Global Trailer March 2019

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INNOVATION

BUSINESS

NEWS

Kässbohrer’s Road Tankers CES 2019 Technology Highlights Intermodal Insights AR & VR Megatrends

Wielton Invests in Multibrand Power Market Report: India JOST Factory Tour Project Focus on EU Shipping

VALX appoints Sub-Saharan Distributor OEM and Trailing Equipment News TMC 2019 Event Preview Last Mile and Logistics Developments

Visualization coming into Reality Modular and Digital design

CIMC Vehicle’s modular and digital design beyond the existing design language allows customers to be unprecedentedly autonomous. Customers can be free to choose the configuration and appearance according to their needs and preferences.

www.cimcvehiclesgroup.com

COVER STORY

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POLAND’S POWERPLAY

Wielton Group CEO, Mariusz Golec, embraces the benefits of synergy and integrated power. Following the Polish OEM’s UK expansion announcement last year, we are starting to see some long-term plans come to fruition.

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IN THIS ISSUE BUSINESS 24 MARKET REPORT

Fuelled by strong economic growth, India’s trailer manufacturing industry is currently undergoing the most fundamental structural shift since the advent of the diesel engine. But with progress comes a new set of challenges.

28 CES 2019 REVIEW

Innovators from around the world gathered at Las Vegas for CES 2019 to share their megatrend contributions, but it was developments in road safety, urban mobility and a futuristic last mile vision that stole the show.

38 PROJECT FOCUS

In Europe, a project set up to share loads in truck trailers from different shippers has proven to be quite successful.

Shippers expected a 10 per cent increase in trailer productivity, but the results turned out to be much better.

40 INDUSTRY UPDATE

Dutch manufacturing specialist, VALX, has appointed TSE Big Max as an official distributor of its axles for sub-Saharan Africa.

42 FACTORY TOUR

JOST World’s headquarters in Neu-Isenburg, Germany, is a major hub of activity.

It is also the equipment specialist’s biggest facility tasked with the production and distribution of fifth wheels and other heavy duty components.

46 INTERMODAL INSIGHT

Schmitz Cargobull has expanded its skel range as a result of seeing a resurgence in the European market for versatile, reliable containerised freight options.

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“WIELTON’S GROWTH IS BASED ON STRONG LOCAL BRANDS AND THEIR DEVELOPMENT WITHIN THE GROUP. THE ACQUIRED COMPANIES ARE PARTNERS FOR US, WHICH IN PRACTICE MEANS THAT LANGENDORF, FRUEHAUF AND VIBERTI RIMORCHI, AS WELL AS LAWRENCE DAVID WHO WE ARE INTEGRATING WITH NOW – DESPITE THEIR INCLUSION IN WIELTON GROUP – RETAIN A CERTAIN DEGREE OF AUTONOMY.” Mariusz Golec Wielton Group

EVENT PREVIEW

The American Trucking Associations’ Technology and Maintenance Conference is due to showcase the latest in trailer and truck equipment.

FEATURES

REGULARS

34 AT THE TOP OF ITS GAME

4 EDITOR’S LETTER

56 EVENTS

6 NEWS

59 PREVIEW

Driven by ‘Enginuity’ for more than 125 years, Kässbohrer delivers a comprehensive selection of innovative road transport equipment, including tanker designs specified with the latest technologies.

36 SPANISH SYNERGY

Specialist tanker manufacturer, Farcinox, believes that no matter the final purpose of the road tanker, it should be efficient, durable and functional with the best quality finish.

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EDITOR’S NOTE

PUBLISHER

John Murphy john.murphy@primecreative.com.au

MANAGING EDITOR

Luke Applebee luke.applebee@primecreative.com.au

DESIGN PRODUCTION COORDINATOR Michelle Weston michelle.weston@primecreative.com.au

ART DIRECTOR Blake Storey

LAND OF OPPORTUNITY

DESIGN Kerry Pert, Madeline McCarty

INTERNATIONAL SALES

THE AMERICAN TRUCKING Associations say that the US will be short 175,000 truck drivers by 2026.

While, industry agrees that this is an issue that must be addressed – as road transport moved about 64 per cent of all freight shipments in the States in 2015 – there are bigger conversations on the topic of what might be constraining the market.

One of those constraining factors is waste. Drew McElroy, co-founder and CEO of New York-based freight brokerage, Transfix, claims that trucking can be an incredibly wasteful industry, where billions of miles are driven every year with no trailer loads.

Inefficiencies through hours spent at shipping docks, managing paper administration can make the freight task stressful and a burden on vehicle operators.

Nearly 20 per cent of miles are driven with empty trailers, which can equate to 65 billion empty miles, according to McElroy. So, his solution is to streamline the freight brokerage process to allow for smoother road transport operations. Sometimes, though, the introduction of new technologies in the truck cabin can turn older, more experienced vehicle operators away from the industry entirely.

For Erica Denney of Denney Transport some drivers left the business due

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to the electronic logging mandate.

She elaborated that there is a lack of younger people who look at driving as a career. She believes that the main issue for every fleet today is a shortage of drivers.

In an attempt to promote driver recruitment in the US, Denney Transport ordered 60 new Utility 3000R reefers. The business has grown from a single prime mover and semi-trailer in 1994 to a fleet that comprises over 125 tractor units and 170 refrigerated trailers. Erica Denney’s father’s mission is to ensure every vehicle operator has a chance to succeed and provide for their family.

Utility Senior Vice President Sales & Marketing, Craig Bennett, met with Mike and Erica Denney at an American Trucking Associations event and heard about their efforts to recruit drivers.

“Finding talent is an industry-wide challenge,” said Bennett. “The driver shortage is impacting the economy and increasing costs for companies and consumers. I applaud Denney’s efforts to find and keep quality drivers.”

Ashley Blachford ashley.blachford@primecreative.com.au

CLIENT SUCCESS MANAGER

Justine Nardone justine.nardone@primecreative.com.au

CONTRIBUTORS Sebastian Grote Tim de Jong

HEAD OFFICE

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ARTICLES

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COPYRIGHT

Global Trailer is owned by Prime Creative Media and published by John Murphy. All material in Global Trailer is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material. While every effort has been made to ensure the accuracy of information, Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published.

The opinions expressed in Global Trailer are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated.

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“On roads across the globe: JOST keeps us rolling!”

Trusting the market leader.

Truck and trailer manufacturers around the globe trust in JOST’s comprehensive range of components.

Customer-orientated solutions, innovative products and a worldwide supply of spare parts make JOST the number 1. www.jost-world.com

NNEEWWSS

NEWS INTERNATIONAL ASIA CHINA Manufacturer, ConMet, has celebrated the opening of its new hub assembly facility in Nanjing, China.

ConMet held an official opening event on 11 December, which was attended by customers, government officials, suppliers and ConMet employees.

“This year marks the tenth anniversary of ConMet’s entrance into the China market and in 10 years we have added a production facility in Nanjing and two facilities in Weifang,” said ConMet Senior Vice President of Global Sales and Operations, John Waters.

“We are excited to have the opportunity to respond to our customers and the increased market demand with the addition of this second Nanjing facility.

“We look forward to expanding our ability to support our China customers with our PreSet technology,” he said.

The Nanjing hub assembly facility currently has three production lines in the 11,948-square-metre building with two additional production lines available to accommodate growing domestic and export market demand.

The facility will reportedly provide world class hub assembly automation and digital management of the production lines, reinforcing ConMet’s commitment as a leading supplier of components that are manufactured in safe facilities that utilise clean, energyefficient, state-of-the-art processes and equipment.

DUBAI Dubai-based logistics company, Aramex, has announced the acquisition of Saudi TAL for Commerce and Contract Company (Saudi TAL) for approximately €70.3 million.

“Saudi Arabia is Aramex’s largest 6 / G L O B A L TR A I L E R / I SS U E 4 5

Aramex launched a crowdshipping solution in Saudia Arabia last year.

market in the Middle East and holds significant growth potential for the business,” said Aramex CEO, Bashar Obeid.

“Our acquisition of Saudi TAL supports Saudi Arabia’s Vision 2030, which aims to encourage private sector investment to diversify the economy.

“This acquisition is also in line with our strategy to have leaner and more efficient operations in all markets we operate in, and will allow us to focus on upgrading last-mile delivery through innovative solutions, which will ultimately result in an enhanced customer experience,” he said.

HONG KONG Mark Hellmann has assumed the position of CEO for the global partner network of Hellmann Worldwide Logistics.

The German logistics service provider has a global network with 106 partner companies that covers services along the entire supply chain in 162 countries.

Mark Hellmann succeeds Michael Claus, who has successfully built and expanded the network globally over the past 30 years and will retire at the end of the year.

As one of the co-founders of the Hellmann network, Mark Hellmann has long-standing personal relationships with many partners all over the world. He has been working

for the group since 1980, currently as President & CEO East Asia. Mark Hellmann will retain this function and expand his commitment to the network as ‘CEO Global Network’. He will build on Michael Claus’ long-term strategies and continue to develop the strength of the network alongside the basis of Hellmann owned entities around the world.

“We are delighted to have found in Mark Hellmann a committed successor for Michael Claus who is closely associated with the Hellmann family,” said Hellmann Worldwide Logistics CEO, Reiner Heiken.

“Mark Hellmann has been working for the Hellmann Group for over 30 years and, in addition to the successful establishment and expansion of Hellmann in Asia, has also strongly shaped the Hellmann partner network through his personal commitment.

“We would like to take this opportunity to thank Michael Claus once again for his extraordinary commitment over the past years.

Since 1989 he has made a significant contribution to making the company internationally successful by building up the partner network,” he said.

Mark Hellmann of Hellmann Worldwide Logistics.

EUROPE NETHERLANDS German OEM, Kässbohrer, has delivered 10 Mega Curtainsider K.SCD M to Netherlands-based business, Mooij Forwarding & Logistics, bolstering a fleet that already operates 60 of these vehicles.

Mooij Forwarding & Logistics is a logistic service provider and has been active in transportation industry to and from Eastern Europe through its locations situated in the Netherlands, Germany and Poland.

During the delivery ceremony, Mooij Forwarding & Logistics CEO, Nico Mooij, and Frank den Ouden of the Kässbohrer Sales Team presented speeches about their partnership.

Nico Mooij said: “As Mooij Forwarding & Logistics B.V., we are working with Kässbohrer since 2013 and already operate with 78 double stock Curtainsiders and 60 of them are the Kässbohrer Curtainsider K.SCD. As a result of the durability and quality of the products, in 2018 we invested in 10 Mega Curtainsider K.SCD M that provide flexible load capacity. We are totally satisfied with the quality, durability and operational flexibility of Kässbohrer vehicles in our fleet.

Additionally, Kässbohrer supports us in our after sales operations and focus on our operational needs. Hereby, we have decided to make an investment for another 20 K.SCD M in 2019.”

Frank den Ouden said: “As Kässbohrer, we are meeting the versatile needs of our customers in more than 55 countries and support their operations with our broad after sales services. We are collaborating with Mooij Forwarding & Logistics B.V. since 2013 and lastly delivered K.SCD M that offers flexible load capacity and equipped with safety features such as lateral pillars and anti-theft curtain 8 / G L O B A L TR A I L E R / I SS U E 4 5

and 24 units of double deck bars that provide high volume transportation solutions. We will continue to support our valuable partner Mooij Forwarding & Logistics B.V.’s requirements with our wide range of high-quality products and extended after-sales services.”

The K.SCD M has an internal height of 2,950mm; the fifth wheel height of the vehicle is 950mm; and the king pin capacity is 12 tonnes. The Mega Curtainsider is equipped with 5x2 units of sliding lateral pillars for load securing. The chassis is made from high quality and high strength S460 MC steel, which is ISO 1726 compliant.

To complement the trailer delivery, Kässbohrer provides a broad after sales service including spare parts services throughout Europe.

UK Electronics equipment handler and distributor, Paul Ponsonby, has taken delivery of another vehicle body from Ekeri Trailers, capitalising on the flexibility of side loading with the high

security of a conventional box van.

Mounted onto a new 26-tonne Mercedes Actros chassis, the Ekeri body features six kerbside doors, which allow free access to any item of cargo on the vehicle, along with full closure three-tonne cantilever tail lift to rear.

Also, with 21-Euro pallet capacity and an exceptionally high internal load capability of 2,850mm, the multiple load restraint points and padded side rails make the vehicle ideal for transporting high value items such as data and telecom racks, UPS systems, large format printers and medical equipment.

“Our reputation is built on the safe and secure handling of valuable and sensitive goods” said a company spokesperson. “And to help maintain this, we need to rely on the very best transport equipment. Accordingly, we are a long-term user of Ekeri bodies and in addition to the three rigids and one trailer currently in the fleet, we have a fourth rigid in the pipeline.”

According to Paul Ponsonby, each

The Ekeri box van is mounted to a 26-tonne Mercedes Acrtos chassis.

NEWS

EUROPE side-loading Ekeri body comes with a high-impact floor, ‘great’ side-locker boxes and a high standard of build. The company also says that the vehicles have a long-life expectation and are virtually maintenance-free.

Renowned for their ‘White-Glove Service’, which refers to the company’s meticulous approach and highly trained two-man service, Paul Ponsonby is a former double winner of Motor Transport’s Customer Care Award and was also a finalist on two other occasions.

Paul Ponsonby’s spokesperson concludes: “The Ekeri equipment has been very well accepted by our customers. The easy side-opening, flexibility and security means we can carry virtually any type of load with the sort of speed and efficiency our customers expect.”

Ekeri is a producer of box van semitrailers, box van drawbar trailers and truck bodies, with side opening doors.

The company is known throughout Europe for its quality and innovative approach to transport loading solutions.

FRANCE French rental company, Fraikin, uses the entire idem telematics product range in Germany to monitor its towing units and semi-trailers to avoid unusual wear and damage.

Fraikin Technical Director, Alexander Roas, uses telematics to monitor rental vehicles to ensure long service life.

“For us, it is important that our customers handle the vehicles carefully and in accordance with the manufacturer’s specifications,” he said. “idem telematics allow us to monitor the situation very closely.”

Additional functions such as GPS

Fraikin Sales Manager for Germany, Marcus Burmeister.

tracking or temperature monitoring are chosen by rental customers based on personal needs.

“We need information that doesn’t come from the upper edge of the steering wheel,” said Roas.

“All kinds of data are relevant for us and it always depends what individual customers need,” he said.

Fraikin can share the telematics data with its rental customers and several users can be assigned to the vehicles in the telematics portal from idem telematics. This means that everyone is efficiently provided with only the data they really need.

“Customers can call up the data in their own account and make use of additional services if required,” said Roas.

In addition to highly precise system maintenance, it also provides tangible added value for users of rental vehicles.

All telematics benefits from idem telematics support Fraikin as a new entrant on the German market: with seven decades of experience in Europe, the Fraikin Group has only been active here in Germany for

around three years and is currently developing broad access to the market with its own sales teams and in cooperation with vehicle manufacturers.

Fraikin provides customers the opportunity to hire everything from ambulances to waste collection vehicles. The service provider specialises in these particular vehicles and offers companies and public institutions alike a comprehensive range of services, which includes brand-independent leasing of units, service and repair measures, the provision of replacement vehicles and fleet management. Since these special vehicles are partly very elaborately designed and require a great deal of investment, the rental contracts are also designed for the long term – up to 120 months.

“This means our service corresponds with the many years of use these units actually see in practice,” said Fraikin Sales Manager for Germany, Marcus Burmeister.

“Many customers are simply unaware that it is possible to rent over such a long period of time. This has been our core business for many years,” he said.

UK Machinery mover and installation specialist, Flegg Projects, has added two Krone trailers to its UK and European freight service to manage oversized and high-value cargo.

For general work, including factory relocations, machinery removals and installations, Krone’s Profi Liner curtainsider is reportedly ideally specified - with a lifting, sliding roof and extendable, side-opening rear corner posts.

W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 9

EUROPE CONT. Flegg specifies Krone’s Profi Liner.

“This is all about flexible loading,” said Flegg Projects Managing Director, Jayson Flegg.

“With the Profi Liner, not only can we load through the roof but also, by hydraulically raising it 500mm, we can load large items through either side and then lower again prior to transit. In the same way, the rear corner posts hydraulically extend outwards to give us virtually 3.5m loading through the rear,” he said.

To securely hold each item of cargo in place, Flegg refers to Krone’s Multi Lock securing system which features two-tonne strapping points at 10cm intervals along each side rave.

“We use 60 straps and with so many securing options, we can secure the load at any point along the trailer,” he said. “Add to that, the steel planks with integrated load locking and the additional restraint provided by the Multi Flex chain adaptors and those loads are not going anywhere.”

According to Flegg, virtually 10 / G L O B A L TR A I L E R / I SS U E 4 5

everything the company transports is oversized, uniquely shaped, delicate and of high value – a typical load easily exceeding £1m. This, he adds, is where the attributes of the second Krone trailer also come into play.

Built for strength, security and high load-retention, the Krone Dry Liner Duoplex Steel box van is constructed from insulated galvanised steel cassette panels, including the front bulkhead, which has horizontal internal reinforcement and a 250mm fork lift protection strip. A recessed load lock system accepts universal loading beams, ideal for mixed loads, while the internal walls are reinforced with a 350mm protection strip.

“The Dry Liners will work mostly on our medical contracts,” said Flegg. “This is where we need a combination of sound insulation, secure loading and high internal volume.”

The Dry Liner comes with flush-fit double-locking container-type rear doors and owing to its high strength

Code XL-rated construction, accepts form-fitted and strapless loads within an internal height of 2,815mm.

“We’ve been in the business as an independent machinery-moving and installation specialist for over 40 years; and all this time, precision and care have underpinned the service we provide,” said Flegg. “We couldn’t maintain the high standards we do without using the best equipment and in this regard, Krone have more than met our transport needs.”

BELGIUM Belgian tanker specialist, LAG Trailers, has started 2019 with a new CEO at the head of the company.

Rob Ramaekers is now the General Manager and Managing Director of the LAG Group, while former CEO, Alan Zhang, will continue to work closely with the OEM. LAG Trailers’ Board of Directors confirm its confidence in the current Chief Operating Officer (COO) to manage day-to-day operations.

Ramaekers is a familiar face within LAG Trailers as he has served the business for 29 years.

Zhang was appointed to the LAG Trailers CEO, Rob Ramaekers.

NEWS

EUROPE CONT. Newly appointed SAF-Holland CEO, Alexander Geis.

Director of the ‘Global Business Development’ department of CIMC Vehicles. In this capacity, he is reportedly responsible for all foreign developments in the field of new business models, new products and new markets. From this position, he also maintains a strong bond with LAG Trailers in the future.

LAG Trailers said in a statement that there are no major changes associated with this transition, and it follows the same strategic line which was set out in 2014 by Ramaekers and Zhang along with the management team.

GERMANY Equipment specialist, SAF-Holland, has appointed Alexander Geis as CEO, following the resignation of Detlef Borghardt.

Borghardt mutually agreed on termination of his activities for the Group effective 26 February 2019.

He will hand over his CEO functions immediately to Geis.

“In recent years, Detlef Borghardt has led SAF-Holland to its current size and international significance as an integrated supplier with great drive and expertise,” said SAF-Holland Chair of the Board of Directors, Martina Merz.

“During this time, he has set the course for the future of the Group and laid a solid foundation for its further development.

“Last year, SAF-Holland even reached the position of the world’s largest manufacturer of trailer axles for the first time. Detlef Borghardt and his team can be particularly proud of that.

After almost 20 years in which Detlef Borghardt made a name for himself in various functions at SAF-Holland, we thank him for his dedicated and highly committed work,” she said.

Under the stewardship of Borghardt, SAF-Holland since 2011 has

recorded amazing growth, making it possible to develop the equipment specialist into a global premium brand with system competence.

Sales increased from about 0.8 billion euros (2011) to most recently about 1.3 billion euros (2018). At the same time, the organisation has been reinforced worldwide by the acquisition of [seven] companies.

International expansion has been driven beyond the traditional core markets in Europe and North America, particularly in China and the Asian markets.

“After almost a decade in which we navigated SAF-Holland through stormy times of strong international growth, I would like to take the opportunity to thank all employees of SAF-Holland,” said Borghardt. “You have done fantastic work in recent years and have made SAF-Holland a successful global enterprise. We have jointly created a strong foundation for W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 1 1

EUROPE CONT. the next phase of long-term corporate development.”

Geis, a graduate in business management, has been working for SAF-Holland for over 20 years. Since July 2011, he has been a member of the Management Board and since January 2016, he has also been President of the EMEA region. In this function, he decisively reinforced the European business, making Europe the Group’s most profitable region. Previously, from 2009 to 2016, as Head of the Aftermarket division he extended the Group’s business with spare parts, making it an internationally successful field of business of SAF-Holland. Due to his experience and achievements, in December 2018 he was appointed Chief Procurement Officer in addition to his previous duties.

“Alexander Geis has exactly the right skills we need in the next phase of our corporate development: He has demonstrated how well he can develop a team and create tailored structures and processes,” said Merz.

“Following the phase of increasing internationalisation and growing complexity, this will benefit our company. Not only do his success stories as a businessman stand him in good stead; another key factor is his close association and solidarity with SAF-Holland and its employees.”

Following the announcement, Alexander Geis said: “I would like to thank the Board of Directors for their trust and confidence placed in me. SAF-Holland is a wonderful company that excels through vigorous performance and the immense enthusiasm of its workforce. I look forward to unlocking the full potential of our organisation with our fantastic team and to continue our successful 12 / G L O B A L TR A I L E R / I SS U E 4 5

path.”

In close cooperation with the recently enlarged Management Board, Geis will focus first on stabilising the North American business and developing a long-term Strategy 2025 to further support of the group’s successful growth track.

The medium-term basis for this is the established Strategy 2020.

GERMANY Schmitz Cargobull Telematics’ TrailerConnect unit and the telematics service portal are now certified ‘Good Distribution Practice of medicinal products for human use’ (GDP) compliant, according to Managing Director, Marco Reichwein.

He said that TÜV SÜD tested the hardware and software, certifying both as GDP-compliant at the end of 2018.

The pharmaceuticals industry has been growing rapidly worldwide for years, according to Schmitz Cargobull Telematics. In Germany alone, sales in 2017 were €41.5 billion (an increase of five per cent over the previous year).

Transport volume and demand for end-to-end monitoring and documentation of the supply chain is also reportedly growing in parallel.

The European Commission introduced GDP for quality assurance and protection against counterfeit medicines. Manufacturers,

pharmaceutical wholesalers and pharmacists must have their processes GDP-audited annually.

“With our GDP certificate we can ensure and document comprehensive process safety over the entire supply chain from the recording of the data in the trailer and its storage through to its presentation in the portal or its transmission in the API (interface for the transfer of data to third-party systems),” said Schmitz Cargobull Telematics Product Manager, Hendrik Voth.

As part of the auditing, the following subject areas were viewed in detail: interface description, data storage, data protection, risk analysis for software development / software updates / data protection, the software manual, sensor specification, company description, the management report for 2017 and the ISO 9001.

“In contrast to many other companies, we now possess an official certificate with a test and accreditation number from TÜV SÜD,” said Voth. He added that this is valid for a period of two years.

“Our customers can, of course, request this certificate from us for their GDP audit,” said Reichwein.

“This saves them additional expense and allows them to demonstrate they are now fully compliant with regard to safety documentation for the entire supply chain.”

Schmitz Cargobull’s TrailerConnect unit and telematics service portal are now GDP compliant.

NEWS

NORTH AMERICA US US OEM, CIMC Intermodal Equipment (CIMC IE), has appointed Joe Hite as Director – Business Development-dealers.

In this new position, Hite will reportedly focus on support and development of the OEM’s expanding North American market for intermodal chassis.

Prior to joining CIMC IE, Hite was with the American Trucking Associations with roles in sales, marketing, account management and event management.

Hite is a former member of the North American Commercial Vehicle Show’s (NACV) advisory committee.

He is a former Certified Meeting Professional (CMP) and has been an active member of the American Society of Association Executives (ASAE).

“We’re certainly pleased Joe has joined the CIMC IE team,” said CIMC IE Vice President Sales & Marketing, Trevor Ash. “The experience that Joe brings with him from the intermodal and trucking industry, along with the relationships he has built, will be a huge driver of CIMC IE’s fast-growing expansion into North America and beyond,” he said.

US Equipment specialist, SAFHolland, has acquired a majority stake in US-based automatic tyre pressure management company, PressureGuard.

This acquisition strengthens the SAF-Holland product portfolio for tyre pressure systems in North America and adds a key foundational element in advanced digital Smart products for trailer applications.

SAF-Holland acquired a 51 per cent stake in PressureGuard, effective 9 January 2019. A purchase option for the remaining outstanding shares in the company was agreed between SAF-Holland and the previous owner, Servitech Industries. This option may be exercised at a later date. The purchase price for the acquired stake is in the low singledigit million-dollar range.

PressureGuard’s management team will remain with the company in their current roles to support the company’s ongoing production, as well as its integration into the SAFHolland Group.

The PressureGuard tyre management system has proven to be a durable and robust solution to meet the growing market demand for reliable automatic tire inflation.

This system includes several unique key features such as stainless-steel braided hoses, specialised die cast aluminium hubcaps with protective fins, a patent pending unique axle vent assembly and patented highpressure relief capabilities. The non-pressurised axle design can accommodate all industry standard variations in axle configurations, tire sizes, rim types, axle spindle types, hub lubrication options, pressure settings, power and electrical harness options.

SAF-Holland sees great potential in PressureGuard’s proven tyre pressure management technology to provide an even more comprehensive axle and suspension solution to its fleet customers in North America.

This one-stop sourcing approach provides fleet managers with a single point of contact and ensures a fully engineered system design

that addresses any compatibility issues up front. This approach also simplifies the warranty and aftersale support needed by today’s fleets.

“This acquisition is in line with our strategy of providing complete solutions to our customers and complements our product portfolio of a systems approach,” said SAFHolland CEO, Detlef Borghardt.

“This pre-assembled product addresses many of the challenges facing fleet managers today and simplifies the ordering, production and customer service processes.

PressureGuard has proven itself in the market with a simple, yet robust design,” he said.

SAF-HOLLAND CFO Matthias Heiden added: “Similar to the acquisition of Axscend in 2018, the acquisition of PressureGuard also focuses on expanding our technological capabilities.

PressureGuard’s expertise seamlessly integrates with our digital SMART product platform, giving us a compelling solution for tire management systems to offer our customers.”

US United Parcel Service (UPS) has announced that Philippe Gilbert joined the company as President – Supply Chain Solutions in January 2019.

He will also join the UPS Management Committee, the company’s senior-most leadership group. Gilbert will report to UPS Chief Operating Officer, Jim Barber, and will be based at the company’s global headquarters in Atlanta.

The UPS President – Supply Chain Solutions role is a newly created position. Gilbert will be responsible W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 1 3

NORTH AMERICA for Global Logistics and Distribution, Global Freight Forwarding, UPS Freight as well as the technologydriven truckload freight brokerage business at Coyote.

Most recently, Gilbert served as Regional CEO of the Americas for DB Schenker Logistics, based in Miami, Florida. In this role he led air, ocean, and land logistics in the United States, Canada, and eight countries in Latin America. He previously was Regional CEO for West Europe from 2013 to 2015, based in Paris, France.

From 2005 to 2013, Gilbert served as Executive Vice President for GEODIS Wilson, the freight management division of international logistics provider, the GEODIS Group. There, he managed an integrated network of 57 countries around the world and more than 80 agents. Gilbert also held leadership roles in the logistics space with Saga S.A., Circle International, and Eagle Global Logistics (EGL).

Gilbert earned a Finance degree from Institut Superieur de Gestion (I.S.G.) in Paris, France, and is fluent in English, Spanish, French, and Portuguese.

“As we continue to transform our business and our culture, UPS is blending new leadership with seasoned UPSers to build new ideas and experiences that enrich and strengthen our business,” said UPS Chairman and Chief Executive Officer, David Abney. “With his vast US and international logistics experience, Philippe is uniquely qualified to lead our Supply Chain Solutions business.”

US North American supply chain service 14 / G L O B A L TR A I L E R / I SS U E 4 5

provider, JB Hunt Transport Services, has announced its subsidiary, JB Hunt Transport, has entered an agreement to purchase Cory 1st Home Delivery for €87.1 million.

This transaction will reportedly be funded using JB Hunt’s existing revolving credit facility.

“This is a strategic investment that will further advance our final mile delivery capabilities of ‘big and bulky’ products to consumers and expand our expertise in furniture delivery,” said JB Hunt President and CEO, John Roberts.

Based in New Jersey, and founded in 1934, Cory provides home delivery services of big and bulky products in the continental United States and US territories using 14 warehouses and other customer-owned facilities.

Cory reportedly utilises more than 1,000 independent contractors, carriers and delivery drivers to complete over two million annual deliveries.

“Cory’s exceptional reputation for quality customer service Meritor Tire Inflation System – MTIS.

complements our mission to be the best final mile provider in North America,” said JB Hunt Executive Vice President and President of Dedicated Contract Services, Nick Hobbs.

“We are excited to welcome the employees, independent contractors, contract carriers, and customers of Cory to JB Hunt,” he said.

Final Mile, a division of the company’s Dedicated Contract Services business unit, operates one of the largest nationwide, commingled cross-dock operations and has the capability to serve 100 per cent of the contiguous United States.

In 2017, JB Hunt acquired Special Logistics Dedicated, expanding its pool distribution and fulfilment delivery capabilities. With the Cory acquisition, Final Mile will grow to include 100 locations.

US US company, Meritor, has confirmed that various products have been

NEWS

NORTH AMERICA suspension, hubs, drums and slack adjusters, and Meritor’s new MTec6 large-diameter axle, which provides a 40-pound weight savings to a standard axle, are optional in all Wabash configurations.

“We greatly value Wabash as a longterm customer,” said Meritor General Manger – Trailer, Dave Pritchard.

“We appreciate Wabash selecting Meritor for this important business and look forward to beginning this new phase of our relationship.”

For more than 30 years, Meritor has supplied a variety of trailer axle and braking systems to Wabash, one of the industry’s largest manufacturers of trailers for traditional van and

vocational configurations across multiple applications.

Meritor has engineered and manufactured groundbreaking trailer suspensions, axles and brakes for over 60 years, building more than 10 million trailer axles that incorporate features to improve quality, extend life and reduce maintenance, all delivered within standard lead-times.

More than eight million fleet tires are currently protected by MTIS. Almost one in every three trailers built today is specified with the tire inflation system, and decreases maintenance costs due to longer intervals between retreads.

9376

selected as standard options on all Wabash National dry and refrigerated trailers.

The recently signed three-year agreement takes effect 1 January 2019, and positions Meritor’s loose axles as standard equipment designed to reduce weight and offer structural advantages − contributing to improved fleet productivity through increased fuel efficiency and payload capacity.

The Meritor Tire Inflation System (MTIS) has also been selected as the preferred automatic tire inflation system.

Meritor air disc brakes, along with the Meritor Trailing-Arm (MTA)

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More Information: www.cargobull.com W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 15

NNEEWWSS

OCEANIA ASIA PACIFIC Equipment specialist, SAF-Holland, has appointed Mike Ginocchio as President APAC (Asia, Pacific, India), effective 1 January 2019.

In his role, Ginocchio will report to the CEO, Detlef Borghardt, and become a member of the Group Management Board. The appointment as President APAC relieves CEO Detlef Borghardt from his additional role as President of the APAC/China region.

Ginocchio has been working at the SAF-Holland Group since 1995 and has extensive experience in the commercial vehicle industry, and specifically in the areas of product and market development. Prior to his appointment as president, he held several leadership roles at SAF-Holland, his most recent being Vice President Asia Pacific. In this position, he was also responsible for the successful integration of York.

In order to prepare for the Group’s further growth and its ongoing focus on the emerging markets, the Group Management Board has decided to add the stand-alone APAC region to SAF-Holland’s business segments. As a result, the business segments as of 1January 2019, are now divided into the regions EMEA (Europe, Middle East, Africa), Americas (North and South America), China and APAC (Asia, Pacific, India). This change will also change the segment reporting of the regions mentioned.

“In appointing Mr. Mike Ginocchio, we are pleased to have a seasoned expert for the Asia region as our President of the APAC region and a member of the Group Management Board,” said Borghardt. “With our growth strategy already in place, 16 / G L O B A L TR A I L E R / I SS U E 4 5

SAF-Holland is continuously aligning its business and corporate structures with global developments.”

AUSTRALIA Trailer builder, MaxiTRANS, has entered into an agreement to acquire Australasian Machinery Sales (trading as Trout River Australia), a manufacturer and supplier of live bottom trailers in Australia.

The acquisition, according to MaxiTRANS Managing Director and CEO, Dean jenkins, is a key step in the trailer builder’s ‘Growth in Existing Markets’ strategic initiative.

In FY18, Trout River Australia had approximately $10 million in annual sales and an EBITDA of approximately $2 million. The acquisition is expected to be earnings accretive in FY19 with returns anticipated to exceed MaxiTRANS’ weighted average cost of capital in the first full year of ownership.

The acquisition of Trout River Australia will be completed in two tranches: 80 per cent for $5.9 million in cash (subject to customary completion adjustments), expected to be completed shortly, and 20 per cent by 30 June 2021 under an earn-out arrangement.

Following MaxiTRANS’ recent capital allocation review and the sale of MTC, the acquisition will be funded out of existing cash and debt facilities.

The acquisition is expected to provide a number of benefits to the MaxiTRANS group, including: The addition of live bottom trailers into MaxiTRANS’ comprehensive portfolio will add products with strong application in the infrastructure construction sector; leveraging MaxiTRANS’ national dealer network

will drive increased sales of Trout River Australia live bottom trailers; improved production capacity and efficiency of the existing Trout River Australia business by leveraging MaxiTRANS’ facilities, procurement systems and engineering and manufacturing expertise; and improved after-sales customer service for Trout River Australia customers through the MaxiTRANS’ national parts network, MaxiPARTS, as well as MaxiTRANS’ national network of repair and service facilities.

“We look forward to welcoming John Surwillo and Neil Lehman, the current owners of Trout River Australia, to the MaxiTRANS group,” said Jenkins.

“John and Neil’s ongoing involvement in the business will facilitate a smooth transition and enable the Trout River Australia business to continue to benefit from their deep product knowledge,” he said.

MaxiTRANS Industries Limited (ASX:MXI) is one of Australia’s largest suppliers of truck and trailer parts to the road transport industry in Australia. MaxiTRANS is also the largest supplier of locally manufactured, high quality heavy road transport trailer solutions, including trailer repairs and service, in Australia and New Zealand.

Trout River Australia is based in Hallam, south-east Melbourne, and is a leading manufacturer and supplier of live bottom trailers in Australia.

Live bottom trailers reduce operator risk as the payload is discharged by a conveyor belt system in the trailer floor as opposed to a tipping trailer.

Demand for live bottom trailers is expected to increase in bulk product markets due to the inherent health and safety benefits of their design and operation.

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W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 17

POLAND’S

POWERP WIELTON GROUP CEO, MARIUSZ GOLEC, EMBRACES THE BENEFITS OF SYNERGY AND INTEGRATED POWER. FOLLOWING THE POLISH OEM’S UK EXPANSION ANNOUNCEMENT LAST YEAR, WE ARE STARTING TO SEE SOME LONG-TERM PLANS COME TO FRUITION.

Wielton Group CEO, Mariusz Golec.

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COVER STORY

LAY

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he Wielton Group announced the acquisition of UK-based OEM, Lawrence David, at a press conference at the IAA Commercial Vehicles Show in Hanover last year. In the first stage of the transaction, valued at approximately €29.2 million, the Wielton Group acquired 75 percent of Lawrence David’s shares, with the remaining 25 percent within the next three years.

The key in implementing the Wielton Group’s development strategy through acquisitions is dubbed ‘multibranding’, according to Wielton Group CEO, Mariusz Golec. He clarifies that this is integral to building the Group’s strength on the basis of recognisable brands, such as Lawrence David, which has previously been applied to Germany’s Langendorf, France’s Fruehauf as well as Italy’s Viberti and Cardi.

Q: The acquisition announcement of Lawrence David at the 2018 IAA Commercial Vehicles Show was big news. How is the integration going?

A: The acquisition of the British company announced in September last year is another step towards strengthening and building the international position of Wielton Group, and, like previous acquisitions, is part of our development strategy for 2017–2020.

Currently, we are focusing on its integration under the common name of the Group, and in my opinion this process is progressing according to the plan.

Ultimately, thanks to the integration, Lawrence David will be able to take full advantage of our purchasing power, as well as Wielton’s good practices, and, what is equally important, it will also expand its range of products to include semi-trailers, tippers and container vehicles.

Synergies will also be observed for the entire Group as Wielton gains a partner who brings to our portfolio last mile products, as well as special fast loading semi-trailers – the pillar-less curtainsiders. I should mention that as part of our plan, within a year Wielton will also take over part of the production of chassis for the British company, which will be manufactured in Poland.

Our experience clearly confirms that what performs well in building Wielton Group’s international position is its unique business model, which involves multi-branding. This means building the Group’s strength on powerful local brands with an established market position – such as Lawrence David and previously Langendorf, Fruehauf, Viberti and Cardi. All these companies undoubtedly have their own unique character, their know-how to date

presents a great added value for the Group, but actually their individual full potential can only be observed through integration.

This process is a priority for Wielton Group, because it enables the companies acquired by us to benefit from the economies of scale in purchasing, processes, production and finance. The examples of Langendorf and Fruehauf are the best proof that the Group’s focus on the development of the acquired

FAST FACT Langendorf, with headquarters in Waltrop, was incorporated into the Wielton Group in 2017. It is a family company, one of the oldest in Europe, with over 70 years of trailer manufacturing history. Currently, it is one of Europe’s leading vehicle manufacturers, offering a wide range of products: semitrailers, tippers, prefabricated conveyors, low-loaders, two-level trailers, transporters of technical glass and special vehicles. The company is an undisputed leader in glass transport vehicles.

Incorporating Langendorf into the Wielton Group benefits both parties. Wielton gained a partner with excellent knowledge of the local German market. The transaction also expanded Wielton’s portfolio to include specialised vehicles for the transportation of glass and prefabricated elements, as well as insulated tippers.

The Wielton Group acquired 80 percent of shares in Langendorf in May 2017. The transaction value amounted to €5.3 million.

The Group plans to acquire the remaining 20 percent before the end of 2022.

W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 19

companies brings them measurable results.

Closing the first year under the wing of Wielton Group, Langendorf saw an increase in its revenue by almost approximately 40 percent, while Fruehauf received support in financing investments in automation and robotization. On the other hand, companies operating within the Wielton Group add to its portfolio new product groups, which significantly affects its market power and position.

Lawrence David is a manufacturer with more than 45 years of experience in the industry.

It is a strong, local brand, ranked third on the British market (total market share of 9.9 percent). The company will continue its operations under its current name, while Wielton plays a consolidating role. It will also continue to be managed by its current owner, Lawrence Marshall, who as Managing Director will be responsible for the unification with the Group.

Q: Why is multibrand power important for Wielton Group?

A: Wielton’s growth is based on strong local brands and their development within the Group. The acquired companies are partners for us, which in practice means that Langendorf, Fruehauf and Viberti Rimorchi, as well as Lawrence David who we are integrating with now – despite their inclusion in Wielton Group – retain a certain degree of autonomy. This means that their existing owners manage them – for example in Germany and France – and participate in

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Wielton press conference at last year’s IAA Commercial Vehicles Show in Hanover, Germany.

the process of building the market position. As I mentioned earlier, Wielton is a consolidating brand. Such a model, based on close partnership, makes it possible to effectively lead the acquired company through the process of its integration into the Group’s structures in a way that is safe from the business point of view.

Q: What were your highlights from IAA? Were there any trends at IAA that interested you? What were they?

A: One of the leading trends observed at last year’s IAA was undoubtedly the presence of the largest manufacturers of trailers, semi-trailers and bodies of vehicles up to 3.5 tonnes, designed with the last mile segment in mind. It is worth noting that these solutions were presented in various configurations and among them were bodies intended for the courier service industry, as well as refrigeration solutions for the transport of slightly more sensitive products, including food products.

During the trade fair, each manufacturer also presented their new telematics solutions. These were primarily tools for fleet management and vehicle location analysis, as well as those supporting processes related to repairs and maintenance operations. Wielton was one of the exhibitors presenting such solutions. We continue to make all efforts to meet the needs of our customers and focus on the optimisation of transport and logistics, which resulted in the development of Wielton Digital Services.

In recommending Wielton Digital Services to our customers, we offer a comprehensive package of solutions including three building blocks: data collection, professional database system and easy integration of data with the customers’ systems. In the first building block, we provide a system of devices mounted on a semi-trailer in order to collect information about the location of the vehicle (GPS), technical data from the braking system (EBS), axle load (load weight) and tyre pressure. Our telematics system is based on the correct selection of existing and proven hardware solutions, which are distinguished by their reliability. In the second building block, we provide professional software necessary to collect, process and manage large data sets, which will facilitate fleet management. In the third building block, we provide solutions that enable connection to leading planning systems and thus easy exchange of important data, as well as their correct presentation and interpretation for business purposes.

COVER STORY

Q: Are there any new developments in the last mile/home delivery line of products for Wielton and Lawrence David?

A: With the acquisition of Lawrence David, Wielton Group enters a stable and ready market with a total potential of about 23,000 vehicles per year.

The acquisition also provides an opportunity to extend the range of products offered by the Group, because the British company offers last mile/home delivery products, which are widely used in the FMCG sector, as well as in the booming e-commerce sector.

One of the criteria of the acquisition strategy is the unique know-how of the acquired businesses, and in this case Lawrence David perfectly fits into our model of producing chassis in our factory in Poland, which allows us to improve our margin.

Q: At the IAA press conference you mentioned pillar-less curtainsiders that allow for more efficient loading and faster transport. Do you have anything else to add to this?

A: Lawrence David’s pillar-less curtainsider has been engineered to offer maximum loading and unloading access. The body follows the slope of the trailer so there is no increase in the overall height of the vehicle and because there are no pillars, it is easier, safer and quicker to load and unload along the full length of the trailer.

The trailers are built using ‘All Bolted Construction’ which is proven to increase the longevity of the body. It makes the trailers easier to repair in the event they are damaged, which reduces the amount of time they are off the road.

Quality is paramount to Lawrence David. All our trailers are designed and manufactured under a quality management system that conforms to ISO 9001:2015 and have been MTS tested to ensure they can withstand the rigours of any operation.

Q: You have previously mentioned a strategic objective to double the Group’s revenues from PLN 1.2 billion (€281 million) in 2016 to PLN 2.4 billion (€562 million) in 2020, and grow sales from 12,900 to 25,000 units during the same period. How is this goal tracking?

A: At the beginning of April 2017, Wielton Group announced its development

strategy for the next four years. It is based on both organic growth and acquisitions. The Group’s strategic objectives are to double the Group’s revenues from PLN 1.2 billion in 2016 to PLN 2.4 billion in 2020, to grow sales from 12,900 to 25,000 vehicles and to maintain a high level of profitability.

We can say today with full conviction that we are implementing the strategy as planned and according to the adopted schedule. Pro forma consolidation with Lawrence David acquired in September 2018 would show that we have already achieved two key objectives, namely the revenue of PLN 2.4 billion and 25,000 of sold units.

Q: Is there a particular fleet or road transport operator that you work closely with? I am interested in learning more about major or specialised trailer orders.

A: Wielton’s mission is not only to offer reliable, safe and professional vehicles, but, what is equally important, to extend the range of offered products based on a comprehensive analysis of our clients’ needs. Close relationships with the clients, knowledge of the industry and the nature of our partners’ business often result in joint projects.

One example of such solutions are Wielton’s semi-trailers designed to transport coils and sheets. Purchasers of such vehicles include

Wielton’s Strong Master Optima.

W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 2 1

COVER STORY

Regesta, a company specialising in the transport of goods using coil-mulda type semi-trailers. Regesta has been our client for many years. Its key partners include mainly manufacturing and trading companies, as well as companies operating in the construction and steel industries. Bearing in mind the nature of the industry and business needs, we offered Regesta a jointly developed new model of Coil Curtain Master semi-trailer, which is one of the tailormade flagship solutions in our portfolio.

Another excellent example of customisation being a result of close relationships with our business partners is a project completed for a large fleet company which, as one of the first representatives of the transport industry, implemented the ‘trucks on rails’ concept for the Polish market. We are talking about a semi-trailer to transport home appliances. Together with our client, we have developed an innovative solution which, thanks to its functionality and ease of use, quickly became one of the leading solutions on the market. Bearing in mind excellent outcomes of this project, we wanted to go one step further and decided to continue our cooperation – this time to adapt this solution to logistics services provided using railway wagons. Thanks to this decision, as well as the intensive work of our engineers, the range of products from Poland has been extended to include another unique solution – curtain semitrailers for intermodal transport, which are certified to be used in transport by rail and roll-on/roll-off ferries. Their unique features include suspension dedicated to vertical loading, movable rear bumper and special fasteners, which make it possible to load semi-trailers onto a wagon or ferry.

Q: How is the Langendorf business going? Are there any new innovations to discuss?

A: From our point of view an overall performance of Langendorf is very optimistic as the company have strengthened their position in the inloader market and it developed its role as manufacturer of tippers for niche markets.

Mainly with their tippers for special purposes they became an important complement in the portfolio of our group. Langendorf presented about a year ago a combination between a very special glass-inloader and a general cargo trailer. This was a development between the forwarder, the haulier and the manufacturer. A typical example for a dedicated solution. They were Wielton semi-trailer Curtain Master.

awarded for this so called Trans-Loaderproject.

Q: Are there any new developments with Fruehauf?

A: Due to the dynamic development of the French market, we are currently investing in order to increase the production capacity of Fruehauf. Recently, we have put into service a modern automated chassis production line there. This technology has also been used in our Poland plants for several years. Its transfer to Auxerre plant is the result of integration processes, as well as the search for synergies and the exchange of good practices between all entities operating within the Group.

Q: Are there any new in-house facility developments across the Group worth noting?

A: Among the investments that we consider crucial from the Group’s point of view, we should mention the cataphoresis coating line built and put into service, as well as two painting lines. We have also completed an automated assembly line in Poland, which we use for the installation of pneumatic and electric elements, as well as for axle assembly, thanks to the use of the bottom transport system. We have put into service a new welding shop with three chassis production lines and one line for steel tipper bodies – automated thanks to the top transport system.

Recently, we have also completed work on the opening of a high-bay warehouse and a new hall for packaging semi-finished products and products for our subsidiaries and assembly plants.

We have a lot of new plans with the aim to steadily build the Group’s production potential and increase the efficiency and flexibility of logistics services for the companies operating under the Group’s name. At the same time, we strive to increase the capacity and implement new solutions in our plants. The modern welding and sheet metal forming technology, on which we are currently hard at work, may serve as an example. www.wielton.com.pl

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FUELLED BY STRONG ECONOMIC GROWTH, INDIA’S TRAILER MANUFACTURING INDUSTRY IS CURRENTLY UNDERGOING THE MOST FUNDAMENTAL STRUCTURAL SHIFT SINCE THE ADVENT OF THE DIESEL ENGINE. BUT WITH PROGRESS COMES A NEW SET OF CHALLENGES. [ Story by Sebastian Grote ]

H

ome to one of the fastest growing economies of the past decade, navigating change has become a defining trait of India’s socioeconomic identity.

Ranked as the world’s 12th largest economy in 2007, it is now considered the seventh largest overall and third if adjusted for purchasing power parity. It is also the world’s third largest market for smart phones and the sixth largest for cars, and has recently announced a manned mission to the moon – a feat unthinkable even a few short years ago.

Responding to the nation’s inexorable rise – in 2018, the International Monetary Fund (IMF) likened it to an elephant falling into stride – India’s commercial road transport community is required to fast-track organisational development and brave decades worth of growing pains in record time.

“From a trailer manufacturing perspective, India is going through an

It is an established fact, beyond any doubt, that trucking operations and the efficiency of the same is of primary importance in the growth and development of any economy and society, according to Rajesh Neelakanta of BVC Logistics.

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MARKET REPORT

unprecedented evolutionary process right now,” says Balasubramanian Natarajan, Executive Editor at Motorindia, a globally renowned publication focusing on commercial vehicles.

“In the past – and with that I mean merely a decade ago – quality management and safety simply didn’t play much of a role in Indian trailer manufacturing. It’s always been about price first and delivery time second. Spec always came last, and safety wasn’t even on the agenda. Today the industry is a very different beast compared to those days.”

Since international logistics firms started breaking into the Indian market, safety and reliability have become an inherent part of any sales discussion, Natarajan elaborates, forcing suppliers to “systematically question everything they thought they knew about business”.

According to the Chennai-based market expert, multi-national corporations not only follow strict corporate guidelines and refuse to compromise on proven safety standards, but also bring a new take on operational efficiency to the table.

“International transport businesses have a classic hub-and-spoke mentality, so they require more volume on inbound routes and therefore push for more articulated vehicles on the road,” he says.

“Of course that’s interesting from a business perspective, but it’s also an incredibly complex operational challenge – different portfolio, different standards, different volumes. Not to mention that many want factory-new equipment for every new job, so the second-hand market will certainly see dynamics change down the track, too.”

However, it’s not just external pressures that are forcing change upon the industry. “Government initiatives such as 2017’s trailer code have also contributed to the situation,” Natarajan adds, hinting at new legislation aimed at improving safety standards and manufacturing processes.

“It’s the perfect storm, really. On the one hand you have international customers

insisting on globally proven procurement policies and standard procedures, on the other one you have local authorities pushing for improved governance from within. Without economies of scale and the right talent, anyone would struggle to adapt – even businesses that have learned to survive in an economy as volatile as India’s.”

Exacerbating the situation, according Natarajan, is India’s complicated econopolitical climate. While booming car sales and a budding e-commerce market continue to spark demand for road transport services and fuel infrastructure investment, growing dissatisfaction among farmers and rising unemployment have prompted the Modi Government to schedule a federal election in May. According to Bloomberg, the prospect of a ballot will freeze private and public investment until the next Government can come in with a mandate and make decisions about taxation and spending that have majority appeal.

“If you consider just how much change we’re seeing unfold at once, it’s understandable that business owners remain cautious – and that’s true for both manufacturing and the actual transport business side,” Natarajan says. “With

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MARKET REPORT

Last year, technology company, Wabco, demonstrated its Intelligent Trailer Program at its test track in Chennai.

a budget designed to keep official machinery running till the next election, but not much else, they could be facing severe issues right when they decided to upgrade and retool.”

That’s also true from a operational perspective, he adds. “Operationally, at the micro level, India has long been a rigid truck market. Of course there have always been big players, but the majority of vehicles available were owner-operated and often sub-contracted to someone.

“Now we see a lot of consolidation happening – both as a result of international competition and tightening regulations. Even if you can compete on price, you probably struggle to tick all the boxes when it comes to safety, training and documentation. Systematically speaking, the economy has to keep moving to support that evolution. An election isn’t very helpful for that.”

According to the Federation of Indian Automobile Dealers Association (FADA), the market has already started to cool down in December, with dealers widely reporting falling stock levels as they prepare for the imminent pre-election slump. Overall demand, however, is still expected to be “above average” as state governments continue to enforce a ban on overloading by impounding overweight vehicles, in turn fuelling new equipment sales.

From a technology perspective the evolution of Indian trailer building is likely to take on a distinct European feel, says local industry expert, Bharat Dhruv, a retired Tata executive-come-consultant. “When it comes to safety and environmental standards, the market is turning to Europe,” he says, referring to the rising influence of European suppliers like BPW and SAF-Holland on the subcontinent.

“But there are difference, of course. Trailer weight is a very important criterion in Europe, for example, mostly because the local road system is so well developed.

In India, however, our rough roads require trailers to be built using heavy material and mechanical suspension. Cost is also a major concern in India, so the challenge will be to combine the best of both worlds.”

According to Dhruv, the Government’s much talked about Trailer Code might just help industry find the right balance, as it will standardize a series of critical components such as tyres, rims, brakes, landing legs and wiring. The Code will also mandate rear- and side-underrun protection, he says. “Manufacturers now have to be officially certified and have their equipment tested for manoeuvrability and braking performance before they can sell anything, which is a major step in the right direction.”

While value-added services like telematics and full service contracts may not

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suit the Indian taste for the time being, he adds that more “hands-on” innovations such as lashing belts with ratchets, collapsible roof covers and curtain-siders do resonate with the local audience and could become even more prevalent as the implementation of the Code continues.

Despite a general shift towards articulated vehicles, however, Dhruv remains sceptical about the true potential of multi-axle trailers in India – at least for now. “Trailers certainly offer a payload advantage, but as none of the OEMs have their own trailer manufacturing operations, they might not be too eager to move towards trailers and might prefer to continue focusing on multi-axle rigid trucks instead. It’s an interesting tug o’ war at the moment.”

According to Vinod Aggarwal, Managing Director of local truck OEM, Volvo Eicher, many a “top fleet” has already answered that question in favour of the articulated trailer and is actively working with the trailer industry to develop suitable equipment that is capable of meeting international safety and efficiency standards – regardless of whether or not they are associated with a truck brand.

The situation is not unlike China’s 10 years ago, he recently told the Times of India. Back then, the Chinese heavy-duty was only about 250,000 units strong but quickly rose to close to million – largely due to the success of articulated combinations. “India is going through that kind of growth right now.” www.globaltrailermag.com

FAST FACT Between 2019 and 2035, the world’s 10 fastest-growing cities by GDP will all be located in India, according to research institute Oxford Economics. Surat, a city in the north-western state of Gujarat that is renowned as a diamond processing and trading centre, is predicted to see an average annual GDP growth rate of 9.2% from 2019 to 2035 – making it the fastest growing urban economy in the world. In second place is Agra – home of the Taj Mahal – which will grow by 8.6% year on year, according to Oxford Economics.

Bengaluru – also known as India’s Silicon Valley because of its booming tech and start-up scene – will grow 8.5% year on year by 2035, putting it in third place.

MARKET REPORT

2017

WINNER CATEGORY SAFETY

2019

WINNER CATEGORY CHASSIS

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LEAVI N G

LAS VEGAS

INNOVATORS FROM AROUND THE WORLD GATHERED AT LAS VEGAS FOR CES 2019 TO SHARE THEIR MEGATREND CONTRIBUTIONS, BUT IT WAS DEVELOPMENTS IN ROAD SAFETY, URBAN MOBILITY AND A FUTURISTIC LAST MILE VISION THAT STOLE THE SHOW.

T

he 2019 International Consumer Electronics Show (CES), held at the Las Vegas Convention Center in January, brought innovative road transport concepts – among other brilliant ideas – to a mainstream audience.

The hosts of the event, Consumer Technology Association (CTA), were adamant that keynote speaker and US Secretary of Transportation, Elaine Chao, was leading the Administration’s efforts to realise the promise of transportation technology and innovation (including self-driving vehicles and piloted/remotecontrol drones) while ensuring public safety.

One of the most prominent road safety innovations presented at the show was the announcement of the Valeo XtraVue trailer – a system that offers driving assistance for trailer and caravan users. It uses video images captured from cameras located at the rear of both the vehicle and trailer/caravan, combining them into a single homogeneous image that renders the trailer invisible, enabling the vehicle operator to see behind what would normally be obstructed.

Gilles Elmoznino, Valeo Media Relations, confirmed that the manufacturer has produced 10 million ADAS sensors between 1991 to 2015 and plan to produce another 10 billion between 2015 and 2023.

“Sensor technology has changed over the years to be more precise, jumping in quality from a quarter VGA to 20 megapixels,” he says. “The Valeo sensor portfolio is the widest in the automotive industry to cover these specific applications while ensuring the necessary safety requirements. Valeo is the only company to use Scanner LIDAR in serial production.”

The Valeo XtraVue Trailer is still in development with a contract with a major OEM, according to Elmoznino. He adds that the technology is not region specific

The disappearing trailer.

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in regards to market launch.

Elmoznino says the XtraVue Trailer systems works with two cameras. “The standard rear camera from the vehicle and an additional one mounted on the trailer. The system also uses an image stitching controller and the standard centre stack screen, too.”

The process for installing this system seems quite straightforward, with self-calibration capabilities after a few manoeuvres. Valeo stresses that this technology puts safety and convenience first, ensuring greater productivity for fleets as well.

Since presenting this innovation at CES, Valeo has received a lot of positive feedback as well as interesting connections with startup enterprises.

Following safety innovations, there were also demonstrations of what the last mile might look like in the near distant future. Technology company, Continental, is steadily pushing the boundaries of autonomous vehicle technology, exploring new use cases and advances every day. At

SHOW REVIEW

A glimpse of a robot-delivery future.

CES 2019, Continental demonstrated how a driverless vehicle could be used to stage and deploy delivery robots, taking packages all the way to the consumer.

The seamless integration of a driverless vehicle – in this case, the Continental Urban Mobility Experience (CUbE) – and a delivery robot present a more effective and efficient distribution of goods. The CUbE, Continental’s autonomous electrified development platform, is generally considered as a solution for urban ‘first or last mile’ mobility. This type of vehicle – often referred to as a robo-taxi or pod – will be a part of the seamless mobility value chain. The purpose of these vehicles will be extended to goods delivery to further utilise the available transport capacity and minimise downtime.

Market estimations show that the need to transport goods will even outpace the strongly growing need for people transport in densely populated areas.

With expertise in scalable technologies and solutions like sensors, environment perception and modelling, localisation, positioning, situation analysis, decision making and mechatronic actuators, Continental supposedly has the solutions and know-how to address this need.

“With the help of robot delivery, Continental’s vision for seamless mobility can extend right to your doorstep,” according to Continental Head of Systems & Technology – Chassis & Safety Division, Ralph Lauxmann.

“Our vision of cascaded robot delivery leverages a driverless vehicle to carry delivery robots, creating an efficient transport team. “Both are electrified, both are autonomous and, in principle, both can be based on the same scalable technology portfolio. These synergies create an exciting potential for holistic delivery concepts using similar solutions for different platforms. Beyond this technology foundation, it’s reasonable to expect a whole value chain to develop in this area.”

Driverless vehicles, in this context, offer a smart solution the meet the challenges of urban mobility. Goods and parcel delivery to residential areas, for instance, is a growing and dynamic market, driven by e-commerce sales that are increasing every year. With the growth of this segment, delivery cost per hour is gaining importance. This positions last mile and delivery services as a differentiator.

Automated goods delivery is forecasted to provide an answer for up to 80 percent of all business-to-consumer deliveries, according to Continental.

The technology company views automated goods delivery as an integral part of future urban mobility as an addition to conventional goods delivery. The CUbE can carry one or multiple delivery robots and deploy them to handle the

last yards of the goods and parcel delivery logistics chain.

“Industrialising the automation of goods delivery requires reliable, robust, highperforming and best-cost technology – a mix perfectly reflected in the automotive equivalent of automation,” Lauxmann says.

“It is this very profile of expertise that has made Continental one of the industryleading suppliers of advanced driver assistance systems and vehicle automation.”

With existing delivery robots serving as a development platform, Continental claims to be ready to transfer and scale automotive technology to meet robot manufacturers’ requirements.

Continental North America Director of Systems & Technology, Jeremy McClain, believes that the challenges to a delivery robot parallel what we already see in automated vehicles.

“Delivery robots will require technology that is just as advanced and robust as our automotive solutions,” he says. “With the ever-increasing popularity of online shopping and the growth of megacities, unique solutions for package delivery will be needed.

Driverless vehicles combined with delivery robots could be the perfect answer.”

Continental posits that driverless vehicles will represent a vital element in the Smart Cities of the future. They are considered by many experts as a key element of future mobility concepts to solve the challenges of the urbanisation. A driverless vehicle can be in use almost 24/7. Innovative city planners see driverless vehicles as a valuable addition to public mass transport by eliminating the need for a privately-owned car to get to the nearest point of access to other means of transport.

“There will be peaks in demand for driverless vehicles during the day,” McClain says. “To make use of driverless vehicles outside those peak ‘rush’ hours is where robot-delivery comes in. We see great potential in our automotive technology to support robotics companies in developing autonomous delivery robots as an additional use case for driverless vehicles.” www.ces.tech

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N EW DEVE LOPM E NTS

HUGE SAVI A RECENT SURVEY BY THE GERMAN CHAMBER OF COMMERCE AND INDUSTRY (GCCI) CONCLUDES THAT THE GLOBAL TRANSPORT WORLD WILL SEE NOT ONLY A PROFOUND TECH REVOLUTION, IT SHOULD ALSO PREPARE FOR HUGE COST SAVINGS, EVEN THOUGH THE SURVEY WAS WRITTEN FROM A GERMAN PERSPECTIVE. [ Story by Tim de Jong ]

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hat immediately stands out in the GCCI survey is the year 2030, which is considered to be a true turning point. Global Trailer heard similar sounds at last year’s IAA Commercial Vehicles Show, but from a completely different source. There, commercial vehicle manufacturer, Iveco, said it expected that LNG trucks would enjoy strong growth, and that from 2030, hydrogen trucks would become a serious alternative.

The sources in the German study, mostly executed by KE Consulting of Cologne, expect that autonomous trucks (Level 4) won’t be on our roads en masse by 2030. At best, trucks might be equipped with Level 3 technology, which hardly differs from Level 2, which we saw recently on the new Freightliner Cascadia, and last September on the new Mercedes Actros. On long motorwaystraights these trucks can take over from their driver. However, perfect internet capability, preferably 5G, is required, and it became clear only recently that this is still a problem, most specifically in Germany. Driverless driving, which is known as Level 5 autonomous technology, is not to be expected to be possible

Daimler platoon.

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at all 11 years from now. However, with first steps being taken on the road to autonomous technology, huge savings are to be expected.

According to researchers at KE Consult from Cologne, Germany alone stands to accrue billions in savings. The researchers refer to savings in costs as well as in CO2 output. KE Consult calculated that Germany will be able to save 8.3 billion euros by the year 2030, provided that Level 3 trucking will be seriously on its way by that time, compared to the current road transport cost levels. CO2 output will be reduced by some 6.2 billion tonnes, they predict. In the long term, when driving without a driver will have become mainstream, savings would even

AUTONOMOUS DRIVING

MEAN

NGS double to levels of up to 15 billion euros.

The most obvious effect of new technology for road transport equipment will be that significantly less fuel will be needed.

Already when we look at platooning, that is undergoing several tests in various countries, a saving of 10 per cent maximum is within reach. Should passenger car traffic go into a smoother flow as well, following from platooning trucks, savings will be really significant, according to the Germans, even when this happens on B-roads.

KE Consult expects the German fuel bill to drop by a whopping 30 per cent. When we reach Level 5 autonomous trucking, trucks can be operated without a driver, and savings amount to 30 eurocents per kilometre, KE Consult expects. Of course, we’re not there yet. But even if only 10 per cent of German trucks were to be operated autonomously, the German transport business alone would book cost savings amounting to around 2.5 billion euros. KE Consult stresses that this a conservative estimate. There are also scenarios calculating savings of 60 per cent compared to current costs in road transport.

The Germans also expect to develop optimisation for regular traffic. A decrease in congestion will follow from it. Expected gains in time on motorways will add up to 20 per cent and on secondary roads to 15 per cent, KE Consult estimates.

Maybethis sounds a bit optimistic, taking into consideration the numerous roadworks the Germans are infamous for, but it is a significant effect when it leads to lower accident rates. The theory sounds very logical, but a precondition here, again, is

KE Consult expects the German fuel bill to drop by a whopping 30 per cent.

that systems have to work flawlessly, permanently. Still, KE Consult estimates that 10 per cent fewer lethal accidents is realistic. This would save a whopping 5.7 billion euros in medical costs. Cities will be easier to reach and at the same time, they will need fewer parking spaces. Another effect would be that people will sort of rediscover older cars that still require people with an old-fashioned drivers license, just for the fun of it. KE Consult also expects more people to prefer public transport over possibly owning a car, as commuting in a world full of autonomous cars and trucks is not that different from a train journey.

A disadvantage the report hardly touches on is the need to work with safe technology, which can never be prone to hacking.

It’s obvious that future vehicles stuffed with autonomous technology will be quite expensive. However, the total cost of ownership will become much cheaper. This cost advantage increases when annual mileages are relatively high, also taking into account drivers costs. The authors of the survey quote a Roland Berger survey, which investigated platooning in the US. There, the investigators expected a fuel cost reduction of five per cent by 2030 and double that 10 years later. By 2040 the number of traffic accidents will have reduced by 40 per cent in the US, according to Roland Berger. There as well, fewer traffic jams are expected because of a better traffic flow. This is also one of the effects the Dutch road traffic bodies are investigating.

Apart from Roland Berger, KE Consult also used similar surveys from McKinsey and PwC. They predict cost savings of 28 to 35%, also mainly in fuel and driving personnel. Other cost components contribute very modestly to the new era of autonomous driving. KE Consult also quotes a survey by the International Transport Forum (ITF). Here, four scenarios were calculated concerning the implementation of autonomous driving. The conservative scenario doesn’t expect autonomous traffic in the first two decades to come, while the most progressive one expects serious changes within three years from now. In all four cases, savings appear to be huge.

The question remains in what timeframe a driver’s directive will be no longer relevant, as the role of what we now know as ‘the driver’ will change profoundly. When trucks can be operated 24/7, vehicle parks will become much smaller. Working days change when trucks no longer have to stop to rest the driver. The great majority of current drivers is expected to be no longer needed when Level 5 is reached. Also in private transport, there will be huge consequences following from the radical changes in vehicles technology in the upcoming decades. www.globaltrailermag.com

W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 3 1

SAVE THE DATE

1ST - 3RD APRI L 2020 MELBOU RN E CON VEN TI ON & EXHI BI TI ON C EN TRE

SUSTAINABILITY | AUTOMATION

I N D U ST RY 4 . 0 | E - CO M M E R C E

AT THE TOP

OF ITS GAME

Kässbohrer is one of the leading European manufacturers for tipping and non-tipping silo semi-trailers.

DRIVEN BY ‘ENGINUITY’, KÄSSBOHRER DELIVERS A COMPREHENSIVE SELECTION OF INNOVATIVE ROAD TRANSPORT EQUIPMENT, INCLUDING TANKER AND SILO DESIGNS SPECIFIED WITH THE LATEST TECHNOLOGIES FOR MORE THAN 125 YEARS.

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erman OEM, Kässbohrer, boasts a diverse trailing equipment product range that is available in more than 55 countries. This year, the manufacturer will continue to provide high quality vehicles to the industry, and to sustain its ongoing success, it will focus on achieving perfection in terms of quality, empty trailer weight, after sales service, spare parts – ultimately offering the optimal Total Cost of Ownership (TCO).

Within its vast selection of products, Kässbohrer provides the most digitally advanced, lightest and technologically complex tanker and silo vehicles in seven product groups with more than 100 different vehicles to its customers in Europe.

The sectors covered by Kässbohrer include, renewable energy, construction, dangerous goods and Fast Moving Consumable Goods (FMCG). Kässbohrer is set to exhibit its K.SSL vehicles at the upcoming Bauma Fair on 8-14 April

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2019 in Munich along with its complete construction vehicles range.

Also, to satisfy customer requirements, Kässbohrer will launch two new vehicles during 2019. The new products are enhancements to its existing portfolio leveraging technical capabilities stemming from expertise in manufacturing the widest product range and how those technical capabilities are adapted for improvement.

Technical expertise adoption coupled with Kässbohrer experience in serving customers in over 55 countries enables the OEM to

TAN KE R S

produce the most competitive and quality products in the market.

During the 67th IAA Commercial Vehicles Show that took place in Germany in 2018, Kässbohrer introduced the lightest chemical tanker on the market, K.STC 30. This tanker has a tare weight of 6,400kg and due to that feature, Kässbohrer contributes to providing operational efficiency, enables cost reduction and improves TCO. Kässbohrer continues to improve its products and services to create minimum TCO for its customers. With design, engineering and alternative material sourcing Kässbohrer are developing lighter yet robust tankers and silos as well as increasing the options portfolio to meet customers most diverse application and operational needs.

As an engineering company, invested in supplying industry with high quality vehicles, Kässbohrer is leading the way in Europe with its bitumen tanker. Back in 2016, Kässbohrer crowned the success of its bitumen tanker with a Trailer Innovation Award, which is one of the most prestigious awards of the sector, and approved its product on a global scale. In 2016, Kässbohrer was recognised with a Trailer Innovation Award in category ‘Safety’ with safety bitumen tanker K.STS, which was developed with Hoyer Bitumen-Logistik.

The Kässbohrer K.STN was designed to minimise the environmental and health risks associated with the transportation of natural waste materials to renewable energy plants.

Biogas as an alternative and clean energy

source – a diversified energy solution – and as its usage is increasing throughout Europe. The OEM is poised to complement the growth of its safe tanker.

Kässbohrer successfully meets its customers’ operational needs in Germany with its high quality products as well. Tipping silo K.SSK is Imgrund and Wormser’s preferred choice, while Greiwing chooses non-tipping silo K.SSL and tipping silo K.SSK, and Johannes Martens chooses fuel oil tanker K.STB for their operations.

Schenk from the Netherlands added Kässbohrer’s safety bitumen tanker K.STS and Chemical Substance Tanker K.STC to their fleet., too. Meanwhile, in Austria, Riedel opted for a non-tipping silo K.SSL. Additionally, TIP operating in multiple countries, has non-tipping silo K.SSL, tipping silo K.SSK and bitumen tanker K.STS in their fleet and trustfully renting them to its customers.

In order to continue to offer high-quality products, in 2013 Kässbohrer established a welding academy to train competent certified welders by theoretical and practical training to maximise the quality of craftsmanship and to produce vehicles at international norms. As a result of this approach, in the last six years, 472 employees have received 642 certificates that are internationally valid.

At the academy, Kässbohrer not only trains production employees but also provides training for its after sales teams. By the end of the training regime, participants have to pass the test in order to receive their welding certificates that are approved by independent companies. The facilities include real-time welding machines as well as simulation equipment that complements education on Metal Inert Gas (MIG) and Tungsten Inert Gas (TIG) welding techniques via 3D virtual reality. www.kaessbohrer.com bauma.kaessbohrer.com

K.SSL 35 is Kässbohrer’s light and tough silo.

W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 3 5

SPANISH Farcinox stainless steel road tanker.

SPECIALIST TANKER MANUFACTURER, FARCINOX, BELIEVES THAT NO MATTER THE FINAL PURPOSE OF THE ROAD TANKER, IT SHOULD BE EFFICIENT, DURABLE AND FUNCTIONAL WITH THE BEST QUALITY FINISH.

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he history of Farcinox began in 1992, when Juan Francisco Sanz and Miguel Ángel Muñoz decided to unite their more than 20 years of experience in the manufacture of vehicles for the transport of liquids by road, with a product vision based fundamentally on meeting the highest quality standards.

Farcinox began its journey with three employees, in 2,000-square-metre facilities

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located in the geographical centre of Spain and with good roads connecting it to the rest of the country. In 1994 its production capacity was already 20 vehicles per year. That same year, Juan Francisco and Miguel Ángel decided to expand their facilities in order to increase production capacity and implement a new manufacturing line equipped with the latest technology available at that time.

For this reason, Farcinox moved its factory and settled in a 20,000-square-metre industrial area with a 7,000-square-metre manufacturing plant.

The Pedro Muñoz facilities are still the main headquarters of the company where the manufacture of all its vehicles takes place, being at the same time, one of the main points for after sales service. Also, based on a strict policy

TAN KE R S

S Y N E R GY

of continuous improvement, Farcinox has made constant investments to be able to manufacture new types of vehicles to be included in its product portfolio, such as tank containers for intermodal transport. That is why, after its last expansion in 2018, Farcinox has a manufacturing capacity of a total of 150 vehicles per year.

Currently, Farcinox is present in international markets where there is a need for stainless steel tankers. The company’s export activities began in the year 2000 and have covered most European countries and North Africa. Currently, the company is redefining its export strategy in order to implement a network of after sales and commercial service that allows it to consolidate itself as one of the main manufacturers in the continent.

The Spanish OEM is currently working hard on developing more efficient road tanks from a weight and fuel consumption point of view. These new solutions are set to be presented in different stages during 2019 and 2020.

Farcinox specialise in stainless steel road tankers spec’d for transporting foodstuff, chemical liquids, with its annual production split 50-50 between the two types.

The OEM has always been focused on providing the most suitable solutions to its customers because each liquid requires very specific road tank configurations. Following this principle, the team at Farcinox have manufactured road tanks for transporting any liquid type within foodstuff and chemical categories, no matter how tailor-made the road tank or its equipment is.

Additionally, Farcinox also manufactures tank containers or swap bodies for intermodal transport in order to provide the widest portfolio as possible to fulfil any transport need.



“THE OEM HAS ALWAYS BEEN FOCUSED ON PROVIDING THE MOST SUITABLE SOLUTIONS TO ITS CUSTOMERS BECAUSE EACH LIQUID REQUIRES VERY SPECIFIC ROAD TANK CONFIGUR ATIONS.” Its most popular road tank for foodstuff transport is a four-to-six compartment tank with a capacity of 30,000 litres or higher and reinforced isolation which ensures an optimal temperature control.

Farcinox is currently a supplier of the most important transport fleet in Spain, which has more than 100 road tankers. During the last 25 years Farcinox has grown alongside its customers helping them to be more competitive in a global market and the 1,500 road tanks manufactured for the Spanish market throughout this period shows. www.farcinox.com

The Pedro Muñoz facilities function as Farcinox HQ.

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SHARE THE

LOAD

IN EUROPE, A PROJECT SET UP TO SHARE LOADS IN TRUCK TRAILERS FROM DIFFERENT SHIPPERS HAS PROVEN TO BE QUITE SUCCESSFUL. SHIPPERS EXPECTED A 10 PER CENT INCREASE IN TRAILER PRODUCTIVITY, BUT THE RESULTS TURNED OUT TO BE MUCH BETTER. [ Story by Tim de Jong ]

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exTrust is an EU-funded project that brought together 31 partners to promote collaboration within the logistics industry. NexTrust’s objective is to increase efficiency and sustainability in logistics by developing interconnected, trusted collaborative networks along the entire supply chain. Projects that had shippers collaborating lead to a sometimes-stunning reduction in cost and carbon dioxide emissions – even for companies working with fast moving consumer goods (FMCG).

The initiative to start and fund such a project stems from the fact that 21 per cent, just over a fifth, of all trucks on the road in Europe, are empty, while the load factor of trucks transporting cargo averages a mere 43 per cent. Taking into account the growing number of traffic jams in Europe, the pan-European shortage of truck drivers and, on average, low returns, the European road transport sector still enjoys an impressive three-quarter market share of the total transport market.

Consulting partners within the NexTrust project calculated that the number of trucks on European roads is actually growing, but the transported volume isn’t.

The average age of the European truck driver is 50, and the number of fresh-faced youngsters eager to become international truck drivers is small.

Service centre pooling provider.

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Huckepack trailers

Even with a dominating market share of 75 per cent, consultants in NexTrust think that productivity in road transport would increase already by simply using more trailers that are suited to both rail and road transport.

Only 18 per cent of the European trailer park is suitable for both rail and road transport.

Should this percentage increase dramatically, European road transport would be much more efficient, according to the initiators of NexTrust. To achieve this, more equipment and space would be needed on terminals where freight is transferred from road to rail and vice versa.

Industry engagement

More cooperation is key to address the driver shortages, which the NexTrust parties agree is the major cause of insufficient capacity at present. An untold number of trucks is said to be standing idle in Germany for lack of qualified drivers. That makes this the moment to test whether shippers can combine their loads in the trucks that are still moving. This would increase productivity.

The German consultants at GS1 investigated the shippers’ willingness to consolidate loads with other shippers in the same branch or in other branches. According to GS1, shippers underestimated the benefits. These were expected to be in the region of around fifteen percent. However, when shippers really started to cooperate intensively to load trucks as efficiently as possible, benefits shot up to as much as 45 per cent. According to GS1, 90 per cent of those involved appeared willing

PROJECT FOCUS

to continue the trial and to combine loads and freight with colleagues.

Efficient collaborations

Shippers can actively cooperate with external haulage companies. This can be achieved in a way that doesn’t violate any law and doesn’t cause any liability with regard to anti-trust legislation. A number of trends pave the way towards common horizontal cooperation between shippers, according to consultants organised within NexTrust. They see a significant awareness of responsibility with shippers when it comes to the output of CO2 reduction. To optimise the flow of cargo, shippers agree to report to so called ‘control towers’ to centralise and optimise the flow of goods. These ‘control towers’ overlook the flow of goods from different parts of a company or from different companies. To increase efficiency even further, shippers also consult with other companies from other branches to see if they can increase the load factor of the trucks.

Number crunch

In the past three years, 45 trials were organised under NexTrust direction, which involved 80 industrial companies and about 50 haulage companies providing logistics services.

According to GS1, in various projects, CO2 reduction percentages of 20 and up to 70 per cent were achieved. Everybody is used to newly produced goods being delivered to warehouses. A network of smaller trucks distributes the goods to retail points, such as shops. This is done in a high frequency, with small volumes. Here’s one cause of the low load factor of trucks.

NexTrust seeks to combine loads from several producers, and send them to one warehouse. The owner of this warehouse is a so-called trustee. From this warehouse, trucks loaded with goods from several producers destined for the same region drive to several retail points.

Sweets and electronics

An example of two shippers operating in different markets in the same geographical area, is Mondelēz, owner of well-known

Bundled deliveries of cookies.

brands of chocolate bars like Toblerone and Milka, and electronics giant, Panasonic.

They carefully determined which routes they could use to combine their truck loads. It became apparent that on routes between the Czech Republic and Great Britain, a CO2 reduction of 36.1 per cent percent could be achieved, as well as a reduction of driven kilometres of 43.3 per cent.

NexTrust covered another 23 projects from 92 locations where 20,000 trips could be bundled into just 60 routes. In a second effort, shippers succeeded in bundling 100,000 trips into 575 routes. Here, some 36 per cent in kilometres could be reduced which in this specific case adds up to 37 million kilometres less, resulting in a CO2 output reduction of 27.7 per cent. With this specific case, 39 haulage companies were involved. In the past year, another 90,000 trips were bundled in 410 routes with fifteen haulage companies. Many more possibilities are being studied right now.

Legal obstructions

To enable horizontal cooperation between shippers, legal advice is required to prevent legal action against forbidden forms of cooperation. A significant part of possible problems can be prevented by working with a trustee. The key is that the trustee is the only one to know what tariffs are being used between shipper and transport company. So, the shippers do not know each others’ tariffs as this is illegal from a cartel point of view. In a number of cases, the trustee played a key role in finding possible partners among shippers and to see which haulage company suited parties best. Shippers by the way, have to draw up a contract among themselves where cooperation is defined. NexTrust consultants stress, however, that a contract may be required, but success usually depends on the way in which parties involved appreciate and like each other.

More participants

Meanwhile, more well-known parties in the business investigate the possibilities of combining truck loads. In Belgium, four producers of sweets are piloting possibilities, encouraged by their end customer, a supermarket chain. The intention is, after a period of trial and testing, to alter their processes permanently. NexTrust expects more success in other branches and modalities in the future. www. nextrust-project.eu

W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 3 9

VALX

APPOINTS AXLE DISTRIBUTOR IN SUB-SAHARAN AFRICA DUTCH MANUFACTURING SPECIALIST, VALX, HAS APPOINTED TSE BIG MAX AS AN OFFICIAL DISTRIBUTOR OF ITS AXLES FOR SUB-SAHARAN AFRICA.

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utch manufacturing specialist, VALX, has appointed TSE Big Max as an official distributor of its axles for sub-Saharan Africa.

VALX Sales Director, Martin van Willigen, confirms that this is the next step in expanding the manufacturer’s sales and service network in the EMEA region, following the establishment of a subsidiary in Dubai to serve the MENA region.

Omar Essop, TSE Big Max founding member, says the South African trailer axle market is relatively polarised.

TSE Big Max, established in 1985, has its facility in Johannesburg (launched in 1993) as well as a support network, including 15 nationwide distributors along with distributors in several countries north of the Netherlands.

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“Our experience in truck trailer axle manufacture, coupled with our extensive support network, make TSE Big Max the ideal partner for fleet operators and trailer manufacturers hungry for innovative and cost-friendly axle alternatives,” Essop says.

VALX axles are internationally recognised for ground-breaking design concepts that facilitate greater levels of trailer customisation, payload productivity and resource efficiency.

I N D USTRY U P DATE

TSE Big Max Sales Director and VALX Product Specialist, Jo du Toit, says: “VALX is a member company of The Fuwa Group, the largest axle manufacturer in the world and pioneer of the ‘one-piece axle beam with heatformed spindles’, a ‘no weld, no U-bolt’ axle beam design and manufacturing methodology with exemplary anti-deforming, anti-fatigue and anti-bending advantages. VALX axles are designed by top engineers to stringent EU quality specifications with all componentry sourced from leading suppliers such as Wabco (braking systems), Weweler (air suspension systems), Timken (wheel bearings), SKF (seals) and Textar (brake friction material).”

The VALX axle range includes disc and drum bake derivatives, based on modular design principles to allow for maximum trailer design customisation.

“A host of innovative design concepts deliver unprecedented versatility, performance and ease-of-maintenance to trailer owners, including the nonwelded, seamless axle beam with a unique ‘VALX groove’ that allows the builder to tailor-fit the spring centre of the mechanical suspension using a unique clamping system,” du Toit says.

“VALX hubs offer a choice of offsets for various wheel sizes and a two-shock absorber/two-airbag design standard that reduces weight while minimising maintenance time and costs,” he says.

According to du Toit, the VALX E2! Energy Axle is a testament to VALX’s innovative capabilities. “This axle incorporates an integrated brushless highefficiency generator that converts kinetic energy from the trailer wheels into

direct current (DC) that powers auxiliary components such like tail lifts to reduce draw on the truck battery while making an effective contribution to fuel saving.”

The VALX philosophy of ‘light weight, low component count and minimal maintenance’ underpins a quality ethos that brings solid engineering prowess to trailer axle products that meet the needs of transport operators.

“In a business environment that sees operating costs constantly soaring while transport rates remain static, TSE Big Max is committed to giving its VALX axle customers full sales and aftersales support, including comprehensive parts availability and technical back-up and training,” Essop says.

“Most importantly, we are fully geared to offer the truck transport industry in the region a proven, cost-effective, high-quality alternative to existing axle systems currently available in South Africa.” www.valx.eu

FOCUSED ON INNOVATION www.farcinox.com W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 4 1

STRENGTH IN

NUMBE JOST WORLD’S HEADQUARTERS IN NEU-ISENBURG, GERMANY, IS A MAJOR HUB OF ACTIVITY. IT IS ALSO THE EQUIPMENT SPECIALIST’S BIGGEST FACILITY TASKED WITH THE PRODUCTION AND DISTRIBUTION OF FIFTH WHEELS AND OTHER HEAVY DUTY COMPONENTS.

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or over 65 years, JOST’s factory in Neu-Isenburg has been in operation, and much has changed since it first opened its doors in 1952. Vera Terporten, Marketing Communications at JOST, describes how the floors were once cobblestones and everything from the flooring to the machinery has been upgraded over time with state-of-the-art technology.

“There are permanent modernisation processes at JOST, so that we can always provide the highest quality components,” she says. The factory in Neu-Isenburg is also the headquarters of JOST World and is one of the most important production sites for fifth wheels.

The Neu-Isenburg plant is the biggest JOST facility for producing the fifth wheels that it distributes around the world. Here JOST produces a variety of

fifth wheels. In fact, fifth wheels and landing legs account for about 64 per cent of JOST total sales. In terms of global market share, JOST distributes parts and systems to the Americas, Brazil, countries in the Asia-Pacific region as well as throughout Europe.

The production of fifth wheels in such a large scale typically calls for a rigorous quality assurance procedure.

“Quality assurance is a top priority for JOST,” Terporten says – adding that after

A sneak peak inside JOST’s Neu-Isenburg factory.

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FACTORY TOUR

RS

CEE PROCESS

1 3 4 6 7 9 10 STEP 3: PRODUCT ENTERS IMMERSION TANKS WITH WATER TO REMOVE CLEANING RESIDUE.

STEP 1: ALKALINE DEGREASING IS THE FIRST CLEANING STEP.

STEP 4: IMMERSION BATH FOR ACTIVATION PURPOSES.

STEP 6: WASH IN CLEAN WATER.

STEP 7: PASSIVE BATH TO SEAL THE ZINC PHOSPHATE COATING.

STEP 9: CATHODIC ELECTROPHORESIS (CEE) BATH.

STEP 10: FINAL IMMERSION BATH WHERE LOOSE PARTICLES OF ENAMEL ARE WASHED AWAY VIA ULTRAFILTRATION.

2 5 8 11

STEP 2: HIGH PRESSURE SHOWER UNIT FOR THE ALKALINE DEGREASING THAT REMOVES ANY DIRT PARTICLES

BY USING MOVING NOZZLES.

STEP 5: A ZINC PHOSPHATE COATING APPROX. 2MM THICK IS APPLIED TO IMPROVE CORROSION PROTECTION.

STEP 8: VE IMMERSION (DESALINATION).

STEP 11:PRODUCTS PASS THROUGH AN ENAMEL DRYER AND ARE MOUNTED AFTER COOLING.

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At the final stage of the production process, JOST fifth wheels join an automation circuit where they are sorted for scratch-free mounting and storage.

the fifth wheels plates are manufactured, they are prepared for the transition to the KTL anti-corrosion baths. “JOST was one of the first manufacturers in Europe to introduce the KTL anti-corrosion method, or as we refer to it as Cathodic Electrophoretic Enamelling (CEE). Nowadays it’s certainly a must in the commercial vehicle industry.”

The CEE complex at the Neu-Isenburg plant Vera Terporten JOST Marketing Communications was built in 1998, in line with JOST’s total quality management regimen.

“This equipment represents state-of-the-art technology, ensuring that our would also help the equipment specialist lead products comply with our ever-increasing quality requirements,” Terporten the way in delivering products that are more says. “We use this complex to provide fifth wheel couplings, mounting plates, durable and longer-lasting. king pins, skids and various die-cast parts with the best corrosion protection JOST also considered the environmental that is available in the market.” impact of the CEE complex by utilising the To guarantee an exceptional level of quality, JOST modified all of its materials latest in waste disposal equipment. and manufacturing logistics when it installed the CCE complex. The CEE “The enamel particles washed off in the system was tailored for operational efficiency and environmental sustainability last bath are separated from the water using while being put into operation in record time. Old production workshops were ultrafiltration and are then returned to the completely demolished as a result to make room for new buildings to house this enamel bath.” Terporten says. “When drying technology. Aside from the massive, highly efficient CEE system, this included the enamel, reaction products are made where these are extensively neutralised together with an up-to-date, computer-controlled high storage facility.

For JOST, these innovations meant more than just a reorganisation. This the solvent emissions from the coating plant

“THIS EQUIPMENT REPRESENTS STATEOF-THE-ART TECHNOLOGY, ENSURING THAT OUR PRODUCTS COMPLY WITH OUR EVERINCREASING QUALIT Y REQUIREMENTS.”

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FACTORY TOUR

being burnt off afterwards.”

There are 11 steps involved in the CEE process. To ensure a sealed, flawless CEE coating, there is a pre-treatment phase in various immersion baths, each with their own particular functions, according to Terporten (see infographic).

The CEE process is computer controlled and takes precisely six minutes. The drying out phase last about 55 minutes.

As a leading global producer and supplier of safety-critical systems for trucks and trailers, JOST has had a strong 2018 financial year in terms of organic sales growth in all regions.

According to preliminary figures, JOST increased organic Group sales by 9.9 per cent in the first half of 2018. With ongoing product developments, and positive signs of further expansion in the future, it is even more critical than ever that the Neu-Isenburg plant continues to innovate and remain as productive as possible. www.jost-world.com

A BRIEF HISTORY LESSON JOST’s company history started with the opening of its Neu-Isenburg plant in Germany in 1962. It was founded as a factory for producing ball bearings and turntables. In 1956, JOST started the production of fifth wheels. Four years later, the equipment specialist expanded its operations to South Africa. The Europe expansion kicked off during the 1970s and the 1980s saw JOST enter the US and Australian markets.

The expansions continued throughout the 1990s as it grew even further into Asia and South America; JOST’s product range was also extended with the introduction of container equipment.

The new millennium saw significant global growth with expansions to eastern Europe, Russia and India. The 2000s also marked the acquisitions of Rockinger and Tridec.

The incorporation of JOST Japan occurred in 2011 and JOST acquired Edbro a year later.

From 2013 onwards, JOST embarked on a number of innovative endeavours including the globalisation of the hydraulics and axles product groups as well as the acquisition of Mercedes-Benz’s Trailer Axle Systems in 2014.

In 2017, JOST Werke announced its Initial Public Offering (IPO) and the business has continued to develop its components the world’s road transport industry.

JOST announced in August of 2018 that it had opened three new sites in New Zealand, Turkey and Thailand. Lars Brorsen, Chairman of the Executive Board of JOST Werke was delighted with the network expansion: “By opening three new sites, JOST is resolutely pursuing its globalisation strategy and strengthening its presence in new countries which promises success for our company”.

JOST maintains a total quality management regimen with its Cathodic Electrophoretic Enamelling complex that was built in the Neu-Isenburg plant in 1998.

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ENCOURAGING INTERMODAL

EFFICIENCIES SCHMITZ CARGOBULL HAS EXPANDED ITS SKEL RANGE AS A RESULT OF SEEING A RESURGENCE IN THE EUROPEAN MARKET FOR VERSATILE, RELIABLE CONTAINERISED FREIGHT OPTIONS.

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INTERMODAL INSIGHT

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ontainer transport is regarded as the backbone of global supply chains because all packaged goods arrive by container into European sea ports, according to Schmitz Cargobull. The German OEN emphasises that flexibility and speed, above all, is what matters with commercial transport.

“Container chassis are a key component of the solution in combined road and rail transport,” Schmitz Cargobull Chair, Andreas Schmitz, explains.

“This is precisely why we are once again bringing back the S.CF container chassis semi-trailer into our range.”

From 2019 onwards, orders will be produced using three S.CF range standard container chassis, developed by Schmitz Cargobull and supplied

by Turkish partner, Mersin-based, Koluman Otomotiv Endüstri.

Current data reportedly underlines the fact that containers will also continue to play a key role in the global transport of goods in the future: 38 million containers are currently in circulation worldwide – 98 percent of all packaged goods arrive at or leave Germany’s largest sea port, Hamburg, by container. And the current RWI/ISL Container Handling Index (Leibniz Institute for Economic Research and the Institute for Shipping Economics and Logistics) peaked in October 2018 at 134.6 points.

“In this current climate and in response to our customers’ wishes, we decided to re-introduce the container semi-trailer chassis into our product range,” Andreas Schmitz says.

The demand for container chassis seriously declined during the economic and financial crisis of 2008/2009. Schmitz Cargobull ceased production due to substantial overcapacity in the market.

“Demand has now recovered,” according to Sales Director, Boris Billich.

“We are seeing an annual market volume of between 9,000 and 12,000 vehicles per year.

“Schmitz Cargobull will offer three vehicles from the S.CF range: S.CF Gooseneck 45‘ Euro Light, S.CF Gooseneck 45‘ Euro and S.CF Gooseneck 40‘ LX. Our key markets are Germany, the Netherlands, Belgium and Scandinavia.

However, the vehicles will be available everywhere. Sales, configuration and customer service will be fully handled by Schmitz Cargobull,” he says.

Andreas Schmitz reports that the OEM will handle the research and development of the new container chassis. “We have found a competent production partner in Koluman Otomotiv Endüstri and concluded a

cooperation agreement with them,” he says – adding that the production volume is set to be 1,000 units per year by 2021.

Koluman Otomotiv Endüstri is also a partner of Daimler and has many years of experience in the production of commercial vehicles.

“We regard our trust-based cooperation with Schmitz Cargobull very positively,” Kaan Saltik, Chairman of Koluman Otomotiv Endüstri, says. “Our common values and quality standards are an excellent prerequisite for an efficient partnership.”

Andreas Schmitz: “The production process will be fully configured to meet our standards to guarantee the quality customers have come to expect from us.

Our customers will receive genuine Schmitz Cargobull vehicles.” www.cargobull.com

FAST FACT German OEM, Schmitz Cargobull, is expanding its semi-trailer container chassis range with three gooseneck variants. The S.CF Gooseneck 45’ Euro, S.CF Gooseneck 45’ Euro Light and S.CF Gooseneck 40’ LX are reportedly characterised by easy operation, low maintenance and high availability.

Schmitz Cargobull gooseneck skel.

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MOVING WITH THE TIMES RECENT STUDIES SUGGEST THAT LAST MILE SAME DAY DELIVERY DEMAND WILL BRING RADICAL CHANGE TO HOW THIRD-PARTY LOGISTICS PROVIDERS OPERATE.

A

new retail study in the US has confirmed the growing appetite for same day delivery among consumers is transforming the landscape for third party delivery.

The study by technology consultant, Capgemini, surveyed over 2,870 consumers and 500 supply chain executives, entrepreneurs and industry leaders and revealed that grocery delivery was a major growth area in which 55 per cent of customers said retail stores that could provide two-hour delivery times after purchase would increase their brand loyalty.

Only 19 per cent of stores were able to currently meet the demand. More than half the stores (59 per cent) offered a delivery time frame of more than three days. Only one per cent of online customers are willing, according to the study, to absorb the total cost of last mile deliveries. At current retail firms charge online customers 80 per cent of the overall delivery cost.

Another survey released by the National Retail Federation found that 75 per cent of consumers surveyed expect delivery to be free. A sharp rise on 68 per cent of consumers surveyed the previous year. This expectation included orders as low and under $50 (€44).

With the freight task expected to grow worldwide one key takeaway from the study for transport companies was that 74 per cent of satisfied consumers planned to increase purchase levels by as much as 12 per cent with a preferred retailer.

Investments were also on the rise in delivery innovations in grocery as companies looked to meet consumer demand. In the UK, Ocado, an online retailer, was working with companies in the US, France, Canada and Sweden to build automated customer fulfilment centres for the processing and packing of online orders.

The Capgemini study cited the recent launch by Walmart of its pilot run of its crowd sourced last mile grocery delivery platform and Target’s $550 million buyout of Shipt, an online, same-day delivery start-up – one of the largest acquisitions in the retail company’s history.

Since October 2018, venture capital firms have invested $US3.5 billion (€3.1 billion) in food and grocery delivery services. Ford, Walmart and delivery service

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Postmates are working in collaboration to tailor a service for delivering groceries and other goods to Walmart customers using autonomous vehicles by 2021.

“We’re always looking for the best ways to serve customers, so we’re exploring a number of different options for getting groceries from our stores to the customer’s front door – some in-house, some thirdparty,” said Tom Ward, Walmart Digital Operations Vice President in a statement last September.

As the costliest link in the supply chain last mile delivery under its current model was not sustainable for retail businesses as organisations were absorbing some of the costs enough to erode profits.

The Capgemini study found that 64 per cent of consumers are indifferent to whether delivery is made by a retail store’s employees, private individuals and thirdparty couriers. For an incentive, 55 per cent are willing to deliver products to neighbours in their vicinity. Up to 79 per cent of these are willing to deliver groceries at a price that is less than the cost incurred by retailers to deliver it themselves.

Capgemini estimates that should 44 per cent of customers deliver for other customers profit margins, as retailer delivery costs are lowered, will rise by 29 per cent. As many as 89 per cent of retailers

SPECIAL REPORT

were considering joining forces with other retailers to create a shared delivery platform for last mile delivery through crowdsourcing.

Marshall Hughes, Founder and CEO of crowdsourcing start-up Passel in Australia, believes consumers are willing to make last mile delivery a part of their daily lives.

“Shoppers should not be delivery agents,” he says.

“Hughes believes that consumers are willing to make this part of their daily lives, rather than being seen as delivery agents.

“Shoppers should not be delivery agents. Rather than getting shoppers to do a delivery job, we offer to pay them to go home anyway and drop a package in their street. We think that’s the key difference.”

Meanwhile, e-commerce trends indicate that the average length of truck trips are shrinking. Emerging shopping trends are changing the face of the trucking industry, with the growth of last mile delivery cutting the average trucker’s trip length by 37 per cent since 2000, according to an industry study.

Just as the average trucking haul distance has shrunk, the number of truck trips and urban vehicle miles travelled have increased for much of the same 19-year period, thanks to an increase in more regionalised retail supply chains and the proliferation of urban last-mile deliveries, the American Transportation Research Institute (ATRI) said.

The ATRI report — E-Commerce Impacts on the Trucking Industry —also revealed that retailers are becoming more flexible in how they transact with consumers by decentralizing their distribution and fulfillment networks to bring inventory closer to consumers. That trend has resulted in a total of 2,130 fewer department stores and 385,000 fewer jobs at those stores in 2017 compared to 2015, ATRI said.

Even as store jobs have disappeared, courier jobs have expanded to take their place. There were 1,937 more courier services operating and just over 85,000

new employees hired in the sector between 2015 and 2017, the ATRI study found.

The loss of department stores has also been offset by the growth of “last-mile fulfillment centers,” which represented 73 percent of the industrial real estate market in 2017, a 15 per cent increase from the previous year.

“ATRI’s research provides a critical roadmap for trucking industry stakeholders to address the challenges and benefits of e-commerce and omnichannel retailing,” Tom Benusa, CIO of Eagan, Minn.-based trucking company Transport America, said in a release. “These trends are game-changing, and our industry must adapt quickly to ensure that trucking continues to be the preeminent freight mode.”

While last mile distribution facilities consolidate for greater operational efficiencies, couriers and logistics providers are turning to zero emission fleet alternatives.

The United States Postal Service (USPS) has begun using a fleet of all-electric delivery trucks in a move to cut emissions, save fuel, and reduce maintenance costs in its Fresno, California market.

USPS accepted the first of a planned seven

Postal service company, Australia Post, is set to make it as Australia’s largest electric vehicle fleet operator, following an order for an additional 1,000 three-wheeled electric delivery vehicles.

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SPECIAL REPORT

 “WE ARE PROUD TO SOON BE OPER ATING AUSTR ALIA’S LARGEST FLEE T OF ELECTRIC VEHICLES, AND HOPE THIS WILL SE T THE STANDARD ACROSS AUSTR ALIA.” Bob Black Australia Post Group Chief Operating Officer

Ford E-450 based all-electric step vans, according to the vendor, Motiv Power Systems, a provider of all-electric fleet chassis for trucks and buses.

As compared to their combustion engine-powered counterparts, Motiv’s all-electric EPIC chassis-equipped mail delivery vans are expected to save fuel and maintenance costs, resulting in an overall reduction of total cost of ownership, Motiv said.

The pilot program of seven vans is slated for deployment in California’s Central Valley, according to Motiv. The first vehicle now serves routes in Fresno, with the balance of the vehicles to be deployed in Fresno and Stockton as part of a year-long program.

Most of the immediate project benefits will accrue in the San Joaquin Valley, an economically disadvantaged area with some of the highest pollution burdens in the country, as evidenced by CalEnviroScreen scores within the worst five percent in the state, according to Motiv.

The USPS’ acquisition of the Motiv chassis-powered vans was developed as a partnership by CALSTART and the San Joaquin Clean Transportation Center and funded through a California Air Resources Board (CARB) award to the San Joaquin Air Quality Control. The funds are meant to provide an incentive to Californian fleets to adopt the cleanest emerging technologies and continue to advance California’s Air Quality and Climate goals.

Postal service company Australia Post, is set to make it as Australia’s largest electric vehicle fleet operator, following an order for an additional 1,000 three-wheeled electric delivery vehicles (eDVs).

Australia Post Group Chief Operating Officer, Bob Black, said the 1,000 eDVs boost its existing fleet of electric postie vehicles – including electric pushbikes – and creates a range of benefits for posties, customers and the environment.

“We are proud to soon be operating Australia’s largest fleet of electric vehicles, and hope this will set the standard across Australia,” said Black.

“With parcel volumes growing – on average, close to 10 per cent each year for the last three years – and letter volumes declining, we’re always looking for ways to ensure our posties continue to play an important and sustainable role in the community.

“These vehicles offer additional carrying capacity, so our posties can deliver more parcels than ever before directly to the customer’s door – and can perform additional functions, such as collecting mail from street posting boxes.”

Along with the additional 1,000 eDVs Australia Post will also roll out an additional 4,000 electric pushbikes, bringing its total to 5,980 over the next three years.

Another factor that complicates last mile delivery is increasing urbanisation.

With over 600 million more people forecast to live in urban environments by 2030 and new technologies creating opportunities for both service enhancement and

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disruption, online retailers and their logistics partners are being challenged to embrace bold new approaches in order to survive and compete. In the white paper, Shortening the Last Mile: Winning Logistics Strategies in the Race to the Urban Consumer, DHL and Euromonitor have identified the four main trends that are shaping urban last mile transportation – localised delivery, flexidelivery networks, seasonal logistics and evolving technologies – and ways in which companies can adapt their supply chains to the changing market environment and achieve competitive advantage.

“The last mile is increasingly becoming the key battleground in the e-commerce supply chain, and companies will have to develop targeted strategies in this area to compete effectively,” according to DHL Chief Commercial Officer, Katja Busch.

“It’s not just about transportation, but about companies’ overall approach to managing inventory – getting the right items to the right place at the right time.

DHL is developing focused solutions to help e-commerce companies reach their end customers quickly and efficiently, from using machine learning to better route shipments within cities to adding more automation to our delivery networks.”

The white paper found that the major urban trends all create various challenges in terms of cost, service impact and organisational strain. For example, the growth of seasonal logistics as a result of increasingly popular holidays and promotional days such as Asia’s Singles’ Day or national Cyber Days, places significant pressure on logistics companies to build up additional capacity and hire resources to cope with short-term volume surges, which can in turn be difficult to predict.

Urban customers’ demands for speed and convenience are forcing retailers to overhaul their warehousing networks, replacing centralised networks with local fulfilment and distribution infrastructure, which can require more accurate balancing of inventory. www.globaltrailer.com

Efficiency runs in the family.

THE IDEAL SOLUTION FOR EVERY TRAILER WHEELEND: THE ST7 AND THE ST6.

With their potential to reduce weight and minimize downtimes, wheelends can play a valuable part in making your fleet even more efficient. With the trailer-specific two-piston ST7 brake, Knorr-Bremse set new standards in the 22.5-inch wheel segment. The identically designed ST6 version for compact wheelends is extending the success story to 19.5-inch applications. Tipping the scales at less than 32 kilograms, the ST6 is a real lightweight, enabling you to save fuel and/or increase the payload. | www. knorr-bremseCVS.com |

W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 5 1

MOVI N G FORWAR D W

TECHNICA

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EVENT PREVIEW

ITH A

AL SOCIETY THE AMERICAN TRUCKING ASSOCIATIONS’ TECHNOLOGY AND MAINTENANCE CONFERENCE IS DUE TO SHOWCASE THE LATEST IN TRAILER AND TRUCK EQUIPMENT.

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he American Trucking Associations’ Technology & Maintenance Council announced it had opened registration for its 2019 Annual Meeting & Transportation Technology Exhibition, to be held March 18-21 at the Georgia World Congress Center in Atlanta.

Beyond the Frontier of Maintenance is the theme for this year’s Annual Meeting, which includes a strong slate of educational sessions, and a complete technology tradeshow featuring experts from the trucking industry’s top manufacturers and suppliers.

“The trucking industry is literally the backbone of the US economy – delivering 70 per cent of the nation’s freight,” said ATA President and CEO, Chris Spear.

“That work is only possible thanks to the efforts of our industry’s technicians and maintenance personnel who keep our nation’s wheels turning. The TMC Annual Meeting is a critical part of that effort, setting

The Wabash Cold Chain Series refrigerated truck body’s thermal efficiency is improved by up to 25 per cent over conventional designs, while weight is reduced by as much as 15 per cent.

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 “THE TRUCKING INDUSTRY IS LITER ALLY THE BACKBONE OF THE US ECONOMY. THE TMC ANNUAL MEE TING IS A CRITICAL PART OF THAT EFFORT, SE T TING STANDARDS AND DEMONSTR ATING THE LATEST TECHNOLOGY AND TRENDS FOR OUR INDUSTRY.” Chris Spear ATA President and CEO

standards and demonstrating the latest technology and trends for our industry,” he said.

For TMC Executive Director, Robert Braswell, TMC will focus on fleet challenges that lie beyond the frontier of maintenance. “The Council’s 2019 Annual Meeting carries on its tradition of providing thought leadership with a special focus on developing, implementing and maintaining innovative technologies pertaining to automated and electric vehicles, smart trailers and advanced fuel saving strategies.

During the week, more than 100 industry task forces will meet to resolve issues critical to trucking fleets, as well as a broad offering of technically oriented educational sessions, addressing fleet experience with the latest generation of active safety systems, proven strategies for fleet tire testing,

spec’ing cabs and sleepers for driver safety and comfort, and preparing for next generation multi-voltage electrical systems.

With more than 5,000 people in attendance every year, TMC’s Annual Meeting & Transportation Technology Exhibition remains the premier event for fleet management, offering a comprehensive array of information vital to the growth and success of the trucking industry.

Wabash National VP of Engineering – Commercial Trailer Products, Robert Lane, elaborates on what TMC attendees should expect to see from the prominent US-based manufacturer.

“At TMC, we will be presenting a 53’ refrigerated van trailer with our proprietary Moulded Structural Composite (MSC) technology,” he says. “Wabash is also reintroducing the Transcraft Eagle flatbed trailer and a Benson flatbed trailer with design changes to address user safety and convenience. With the flatbeds, we are focused more on the user interface

Wabash National’s Cold Chain truck bodies with MSC technology have been hitting the road with pilot customers since the company introduced the new product in October 2015.

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EVENT PREVIEW

The Technology & Maintenance Council (TMC) Annual Meeting & Transportation Technology Exhibition is home to trucking’s leading fleet professionals, vehicle manufacturers, and component suppliers. TMC is North America’s premier technical conference for trucking.

FAST FACT American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of 50 affiliated state trucking associations and industryrelated conferences and councils, ATA is the voice of the industry America depends on most to move our nation’s freight.

like ergonomics for example.”

Lane explains that one of the challenges that Wabash is trying to solve is temperature control. “With the MSC van trailer we’re improving thermal efficiency while optimising weight and durability, leading to an increased asset life.” He adds that Wabash’s MSC technology is new to the market and unlike any composite technology available for trailers.

“MSC improves thermal efficiency by up to 28 per cent and reduces weight by up to 20 per cent. Its structural strength eliminates the need for metal or wood, and it demonstrates twice the puncture resistance over traditional materials. The gel coat protects against water intrusion and slows foam degradation.”

Since the last TMC event, Lane confirms that Wabash continues to adapt its manufacturing expertise in line with new developments. “We’re continuing on the development path of MSC based on what we’re learning from our launch partners,” he says. “We’re integrating real-world feedback to make design improvements.”

In terms of industry trends currently affecting Wabash, Lane suggests that e-commerce is the biggest one at the moment. “We’re seeing a boom in the final mile space, which has a ripple effect on our trailer business.

Wabash National has equipment solutions for the entire transportation journey: first mile, middle mile and last mile.” He adds that the smart trailer is really starting to make an impact along with telematics. “We will continue to see gain prominence as carriers and shippers begin to understand how to use data to increase efficiency. Everyone is learning how to capture and leverage data for asset utilisation.” www.tmcannual.trucking.org W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 5 5

WORLD EVENTS

21 – 23 MARCH

EXPOCAM

MCH Messecenter Herning, Herning, Denmark Since Transport Scandinavia was launched in 1988, more than 450,000 professionals from the transport industry have visited the fair. The fair boasts new vehicles, new equipment, new services and new ideas in a search for inspiration in the field of transport.

Place Bonaventure, Montreal, Canada ExpoCam is reportedly the meeting place for Canada’s trucking industry new products, ideas and solutions as well as trucks, equipment and technology.

TRANSPORT SCANDINAVIA 2019

www.transportscandinavia.com

MID-AMERICA

TRUCKING SHOW 2019

28 - 30 MARCH Kentucky Expo Centre, Louisville, USA The Mid-America Trucking Show is an annual forum for North America’s heavy-duty trucking industry, providing face-to-face interaction between industry representatives and trucking professionals from around the world. www.truckingshow.com

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11-13 APRIL www.expocam.ca

BAUMA 2019 8-14 APRIL

Munich Trade Fair Centre, Munich, Germany Now in its 32nd edition, Bauma is one of the world’s leading international trade fair for construction machinery, building material machines, mining machines, construction vehicles and construction equipment. www.bauma.de

KEEP A LOOK OUT Multimodal 2019 18-20 June NEC Birmingham, Birmingham, UK www.multimodal.org.uk

TRANSRUSSIA 15-17 APRIL

Crocus Expo, Moscow, Russia The international exhibition TransRussia is the largest exhibition of transport and logistics services, storage equipment and technologies in Russia. The TransRussia exhibition has been held annually since 1995. www.transrussia.ru

Comtrans 2019 2-7 September Crocus Expo, Moscow, Russia www.comtransexpo.ru/en-GB North American Commercial Vehicle Show 2019 28-31 October Georgia World Congress Centre, Georgia, US www.nacvshow.com Solutrans 2019 19-23 November Euroexpo, Lyon, France www.solutrans.eu

COMMERCIAL VEHICLE SHOW

MEGATRANS2020 1-3 April Melbourne Convention & Exhibition Centre Melbourne, Australia www.megatrans.com.au

30 APRIL - 2 MAY

National Exhibition Centre, Birmingham, UK The CV Show, according to event organisers, is the best attended, largest and most comprehensive road transport and commercial vehicle event held in Britain, providing truck and van operators with far greater choice than can be found anywhere else in the UK. The Show reportedly attracts close to 21,000 business visitors and its central location at the NEC Birmingham, ensures a truly nationwide attendance. For operators it’s the annual meeting place and for sector suppliers the ultimate showcase for products and services. www.cvshow.com W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 57

M E GATR E N D S

E N T E R T H E M AT R I X VIRTUAL ENVIRONMENTS CAN BE MORE THAN A SPACE FOR LEISURE. MANUFACTURERS AND LOGISTICS SERVICE PROVIDERS HAVE DABBLED WITH VIRTUAL AND AUGMENTED REALITY TO FIND BETTER WAYS TO EDUCATE AND IMPROVE WORKPLACE SAFETY.

T

echnology venture, Bondi Labs, has expertise in the biosecurity sphere, and adapted its simulation training to focus on logistics and warehouse safety via a virtual warehouse, sea port and supply base. The aim of this innovation is to help warehouse workers learn how to spot hazards, according to Founder and Managing Director, Jonathan Marshall.

“We had originally created virtual environments for biosecurity pest control, but what about searching for safety hazards? For example, on a forklift you might have had an invasive bug hidden under the gas tank, but now it is a crack on the gas tank that could be a safety issue,” he says – adding that Bondi Labs partnered with global logistics company, DB Schenker, to co-design a cloud based simulation training product called Kuube.

Over the past five years Bondi Labs has developed a sophisticated online platform design built specifically for simulation training as well as creating an extensive library of hundreds of virtual assets. These virtual assets can be re-used and re-purposed to develop simulation training scenarios which address key work, health and safety competency needs such as forklift and materials handling equipment pre-start safety checks – a known safety issue in the logistics industry.

With scalability a crucial requirement for both DB Schenker and Chevron, Kuube was designed to work on standard office desktops through to iPads and even Virtual Reality devices.

Marshall uses pilots as an example, explaining that they need to spend a

A render of Bondi Labs’ simulated training environment.

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set number of hours per month in a flight simulator to ensure their task performance standards remain high. He compares this to a warehouse worker or forklift driver who currently might only have an online induction and refresher course once a year and perhaps the occasional tool box discussion, however Marshall believes that is not enough if you genuinely want to improve workplace safety standards.

“By creating an engaging ‘learning by doing’ user experience you can genuinely develop and assess individual employee WHS competencies. Safety training should never be just a tick and flick exercise which unfortunately so often is the case in the logistics industry,” he says.

Marshall and his team are excited about what this new way of training could mean for safety in the logistics industry, saying there are upwards of half a million people working in the sector who are faced with potentially serious safety risks every day as well as the public.

“Our goal is to work with those businesses who take workplace safety seriously and want to do the right thing by their employees but also ensure they are compliant from a regulatory standpoint,” he says.

Other innovators on the scene include Schmitz Cargobull with its training tools made specifically for engineers and dealer network. The OEM utilises a reefer diagnostic tutorial where the participant enters an immersive, virtual environment to perform basic tasks on a refrigeration unit. This technology extends to real-time video on an app where the trainer can use visual functions to troubleshoot with a technician. www.globaltrailer.com.au

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NEWS

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INNOVATION

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Kässbohrer’s Road Tankers CES 2019 Technology Highlights Intermodal Insights AR & VR Megatrends

VALX appoints Sub-Saharan Distributor News OEM and Trailing Equipment TMC 2019 Event Preview Last Mile and Logistics Developments

Power Wielton Invests in Multibrand Market Report: India JOST Factory Tour Project Focus on EU Shipping

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NEWS Mindset t-up

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*All features and special reports are subject to change.

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COVER STORY

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JEFF BEZOS, AMAZON.COM

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OUT OF

PRECEDENT FOR

ON THE QUEST TO BECOMING THE FIRST TRULY GLOBAL ORGANISATION IN THE HISTORY OF TRAILER MANUFACTURING, CIMC VEHICLES HAS LEARNED THAT STAYING TRUE TO A GRAND VISION DOESN’T PRECLUDE STRATEGIC FLEXIBILITY.

PERSE VERANCE D [Story & Interview by Sebastian Grote]

avid Li, General Manager of CIMC Vehicles, the trailer building arm of China’s International Marine Container (CIMC) Group, isn’t quite what you’d expect of a man who has built a €1.93 billion industrial empire from the bottom up.

Distinctly humble in his bearing and refreshingly unpolished in his language, the industry veteran is enveloped in an aura of authenticity and adventure that is much more Silicon Valley than Shenzhen Special Economic Zone (the official jargon for a giant business incubation area the Chinese government has set up across the bay from Hong Kong to help local businesses connect more easily with the western world).

As such, there is nothing imperious about Li laying out his plan to build the world’s first international trailer building company – only genuine excitement in an idea so captivatingly grand that it would arguably suit an intrepid start-up more than an asset-rich manufacturing firm operating FAST FACT in a time of extreme economic volatility.

CIMC Vehicles’ US subsidiary, Understanding the phenomenon that is Vanguard, is currently finalising CIMC Vehicles is therefore not so much a construction of a second factory in question of mapping out the business itself Trenton, Georgia. The €32 million as it is one of getting to know the man manufacturing plant will eventually employ 400 people and produce behind it – a scenario akin to US start-up 10,000 semi-trailers annually.

Tesla, which is largely dependent on the

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MIND

A KEY TALKING POINT OF THE 2014 IAA COMMERCIAL VEHICLE SHOW, THE BRUISED RUSSIAN ECONOMY HAS FAILED TO TURN ITSELF AROUND IN TIME FOR THE NEXT EDITION OF THE ICONIC EVENT. WILL IT STILL CONTINUE TO OWN THE CONVERSATION, THOUGH? [ Story by Sebastian Grote ]

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uddling through the longest recession since the turn of the century, Russia has racked up a sizeable budget deficit and is on track for yet another year of negative growth. Meanwhile, the prospect of fiscal relief is growing distant, with oil in a bear market after closing below $40 a barrel in August – theoretically making for a highly dramatic narrative in the lead-up to the largest transport industry gathering on the planet.

But if you ask Denis Krivtsov, head of Russian OEM, Tonar, the country’s fragile economic state doesn’t necessarily mean it will become as prominent a topic as it was in 2014, when the Ukraine conflict and the annexation of Crimea were still fresh in mind and the European Union (EU) put an abrupt hold on west-east trade.

According to Krivtsov, much of the western trailer community has since found

new growth potential in the heart of Europe and the still-sprawling east of the continent, leaving Russian businesses alone in dealing with what could be the most severe market slowdown in a decade or two. As a result, he says it is now up to the domestic transport equipment community to consolidate ahead of the parliamentary election in mid-September, which is hoped to give the battered economy a much-needed boost.

“The Russian economy hasn’t really improved much since the last instalment of IAA. In fact, many local businesses have since folded as they simply refused to learn from the last crisis,” he explains – pointing to the EU’s recent decision to prolong economic sanctions against Russia until 31 January 2017.

In August 2016, the Financial Times publically wondered whether Amazon CEO Jeff Bezos was intending to drive everyone else in US retail crazy. The reason: Bezos is on a mission to re-define the classic concept of retail logistics. Instead of outsourcing the whole process, he set up a complex in-house transport network that has been aggressively expanding its reach, capabilities and capacity in the logistics and distribution arena over the past year or so. As part of the process, the Seattlebased company is now operating thousands of trailers emblazoned with Amazon’s logos acrosss North America. In Europe, Amazon is expanding rapidly as well, potentially making it a key talking point of the next IAA.

PEOPLE TO WATCH

THE

HUMAN

ELEMENT ALBEIT A SUBSTANTIAL BUSINESS EXPENSE, VISITING A TRADE SHOW LIKE IAA IS A UNIQUE OPPORTUNITY TO MEET SOME OF THE MOST INFLUENTIAL PEOPLE IN COMMERCIAL ROAD TRANSPORT IN THE FLESH – A KEY ADVANTAGE IN THE DIGITAL AGE. [ Story by Sebastian Grote ]

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rom wireless connectivity to electric mobility, the digital world is slowly infiltrating every aspect of commercial road transport. Yet although high technology is expected to dominate the conversation at this year’s IAA Commercial Vehicle Show in Germany (see page 52), it will be people that ultimately set the narrative. In fact, there is a distinct irony to the rise of technology in the manufacturing, according to best-selling US author, Daniel Pink, who has found that forging personal relationships is becoming ever more important as skill-sets evolve and demand more cognitive proficiency.

So-called ‘thought jobs’, as Pink puts it, require a higher level of creativity, problem-solving prowess and out-of-the-box thinking, meaning that in order for a business to be successful, leveraging the unique human element behind each employee is key.

FAST FACT According to Russian Economy Development Minister, Aleksey Ulyukaev, the country’s economy is set to grow in the near future, as “the situation in the real sector of economy is improving and the dynamics of industrial production are positive”.

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As such, he says fostering personal relationships in real life, for example in the context of a trade show, will ultimately help businesses become more profitable.

In line with Pink’s assumption, Global Trailer has selected ten prominent individuals that have the potential to put their mark on the 2016 edition of the largest global transport industry gathering – either by attending it or as the subject of intense discussion. www.globaltrailermag.com

ALEXANDER DOBRINDT, GERMAN FEDERAL GOVERNMENT Germany’s Federal Minister for Transport and Digital Infrastructure, Alexander Dobrindt, is slated to officially open the 66th IAA Commercial Vehicle Show in Hanover.

Dobrindt recently made headlines in Germany when he proposed self-driving vehicles in Germany should be fitted with a black box that is able to record specific details of an accident, much like in the aviation industry. According to newswire, Reuters, his proposal would require drivers to stay seated in front of the steering wheel, even tough they may not have to pay attention to traffic or actually steer. Despite that cautionary measure, Dobrindt approved six German cities – Hamburg, Munich, Ingolstadt, Düsseldorf, Dresden and Braunschweig – to become testing grounds for self-driving vehicles as part of a US$89 million (€80 million) project.

İIFFET TÜRKEN, KÄSSBOHRER As the Executive Board Member responsible for Business Development at German OEM Kässbohrer – which is part of the Tirsan Group, the largest trailer manufacturing company in Turkey – Türken is considered one of the most influential personalities in European trailer building, and one of the most powerful women in the global transport equipment industry. The now 44-year-old joined the Tirsan Group in 1996 after graduating from Bogaziçi University in Istanbul and has since been stirring up Europe’s trailer building landscape – helping establish the Kässbohrer brand amongst the top ten in Europe.

PETER SIJS, TIP TRAILER SERVICES Overseeing the procurement processes for a 71,000-unit strong fleet that covers some five billion kilometres every year, Sijs, Services and Sourcing Operations Leader Europe at TIP Trailer Services, is considered one of the most influential people in Europe’s transport equipment industry. Having to replace up to 15,000 trailers annually, TIP Trailer Services spends an average of €30 million per year on parts alone – prompting Sijs to work closely with component suppliers and OEMs to leverage the latest in technology and develop new strategies to create competitive advantages. Most recently, he collaborated with German braking specialist Knorr-Bremse on the development of the company’s awardwinning iTAP system with FleetRemote functionality.

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