VEHICLES/ TECH / TRANSPORTATION/LOGISTICS
O9O/SEPTEMBER 2O21
MIDDLE EAST
LI CENSED BY D U BAI D EVELO PM ENT AU TH O RIT Y
E H T G N I T T I H T E E L F R U O Y IS ? H C T I
W S C I R T C E L E d a shock with the guide togeyvoeuryr tnheinxgt rnin Avoi u t t u o b a now k o t d e e n you tric c e l e t e e fl f o generation
O E D O R O C DS BRON E W BA D L A N
N STIN G THE L AUNCH O C REGION -TE N O R B FU L L AHEAD OF
CONTENTS
CONTENTS FEATURE
16 / HITTING THE ELECTRIC VEHICLE SWITCH Volvo Trucks on whether it is the right choice for your fleet.
ALSO THIS ISSUE … NETWORK
06 / NEWS FROM THE MONTH Western Bainoona Group agrees Etihad Rail deal while the nominations open for the new MAT Awards. LAUNCHES
10 / BUCKING BRONCO The new Ford Bronco is tested in the region ahead of the range’s full regional debut.
06
10
12
20
26
30
INTERVIEW
12 / COVID-19 IMPACT Glasgow Consulting Group’s Vishal Pandey looks at the post-Covid-19 outlook for the auto trade in the region. INTERVIEW
20 / STATE OF THE INDUSTRY Moura Hedna, president, UD Trucks MEENA, on the commercial vehicles industry going into 2022. UPTIME
26 / FLUID PROGRESS Fausto Lupone, Automotive Sector Expert at PETRONAS Lubricants International looks at a rich heritage in finding the winning formula. RESEARCH
28 / THE GREAT DELAY New research proves it would take decades to feel the benefit of banning fossil fuels. SURVEY
30 / TRUCK DRIVER STRESS Landmark Continental study finds that one-in-three UAE truck drivers say stress is harming their personal lives.
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SEPTEMBER 2021 01
WELCOME
GROUP MANAGING DIRECTOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5483 MANAGING PARTNER VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5472 DIRECTOR OF FINANCE & BUSINESS OPERATIONS SHIYAS KAREEM shiyas.kareem@cpitrademedia.com +971 4 375 5474
TIME TO REWARD ALL YOUR GOOD WORK? Despite the easing of lockdown, it feels like the industry hasn’t yet clicked into gear as the end of 2021 suddenly seems near. Certainly, it has felt like the summer slowdown from Ramadan to Eid and then August’s usual holiday breaks for many have seen us slip suddenly into the Autumn. Hopefully this means that the treacherous heat of the middle months can finally abate and we can all start hitting top speed. Having said that, we opened the nominations for our brand new awards, the Machinery and Truck Awards (MAT Awards 2022) in August. Held on 25 January, 2022 in collaboration with Construction Machinery Middle East, this brand new addition to your calendar has been introduced to recognise all the amazing work that has been done over the past 18 months by everyone involved in those fields – despite one of the most challenging periods since the economic collapse at the end of the noughties. I have been personally involved in both since that big crunch and it is exciting to finally be able to recognise excellence in the market. It will also offer fleets, operators, contractors, distributors and manufacturers an opportunity to identify peers and clients that they believe are setting the highest standards for us all to follow. Most importantly of all, in a competitive and contract-driven environment, the MAT
Awards are a snapshot of the strategies, people and products that are enabling progress in efficiency and safety – and bringing best-ever uptime to the market. Given the areas where the two publications cross-over, it makes sense for this inaugural awards to focus on heavy duty and off-road (but I am exploring the possibility of looking at both fleet and T&L down the line) with the awards celebrating the champions the heart of construction, minining and quarrying and heavy industry. Given the time that we are in, I am sure contractors and fleets who have excelled in the midst of Covid restrictions and the industry’s dramatic re-set will be high on your own personal list of worthy winners. The awards will also bring out the manufacturers and dealers whose equipment leads the way – whose out-of-the-box innovations deliver critical on-site commercial ‘edge’, day in, day out. To ensure complete objectivity, the Awards will be judged by a mixture of public votes and a specially recruited judging panel; they are influenced by one criteria only – the informed decision that they are truly the best-in-class. Ultimately, I am very excited to be able to launch these awards during a moment of huge change for all those involved in these industries. In whatever field you are in, if you are setting new standards of expertise, it is time to reward that excellence.
STEPHEN WHITE EDITOR, TRUCK&FLEET ME STEPHEN.WHITE@CPITRADEMEDIA.COM 02 SEPTEMBER 2021
PUBLISHING DIRECTOR ANDY PITOIS andy.pitois@cpitrademedia.com +971 4 375 5473 EDITORIAL EDITOR STEPHEN WHITE stephen.white@cpitrademedia.com +44 7541 244 377 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 MARKETING & EVENTS EVENTS & CONFERENCE PRODUCER PAUL GODFREY paul.godfrey@cpitrademedia.com +971 4 375 5470 EVENTS EXECUTIVE MINARA SALAKHI minara.s@cpitrademedia.com +971 4 433 2856 SOCIAL MEDIA & MARKETING EXECUTIVE GLADYS DSOUZA gladys.dsouza@cpitrademedia.com +971 4 375 5478 CIRCULATION & PRODUCTION PRODUCTION MANAGER VIPIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 DATA & DISTRIBUTION MANAGER PHINSON MATHEW GEORGE phinson.george@cpitrademedia.com +971 4 375 5476 WEB DEVELOPMENT SADIQ SIDDIQUI ABDUL BAEIS FINANCE 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. CPI Trade Media. PO Box 13700, Dubai, UAE. +971 4 375 5470 cpitrademedia.com © Copyright 2021. All rights reserved.
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Date
25 Jan
Venue
TBC
TBC / DUBAI / UAE
Celebrating the truck and machinery industries, commending organisational and individual excellence 25 January 2022
About
The Event
Judged
Winning an inaugural MAT Award will be a recognised badge of excellence amongst clients and peers.
Built around the concept of transparency and clarity, the awards are decided upon by an independent panel of judges from across the spectrum of the industry.
By Professionals
These awards celebrate the champions whose vehicles and machinery are at the heart of every construction. They award the manufacturers and dealers whose equipment leads the way – whose out-of-the-box innovations deliver critical on-site commercial ‘edge’, day in, day out. They honour the achievements of contractors and fleets who excel in the midst of Covid restrictions and the industry’s dramatic re-set. The inaugural Machinery and Truck Awards is brought to you by Construction Machinery ME and Truck & Fleet ME, two of the leading trade titles in the region. Most importantly of all, in a competitive and contractdriven environment, the MAT Awards are a snapshot of the touchstone products enabling efficiency and safety – and bringing best-ever uptime.
Given that the awards are targeted at the Construction Machinery & Heavy Fleet industries; the editorial team take considerable efforts to ensure that nominees are assessed by the appropriate persons who have a chance to assess nominations both individually, and in a group discussion. This ensures that winners are chosen on the basis of the work they do over the course of the year, and on the reputations they develop with the industry. At CPI Trade Media, we are proud to state that our awards are unbiased, transparent and fair, with no external influences on the decision-making process.
To ensure complete objectivity, the Awards are judged by a mixture of public votes and a specially recruited judging panel; they are influenced by one criteria only – the informed decision that they are truly the best-in-class.
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SAY STUDIO’S SEXTON: WE
Marjan launches world’s largest Hampton by Hilton hotel on Al Marjan Island
ARE WITNESSING A DRAMATIC RISE IN BIOCHEMICAL INFRASTRUCTURE IN THE UAE
This is really interesting if it ends up being a longterm trend for RFPs in the pharma/biochemical sector in the UAE. Even more so, if they continue to be driven
INFRASTRUCTURE
by the private sector. The
Empower wins district cooling contract for Marsa Al Arab
region has arguably been left behind when it comes to investment in locally based
INTERVIEW: The Next Step – Interview with Select Group CEO Rahail Aslam
testing and research and development but the past 18 months of the Coronavirus (Covid-19) pandemic have shown that this is very much a national security issue of
CONSTRUCTION
achieving self-sufficiency.
TRSDC awards contract finalising design of Coastal Village community centre
It is also, handily, a neat fit for the UAE’s aspirations of a non-oil and knowledge-based economy, as Matthew Sexton suggests. Development of infrastructure in the sector is also necessary to support the burgeoning healthcare
CONSULTANT
facilities that we have seen
Alian Industry Company to begin trial operations of 3D concrete panel manufacturing
pop up over the last decade or so. I also think that the UAE can build on its role as an international hub for the pharmaceutical and medical sectors which has seen its logistical capability enhanced since the start of
MACHINERY
SEWA completes 50% of clean water transfer pipeline
04 SEPTEMBER 2021
PROJECT PROFILE: Restoring Basra
the pandemic. Name withheld by request
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Date
30 Nov
DUBAI / UAE
The best practices of the regional work-at-heights sector and next steps in its evolution 30 November 2021
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A&H Summit
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The second edition of the Access & Handling Summit returns this year to explore deeper into key issues concerning the sector.
The one-day event will include panel discussions, presentations and case studies on the latest technical and engineering solutions, the best and most up-to-date safety practices and the future direction of the work-at height industry. The exhibition and demonstration of the latest equipment in the sector – a highlight of the inaugural event – will be further bolstered by the presence of the prominent manufacturers and machines.
Agenda
take a comprehensive look at the region’s access and handling sector, an integral part of its construction landscape, spearheading the charge
With the aim to be an endorser of safety and best practices for the industry, the second edition of the event will seek to bring the experts on one platform to share their ideas and vision, and to present the latest advancements in safety, automation technology and new machinery to a targeted audience of key end-users and important industry stakeholders.
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NETWORK
WBG AGREES ETIHAD FREIGHT SERVICES DEAL / MAT AWARDS NOMINATIONS OPEN / AFA OPENS FIRST-OF-ITS-KIND LCV SHOWROOM / HONDA OFFERS FREE SAFETY INSPECTIONS
NETWORK
WBG agrees freight services deal with UAE’s National Rail Network THE AGREEMENT INCLUDES FREIGHT SERVICES AND TRANSPORT OF CONSTRUCTION MATERIALS FROM FUJAIRAH TO INDUSTRIAL CITY ABU DHABI AND DUBAI INDUSTRIAL CITY LOGISTICS Western Bainoona Group (WBG) has reached agreement with Etihad Rail for freight services which will see the movement of construction materials from its facilities in Fujairah to Abu Dhabi and Dubai. The partnership is one of Etihad Rail’s largest commercial partnerships for Stage Two of the UAE’s National Rail Project. 4.5 million tonnes of WBG’s aggregates will be transported annually on 643 trains from the Group’s facilities in Fujairah to logistics hubs in the Industrial City of Abu Dhabi (ICAD) and Dubai Industrial City. The agreement comes following the directives of His Highness Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, chairman
of the Abu Dhabi Crown Prince Court and chairman of Etihad Rail, “to enable a sustainable and efficient mode of transport that bolsters the whole of the UAE’s economy”, explained the rail network operator in statement. The length of each train will be around one kilometre. Etihad Rail is allocating 70 wagons for each train, with an approximate capacity of 7,000 tonnes per trip. The partnership will reduce road traffic by 120,000 truck trips annually. “Western Bainoona Group is honoured to become one of Etihad Rail’s partners. We look to leverage the freight solutions provided by the UAE National Rail Network, bolstering and facilitating trade between the emirates,” said Mohammed
Khalfan Al Hameli, chairman of Western Bainoona Group. “In sum, the network will enhance the capacity of companies operating across the UAE. Companies can develop their business by redirecting assets and reducing transportation costs, efficiently utilising their time and resources to become active players in the development of the UAE.” Mohamed Al Marzooqi, executive director, Rail Relations Sector, Etihad Rail, added: “Etihad Rail is pleased to sign the one of the largest agreements for Stage Two of UAE National Rail Network, adding Western Bainoona Group to our list of partners. We will be providing fast, smooth, and integrated transport solutions
for the company’s products from Fujairah to the logistics hubs in ICAD and Dubai Industrial City, strengthening the Group’s business. “Etihad Rail delivers costeffective and time-efficient transport solutions, reducing road traffic in the UAE. In doing so, we protect the environment in reducing carbon emissions. Additionally, we deliver significant benefits for the logistics, infrastructure, and transport ectors across the UAE.” The UAE’s National Rail Network is one of the largest infrastructure projects in the UAE. Construction by Etihad Rail of facilities at ICAD and Dubai Industrial City continues, providing advanced logistical infrastructure in both Abu Dhabi and Dubai.
“WE EXPECT THE UAE AND KSA TO BE BACK ON TRACK BY 2022,” SAYS GLASGOW CONSULTING GROUP’S VISHAL PANDEY (PAGE 12)
06 SEPTEMBER 2021
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NETWORK
AL MASAOOD AUTOMOBILES TURNS TO KANARI RETAIL
NOMINATIONS NOW OPEN FOR INAUGURAL MACHINERY AND TRUCK AWARDS EVENT
Nominations for the inaugural Machinery and Truck Awards are now open to the industry. Set to take place on 25 January, 2022, the MAT Awards are brought to you by Construction Machinery ME and Truck & Fleet ME, two of the leading trade titles in the region. Winning an inaugural MAT Award will be a recognised badge of excellence amongst clients and peers. Most importantly of all, in a competitive and contract-driven environment, the MAT Awards are a snapshot of the touchstone products enabling efficiency and safety – and bringing best-ever uptime. These awards will celebrate the champions whose vehicles and machinery are at the heart of every construction, as well as manufacturers and dealers whose equipment providesc a critical on.-site comercial ‘edge’, day in, day out. They will honour the achievements of contractors and fleets who excel in the midst of Covid restrictions and the industry’s dramatic re-set. To ensure complete objectivity, the Awards are judged by a mixture of public votes and a specially recruited judging panel; they are influenced by one criteria only – the informed decision that they are truly the best-in-class.Entries from manufacturers, dealers, safety specialists, after-sales centres, sustainability leaders, fleet managers, purchasers – and disruptors, will all be accepted across the categories. “We are very excited to be able to launch these awards during a moment of huge change for all those involved in these industries. or manufacturer,” said Stephen White, editor, Truck & Fleet Middle East magazine. meconstructionnews.com
Al Masaood Automobiles has recruited Kanari, a Dubaibased experience management technology company, to help it to use real-time customer feedback to drive improvements to its customer experience (CX). Kanari’s experience measurement solution allows Al Masaood Automobiles to engage with a significantly higher number of customers than was previously possible and gives teams across the entire organization the ability to recover dissatisfied customers in real-time thereby reducing the business impacts of negative customer experiences. Furthermore, the insights uncovered by Kanari give the team
a better understanding of both the customer and the market, which in turn significantly helps with defining training programmes and internal improvement plans to ensure customer needs are always being addressed. “At Al Masaood Automobiles we have all-encompassing ‘Customer First’ approach, therefore we ensure
that the whole organisation has visibility on what our customers think, feel and, say,” said Stephan Davies, GM - Customer Experience & Network Development, Al Masaood Automobiles, said. “With Kanari we have digitised and automated our systems to receive real-time insights from our customers. Thanks to their innovative platform, we are communicating with a very wide customer base easily and listening to their feedback to better understand their needs and taking action to improve their customer journey. Our cooperation has allowed us to tailor-make our customer experience systems and dashboards to holistically measure customer experiences across various touchpoints.”
ALFA ROMEO NOW AVAILABLE IN EKAR FLEET RENTAL ekar, the Middle East’s first and largest personal mobility company, has welcomed Alfa Romeo to its fleet, with the Giulietta Veloce now available to rent daily and weekly via the ekar App! Veloce in Italian means ‘fast and speedy’, so drivers are in for an exciting ride with the first premium sports car to become available to rent daily and weekly on ekar!
Prices start from 249 AED per day and include 150 KM daily mileage, comprehensive insurance, and roadside assistance. Own the road this summer with ekar, visit your dream beach staycation, adventure across the Emirates, or simply enjoy a sporty drive around Dubai. The Giulietta Veloce is packed with premium sports trim for an even bolder look, plus technical-racing
features for a no-compromise stance on the road. These include 17” alloy wheels, sports suspensions and bumpers, side skirts with exclusive red Alfa molding, a Brembo brake system with stylish red calipers, and oversized tailpipes. “Convenient, flexible, and seamless - enjoy the premium and sporty ride of the Alfa Romeo Giulietta Veloce via the app today,” said ekar.
SEPTEMBER 2021 07
NETWORK
HONDA OFFERS FREE DELIVERY INSPECTIONS HOME DELIVERY
The official distributor of Honda in the UAE launched an initiative to support delivery riders across Dubai and Abu Dhabi during the month of August. Honda provided delivery riders who visited Al-Futtaim’s Trading Enterprises’ Umm Ramool, Dubai and Umm Al Nar, Abu Dhabi service centers, free safety checks including but not limited to, checking and adjusting oil and fluid levels, lubrication of chain, brakes and clutch adjustment, switches and lighting function with bulb replacements where necessary to ensure their motorcycles are running as efficiently and safely as possible. From 14–19 August in Dubai and 21–26 August in Abu Dhabi,
delivery riders on any brand of commercial motorcycle could have their bike inspected by experienced Honda factory trained technicians while receiving a complimentary pre-packed meal as they wait. Each appointment was completed in less than 30 minutes to ensure minimal disruption to their schedules. “We feel privileged to support
the local community of riders in the UAE,” said Rhett Maxwell, Honda UAE’s General Manager at Al-Futtaim’s Trading Enterprises. “We are lucky to live in cities that offer wonderful convenience across the UAE but must always remember the dedicated riders who are braving the busy roads everyday to ensure we get our deliveries. “Honda’s complimentary safety checks and meal are a small gesture from us to let riders know we recognise their hard work and diligence.” Maxwell added, “At Honda, we are proud to embody Al-Futtaim’s brand values of being a force for good with this activation and look forward to supporting delivery riders across Abu Dhabi and Dubai.”
KUWAIT TO BUILD REGION’S FIRST EV CITY ELECTRIC VEHICLES Kuwait authorities have announced plans to build EV City, which is billed as the region’s first city that exclusively cater to the needs of electric vehicle manufacturers. According to a report by Reuters which cited the Kuwait Ports Authority (KPA)
general manager Yousef Al Abdullah Al Sabah, the design and construction tendering process for the proposed EV City will begin during the 2021/22 fiscal year. The announcement is said to follow the sourcing of approval for the project from the KPA. The KPA will provide all port
and logistics services to electric car companies, the report said. Sabah noted, “Electric car makers do not use local distributors or dealers and sell their vehicles directly to consumers.” He added that it was common for ports to provide certain infrastructure to manufacturers.
TOYOTA CARE LAUNCHED IN UAE SERVICING
To provide its customers with the ultimate peace of mind and the highest resale value for their Toyota, Al-Futtaim Toyota has launched a complete set of aftersales care and solutions, Toyota Care. Quality service is key for pre-owned cars, especially during hot summer days, as it ensures the safety of customers and preserves the value of the vehicle. AlFuttaim Toyota encourages customers to avoid compromising their Toyota’s service and continue to put their trust in Toyota Care that provides the highest levels of quality and convenience. Today, the UAE market offers countless independent service workshops and dealers, which increases the risk of bad quality service, uncertified service, and inexperienced automotive technicians, imposing a serious threat to owners’ safety and their Toyota’s aftersale value. The Toyota Care service program helps Toyota customers eliminate this risk by providing international certified service, trustworthy maintenance that preserves aftersale value, unmatched expertise and experienced technicians, and manufacturing quality with original genuine Toyota parts. Andy Barratt, managing director of Al-Futtaim Toyota and Al-Futtaim Lexus, said: “The demand for pre-owned has increased immensely in the past few years, and both dealers and owners are investing heavily to ensure the best resale price for the highest value. Toyota Care guarantees the highest service quality in the UAE and we strongly encourage our customers to take advantage of this services.”
INSIDE THIS ISSUE: THE AUTOMOTIVE MARKET IN 2021 – SO FAR, MOURA HEDNA INSIGHT, HITTING THE ELECTRIC SWITCH, AND MUCH MORE!
08 SEPTEMBER 2021
meconstructionnews.com
NETWORK
FIRST USED LCV SHOWROOM OPENS IN DUBAI
AD PORTS REACHES COMMERCIAL AND RETAIL MILESTONE AT RAHAYEL AUTOMOTIVE & MOBILITY CITY
RETAIL Al-Futtaim Automotive has unveiled a first-of-its-kind showroom in the UAE dedicated to pre-owned light commercial vehicles (LCVs). Located in the emirate of Ajman, the newly opened showroom “offers a variety of market leading LCV brands” within a 2,721 m² facility that has enough space to exhibit 30 vehicles on display at once. Providing further
convenience and peace of mind for customers, the showroom will also feature a state-ofthe-art service facility, said the firm. The showroom offers light commercial vehicles from leading automotive brands including Toyota and RAM, as well as several more as the UAE witnesses demand for these vehicles that have become the back-bone of any business or service industry. This new expansion showcases Al-Futtaim’s
entrepreneurship and robust customer-centric approach as it responds to the changing needs of its customers, claims the company. The facility will support more than 50,000 SMEs currently operating in the Northern Emirates. Andy Barratt, managing director Al-Futtaim Lexus and Al-Futtaim Toyota said: “The Ajman facility is not just a first-of-its-kind preowned LCVs showroom, it is a testament to Al-Futtaim Automotive’s customer focus.”
LOGISTICS
Abu Dhabi Ports has announced the completion of 1.38 million sqm of commercial and retail areas at Rahayel Automotive and Mobility City by ZonesCorp, which is part of the Industrial Cities & Free Zone Cluster of Abu Dhabi Ports, and one of the largest economic zone operators in the UAE. In a statement, Abu Dhabi Ports said that Rahayel City is part of its efforts to create integrated opportunities and added value to the nation’s automotive industry. It is the first integrated hub for the automotive industry in the region and can accommodate a full range of auto-related businesses and supporting services. Featuring showrooms, service centres and workshops, auction houses, and sector-based regulatory and governing bodies, the new development is also home to a vehicle test track, an inspection facility, and an auto training centre. Firms will be able to utilise the hub’s optimised integrated ecosystem through a short, medium, and long-term lease agreements that enable accurate forecasting of cost and return-on-investment, the statement said. The automotive city also offers onestop-shop services to fast track approvals and speed up the setting up process. Abdullah Al Hameli, head of the Industrial Cities and Free Zone Cluster, Abu Dhabi Ports said: “Abu Dhabi Ports is creating new opportunities for businesses by bringing together various elements of the auto industry and take advantage of Abu Dhabi’s strategic location.” meconstructionnews.com
NAKHEEL UNVEILS BUS PLAN FOR NEW SOUK FLEET
Dubai-based developer Nakheel has revealed the bus operating timetable to mark the opening of the first phase of its new Deira Islands waterfront souk and marketplace development, Souk Al Marfa. The project’s first phase features 400 stores across various categories in a fully air-conditioned complex stretching 1.9km along the waterfront. Souk Al Marfa also has 4,000 parking spots and access to public transport, with RTA buses from the nearby Gold Souk daily from 6am to 11pm. The bus service is free until September 1, Nakheel said, after which regular fares will apply. The first retail destination on Deira Islands, the project has been designed as an indoor marketplace, bringing together businesses from local and international backgrounds in the form of small kiosks, retail stores, showrooms and street food markets.
Nakheel added that the project’s location on Deira Islands puts it a stone’s throw from Dubai’s traditional trading hubs. Souk Al Marfa is also within easy reach of hotels such as Riu Dubai and the soon-to-open Centara Mirage Deira Islands Beach Resort. Free shuttle buses have also been arranged to and from key Deira hotels – Hyatt Regency, ibis Dubai, Pullman Creek and Sheraton Creek – every two hours from 9.30am-8.30pm. Omar Khoory, chief assets &
hospitality officer, Nakheel, said: “The opening of Souk Al Marfa is an exciting milestone for the UAE, Dubai and Nakheel, bringing us a step closer to cementing Dubai’s position as the world’s third-largest re-exporting hub. Souk Al Marfa provides affordable growth opportunities to traders across the country, with the potential to ship and import directly to its shops and pavilions, and promises a diverse, large-scale shopping experience for customers.”
SEPTEMBER 2021 09
LAUNCHES
ALL-NEW BRONCOS SET TO ARRIVE IN SHOWROOMS LATER THIS YEAR ACROSS THE MIDDLE EAST / 2023 NISSAN Z WILL IS THE ‘PURE EXPRESSION OF THRILL’
LAUNCHES BADLANDS BEATEN 50oC SUMMER TESTS
Ready to join the rodeo THE FORD BRONCO BADLANDS TESTED TO ENDURE THE HARSHEST CONDITIONS IN THE MIDDLE EAST AHEAD OF FULL RANGE DEBUT LATE-2021 Ford has confirmed that the latest models in its Bronco range will receive their UAE debut this year. Ahead of unleashing the newest ‘Built Untamed’ Ford Bronco later this year, Ford’s Middle East team of specialist engineers have been busy ensuring it is ready to take on the region’s toughest conditions and its most demanding drivers. The first 2021 Bronco – a four-door model in Badlands trim – arrived several months ago, destined for a life of desert and hot-weather testing in the hands of the Dubaibased Ford engineers.
10 SEPTEMBER 2021
Summer temperatures in the Middle East regularly soar to over 50 degrees Celsius, making the desert conditions particularly brutal on the performance of vehicle powertrain and airconditioning systems. And while the Bronco was engineered and tested by teams across the globe, it’s the particular nature of the conditions in the Middle East that make testing here so vital to the success of vehicles sold in the region. “The lead engineering teams have done a great job in developing the all-new Bronco,” said Mike Chavez, Lead Vehicle
Technologist for Ford International Markets Group (IMG). “But it’s important that we get out and push the vehicle to its limits to ensure that it not only meets our requirements but those that our customers have too.” Every test vehicle is fitted with thermal sensors to monitor under-bonnet and in-cabin temperatures. The team also taps into the vehicle’s onboard systems to gather data during a series of test drives which, in the Bronco’s case, included a city test drive, a cross-country mountain drive, and several desert specific tests. Built
ready for adventure and with rugged durability at its core, the Bronco was engineered to give customers to the confidence to go over any-type of terrain with its new G.O.A.T modes. “Each mode just adds more capability to the vehicle, and it’s been a pleasure to drive. We’re engineers but we’re enthusiasts too, and I think customers are going to be impressed with the balance of the car. You can drive it every day and be totally happy driving on the streets and if you want to take it out in the desert, it will transition right from one to the other seamlessly. It
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LAUNCHES
7TH HEAVEN FOR NISSAN FANS
2023 NISSAN Z TEASED FOR NEXT YEAR
POINT AND GO The suspension tuning, the approach and departure angles and the power means you can point and go with the Bronco wherever you may want to go.
VITAL TESTING The Bronco was engineered and tested by teams across the globe, but conditions in the Middle East makes testing here vital to the success of vehicles sold in the region, says Ford.
is just an amazing car to drive.” added Chavez. “The suspension tuning, the approach and departure angles and the power of the vehicle – it’s all there when you want it and need it. You don’t have to think about it: you can just point the Bronco where you want it to go and it will just make it happen. It’s just a lot of fun.” The vehicle features Bilstein position sensitive
monotube shocks, stabiliser bar disconnect, front and rear locking differentials. “And for an even better experience in the wild, enjoy a full range of interior features from a sparse vinyl interior to a leather technology packed option,” says Ford. The all-new Bronco twoand four-door models arrive in showrooms later this year across the Middle East.
Developed by a passionate team of designers and engineers, the all-new Z represents an approachable sports car for the modern age – with an unmatched 50-plus year heritage and global fan base. “Z is the pure expression of thrill. It is Nissan’s passion wrapped up on four wheels,” said Ashwani Gupta, representative executive officer and chief operating officer, Nissan Motor Co., Ltd. “The new Z retains its authenticity as a pure sports car to keep you connected to the road while bringing in the latest modern technologies to make sure the car can help keep you connected to your life.” The all-new, seventh-generation 2023 Z, which drops its numerical prefix in the U.S. for the first time, is scheduled to go on sale in spring 2022. The 2023 Z’s 3.0-liter V6 twin turbo engine adds a significant bump in power output over the previous generation 370Z. The engine is rated at 400 horsepower at 6,400 rpm and 475 Nm of torque starting from 1,600 to 5,600 rpm. With an increase of 68 horsepower and a 30 percent increase in torque, the engine is designed to deliver a sharp, yet smooth response to the driver’s input, along with an estimated 15 percent improvement in 0 to 100 kph acceleration. “Simply put, our goal is to make this the best Z yet, period. With each
generation, we raise the bar, pushing the limits of Z and continuing to tap into the human instinct for that next thrilling journey,” said Hiroshi Tamura, chief product specialist of the new Z. To achieve a marked increase in horsepower and torque, and to deliver sharp response, small-diameter turbochargers were adopted, as well as a turbo speed sensor to ensure the capabilities of the turbos are fully utilized (max spooling speed). The twin turbos balance power output and response time, while the use of an electronic variable valve timing (e-VVT) intake valve system ensures optimum response, adjusting the intake valve timing on-the-fly to achieve excellent response and fuel efficiency in a variety of driving scenes. The 6-speed close-ratio MT includes an EXEDY high-performance clutch. As a physical touch point between driver and Z, the shifter glides to the next gear, almost “instinctively, with minimal effort”. SPECIFICATIONS Engine
3.0-liter V6 twin turbo
Power
400 hp @ 6,400 rpm
Torque
475 @ 5,600 rpm
Transmission 6-Speed Drive
RWD
POWER BUMP 400 BHP
SPECIFICATIONS Engine
2.0l Turbo Inline-4 Gas
Displacement
2.0 L/122
Power
250 hp @ 5500 rpm
Torque
280 lb-ft @ 3000 rpm
Transmission
8-Speed
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WHERE ARE WE NOW? Glasgow Consulting Group’s Vishal Pandey looks at the post-Covid-19 outlook for the region
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t is easy to sympathise with Glasgow Consulting Group’s automotive market expert Vishal Pandey. It is his job to understand what is going on in a market that remains deep in shock from the Covid-19 pandemic and the effects it has had on the sales of vehicles in the past 18 months. “As we all understand, some countries are still in a state of a partial lockdown and the pandemic still continues,” he begins. “However, with some countries like Saudi Arabia, you have to say it has done phenomenally well in tackling the pandemic, whether it was with policies 12 SEPTEMBER 2021
or how they dealt with the whole vaccine programme,” he begins. The good news, then, is that there really is light at the end of the tunnel. Even if it feels someway off. “I think by 2023 we will see a complete recovery,” he says. “And when I say 2023, I’m talking across the market, not only the automotive industry because in some ways all industries, the whole market, are interlinked. And thus, we need everyone’s recovery right for a complete economic recovery.” Pandey notes that some sectors like hospitality and retail suffered more than others during the pandemic: “But, then
We’re sitting in a market that’s a long way behind Europe”
we saw the emergence of new things, such as healthcare, really grow exponentially. E-commerce saw a huge jump and I think fundamentally you and I as consumers have changed. There are certain elements of our lifestyles which I think are going to remain. We are go to embrace online more and do more online transactions. I think that is fundamentally here to stay.” The move to online is a major shift which has accelerated during the past 18 months. The online shopping habit will be hard to break for most people. If they ever shake it off at all. “That is the major shift, right? We used meconstructionnews.com
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to always talk about how much of online and e-commerce will penetrate into our lives. But I think that is here to stay,” he says. The GCC has seen the introduction of VAT over recent years, but enthusiasm to raise it has receded as the reality of the hit consumer spending would take has set in – with Saudi Arabia, again, leading the way. “We also saw certain strategic steps taken by governments. Saudi had raised the VAT rate from 5% to 15% which was at the start of the pandemic, (I think it was June/ July last year). So early in 2021, the Saudi government announced that VAT would go back to 5%. So again, a very thoughtthrough, strategic decision, and really commendable. The Saudi government has had to think about how do we restore an economy? How do we drive numbers? So, in comes the multiple-entry visa and a lot of initiatives are being announced, which I believe are going to continue. And overall, the underlining fact is, that this will drive more people to come into this country. And then the car ownership would go up, right? Eventually, it benefits all of us.” Whichever way you look at it, this has been a tumultuous period for the automotive industry in the region. The effects of going into lockdown and the shortening of staff numbers –with the uncertainty that both bring – has forced people to re-think their vehicle buying habits. “New vehicle sales have dropped. Customers preferences have changed
WITNESSING A MAJOR SHIFT As consumer buying habits change, they are making more purchases online. This is forcing the auto trade in the region to be much more e-commerce savvy.
and how,” he muses. “We’ve seen a major shift to buying used cars. To give you a statistic, in Saudi, four to five years back, for everyone new car transacted there were four old cars transacted. Fast forward to today, there are roughly around eight to nine transactions of used cars for every new car. If you look at the net fall off –- used cars over the last four year - it has been drastic. Almost a 25-30 percent dip.” Again, like catching the online buying bug, opting for a used alternative is going to be your most likely option – statistically at least: “With the volatility that is around us the macroeconomic factors or just sometimes
I think by 2023 we will see a complete recovery”
you feel insecure with your job – that will motivate an individual to buy a used car. So, fundamentally, I think one of the key messages is that used cars are here to say.” Understandably, more used cars, means more demand for components and parts from the aftermarket. Although that was not immediately obvious at the height of the lockdowns in the region. “Obviously, since people were more indoors, they came out less for their periodic maintenance and thus all these service stations,” he says before confirming: “That business is back now. We are currently studying the service and maintenance market in the UAE and I can tell you the numbers are back on track. All of them are close to hitting their targets, so it’s at least good news on that front.” “The impact has been minimal. So I think that there the recovery is happening. We have seen a huge surge and preference for used cars, which as I have already said is going to continue.” Meanwhile, the team at Glasgow Consulting Group believe that car sales are expected to fully recover by 2022. And much of these sales, as he suggested, earlier will be channelled through online. “A new trend which we have seen is a huge spike in online websites, e-commercebased initiatives,” he notes. “Now you have the Dubi Cars of the world who have seized more and more of the online sales. These are now players and there has been
FROM THE NEW TO THE OLD While the automotive industry grapples with digitalisation, consumers are turning to the used car market.
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a huge surge in funding (for them) as well. They’ve been able to gather seed funding or incremental additional rounds of funding. “So, again, this is indication that there is an element in the market which feels that consumers will use them…Now, if I want to go and service my car, I’m likely to use an app. To what extent that penetration is, is a different debate and question we’re not getting into but more or less everybody wants to now jump into the bandwagon of online and e-commerce: whether that is for servicing or even to go through the purchase process (whether it’s a used car and online). “The key message is that online e-commerce is something any business would have to consider, if the consumer is willing to engage with that channel.” For distributors and OEMS this means they must provide the right solution online if they are not already competing in that space: “This is a very very relevant and emerging trend.” Moving ahead, he forecasts that people will continue to work from home as businesses understand the benefits and keep numbers down in the region’s offices. This, he argues, should encourage more people to turn to carpooling . “We saw various initiatives by the municipality and transportation authorities on carpooling. And you can fast forward to a new world where carpooling is a phenomenal trend which is going to remain for a while.” Continuing his look ahead, he says that there is good news for the passenger car market in the UAE and Saudi Arabia.
THE IMPACT OF COVID The pandemic is reducing vehicle use but it is also creating new interest in making the driving environment much more hygenic.
e-commerce is something any business has to consider”
DISRUPTION FROM OUTSIDE Non-traditional OEMs are moving into vehicle development as they recognise their importance to their overall operation.
“We expect it to be back on-track by 2022 and the same for the other GCC countries. Covid-related, disruption in sales which happened primarily in 2020 has pretty much recovered in 2021 and definitely in the last two quarters. There is a major recovery expected and a lot of distributors that we speak to are pretty happy with their current performance both on the new and used car sales sides,” he explains. “On the component side, we believe economic uncertainties have increased the preference for used cars. This is a new trend I have mentioned and by 2024/2025, we would reach the pre-Covid level of sales numbers.” He adds that these seemingly reassuring
figures do come with a caveat: “Obviously, we have seen a major dip starting from 2017. We had the VAT coming in and we had whole lot of issues where we were in a consistently slow market (if you look over the last four years).” He continues: “If you look at the CGR counts between between 2019 to 2024, we witnessed a growth of 0.7, which is not so bad. From an aftermarket and component perspective, I think we will see more of vehicle cleanliness being a core concern, more disinfection, more car washing…you go to service stations and these days they seem to be busier. I think these trends are here to stay and thus, every aftermarket business should look at solutions which help in enhancing the whole offering and the customer experience.” Ultimately, with online and e-commerce here to stay, he believes that across the whole automotive market companies will need to introduce new business models: “New business models will emerge and new entrepreneurs will come and try new things because the end consumer is more willing to experiment.” Green transport
One trend that the automotive industry in the region remains uncertain of is the extent to which we will see a shift to green transport. Noting that the truck market “obviously” has a long way to go, he says that, from a passenger car perspective, governments have demonstrated strong leadership in encouraging a shift. “There are certain milestones and targets which various governments have stated. If 14 SEPTEMBER 2021
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you walk into almost any mall, it now has allocated charging stations. Initiatives which have been implemented, and as consumers that information is being put into our head,” he remarks. “And we do need to think of sustainability, our sustainability goals as eventually this is where the market will go to.” He continues “The RTA, as an example, has annouced initiatives around free parking, no toll fees, discounted registration fees and there will be over 200 parking stations. All those logistics and modalities are being worked out. I think again the UAE is clearly taking a leading position on that front.” According to Pandey, we should expect further regulatory changes which, combined with evolving consumer habits, manufacturers, distributors and even fleet operators should be conscious of. “From a more strategic angle, where do we see businesses evolving? We believe new business models will emerge. And when I say, new business models, it’s also for existing business, anybody who is currently in this business needs to refine his business model because the end-consumer need has changed and the regulatory regime is
We do need to think of our sustainability goals ”
also getting more refined. I think we will see a lot of evolution in business models. “For instance, hygiene will obviously at the core of this. We will see more organisations and processes getting more leaner and outsourcing. A lot of big business groups in the regions have outsourced their finance function into lower cost geographies. This is one major takeaway which is already happening.” Drawing his look at the region to a close, he focuses his attention onto digitalisation. It is a trend in the market that
cannot be underestimated, he suggests. “If I look at the car servicing market, its adoption of better technologies is leading to better processes as well as proactive and participatory businesses. For the end user, we will have to offer different experiences whether it’s through a mobile tablet or even augmented reality. He continues: “More value-added offerings will come into play and prominence as we have already seen such as mobile servicing. We are also seeing service providers come to you with fuel delivery, and, again, there are multiple players getting into it.” “The recovery of the vehicle production and sales will drive the overall performance of our sector. Given the non-discretionary nature of a large portion of the aftermarket, purchases will also keep the aftermarket sector strong. “We feel the automotive OEM dealers must shift through a range of potential strategies in the medium- to long-term in order to identify ones best-suited to optimise resources and operational efficiencies. To mitigate risk and enable them in a roadmap for a sustained and sustainable future.”
A REGION REACTS The social and economic impact of the Covid-19 pandemic will be long-lasting and is likely to change the automotive industry for decades to come.
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SHOULD YOU HIT THE SWITCH?
Volvo Trucks asks fleets whether they should make the switch to electric vehicles
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he whole transport industry is facing tough demands to improve its climate impact. To speed up the transition towards more sustainable transports, Volvo Trucks’ objective is for its entire product range to be fossil-free by 2040. Electric trucks will play a key role to achieve this. It may sound as an unrealistic target, but in fact, the switch to electric vehicles is set to go much faster than most have anticipated. Lars Mårtensson works as Environment and Innovation Director at Volvo Trucks and he argues that one compelling reason fleets to switch in some markets is the fact that the cost of owning an electric vehicle is going down. “Although an electric truck has a higher sticker price than a conventional vehicle today, the low number of moving parts in an electric engine mean they often have longer lifecycles and need less maintenance,” says Mårtensson. “Meanwhile, the price of batteries is decreasing at a rate that’s outpacing most analysts’ expectations. Ongoing investment in the renewable energy sector is bringing down costs of generating electricity to the point where running a truck on electricity will be a fraction of the cost of diesel.” 16 SEPTEMBER 2021
He notes that as demand for electric vehicles has shot up, battery innovation is also accelerating. “Lighter, lithium-ion batteries are about a third of the weight and half of the volume when compared to lead-acid,” he remarks. “And they are becoming even lighter and more powerful as the tech improves. Even more gains could be made with the next generation of batteries, known as solidstate batteries. These charge faster, are safer and deliver up to twice the battery density of today’s lithium-ion batteries, which could potentially double the range.” Fleets that are involved in long haul may find it harder to make the switch for the forseeble future. Particularly with a network of fast charging sites yet to be installed in most markets. Mårtensson does note some progress however. “Today, charging an electric truck for shorter-range tasks can be easily done overnight. While infrastructure for fastcharging trucks is still small, it is expanding as cities, logistics centres, automakers and gas stations look to cater to an emerging demand. And new technologies including smart chargers and smart batteries are making ultra-fast charging possible under a broader range of conditions,” he says. “New discoveries are also demonstrating that meconstructionnews.com
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COMPETING WITH DIESEL FLEETS The price of batteries is decreasing at a rate that’s outpacing most analysts’ expectations. Ongoing investment in the renewable energy sector is bringing down costs of generating electricity to the point where running a truck on electricity will be a fraction of the cost of diesel.
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charging speeds will be increased drastically by improvements of lithium-ion batteries.” Generally speaking, as the price of electric vehicles goes down, choosing electric could become more than a question of sustainability and cost. “Electric trucks are also proving popular with drivers because they generate fewer vibrations than traditional diesel vehicles. They are easier to manoeuvre and park, making them well-suited to urban driving and deliveries,” comments Mårtensson. “As a low-carbon option with no tailpipe emissions, electric trucks are proving popular with companies that want to operate more sustainably.” “The switch to electric vehicles could go faster than many have anticipated. At least, there are many signs indicating this development. And electric trucks are already rolling on our streets in real operation.” Jarkko Aine, director for Electric Solutions at Volvo Trucks argues that electric trucks are very much a reality for some fleets and a necessity for many transport assignments. If you are operating in urban areas and need some guidance in your next step into electrified transport solutions, he advises that you should first identity what your transport assignments. “Thanks to their low noise and emission levels, electric trucks are ideal to operate in residential areas and city environments, such as for urban transport of waste collection, consumables and light construction works,” he says, adding that adoption of electric
Major cities are seeing an increase in nighttime deliveries”
vehicles in your fleet should also help raise the profile and image of your operation. “As a quieter, more sustainable option, electric trucks can help you lower your carbon footprint, boost your image and win contracts with customers or government agencies that have strong sustainability goals. A quieter and high-tech vehicle could also be a big draw for drivers, who are a scarce resource. If marketing and image building is a priority, electromobility might be a good option for you.” He argues “Many major cities are seeing an increase in nighttime deliveries using quieter electric trucks. The flexibility
it offers businesses not burdened by having to dispatch trucks in morning rush hour is attractive, allowing resources to be spread more economically. Reducing peak traffic volumes and noise pollution are priorities for city authorities worldwide.” New business opportunities are becoming available for companies that want to be able to transport goods to locations and at times that are not possible with fossil-fuel trucks. “A growing number of cities are planning to introduce zero emission zones where only electric vehicles are permitted,” he notes. “Taxes are also being discussed which will support the transition to a more CO2-neutral society. More companies employing electric trucks are becoming involved in green partnerships, which can have a knock-on effect for business.” According to Aine, the bigger the payload, the more batteries are needed to cover any given distance. Striking the right balance should be critical for fleets. “Batteries add to your total weight and the weight influences the range. This should be considered for example in construction and waste management applications,” he says. “According to a directive by the European Union, one extra tonne can be allowed for alternative fuelled vehicles to compensate for the extra weight. At Volvo Trucks we make realistic route simulations to ensure that you’re able to carry out your assignment when specifying the truck.”
A THING OF THE PAST? Many major cities are seeing an increase in nighttime deliveries using quieter electric trucks. Reducing peak traffic volumes and noise pollution are priorities for city authorities worldwide, says Jarkko Aine.
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Electric trucks can currently travel 70 to 300 km on an overnight charge depending on the application. Planning longer distance assignments obviously means scheduling further charging at specific locations along the way, in sync with driver times. Fleets should also be willing to invest in route planning and driver training. He adds: “To get the best out of an electric truck it must be driven in a way to recuperate energy and maximise range. To help drivers use electric powertrain technology in the most efficient way a training course and tools to help plan economical routes for your vehicles can be a worthwhile investment.” Knowing what your charging options are, remains that critical question. “Initially, we believe that the majority of trucks will be charged at the customer’s home base overnight. Additional fast DC chargers are becoming an interesting option in two shift operations,” says Aine. “As electric vehicles become more common, there will also be the need and the opportunity to charge them in many different places, such as gas stations, loading bays, service workshops, truck stops and other places where trucks are parked. When we supply a truck at Volvo Trucks, charging equipment is included and we assess the route carefully with the customer and calculate where charging will be needed to meet the transport requirements.” If you feel like your fleet isn’t ready to hit the electric switch or is simply unable to because of vehicle availability and a lack of charging infrastructure? One alternative could be running trucks using gas-powered engines. The Volvo FH LNG and Volvo FM LNG have proven their ability to deliver lower CO2 emissions. The reduction can be up to 20 per cent compared to standard diesel (tank to wheel) – and this is without compromising performance and drivability. If Bio-LNG is used, then the CO2 reduction can be up to 100 per cent tank to wheel. Demand for Bio-LNG is growing together with increased production capacity and the Volvo Trucks’ objective is 100% Bio-LNG usage for gas driven trucks latest 2040. The uniqueness of Volvo Trucks’ LNG driveline is that it is based on proven diesel technology. In general, LNG is produced by cooling down methane gas to below -162° Celsius, where it liquefies and reduces in volume. When in operation, the liquid gas is heated, turned into compressed gas and sent to the engine for combustion. meconstructionnews.com
ASSESSING THE APPLICATION AND REQUIRMENT Volvo Trucks provides both charging equipment and an assessment of vehicle routes for the customer. These help to calculate where charging will be needed to meet the transport requirement.
The low number of moving parts in an electric engine mean they often have longer lifecycles”
However, in Volvo Trucks’ LNG-powered vehicles, a small amount of diesel or HVO is used to help ignite the gas. Despite its higher purchase price, the Volvo FH LNG and Volvo FM LNG remain cost-efficient due to their low fuel consumption compared with other gas engines, the low cost of LNG compared to diesel, and various government incentives in many markets. “The more milage, the stronger the business case,” says Henrik Persson, Business Manager Long Haul, Volvo Trucks. “We have seen a number of companies, such as supermarket chains, whose investment in LNG has not only greatly reduced their carbon footprint but has brought a lot of economic benefits as well.” Generally, customers who have started investing in
LNG trucks continue to buy more. Refueling an LNG truck will require some guidance at first but ultimately is no more complex or time-consuming than refueling with diesel. Due to the extremely cold temperature of the fuel, safety equipment such as full coverage clothing, gloves and face visor must be used. In some markets, the LNG infrastructure and network of refueling stations is limited, however this is changing rapidly. “Government incentives and investments are having a strong impact and will make LNG viable for more and more companies,” says Persson. “In Europe, there are currently 400 LNG refueling stations, and this is expected to reach 750 by 2025.” As long as the number of fueling stations remains limited, route planning will be important when operating an LNG truck. To assist customers, Volvo Connect – Volvo Trucks’ portal for all digital services and tools – has been adapted to fully meet the needs of LNG vehicles. Now it is possible to use the Positioning service to locate all LNG-powered trucks and monitor the fuel levels – both LNG and diesel – in real time. The service can also be used to locate LNG refueling stations, as well as workshops that are certified to service LNG trucks. “The purpose is to make it easier for customers to plan routes and refueling, so they do not have to worry about running out of fuel,” says Johan Rundberg, Service Owner Fleet and Transport, Volvo Trucks. “Volvo Connect can also be used for monitoring fuel efficiency and CO2 emissions, for individual trucks and whole fleets.” SEPTEMBER 2021 19
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REINVENTION & REVOLUTION Moura Hedna, president, UD Trucks MEENA on the commercial vehicles industry going into 2022
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How should we reinvent the trucking sector?” A simple question asked by T&FME on the face of it, but Moura Hedna, president, UD Trucks MEENA says that there are many different ways to approach the question to find the answers. To Hedna, the importance of the trucking industry to economies and societies is clear. “If we look at any object around us, we can say, for sure, that during the lifetime of this product it was carried on a truck at least once.” UD Trucks was founded by Kenzo Adachi in 1935 who famously said the firm should “make the trucks the world needs today” and it is continuing his mission with the development of its Quon Concept 202X, a platform it says will provide automation, electromobility and connectivity in “new imaginative ways” for logistics. UD Trucks is targeting mass production of fully electric and autonomous trucks by 2030. Trucks like the Quon Concept are important steps on the firm’s “Fujin & Raijin. Vision 2030” roadmap in areas such as automation, the company is currently participating in a truck-platooning project on highways and testing Level 4 autonomous driving in confined areas, and electrification, where UD Trucks is developing various technologies with a special focus on hybrids. For now, all truck-makers must deal with the disruption caused by Covid-19. According to the man in charge of the Japanese brand’s operation in the region, the global truck business in 2020 saw 3.6 million trucks ship worldwide: “These were the numbers of how many trucks we are selling worldwide before Covid,” he muses. “In this 3.6 million, more or less 2.2 million, were heavy duty trucks, or trucks that are above 16 ton. And then the rest were tracks between 6 to 16 ton.” He adds that around two-thirds of heavy-duty trucks are sold in Asia. “If we focus on these 2.2 million trucks, then half of them were sold in China. So, 1.1 million trucks sold in China and of the other 1.1 million, a quarter were sold in North America, a quarter in Europe, a quarter in India. So, this means that more or less two-thirds of heavy-duty trucks are sold in Asia. This gives a perspective for the potential for growth that we have with trucks because, if we look to the megatrend like population growth, especially in Asia; urbanisation where we have more and more big cities, especially in Asia if we see the middle class growth; and if we think about all the infrastructure that needs meconstructionnews.com
SAFETY A MAJOR CHALLENGE Moura Hedna says that while OEMs are making progress with safety systems, there is still a long journey ahead of the industry to make it as safe as possible.
to build in Asia, we can see that we are in a sector that will definitely continue to grow.” Hedna believes technology will power the next decade of growth for businesses in the sector: “We believe that we are in an industry that will continue to grow and that all segments, regardless, if you are in logistics, if you are in distribution, construction, waste management or any other segment, we see potential room for growth.” While you would struggle to find a fleet operator that wouldn’t welcome a decade of growth, Hedna believes there are some major challenges to be addressed on all sides of the sector. OEMs must address issues of efficiency in transportation and help fleets to avoid running empty or half-empty
It’s important to have skilled drivers to optimise operations”
and on the other side of their routes. More importantly in terms of development, trucks need to be more energy efficient – and therefore cheaper for fleets to run, he says. “If we look at the efficiency of our engines, in the best case, we are turning around 40-42% efficiency. And, then, if we add all the losses that we have related to aerodynamics then we can say that the efficiency of our trucks, as of today, as a transport solution it is not optimum. And we also have a lot of room for improvement.” He adds that safety remains a major challenge for the industry: “All of us OEMs are working on active safety and passive safety systems but we still have a long journey in front of us.” A lack of skilled drivers and their recruitment is also becoming increasingly difficult: “Drivers are a serious challenge because the truck is an investment and it’s important to have skilled drivers to optimise its operation and to take care of it. In many countries, it’s very difficult to find skilled drivers and in some other countries, it’s simply difficult to find drivers at all,” he says, adding that technology can bridge shortages in fleets. “This opens the road for automation. “Last, but not, least we have the environment. It was very interesting to see the level or the quality of air that we had in our cities before and during the lockdown. I think we are all aware of what happened in the last 20 years. If you look at the mature markets Europe, North America and Japan, where legislation has been very tight: Every three, four, five years has helped to reduce the level of emissions. If we see a truck today, with a particulate filter
FINDING EFFICIENCY Hedna argues that the major OEMs should address issues of efficiency in transportation and help fleets to avoid running empty or half-empty and on the other side of their routes.
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and oxidation catalyst, the level of pollutants has gone drastically down. However, we still face the challenge of CO2 and global warming. And when there were no vehicles on the streets, this raised awareness (of the impact).” Despite his long list of worries, Hedna takes solace from looking back through the history of the automotive sector and the lessons learned. “It’s not the first time that we are facing challenges and a big transformation. We knew (even back at the beginning of the industry) how to manufacture new vehicles but the big challenge was how to sell them, how to distribute them, how to service them...To have a system with fully effective marketing and a tight connection to customer helps to understand his needs and to adapt to his needs. This has not been at all easy for us, and it was not easy to adapt.” While fleets have always dealt with their own set of challenges, OEMs have also had to continually adjust to a rapidly changing world. Putting today’s major industry issues into context, Hedna imagines the OEM boardrooms of prior generations debating the critical decisions they faced at the time. Ones that would ultimately lead to the modern automotive industry. “Technology-wise there was the big question of should we continue spending money on casting and forging and blocks and cylinder heads? Or should we spend money on electronics, or should we spend money on the distribution and the network? So, there was this judgment that was needed to be taken. And that’s what pushed the emergence of a huge number of suppliers in the automotive industry,
We are in an industry that will continue to grow”
DEALING WITH CHANGE Moura Hedna argues that the industry has always had to deal with changes to technology and market requirements.
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because there were make-or-buy decisions. A lot of activities were outsourced to suppliers. “There are now only a few OEMs but there is a fantastic network of suppliers around automotive: more or less any car or truck that you see, more than 70% of the added value is not done by the OEM but it’s outsourced. “Then there was another transformation to the business model, which consists of not selling the truck or the steal, but to sell services because we realised that it’s what the customer is expecting and that’s how we make more value to the business. It was another challenging transformation because we were used to a more transactional approach and now I needed to sell a total solution,” he says. “We need to sell and to provide all of
what the truck needs during its lifecycle. I’m talking about service agreements, telematics, finance, insurance. And this also was not an easy transformation. It’s a tough challenge, even nowadays for us and our distributors.” As business models have had to be adapted, so the trucks have evolved. “80 years ago (UD Trucks celebrates its 86th year in 2021), a truck was built around mechanics. We needed to have mechanical engineering, mechanical skills. We added some pneumatics and hydraulics, but then in the beginning of the 1980s, we started adding sensors, actuators, control units and we had plenty of electronics on the vehicle. The was not an easy challenge because it was a discipline that we did not know how to handle. We did not have the skills. We did not have the right people and the lifecycle of electronic companies is completely different.” He makes a parallel to the current situation to highlight how this remains a problem: “It’s easy to see with the crisis that we have related to the shortage of semiconductors. It indicates how dependent we are on the electronic companies: ten percent semiconductor conductors are used by automotive manufacturers worldwide.” The 1990s and 2000s saw the emergence of a new discipline concerning the emissions of vehicles:“This was driven by the emission legislations. If you take an advanced engine today or vehicle in a mature market, after the engine there is another engine to clean the exhaust gas emission. So we added oxidation catalysts, SCR Catalysts, particulate filters; and for all these disciplines we did not have them in our blood and in our core competencies. It was not easy to develop this in our industry and to even find suppliers that will guarantee that you will have a chemical reaction that will be the same after 1 million kilometres. Thanks to electronics we can now measure emissions and adjust these chemical equations.” He brings his short history of industry development to a close with a final shift: “In the last few years, we have entered the era of the software. Any vehicle has a number of apps and software and it is opening a new perspective.” Ultimately, transformation has been fundamental to the truck business from the start. But, what does the future hold? “I believe we are starting a new fantastic and exciting transformation. In the truck business, everybody is talking about ACE, Automation Connectivity and Electrification – in cars they add CASE as they add shared mobility.” meconstructionnews.com
FEATURE
WHAT TO PICK? Your future choice of alternatives to diesel engines will be determined by your fleet’s requirements and applications.
A look at the future trucks we will be using inevitably focuses on electric vehicles. “As a concept, it is not something new. What will be challenging and what needs to be put in place, is the full ecosystem around electricity and electric vehicles. There are some challenges but we can do it, but we need to think about energy supply. If all vehicles will consume electricity, are we sure that we have enough capacity? Are we sure that we have the grid?” He asks. “And by the way, we need to ensure that that electricity is produced with a green method. Because if you produce electricity with coal or oil, then we cannot really talk about a green transport solution. Charging infrastructure is another important element in the ecosystem. And once again, if you want to have the scale and mass production, we need a fast charging solution for trucks. So we need to make sure that there is someone who will invest, maintain and monetise it. Regulation needs to follow, if you really want to go to mass production, or at least to accelerate the adoption. “The end users need to be prepared and aware of the convenience, the advantages and the limitations of running electric vehicles. And that’s why the adoption of the electric solution as a transport solution, may vary from region to region and from country to country. So, in countries where you have this ecosystem in place, the adoption will come meconstructionnews.com
quit quickly. And we see that, for example, in Norway, because all these elements are well prepared in some other markets, if this is not in place, it will take more time.” Hedna argues, as T&FME has been told by others, that a future of greener fleets is likely to need a full range of technologies from hybrids, CNG to biofuels. Your choice will depend on your fleet’s role. “With EVs, the optimum solution I’m thinking about is distribution and waste management. But if I take long haul we need a very big range and fast charging. It will be very, very interesting for all of us to watch and see what will happen in hydrogen, because it could play an important role, not only for automotive, but as a future energy. It’s interesting that in our region we can see that the UAE and Saudi are really interested, and we see a lot of Iivestment going in this direction.” Returning to automation, he says that UD Trucks is restricting its development to very specific applications: “We already have some trucks running in with level 4 automation in confined applications. But what do see platooning – where one truck takes the lead and others follow in convey to optimize aerodynamics - as a solution for the future for automation. Many tests have taken place in Japan and working together with many players on our test programmes.” He is much more positive about the immediate possibilities of connectivity in
I believe that our industry is key for society. We went through many challenges, and many Transformations in the past but we are starting a new fantastic and exciting transformation”
systems, such as the UD Telematics solution, in driving fleet efficiency forwards. “I think this is something that we are living because the ecosystem is here. The trucks can be equipped with a tool and the internet is there. Everybody can get access to information. Once we offer telematics and customer try it, they like it because regardless of where you are sitting, you can have access your fleet: You can see how the trucks are performing, fuel consumption, driving behaviour; you can see the drivers behaviour. It’s a fantastic tool and this is only the start.” Coming to a close, he stresses that Covid may have kept people off the road, but it will accelerate change throughout the industry as we continues through the decade. “Covid is a catalyst for an acceleration of this transformation. But this transformation will be more towards efficiency. We need to improve the efficiency of our fleets and move towards clean vehicles. I expect that there will be a lot of technology partnership across borders and sectors. We see an announcement of a new joint ventures every day (such as the agreement between Volvo Group and new UD Trucks owner Isuzu Motors). “Beyond that, we know that Apple, Google, Amazon…everybody is looking to produce trucks. What that means for us as traditional OEMs is that we need to be really need to have an entrepreneurship mindset because things are changing fast.” SEPTEMBER 2021 23
WORKSHOP
PETRONAS LUBRICANTS EXPANDS ME FOOTPRINT / NEW TRAILER FACILITY FOR RANDON IN KENYA / RITCHIE BROS TO BUY EURO AUCTIONS / BRIDGESTONE TESTS EVS IN EGYPT
WORKSHOP
Petronas picks new Kuwait partner PETRONAS LUBRICANTS INTERNATIONAL EXPANDS MIDDLE EAST FOOTPRINT WITH AL BABTAIN GROUP LUBRICANTS
PETRONAS Lubricants International (PLI) has partnered with one of Kuwait’s oldest family-owned conglomerates, Al Babtain Group, to oversee the distribution of premium engine oils and industrial lubricants. Under the partnership, Al Babtain Group will oversee the sale of PLI’s premium range of engine oils for passenger cars; PETRONAS Syntium, and truck and fleet vehicles; PETRONAS Urania, starting with AlBabtain Auto outlets in Kuwait. “The Middle East represents a key emerging market for PLI
and developing relationships with key distributors is vital to ensure our high-quality lubricants reach the right audiences,” said Ahmed Elgendy, commercial and business development manager, Middle East - PLAL, DMCC. “Al Babtain Group’s expertise and invaluable network lays the foundations for collaborative success in the domestic Kuwaiti market and our wider regional ambitions.” PETRONAS Syntium, PLI’s range of premium engine oils for Passenger Cars, are developed ‘from track to road’, using key
KEY PARTNERSHP IN KUWAIT Al Babtain Group will oversee the sale of PLI’s premium range of engine oils for passenger cars; PETRONAS Syntium, and truck and fleet vehicles; PETRONAS Urania, starting with AlBabtain Auto outlets in Kuwait.
research from the world’s most demanding racetracks. PETRONAS Syntium fights excessive heat through 0CooltechTM Technology that helps absorb and eliminate extreme temperatures that might damage critical moving parts inside the engine. PLI’s pioneering approach to its advanced oils began in 1995 with Formula 1 and, since 2010, has powered the Mercedes-AMG PETRONAS Team to seven consecutive World Championship titles. Muneer Mamnoon, General Manager for AlBabtain Auto, added: “The addition of PLI’s high-quality premium engine oils is an enhancement to the range of products in our lubricant portfolio thereby making this a win-win partnership. We expect the globally recognised PETRONAS Syntium and PETRONAS Urania products to significantly bolster local sales.” While leveraging the Al Babtain partnership to reinforce its foothold in Kuwait, PLI aims to evolve its local offering by engaging and expanding its network of distributors to rollout new products for consumers, workshops and logistics businesses.
RANDON IMPLEMENTOS TO SET UP KENYA PLANT TRAILERS
Brazilian trailer OEM Randon Implementos is set to build a CKD (Completely Knocked Down) assembly unit in Kenya alongside, JAP Africa, a subsidiary of Portuguese conglomerate JAP. A strategic agreement between the two commits both to the local assembly of semi-trailers, said Randon Implementos in a statement.It added that the the platform and tipper sets are shipped from Brazil in order to be assembled and commercialised by its local partner. The expectation is for continuous growth in terms of market share in the next few years, reaching neighboring countries such as Tanzania and Uganda, said Sandro Trentin, general director of Randon Implementos: We seek to maintain a leading role in this region.”
INSIDE THIS MONTH’S WORKSHOP: THE PAST AND FUTURE OF LUBRICANTS, DRIVER STRESSES ON THE ROAD, THE GREAT DELAY OF EVS AND MORE
24 SEPTEMBER 2021
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WORKSHOP
BRIDGESTONE AND AL NASR EV TESTING IN EGYPT
RITCHIE BROS TO ACQUIRE EURO AUCTIONS FOR $1.08BN AUCTIONS
Global machinery and equipment auctioneer Ritchie Bros. is acquiring Euro Auctions for $1,08b, in a move that will expand and consolidate its reach in the Europe, Middle East and Asia (EMEA) region. Announcing the acquisition, Ritchie Bros said that it will be retaining Euro Auctions’ employees and its brand, both of which are highly regarded in the EMEA region. This will expand Ritchie Bros.’ overall footprint and access to equipment, while also tapping into new revenue streams with service offerings to Euro Auctions customers, including inventory management services, data solutions, financing, warranty, insurance, inspections, refurbishing, shipping, and more. Founded in 1998, Euro Auctions conducts unreserved heavy equipment auctions with onsite and online bidding under the brands Euro Auctions and Yoder & Frey, with 200+ employees in 14 countries. In 2020 the company conducted 60 auctions, selling close to 90,000 items for across its nine locations in the UK, Ireland, Germany, Spain, the UAE, Australia, and the US. It also sells items through a timed auction format and a daily marketplace with Buy Now and Make Offer options. Ann Fandozzi, Ritchie Bros. CEO, said: “Ritchie Bros. and Euro Auctions are an ideal fit with a united goal to make asset insights, service offerings and disposition solutions easier than ever. Euro Auctions has an incredibly talented team. Their ‘can do’ attitude and entrepreneurial spirit combined with technology has helped them adapt and grow.”
meconstructionnews.com
TYRES Bridgestone has signed an agreement with AL Nasr Automotive Manufacturing company to fulfill the test phase of new electric vehicles in Egypt. The trial operation plan will cover Cairo and Alexandria and includes a maximum of 13 electric vehicles to be tested annually with a range of 30,000 kilometres for public test drive. The partnership will enable Bridgestone to provide its tyres and local partner Nile Projects & Trading subsidiary Fit and Fix Network to support the success of the trial test phase by ensuring the durability of the electric vehicles and provide excellent service quality. It further aims to revive the national pride brand of Nasr and boost the Egyptian government in making Egypt a hub for electric vehicles in North Africa and to encourage more travelers
PROMOTING ELECTRIC VEHICLES IN EGYPT AL Nasr has been actively promoting the adoption of electric vehicles in line with the Egyptian government’s own mobility strategy and vision.
to embark on safe road trips, said the firm in a statement. Fit and Fix network, an Egyptbased auto service company owned by Nile Projects, will provide a wide array of professional car services for the EVs which will be accessible through its over more than 40 outlets to ensure safe and comfortable drives. This partnership is in line with Bridgestone tyre’s initiative to lead
the industry towards sustainability by reducing fuel consumptions and minimising carbon emissions. “We are excited to be working in this project with our partners,” said Stefano Sanchini, regional managing director, Bridgestone MEA, said. “This is a step we are taking to support safe and secure mobility while contributing the realisation of a carbon neutral society.”
THERMO KING WINS 17TH “BEST BRAND” AWARD
CRITICAL TRANSPORT Thermo King’s products and services have been used to transport COVID-19 blood plasma trials and vaccines, as well as distribute “critical products such as life-saving medicines and food to those in need,” said Jorge Caro.
AIR CONDITIONING
Thermo King was recently voted the ETM Awards “Best Brand 2021” award in the “Refrigeration Units” category for a record 17th consecutive year. Germany’s largest commercial vehicle readers’ choice awards are organised by the ETM Verlag publication house together with DEKRA, one of the world’s leading expert organizations. Readers of lastauto omnibus,
trans aktuell, FERNFAHRER and eurotransport.de voted in 25 categories for the “Best Brand” award, along with the “Best Truck”, “Best Van” and “Best Bus” awards. “Since the onset of the pandemic, refrigerated fleets have proven their essential services repeatedly as they work to fill escalating demands for fresh and frozen perishables from supermarkets, distribution centres, convenience stores, pharmacies
and more,” said Francesco Incalza, president of Thermo King Europe, Middle East and Africa. “Winning this award for a 17th consecutive year is astonishing and recognises that the great efforts of our teams during these times were impactful and uplifting. From the way that our people in our manufacturing plants managed to continue operating, to how all of our people and dealers continued to keep the customer front of mind.” “This award proves that Thermo King remains true to who we are – a leader innovating for our customers and our communities,” said Jorge Estelle Caro, regional director for Central and Northern Region at Thermo King. “Throughout the recent difficult times, we have stayed close to the customers, listened to their needs and helped them deal with many new challenges and demanding requirements brought by the pandemic on the cold chain logistics industry.” SEPTEMBER 2021 25
FEATURE
LUBRICANTS: FLUID PROGRESS
Fausto Lupone, Automotive Sector Expert at PETRONAS Lubricants International looks at a rich heritage in winning formulas
O
ver the last century, scientific breakthroughs in motoring have seen the capabilities of industrial, commercial and motorsport vehicles rise exponentially to meet drivers’ needs. However, it’s fair to say that none of these innovations would achieve their potential without the vast strides made by lubricant technology every step of the way. Lubricants may seem like a second thought for the industrial buyer or the first-time driver looking to take their test as quickly as possible to get on the road. However, the contribution of oils to motoring is fundamental and unparalleled. In fact, it is now inseparable from the high-class performances challenging every part of the industry to innovate and advance. Below, PETRONAS’ experts share 26 SEPTEMBER 2021
how the power and agility of lubricants have shaped motoring in the past, craft tailored performances in the present, and become inseparable partners to those innovating the future of motoring. Motor oil was never a retrospective attrition to the motorist’s arsenal of tools. It has always been essential to performance. These first lubricants reduced friction in far more ways than one. Born of steam engine innovations following the Industrial Revolution, they emerged side-by-side with cars as they entered the international scene. The ability of quality lubricants to optimise and lengthen the performance of engines not only allowed early drivers to hit the road smoothly for the first time but, consequently, it paved the way for the acceptance and development of the motor car. Critically, lubricants proved
The lubricants industry is now capable of truly democratising driving in the modern day”
to the world that a frictionless motorcar ride was far better than the ‘faster horses’ which the people supposedly wanted! As lubricants developed, so did vehicles. Fiat, for instance, began its lubricants division in 1912, designing “first fill” fluids that would soon become the industry standard for achieving optimal performance on the road. As the Second World War prompted a need for higher performance military vehicles, lubricants enabled this. In the post-war period, this newfound variety and quality in motor oils allowed the car industry to evolve its design diversity to cater for the modern drivers of the 1960s. Advanced formulation and manufacturing never failed to meet the needs of the latest contemporary technologies. As a result, the knowledge that new engine types meconstructionnews.com
FEATURE
and new materials could be supported by key lubricants players has powered motoring innovation ever since. With a century of development in fluid technology under its belt, the lubricants industry is now capable of truly democratising driving in the modern day. This means ensuring that every industry or individual can secure the highest quality performance from their vehicle possible – regardless of make or model. Optimal compatibility between system and product is only achievable through close collaboration between lubricants developers and original equipment manufacturers (OEMs). Both teams must share knowledge and workspaces to ensure that lubricants are co-engineered to achieve the highest standards for specific vehicles. A continued commitment to high quality research is what enables lubricants manufacturers to turn their hand to any brief, understanding the needs of equipment, recognising challenges and ultimately formulating the best results for the OEM’s customers. For instance, the development of a scheme like PETRONAS Lubricants International’s (PLI’s) Fluid Technology Solutions (FTS) programme has helped to maximise productivity for customers, with value-added products and services that are global, yet refined to specific needs. Through detailed user and market research, analysis of legislative requirements and collaboration between engineers and scientists, schemes like this foster a unique approach to deliver the right fluid to the right user. The development of lubricants for Formula One cars is a case in point. The collaboration between Mercedes and PETRONAS began with the engineering of fuels and lubricants independently by PLI, which were then handed over to the Mercedes team for testing. However, in 2014, an integration exercise saw the teams begin to work much more closely together, enabling PETRONAS specialists to gain a better understanding of technical aspects of the Mercedes engine, thereby increasing trust as well as efficiency and delivering results. The results were immediate, and the Mercedes-AMG PETRONAS team has won every championship since.
THE FUTURE IS NOW “There has never been a more exciting time for motoring than today,” says Fausto Lupone.
reach their potential, ultimately proving the value of eco-friendly vehicles to manufacturers, investors and consumers. Research into lubricants to empower hybrid and electric vehicles (EVs) is already fully underway at the world’s top fluid development labs, as demand for these vehicles booms. EV motors require several fluids: oil for the reduction gear that is the EV’s transmission unit, and oils specifically for the electric motor if the oil cooling is used for the motor. Teams are focussing their R&D efforts on battery thermal management fluids: ways to help electric vehicles reach maximum performance when operating at various conditions and to prolong battery life. The pace of innovation in vehicle performance is just as quick as that at the forefront of vehicle production and design. Both start with conversation; such discussions
Motor oil was never a retrospective attrition to the motorist’s arsenal of tools. It has always been essential to performance”
at PETRONAS’ EV Fluids Symposium are a direct result of the automotive care fostered in Fiat’s own garages over one hundred years ago. The innovations these conversations produce are then testament to that ongoing excellence: thermal battery fluids for optimised delivery of electrical energy, fluid for friction management of integrated driveline systems, and nextgeneration bearing greases for a quieter ride and long-lasting performance. Once again, lubricant technology remains firmly by the side of those pushing for the brighter future of driving. Reducing waste is also high on the agenda of lubricants manufacturers. Older cars can still reach maximum performance through the development of modern lubricants which draw on the original oil specifications from the manufacturer. By using the most appropriate additives and the most advanced technologies to ensure protection of older engines against wear and tear, modern lubricants can enable top class, efficient performances from older cars. This ultimately prolongs their lifespan and delays highly pollutive disposal processes. The challenges of sustainability, combined with the democratisation of technology, means that pioneering new technologies are making their way to the market continually. Each must be able to demonstrate long-term efficiency to meet the expectations of drivers, and limit impact upon the environment. Quality lubricants will be integral in enabling cars to meet this high standard - as they have been throughout the history of the modern motor vehicle.
TRYING TO PIONEER The challenges of sustainability, combined with the democratisation of technology, means that pioneering new technologies are making their way to the market continually.
Powering sustainable motoring
The lubricants industry has always been highly adaptable to the development of new vehicle technologies. Now, as motoring undergoes the biggest shift towards sustainability in its history, lubricants science is leading the way by enabling ‘greener’ technologies to meconstructionnews.com
SEPTEMBER 2021 27
FEATURE
THE GREAT DELAY
New research proves it would take decades to feel the benefit of banning fossil fuels
I
f a ban were introduced on the sale of new petrol and diesel cars, and they were replaced by electric cars, the result would be a great reduction in carbon dioxide emissions. That is the finding of new research from Chalmers University of Technology, Sweden, looking at emissions from the entire life cycle – from manufacture of electric cars and batteries, to electricity used for operation. However, the total effect of a phasing out of fossil-fuelled cars will not be felt until the middle of the century – and how the batteries are manufactured will affect the extent of the benefit. A rapid and mandatory phasing in of electric cars could cause emissions from Swedish passenger cars’ exhausts to approach zero by 2045. The Swedish government 28 SEPTEMBER 2021
has proposed an outright ban on the sale of new fossil fuel cars from the year 2030 – but that alone will not be enough to achieve Sweden’s climate targets on schedule. “The lifespan of the cars currently on the roads and those which would be sold before the introduction of such a restriction mean that it would take some time – around 20 years – before the full effect becomes visible,” says Johannes Morfeldt, researcher in Physical Resource Theory at Chalmers University of Technology and lead author of the recently published scientific study. To have the desired effect, a ban would either need to be introduced earlier, by the year 2025, or, if the ban is not brought in until 2030, then the use of biofuels in petrol and diesel cars needs to increase significantly before
It would take 20 years before the full effect becomes visible”
then – in accordance with the revised Swedish “reduction obligation”. The combination of these two measures would have the effect of achieving zero emissions from passenger vehicles and keeping to Sweden’s climate targets. “The results from our study show that rapid electrification of the Swedish car fleet would reduce life cycle emissions, from 14 million tonnes of carbon dioxide in 2020 to between 3 and 5 million tonnes by the year 2045. The end result in 2045 will depend mainly on the extent to which possible emission reductions in the manufacturing industry are realised,” says Johannes Morfeldt. A transition from petrol and diesel cars to electric cars will mean an increased demand for batteries. Batteries for electric cars are often criticised, not least for the fact meconstructionnews.com
FEATURE
that they result in high levels of greenhouse gas emissions during manufacture. “There are relatively good opportunities to reduce emissions from global battery manufacturing. Our review of the literature on this shows that average emissions from global battery manufacturing could decrease by about two thirds per kilowatt hour of battery capacity by the year 2045. However, most battery manufacturing takes place overseas, so Swedish decisionmakers have more limited opportunities to influence this question,” says Morfeldt. It does not matter where the emissions take place, and the risk with decisions taken at a national level for lowering passengervehicle emissions is that they could lead to increased emissions elsewhere – a phenomenon sometimes termed ‘carbon leakage’. In this case, the increase in emissions would result from greater demand for batteries, and the risk is thus greater the higher the emissions from battery production. In that case, the Swedish decision would not have as great an effect on reducing the climate impact as desired. The life-cycle emissions would end up in the upper range – around 5 million tonnes of carbon dioxide instead of around 3 million tonnes. Due to this, there may be reason to regulate emissions in both vehicle and battery production, from a life cycle perspective. “Within the EU, for example, there is a discussion about setting a common standard for the manufacture of batteries and vehicles – in a similar way as there is a
standard that regulates what may be emitted from exhausts,” says Johannes Morfeldt. But, given Sweden’s low emissions from electricity production, a ban on sales of new fossil-fuel cars would indeed result in a sharp reduction of the total climate impact, regardless of how the manufacturing industry develops. The results of the study are based on Swedish conditions, but the method can be used to obtain corresponding figures for other countries, based on each country’s car fleet and energy system. The year 2045 is highlighted because that is when greenhouse gas emissions within Sweden should reach net zero according to the climate policy goals of the country. Chargeable cars, including both plug-in hybrid electric vehicles (PHEVs) and BEVs, have other sustainability issues. In addition to the social and environmental issues following mining of materials used in lithium-ion batteries, the production process is also electricity
Vehicle fleet turnover models are useful for analysing the impact of technology”
intensive and cause large GHG emissions in the generation of the electricity used, given the prevailing electricity generation system. The share of renewables in electricity generation is expected to increase to 44% by 2040 if currently stated polices are kept in place and to contribute to a close-to full decarbonization of the electricity system if countries follow pathways in line with the Paris agreement. Hence, an extrapolation of the current system into the future leads to unreasonably high estimated GHG emissions related to future battery manufacturing. The same goes for the electricity used for charging the cars, where the carbon intensity of electricity has very large implications in the use phase of a BEV. The mitigation potential of fleet electrification using BEVs may become underestimated unless local variations and future decarbonization of electricity generation, e.g., the Swedish case where electricity is already largely decarbonised and manufacturing systems are taken into account. Vehicle fleet turnover models are useful for analysing the impact of technology trends and different policy instruments on fleet evolution and can be combined with lifecycle assessment (LCA) to estimate energy and environmental impacts. However, recent studies do not consider the future development of other production systems than electricity generation nor analyse the impact on fleet-wide carbon footprints of banning ICEs in the context of competing mitigation strategies, such as increasing use of biofuels.
BIOFUEL USE SCENARIO, CUMULATIVE CARBON FOOTPRINT (MILLION TONS CO2) BAN IN 2025
BAN IN 2030
BAN IN 2040
NO BAN
500 400 300 200 100
Emissions inside Swedish borders
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Emissions outside Swedish borders
Stated Policies
Constant 2020 biofuel share
Biofuel policy until 2030
100% biofuels by 2065
Constant 2020 biofuel share
Biofuel policy until 2030
100% biofuels by 2065
Constant 2020 biofuel share
Biofuel policy until 2030
100% biofuels by 2065
Constant 2020 biofuel share
Biofuel policy until 2030
100% biofuels by 2065
0
Sustainable Development
SEPTEMBER 2021 29
FEATURE
THE STRESS OF THE JOB
Landmark Continental study finds that one-in-three UAE truck drivers say stress is harming their personal lives
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AE truck drivers have revealed the personal impact of the challenges they face carrying out their work, with 57% of drivers claiming to always or sometimes experience stress during their work according to a new study, and the majority finding that the stress of the job carries over into their personal lives. The first-of-its kind study, which was carried out by Continental, the premium German tyre company, sheds light on the often-overlooked personal experiences of some of the thousands of drivers who ply their trade on the Emirates’ roads every day. The stresses of the job affected the majority of those surveyed, with 29% finding it impacted negatively on their personal life. 24% claimed 30 SEPTEMBER 2021
to find it difficult to switch off after completing their work, with 13% suffering sleep deprivation and 10% finding it made them more impatient. The study also highlighted truck drivers’ concerns in relation to other drivers. When asked how other road users could adapt their driving style to facilitate truck drivers’ own driving experiences, 50% of drivers raised the issue of others maintaining a safe distance from trucks; 37% said they could better observe traffic regulations; and 33% suggested that they could be more considerate of truck drivers. Emphasising the stressful nature of the job, and importance of supporting truck drivers, the study revealed that half of those questioned had been involved in accidents. When asked what one thing would most improve their ability to perform their job,
Driver fatigue as well as the causes of stress are often overlooked”
39% of respondents mentioned additional training, with 26% proposing more breaks and 17% decreasing the distances travelled. Reassuringly, 74% of drivers said that tyres are the most important aspect of truck safety. It is estimated that approximately 20% of the UAE automotive market is made up of commercial vehicles (trucks, vans, and buses), with past research shared by the WHO indicating that around 11% of road traffic accidents involved trucks or buses. The project was run in collaboration with three leading UAE fleet operators Al Ahli General Transport, Masafi Land Transport and Ocean City Transport - who provided important input. Continental also partnered with RoadSafetyUAE, the Emirates’ leading road safety portal, which shares meconstructionnews.com
FEATURE
truck safety advice, including for other road users and fleet operators, on its website. “In previous workshops with the Abu Dhabi police traffic department, police officers stated that their main concerns with regards to truck accidents are truck driver fatigue and the poor conditions of the truck tyres,” said Thomas Edelmann, founder of RoadSafetyUAE. “Driver fatigue as well as the causes of stress for truck drivers are often overlooked and hence, I am exhilarated that Continental initiated this campaign to shed light on the importance of truck safety and introduce the human element to this subject. I encourage all truck operating companies to follow Continental’s lead and focus on the importance of this topic”. The study, which involved speaking to 54 truck drivers from around the UAE, was conducted by Continental as part of its global Vison Zero safety initiative. It follows on from other similar studies conducted by the brand in the Emirates regarding the attitude of parents of children of school age towards their car tyres, and the awareness of tyre safety among new drivers. As a global leader in automotive technological advancements and road safety, for both passenger and commercial vehicles, Continental’s global Vision Zero initiative aims to totally eradicate road accidents and deliver Zero fatalities, Zero injuries and Zero accidents. The study was commissioned by Continental as part of its approach to delivering Vision Zero through enhancing drivers’ knowledge, attitude and awareness. Karl Kucera, general manager of Continental Middle East, commented: “The safety of all road users is a major concern for Continental. We were therefore pleased to discover that there was a strong understanding among the drivers of the critical role tyres play in truck safety. However, our primary objective for this study was to initiate a conversation among fleet operators and the wider public on the challenges truck drivers face.” He added: “We wanted to help educate people about the personal experiences and stresses experienced by the UAE’s truck drivers, people who fulfil a vital role for the country’s economy. “Based on the findings, it is clear that drivers would benefit from a greater focus on training and support with content on how to deal with the stresses they face. At the same time, there answers send a clear message to other road users about the effect their own driving styles can have on truck drivers’ abilities to conduct their work safely.” meconstructionnews.com
TRAINING AND SUPPORT It is clear from the survey, that drivers would benefit from a greater focus on training and support with content on how to deal with the stresses they face.
Taking the future further
While Continental is concerned with the present when it comes to driver safety in the UAE, elsewhere it is continuing its work for the next generation of commercial vehicles. Electric drives are not only becoming increasingly attractive in the area of individual mobility, but are also experiencing a dynamic development in demand in local public transport and freight transportation. Together with leading vehicle manufacturers and technology companies, Continental is working on tyre solutions for these special requirements. The premium tyre manufacturer is currently performing test drives at the Contidrom with an electric truck of the specialist for electric commercial vehicles Futuricum, which has been in use for DPD Switzerland
Our objective was to initiate a conversation among operators”
A MAJOR CONCERN Karl Kucera, general manager, Continental Middle East says road safety is a major concern for Continental and the company wants its study to initiate a conversation between all road-users.
in regional traffic since March of this year. The Futuricum vehicle is based on a Volvo FH, which has been converted to an electric drive by the Futuricum parent company Designwerk Products AG. The 19-ton truck has 680 hp and, with a capacity of 680 kilowatt hours, has the largest truck battery in Europe on board. This allows a range of up to 760 kilometers without freight. Continental is also testing custom-made prototypes that have been manufactured in Hanover-Stöcken in a robot carving process and refined by tyre carvers. “The vehicle has been on the road in Swiss regional traffic since the beginning of the year and is currently rolling on tyres of the Continental EcoRegional product line,” says Hinnerk Kaiser, Head of Tyre Development Bus and Truck Tyres at Continental. “The combination of Conti EcoRegional HS3 and HD3 already enables high mileage and extremely low rolling resistance and thus offers the essential characteristics for the economical operation of electrically powered commercial vehicles.” The current test series are about increasing efficiency even further. The focus is in particular on extending the range by reducing rolling resistance. In addition to the original tyres, the Conti EfficientPro and brand-new prototypes are used in direct comparison. The Conti EfficientPro is a proven product that was developed in particular for long-distance transportation and emphasizes fuel efficiency. The specially manufactured prototypes were manufactured in Hanover-Stöcken, at the central location of research and development for premium tyres from Continental, in an elaborate robot carving process and refined by experienced tyre carvers. The Futuricum truck has the largest truck battery in Europe on board with a capacity of 680 kilowatt hours. This allows an average range of about 760 kilometres. “As with all electric drives, the tyres for the Futuricum Logistics 18E are exposed to higher torque during start off and acceleration,” explains Hinnerk Kaiser. “At the same time, the weight and weight distribution of the tractor are increased by the particularly powerful battery. Therefore, the tyres must not only have a low rolling resistance, but also withstand heavier loads than tyres for comparable vehicles with internal combustion engines. At the same time, they should last just as long and meet the same safety requirements as truck tyres for conventional drives.” SEPTEMBER 2021 31
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ROBOTS TAKE THE WHEEL
Ford recruits robot test drivers to ensure vehicles can face the toughest conditions
A
t Ford’s Germany-based Weather Factory, engineers test vehicles in simulated conditions so realistic that even the most experienced human test drivers may become tired or unwell. Ford has recruited two robot test drivers to help take the strain, especially on altitude tests where a key requirement can be that the test is replicated perfectly multiple times. Ford’s state-of-the-art factory has never been busier. Used to simulate a range of extreme conditions under one roof, it has enabled engineers to test vehicles in a way that is less impacted by travel limitations than real-world testing. But so realistic are the simulated conditions that even the most experienced human test drivers may become tired or unwell, for
example when undertaking altitude testing. Now, Ford has drafted in two robot test drivers, nicknamed by the team as Shelby and Miles, to help take the strain, especially on altitude tests where a key requirement can be that the test is replicated perfectly multiple times. Frank Seelig, supervisor, Wind Tunnel Testing, Ford of Europe said: “These two new drivers are fantastic additions to the team, as they can take on the challenging endurance tests at high altitudes and in hot temperatures. Once the robot is in the driver’s seat, we can run tests through the night without ever having to worry that the driver will need a sandwich or a bathroom break.” Located in Cologne, Germany, Ford’s Weather Factory helps ensure drivers can rely on vehicles that have endured conditions that are found in the Sahara Desert, in
Siberia, and atop the tallest Alpine peaks. For human drivers, wind tunnel testing – in particular at high altitude – requires numerous safety protocols, such as having oxygen bottles, medical equipment and a paramedic on-site, while driver health is constantly monitored. Each robot test driver is able to operate at temperatures ranging from -40°C to +80°C as well as at extreme altitudes – and can be set up and programmed for different driving styles. The robot test driver’s legs extend to the accelerator, brake and clutch pedals, with one arm positioned to change gear and the other used to start and stop the engine. Ford continues to conduct real-world testing in European locations and across the world, including the Grossglockner mountain in Austria and the snowy Arjeplog region in Sweden.
NEXT ISSUE: EFFICIENCY AND SAFETY IN FOCUS, HOW LEASING IS CHANGING, IAA MOBILITY REVIEW, AND MUCH MORE!
32 SEPTEMBER 2021
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PARTING SHOT
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FOR A WORLD THAT’S ALWAYS ON
TM
34 SEPTEMBER 2021
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