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INNOVATION
BUSINESS
NEWS
SAF Intra PC Premium Coated IRU On Green Deal Special Report: PBS Multimodal Transport Solutions
Wielton Talks Multibrand Power Industry Voice: Gigant Group CIE Manufacturing Executive Interview Market Report: China
Event Preview: MEGATRANS2020 JOST Closes Acquisition Cartwright Appoints Importer E-Commerce Is Changing
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
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COVER STORY
18
MULTIBRAND POWER
Wielton Group CEO Mariusz Golec commands a strong OEM presence in Poland, Germany, France, Italy and the UK. Following ongoing success with strategic acquisitions and geographical diversification, the top-10 producer of trailing equipment in the world is poised to tackle new markets.
“WE CONQUER NEW MARKETS AND BUILD COMPETITIVE ADVANTAGE BASED ON NEW TECHNOLOGIES, WHILE FULLY EXPLOITING THE POTENTIAL OF CONSOLIDATED COMPANIES. FOR US, THE SUCCESS OF OUR ACQUISITIONS IS ALSO GUARANTEED BY OUR DRIVE FOR INTEGRATION WITHIN THE GROUP.”
IN THIS ISSUE BUSINESS 25 MARKET REPORT: CHINA
Key events including a viral outbreak and ongoing trade tensions between the US and China are due to reshape the world.
29 BUILT TO TASK
Cartwright appoints an importer in Europe to sell airfreight trailers in The Netherlands and Belgium.
40 SPECIAL REPORT: PBS
International interest for the Australian scheme for high productivity vehicles is on the rise.
44
EVENT PREVIEW: MEGATRANS2020
As part of the program for this year’s MEGATRANS2020 conference in Melbourne, Australia, there will be a focus on telematics.
48 SPECIAL REPORT: E-COMMERCE Logistics on a global scale is expanding rapidly. Are online retailers, and the supply chain at large, ready to adapt?
52 MARKET UPDATE
The International Road Transport Union has welcomed a series of industry and political
developments, including a future policy package to make Europe the first climate-neutral continent by 2050.
Mariusz Golec Wielton Group
FEATURES 30 SAF-HOLLAND
Equipment specialist, SAF-Holland, has a special coating for optimal corrosion protection, backed by a 10-year warranty, with its SAF Intra PC Premium Coated.
32 CIE MANUFACTURING
CIMC Intermodal Equipment rebrands to CIE Manufacturing in January this year. This reinvention follows a significant production milestone for the US-based OEM as it expands its domestic manufacturing capabilities.
REGULARS
56 EVENTS
04 EDITOR’S NOTE
58 MEGATRENDS
06 NEWS
59 PREVIEW
36 GIGANT
German axle specialist, Gigant Group, has seen a change in leadership. Global Trailer meets Thomas Veismann to learn more.
44 JOST
Leading global producer and supplier of safety-critical systems for commercial vehicles, JOST, acquires Ålö Holding.
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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
A POSITRONIC PERSPECTIVE HARD SCIENCE FICTION WRITER Isaac Asimov explored humanmachine relationships throughout his prolific body of work. For decades, his stories informed the zeitgeist of concern associated with introducing Artificial Intelligence (AI) and humanlike robots into modern and far-future society. The Positronic Man (1992), or the better known 1999 film starring Robin Williams, Bicentennial Man (1999), follows the journey of an android that – over the course of centuries – evolves from an agent of servitude to becoming and independent thinker who eventually seeks recognition and acceptance as a member of humankind. This tale of fiction raises so many questions about a robot’s place in the world, particularly what should a society, government or organisation do when an artificial human achieves something close to resembling sentience. While it seems Asimov’s ‘Bicentennial Man’ is far from becoming a real dilemma in 2020, there are those engaged in academic study who are deep in thought about the current human-machine relationship. Martina Mara – Professor of Robot Psychology at the Linz Institute of Technology of the Johannes Kepler University Linz – says human beings
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and their complex nature should not be replaced, but rather be supported by machines’ strengths. In conversation with BPW, Mara says there are long-term surveys showing Europeans’ scepticism towards robotics and AI has increased in recent years, where people are often afraid of things they do not understand, and many people feeling overwhelmed by new technologies. Mara is in the pursuit of demystifying robotics and AI, particularly in work environments because she claims it should always be clear to employees why a robot is being used, what it can do and cannot do fundamentally. Human-like robots, according to Mara, frighten many people, probably because it is difficult to categorise hybrid humanmachine beings: are they computers or human social counterparts? From a scientific point of view, Mara recommends clearly designing robots as machines to avoid uncertainty. As for concerns about workers being replaced by machinery, Mara asks us to not underestimate our cognitive, motor and social skills and instead envisages a future where humans and machines complement each other.
Blake Storey
DESIGN Kerry Pert, Madeline McCarty
INTERNATIONAL SALES
Ashley Blachford ashley.blachford@primecreative.com.au
CLIENT SUCCESS MANAGER
Justine Nardone justine.nardone@primecreative.com.au
CONTRIBUTORS Tim de Jong
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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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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
NEWS INTERNATIONAL EUROPE AUSTRIA European trailer rental firm, ICTS Group, aims to extend its service arrangements with two intermodal service providers in Austria. Haydar Aksel, Intermodal Traffic Management Transped and Ewald Grasi, Intermodal Services & Business Development Transped, recently received ICTS equipment at their premises in Wörgl, Austria. ICTS is proposing to extend the existing service cooperation to the rental of new equipment like Huckepack standard or mega curtainsided trailers, swap bodies and lightweight chassis. ICTS is reported to have some ‘interesting proposals’ about combining the rental of equipment with a ‘Full Service’ approach. The idea of ICTS becoming a ‘one stop shop’ for Transped is on the table. Transped is using the Zeebrugge terminals for Ro-Ro and intermodal traffic between the UK and Italy. ICTS is present at the terminals with several service vans to check and repair each Transped unit. ICTS is reported to keep the intermodal Transped fleet in perfect condition. Transped Group was founded as a family business in 1983. The core competences of Transped Group are in the fields of European combined traffic transport of different products using a wide range of vehicles and intermodal freight transport. Transped Europe, as part of Transport Group, serves the European market using approximately 1,200 vehicles. The company has over 200 employees and annually transports more than 154,000 full truck loads. BELGIUM Kässbohrer collaborated with Move 6 / G L O B A L TR A I L E R / I SS U E 5 1
Intermodal on a 45’ light coil swap body – K. SWAU CC – to boost coil transportation efficiencies. Designed and engineered by Kässbohrer to meet Move Intermodal’s operational needs and sustainability goals of the industry, K. SWAU CC is reported to pave the way for more efficient coil transportation. Luc Driessen, CEO of Move Intermodal, Kees Winters, Operations Director South at Move Intermodal and Mehmet Önen, Head of Key Account Management at Kässbohrer attended the delivery ceremony. “As Move Intermodal, we focus on intermodal transportation that lowers environmental impact and energy consumption,” said Driessen. “Regularly, heavy coils were loaded onto the train with the help of 25’
An inside look at a K. SWAU CC coil transporter built by Kässbohrer.
swap body vehicles. However, those swap body vehicles caused losses due to inadequate inner height and loading space in length during return freight. “We required a more efficient and robust way of transporting heavy coils and we were sure that Kässbohrer was the right partner to develop innovative solutions. We have concentrated on the most efficient yet robust solutions for a long time and prototyping periods and in the end the only light coil swap body with 45’ length – the K. SWAU CC – was created. We added 100 Kässbohrer coil swap body vehicles to our fleet. “With the help of the walls inside the coil well, it is possible to carry heavy coils without the usage of stanchions that offer operational easiness and
NEWS
EUROPE saves time. “We are glad to develop a brandnew, innovative vehicle that provides advantages during coil transportation together with our reliable partner Kässbohrer,” he said. “K.SWAU CC is making a difference with its robustness despite its tare weight equal to 4.500kg that contributes to operational efficiency,” Winters added. Önen said Kässbohrer is committed to customer satisfaction, developing new products and advancing trailer technology. “As Europe’s pioneer in intermodal transport, Move Intermodal’s
expertise has given us the support to dedicate our know-how and engineering expertise,” he said. “For intermodal transportation, we have been providing the complete product range that includes the lightest swap body on the market, K.SWAU CL, the recently launched biggest volume silo container, the award winning multi-functional container chassis and now, we are proud to respond to the market’s demand for more efficient coil transportation with our K.SWAU CC vehicle.” Offered with three units of 2,150mm coil well and from 900 to 2,000mm coil diameter, Kässbohrer provides
reliable coil transportation thanks to its robust chassis. “As we are the only trailer manufacturer having both KTL and metallisation facilities, K.SWAU CC’s chassis is unique – coated with KTL, as well as with partial metallisation on loading points and full metallisation on crane pockets,” Kässbohrer said in a statement. “K.SWAU CC makes a difference with its advanced security features as well. Equipped with 6x2 units of coil pillar pockets and HD lashing rings, K.SWAU CC offers increased security during versatile operations. In compliance with Standard EN 12642
INTEGRATED POWER
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The Wielton Group is one of the most dynamic manufacturers of semitrailers, trailers and car bodies in Europe. Our offer is directed to transport, construction, production, distribution and agricultural companies, who are looking for optimal solutions tailored to their individual needs.
NEWS INTERNATIONAL EUROPE Code XL - VDI 2700, Kässbohrer light coil Swap Body is offered within total 98 different multi-point lashing points, each with 2.5 tonne capacity, and detachable 16x2 lashing rings on side rave of the chassis. “Moreover, K.SWAU CC is the only light coil Swap Body offered with 7.2 tonne forklift axle load capacity. “Upper structure designed according to C45 transportation code with modular aluminum front wall and swing doors, K.SWAU CC has 34 euro pallet capacity.” FRANCE Business group, GFG Alliance, has announced the creation of a new global low carbon aluminium champion, Alvance, following the consolidation of GFG’s steel businesses into the global entity, Liberty Steel Group, last year. Alvance Aluminium Group will be headquartered in Paris and will bring together all of GFG Alliance’s assets across the aluminium supply chain – from raw materials through to finished components – to drive synergies that will help the business meet ever increasing market challenges and take full advantage of opportunities to expand. Alvance will be the first GFG Alliance global vertical to be headquartered outside of its international headquarters in London and will initially group together the GFG Alliance’s existing upstream aluminium production activities in the UK and France together with its French engineering businesses. Alvance has an experienced multinational management team and is in the process of appointing a Board of Directors to oversee the highest standards of corporate governance. 8 / G L O B A L TR A I L E R / I SS U E 5 1
Sanjeev Gupta, Executive Chairman of GFG Alliance, has also revealed that he is extending GFG’s carbon neutral 2030 (CN30) program to Alvance. Liberty announced a commitment to make its Liberty steel business carbon neutral by 2030 in October 2019. Alvance will now share this CN30 target, with the aim of setting Alvance on course to become the new standard bearer for sustainable aluminium production, ‘Greenaluminium’. Alvance’s portfolio includes Europe’s largest aluminium smelter Alvance Aluminium Dunkerque, the UK’s only remaining aluminium smelter at Fort William, Scotland, Alvance Wheels, France’s only manufacturer of aluminium wheels in Chateauroux and engine cast part producers Alvance Aluminium Technologies Poitou and Alvance Cast Products Poitou. Alvance has also conditionally agreed to acquire Belgium’s Duffel aluminium rolling facilities and is participating in an approval process with the European Commission’s competition team. The Group currently exploits lowcarbon power sources. Alvance’s Fort William smelter is powered by GFG Alliance’s hydro-electric station located on the slopes of Ben Nevis, Scotland’s highest mountain. In France, the Dunkerque smelter makes use of the existing low-carbon French energy mix derived mainly from nuclear and hydro sources. “The creation of Alvance highlights the global nature of our ambitions,” said Gupta. “We’ve made huge progress in both consolidating our steel network worldwide and delivering higher valueadded products to our consumers. Alvance now aims to establish itself
as a champion for Greenaluminium. Extending our CN30 target to this part of the business is both a logical and necessary step in its development. “Given the rise in customer demand for stronger, lighter-weight, recyclable materials, we see aluminium as a key opportunity for growth and sustainable profitability. However, we operate in an international market that’s both cyclical and under competitive pressure, and so by combining our businesses, we’re looking to achieve greater synergies, increase efficiencies and ensure the business is fit to meet the challenges ahead,” he said. GFG Alliance aims to be at the vanguard of sustainable production of materials that will help the automotive and other sectors deliver lighter, greener, more efficient products – Alvance will champion this program with Greenaluminium. GERMANY Dr Matthias Heiden, Chief Financial Officer (CFO) of the SAF-Holland Group, aims to terminate his contract of service at the end of 2020 at the latest as he will pursue a new professional challenge. Dr Heiden has been a member of the Group Management Board of SAFHolland since 1 March 2017 and is responsible for the areas of Finance, Accounting and Controlling, Internal Audit, IT, Legal and Compliance, Human Resources, Corporate Social Responsibility as well as Investor Relations and Corporate Communications. The Board of Directors has started a selection process to identify a suitable successor for Dr Heiden. Until his departure - at the latest by the end of 2020 – Dr Heiden will continue to
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EUROPE fully perform his duties. It is possible that an earlier termination date will be agreed on by mutual consent. “We respect the decision of Dr Heiden,” said SAF-Holland Chairman of the Board of Directors, Dr Martin Kleinschmitt. “In the name of the entire board, I would like to express our gratitude already at this point for the excellent, trusting and successful cooperation to date and his valuable contributions to the company,” he said. Enterprise software company, Software AG, has appointed Dr Heiden as its new CFO. Dr Heiden will be taking over from Arnd Zinnhardt, who will step down after 18 years in the role. Dr Heiden will join Software AG and assume the role of CFO and Member of the Executive Board officially after a transition period is completed. Before joining SAF-Holland, Dr Heiden spent 12 years with SAP SE
in a range of senior leadership roles, including CFO SAP Deutschland and SAP Head of Global Treasury. His final role with SAP was that of Regional CFO for Middle and Eastern Europe, where he was a member of both SAP’s Global and European Leadership teams overseeing significant revenue streams across all lines of business. While at SAP, he was a key player in its transformation to a subscription and cloud-based business model and was co-sponsor of SAP’s own finance transformation program, ‘Finance Run Better Together’. “Joining Software AG at this stage in its transformation journey is very exciting,” said Dr Heiden. “Its financial strength and innovation agenda are compelling. I look forward to taking the company and its finance function to the next level in executing the Helix transformation agenda in the coming years.”
SAF-Holland Chief Financial Officer, Dr Matthias Heiden.
POLAND Technology company, WABCO, has opened a new Global Test Center in Wroclaw, Poland, enabling functional and durability testing in extreme climatic chambers to improve the safety and efficiency of commercial vehicles. The facility is an extension to the existing WABCO Research and Development (R&D) Center which opened in October 2014 and represents an investment of 3.3 million USD. The facility will enable performance and endurance tests for a range of solutions including its Modular Braking Systems Platform (mBSP), Automated Manual Transmission (AMT) and car compressors, all of which improve vehicle safety and efficiency. A variety of climate chambers enables state of the art automotive testing and measurements in extreme temperature ranges. An additional rapid prototyping workshop for valve technologies will also be installed on-site. “The new Wroclaw Test Center will enable us to increase our capacity in product validation allowing us to deliver greater value and quality to our customers,” said WABCO Poland Engineering Site Leader, Dr Eng. Elżbieta Gawin. “Through expansion of our R&D Center capabilities, our employees will gain further experiences and competences in mastering product and system development that improve the safety, efficiency and communication of heavy duty vehicles that we see every day on our roads,” said WABCO Poland Country & Site Leader, Paweł Pałubiński. “This investment further strengthens 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
NEWS INTERNATIONAL EUROPE our position as one of the largest employers of skilled workers in the Lower Silesia Region.” RUSSIA The International Road Transport Union (IRU) has named Vladimir Belay as its new General Delegate in Moscow. Belay is reported to bring in-depth knowledge of road transport challenges and opportunities in the region. He has almost 20 years of experience in senior positions in Russian and international business including transport, logistics, automotive, manufacturing and supply chain sectors. The Eurasian region is very important for IRU, notably as an environment for innovative transport policy and practice, and as the overland trade bridge between Europe and Asia. “I have great pleasure in welcoming Vladimir to our team,” said IRU Secretary General Umberto de Pretto. “He will lead IRU’s work across the Eurasian region, particularly in advocacy and with the TIR system, with governments from the Commonwealth of Independent
States and beyond, and multilateral partners such as the Eurasian Economic Commission. He will also be instrumental in representing the Eurasian region at key meetings and events.” IRU said it is keen to continue working closely with members and partners in 2020 to facilitate trade and road transport for the region’s citizens, businesses and economies. RUSSIA The International Road Transport Union (IRU) has named Vladimir Belay as its new General Delegate in Moscow. Belay is reported to bring in-depth knowledge of road transport challenges and opportunities in the region. He has almost 20 years of experience in senior positions in Russian and international business including transport, logistics, automotive, manufacturing and supply chain sectors. The Eurasian region is very important for IRU, notably as an environment for innovative transport policy and practice, and as the overland trade bridge between Europe and Asia.
An aerial view of Russia’s ministry of affairs.
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“I have great pleasure in welcoming Vladimir to our team,” said IRU Secretary General Umberto de Pretto. “He will lead IRU’s work across the Eurasian region, particularly in advocacy and with the TIR system, with governments from the Commonwealth of Independent States and beyond, and multilateral partners such as the Eurasian Economic Commission. He will also be instrumental in representing the Eurasian region at key meetings and events.” IRU said it is keen to continue working closely with members and partners in 2020 to facilitate trade and road transport for the region’s citizens, businesses and economies. NETHERLANDS Trailer manufacturer, Van Eck, has delivered 17 new special airfreight trailers to Japan-based business, TransWeb. “Some years ago, we found Van Eck on the internet and we visited them at the IAA in Hanover,” said Takeshi Maesawa of TransWeb. “More appointments followed and we ordered several trailers. The recently ordered special airfreight trailers will hit the road in our country soon.” Maesawa has lived an impressive career according to Van Eck. Starting as a truck driver, he established his own company. In addition to providing airfreight services, TransWeb also specialises in container transport, car transportation and motorsports logistics. Also, TransWeb is known for transporting exclusive cars for the Japanese market. “This went very well,” said Maesawa. “The Italian manufacturers asked us to execute the pre-delivery inspections
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NEWS INTERNATIONAL EUROPE as well, the final step before a car is delivered to the customer. We see this as a great honour. It lead to the establishment of a special, dedicated location where we do pre-delivery inspections only, he said – adding that the establishment was realised at the outskirts of Tokyo. The trailers that TransWeb specifies from Van Eck feature a specially lowered loading floor to create more inner space, enabling the business to transport more exclusive cars in a safe way. “We have proved this with our customers time and again, and we will do the same now in airfreight”, said Maesawa. “With trailers we use for racing teams in motorsports, as well as on many other occasions, Van Eck has proved to be a close partner ready to figure out solutions that work for us. Meanwhile, there was never at any point a concession when it comes to build quality.” Transweb also operates a fleet of 70 rigid-bodied vehicles. Maesawa told Van Eck he likes to see his trailers delivered on time and is satisfied with the import process. The new special airfreight trailers will be shipped to Japan. A previous stock of two trailers was driven overland with new trucks from the Netherlands to Wladiwostok, in the east of Russia. There, they proceeded on a ferry for the final part of the journey. UK NH Case, has marked 20 years of using Schmitz Cargobull truck bodies by acquiring a new rigid reefer for its chilled and frozen food transport operations across London. The refrigerated truck body, mounted on a 15-tonne MAN TGM 4×2 chassis cab, will predominately 12 / G L O B A L TR A I L E R / I SS U E 5 1
Schmitz Cargobull rigid reefer a ‘platinum choice’ for NH Case.
operate in the capital’s new UltraLow Emission Zone, delivering fresh fish and ready meals to care homes, hospitals, prisons and schools. NH Case chose the new addition to join its nine-strong rigid fleet because of the body’s robust build quality, which reduces repair requirements. As a result, the team, which makes approximately 75 deliveries a week, can be confident in meeting the intensive schedule without being affected by unplanned downtime. “Schmitz Cargobull’s truck bodies have the best build quality on the market,” said NH Case Transport Manager, Tony Thick. “We’ve used them for two decades and we’ve always been impressed by their performance. “The durability helps us to maximise our uptime and maintain our full fleet capacity at all times, which is essential as we’re operating according to timecritical delivery schedules,” he said. The new truck body features Schmitz Cargobull’s proven FERROPLAST panels for increased durability, which are stronger and thinner than standard glass-reinforced plastic (GRP)
bodywork and less likely to sustain cosmetic damage. An Anteo tail-lift also improves driver safety when unloading heavy goods from the truck. Cooling the truck body is a Carrier Transicold Supra 850 undermount refrigeration system, offering set points from -20 to +2 degrees Celsius. Likely to remain in operation for at least a decade, all regular maintenance work will be carried out by NH Case at its vehicle depot in Wincanton. Additional aftersales support will be provided by Schmitz Cargobull’s nearby Service Partner, Spectra Specialist Engineering in Westbury, Wiltshire – one of more than 70 authorised workshops nationwide. NH Case is a family-owned business established in the 1920s. It also has a fish processing facility in Grimsby and a ready meal production site in Warminster. The firm is accredited by the British Retail Consortium, and has additional certifications from the Marine Stewardship Council and British Standards Institute.
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NORTH AMERICA US Former SAF-Holland leader, Thomas Bronz, has been named President and CEO of US Tarp. Bronz joins US Tarp with more than 20 years of commercial vehicle experience including roles with Sloan Transportation Products, Hadley Products, SAF-Holland and Haldex. Bronz is reported to have extensive experience in product development, sales and marketing and operations management. Prior to coming to US Tarp, Bronz was Director of Aftermarket Sales at SAF-Holland, his second stint with the company
after their Neway Anchorlok brand suspension controls business was sold to Haldex, where he was General Manager of Suspension Controls. In 2014, Bronz became President and CEO of Hadley Products, transforming the business to be operated more efficiently. In 2010, Bronz led the turnaround of Sloan Transportation Products, where he re-energised its product portfolio and converted it to a successful standalone company. 2006 found Bronz as the Director of High Performance Product Development for Brunswick
Corp. While at Brunswick, Bronz lead the development of a new fibreglass product line in addition to implementing a more rigorous product development process. Residing in Holland, Mich., Bronz holds a BSME from Michigan Tech and earned an MBA from the JL Kellogg School of Management at Northwestern University. US Tarp, headquartered in South Haven, Michigan was founded in 2005. The company designs, fabricates and assembles load containment and cargo systems for over-the road vehicles including dump bodies and trailers, roll-off
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NEWS INTERNATIONAL NORTH AMERICA waste bodies and grain trailers. “We’re thrilled to bring Tom’s extensive industry knowledge and leadership experience to US Tarp,” said Dan Broos of US Tarp’s Board of Directors. “We have a tremendous growth opportunity ahead of us,” said Bronz. “By getting closer to our OEM and aftermarket customers and providing custom engineering and distribution solutions to their needs, the sky is the limit for US Tarp.” In addition to Tom Bronz, the leadership team of US Tarp includes co-founder Todd Martinson; Ashley Hanko, Director of Sales; Marti Kupres, Product Development; and Steve Moerdyk, VP and Controller. US Utility Trailer Manufacturing Co., has congratulated Craftsmen Utility Trailer as the recipient of this year’s Golden State Foods’ (GSF) Vendor of the Decade honour. “It is with pride that we congratulate Craftsmen Utility Trailer on this
US-based transport and logistics company, XPO Logistics, is considering the divestment of a business unit.
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prestigious award,” said Utility Senior Vice President Sales and Marketing, Craig Bennett. “Craftsmen Utility Trailer has always gone above and beyond for their customers. They work hard to help GSF with everything they need to be successful in today’s competitive environment.” GSF acquired over 1,500 new Utility 3000R reefer trailers from Craftsmen Utility Trailer throughout their partnership. “What started off as a business relationship back in 2000 has turned into a true partnership with both our business organisations working hand in hand to provide excellent service as well as assistance in the communities we serve,” said Tony Mercurio, Vice President of Sales & Marketing at Craftsmen Utility Trailer. “We provide strong dealer network support and service to Golden State Foods’ distribution centers across the United States combined with the custom trailer designs which Utility is always reevaluating, allowed for
the success and efficiency of GSF requirements and needs that ensure routes are safe and efficient.” “In addition to the business over the years, we have also enjoyed an incredible charitable partnership with GSF,” said Craftsmen Utility Trailer President, Lou Helmsing. “For the past decade, our Craftsmen Cares Team has worked hand in hand with the GSF Foundation, providing support programs to children and families in need in the communities in which we live and work.” Craftsmen Utility Trailer was founded in 1982 and is a second-generation, regional full-service Utility dealership with three locations St. Charles (St. Louis), Missouri, Sikeston, Missouri and Davenport, Iowa. US XPO Logistics’ Board of Directors has authorised a review of strategic alternatives, including the possible sale or spin-off of one or more of XPO’s business units.
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NORTH AMERICA “XPO is the seventh best-performing stock of the last decade on the Fortune 500, based on Bloomberg market data,” said XPO Logistics Chairman and CEO, Bradley Jacobs. “The share price has increased more than ten-fold since our investment in 2011. Still, we continue to trade at well below the sum of our parts and at a significant discount to our pureplay peers. That’s why we believe the best way to continue to maximise shareholder value is to explore our options, while remaining intensely committed to the satisfaction of our customers and employees,” he said. XPO noted that there can be no assurance of any specific outcome. The company has not set a timetable for completion of the review process and has not determined which, if any, business units would be sold or spun off. However, the company does not intend to sell or spin off its North American less-than-truckload unit. XPO has retained Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC as its financial advisors and Wachtell, Lipton, Rosen & Katz as its legal advisor to assist with the review process. US LED vehicle lighting manufacturer, Optronics International, has completed its acquisition of Texasbased trailer harness and electronic control system specialist, USA Harness. USA Harness provides the global transportation industry with its USA-PLUS Sealed Modular Wiring Harness System and its patented USA-PLUS Modular Connection System. With its unique O-ring-style seal and secondary lock pin design,
the USA-PLUS Modular Connection System has reportedly been tested and proven to perform at three times the industry standard. The acquisition makes Optronics the newest of only a few manufacturers capable of fully serving the light-, medium- and heavy-duty commercial vehicle industry with both lighting and harness technologies. The industry, according to Optronics, will benefit from increased competition and a broader array of advanced, integrated, modular power delivery and lighting solutions. “In less than a decade, Optronics has dramatically changed the competitive landscape in commercial vehicle lighting with its focus on technological innovation, broader options and greater value, and we’re about to do the same with harnesses,” said Optronics International President and CEO, Brett Johnson. “OEMs have become ever more adamant in encouraging us to enter the harness side of the business because the competition in that segment has remained so limited,” he said. The newly acquired engineering and manufacturing capabilities of USA Harness will position Optronics to hit the ground running in North America, while fully leveraging its synergies as a global lighting and harness supplier. “We have watched Optronics’ exponential growth over the years and have engineered more and more harness systems for use exclusively with their lighting,” said Debby Thompson, Interim President of USA Harness. “Though we’ll continue to produce harness systems that interface with all major lighting
manufacturers, we’re excited to now be able to offer a fully integrated modular power delivery and lighting solution.” Optronics is committed to its global manufacturing culture, and according to company officials, the acquisition of a US-based harness manufacturing capability gives the company even greater supply chain latitude. “Just like the OEMs we serve, we’re going to manufacture harness and lighting systems wherever it makes the most sense,” said Johnson. “Miller Industries is a publicly traded global manufacturer with facilities in the United States, England and France,” Will Miller, President and Co-CEO of Miller Industries, said. “Optronics already has lighting and harness systems on some of the world’s most respected commercial vehicle brands, and we see this move as a natural progression for a global tier-one supplier.” Both companies will begin selling integrated modular lighting and harness systems from day one. Targeted manufacturers include those making heavy-duty dry van, reefer, tank, car haul and flatbed trailers, as well as those making light- to medium-duty trailers. Heavyduty truck and body manufacturers will also be a focus, as will heavyduty off-highway vehicles, armored couriers and other specialised vocational equipment manufacturers. “We’re excited to see more competition come to the commercial vehicle lighting and harness business,” said Talbert Manufacturing President, Andy Tanner. “Knowing Optronics, I expect this move to benefit my company, my customers and the industry as a whole.” 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
NEWS INTERNATIONAL OCEANIA AUSTRALIA Iron ore company, Fortescue Metals Group, is supporting the Boao Forum for Asia (BFA) as a Diamond Partner for the 12th consecutive year. BFA, accorcing to Fortescue, provides an important platform to further broaden and deepen Australia’s business and political relationships in Asia and will take place on Hainan Island, China from 24-27 March 2020. Fortescue will host a senior Australian delegation which will centre around the BFA theme of ‘A world in change: bond together for a shared future’. Fortescue will also facilitate a meeting of the China-Australia Senior Business Leaders Forum (SBLF) on the sidelines of the Forum. The SBLF was established in 2013 with the aim of increasing engagement between China and Australia at the most senior China and Australia are facilitating business meetings to strengthen bilateral relations.
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levels of business and fostering strong bilateral business relationships. “The last twelve months has brought Australia and China’s bilateral relationship to the forefront of public dialogue,” said Fortescue Founder and Chairman, Andrew Forrest AO, who is also the co-chair of SBLF. “It is critical that we continue to strengthen this relationship and advance areas of mutual benefit, including our important trading partnership across many industry sectors. “The SBLF is the only purely business forum operating at this senior level as a key contributor to the AustraliaChina relationship and, together with BFA, offers an unparalleled chance to network at the highest level with Asian and global leaders across politics, business and academia,” he said.
“The BFA provides a unique opportunity to discuss issues relevant to our region including China’s ambitious Belt and Road Initiative (BRI), which presents long term opportunities for Australia’s resources industry and Fortescue,” said Fortescue CEO, Elizabeth Gaines. “Both BFA and the SBLF are important elements of Fortescue’s multifaceted approach to engaging with China, which extends beyond the supply of iron ore to include important relationships across procurement, investment and finance as well as academic and social linkages.” AUSTRALIA Global courier company, Aramex, has reported a record year having exceeding two million deliveries for the first time in Australia.
NEWS
OCEANIA With Australians spending an estimated $18 billion over the traditional festive season, Aramex Australia exceeded delivering 450,000 parcels in time for Christmas it confirmed in a statement this week. Despite achieving the new record mark of deliveries, Amarex CEO Peter Lipinski said couriers across Australia were preparing for the post-Christmas rush of returns and growing delivery demand. “It’s no secret that Australians love online shopping and this is driving exceptional growth and demand in the transport sector. This Christmas was a record year for us at Aramex with almost half a million more parcels delivered in December than what was delivered in December 2018,” he said. During December, the company has reported its top five delivery areas were Sydney Melbourne, Port Macquarie, Surry Hills and Toowoomba. Aramex also delivered two million more parcels in 2019 than it did in 2018. “E-commerce has completely changed how we shop, and it’s transformed Australia’s peak retail and delivery season. Christmas may have passed but for couriers and many businesses across Australia, we’re sure the delivery demand will continue this month with a surge in returns of online shopping purchases,” said Lipinski. Aramex is a global provider of comprehensive logistics and transport operating in over 65 countries. In 2016 it acquired the Fastway Couriers network in Australia and is set to complete its national rebrand in the coming months. According to Lipinski, the rebrand across Australia will help Aramex
unlock advantages for the business, its franchisees and customers. “We know that convenience is king, and we’ve laid strong foundations and have been investing in resources to help our customers and Australian businesses capitalise on the growth of e-commerce this year,” he said. “We’re currently in the pilot stage of a new click and collect service with some of our partners and are exploring different ways we can provide our customers with even more convenience. Lipinski said Aramex was committed to delivering for businesses of any size. The company, as a result, was structuring its pricing to suit not only large-scale corporate customers, but also smaller companies just beginning their e-commerce journey. AUSTRALIA Equipment specialist, SAF-Holland Australia, has appointed Mario Colosimo as Managing Director. Colosimo steps down as General Manager of Byrne Trailers to accept the position and will, effective 3 February, report to President APAC/ China/India, Mike Ginocchio. Colosimo has more than 35 years of experience in the sale, supply and manufacturing of road transport equipment and componentry. Joining the industry after completing his engineering degree, he spent the early years of his career working for trailer manufacturers – culminating in a role as Chief Engineer at Tieman Industries – before moving to a senior management position at BPW Transpec in a multi-facetted role in which he had responsibilities for marketing, sales, logistics and technical support for a wide range of products.
SAF-Holland Australia Managing Director, Mario Colosimo.
More recently, Colosimo served at MaxiTRANS as the General Manager of Freighter products, including a stint as the Dealer Principle for MaxiTRANS NSW, prior to his time as General Manager at Byrne Trailers. Colosimo played a significant part in the introduction of Electronic Braking Systems in Australia (early 2000s) and was the recipient of the 2010 Don Watson Memorial Award from the Australian Trucking Association (ATA), which is awarded for ‘conspicuous service to the Australian trucking industry’. Colosimo previously held the position of Deputy Chair of the Australian Transport Suppliers Association (ARTSA). He is currently the Vice President of the Heavy Vehicle Industry Australia (HVIA) and has been a board member since 2015. “I am looking forward to spending time with people in the industry that I have known for many years and to engage with new customers and the team at SAF-Holland,” said Colosimo. “We will be working hard to deliver the best customer service in the industry and to find ways to add value to the customer’s business.” 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
MULITBRA POWER
WIELTON GROUP CEO MARIUSZ GOLEC COMMANDS A STRONG OEM PRESENCE IN POLAND, GERMANY, FRANCE, ITALY AND THE UK. FOLLOWING ONGOING SUCCESS WITH STRATEGIC ACQUISITIONS AND GEOGRAPHICAL DIVERSIFICATION, THE TOP-10 PRODUCER OF TRAILING EQUIPMENT IN THE WORLD IS POISED TO TACKLE NEW MARKETS.
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t takes more than a focus on developing infrastructure and increasing production capacity to lead an enduring operation that is set for organic growth and financial security. Polish OEM, Wielton Group, followed through with its development plans to double the business’ revenue and sales volume. In light of a weaker economic situation, Mariusz Golec in his role as CEO, has ensured that foreign acquisitions not only strengthen the Group’s position in Europe and the world, but mostly supplement its portfolio of new products. “This gives customers access to a wide range of products and makes the Group’s offer even more competitive on European markets,” he said. “Customers can choose from 12 vehicle groups, available in over 800 configurations. As a result of the acquisition of the German company Langendorf, the Group’s range of products has been expanded to include specialist vehicles for transporting glass and precast concrete products. Whereas, thanks to the British company Lawrence
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David, Wielton Group enriched its portfolio with last mile line unique products which are used in FMCG sector. Lawrence David pillar-less courtainsiders allow for an efficient service of loading and faster transport. It is also worth noting that as part of the synergy, 700 chassis types were delivered to the British company from Wieluń.” Investment in research and development is also important for the Wielton Group according to Golec, which is why the Research and Development Centre was launched in 2016. “It has the only station in Poland and
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the second one in Europe for full truckload testing of trailers,” he said. “High quality of our products is also very important. That is why the Group invests in organic development and innovation, developing its machinery towards robotisation and automation of the production process. The high quality of materials, a wide range of offers and extensive product customisation enables Wielton Group reaching a wide range of customers and ensuring that their needs are fully met. Our mission is to create and deliver the best transport solutions for business.” This commitment to delivering the best transport solutions is further realised by Wielton’s unqiue business model ‘multibrand power, which Golec explained is based on global reach built by strong local brands. “We form a Group comprising European companies: Wielton, being a consolidation company, Fruehauf, Lawrence David, Langendorf and Viberti,” he said. “Wielton 2020 strategy adopted by us is based on the
organic growth and acquisitions. When entering new markets, we carefully analyse their sales potential and investment climate. Diversification of business in terms of both geography and product is extremely important to us.” Golec considers acquired companies as partners which is why looking for mutual synergies is crucial for the Group to ensure the business’ autonomy and ‘real’ development. “To this end, we implement new investments together,” Golec said. “We conquer new markets and build competitive advantage based on new technologies, while fully exploiting the potential of consolidated companies. For us, the success of our acquisitions is also guaranteed by our drive for integration within the Group. “We see this process from four perspectives – process, purchase, production and sales. The synergies obtained in these areas not only significantly increase the negotiating position of the entire Group, but also have a positive impact on cost optimization and efficiency of each of its entities. “Due to geographical diversification and the multibrand model we better understand the characteristics of individual markets and customers. Our brand portfolio includes entities with an established position in the local market. Their potential and product offerings enrich the entire Group culturally and as regards offerings. This is what brings us closer to our customers and makes us understand their needs. And due to a wide range of products and their high level of customisation, we are able to satisfy even the most demanding customers.” On the productivity and vehicle output front, Wielton is doing well amid a slowdown in the European market. “The possibility of geographical diversification allows Wielton Group to maintain growth, and in Wielton’s plants the production is kept on a stable and high level,” Golec said. “Replacement of the previous co-operator with Lawrence David and the growing demand from this company for Wielton’s finished chassis, create good prospects for the future. Last year, more than 700 chassis were delivered to Lawrence David from Wieluń. The cooperation will be continued in 2020 yet on a much higher level. Wielton will deliver more than 2,000 finished chassis to Great Britain.”
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In November and December, according to Golec, Wielton increased its share in the Polish market. A Polish Automotive Industry Association reported in December 2019 that Wielton became the leader in registration of new trailers and semi-trailers with a permissible Gross Vehicle Weight (GVWR) above 3.5 tonnes. In a difficult, declining market, Wielton recorded an increase in its shareholding to 16.7 per cent in December. Golec said 2019 was also important for Lawrence David – a period of intense change and reorganisation. “Joining Wielton Group, the British company commenced the integration process of procedures, purchases, production and sales. The synergies achieved in these areas have not only significantly increased the negotiating position of Lawrence David, but also have had a positive impact on cost optimisation and the possibility of processing larger orders. The results obtained by Lawrence David in 2019 provide a solid foundation for achieving the sales targets that the UK company has set for 2020.” Looking at the near future, Golec has observed that transport is under intense pressure due to the need to reduce external costs, including congestion, fuel cost reduction or decarbonisation, hence the growing demand for semi-trailers with reduced empty weight to reduce fuel consumption. “We are responding to this demand by introducing new models of semi-trailers with a lighter design and improved aerodynamics,” he said. “We also anticipate that the trend of product personalisation will continue in the coming years. Customers expect full adaptation of semi-trailers to their needs. Additionally, we can observe a certain specialisation of manufacturers in specific solutions. Manufacturers that fit into this trend are growing fastest. Another visible trend is the development of other forms of ownership and financing of transport equipment, such as long-term rental or leasing. An increasingly significant problem, especially on the European market, is the shortage of drivers and rising
The Wielton Research & Development Center.
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labour costs in this industry. In recent years, the importance of reliability of tractors and semi-trailers has increased and will continue to increase, as well as the importance of their ease and speed of operation to minimise unnecessary downtime.” Wielton showcased its latest Curtain Master models late last year. For Golec, customer requirements are growing, so it is necessary to adapt and cater to their needs. “In our unique multibrand model we operate in many markets,” he said. “Individual markets as well as local consumers are different and have different requirements. In order to care for the needs of our customers Wielton Group is constantly working to expand its offer and introduce new models to European, Asian and African markets. “Having a second European and a third world-wide Research and Development Centre with a unique full truck testing station for trailers makes this task easier for us. “Last year, we presented a full family of Curtain Master trailers and other models of tipper semi-trailers, dedicated to agriculture and for the African market. We are constantly expanding the offer of our products customisation. For this reason, we have developed an innovative docking system for forklift trucks inside the body of spatial sets and trailers. These solutions have been developed together with our customers and are fully adapted to their needs. We also develop our tippers, equipping them with solutions to facilitate transport and unloading, i.e. a teflon insert, adaptation to the installation of compressors for feed blowers. Let’s also work on developing our offer of container semitrailers with vehicles for transporting 20’,23’ and 25’ containers with liquid materials. “Let’s return to Curtain Master. During the development of the Curtain Master, special emphasis was placed on durability, tightness and functionality. The modern frame constructions and bodies ensure the trailer’s high durability, which has been confirmed by numerous tests carried out in the Research and Development Centre of Wielton. At the same time, the trailer’s empty weight was kept low, which significantly reduced
COVER STORY
The Wielton product portfolio includes curtainsiders and tippers.
the costs of operating it on long journeys. The chassis is protected against corrosion by means of a cataphoretic painting technique, which guarantees an optimal coating thickness and higher quality and an even longer lifetime of the semi-trailer. The new designs also demonstrate emphasis on safety and ergonomics of use, which facilitates and accelerates the handling of the semi-trailer during loading and unloading. “Our customers expect durable and modern products that are at the same time comfortable to use and safe. Having them in mind, we present five models designed for various transport tasks. The company listens to the needs of the market and tests new solutions before they reach customers. Wielton’s semitrailers are subjected to endurance tests, in which the condition of the vehicles is checked after half a million kilometres, i.e. the distance covered usually during 5 years of operation. This gives users a proven semi-trailer that will be in operation for many years.” Most transport in Europe, according to Golec, is carried using curtainsiders. “This is mainly due to the international character of the transport, which must meet certain standards, requirements,” he said. “In addition, customers appreciate the solutions in these type of bodies, which are often extremely ergonomic. This translates into the structure of the trailer manufacturers’
orders book. In Wielton Group, curtainsiders in various versions have been gaining the greatest interest of customers, and thus interests in sales, unalterably for many years. This is the product group that definitely dominates our sales. For this reason, we try to introduce new products and solutions that are tailored to the specifics of a given market and customer needs. Last year we presented a complete family of Curtain Master trailers on the Polish market.” Tipper semi-trailers take second place, Golec said, with increasing share in the product portfolio structure. “Wielton has been the sales leader of this product group in Poland for many years,” he said. “In this product group we are also successively developing and implementing new models tailored to the requirements of specific markets such as Africa for example. We are also introducing further customised solutions for our customers. Tipper bodies on chassis supplied by leading manufacturers such as Scania, Volvo, Renault and Mercedes are of great interest as well. Such solutions are most popular in Russia and Poland. Our vans and last mile bodies are also becoming more and more popular, which is related to the development of the e-commerce market, especially on the British market.” Wielton topped a Corporate Climate Crisis Awareness study based on audit information between 2017-18. It Is clear that sustainability is an important consideration for the Group. “We are very proud to have the highest rating in the climate awareness survey of public companies,” Golec said. “Sustainability is extremely important. Business must approach its activities responsibly. Our CSR strategy enables us to build a strong international Group while respecting people, nature and ethics. Recently, we have conducted an in-depth study on the relevance of non-financial data. This allows us to improve our production processes to minimise environmental impact. We see this award as an incentive for further action in many dimensions, both in optimising the production process and in developing new solutions to reduce the carbon footprint of trailer operations. We focus on reducing the weight of our vehicles and thus the fuel consumption and exhaust emissions. We are also working on developing aerodynamic packages available in our offer.” In addition to supporting a more sustainable manufacturing future, Wielton Group is also encouraging young people to work and study in an industry
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that appears to be shrinking in terms of the number of skilled workers active in the market. “It is therefore extremely important to stimulate this area,” Golec said. “The company sees great potential in this type of activities due to the possibility to educate professionals for their needs according to its own program. At the same time, we help young people in creating their professional path and we support the local labour market. “Locally in Wieluń we have been cooperating with selected educational institutions for many years. The effect of joint activities was, among others, the launch of a patronage class with the specialisation of a mechanic engineer of machines and equipment. Another example is opening of a new polytechnic class. This is another patronage class of Wielton, this tile led jointly with the Technical University of Lodz. “Cooperation with academic centres is also a very important area of the educational activity of the company. So far, as part of its cooperation with universities, Wielton has launched a specialisation in mechatronics at the Silesian University of Technology, provides students with its research infrastructure at the Research and Development Centre in Wieluń and provides an internship and training programmes. To this end, Wielton also strengthens cooperation with the Technical University of Lodz.” Wielton Group’s cooperation with the University led to the development of the Wielton GO app. “Combining business and education – especially academic education – is extremely important to us,” Golec said. “An example of this is the cooperation with the Technical University of Lodz which we commenced in 2018. A joint initiative of Wielton and the Technical University of Lodz is the patronage over the technical class at the Secondary Lawrence David rigid body vehicle for last mile delivery.
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School in Wieluń. We would like to encourage young people to study at the university of technology, and then to return to Wieluń and join our staff. “Wielton GO competition is a joint initiative with the Technical University of Lodz. Our interactive game, which is the first stage of the competition, was addressed to students of many secondary schools in Wieluń, whom we wanted to show what the work in Wielton is like and encourage further development in engineering faculties at the Technical University of Lodz. The works over Wielton Go competition have been in progress for several months. The competition itself began in November and the final of the competition took place on 3 December at the Technical University of Lodz. Wielton GO was the answer to Wielton’s growing demand for educated specialists every year. The project was a modern, but most importantly an effective way of reaching young people, as evidenced by the number of participants and finalists in the competition.” Wielton Group has exhibited at events all around the world, including the Comtrans trade fair in Moscow and Bauma in Munich.
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For Golec, international transport fairs present excellent opportunities to present the latest Wielton products and developments to customers both new and current. “For many years, the Group has been present at the largest events of this type in Europe, presenting products tailored to a given market,” he said. “The strength of the Group is the global reach built up by strong local brands. For this reason, we present mainly products of companies that have been present there for years. It is also important for us to diversify our business both geographically and in terms of products. Last year at Bauma we presented both German products of Langendorf and Polish products of Wielton brand in Munich. Next, on Comtrans fairs in Moscow we demonstrated strengthened products of Wielton and Langendorf vehicles which we are launching in eastern markets. Acquired companies are partners for us and as an equal brand of Wielton Group we stand arm to arm at fairs. When deciding to participate in a particular event, we always take into account the specificity of the market and customer preferences. A trade fair is an excellent opportunity to exchange experiences with our customers, strengthen awareness of their needs and expectations, which allows us to better adapt our offer to a given market.” Wielton Group is set to present at the Commercial Vehicle Show in Birmingham, UK, this April. “We will present the Lawrence David’s offer at our stand,” he said. “We will also appear in Hannover at the IAA Commercial Vehicles Show where we will demonstrate Wielton’s and Langendorf ’s products. We have already started preparations for this event to present the best possible offer of Wielton and Langendorf. We want to create a safe and friendly space to talk about the needs during meetings with potential customers. The formula of the fair has changed. We have observed that such events are not only used to view products by customers. It is a place to talk to clients about needs, improvements but also about business. In this spirit, we are preparing for IAA.” www.wieltongroup.com
Fruehauf tipper.
FRU E HAU F SUCCESS STORY Meanwhile, In France, Fruehauf smashed the competition according to CEO, Richard Rihouet. “A French company Fruehauf, registered on the domestic market 5.72 thousand new units last year, i.e. almost 12 per cent more than a year before,” he said. “A total of 28.4 thousand trailers and semi-trailers were registered in France last year, which is 1.5 per cent more than the year before. “In this situation, the company’s market share increased from 18.3 per cent at the end of 2018 to 20.1 per cent currently and the company has strengthened its position as the leader in the French market. “In December alone, Fruehauf registered more than twice as many trailers and semi-trailers as the second manufacturer on the market, and more than 1.5 thousand more in 2019. “Fruehauf is only major player on the French market that has improved sales. “Given the difficult situation on the European transport market and the decline in new truck registrations, we have achieved very good results in France. These results are proof that the investments in Fruehauf bring measurable results. In April 2019, we completed the modernization of the production line in Auxerre. Thanks to this, the costs of welding curtain and box semitrailers have been improved by introducing an automated welding line. The implemented project translated into better balancing of operations at positions, consolidated the quality and repeatability of welding. “Fruehauf is integrated in the Wielton group. The investments the Wielton group has carried out in the past two years have increased the quality and the capacity of our Auxerre plant. This has allowed us to deliver and service our customer in a better way and to gain market shares. We want to stay number one in France. We will constantly increase customer satisfaction. That is our big plan.”
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MARKET REPORT
STATE OF A F F A I R S China is home to the largest trailer producers in the world in terms of high volume output.
TRADE RESTRICTIONS, GEOPOLITICAL INSTABILITY, THE OUTBREAK OF THE CORONAVIRUS AS WELL AS AN ONGOING TRADE WAR BETWEEN THE US AND CHINA HAS SET THE WORLD STAGE FOR A NUMBER OF KEY EVENTS TO PLAY OUT.
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he World Health Organization was alerted to several cases of pneumonia in Wuhan City, Hubei Province of China on 31 December 2019. The virus did not match any other known virus which raised concerns. The following week, 7 January, Chinese authorities confirmed that they had identified a new virus, coronavirus, which is a family of viruses that include the common cold, and viruses such as SARS and MERS. This new virus was temporarily named ‘2019-nCoV’. WHO has been working with Chinese authorities and global experts from the day news broke around the world, to learn more about the virus, how it affects the people who are sick with it, how they can be treated, and what countries can do in response. On 28 January, WHO Director-General, Dr Tedros Adhanom Ghebreyesus, met President Xi Jinping of the People’s Republic of China in
Beijing. They shared the latest information on the coronavirus 2019 (2019-nCoV) outbreak and reiterated their commitment to bring it under control. John Quelch, Dean of the Miami Herbert Business School at the University of Miami, told US media outlet, Bloomberg, in January that “there is a significant dent to consumer confidence in China” following the outbreak. “It is extremely important for the Chinese Government’s credibility and legitimacy that they maintain safety and security hence the
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very substantial and ‘draconian’ such as cutting off transit to cities with millions of people to try and get the problem under control.” When compared with the SARS outbreak coronavirus has already surpassed the number of infected by SARS in a few weeks, compared to the nine-month period that spanned 2003. China’s economy, with nearly 57 million people in 15 cities on lockdown for the next several weeks, has slowed dramatically with factories and transportation networks across much of the country in shut down. Quelch said the short-term economic impact i.e. home confinement of consumers, would lead to a reduction in sales at retail stores, hotels, tourism and travel at a critical time when the Chinese economy was showing signs of slowing down. He added that these are contributing factors to a disruption to the country’s supply chain. “Wuhan is a very important industrial centre, it’s essentially the Chicago of Northern China,” Quelch said – explaining it is a big steel producing area. Dongfeng Motor Corporation is one of the heavy machinery manufacturers currently headquartered there that supplies components and parts to many companies throughout China. The outbreak, according to the International Transport Workers’ Federation (ITF) occurred
FAST FACT The Chinese economy, according to analysts at Trading Economics, expanded by a seasonally adjusted 1.5 per cent on quarter in the three months to December 2019, following a downwardly revised 1.4 per cent growth in the previous quarter and matching market consensus. “In China, the growth rate in [Gross Domestic Product – GDP] measures the change in the seasonally adjusted value of the goods and services produced by the Chinese economy during the quarter. As China’s traditional growth engines of manufacturing and construction are slowing down, services have emerged as the new driver. In the last few quarters strength in services and consumption helped to offset weaker manufacturing and exports.”
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during the Lunar New Year – a major holiday in China associated with decreased manufacturing and exports activity. All factories were closed for the time being after the Chinese government announced that the holiday period would be extended another three days. At the time of writing, there was speculation among mainstream media that the holiday period would be further extended to 10 February. Factories in the manufacturing hub of Suzhou, in eastern China, were closed through 8 February. Shanghai, Zhejiang Province and Guangdong Province, as if by domino effect, announced all enterprises would remain closed until 9 February. Deutsche Bank equities analyst Amit Mehrotra said in a client note that FedEx is “most directly impacted (via the company’s sizeable transpacific airfreight capacity), followed by companies with disproportionate exposure to China imports such as JB Hunt Transport Services and Union Pacific Corporation”. The Wall Street Journal reported that vessels were being held back by China from entering Wuhan, Hubei Province, a major trade hub in the region accessed by a major trade route on the Yangtze River. Chinese authorities announced a ban on all forms of wildlife trade and implemented strict regulations on activities related to wild animals. Shanghai’s local authorities suspended commercial activity, including all operations of companies not involved in the medical field until further notice. The international fallout was swift. On 30 January a ‘partial shutdown’ ordered by Hong Kong’s leader, Carrie Lame, was sanctioned across several border checkpoints, including reducing cross-border transit, shutting down rail and ferry service to China, halving flights and decreasing tour buses. According to Bloomberg Facebook put a stop on all non-essential travel to China and Starbucks temporarily closed some of its China stores. The BBC reported Chinese gaming giant, Tencent, and the tech company, ByteDance, which owns the app TikTok, told staff to work from home. The full extent of the coronavirus outbreak, and its widespread effect on China and the world, is yet to be quantified. China’s next dilemma will be fulfilling the phase one trade deal, of which it is stipulated that it must buy $200 billion USD in additional products from the US over two years on top of pre-trade war levels, reported the South China Morning Post. Meanwhile, the latest reports from LevaData, a software firm that delivers applied Artificial Intelligence (AI) to transform strategic sourcing and procurement, has identified some of the key challenges that may impact trade between China, the US and the rest of the world. A survey flagged tariffs as a primary concern for trade based on survey responses from a sample of 100-plus manufacturing and production executives in the high tech, consumer goods, industrial, automotive and life sciences industries. “Concerns regarding tariffs are clearly top of mind for enterprise manufacturing executives,” said LevaData founder and CEO, Rajesh Kalidindi. “The good news is that emerging technologies can help predict the likelihood of new tariffs and other risks, allowing supply chains to build contingency plans.” A majority of manufacturing executives, according to LevaData, report that a global recession is likely in 2020 (61 per cent) and that an extended trade war would likely lead to a global recession (70 per cent). When survey respondents were asked what issues are likely to have
MARKET REPORT
the greatest impact on their company in 2020, trade restrictions (42 per cent) were the biggest concern by far, followed by geopolitical instability (15 per cent), natural disasters (12 per cent) and impeachmentrelated uncertainty (11 per cent). Despite Brexit, only 7.0 per cent expressed concern about this issue. Also, the executives were concerned that an increase in tariffs would mean: paying more for goods and services (48 per cent), paying more for parts and labour (47 per cent), worsening relations between the US and China (43 per cent), seeing workers out of jobs (44 per cent), paying workers more (31 per cent) and consumers will pay for increased production costs. The vast majority of the executives surveyed (89 per cent) agree that tariffs will increase production costs. Most estimate this increase at 10-20 per cent over the course of the year. More than two-thirds expect both their production costs (71 per cent) and material costs (67 per cent) to increase. As a result, 79 per cent said they are likely to increase the price of their goods and services.
When asked what tactics their company will likely pursue in the event of increased production costs, passing the cost along to consumers ranked number one. This was followed by trying to find cost savings elsewhere in the company, reducing profit margins and renegotiating part supply deals. By industry, respondents expect electronics (60 per cent), automotive (42 per cent) and agricultural products (39 per cent) in particular to bear the brunt of the trade war’s impact. Despite the near-term downsides of the trade war, the surveyed executives are optimistic about long-term outcomes. Broadly speaking, only 22 per cent of manufacturing executives do not support imposed tariffs. Nearly a third (32 per cent) actively support them, and 46 per cent are neutral. Other survey results found: 65 per cent think the tariffs will ultimately lead to improved global trade practices; 40 per cent believe they will lead to improved US-China trade relations in 2-3 years; 37 per cent claim their supply chain operations will run more smoothly in the long term; and nearly half (47 per cent) said the tariffs will ultimately lead to economic growth in the US. However, an almost equal number (46 per cent) believe they will lead to economic decline. With so many variables in play, including the containment of a viral outbreak, bringing manufacturing back on track and working on ideally improving and easing relations with major trade partners, it is difficult to discern what the near future might look like for China. Renowned for being home to some of the world’s top trailer manufacturers in terms of highvolume output, this context could be the fulcrum that levers a revolution in the state’s productivity and comeback story. www.globaltrailermag.com
Courier company, FedEx, faced a compressed shipping season last year, reporting a revenue of $17.3 billion USD for the second quarter ended November 30 2019.
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trailer axles
Challenging themes are our motivation:
YOUR KNIGHT IN SHINING ARMOUR! gigant – Trenkamp & Gehle GmbH | Germany
www.gigant-group.com
B U I LT T O T A S K
CARTWRIGHT APPOINTS
IMPORTER IN EU THE CARTWRIGHT GROUP HAS APPOINTED A EUROPEAN IMPORTER WITH THE INTENTION TO SELL AIRFREIGHT TRAILERS IN THE NETHERLANDS AND BELGIUM. [ Story by Tim de Jong ]
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artwright is a family-owned company that builds a variety of trailers such as typical British combinations which are sometimes up to five metres high as well as up to four-metre-high continental European builds. The north western part of Europe, however, is not the first export location for Cartwright Group. “We also export to Australia and to the United Arab Emirates,” Mark Cartwright said. Cartwright has appointed Burgers Carrosserie to be its importer. Burgers is known for its double deck trailers which it exports all over Europe and also specialises in typical trailers such as airfreight trailers, which have a lower loading floor, smaller wheels and the highest possible internal loading height. “There’s room now in the European market as we’ve seen that some parties now belong to the same owner [Van Eck and Talson belong to Tirsan],” Mark Cartwright said. “Also, our intention is to be firmly represented on the European continent, now that Brexit is almost a reality. Working with a partner like Burgers will ease our exports to the European continent.”
take first steps which means approaching possible customers in The Netherlands and Belgium.” Airfreight trailers are mainly used in north-western European countries to shuttle airfreight between Paris, Frankfurt, Amsterdam and London airports. Obviously, there are also other destinations, but the main traffic is between these destinations. Truck trips usually get the flight number of the shipper, who often have so much airfreight to deal with that they seek assistance from road transport services. Airfreight trailers have roller beds in the loading floor for faster loading and unloading of airfreight pallets. Robust
Cartwright’s first trailer destined for the north west European market on display at the Burgers site in The Netherlands. Other countries
Both partners will take things easy and do not have intentions for now to become active on a short term in other European countries. “Our elections show that changes are upcoming,” Mark Cartwright said. “We have to wait and see in the first place how markets will react. For now, we
Cartwright has developed a special airfreight trailer suitable for continental European applications. It is four metres in height and the maximum kingpin load is 15 tonnes. Roller beds come as standard and what stands out are reinforced rear frame housing doors with five hinges each. The chassis beams are pulled backwards as far as possible to offer protection to the rear lights and the rear frame. The trailer has relatively small 17.5-inch wheels, which are the standard in airfreight and the interior loading height is 2.95 metres, an important feature for airfreight customers. Outward width is 2.60 metres whereas a regular European refrigerated trailer is just 2.55 metres wide. Customers can choose a reefer of their preference, the same goes for the make of axle and brake. Including a mounted refrigeration unit, the trailer weighs 9,200kg. Cartwright produces its own side panels. www.cartwright-group.co.uk
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COAT OF
MANY COLOURS
EQUIPMENT SPECIALIST, SAF-HOLLAND, HAS A SPECIAL COATING FOR OPTIMAL CORROSION PROTECTION, BACKED BY A 10-YEAR WARRANTY, WITH ITS SAF INTRA PC PREMIUM COATED.
Longer service life and higher economic efficiency are the advantages of the SAF Intra PC Premium Coated axle from SAF-Holland. 3 0 / G L O B A L TR A I L E R / I SS U E 5 1
PRODUCT SPOTLIGHT
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he SAF-Holland range offers the ideal axle for commercial vehicles which regularly drive on icy and snow-covered roads: Thanks to a zinc-based coating, the SAF Intra PC Premium Coated is resistant to the de-icing salts used in winter. This allows trucks, tanker vehicles and silo vehicles to benefit from the longer service life of their axles and from the greater economic efficiency. The supplier for commercial vehicle parts offers a 10-year warranty on the additional coating. De-icing salts ensure traffic safety on motorways, highways and inner-city roads covered in ice or snow. These salts, however, are controversial and their use is regulated in many places: De-icing salts are harmful to trees and plants at the roadside, pollute groundwater and cause corrosion damage on bridges, road surfaces and vehicles. In particular for trucks, which
are frequently exposed to de-icing salts and their impact, SAF-Holland offers the weather-resistant SAF INTRA PC Premium Coated axle. Premium Coated for a longer service life
The coating is applied using the optimised three-layer Premium Coated process: The axle is sandblasted and a cathodic dip coating is applied. The component is then primed with a zinc-based powder coating, which protects against corrosion and offers good mechanical properties. As the zinc-based paint is applied using an electro-static process, it reliably reaches even hidden corners, recesses and cavities. The process is completed with a cover layer and a grey topcoat which can be painted over individually. Greater resale value from additional coating
A special zinc coating protects the SAF Intra PC Premium Coated from SAF-Holland against corrosion damage caused by weather and dirt.
“The high zinc content in the coating achieves excellent corrosion protection values – for long value retention and higher economic efficiency of the vehicles,� according to SAF-Holland CEO, Alexander Geis. The greater durability and the wellmaintained appearance of the axles additionally provide fleet operators with a higher resale value, in particular on highquality tanker and silo bodies. Premium Coated is available as an option for all SAF Intra suspensions in the ninetonne range. 10-year warranty against corrosion
The SAF Intra PC Premium Coated is ideally protected against corrosion damage caused by weather and dirt. SAF-Holland is convinced of the quality and economic value of the specially coated axle: As the first and currently only axle manufacturer in the trailer segment, the company offers an optional additional coating for ninetonne axles. In addition, the supplier for commercial vehicle parts offers a 10-year warranty on the coating which makes the axle ready for any weather condition. www.safholland.com
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WHERE EAG CIMC INTERMODAL EQUIPMENT REBRANDED TO CIE MANUFACTURING IN JANUARY THIS YEAR. THIS REINVENTION FOLLOWS A SIGNIFICANT PRODUCTION MILESTONE FOR THE US-BASED OEM AS IT EXPANDS ITS DOMESTIC MANUFACTURING CAPABILITIES.
The CIE West Coast Production Team.
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DA
INDUSTRY VOICE
LES
RE Frank Sonzala introducing Jose Bautista.
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he intermodal industry in the US, much like CIE Manufacturing, is set to expand and flourish in the 2020 decade, according to President and CEO, Frank Sonzala. The skeletal trailer specialist sees the name change as a positive first step towards bringing manufacturing back to the Land of Opportunity. “We have learned that since we operate in a global economy, tariffs at 25 per cent, which equates to a ‘buy four and pay for five chassis’, is a sales deterrent. Also, we started to think of what else could hurt our sales besides tariffs: A natural disaster? War? Maritime shipping strike? Because of all these possibilities, we decided to shield ourselves from outside influences hampering our great product from the marketplace. Therefore, becoming a certified manufacturing company in the US was the best answer.” In light of ongoing US-China trade tensions, among broader globalisation challenges from scrutiny on sustainability through to wider supply chain disruptions, it makes sense for CIE Manufacturing to protect its production interests by consolidating manufacturing domestically. “Although we sold a record 45,441 chassis at a tariff of 10 per cent, it truly had its toll when it was raised to 25 per cent,” Sonzala said. “The trade war affected several products, our chassis were just one of them that was needed in the intermodal industry. Having this knowledge, our competition then raised their prices and did not invest in the infrastructure to satisfy the market’s needs. As a result, many chassis that should have been replaced never got bought and lead time moved out into 2020 from early 2019.” To meet industry demand following domestic changes to its production
ABOUT FRAN K SONZALA Sonzala has been an active member of the trucking industry since 1983 where he started at International Transquip Industries (ITI), manufacturing Mini Max Springless Parking Brakes. After multiple ownership changes at ITI, by 1993 a trucker, who brought a tyre inflation system to meet ITI, showed him the product. The ITI owners at the time did not see the same potential that Sonzala saw, and in 2000, Sonzala became a vendor to CIMC in China for the PSI Tire Inflation System. In 2015, Sonzala was asked to ‘put his hat in the circle’ for the CEO position at CIMC Intermodal Equipment (CIE). After many interviews and meetings, he was chosen over the other candidates. After 22 years at PSI, Sonzala embarked on a career with CIE on 1 March 2016 and ushered the OEM into a new era following this year’s rebrand ‘CIE Manufacturing, Inc, effective 28 January 2020.
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The flag raising.
“WE TOOK THOSE UPGR ADED FACILITIES AND MADE THEM INTO A LARGE VOLUME FAST TR ACK AUTOMOTIVE T YPE PRODUCTION LINE, CAPABLE OF PUT TING OUT 100 CHASSIS PER DAY PER IN AN EIGHT-HOUR SHIF T AT EACH PLANT.” Frank Sonzala President and CEO
processes, the forward-thinking team at CIE Manufacturing reinvented two factories (California and Virginia) during 2018 and 2019. The OEM held a ribbon cutting ceremony in June 2019 to celebrate the opening of its South Gate, California, facility. This site expansion added more than 50,00 square feet (4,645 square metres) and another 50,000-plus square feet of additional parking space, while building houses offices for purchasing, human relations, finance and accounting, logistics, sales support and key executives. The additional space enables the manufacturer to improve and re-organise the legacy facility in South Gate to update and enlarge all offices, employee facilities and operations. A modern, fully-outfitted IT department was added along with a technical centre training room and new production support offices. The CIMC IE parts department doubled in size and re-
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designed production lines can now produce a hundred 53’ chassis and a hundred marine and various other stock chassis per shift. “We took those upgraded facilities and made them into a large volume fast track automotive type production line, capable of putting out 100 chassis per day per in an eight-hour shift at each plant,” Sonzala said. “In this process we changed the company name to CIE Manufacturing, Incorporated. CIE stands for ‘Chassis of Impeccable Excellence’.” CIE Manufacturing’s shift from international reliance to internal resilience means that the OEM can focus on its own chassis production and distribution and still benefit from CIMC’s operations in China. “We can buy from any country, source from the global supply chain, and manufacture in the US,” Sonzala said. “We are an American company – always have been an American company – and we are in the CIMC Vehicle Division, a publicly traded company on the Hong Kong stock exchange.” The OEM’s reinvention has been met with a range of responses from clients according to Sonzala. “We have received many positive responses from all of our customers and most of our competitors’ customers, (who are angry because of that price gouging tactic), pledging orders from our ISO9001 Certified factories as soon as the first quarter of 2020,” he said. “They were very happy doing business with us as Intermodal Equipment and are anxious to continue business with CIE Manufacturing.” Despite the change of name, the OEM’s Revere chassis line, first introduced in 2018, continues to be a standout product. Leading an intermodal evolution of sorts, the Revere chassis features components sources from the best in the industry, a KTL paint process reported to be ‘light years’ ahead of the competition, robotic welding for the perfect weld job on every chassis which means longer lasting equipment that can move more loads.
INDUSTRY VOICE
“THIS PREMIER PRODUCT LINE IS THE LOWEST COST OF OWNERSHIP IN THE FIELD AND HAS THE BEST ROI OF ANY BR AND TO DATE. PRICE IS COMPE TITIVE, QUALIT Y AND DUR ABILIT Y LEAVES COMPE TITORS’ PRODUCTS WELL BEHIND OUR ISO9001 CHASSIS OF IMPECCABLE EXCELLENCE.”
CIE Teammates explain the Quality Control station.
Frank Sonzala President and CEO
The Revere chassis can be fitted with Phillips uptime and electrical air package with the offer of a limited lifetime warranty on lights and harnesses as well as SAF-Holland landing legs, brake chambers and slack adjusters (10-year warranty), wheel ends with Accuride (10-year warranty), Hutchens Industries’ spread axle suspension and five-year warranty Bendix BECU and air valves. “Since we launched the Revere specification in 2018, it has become our flagship product,” Sonzala said. “This premier product line is the lowest cost of ownership in the field and has the best ROI of any brand to date. Price is competitive, quality and durability leaves competitors’ products well behind our ISO9001 chassis of impeccable excellence.”
Looking to the future, Sonzala aims to remain a leader in chassis development and vows to “achieve 60,000 units off our production lines and replace every antiquated chassis in North America with a certified CIE Manufacturing Incorporated product” and “to be the best for our employees, customers, investors and for the US. We survived tariffs and going forward the future is bright and CIE will lead the way as always”. www.ciemanufacturing.com
Al Anderson presents the Revere chassis line.
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SPEAKING OF
SUCCESS GERMAN AXLE SPECIALIST, GIGANT, HAS SEEN A CHANGE IN LEADERSHIP. GLOBAL TRAILER MEETS WITH THOMAS VEISMANN TO LEARN MORE.
gigant production line.
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ith an industrial history of more than 60 years, gigant brings to market a refined selection of axle and suspension systems for Europe’s vast commercial road transport industry. In a concerted effort to maintain pace with such a competitive and innovative sector, gigant appointed a new Managing Director to helm its operations.
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Q: Firstly, congratulations on your appointment as Managing Director at gigant. When did you start in this role?
A: I was entrusted with the management of the company gigant Trenkamp & Gehle GmbH in the beginning of last year and
PROFILE
As an axle specialist in Germany, gigant has serviced the commercial vehicle market for more than 65 years.
gigant Managing Director, Thomas Veismann.
officially assumed managing director duties in May 2019. Q: What were you doing in a professional capacity prior to this appointment?
A: Since 2014 I have been active as Head of Project Management in the KRONE Group, gathering major experience in industrial development projects, such as developing new agricultural machines such as round baler or self-propelled forage harvester. After that I was asked to lead a strategical project in our trailer company dealing with a completely new way of order processing including ongoing organisation changes.
engineering, production and after sales. In 2014 I joined the KRONE Group – the parent group of gigant trailer axles, and manufacturer of agricultural machinery and trailers and semitrailers for road freight transport. After starting as a project manager at KRONE Green I have been active as Head of Project Management in the KRONE Group up to my current position as Managing Director at gigant.
Q: Could you please provide an overview of your career to date in this industry?
Q: Are there any projects or goals that you are working towards in 2020?
A: My professional career started after my studies of Industrial Engineering at the Technical University of Kaiserslautern as a consultant for the automotive industry. During this period, I was involved in several projects, supporting our customers in the areas of
A: We just started our ambitious new strategy 2020-2025 in which we will try to achieve international expansion for our axles while looking for new opportunities in the DACH/Benelux area. Our widespread fame in accordance with optimising our product portfolio will help us achieving our goals. Q: Is gigant preparing anything special for the next IAA Commercial Vehicles Show?
A: We will focus more on our value-add services as a company, particularly our service network. Q: Has there been any new developments with gigant self-steering axles, disc brake swing axles and low bed trailer suspension?
FAST FACT gigant has a busy schedule of events to exhibit at this year. To be confirmed, these include: Techagro CZ (Brünn), Bulthuis Transport Event (Utrecht), CV Show (Birmingham), CTT Moscow Bauma (Moscow), Elmia Lastbil (Jönkoping), Automechanika (Frankfurt) and IAA Commercial Vehicles Show (Hannover).
A: We are continually improving our products, with an eye for total cost of ownership, introducing, for example, low maintenance steering axles. Q: Have you observed any trends or challenges in the commercial vehicle industry that gigant is addressing or aims to address?
A: We will look at tire pressure systems and increased load capacity for our swing axles from 10 to 12 tonnes. www.gigant-group.com
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DRIVE INTO THE FUTURE M EG AT RA N S .CO M .AU
P R OUD PARTNE R
SU PPO RT I NG SPO NS O R S
CO N FEREN CE S PO N S O RS
1 ST - 3 R D A P R I L 2 02 0 M E L B O U RN E CO N VE N T IO N & E X HIB IT IO N CE N T RE
TICKE TS N OW ON SA L E
ACCR EDITATION PART NER
ASS O C I AT I O N PARTN ERS
CELEB INTERNATIONAL INTEREST FOR THE AUSTRALIAN SCHEME FOR HIGH PRODUCTIVITY VEHICLES IS ON THE RISE AS DIFFERENT TERRITORIES LOOK AT ADAPTING PERFORMANCE-BASED STANDARDS TO MEET THE CHALLENGES OF GROWING CONSUMER ECONOMIES IN ACCORDANCE TO THEIR UNIQUE ENVIRONMENTS.
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Chief Engineer of Australia’s National Heavy Vehicle Regulator, Les Bruzsa.
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n Australia, vehicles approved for Performance-Based Standards hit a new record for uptake last year with an upsurge in approved PBS applications as the scheme surpassed the number of design applications achieved over the same period in 2018. Recommended changes to the design approval process, in which pre-advised applications and also the variations, have had a desired effect, with the average PBS application now approved inside seven days spawning renewed industry confidence. The National Heavy Vehicle Regulator (NHVR) administers the PBS scheme under the Heavy Vehicle National Law (HVNL). It is an alternative regulatory system for heavy vehicles, which replaces the prescriptive method of using mass and dimension limits. The purpose of the PBS scheme is to make freight transport safer and more productive, and to reduce impact of freight movement on the environment and society. NHVR Chief Engineer Les Brusza considers the record number of approvals further endorsement by the industry this year following active engagement by the
SPECIAL REPORT
RATING
MASS NHVR who has looked to spread the message regarding PBS access, accreditation and education to regional communities ahead of its anticipated next phase of the reform scheme, known currently, as PBS 2.0. “The system is now flexible enough that should a customer want to change the design they will no longer have to wait up to eight weeks,” he says. “They have increased confidence in the framework and especially how we are handling PBS applications. Instead of having very complex PBS applications for prime movers, trailers and suspensions some of the numbers for simple designs have started to go up. In terms of the preadvised applications we are getting those designs through the system in only two days.” At present, one in five new heavy vehicles in Australia are PBS-approved as fleet managers seek to address increasing freight demand and to improve the productivity and safety of the heavy vehicle fleet. Global interest in PBS, however, continues to grow with several international territories now in varying stages of commitment to the Australian-devised scheme.
As the total number of units currently in operation has gone past 10,000 in Australia, Bruzsa believes the scheme is gathering traction in parts of Europe, South Africa and New Zealand. A guest speaker at the International Transport Systems World Congress in Singapore last November, Bruzsa says Australian high productivity vehicles were again a hot topic of interest among overseas attendees with a number of
Community engagement day to promote the safety and productivity benefits of using Performance-Based Standards–approved heavy vehicle combinations.
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European countries actively looking to develop PBS programs. These included Sweden, France, Belgium, Holland and Norway although the driving force behind the introduction of high productivity vehicles in Europe, according to Bruzsa, is not so much the productivity but rather the environmental benefits. “They have very ambitious targets in terms of reducing the greenhouse gases of the transport sector and this applies to the individual countries in general,” he says. “Transport can have a major say in that and, as we’ve already demonstrated in Australia, high productivity vehicles can deliver significant benefits in this area by lowering emissions.” With developments for connected vehicles in the heavy vehicle sector still some time away in Europe, network connected vehicles remain a topic of contention especially in regard to braking standards and how they apply to electronically connected trucks. A recent European Transport Union study undertaken to assess potential options for Performance-Based Standards in a European environment found that the standards initially drafted up by the NRTC (National Road Transport Commission) and NTC (National Transport Commission) 15 years ago in Australia were still very much relevant according to the German-born Bruzsa. “They are complementary even for the unique European environment. Where we started at Level 1 they are thinking about Level 0 in which they are looking at introducing a special city-based set of standards that consider delivery vehicles in completely different city design specifications and urban environment,” he said. The extremely large vehicles classified as Level 4 in Australia would, as part of the program, not be considered in the short term with vehicle lengths likely to be capped at 46 metres according to recommendations made from the study. However, the PBS standards would be supported across smaller commercial vehicles validating the work of the NHVR.
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Bruzsa said Sweden was already underway with evaluations with Denmark set to follow. “For the application it is a generic trial appropriated for delivery vehicles that are accessing city environments,” he explained. “For PBS Level 0 they want to reduce the swept path of the vehicle. So that means they can negotiate smaller intersections, and smaller roundabouts.” Every two years the Institute of Road Transport Engineers New Zealand (IRTENZ), where PBS legislation is currently being finalised, holds an event with international speakers. Bruzsa was one of them at last years’ gathering, where he gave two presentations. One looked at PBS in general while the second incorporated PBS tyres and technology issues. All those presentations were well received he says. In 2019 he also spent ten days in South Africa, where PBS has been involved in a range of ongoing evaluations for over a decade. For the past 12 years most of the country’s provinces have been part of a PBS trial in which 600 vehicles were, at some point, in operation and monitored. The results, according to Bruzsa, have been something of a revelation.
SPECIAL REPORT
“What’s very interesting in terms of the trip reduction and fuel savings and the environmental benefits and the safety benefits is that in South Africa their statistics are almost identical to ours in Australia,” he said. This includes a 46 per cent reduction in major crashes and heavy vehicle fatalities compared to 44 per cent locally. “It’s a different road environment and vehicle environment but they are using the Australian PBS framework as the basis of their PBS trial. They are using our standards. They are using our assessment methods. Sometimes they are using some of Australia’s PBS assessors to assess applications. There is a very close connection between their system and ours.” During the trip, Bruzsa was part of an overarching two days of training courses for industry and government representatives in which he delivered a series of ten lectures covering the historical and technical context of the Australian Performance-Based standards scheme. It was his second trip to South Africa having first given presentations in Cape Town and Johannesburg in 2016.
Prompting greater agility remains a focus in Australia where the rigid descriptions across the heavy vehicle classifications has meant that the current legislative framework can be too restrictive. Removing some of the PBS vehicle combinations from the scheme and then transitioning it back to the prescriptive fleet was one of the original principle objectives of PBS when Bruzsa first started working on it in 1999. In New Zealand, where heavy freight vehicles have been allowed to operate at 2550 mm width without restriction since 2017, approved non-standard vehicle combination designs have been introduced to streamline the approval process for applying for high productivity commercial vehicles. The proforma designs for new non-standard vehicle designs that meet the Performance Based Standards in New Zealand are, according to Bruzsa, worth looking at from an Australian perspective. “It would be great in the new year to create these sort of classes of proforma designs,” he says. “For some of these higher mass combinations New Zealand has created proforma designs and what it means is that they use PBS to create those proforma designs and then you use the vehicle to meet those specifications. So if they have a B-double then they specify the length, the axle space, the widths and some other elements based on PBS and then you approach the manufacturer and say ‘build this.’ When you get that vehicle you don’t need to do a new PBS assessment.” New Zealand is currently in the process of finalising its own PBS legislation. Unlike Australia, it will opt for a generic tyre model. “We have had some interesting discussions about our experience with some of the management issues of PBS such as the PBS tyre issue,” Bruzsa says. “In their PBS legislation they think that a generic tyre will be more practical and more beneficial for operators and would make their PBS system more accessible.” www.globaltrailermag.com
Road train configuration.
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PARTNERING ON
GROWTH JOST WERKE AG, A LEADING GLOBAL PRODUCER AND SUPPLIER OF SAFETY-CRITICAL SYSTEMS FOR COMMERCIAL VEHICLES, HAS ACQUIRED ÅLÖ HOLDING, ONE OF THE WORLD’S LEADING MANUFACTURERS OF AGRICULTURAL FRONT LOADERS. THE ACQUISITION WILL TRANSFORM JOST’S EXISTING AGRICULTURAL BUSINESS INTO ANOTHER CORNERSTONE OF THE GROUP.
Å
lö is headquartered in Umeå, Sweden. It has production sites in Sweden, China, the US and France as well as sales offices in all significant markets. The company develops, produces and markets its agricultural applications under the internationally renowned brand Quicke. Since its foundation in 1949, Ålö has become a leading company in the international market for agricultural front loaders. With about 700 employees and a worldwide market share of approximately 30 per cent, Ålö’s attractive product portfolio and wide customer network of OEMs and dealers will strengthen JOST’s presence in the agricultural sector. In the future, JOST will use its own expertise in Asia, Africa and Latin America to accelerate Ålö’s access to these markets, thereby creating further opportunities for growth. At the same time, JOST will expand its industrial expertise as a producer and supplier of systems and components for agricultural commercial vehicles, strengthening its position in this promising market. JOST expects that the integration of Ålö will also generate synergies in product de-velopment and purchasing as well as in the joint commercialisation of products for the agricultural industry marketed under JOST’s current brand ROCKINGER and Ålö’s brand Quicke.
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Joachim Dürr, CEO of JOST Werke AG.
ACQUISITIONS
Joachim Dürr, CEO of JOST Werke AG, is pleased about the acquisition. “With Ålö we are acquiring one of the largest manufacturers of agricultural front loaders worldwide,” he said. “Like JOST, service quality, customer orientation and sales excellence are Ålö’s top priorities. The company operates under the long-established and international renowned brand Quicke. This makes Ålö a perfect match for JOST. For us, this acquisition is an important strategic step towards supplying an even broader base of customers in the commercial vehicle industry with highquality products and intelligent system solutions. Moreover, it will give us access to new growth fields.” Dr Christian Terlinde, CFO of JOST Werke AG, is also looking forward to future growth. “This investment enables us to benefit from the sustainable growth trends in the off-highway segment in addition to our classic on-road business,” he said. “Ålö complements JOST not only strategically but also financially. We expect the acquisition to be accretive to JOST’s earnings already in 2020.” Niklas Åström, CEO of Ålö, commented: “In JOST we have found an ideal industrial partner who, like us, maintains JOST Werke AG CFO, Dr Christian Terlinde. close contact with OEMs and end customers and clearly understands and appreciates the strategic advantages of a strong product brand. We can learn a lot from each other. By bundling our know-how we will be able to develop promising business areas together”. The responsible antitrust authorities approved the acquisition without restrictions. The closing of the transaction was completed on 31 January 2020. JOST used €50 million cash in addition to debt to finance the transaction. Ålö is expected to be included in the scope of consolidation of JOST as of 1 February 2020. www.jost-world.com
Ålö CEO, Niklas Åström.
Quicke X-series front loader.
ABOUT JOST JOST is a leading global producer and supplier of safety-critical systems for commercial vehicles. The company offers branded quality products clustered in three systems: Vehicle Interface (focusing on products required to operate a commercial vehicle combination of trucks and trailers such as fifth wheels and landing gears), Handling Solutions (including container technology and hydraulic cylinders products) and manoeuvring (focusing on truck and trailer axles and forced steering). As the number one supplier of fifth wheels and landing gears globally, JOST is the market leader for vehicle interface systems. JOST’s global leadership position is driven by the strength of its brands, by its long-standing client relationships serviced through its global distribution network as well as by its efficient and asset- light business model. The Company’s core brands ‘JOST’, ‘ROCKINGER’, ‘TRIDEC’ and ‘Edbro’ are well-recognised in the industry and highly regarded for their quality and continuous innovation. With its sales and production facilities in 22 countries across five continents, JOST has direct access to all major truck and trailer manufacturers and relevant end customers. JOST currently employs about 2,900 staff worldwide and has been listed on the Frankfurt Stock Exchange since 20 July 2017.
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TALKING TEL
MEGATRA AS PART OF THE PROGRAM FOR THIS YEAR’S MEGATRANS2020 CONFERENCE IN MELBOURNE, AUSTRALIA, THERE WILL BE A FOCUS ON TELEMATICS. AHEAD OF HIS KEYNOTE SPEECH AT THE EVENT, STUART BALLINGALL, EXECUTIVE GENERAL MANAGER AT TRANSPORT CERTIFICATION AUSTRALIA OFFERS HIS THOUGHTS ON THE BENEFITS OF TELEMATICS, THE IMPORTANCE OF CONNECTING WITH STAKEHOLDERS AND THE NATIONAL TELEMATICS FRAMEWORK.
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T
he Transport Certification Australia (TCA) is a national organisation that provides assurance services relating to transport technologies and data to enable improved public purposes outcomes from the road transport sector. Stuart Ballingall has been leading the association for the past year in his role as Executive General Manager. With an extensive background in senior public and private roles across the transport sector, he is excited about the benefits that telematics can offer the road transport industry. “TCA’s role is centred around providing assurance services for transport telematics and associated data services,” he said. “We have a strong focus on providing these services to the heavy vehicle industry. Ultimately, our reason for being is to help support productivity, asset management and safety outcomes to be achieved from the road transport sector.” According to Ballingall, the telematics industry is an evolving field. “Transport is like most other sectors in that more things are becoming connected and sharing data,” he said. “This gives the opportunity to develop insights that stakeholders haven’t been able to have access to before. It’s driving a general update in telematics, but also in how this kind of technology can be used.” For Ballingall, MEGATRANS2020 will offer a unique opportunity for all aspects of the logistics and transport sector to come together and hear about the developments taking place in telematics. During Ballingall’s presentation he will be discussing the National Telematics Framework, the framework is a digital business platform consisting of infrastructure and rules that support an open marketplace of telematics and related intelligent technology providers. The Delegates from the commercial heavy vehicle industry networking. TCA administers this platform, it was
EVENT PREVIEW
EMATICS AT
NS2020 established in 2003 and 2008 following a series of decisions made by Responsible Ministers and was globally recognised as an International Standard in 2012. The presentation will also cover the new applications for telematics that are currently being developed with government and industry as part of the National Telematics Framework and Stuart will inform stakeholders about what the roadmap is looking like for deploying this framework. “With telematics being such an evolving field, I hope that our presentation will provide an opportunity for relevant stakeholders to be brought up to speed on how telematics is starting to be used across the transport and logistics industry,” Ballingall said. MEGATRANS2020 offers a rare opportunity for professionals in this sector to step outside their day-to-day working life and learn about what is happening in their sector. Something that Stuart himself will be doing at the event. “The good thing about events like this is they bring people together, particularly when much of the industry is spread out across the country,” Ballingall said. Ballingall emphasised that telematics offers more than the well-known benefits of improving safety and efficiencies. “There is such a positive conversation around telematics,” he said. “We often find that when stakeholders realise the full breadth of benefits that can be realised from utilising
A wide range of transport technology on display covering all modes.
telematics technology, it’s a very pleasing conversation.” These benefits can depend on the stakeholder, but Ballingall uses the example of a road manager. “It could be getting a better understanding of what is being moved where on your road network, it could be having knowledge to support better decisions about maintenance spend, or it could lead to improvements in the way you manage traffic and routes to generate efficiency gains,” he said. “There is just so much.” Ballingall is also looking forward to exploring the exhibition floor at MEGATRANS2020, something he did at the launch event in 2018. “It’s certainly of value to see what’s on the exhibition floor, what’s come to market recently that is relevant to what we do. MEGATRANS provides a great opportunity to do this,” he said. www.megatrans.com.au
M EGATRANS2 02 0 CON FE RE NCE PROG RAM DETAI LS Wednesday 1st April 09.00-12.30 – Supply chain 13.30-17.00 International Trade and Shipping Session Thursday 2nd April 09.00-12.30 – Electric Vehicles 13.30-17.00 – Road transport Friday 3rd April 09.00-12.30 – E-Commerce
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REAPING THE OF ELECTRONIC DIGITALISATION AND AUTOMATION IN THE SUPPLY CHAIN IS IMPERATIVE FOR ONLINE RETAILERS LOOKING TO GROW AND COMPETE OVER THE LONG TERM, A RECENT STUDY SHOWED. MEANWHILE, OTHER REPORTS CONFIRM THAT LOGISTICS ON A GLOBAL SCALE IS EXPANDING SO RAPIDLY THAT IT IS RAISES QUESTIONS REGARDING FUTURE DEVELOPMENT OPPORTUNITIES.
T
he global e-commerce logistics market, according to Transport Intelligence (Ti), grew by 18.2 per cent in 2018, with emerging markets showing the fastest expansion. The UK-based company expects the global market to grow at an expected nominal 2018-2023 compound annual growth rate (CAGR) of 11.8 per cent. The company’s figures suggest that the cross-border component is a significant driver of this uplift. Cross-border e-commerce is bringing supply chain stakeholders into direct contact and challenging the status quo, but while gaining access to millions, if not billions, of new customers is an attractive proposition for e-commerce companies, targeting purchasers in foreign markets is not the easiest of strategies. The report also examines the trend for offering more omni-channel retail solutions, likely to be a key requirement moving forward. This is largely driven by the purchasing behaviour of consumers, who demand a seamless experience enabled by different channels to order, pay, collect and return products, demanding more delivery and returns options and leverage retailers against each other to get the best value for money. In addition, Global e-commerce Logistics 2019 examines e-fulfilment and last mile cost structures, and provides analysis of structural variations by geography and retail sector. The report authors spoke extensively with senior management and leaders at the largest e-fulfilment and last mile providers globally, as well as with niche e-commerce logistics providers. A common theme was the threat posed by global retail platforms managing their own logistics requirements while also offering services to third parties. The entry of players such as Amazon, Alibaba and JD.com is forcing many to consider what the future of e-commerce logistics might look like. The report’s lead author, Viki Keckarovska, senior research analyst at Ti, said: “While some would say that Europe’s legacy infrastructure and market structures are unfit for the new e-retail world, it could equally be argued that Europe boasts probably the most efficient logistics and transport sector in the world. Ti’s discussions with logistics executives and leaders in the market suggest Europe’s legacy infrastructure is seen as a hindrance to the development of efficient e-retail
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distribution networks, with facilities in the ‘wrong’ place and markets which were more focused on B2B rather than B2C deliveries”. Global e-commerce sales are projected to hit $4.2 trillion USD in 2020 and exceed $6.5 trillion USD by 2023 based on figures from German database company, Statista. By 2021, more than 2.1 billion shoppers are expected
For report author, Viki Keckarovska, Europe has legacy infrastructure but boasts the most efficient logistics and transport sector in the world.
SPECIAL REPORT
REWARDS
EPIPHANIES to purchase goods and services online. In terms of retail e-commerce sales growth by region last year, Asia Pacific saw a rise of 25 per cent, followed by Latin America (21.3 per cent), Middle East and Africa (21.3 per cent), Central and Eastern Europe (19.4 per cent), North America (14.5 per cent), Western Europe (10.2 per cent) and +20.7 per cent worldwide. Taking a closer look at the fastest-growing e-commerce countries in 2019, Mexico reigned supreme at 35 per cent. India trailed at 31.9 per cent followed by Philippines (31
per cent), China (27.3 per cent), Malaysia (22.4 per cent), Canada (21.1 per cent), Indonesia (20.6 per cent), Argentina (18.8 per cent), Russia (18.7 per cent) and South Korea (18.1 per cent). Growth rates, according to Canadian e-commerce company, Shopify, only tell part of the story, though, as the leader of global e-commerce is China. “With an estimated $1.9 trillion USD in e-commerce sales in 2019, online sales in China are three times that of the US. In fact, China’s share of the global e-commerce market is 54.7 per cent or nearly twice that of the next five countries combined [US, UK, Japan, South Korea and Germany].” These statistics show almost exponential growth in the online retail space. So, how will freight operators across all modes tackle these volumes? One whitepaper commissioned by logistics company, DHL, provides new insights on how specific challenges within the e-commerce supply chain can be
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overcome with the support of new technologies. Change at the Speed of the Consumer: How E-Commerce is Accelerating Logistics Innovations, authored by Professor Lisa Harrington, President and CEO of lharrington group llc, looks at six principal areas where e-commerce is challenging the supply chains of merchants and logistics companies: customer expectations for a perfect buying experience; consumers’ desire to buy and receive goods ‘anywhere, anytime’; exploding demand for urban delivery; competition for labour and wage inflation; the emergence of new online sales models and unexpected surges in demand; and environmental concerns. The impact of these challenges is most keenly felt in the areas of fulfilment and last mile delivery. Labour in the US, for example, which is the world’s second largest e-commerce market accounts for 40-60 per cent of warehousing operating costs. With real estate company CBRE predicting in 2018 that an additional 450,000 warehouse workers will be needed in the US by the end of 2019 and unemployment at a consistently low rate, this presents a risk in terms of both cost and recruitment, particularly during peak periods. Increased urbanisation, combined with heightened pressure – from both socially conscious consumers and municipal authorities, in particular – to reduce the environmental impact of transport operations is forcing retailers to seek out creative ways of balancing delivery convenience with reduced mileage for dieselpowered vehicles over the last mile. Across each of the profitability challenges, technologies already exist that allow companies to reduce unit costs, better forecast needed inventory or increase productivity to absorb additional growth. Robotics and automated sorting systems, for example, allow companies to process higher order volumes without the need to engage large numbers of temporary workers. Advanced Warehouse Execution Systems, combining Internet of Things capabilities, machine learning, business intelligence and data mining agents can increase performance and responsiveness to meet rising customer expectations. While autonomous vehicles for last-mile delivery still await regulatory approval in many markets, digitalisation can already support better demand forecasting to allow inventory to be placed closer to the end customer and to optimise transport routings, reducing time on the road. As many of these technologies evolve further and new innovations come to the market, companies that are able to deploy them effectively within their supply chain will be best positioned to address the costly inefficiencies, volatile order trends and demanding customer expectations that characterise the fiercely competitive e-commerce market. “The insights from this new whitepaper show that profitability is still a major challenge for many e-commerce companies, despite — or often actually because of — the dynamic growth of the sector,” said DHL eCommerce Solutions CEO, Ken Allen. “It also gives our customers a comprehensive overview of the specific areas where that challenge is most prevalent, and which technologies currently offer the most potential to support them. “DHL’s innovation approach is targeted at identifying, piloting and deploying across our global network the most effective technologies and solutions in each of these areas. We will continue to actively expand robotics and automation across
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many parts of our operations, for example, and we see artificial intelligence becoming an enabler throughout our business in the future. There is no ‘silver bullet’, but companies must embrace new technologies and innovate to thrive,” he said. Acknowledging that innovation can itself be a profitability challenge, particularly if approached at the wrong pace or with excessive outlays of capital, the research also detailed a three-step approach to innovating successfully: focusing on innovations that provide differentiation; adopting a long-term, strategic view of innovation; and bridging the silos of people, software and machines. “Given the complexity of the global logistics industry, the huge variance across markets and regulatory environments, and the competitive differentiation that comes from relationships and in-depth knowledge of customers’ supply chains, we still see people playing a critical role in the industry for the foreseeable future,” said Allen. “The companies that will win the race to future success are those that are able to combine the expertise of their people with software and machines most effectively.” The Blockchain in Transport Alliance
Logistics competitors such as UPS, FedEx and DHL are considering blockchain applications to improve supply chains.
SPECIAL REPORT
(BiTA) said that executives from FedEx, DHL and United Parcel Service (UPS), last year, shared a single stage and found common ground on how blockchain technology can transform the global supply chain. “This is not a process improvement initiative,”said Dale Chrystie, FedEx business strategist and blockchain fellow, during Blockchain Revolution Global conference in Toronto on April 25 2019. “This is a breakthrough discussion. This is a different way to think about how global clearance looks in the future.” Chrystie, also Chair of the BiTA Standards Council, joined Eugene Laney, head of international government affairs for DHL USA and Mahesh Sahasranaman, Principal Architect, UPS Supply Chain Solutions, in a discussion with Don Tapscott, Executive Chairman of the Blockchain Research Institute (BRI), which is based in Canada. “This is really happening,” Tapscott said, making light of executives from the rival parcel carriers appearing together. The three executives agreed that there is a collective interest in embracing uniform standards and getting governments on board with blockchain technology.
“This is an issue that must be looked at with a global viewpoint,” Chrystie said. “These dots are going to connect. The question is how are you going to accelerate that process.” Customs clearance is an area where blockchain can play an important role, one that requires making governments part of the conversation. Laney pointed to the long lines of trucks at the US-Mexico border as an example of where blockchain, with the use of digital fingerprints, could improve the backlog. “How can we take all those standards and share the best way we can with each other – and share with governments that are part of that supply chain?” Laney said. “Blockchain is a team sport; no one company today completes customer supply chain shipments by itself,” Laney said after the panel. “As such, there is a real need for an open and standardised version of blockchain to be shared by all shipping participants.” Sahasranaman discussed the need to ‘wrangle the standards’ to avoid fragmentation. “Standards bodies like BiTA and BRI help that conversation, to move it forward,” Sahasranaman said. “Collaboration to create standards, ensure that standards are agreed upon, and further ensure those can be used as designed on the blockchain platform is essential for a multi-party supply chain environment.” Sahasranaman noted after the discussion that “The supply chain panel between UPS, FedEx and DHL should stand out as an example – that organisations regardless of how hard they compete, must seek to collaborate in areas that would maximise benefits from this technology to all supply chain participants.” Chrystie emphasised the need for blockchain standards to be open source. “We don’t think you get to a global supply chain blockchain without doing that [open source standards],” Chrystie said. “We need to come to get to agree how we can do that.” Laney stated after the panel that, “DHL Express has mastered tracking and tracing single supply chain transactions, but it can be challenging for some companies to fully manage their goods from production to final delivery. Along with other key elements, such as IoT and RFID tags attached to packages, blockchain would improve visibility, not only for shippers but also for customers who could watch in real-time as parts move through their manufacturing lifecycle.” Laney also commented on the use of blockchain to solve significant issues. He said, “Governments often ask manufacturers and their supply chain participants to ensure that dangerous and counterfeit goods can be detected and stopped. We see the application of blockchain as a way to help us solve these issues to secure transportation networks and stem the tide of counterfeit goods.” Tapscott applauded the three executives as “wonderful examples how you need to think big, have integrity and be considerate of the interest of the global economy when you set out to embrace new technology.” Tapscott said after the discussion, “To fully realise the potential of this second era of the internet, companies will need to coordinate and collaborate on a scale they’ve never done before. The BRI’s goal is to bring industry leaders together, inform them and inspire them to work together and achieve this blockchain revolution. I know BiTA shares that goal as well.” www.globaltrailermag.com
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TO TURN AN URGENT CHALLENGE INTO A
UNIQUE OPP
THE INTERNATIONAL ROAD TRANSPORT UNION HAS WELCOMED A SERIES OF INDUSTRY AND POLITICAL DEVELOPMENTS, INCLUDING THE ANNOUNCEMENT OF A FUTURE POLICY PACKAGE TO MAKE EUROPE THE FIRST CLIMATE-NEUTRAL CONTINENT BY 2050.
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MAR KET U P DATE
ORTUNITY T
he executive branch of the European Union (EU), the European Commission, outlined a European Green Deal for the EU and its citizens in December. This communication effectively resets the Commission’s commitment to tackling climate change and environmental-related challenges that is said to be this generation’s defining task. The European Green Deal is a response to the atmosphere warming and the climate changing with each passing year whereby one million of the eight million species on the planet are at risk of being lost. It is a new growth strategy that aims to transform the EU into a fair and prosperous society, with a modern, resource-efficient and competitive economy where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use. It also aims to protect, conserve and enhance the EU’s natural capital, and protect the health and well-being of citizens from environment-related risks and impacts. At the same time, this transition, the Commission emphasised, must be just and inclusive. “It must put people first, and pay attention
to the regions, industries and workers who will face the greatest challenges,” the Commission said in a statement. “Since it will bring substantial change, active public participation and confidence in the transition is paramount if policies are to work and be accepted. A new pact is needed to bring together citizens in all their diversity, with national, regional, local authorities, civil society and industry working closely with the EU’s institutions and consultative bodies.” The EU is reported to have the collective ability to transform its economy and society to put it on a more sustainable path. It can build on its strengths as a global leader on climate and environmental measures, consumer protection, and workers’ rights. Delivering additional reductions in emissions is a challenge. It will require massive public investment and increased efforts to direct private capital towards climate and environmental action, while avoiding lock-in into unsustainable practices. The EU must be at the forefront of coordinating international efforts towards building a coherent financial system that supports sustainable solutions. This upfront investment is also an opportunity to put Europe firmly on a new path of sustainable and inclusive growth. The European Green Deal will accelerate and underpin the transition needed in all sectors. The environmental ambition of the Green Deal will not be achieved by Europe acting alone. The drivers of climate change and biodiversity loss are global and are not limited by national borders. The EU can use its influence, expertise and financial resources to mobilise its neighbours and partners to join it on a sustainable path. The EU will continue to lead international efforts and wants to build alliances with the like-minded. It also recognises the need to maintain its security of supply and competitiveness even when others are unwilling to act. This Communication presents an initial roadmap of the key policies and measures needed to achieve the European Green Deal. It will be updated as needs evolve and the policy responses are formulated. All EU actions and policies will have to contribute to the European Green Deal objectives. The
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I RU SU PPORTS HYDROG E N USE I N ROAD TRANSPORT The International Road Transport Union (IRU) joined the European Automobile Manufacturers’ Association (ACEA) and Hydrogen Europe in calling for accelerated deployment of hydrogen refuelling infrastructure across Europe in order to meet ambitious decarbonisation targets set for road transport. In a statement issued 10 October, the three organisations urge the European Commission, European Parliament and European Council to provide the right framework to support the roll-out of hydrogen infrastructure across Europe. This implies revising the Alternative Fuels Infrastructure Directive (AFID) to include hydrogen infrastructure and set mandatory targets for long distance transport and commercial vehicles; creating a hydrogen ecosystem across the continent; deploying funding to aid hydrogen projects and initiatives; and ensuring the hydrogen industry is operating in a supportive regulatory environment. Road transport operators across Europe have embraced ambitious CO2 and greenhouse gas emissions reduction targets according to IRU. Investment in new technology will be required in order to meet them, especially with demand in the freight and passenger sectors set to grow by 60 per cent and over 40 per cent respectively by 2050. Hydrogen fuel cell technology – using sustainably produced hydrogen – is an attractive proposition compared to battery electric and complementary to CNG and LNG solutions for long-distance trucks and coaches due to its favourable energy content and operational flexibility for transport operators. The news comes as IRU launched a new initiative to test hydrogen trucks and gather important data for the industry in cooperation with a European consortium of truck manufacturers, fuel cell suppliers and logistics companies. The H2Haul project will gather data during 5 years from a fleet of 16 heavy goods vehicles of up to 44 tonnes, operated by suppliers of supermarket chains in Switzerland, France, Germany and Belgium. Innovative hydrogen refuelling infrastructure will be installed at test locations to reliably and efficiently supply these trucks.
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challenges are complex and interlinked. The policy response must be bold and comprehensive and seek to maximise benefits for health, quality of life, resilience and competitiveness. It will require intense coordination to exploit the available synergies across all policy areas. The Green Deal is an integral part of the Commission’s strategy to implement the United Nation’s 2030 Agenda and the sustainable development goals, and the other priorities announced in President von der Leyen’s political guidelines. As part of the Green Deal, the Commission will refocus the European Semester process of macroeconomic coordination to integrate the United Nations’ sustainable development goals, to put sustainability and the well-being of citizens at the centre of economic policy, and the sustainable development goals at the heart of the EU’s policymaking and action. International Road Transport Union (IRU) Delegate, Matthias Maedge, said the IRU has welcomed the initiative and commitment by President Ursula von der Leyen to make the Green Deal the new growth strategy for Europe. Maedge added that road transport has a key role to play and provided an overview of the Green Deal’s provisions. The Climate Law, planned for release in March 2020, is reported to set a legislative framework to guide the 2050 carbon neutrality objective. For road transport operators, this, according to IRU, represents new opportunities to help the world on its path towards sustainable and inclusive growth, so long as the policies entail smarter road transport rather than a reduction thereof. currently, 75 per cent of carbon dioxide emissions stem from private passenger
MAR KET U P DATE
Road transport has a key role to play in regards to the European Commission’s bold Green Deal policy package.
cars – a figure that speaks for itself when it comes to areas of action under any new climate legislation. The revision of the Energy Taxation Directive, Maedge said, has the potential to lead to a harmonisation of fuel pricing across the European Union and reduce tank tourism, while also accelerating the uptake of lower CO2 fuels through the introduction of a CO2 tax. To meet road transport sector growth, alternative fuels are becoming a necessity. This sector is expected to grow 300 per cent by 2050 in Eurasia – a demand that can only be met by a wider range of alternative fuel options, including gaseous and liquid based fuels. Moving to a zero emission circular economy, with a focus on well-to-wheel rather than tailpipe emissions, will be key according to the IRU. While the EU recognises the importance of modal cooperation, IRU calls for a level playing field between the different transport modes. Rather than a shift, IRU recommends a focus on innovation to build faster, greener and more profitable interconnectivity of transport modes. To incentivise such modal cooperation, one of IRU’s recommendations is to reinvest road user charges into road transport innovation projects. In Europe, more than 50 per cent of goods are transported by road, which generates around €500 billion annual revenue and employs more than five million people. In the last 20 years, the road transport industry has heavily invested in innovative technologies, and in so doing, has managed to lower its emissions by up to 98 per cent. These figures, according to the IRU, demonstrate how
sustainability is the guiding principle of the sector and what road transport means for the European economy. “Only through cooperation will we achieve a more sustainable and prosperous future,” said Maedge. “Today, we can already pick some low hanging fruits, such as the crossborder use of high capacity vehicles and the use of collective mobility services instead of passenger cars.” While IRU remains committed to pursuing decarbonisation efforts and working towards Europe’s goals, it also underlines the importance of a global vision when it comes to carbon neutrality. “Only through cooperation will we achieve a more sustainable and prosperous future,” Maedge said. “Today, we can already pick some low hanging fruits, such as the crossborder use of high capacity vehicles and the use of collective mobility services instead of passenger cars.” www.globaltrailermag.com
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WORLD EVENTS
BREAKBULK
TRANSPORTERTAGE
25-26 FEBRUARY
13-15 MARCH 2020
MIDDLE EAST 2020
Dubai World Trade Centre, Dubai, UAE Conveniently located in Dubai, Breakbulk Middle East will attract more than 1,700 companies representing the full industrial supply chain from over 70 countries. It has, according to event organisers, become the place to meet these decision makers. And because of strong gatekeeping systems within Middle Eastern companies, this event is one of the few ways to make direct contact with them. www.middleeast.breakbulk.com
THE WORK TRUCK SHOW
3-6 MARCH 2020
Indiana Convention Center, Indianapolis, Indiana, US Produced annually by NTEA – The Association for the Work Truck Industry, The Work Truck Show is a once-a-year chance to see all of the newest industry products, choose from dozens of industry-focused training courses, and gain access to technical engineering representatives from hundreds of exhibiting companies. Attendees can interact with thousands of industry professionals, set up meetings with current suppliers or customers; find solutions to resolve technical issues, and talk shop with industry peers at special events and receptions. www.worktruckshow.com 5 6 / G L O B A L TR A I L E R / I SS U E 5 1
BERLIN
Olympic Stadium, Berlin, Germany The TransporterTage Berlin is the established trade fair for trade visitors from industry, trade, commerce and the municipal sector as well as a meeting place for decision makers and executives of the commercial vehicle industry. The ‘Transporter day’ Berlin is reported to be dedicated to, among others, vans and commercial vehicles up to 7.5 tonnes as well as services related to the topic of fleet management. www.transportertage-bb.de
INTERMODAL ASIA
17-19 MARCH 2020 Shanghai, China The Intermodal Asia exhibition and conference will bring together the leading international decision-makers from over 90 different countries, from all areas of container transport and logistics, making it the most important industry annual meeting point in Asia according to the event organisers. www.intermodal-asia.com
KEEP A LOOK OUT FOR Logistic 2020 12-15 May 2020 Prague, Czech Republic www.forlogistic.cz
MEGATRANS2020 1-3 APRIL 2020
Melbourne Convention & Exhibition Centre, Melbourne, Australia MEGATRANS returns in 2020 as an important industry event, facilitating cross-industry collaboration in a multidimensional and integrated conference and exhibition for the freight and logistics industry. It will showcase the latest in artificial Intelligence, robotics, automated racking, telematics and route optimisation, warehouse automation, intelligent fleet systems, blockchain, Internet of Things, big data and advanced analytics. www.megatrans.com.au
Transport Logistic China 16-18 June 2020 Shanghai, China www.transportlogistic-china.com Elmia Lastbil 19-22 August 2020 Jönköping, Sweden www.elmia.se/en/lastbil Heavy Vehicle Transport Technology Symposium 16 TBC China www.road-transport-technology.org/ conferences/china-2020 InnoTrans 2020 22-25 September Berlin, Germany www.innotrans.com
CEM 2020 13-15 MAY 2020
IAA Commercial Vehicles Show 2020 24 September – 1 October 2020 Hanover, Germany www.iaa.de
Kraków, Poland The 14th CEM conference and exhibition on Emissions Monitoring will take place in the historic city of Kraków in Poland. Kraków is the second largest and one of the oldest cities in Poland with excellent road, rail and airport links for visitors and delegates to attend the meeting. www.ilmexhibitions.com/cem/
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M E GATR E N D S
THE SKY’S THE LIMIT
ON-DEMAND AIR MOBILITY SERVICES SUCH AS FLYING TAXIS COULD EASE URBAN CONGESTION ON ARTERIAL ROAD NETWORKS AND GIVE RISE TO OUT-OF-THE-BOX THINKING WHEN IT COMES TO MULTIMODAL TRANSPORT SOLUTIONS OF THE FUTURE.
A
new full-scale aircraft concept between US-based company, Uber Technologies and South Korean automaker, Hyundai Motor Company, headlined the Consumer Electronics Show (CES) in Las Vegas at the start of 2020. The partnership entails plans to harness automotive manufacturing capability and electric vehicle mass production acumen to the Uber Elevate Initiative. Hyundai will produce and deploy these air vehicles while Uber aims to provide airspace support services, connections to ground transportation and customer interfaces through an aerial rideshare network. Both parties are said to be collaborating on infrastructure concepts to support take-off and landing of this new class of vehicle. “Hyundai is our first vehicle partner with experience of manufacturing passenger cars on a global scale,” said Uber Elevate Head, Eric Allison. “We believe Hyundai has the potential to build Uber Air vehicles at rates unseen in the current aerospace industry, producing high quality, reliable aircraft at high volumes to drive down passenger costs per trip. Combining Hyundai’s manufacturing muscle with Uber’s technology platform represents a giant leap forward for launching a vibrant air taxi network in the coming years.” Uber has had its proverbial finger on the pulse for years – adapting to the needs of businesses and individuals seeking greater transport efficiencies in a time where road networks around the world are becoming increasingly congested as a result of spikes in freight activity. In an attempt to alleviate issues arising from logistical bottlenecks and driver shortages, the ride share company previously established a common pool of trailers for leasing (Powerloop) and expanded the concept of rideshare to include an on-demand service offering for shippers and carriers (Uber Freight). In movies like Bladerunner, flying cars are commonplace. The logical progression of perfecting electric Vertical Takeooff and Landing (eVTOL) Personal Air Vehicles (PAV) would be the development of larger vehicles capable of moving heavy goods. Could such a vehicle work in tandem with traditional truck-trailer combinations? What are the challenges of designing and launching an experimental aircraft for cargo haulage purposes?
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While this all sounds like science fiction, a Japanese shipper along with its US partner is gearing up to commercialise a flying truck for long-distance deliveries. Japan’s Yamato Holdings and Bell Helicopter Textron have agreed to jointly develop a driverless flying ‘truck’. Bell will build the body while Yamato will create the container for cargo. The craft will ascend vertically to a designated height and then travel horizontally, carrying up to 450kg at roughly 160kph. Yamato envisions the flying truck being used for medium-to-long-distance cargo shipments, rather than small home deliveries. The cargo container will be designed so that it can be smoothly loaded onto trucks and other vehicles. Before this technology can be commercialised, though, it will require measures to ensure safety, noise reduction and collision prevention. www.globaltrailermag.com
Drone concept art.
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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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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
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ALEXANDER DOBRINDT, GERMAN FEDERAL GOVERNMENT
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
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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