injury caused by wrong-way drivers is one too many,” says Dr Mathias Pillin, president of Bosch’s new Cross-Domain Computing Solutions division.

Starting in the first quarter of 2021, ŠKODA will offer the wrong-way driver warning system in numerous models, such as the ŠKODA SUPERB, SCALA, KAMIQ, KAROQ, and KODIAQ, equipped with top infotainment systems. Other vehicle models are scheduled to follow before the year is out. “Increasing safety on the road is an important goal for ŠKODA. Our new app called Traffication with wrong-way driver warning brings us a step closer to achieving it,” says Michal Vondra, product manager for the Traffication app at ŠKODA. Accidents caused by wrong-way drivers are fortunately rare, but when they do happen, they usually have serious consequences. In most cases, however, the warning of the unforeseeable danger comes too late: one-third of such incidents generally end after just 500 meters – in the worst case, with fatalities. With Bosch’s cloud-based warning system installed directly in the head unit of ŠKODA vehicles, the two companies now want to further reduce the number of accidents caused by wrong-way drivers. As a vehicle approaches a freeway entrance or exit, the system automatically sends its

current anonymised GPS position to the cloud. In the Bosch cloud backend, the software then compares the vehicle’s current direction with the permitted direction of travel. If these two pieces of information clash, the system will alert the wrong-way driver to their mistake by flashing a warning on the display. The distinctive feature of this solution is that the warning occurs within just a few seconds. In the vast majority of cases, this is before the driver even gets on the freeway. In addition, Bosch and Škoda are planning that the app will also immediately warn all oncoming road users who are connected and potentially at risk. This feature should be available later this year. “The more vehicles connected to the Bosch wrong-way driver warning app, the closer-knit the invisible safety net will be,” Pillin says. Once the vehicle leaves the entrance or exit area of the freeway, the data exchange between the vehicle and the cloud is terminated. Besides equipping ŠKODA vehicles with the wrong-way driver warning system, Bosch is in talks with other automakers to make it a feature in more and more vehicles.

NEXT ISSUE: BECOMING UBER-GREEN, NISSAN GREAT SPORTS CAR DESIGNER, KEEPING BODY SHOPS GOING, AND MUCH MORE!

32 MARCH 2021

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