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INNOVATION
BUSINESS
NEWS
Hydrogen Transforms Cold Chain Tippers In The Middle East Future-Proofing Agriculture Equipment Revolutionary Air Suspension Update
Executive Interview: CIMC Vehicles China’s High-End Manufacturing Market Report: US Global OEM Ranking List
SAF-Holland Masters 2020 Industry First Concepts Wielton’s International Developments Awards, Acquisitions, Appointments
Visualization coming into Reality Modular and Digital design
CIMC Vehicle’s modular and digital design beyond the existing design language allows customers to be unprecedentedly autonomous. Customers can be free to choose the configuration and appearance according to their needs and preferences.
www.cimcvehiclesgroup.com
COVER STORY THE CHINA HUSTLE
32
To enhance its road transport products and improve the group’s core competitiveness, CIMC Vehicles is a following a series of growth trends and leading the way in high-end manufacturing.
50
IN THIS ISSUE BUSINESS 38 MARKET REPORT
While Covid-19 has impacted the US economy – where the consequences are far reaching and herald an unprecedented series of challenges for North America – trailer manufacturers, component suppliers and the trucking industry at large are working overtime to ensure growth in 2021.
60 GLOBAL OEM RANKING LIST
48 HENDRICKSON
Suspension specialist, Hendrickson, provides the latest in ride technology with a patented system that eliminates the need for shock absorbers.
FEATURES
54 VDL WEWELER
Following the launch of its first hydrogen-powered refrigerated semi-trailer, CHEREAU is committing to the industrialisation of hydrogen on a large scale. The Netherlands-based OEM introduces its new modular bolton solution and revolutionary lightweight air suspension range.
In conversation with SAF-Holland’s CEO and President EMEA.
46 GORICA
58 KÄSSBOHRER
Dubai-based trailer manufacturer, GORICA, draws on its European supplier connections to produce world-renowned heavy duty tippers and specialised equipment.
REGULARS
64 EVENTS
04 EDITOR’S NOTE
66 MEGATRENDS
06 NEWS
67 PREVIEW
56 JOST
Quicke is the latest brand to join the JOST family and continues to break new ground in agricultural business.
44 SAF-HOLLAND
CIMC Vehicles
Aspöck Systems unveils its latest innovations in lighting taking road safety to the next level.
52 CHEREAU
The Wielton Group consistently pursues an international development strategy based on a unique multibrand business model.
David Li,
50 ASPÖCK SYSTEMS
Universal disruptors have drastically altered the trailer manufacturing status quo. Brace for a new world order – at least where productivity is concerned.
42 WIELTON
“THE CHANGING GLOBAL SITUATION IS CONSTANTLY AFFECTING CIMC VEHICLES’ PRODUCTION AND OPERATION MODELS IN OVERSEAS MARKETS. THE SINO-US TRADE WAR IN PARTICULAR, COUPLED WITH THE COVID-19 PANDEMIC, HAS BROUGHT A HEAVY BLOW TO THE GLOBAL ECONOMY AND FURTHER UNDERMINED THE RESUMPTION AND RECOVERY OF THE ECONOMY.”
The Covid-19 pandemic has presented an unexpected turn of events worldwide, prompting Kässbohrer to create fast, rational and efficient solutions.
48 W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 3
EDITOR’S NOTE
PUBLISHER
John Murphy john.murphy@primecreative.com.au
MANAGING EDITOR
Luke Applebee luke.applebee@primecreative.com.au
DESIGN PRODUCTION COORDINATOR Michelle Weston michelle.weston@primecreative.com.au
ART DIRECTOR Blake Storey
DESIGN
ODE TO PASSION DID YOU KNOW THAT THE Global OEM Ranking List is one of our most popular features? Every year, the editorial team sit down with management to reflect on the year gone by and that includes a detailed review of the content we produce for the magazine – both digital and in print. An important consideration for the editorial team is to follow trends, identify opportunities to help the market grow and essentially provide special reports that cover emerging international trailer and heavy vehicle componentry developments. The ranking list concept was initially realised in 2016 and has since become an annual fixture of the September edition of Global Trailer due to significant international interest. While crunching the numbers based on one question presented to more than 100 OEMs may sound like a simple task, it is not so straightforward. Data collection and speaking to the right people at the right time is only the beginning for this monumental endeavour. Along the way we encountered a series of challenges ranging from confidentiality to compliance to making sense of the information that was presented to us.
4 / G L O B A L TR A I L E R / I SS U E 5 4
Our attempt to rank trailer manufacturers in this context should therefore be treated as a guide in the interests of moving toward greater transparency. Through further engagement with manufacturers, suppliers and the transport and logistics sector at large, we aim to improve upon what has been established and continue to produce content that is accurate, timely and of great value to key decision makers around the world. In addition to our Global OEM Ranking List, this edition is actionpacked with a market report on the US that clearly shows the impressive might and solidarity of the North American trailer manufacturing scene. Despite the Covid-19 pandemic, a number of key industry players across the States are playing their part in keeping vital supply chains moving, supporting the economy in the process. Equally important, these trailer builders are doing their utmost to keep their employees, customers and the community safe. As you’ll soon see, this positive and sensible mindset is transforming business practices everywhere.
Kerry Pert, Madeline McCarty
INTERNATIONAL SALES
Ashley Blachford ashley.blachford@primecreative.com.au
CLIENT SUCCESS MANAGER
Justine Nardone justine.nardone@primecreative.com.au
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ARTICLES
All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format.
COPYRIGHT
Global Trailer is owned by Prime Creative Media and published by John Murphy. All material in Global Trailer is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material. While every effort has been made to ensure the accuracy of information, Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published. The opinions expressed in Global Trailer are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated.
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NEWS INTERNATIONAL ASIA CHINA The Toll China – Minhang team has been recognised for adding value to a client’s operations. Toll was awarded Johnson & Johnson’s (J&J) 2019 Best Supporting Supplier and Key Continuous Improvement Partner awards for continuous improvement of processes and maintaining an exemplary facility. Continuous improvement is a cornerstone of Toll’s global supply chain network. “We are pleased to share our knowledge and expertise with our customers and partners who are as passionate about continuous improvement as we are,” Toll said in a statement. Toll China – Minhang delivered three continuous improvement projects that reportedly brought significant savings to both Toll and J&J. “With a structured plan to reserve and relocate pallet positions, as well as an improved transportation plan to provide J&J’s goods faster and more efficiently, J&J was able to better respond to peak storage needs, improve quality assurance levels and achieve the continuous improvement targets set out for 2019,” said Toll. “The team achieved this without any major safety incidents. With that, the Toll team surpassed expectations and gained the recognition of our customer.” Toll Minhang Distribution Centre Operations Manager, Qiang Li, said the business is proud to be recognised for its work and and is also please that its initiatives delivered real value to J&J. “We look forward to working closer with our customer and delivering even better results in the year ahead,” he said. “Go team.” 6 / G L O B A L TR A I L E R / I SS U E 5 3
CHINA China-based technology conglomerate, Alibaba, has assembled a digital economy that encompasses commerce, finance, logistics and big data powered by cloud computing. Daniel Zhang, Chairman and CEO of Alibaba Group, said in a letter to shareholders on 9 July that the last six months have been an unprecedented test and there remains an intense global uncertainty due to the Covid-19 pandemic. Zhang said Covid-19 has forced Alibaba to re-evaluate its relationship with the global community and has catalysed the development of new digital
Alibaba Chairman and CEO, Daniel Zhang.
solutions (digitalisation) in life, work, education, business management and public services. Alibaba, according to Zhang, delivered on its strategic goal despite the pandemic and surpassed $1 trillion USD in Gross Merchandise Volume (GMV). “This was an important milestone for Alibaba, especially in the context of $6 trillion USD in total annual retail sales of consumer goods in China today. Our next goal is to serve more than one billion consumers in China and facilitate more than 10 trillion RMB of consumption on our platforms in the next five years as we continue on the path of globalisation.” Alibaba aims to serve two billion consumers globally, create 100 million jobs and provide the required infrastructure to support 10 million small businesses in the long term to become profitable by 2036. “We will continue to pursue our three strategic pillars of globalisation, China domestic consumption and big data powered by cloud computing,” said Zhang. “Globalisation is our long-term battle; Chinese domestic consumption is our cornerstone battle and big data powered by cloud computing is our battle for the future.” Alibaba has accelerated brand digitalisation in China with its recent app launches, including a mobile order and pay feature for Seattlebased coffee business, Starbucks Coffee Company. Both Alibaba and Starbucks partnered to transform the coffee industry in August 2018. Alibaba aims to build on its cloud- based technologies to streamline logistics and optimise
NEWS
ASIA supply chains. Zhang’s vision is to create value for society and help find solutions for society’s challenges. “We want to convert Alibaba’s resources into fuel for small and medium businesses, which will in turn support the advancement of the whole society,” he said. “We want our society to be better because of Alibaba’s contributions.” SINGAPORE Global supply chain business, CEVA Logistics, has been recognised for its excellence in all aspects of transportation
in Singapore. The award, ‘Best Transportation Company’, was presented at the 2020 LogiSYM Awards and underlines the relevance of CEVA Logistics’ turnaround and transformation plan, including revitalising business development, reducing costs and modernising industrial assets and systems. The relevance of this strategy has been further highlighted by the Covid-19 pandemic, during which CEVA and its teams have demonstrated their agility and service to the rest of the CMA CGM Group, a world leader in
shipping and logistics. “CEVA Logistics is honoured to receive the ‘Best Transportation Company’ award from LogiSYM,” said CEVA Logistics Regional Managing Director – South East Asia & Pacific Region, Elaine Low. “Amidst very challenging market conditions, this award is a great recognition of the hard work our teams have put in to support our customers, and of our creativity and agility to provide multi-modal options. “Logistics solutions play a major role in keeping our customers’ supply chains flowing,” she said.
NEWS INTERNATIONAL XXX MIDDLE EAST
Aramex partnership supports UAE Covid-19 response.
DUBAI Up to 2,000 patients across the United Arab Emirates (UAE) will receive necessary medical supplies on a daily basis according to Dubaibased logistics firm, Aramex. Aramex has partnered with Mubadala Healthcare, a unit of Mubadala, to distribute door-to-door critical medical supplies to patients across the UAE. Under the agreement, Aramex will collaborate with participating hospitals under Mubadala’s Healthcare portfolio including Imperial College London Diabetes Centre, Healthpoint and Cleveland Clinic Abu Dhabi for next day delivery of over-the-counter drugs, prescription-only medicines and nutritional feed to affected patients that are recovering outside of hospital facilities. Through the partnership, up to 2,000 patients across the UAE will receive the necessary medical supplies they need to recover which will help alleviate pressure on the healthcare 8 / G L O B A L TR A I L E R / I SS U E 5 3
system and ensure governmentmandated physical distancing protocols are respected. “We are honoured to be supporting the health authorities and Mubadala in our united fight against the novel coronavirus (Covid-19),” said Aramex Chief Commercial Officer, Anas Hijjawi. “It is necessary to have the operational scale and expertise to be able to handle such crucial deliveries in a safe, consistent and timely manner. “Aramex has deployed highly specialised vehicles that are quality assured and temperature-controlled to deliver critical medical supplies and the fleet is equipped with the technology and protective gear to be able to carry out the deliveries with utmost safety and care. “We would like to thank the Aramex team and other front liners for their unwavering dedication and commitment during these stressful times and wish all those who have been impacted a speedy recovery,”
he said. Hasan Jasem Al Nowais, Senior Vice President at Mubadala Healthcare, is pleased to join forces with Aramex to deliver medication to patients’ doorsteps. “This collaboration expands our efforts that aim to reinforce the Covid-19 response through innovative solutions and services. “As part of Mubadala’s #WeAreDedicated initiative, Mubadala Healthcare facilities are always looking for opportunities to ramp up their services to the community by making impactful partnerships with local entities and authorities to protect the safety of everyone and provide the highest standards of patient and caregiver care.” DUBAI Cargo handling company, DP World, has completed its acquisition of TIS Container Terminal in the Port of Yuzhny, Ukraine. DP World now has a 51 per cent stake in the business, following satisfaction of specific conditions including confirmation of regulatory approval from the relevant government authorities. This project will be DP World’s second partnership with TIS shareholders, the first being its partnership in the P&O Maritime Ukraine which provides harbour towage services in the principal Black Sea ports in the Ukraine. DP World’s global strategy is to become a trade enabler and solutions provider as the company looks to participate across a wider part of the supply chain. DP World has invested significantly across its Ports, Logistics & Maritime
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NEWS INTERNATIONAL MIDDLE EAST
DP World completes acquisition.
Services businesses. The aim is to connect directly with customers to offer logistics solutions and remove inefficiencies in the supply chain to accelerate trade. This acquisition will expand DP World’s operations as well as strengthen TIS Container Terminal as one of the key market leading purpose-built terminals in Ukraine by leveraging DP World’s global network of ports, economic zones, warehousing and inland logistics solutions. Also, this acquisition helps make Ukraine’s trade more resilient during challenging economic times and gives DP World the potential to offer a unique Black Sea product by linking its terminals in Constanta and Yarimca with TIS Container Terminal using its Unifeeder network. This suite of trade enabling solutions, coupled with its technology to remove inefficiencies in the supply chain, offers cargo owners the ability to deploy their cargo strategically across essential trade lanes that 10 / G L O B A L TR A I L E R / I SS U E 5 3
serve Eastern European markets and complement DP World’s existing portfolio in Romania and Turkey. The Ukrainian container market growth of over 20 per cent in 2019 is an attractive market to enter according to DP World. TIS Container Terminal with excellent maritime and landside connectivity including the market leading rail connectivity is a the ideal facility for DP World in the country. Following DP World’s acquisition of SeaRates. com, a digital platform that enables customers to transport cargo worldwide, along with LandRates. com and AirRates.com. DP World has also created the Digital Freight Alliance which is an online association that brings freight forwarders globally onto one platform, giving them access to new tools, routes and services, and enabling them to do more business anytime anywhere, which can be harmonised with DP World’s Ukraine footprint. Under the terms of agreement, DP
World has acquired a majority stake and will take control of the terminal operations going forward. DP World will be a key player in the region and will look to expand the catchment of the terminal using its market leading rail connectivity. DP World CEO and Group Chairman, Sultan Ahmed Bin Sulayem, said the acquisition ushers in a new and promising era to expand the company’s global portfolio in Ukraine. “We are excited about this important milestone and this acquisition supports our long-lasting commitment to enabling global trade,” he said. “This acquisition establishes DP World in a highly attractive market. We look forward to contributing our experience, expertise and resources to the continued development and growth of the TIS container terminal. In so doing, we will look to build on and expand the commercial success that TIS Container terminal has achieved.”
NEWS
EUROPE
DFDS Logistics Belgium expands operations.
partner to run our workshop and decided to use their experience, skills and focus to create a win-win solution for both partners,” said DFDS Logistics Belgium Managing Director, Luc Geysen. DFDS Logistics Belgium is focused on the development of its 4PL assetbased solutions. “With our extensive network consisting of rail and road services, terminals, vessels, and hub, together with a strong IT-backbone, we are able to offer custom made solutions to selected industries,” DFDS Logistics Belgium said in a statement.
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BELGIUM Supply chain business, DFDS Logistics Belgium, has partnered with an equipment specialist to strengthen its 4PL value proposition. DFDS Logistics, in Ghent, Belgium, will outsource its truck and trailer
repairs and maintenance workshop to Global & Local Enterprises. “Thank you to Luc Geysen for making this longterm partnership happen in an efficient and timely manner,” said Global & Local Enterprises Chairman, Joop Roijakkers. “The workshops are our first strategic priority. “Our goal is to expand and have our operations close to major European transport hubs. I am very happy to further execute on our outsourcing concept, this time at the Ghent harbour in Belgium with DFDS,” he said. “We were looking for a reliable
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NEWS INTERNATIONAL EUROPE
Reich doubles efficiency with Schmitz Cargobull EcoDuo.
GERMANY Philip Reich, owner of transport company, Reich, has taken delivery of two new vehicles at the Schmitz Cargobull factory in Altenberge. Reich now owns two Schmitz Cargobull curtainsiders equipped with Power Curtains. These trailers can be configured into an EcoDuo combination by being connected to a dolly and pulled by a prime mover or tractor unit. Reich will use this combination in Finland, in cooperation with Logistics Oy, to to deliver transport jobs. Schmitz Cargobull CEO, Andreas Schmitz, and Sales Manager, Benjamin Bröderdörp, attended the handover ceremony. “We opted for the EcoDuo combination because we generally have one route of approx. 600 kilometres in Finland and it has just one unloading point,” said Philip Reich. “On the outward journey, we deliver various machine components for the vehicle industry and the return journey transports timber. “To do this, we need a flexible vehicle combination with a large loading volume,” he said. “And our customers 12 / G L O B A L TR A I L E R / I SS U E 5 3
are impressed by this concept, too.” Each of the vehicles are equipped with an underfloor coupling at the rear for accommodating the dolly. The robust chassis features an offset wheelbase in combination with a Schmitz Cargobull steering axle and 385/55 R 22.5 Schmitz Cargobull tyres. The Power Curtain includes a lath-free structure and features an anti-theft mesh tarpaulin as standard. In Germany, two semi-trailer tractor units take the trailers to the ferry; after the ferry arrives in Finland, the two trailers are then connected via a dolly and the combination hits the road – pulled by just one semi-trailer tractor unit. The total tractor-trailer weight of the tractor and the first trailer remains unchanged at 40 tonnes; the weight of the second trailer can reach 36 tonnes to comply with current Scandinavian regulations. “So far, we have been able to deliver around 100 combinations of this vehicle concept to Scandinavia and Spain,” said Andreas Schmitz. “In the long term, we regard the EcoDuo as an environmentally and economically efficient transport
solution on suitable main routes across Europe,” he said. Standard legal principles and suitably prepared infrastructure are basic requirements for a cross-border, Europe-wide solution. Furthermore, there must also be an option to uncouple the vehicles again on defined roads and spread between two tractor units. “Depending on the enforceability of the requirements, I can imagine that the use of this vehicle combination will work really well on marked routes, particularly in Germany,” said Philip Reich. “It also makes sense when it comes to ecological criteria as we can do without one of the tractor units on certain routes. “Another major advantage of the EcoDuo combination compared to long HGVs is that I can use standard tractor units and trailers, which I can then use for other purposes in normal day-to-day business,” he said. For transport jobs in Finland, according to Schmitz Cargobull, drivers of this vehicle combination receive special comprehensive training, similar to courses for driving long HGVs.
NEWS INTERNATIONAL EUROPE GERMANY Equipment specialist, SAF-Holland SE, has confirmed the outcome of a commercial register with the local court of Aschaffenburg. SAF-Holland has completed the transfer of its registered office from Luxembourg to Bessenbach. As a result, the revised version of the articles of association passed by resolution of the extraordinary general meeting of 20 May 2020 also come into force. According to the revised version of the articles of association, the organisational structure of the Company is based on the dualistic board system comprising the Management Board as the management body and the Supervisory Board as the supervisory body, along with the Annual General Meeting. In addition, due to the revised version of the articles of association, the shares of SAFHolland SE were converted from nominal value shares to no-par value shares. The Management Board of SAFHolland SE will initially consist of Alexander Geis (Chairman of the Management Board and provisional CFO) and Dr André Philipp (Member of the Management Board and Chief Operating Officer). Inka Koljonen will take over the position of the Chief Financial Officer on 1 September 2020. The Supervisory Board of SAFHolland SE comprises the former members of the Board of Directors, Ingrid Jägering, Dr Martin Kleinschmitt, Martina Merz and Carsten Reinhardt. The Deputy Chairman of the Management Board of Webasto SE, Matthias Arleth, has been appointed to the Supervisory Board as a new appointee. The 14 / G L O B A L TR A I L E R / I SS U E 5 3
members of the Supervisory Board are elected for four years. “By transferring our registered office to Germany we have reached another important milestone in the corporate development of SAFHolland SE,” said SAF-Holland Chair of the Board, Alexander Geis. “Thereafter we will concentrate on simplifying the legal structure of the Group.” As a result of the resolved capital increase from Company funds, the company’s share capital now amounts to €45,394,302.00 and is divided into 45,394,302 no-par value shares. The articles of association authorise the Management Board, with the approval of the Supervisory Board, to increase the share capital by a total of up to 50 per cent until May 2025. New shares must generally be offered to the shareholders of the Company for subscription. However, the Management Board is under certain circumstances authorised, with the approval from the Supervisory Board, to exclude the subscription rights of the shareholders. The shares of SAF-Holland SE will continue to be traded solely on the Frankfurt Stock Exchange. They will be listed under the ISIN DE000SAFH001 and WKN SAFH00. The first threshold triggering a mandatory notification of voting rights has been set at 3.0 per cent for the future. GERMANY Founder and shareholder of Transporter Industry International Group (TII Group), Otto Rettenmaier passed away on 23 July. The multi-award-winning
TII Group founder, OttoRettenmaier.
industrialist, holder of the Federal Cross of Merit First Class of Germany, Senator e. h. of the University of Stuttgart-Hohenheim and patron of the arts, laid the foundation of the industry leading TII Group with the purchase of SCHEUERLE Fahrzeugfabrik, NICOLAS Industrie and KAMAG Transporttechnik and the founding of TII India. Rettenmaier arranged the company succession and his legacy early on: all company shares are owned by the family. Together with the family holding company, experienced, externally staffed managing directors lead the group of companies since many years. With the farsightedness of the experienced entrepreneur, Otto Rettenmaier (*28th July 1926) from Heilbronn, Germany, took over SCHEUERLE, Pfedelbach (1988), the specialist for heavy-duty and industrial vehicles, which was already operating internationally at that time, quote: “out of technical
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XXX EUROPE fascination” and thus laid the foundation for the TII Group. With the further takeovers of NICOLAS, Auxerre/France (1995) and KAMAG, Ulm (2004) - and the Indian subsidiary TII India, founded in 1995 - he developed his heavy-duty transporter division into the world market leader in its segment for heavy-duty vehicles with a payload of over 100 tonnes. Otto Rettenmaier put the group of companies on a solid foundation with special vehicles for industrial applications, heavy-duty trailers for the road and vehicles for logistics applications. Many records were set with vehicles from the TII Group.
The current world record is 17,500 tonnes transport weight. SWITZERLAND Global transport and logistics company, Kuehne + Nagel, has reportedly achieved a good result for the first half of 2020 amid Covid-19 pandemic and global lockdown. The company clarified that market share gains and the cost savings initiated by the group has had a positive impact. Net turnover for the first half-year was 9.8 billion CHF and EBIT was 419 million CHF. Currency fluctuations had a significant
negative impact on both net turnover (-5.9 per cent) and EBIT (-5.3 per cent) in the first half-year. Free cash flow increased by 5.5 per cent relative to the prior year. “The crisis triggered by the coronavirus pandemic, which led to a lockdown in most countries, had profound and sudden negative impacts on international trade,” said Kuehne + Nagel International CEO, Dr Detlef Trefzger. “We took the right measures early on and successfully managed Kuehne + Nagel under these difficult conditions. We expect the second half of the year to continue to be marked by major
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NEWS INTERNATIONAL EUROPE In contract logistics, the significant reduction in demand in the second quarter of 2020 was mitigated by stringent cost management. Essential goods and e-commerce, which now account for around half of the contract logistics portfolio, recorded significantly higher demand. Securing operations, even during the lockdown, resulted in market share gains. The business unit’s net turnover declined to 1.1 billion CHF and EBIT to 28 million CHF in the second quarter of 2020.
Kuehne + Nagel International CEO, Dr Detlef Trefzger.
uncertainties, for which Kuehne + Nagel is well prepared thanks to its agile structure, rigorous cost management and high-quality service offerings,” he said. “The strategic course we have set at Kuehne + Nagel in recent years is also having a positive effect in the midst of the coronavirus crisis,” said Dr Joerg Wolle, Chairman of the Board of Directors of Kuehne + Nagel International. “The company has been consistently digitalised and thus remained fully operational throughout the crisis. “The successful performance in the second quarter is owed to the good market position of Kuehne + Nagel and the recovery of the Asian 16 / G L O B A L TR A I L E R / I SS U E 5 3
markets. The good work during these past months underlines today’s high level of resilience of Kuehne + Nagel,” he said. The months of April and May 2020 were reportedly characterised by a significant decline in road logistics order volume. Demand increased in June. In particular, the demand for domestic European transport has broadly improved to pre-crisis levels. In North America, demand for all product segments – with the exception of pharma and e-commerce – was significantly lower than in the previous year. The business unit’s net turnover declined to 721 million CHF in the second quarter of 2020 and EBIT was down to 9 million CHF.
SWITZERLAND New International Road Transport Union (IRU) research shows that more than 3.5 million road transport operators globally are facing unprecedented financial losses this year. This outcome is a result of transport restrictions and the overall economic downturn caused by the Covid-19 pandemic. Goods transport companies globally expect an average 18 per cent decline in turnover in 2020, totalling€551 billion. The sector is significantly impacted in the Middle East and North Africa (-22 per cent) and Asia (-21 per cent); Europe is down €64 billion (-17 per cent). Companies in Argentina, China and Iran face more than 30 per cent decline. This is an estimated impact on road freight turnover in FY2020 as of April 2020 based on IRU member countries. Both goods and passenger transport companies reported that more restrictions were put in place than facilitation measures during peak confinement periods, further impacting
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EUROPE the industry. “Road transport services are fundamental to economies and communities everywhere,” said IRU Secretary General, Umberto de Pretto. “These new findings are alarming. Every single road transport operator that goes bankrupt will impact the movement of people and goods.” IRU has published a 10 point recovery plan, with financial and non-financial measures for governments and banks, to support struggling road transport operators, ease the movement of people and goods, and drive global recovery, but very little, and in some
cases nothing, has happened since. “We have seen many governments adjust regulations and announce recovery packages, but the detail for road transport operators is generally vague,” said de Pretto. “Our research points to the immediate need for measures targeted to the industry that match the scale of the current situation,” he said. Even at the peak of the crisis, road transport remained flexible, operational and continued to play its unique role. Now, global recovery efforts are endangered without clear government action to support road transport operators.”
GERMANY German airfreight specialist, Georgi, has recently taken delivery of two custom trailers from Van Eck. Georgi Fleet Manager, Hubert Hohl, said Van Eck supply trailers with an internal loading height of more than three metres and also carry out orders precisely “which is very evident with these trailers, which are equipped with numerous facilities to simplify and speed up loading and unloading”. The latest trailers from Van Eck feature sliding rooftops and the capability to raise the entire roof 60 centimetres over its full length. Also, the side walls at the rear can be
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NEWS INTERNATIONAL XXX EUROPE
Van Eck keeps Georgi moving.
shifted outwards to accommodate tall and wide machinery. Six roller conveyors have also been concealed in the loading floor of the trailers – the drive for these has been installed centrally under the loading floor. Immediately after delivery, the first of these two trailers left for Amsterdam – the Schiphol branch of Georgi to load a machine. Georgi also has branches in the Czech Republic and Poland, as well as directly at Frankfurt and Leipzig airports. Van Eck has been supplying Georgi with trailers since the mid-1980s. “We have seen the company grow further and further because it has always opted for the most efficient equipment,” said Hans van Eck. 18 / G L O B A L TR A I L E R / I SS U E 5 3
Georgi has a fleet of 400 tractor units and 470 trailers. “It is also striking that Georgi is one of the few German haulers that has a number of LHVs working on a structural basis for several customers,” Van Eck said in a statement. “In addition to air freight, Georgi also specialises in pharma transport, dangerous goods, conditioned transport, machine transport and the transport of highquality cargo.” UK Elddis Transport has taken delivery of new SDC Freespan curtainsiders to bolster its general haulage operations. The trailers, according to the OEM, provides a 3.2m side aperture for
loading and feature SDC’s low friction alloy curtain rail with smooth operation, a combination which is well suited to Elddis’ requirements for transporting full and partial loads throughout the UK and Ireland. “At Elddis, we are continually striving to enhance the efficiency of our operations so that we can offer the best possible service to our customers,” said Elddis Managing Director, Nigel Cook. “Reliable equipment is extremely important for our day to day deliveries and I am pleased with the quality build and high specification on our new curtainsiders from SDC which will strengthen our service in the demanding FMCG market. The trailers are built to EN 12642 XL standard and we have added various
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EUROPE extras to enhance loading and safety during use,” he said. The Freespan trailers were manufactured at SDC’s Mansfield facility in Nottinghamshire which recently completed a major upgrade with the addition of a new state of the art trailer assembly line. SDC acquired a second workshop next to its current factory which has doubled the OEM’s bodied trailer capacity and has also added workshop bays for aftermarket repair and refurbishment services. UK Distribution service provider, PRM
Group, recently specified two new 26-pallet multi-temperature trailers – one featuring 30th anniversary livery – from UK-based OEM, Gray & Adams. For over 30 years PRM Group has worked with over 35 leading brands providing a route to the retail market, wholesale and foods service sectors along with third party logistics throughout UK and Ireland. The brief to Gray & Adams was for a safe, efficient, sustainable design to add further impact and value to PRM Group’s trailer fleet as part of a drive for continuous improvement. Although the trailers have a similar
specification to others in the PRM fleet, they now include a range of environmentally friendly features to enable a reduced carbon footprint and enhanced safety. This includes the new Carrier Transicold Vector HE 19 multi temperature refrigeration unit, with a quieter, more efficient engine and an aerodynamics package including a vortex generator on the roof to further improve aerodynamic performance. As the new Vector HE 19 unit is noticeably quieter in operation – 3 dB(A), or around 50 per cent, quieter than the previous generation
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PRM chooses Gray & Adams for 30th anniversary trailers.
Vector 1950 – PRM can deliver at night in urban areas with a muchreduced chance of disturbing the local communities they operate in. It also features a sliding interior bulkhead door, indicating side marker lights for enhanced safety, additional lights at the rear for greater visibility and a high quality GRP interior finish for easier cleaning. The relationship, dating more than 36 years between PRM Group owner and Managing Director, Philip Morrow, and Gray & Adams, is built upon trust as businesses which share strong family values. “PRM have always invested in innovation, ensuring we continually improve our fleet with new and more sustainable solutions,” said Morrow. “We wanted a prestigious, high quality trailer for our 30th Anniversary and we turned to Gray & Adams, as they are a partner we trust. “We’re focused on deploying more environmentally friendly solutions across our fleet and look forward to working with the team at Gray & Adams (Ireland) on further innovations in the future,” he said. 20 / G L O B A L TR A I L E R / I SS U E 5 3
Morrow added that the new Vector HE 19 trailer refrigeration unit is playing a big part in improving PRM Group’s fleet efficiency and sustainability, primarily due to delivering huge fuel savings compared to previous units. “When you add in how quiet they are, it’s fair to say we are extremely impressed with their performance,” he said. Gray & Adams, according to Morrow, have always delivered high quality, high performance products. “We have maintained and upgraded our trailers over the years with excellent aftersales repair, maintenance and support from Gray & Adams,” he said. “From design to manufacture, they provide industry leading customer service, responsive and are ready to support us, helping to minimise downtime and going the extra mile. The added value is that they know us and they make our business, their business.” UK Wholesale supplier, P&B Foods, has taken delivery of its first urban
curtainsider from Tiger Trailers to improve the safety and efficiency of its operations. Founded in 1967, P&B Foods of Bradford, West Yorkshire, produces its own brands Balah, Heera, Parivaar and Rishta, and also acts as agents and distributors in the South Asian, Caribbean and Chinese markets for popular food brands including sauces from Amoy and Nando’s, Filippo Berio Olive Oils, Pataks, Rubicon drinks and Tilda. P&B Foods has a packing and warehouse facility with around 120 sales and warehouse staff as well as its own transport fleet to maximise efficient delivery to its widespread customer base. The company’s fleet has now welcomed its first Tiger Trailers asset, a tandem axle urban curtainsider trailer providing a flexible solution for work in restricted spaces such as cities, towns and rural areas thanks to its shorter dimensions of 10.7m in length and 4m in height, along with a rear-steer axle aiding manoeuvrability, and a 2-tonne Anteo sliding tail-lift with a 1.6m platform and wanderlead system. It also features a pillarless clearspan roof providing increased light levels inside. “We’re very pleased indeed with our new curtainsider from Tiger Trailers,” said Lee Wolowiec of P&B Foods. “The way their team listened to our requirements and worked hard at all stages to deliver a high-quality finished product impressed us and instils confidence. Their genuine enthusiasm shone through during the handover, too. We look forward to the trailer serving a valued place on our fleet,” he said. Designed to meet P&B Foods’ 20-pallet operational requirements,
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EUROPE the EN12642XL-rated trailer has been engineered with safety in mind. Flashing LED marker lights illuminate when the trailer’s tail-lift is in the down position, helping to keep operatives and pedestrians safer. Environmental LEDs were fitted adjacent to the landing legs, facing down at 45 degrees towards the rear to improve visibility when the trailer is reversing. Additionally, safety meets style through the inclusion of rear LED light clusters with progressive animated or ‘sweeping’ indicators as seen on many of the latest cars from manufacturers including Audi, Ford and Volkswagen, which are easier to identity in poor weather and low light conditions. “Thanks to everyone involved at P&B Foods,” said P&B Foods Technical Sales Manager, Thomas Stott. “It has been a pleasure designing and engineering this new fleet addition. Finished in Scania Chilli Red, P&B Foods’ new customised urban curtainsider from Tiger Trailers is distinctive and we would be delighted to provide additional solutions over the coming months and years,” he said. Urban curtainsider trailers, according to Tiger Trailers, represent a hybrid solution encompassing the respective strengths of rigid trucks and fulllength curtainsider trailers, providing transport operators with greater flexibility through highly manoeuvrable vehicles. They can be fitted with fork-truck or tail-lift rears and can be customised with a range of different load restraint options. POLAND The Wielton Group has implemented additional frame structure reinforcement in its super light tipping
trailers to increase vehicle stability when unloading during difficult conditions. The Polish OEM supplies a variety of SL tippers – featuring low empty weight, solid structure, high quality workmanship – which are suited for the construction, municipal and agricultural sectors. Wielton has added to its massoptimised self-unloading trailer portfolio with five types of frames (SL, SL HD, GS, M3, M1), four of which are available to the domestic market. “At Wielton, we constantly monitor trends in the industry and we are open to the needs of our clients,” Paweł Madziara, Head of Product Management Wielton SA. “We are a partner who understands the transport business, is able to listen and provides the best solutions, tailored to customer requirements. The recently observed trend by us is customer orientation to increase the efficiency of the tonne-kilometre. For this reason, we are improving our range of super light tippers, which are mainly used in the construction sector. Low empty weight while maintaining a durable structure and comfort of use characterise our products, which are very popular. Our SL tipping trailers are used in particular in difficult conditions.” In addition to frame structure reinforcement in its super light tippers, Wielton has introduced a cylinder with a four-point ShortCover attachment as standard for its longest tippers. The stability of the box in relation to the frame was therefore increased, with a slight increase in weight. The applied solutions, according to the OEM, improve the stability of the tippers when in operation and also improve safety for
the driver. These safety benefits have been validated via research in the product development process which included numerical analyses using the Finite Element Method (FEM) and analogous static stability tests on a test stand with a ramp. The tests, Wielton said, were carried out in compliance with stringent requirements set by the Institute of Road Transport Engineers (IRTE) in the highest category for the stability of self-dumping trucks. The reports from the analyses performed confirm compliance with IRTE requirements for the vehicle side tilt angle of seven degrees which reportedly proves to be the highest for vehicle stability. The results also confirmed the improvement of stability and reliability on structure by ~10 per cent depending on the adopted evaluation criteria. “The safety and comfort of using our products are our priority,” said Wielton Product Manager, Łukasz Trzeciakiewicz. “For this reason, we are constantly improving our vehicles. “There are many solutions on the market to improve the stability of super light tipping trailers. “In Wielton brand products, we focused on proven solutions and, as a result, we increased the resistance to longitudinal torsion of the frame during lateral tilt. Unloading over rough terrain is one of the most dangerous manoeuvres when working with tippers. We make every effort to minimise the risk of tipping. What is more, the introduced changes and their impact on the improvement of safety are thoroughly examined and analysed to make sure that we have achieved the desired results.”
NEWS INTERNATIONAL EUROPE Newly appointed Chair of the Nooteboom Supervisory Board, Ron Deelen.
NETHERLANDS Henk Riemens, Chair of the Supervisory Board of Nooteboom Trailers, is retiring after 21 years of service. Riemens served the last 13 years of his career at Nooteboom as Chair. Ron Deelen is set to succeed Riemens and brings automotive general management expertise to the business along with strategic, commercial and organisational experience. Deelen began his career at DAF Trucks, then Nedschroef after which he held board positions at various large industrial companies. He is currently CEO of British Steel. The three-headed Supervisory Board of Nooteboom Trailers also includes Maurice Geraets (director of NXP semiconductors) and Frans Maarse (CEO Van Bilsen Group). The knowledge and experience of the Supervisory Board members, according to the OEM, provides important support for the successful implementation of the strategy that Nooteboom has outlined for the coming years. Product innovation, new production techniques, 22 / G L O B A L TR A I L E R / I SS U E 5 3
digitisation and strengthening business operations play an important role in this. “We thank Henk Riemens for his great contribution to Nooteboom Trailers and look forward to working with Ron Deelen as chairman of the Supervisory Board,” said Nooteboom General Manager, Marinka Nooteboom. NETHERLANDS Logistics firm, Idealogistic Verhoeven, has expanded its fleet with a batch order of Talson TGM Secure Box trailers. The company specialises in the transport of high value goods which demands the utmost in terms of safety and reliability. Idealogistic Verhoeven has a fleet of approximately 200 trailers, all of which are maintained in-house to ensure that the high-value cargo reaches its customers in a safe and timely manner. The company also has more than one hundred towing units as well as offices in eight different European countries. It services the East-West trade lane of central Europe.
The delivery of 10 new Talson TGM Secure Box trailers is a strong indication that Idealogistic Verhoeven is performing well. Operations Manager, Louis Bardoel, estimates that 90 per cent of the company’s trailer fleet comprises Talson trailers. “Talson offers the most robust, strong and reliable trailer,” he said. “What counts for us is that thanks to the possibility of a double loading floor, we can take much more with us. This greatly benefits the efficiency of our work. Even when we work with a double loading floor, we never run into problems with permitted weights. With Talson, Idealogistic Verhoeven has noted that the trailers last a long time. “How long exactly can’t be indicated, but 10 to 12 years for sure,” said Bardoel. The trailers used by Idealogistic Verhoeven cover 130,000 to 230,000 kilometres a year, depending on whether they are single or double crews in the truck. For the past 10 years Idealogistic has held the highest possible TAPA certificate. It also holds the TSR-I certificate as well as the FSR-A certificate for its buildings, where the company also manages storage for its customers. “It is an ongoing reassurance for our customers when they receive confirmation from independent parties that their logistics service provider meets the highest achievable requirements, both at our storage facilities and on the road,” said Bardoel. “Talson is for us an indispensable factor in our logistics operation. One we can always rely on.”
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Hendrickson Trailer North America / South America 2070 Industrial Place SE Canton, OH 44707-2641 USA +1.866.743.3247 +1.330.489.0045 Fax +1.800.696.4416
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NEWS INTERNATIONAL NORTH AMERICA US Pressure Systems International (P.S.I.) recently recognised six trailer manufacturers for the role each played in 2019 to increase the number of trailers outfitted with the Meritor Tyre Inflation System (MTIS). P.S.I. designated two types of awards to be presented this year: The Momentum Award given to those trailer manufacturers who have achieved the largest year-over-year gain in MTIS new trailer installations and the Excellence Award recognising the companies that have the highest penetration of MTIS use for the trailers they manufacture. The winners of 2019 are: Great Dane – Momentum Award; Kentucky Trailer – Excellence Award; Landoll – Momentum Award; Stoughton Trailers – Excellence Award; Strick Trailers – Momentum Award; and Wabash National – Excellence Award. Adapting to the current challenges, awards were presented using video meetings with as many as ten various participants. During the online meetings, P.S.I. representatives recognised the commitment and contributions each trailer OE has made in promoting technology that enhances customer satisfaction, and further growing MTIS’ premier position in the industry as the most popular automatic tire inflation system. “Innovative and focused companies don’t let these unprecedented times be an excuse not to move forward and get things done,” said P.S.I. Vice President Global Sales and Marketing, Jim Sharkey. “In years past, P.S.I. has presented these awards during the annual Truck Trailer Manufacturers Association 24 / G L O B A L TR A I L E R / I SS U E 5 3
(TTMA) meeting,” he said. “Even though TTMA has been cancelled for 2020, it was still important for us to recognise those trailer manufacturers who play such a large part in our success.” US Intermodal chassis specialist, CIE Manufacturing (CIEM), has announced two major appointments as part of its continued expansion into North American production. Eugene Slusiewicz has been hired for the position of Strategic Sourcing Manager. Slusiewicz has over 30 years of demonstrated leadership experience in international supply chain management, project and program management and operational efficiency systems within the automotive manufacturing industry. Slusiewicz joins CIEM most recently from Karma Automotive LLC where he was Senior Purchasing Manager developing and managing sourcing strategies for ultra-luxury hybrid EV cars of the future. “His impressive history of vision, innovation and team-building strategies will be invaluable to his new duties of the management, administration and supervision of CIE Manufacturing’s newly redesigned supply chain programs,” CIEM said in a statement. Doyle Wortham III has been appointed the position of Manufacturing Engineering Manager. Wortham has over 30 years of experience in systems administration, precision manufacturing, design engineering, production design, and product development. He joins CIEM most recently from Amsted Seals and Forming where he was Senior
Design Engineer in charge of design, design break down, structural analysis testing and reverse engineering of integrated systems for rail and automotive. “His extensive knowledge of best engineering procedures and practices and commitment to excellent product quality, design and performance will ensure the success of CIEM’s new production processes,” said CIEM. CIEM President and CEO, Frank Sonzala, said the business is fortunate to add Slusiewicz and Wortham to the team. “They bring over 60 years of engineering expertise and each have amazing manufacturing accomplishments,” he said. “In fact, on July 1, 2020, they both participated in their first ‘Six to Sixty’ company-wide growth initiative meeting and then joined in a twohour Engineering Systems Overview & Production Flow conference. “I was amazed at what powers they both bring to the table. This is a very exciting time for CIE Manufacturing and the fact that we are hiring, investing in America and making great choices in exceptional personnel gives us reason to celebrate the beginning of the 3rd Quarter 2020. Doyle and Gene will contribute to our advancement of quality, delivery, technical support and overall manufacturing efficiency.” US State officials in California have pushed for an extraordinary increase of lithium battery-powered trucks on its roads under a scheme to achieve carbon neutrality by 2045. Under the proposed plan some 100,000 ‘zero-emission trucks’
NEWS INTERNATIONAL NORTH AMERICA would be produced by 2030 after the California Air Resources Board (CARB) unanimously voted to approve new rules under climate strategies to reduce emissions pushed by clean-air advocates. Known as the Advanced Clean Trucks rule, the new regulation applies specifically to medium and heavy duty trucks larger than 8.5 tonnes and aims at reducing 59,000 tonnes of nitrogen oxide by 2040. According to CARB, trucks account for 70 per cent of pollution associated with causing smog and 80 per cent of
California commits to carbon-neutral future.
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carcinogenic diesel soot in California, the two culprits identified as factors in the deteriorating air quality of a state with nearly 40 million people. The current government will phase in the quotas by 2035 as a further 200,000 electric-powered heavy vehicles are injected onto the state’s supply chain by then. All short-haul drayage vehicles in ports and rail yards must also be deemed zero-emission by 2035 with diesel powered last-mile delivery trucks and vans outlawed by 2040. The first of these landmark sales
requirements will go into effect as early as 2024 effectively bringing a close to the era of the diesel engine in the state. California has long wanted to be the standard-bearer for tighter vehicle emissions regulations and its Governor, Gavin Newsom, applauded the announcement. “Even in the midst of a global pandemic, climate change is still an existential threat — both to our way of life and our children’s health,” he said in an online statement. “Communities and children of colour
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NEWS INTERNATIONAL NORTH AMERICA are often forced to breathe our most polluted air, and today’s vote moves us closer toward a healthier future for all of our kids.” Newsom, however, has recently had to contend with the unpopular impacts of pandemic lockdown measures on battery-powered transport manufacturing after Tesla announced it was going to move its production facility from California to Texas. The battery tech vehicle company, which earlier this year launched a low emissions Cyber Truck, announced it was seeking a new home for its factory in response to draconian coronavirus restrictions placed on industry by Newsom under Californian executive order.
P.S.I. awards top trailer manufacturers.
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The move could cost the state 10,000 jobs. Meanwhile, CARB member, Dan Sperling, spoke of revolution and being on ‘the side of history’ when discussing the new regulation, a first for the country. “Diesel vehicles are the workhorses of the economy, and we need them to be part of the solution to persistent pockets of dirty air in some of our most disadvantaged communities,” said CARB Chair, Mary Nichols, in a release. “Now is the time – the technology is here and so is the need for investment.” It is not yet known what criteria applies to the making and sourcing of materials for commercial vehicles deemed zero emissions.
The City of Fremantle in Western Australia is now exploring policies to drastically reduce diesel pollution around Fremantle Harbour, following strict regulations introduced at the Port of Los Angeles in Long Beach, California, where a number of electric trucks and hydrogen powered heavy vehicles are currently involved in pilot programs. In December 2019, CARB suspended its enforcement of the California GHG trailer standards for a period of two years (2020-2021) following uncertainty presented by multiple circumstances. US Frederick Smith, FedEx Corporation Chairman and CEO, is proud of
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NORTH AMERICA the herculean efforts of FedEx team members who provided essential transportation worldwide and delivered peak-level volumes in the US. His comments follow a review of 2019 Q4 performance which was impacted by the Covid-19 pandemic. According to consolidated results for the fourth quarter ended 31 May, adjusted revenue was $17.4 billion USD (FY2019: $17.8 billion USD), adjusted operating income was $475 million USD (FY2019: $1.72 billion USD) and an adjusted net (loss) income of $663 million USD (FY2019: $1.32 billion USD). Smith said FedEx is well positioned to support and benefit from the reopening of the global economy as a result of strategic investments in enhance capabilities and efficiencies. Covid-19 affected all revenue and expense line items during the quarter. “While commercial volumes were down significantly due to business closures across the globe, there were surges in residential deliveries at FedEx Ground and in transpacific and charter flights at FedEx Express, which required incremental costs to serve,” FedEx said in a statement. “The company also incurred an approximate $125 million [USD] increase in operating costs related to personal protective equipment and medical/safety supplies, as well as additional security and cleaning services to protect our team members and ensure we are safely providing essential services for our customers. “Additionally, operating results were negatively affected by one fewer operating weekday, increased costs to expand services, higher bad debt expense, increased self-insurance accruals and the loss of business from a large customer. These factors
were partially offset by the strong residential delivery volume growth at FedEx Ground, increased revenue per shipment at FedEx Freight, a favourable net impact of fuel and lower variable incentive compensation expenses. “Fourth quarter results include goodwill and other asset impairments of approximately $370 million [USD], primarily related to goodwill impairment at FedEx Office. The Covid-19 pandemic resulted in temporary store closures and declining print revenue at FedEx Office during the fourth quarter and is expected to continue to negatively impact its near-term operating performance. The quarter’s results also include a pre-tax non-cash mark-to-market (MTM) retirement plan accounting adjustment of a net $794 million [USD] loss. The negative impact from a 64 basis point decrease in the discount rate more than offset the benefit from stronger than expected asset returns. “Net income includes a tax benefit of $71 million related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provision which allows tax losses to be offset against income from prior years that was taxed at higher rates. This benefit was mostly offset by a non-cash tax expense of $51 million [USD] due to a change in deferred tax balances related to foreign operations.” FedEx has also reported consolidated results for the FY2020. Adjusted revenue was $69.2 billion USD (FY2019: $69.7 billion USD), adjusted operating income was $3.12 billion USD (FY2019: $5.22 billion USD) and an adjusted net income of $2.49 billion USD (FY2019: $4.13 billion USD).
FedEx said it will continue to manage network capacity, making adjustments as needed to align with volumes and operating conditions. The company will also remain focused on last-mile optimisation, including the continued rollout of the FedEx Express initiative to utilise FedEx Ground for the transport and delivery of select day-definite FedEx Express residential packages within the US FedEx Ground will complete the integration of FedEx SmartPost packages into standard FedEx Ground operations by peak season. TNT Express integration expenses are reportedly estimated to total approximately $1.7 billion USD through the completion of the physical network integration in fiscal 2022, of which $175 million USD is expected to be incurred this fiscal year. Capital expenditures for fiscal 2021 are targeted to be approximately $4.9 billion USD, a $1 billion USD yearover-year decline, due primarily to reduced vehicle replacement spending and delayed facility investments. The company does not anticipate making contributions to its tax-qualified US domestic pension plans during fiscal 2021, following voluntary contributions of $1 billion USD during each of the last two fiscal years. “We have reduced our planned capital spending where possible and have taken actions to mitigate the impact of the pandemic,” said FedEx Executive President and Chief Financial Officer, Alan Graf.“While the near-term outlook is unclear, we expect to benefit from the global recovery as we leverage the strength of our unmatched air network and US residential capabilities, our yield management efforts and multiple initiatives to improve our financial performance,” he said. W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 2 9
NEWS INTERNATIONAL OCEANIA AUSTRALIA Perth-based Agtech start-up, Farmsave, has been acquired by a Google-backed San Francisco ‘unicorn’ company. Farmsave, which enables farmers to purchase farm chemicals at competitive rates, has been bought out by Farmers Business Network (FBN). Farmsave was co-founded seven years ago by Dirk Butter has since amassed a network of 5,000 farmers in Australia. FBN is a member-based network of 11,500 farmers in the US and Farmsave’s 5,000 farmers will join this network. According to Butter, the acquisition by FBN would merge Farmsave’s network into a global operation. “The industry was very lacking in transparency,” said Butter. “The old model relies on retail stores where there’s a lot of price discrepancy, with growers paying vastly different prices. “You have small to medium-sized growers who would pay 10 to 20 per cent more for the exact same chemical and the same branded product. “That’s what we wanted to shed a light on,” he said. FBN, according to Butter, treats growers similarly with transparent pricing and digital tech offerings to analyse their paddocks, helping growers to benchmark and ultimately increase their return on investment. “Farmsave’s focus on transparent pricing and putting the power of choice in the hands of farmers aligns perfectly with our values,” said FBN CEO and co-founder, Amol Deshpande. 3 0 / G L O B A L TR A I L E R / I SS U E 5 3
“Together FBN and Farmsave can bring badly needed competition to Australia and help farmers level the playing field in this vital market,” he said. Farmsave’s team of five will be the first FBN employees in Australia. AUSTRALIA The Federal Government of Australia supports the release of the Joint Cyber Security Advisory by the US, UK and Canada. This strategy targets malicious cyber activity by Russian actors targeting organisations involved in the development of a Covid-19 vaccine. The joint advisory outlines an ongoing campaign by cyber actors against the government, diplomatic, think tank, healthcare and energy targets to steal intellectual property. The Australian Department of Foreign Affairs and Trade (DFAT) said in a statement that Australia is concerned by any reports that malicious cyber actors are seeking to exploit the current pandemic for their own gain and emphasised that the targeting of Covid-19 vaccine development and research during a pandemic is completely unacceptable behaviour. “The Australian Government calls on Russia to cease immediately any cyber activity, or support for such activity, which is inconsistent with their international commitments,” DFAT said. “Australia, through the office of the Ambassador for Cyber Affairs and Critical Technologies, has registered our concern at the United Nations about malicious activity targeting health infrastructure. Australia’s Cyber Cooperation Program is assisting countries in our region to strengthen their cyber resilience.
“The Australian Cyber Security Centre (ACSC) is working closely with organisations across Australia to help build their resilience to cyber compromises and is engaging with victims of malicious cyber incidents to offer cyber security advice and assistance.” In May, the Australian Cyber Security Centre (ACSC) released a join statement regarding its response to bolstering the country’s cybersecurity capabilities. The ACSC, assisted by Australian law enforcement and industry partners, is working to disrupt and prevent Covid-19-related cyber activity. The Australian Government has announced it is investing $1.35 billion to further enhance Australia’s cybersecurity capabilities and that the 2020 Cyber Security Strategy will be delivered in coming months. “We encourage all Australian citizens and organisations to remain vigilant about cyber security threats,” DFAT said. The ACSC is based within the Australian Signals Directorate (ASD) and leads the Australian Government’s efforts to improve cybersecurity. Earlier this year, transport and logistics company, Toll Group, released updates on cyber attacks that impacted the business’ operations. In December 2019, Australian researchers claimed it would take a catastrophic event for cybersecurity to be taken seriously in the mining and resources industry. AUSTRALIA Postal service company, Australia Post, facilitated an additional $2.4
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OCEANIA billion in e-commerce during the three months to May 2020 compared to the same period last year. Australia Post Group Chief Executive Officer and Managing Director, Christine Holgate, said while this was a credit to the direct workforce of 36,000 people, it was very encouraging to see an additional 25,000 Full-time equivalent local jobs were supported each month during the pandemic. “It’s very clear Australia Post has played a critical role in keeping the country running during the Covid-19 pandemic,” said Holgate. “Not only have we supported business
to trade online, for every three workers employed by Australia Post, another two jobs in other businesses and industries have been supported, many in small and medium businesses. “I’m so proud of the way we have stepped up and kept many Australian businesses alive. Australia Post really has become the ‘BusinessKeeper’ of the national economy. “This new analysis underlines the fundamental role Australia Post plays in connecting communities and businesses across Australia,” she said. Minister for Communications, Cyber Safety and the Arts, Paul Fletcher, said these Deloitte report findings
underline the vital role that Australia Post plays during the pandemic “in serving the increased parcel delivery needs of Australians and their small businesses as people moved their economic activity online, particularly those in rural and regional locations”. Fletcher added: “It further highlights why the Government agreed to grant temporary regulatory relief to Australia Post so it could meet the increasing parcel volumes by redeploying around 2000 posties to work in the growing part of the business delivering parcels instead of letters, which are sharply declining during the pandemic”.
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FROM ROAD TO REAL, IS THE INDUSTRIALIZATION OF THE INNOVATIONS PRESENT ON THE ROAD COLLABORATIVE PROJECT THROUGH FOUR NEW CHEREAU RANGES
THE CHINA TO ENHANCE ITS ROAD TRANSPORT PRODUCTS AND IMPROVE THE GROUP’S CORE COMPETITIVENESS, CIMC VEHICLES IS FOLLOWING A SERIES OF GROWTH TRENDS AND LEADING THE WAY IN HIGH-END MANUFACTURING.
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he beginning of 2020 saw China and the US sign an economic, trade agreement where both parties have reached the consensus that the US will fulfil its commitment to phase out additional tariffs on Chinese products, so as to achieve a switch from hiking toc cutting additional tariffs. On one hand, according to CIMC Vehicles, the OEM will pay close attention to the negotiation of the China-US phase two economic and trade agreement and prepare appropriate business strategy for the possible relaxation of economic and trade relations. On the other hand, though, CIMC plans to promote the construction of refrigerated semi-trailer plants and container chassis facilities across North America. In January 2020, with the spread of Covid-19 worldwide, it goes without saying that the pandemic has caused obvious impacts on economic activities in China and even the world. For Chinese government to drive domestic demand, “New Infrastructure Construction” has become an important starting point for economic growth in 2020. Recently, various regions of China have launched huge investment plans with total investment of over 20 trillion RMB, of which nearly 3.5 trillion RMB worth of investments will be completed in 2020. The OEM expects truck bodies for specialty vehicles, dump trucks and agitator trucks will experience a continuous rise. At the end of April 2020, the Security Committee under the State Council of China issued a three-year action plan for special remediation of national work safety, pursuant to which part of the tasks for transportation safety remediation involved in the special action has promoted the compliance process of illegally modified vehicles. With the deepening of the special remediation of 100-tonne vehicles – the illegal modification of trucks, the large-tonnage trucks with small-tonne tags and other violations of laws and regulations will basically be eliminated in 2022. China will reportedly strengthen the safety management of road transportation of dangerous goods, with focus on the rectification of violation acts such as non-compliant tankers carrying liquid dangerous goods and illegal transportation with entrainment. According to the requirements of GB1589-2016 and GB7258-2017 Conditions for Operation Safety of Motor Vehicles, such requirements will further stimulate the replacement of non-compliant vehicles in China’s semi-trailer market. The in-depth implementation of highway safety and life protection projects will bring growth in infrastructure, which will especially
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bring new growth for the market of specialty vehicles such as construction vehicles, dump trucks and mixer trucks. The new market demand will stimulate the business growth and development of CIMC Vehicles. As for company finances, CIMC Vehicles reported satisfactory sales volumes of domestic semi-trailers and truck bodies for specialty vehicles in Q2 2020. A larger order volume, Li said, included domestic enterprises. For example, its domestic enterprises successively signed orders with Huizhou GHT (惠州广和 通) for 1,000 truck body products of dump trucks, and with Jiangji Chexiang (江集车 厢) for 1,500 chassis trailers. Meanwhile, with the construction of new infrastructure, the product lines of CIMC Vehicles will also develop towards intelligent networking, including four directions namely intelligence, networking, modular and sharing. In the future, development of CIMC Vehicles’ products will be based on the application of 5G and IoT technology, which can realise remote diagnosis. When a failure of vehicle occurs, it will be automatically reflected to the platform to establish a connection and form a solution. In the Meantime, the feedback based big data is expected to realise the repeated calculation of vehicle products, which will achieve more intelligent operation of vehicles and networking of products. With the increasing weight of service industries in GDP, the fresh food logistics industry in China is also entering into a long-
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term growth trend. The Ministry of Transport in China recently issued the notice on further improving the highway vehicles toll and extending the highway fee concession for fresh agricultural products transportation. On the other hand, the National Development and Reform Commission released the list of national backbone cold chain logistics base construction in 2020, further strengthening the transformation of cold chain logistics facilities and equipment, promoting the innovation of business process and business model, and constantly improving the service capacity and efficiency of cold chain logistics. These will fundamentally boost the domestic demand for refrigerated trucks and refrigerated trailers. After the spread of Covid-19, the application of relevant favourable policies as well as the accelerated construction of cold chain logistics
bases in China, demand for fresh food delivery to home has ignited demand for refrigerated van trailers. In an executive interview with Global Trailer, CIMC Vehicles President and CEO, David Li, details what it takes to be the world’s top trailer builder from coordinating group-wide transformation to overhauling China’s second generation of semi-trailers to make way for innovative, safer and more productive equipment.
Q: Is CIMC Vehicles’ plan to establish 14 ‘Light Tower’ or lighthouse plants by 2025 on track? A: We have commenced preparation for building ‘Light Tower’ plants since 2014 for upgrading traditional plants to automated manufacturing plants and building our core competitiveness through technology upgrades. As of 2019, we have built 12 ‘Light Tower’ plants for semi-trailers around the world, including five Light Tower plants for truck bodies of specialty vehicles in China and two ‘Light Tower’ plants for bodies of refrigerated van trucks in China. Our Light Tower plants are the first to launch the concept of ‘manufacturing trailers with car manufacturing techniques’ has formed a ‘high-end manufacturing system’ with initial scale. We have realised this upgrade from traditional labour-intensive plants to modern environment-friendly plants which enable our products to
Cement mixer jointly launched by CIMC Vehicles and SAIC Hongyan.
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be more competitive with higher quality and price advantages among similar products in the world. The Light Tower plants have features such as adopting high precision feeding and shaping devices, using automated welding or robotic welding, adopting KTL with high automation and low VOCs emission, as well as robot-controlled powder coating system, paced assembly line and digitalised warehouses. The transfer into Light Tower plants is beneficial to enhancing efficiency, improving product quality and contributing to the ecological environment. In the future, with focus on the objective of comprehensive transformation towards high-end manufacturing systems, we will regard upgrading product modules, improving Light Tower plants, launching marketing reform and promoting organisation development as our core measures for enhancing the long-term competitive strength of the organisation. In China, we are planning to continuously improve the existing nine Light Tower plants, build two new Light Tower plants for truck bodies of specialty vehicles, and build a new Light Tower plant for refrigerated truck and trailers. Meanwhile, we will set up an assembly plant for refrigerated semi-trailers in Sarnia, Ontario of Canada; build an automated production facility for refrigerated trailers in Monon, Indiana, US; build automated production facilities for container chassis trailers in Emporia, Virginia, and South Gate, California; and set up production plants for container chassis trailers in Southampton of England and Pijnacker of the Netherlands. We believe that with the gradual improvement in manufacturing capacity of our Light Tower plants in China and the continuous deepening of our business philosophy of ‘Inter-continental Operation, Local Manufacturing’, we will give full play to our competitive advantages in global supply chain, global high-end manufacturing system, cross-over design and inter-continental production. Q: What are the main challenges and opportunities for CIMC with the implementation of this ‘intelligent upgrade’ across the business? A: In the course of transformation and upgrade towards ‘intelligent manufacturing’, product module design, product focus, product profitability and brand competitiveness are all important goals for breakthrough of our smart transformation. Facing such challenges, the group has made strategic planning with focus
CIMC Vehicles’ light-weight intelligent urban dump truck.
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on stable operation and quality growth, and will develop an integrated business model of ‘Manufacturing + Services + Finance’ based on high-end manufacturing system, so as to promote transformation and upgrade of ‘intelligent manufacturing’, optimise allocation of resources and talents, and ensure our competitiveness in the industry. In 2019, CIMC Group accelerated the transformation and upgrade of intelligent manufacturing and implemented the strategy of integrating industrialisation and informatisation. Levering technologies such as IoT and big data, the pilot manufacturing plants of CIMC Vehicles implemented the Light Tower Plan in an orderly manner, which helped enterprises reduce costs, enhance efficiency and shorten delivery time while building a green and friendly environment for safe production. In addition, CIMC Vehicles intensified efforts in product research and development, with over 900 authorised patents obtained worldwide. Furthermore, we continued to explore innovative business models and technologies. We have established a trailerrenting project and launched IoT technologies and systems for intelligent trailers, so as to achieve intelligent, visual and timing management of trailers and cargoes for our customers, realising the lowest operating cost, the best operating efficiency and the most secured operation safety, and ultimately improving efficiency of logistics transportation and promoting the development of intelligent transportation as well as the intelligent semitrailer industry. Q: CIMC Vehicles signed cooperation agreements with Antai College of Economics and Management (ACEM), Shanghai Jiao Tong University, and MIT (USA) to recruit suitable persons externally. The CIMC Vehicles has also officially become a partner in the MBA program of the ‘China Leaders for Global Operations (CLGO)’ initiative. Do you have any comments to share about these arrangements? A: Innovation-driven and talent-oriented. As a global multinational company driven by the wave of global digitisation, we
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focus on the future based on our current conditions to establish an innovative talent development mechanism in the hope to attract more excellent talents worldwide to join us for mutual growth. Our cooperation with reputable universities highlights a solid step towards talent development and intelligent application. CIMC Vehicles has signed cooperation agreements with Antai College of Economics and Management (ACEM), Shanghai Jiao Tong University, and MIT (USA) to recruit excellent candidates with potentials, reflecting that CIMC Vehicles attaches more significance to integrated talents with both business management as well as science and engineering backgrounds. We have recruited talents to our enterprises successively through launching the ‘2025’ and the ‘Global Operation’ talent development plans. Our new recruits can improve their technical capabilities in actual projects and can quickly achieve enhanced leadership through trainings on communication and management. We will strive to cultivate core technical talents to usher the development of Industry 4.0 and act as leaders in our global operation strategy. Q: CIMC Vehicles was the first semi-trailer manufacturer to be listed on the main board of the Stock Exchange of Hong Kong Limited (HKEX) on 11 July 2019. Can you elanorate on this development and what it means for CIMC Vehicles’ future? A: On 11 July 2019, CIMC Vehicles successfully listed on the main board of the Hong Kong Stock Exchange and became the first semi-trailer manufacturer in the Hong Kong stock market. It is the fourth independent listing platform of CIMC Group and its listing represents a milestone for the rise of China’s semi-trailer industry. Currently, we have also initiated the plan for listing on the A-share market. If successful, CIMC Vehicles will become the first semi-trailer manufacturing company listing on both the A-Share market and H-Share market in the world. The listing of CIMC Vehicles means that: (i) the company can further optimise and improve its corporate governance structure
and enhance its overall governance after its listing; (ii) we can make full use of the financing channels of this market to attract more domestic high-quality investors, which will facilitate continuous enhancement of our core competitiveness; (iii) the successful landing of CIMC Vehicles in the capital market will further accelerate our strategic layout, promote our product module upgrade and enhance our capital advantages in core strategic measures including improving Light Tower plants, and expand our scale effect; and (iv) in terms of the industry, the listing of CIMC Vehicles as a leader in the semi-trailer industry will facilitate more comprehensive knowledge and understanding of the capital market on the semitrailer industry. Finally, the listing of CIMC Vehicles is conducive to attracting more talents with global visions to join our management and R&D teams, thus constantly enhancing the core competitiveness of our brand in terms of R&D design, product marketing and value-added services, hence providing more diversified products and services for our customers and creating maximum value for our shareholders. On 25 March 2020, CIMC Vehicles published its first annual results report, according to which the Company achieved steady growth in overall results with revenue of 23.22 billion RMB. In 2019, the Company recorded net profit of 1.33 billion RMB, increasing by 7.7 per cent year-on-year, and profit attributable to owners of 1.21 billion RMB, increasing by 5.9 per cent year-on-year. The Board of Directors recommended the payment of a final dividend of 0.45 RMB per share for the year ended 31 December 2019. Q: What is the Trailer G20 ‘China Trailer High-Quality Development Joint Conference’ which was established in July 2019? Who were the main participants? How does this group set new standards and promote development? A: On 31 July 2019, the first China Trailer High-Quality Development Joint Conference (Joint Conference, also known as Trailer G20) was established in Shenzhen. The first batch of Trailer G20 members consists of 20 major domestic trailer manufacturers including CIMC Tonghua, CIMC Huajun, Shandong Luoxiang, Anhui Kaile, Dongguan Yongqiang, Hunan SNTO, Liangshan Tongya and Liaoning Gold Tianma. In recent years, the trailer market has been reshaping with the implementation of relevant standards and regulations in China. The trailer industry is about to enter a period with historical opportunities for the upgrade of second-generation products following the major industrial development trend of enhancing configuration, promoting transformation and development as well as improving quality and efficiency. Against this background, CIMC Vehicles initiated the establishment of Trailer G20 which is committed to building an ecosystem for the healthy and highquality development of trailers in China. Trailer G20 aims to promote the healthy development of the industry through legal operation, sharing resources, enhancing self-discipline and cooperative development, hence seeking a new path for the high-quality development of trailers in China. Q: At the 2019 China International Commercial Vehicle Expo, you talked about special purpose vehicles and called on government regulators to continue to strengthen joint law enforcement in a bid to crack down on overloading in the road transport industry. Do you have anything further to add on this? A: At present, there is still significant gap in launching new products between the trailer industry in China and those in developed countries in Europe and
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the United States. The trailer industry in China is generally characterised by ‘overrunning and overloading’, and the industry on the whole is in a state of atomic competition with uneven quality and low concentration of competition. China’s first-generation semi-trailer standards have significantly affected the development of the entire road transportation, and China’s semi-trailer industry is undergoing a second-generation upgrade. In 2016, China officially launched the GB1589-2016 standard, which represents the second-generation national standard for China’s semi-trailer industry. In 2017, in a bid to clarify the guidance of GB1589-2016 over the semi-trailer industry, relevant ministries and agencies of China issued GB7258-2017 for the running gear system and safety devices of semi-trailers. The GB7258-2017 standard is highly similar to the standards and practices of the EU, laying a foundation for guiding the upgrade of China’s semitrailer industry to the European level as well as for the going global of tractors and semi-trailers made in China. For a long time, the manufacturing enterprises in China’s semi-trailer industry has been in urgent need for upgrading, and the market is still in disordered competition. According to data from China Specialty Vehicle Association, there are over 1,600 specialty vehicle and trailer companies including 1,362 companies in production, as reported in China. Sustainable development is the key for semitrailer and specialty vehicle companies in China to complete market transformation and upgrading. With the new national standard of second-generation semi-trailers (GB1589- 2016, GB7258-2017) coming into force in 2020, the 17.5 metres long flatbed trailers and over-length fence trailers which are dominating most of China’s long-distance road transport market will be replaced by compliant van trailers and curtain-side trailers. Given the vast number of this type of semi-trailers, it will take three to four years to complete the replacement by our estimation. In addition, demand for refrigerated trailers for long-distance cold chain transportation will climb up quickly, and large refrigerated vans trailer will completely replace illegally modified second- hand shipping refrigerated containers and further stimulate market demand. In line with the new standards, we ought to produce high-quality secondgeneration semi-trailer products, and drive steady growth of the Company’s performance through upgrading product modules, improving Light Tower plants, launching a marketing transformation as well as promoting organisation development, so as to continuously improve and enhance our core competitiveness. In an era of second-generation semi-trailers in China, we will continue to lead the specialty vehicle industry so that the world will be more confident in the positive and optimistic development and prospects of China’s semi-trailer market. Q: Do you have any comments about CIMC Vehicles’ push into the global special-purpose vehicle market? A: The changing global situation is constantly affecting CIMC Vehicles’ production and operation models in overseas markets. The Sino-US trade war in particular, coupled with the Covid-19 pandemic, has brought a heavy blow to the global economy and further undermined the resumption and recovery of the economy. The production model of exporting products made in Chinese plants and assembled overseas under the former inter-continental production model are under certain tax pressures, so that the splitting mode of exports is set to become the response measure taken by enterprises. On the basis of ‘Global Operation, Local Knowledge’, we have upgraded to the business philosophy of ‘Inter-continental Operation, Local Manufacturing’, while the
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overseas plants of the company have changed from ‘Inter-continental Manufacturing’ to ‘Local Manufacturing’. Our overseas production plants will implement relatively independent production and operation strategies. Overseas plants will independently carry out procurement of raw materials, production and operation arrangements and sales according to their own production and operation plans. As for overseas assembly plants, the headquarters of the company will formulate the overall production and operation plan, and overseas assembly plants will be responsible for actual implementation. The domestic production plants will manufacture corresponding modular products and ship such products to overseas assembly plants for assembly, while overseas assembly plants will be only responsible for product assembly and external sales. To cope with the new global situation, we will accelerate the modular design of products and the construction of Light Tower plants. CIMC Vehicles has owned production plants and assembly plants in eight countries including the US, the UK and Belgium. Our products cover major regions including China, North America and Europe, for which we have established supporting sales networks. In the overseas markets, we have successfully acquired several well-known brands such as Vanguard, SDC and LAG. Relying on our design process and production experience in common product portfolios in such regions, we have achieved significant strategic synergies. Q: At the 2019 China International Commercial Vehicle Expo, CIMC Vehicles the unveiling of two lightweight environmentally friendly ’Second Generation Semi-Trailer’ models as well as upgraded versions of classic trailers including an Australian 13.6m curtainsider. Are there any specific trailer models in development or coming soon that you would like to talk about? A: At the Expo, such 13.6m curtain-side trailer attracted a lot of attention and was called “the best trailer in China” by European consumers. Its body boosts lightweight design and highlighting powder coating process. The
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trailer is equipped with a wind deflector, sliding roof and fences on both sides which can reduce wind resistance and fuel consumption. It also uses 30mm composite wood floor with European standards, which is anti-skid, wearresistant and easy to maintain. The newly configured curtain with European standards is smooth and aesthetic. Currently, we are actively developing and upgrading the product modules of secondgeneration semi-trailers. Such product modules are based on compliant size and compliant load and are suitable for high speed driving with high horsepower tractor. Moreover, the vehicle is characterised by light weight, high configuration, long life, and less maintenance, which can not only meet requirements of product upgrading in the Chinese market, but also can be directly sold in emerging markets. With the implementation of the secondgeneration national standard GB1589-2016 for China’s semi-trailer industry, the size standards of China’s second-generation semitrailers are similar to European standards which are commonly used for curtain-side semi-trailers in Europe. In the future, we will also launch more lightweight vans and curtainside semi-trailers that comply with China’s second-generation national standards to meet growing market demands. At present, CIMC
Vehicles has launched the International Version of vehicles series based on the business philosophy of ‘Global Operation’, which have passed the strict testing of major markets in the North America. This has not only further shined the brand of ‘Made in China’, but also greatly boosted the confidence for Chinese specialty vehicle brands to participate in global competitions. Q: Are there any trends in manufacturing that you would like to discuss? A: With the enhancement in technological innovation, compliant development and thresholds, the global high-end semi-trailer manufacturing system will be further shaped by automated and intelligent production techniques. In the future, the production of semi-trailers will be shifted to relying on modular design and automated equipment. The manufacturing specifications and process will be further improved, and plants will be shifted from traditional labour-intensive production to more automated production characterised by modular, standardised and environmental protection. We believe that high-end manufacturing compliant plants will follow or meet the following features: high precision feeding and shaping devices; automated welding or robotic welding; electrophoresis with high automation, KTL or e-coating with low VOCs emission, and robot-controlled powder coating system; paced assembly line; and digitalised warehouses. CIMC Vehicles will follow the growth trend of the future industry in its production and manufacturing. We have continuously deployed high-end manufacturing systems worldwide since 2014, and Light Tower plants are the results of CIMC Vehicles upgrading semi-trailer and specialty vehicle manufacturing plants to high-end manufacturing and automated and intelligent manufacturing. Closely following the overall objective and technical direction of ‘Industry 4.0’ and ‘Made in China 2025’, we have adopted modern design concepts and techniques, innovative technology and equipment, industrial Internet, digital information management system in an integrated manner. www.cimcvehiclesgroup.com
Refrigerated semi-trailer developed by CIMC Vehicles.
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AMERICA
WHILE COVID-19 HAS IMPACTED THE US ECONOMY – WHERE THE CONSEQUENCES ARE FAR REACHING AND HERALD AN UNPRECEDENTED SERIES OF CHALLENGES FOR NORTH AMERICA – TRAILER MANUFACTURERS, COMPONENT SUPPLIERS AND THE TRUCKING INDUSTRY AT LARGE ARE WORKING OVERTIME TO ENSURE GROWTH IN 2021.
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ata analysis firm, ACT Research, is optimistic about the state of North America’s trailer manufacturing industry. June net US trailer orders of 13,441 units were, according to ACT Research’s latest trailer report, a significant improvement (333 per cent) from May’s very low comparison, arriving dramatically above June 2019’s level, up 112 per cent. Before accounting for cancellations, new orders of 16,000 units were up 117 per cent versus May and 41 per cent better year-over-year. “It is important to remember that those comparisons are to exceedingly low orders during the first part of this quarter, when widespread Covid lockdowns were in place,” said ACT Research Director–CV Transportation Analysis and Research, Frank Maly. “That said, the improved sequential comparisons do indicate some fleets, after assessing current market conditions, are beginning to cautiously commit to capital expenditures. “Discussions indicated that large fleet orders helped drive June results, meaning improvement is generally not spread evenly across all OEMs, and we expect that choppiness to continue as we move through the summer. “OEMs continue to seek order/build equilibrium, and while some fleets are willing to make investment commitments, most continue to remain on the sidelines, despite some negotiations occurring to help generate order volume.” North American OEM, JOST International, established a training and troubleshooting platform earlier this year to support its customers amid Covid-19. The company specialises in landing gear and fifth wheel product lines from its head office in Grand Haven, Michigan. Brian Moynihan of JOST International confirmed that overall demand for trailers remains very soft. “Right now, most fleets are taking a ‘wait and see’ position as they determine demand for new equipment. “Right now, trailer orders are off by 50 per cent. Many trailer OEMs closed operations at the beginning of the pandemic. Several were closed
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MARKET REPORT
FAST FACT Strick Trailers, based in Monroe, Indiana, implemented Covid-19 screening and other precautions to insure the wellbeing of its team members. Sales for 2020 in the dry van trailer market were projected to be down for the year and while there has definitely been some pull back in the industry, Strick’s business remains steady and strong.
for multiple weeks. We still are seeing some major OEMs closing for periods of time. This is mainly to building and protecting their backlogs. In recent weeks the quote activity has been strong. Many of the large truck load carriers that were standing on the side lines are now starting to send out RFQs for new trailers for late 2020 and into 2021.” Moynihan said the new studio is key to its capability to adapt during pandemic conditions. “At JOST International we are finding new ways to reach out to our customers such as the JOST studio that we set up. This studio allows us to have one-on-one, face-to-face meetings with our customers. This has proven to be a very useful tool for new product introduction, training and troubleshooting.” Early in the pandemic, according to Moynihan, there was a rush on orders from certain carriers that service the food distribution industry. “These would be typical grocery chain fleets,” he said. “There have also been strong orders from fleets that are involved in final mile delivers due to the unprecedented demand for home deliveries. This would include fleets like Amazon, UPS and FedEx Ground.” Looking back at the US’ economic situation and how it directly affects the trucking industry, Moynihan expends trailer demand to remain soft until the States start top open the economies again or keep then open. “As we sit here in early July and see the reported Covid-19 cases increasing this will not help the demand for transportation equipment as States are slowing their re-opening or even backing up,” he said – adding that demand for service parts has stayed relatively strong through the pandemic. “Many fleets are starting to repair equipment that they already have on-hand versus buying new equipment. This has been a typical process in previous market down turns. We believe that this will continue to balance of 2020.” Meanwhile, Wabash National has been focused on its zero emission and composite reefer solutions. At the beginning of the year the OEM presented at the Technology & Maintenance Council Annual Meeting & Transportation Technology Exhibition – North America’s premier technical conference for the truck and trailer sector. Its standout trailer design was the MSC (moulded structural composite) reefer which provides a unique platform for electric powered trailer refrigeration units and set new standards in efficiency and thermal performance. The OEM also re-introduced its lightweight Transcraft Eagle flatbed to the market. Kevin Page, Wabash National SVP – Customer Value Creation, explained that in more recent times the business has taken its position as an essential supplier and service provider seriously to help its customers to continue running. “We’ve had to strike a balance between maintaining the health and safety of our workforce and meeting customers’ needs,” he said. “To do that, we implemented physical and administrative controls to reduce the risk of spread within our operating and office environments. At first this was an adjustment for everyone, but we were able to return to typical productivity levels fairly quickly even with physical distancing on the production line.” Page also commented on the US trailer market, stating the importance of the economy to its customers has really been highlighted over the past couple of months with their ability to keep critical goods moving. “They have continued to operate through these challenging times, and I know they have a healthy appreciation for how quickly conditions can change in their market,” he said. “They’ve had to navigate fluctuations of being extremely busy when consumers cleared the shelves prior to state-mandated stay-at-home orders, to experiencing a considerable market softening with business closures, and now
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CIE Manufacturing actions stringent Covid-19 measures onsite.
preparing for increased volumes as states reopen their economies. Although there is a good deal of uncertainty around what the ramp in freight activity will look like, Wabash National is flexible and prepared to execute in any type of market that materializes. We understand our customers are managing capital expenditures closely at the moment; however, we believe they still want to maintain average equipment ages at reasonable levels to ensure operating efficiency and attract driver talent.” A major focus for equipment specialist, SAF-Holland, has been on its manufacturing according to Director of National Account Sales – USA, Doug Dorn. He said the addition of a new VP of Quality, Keith Belevender, who joined the executive staff in March, is key to the company’s strategy of strengthening existing quality assurance processes as well as implementing new ones across all of SAF-Holland’s North American manufacturing plants. Dorn said the company’s response to Covid-19 includes varying expenses as much as possible, reduced staffing, virtual selling, increased use of web-based training and virtual training events.”The US trailer market is down 50 per cent with vans, reefers and intermodal being hit the hardest,” he said. “Vocational market – agriculture, flat and tank are all down, too, but much less (around 20 per cent). Our product mix remains roughly the same even though sales are down 40 per cent. All OEMS reduced production rates and it has affected our core products evenly.” Manufacturing in the US, according to Dorn, stabilised in June but a much lower volume. “There are slight signs of increase in July, so we hope to continue to see a slight recovery through the year end 2020 and a nice growth in 2021,” he said. Intermodal chassis specialist, CIE Manufacturing (CIEM), as of July 2020, implemented full production capabilities at its South Gate, CA, and Emporia, VA, facilities which was followed by intensive, specialised training for its productionbased employees. Executive VP, Trevor Ash, said the team has started production on a new North American chassis line, the Pioneer. “Beginning with 40’ and 40/45’ models exclusively, we will soon begin expanding that production to other models with the full expectation that North American demand for any model of intermodal chassis can be met from production in those two locations,” he said. “With this expansion into production, we recognise the needs of chassis customers that require higher volumes of chassis,
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with faster lead times and lower transport costs – important needs that no other North American manufacturer can meet. CIEM is also proud to be providing higher quality production jobs to both regions and increased US economic activity.” CIEM, according to Ash is a provider of intermodal equipment to the transportation industry, an industry that is essential to the infrastructure of the US and North America as a whole. Just as importantly, the business has a duty to provide its employees with a safe and healthy environment. “It is just as essential that our employees are able to continue to work and take care of their families,” Ash said. “Since the beginning of the Covid-19 pandemic we have integrated temperature checks and face masks into our daily routines, and in all gathering areas have painted 6’ apart spots on the floor so that social distancing is maintained at all times. It has always been our goal to protect our employees while also providing the essential services and equipment that will continue to keep America moving. To that end, not only did we not shut our doors during the pandemic, but we doubled down and transformed our facilities to manufacturing so that we can offer our customers peace of mind that we will be here to support and grow with them no matter the geopolitical, economic or health environment.” As for the US trailer market, Ash agreed that 2020 continues to face unprecedented challenges. “Intermodal volumes and demand in Q1 and Q2 2020 as anticipated were grim, and although the market as a whole saw positive post-Labor Day activity, the ongoing spikes of Covid-19 continue to drive market uncertainty. Equipment and service providers in intermodal and trucking are still proceeding with a tone of cautiousness when it comes to replacing or adding to their ageing trailer fleets.” Ash said a positive outcome during these turbulent times has been the creative and efficient business solutions that have eventuated out of necessity. “CIEM is proud to lead the intermodal industry with a continuing evolution in the quality and functionality of essential intermodal equipment, first with Revere, the container chassis with the highest
MARKET REPORT
Road tanker specified with SAF-Holland trailer axles.
ROI available, and now the Pioneer chassis line, globally sourced and North American made, with faster lead times,” he said. “As demand returns, CIEM will be the best positioned to fulfil these orders.” As the economy continues to attempt a rebound, CIEM is starting to see the return of demand for all its key models – marine chassis 40’ and 40/45’, its domestic 53’ and multi-size 20/40’ combinations. “We are also seeing an increase in demand for a more specialised chassis/customer approach and for this reason we will be offering each of our North American Pioneer chassis models in three different warranty specifications – five-year, seven-year and the 10-year for the customer who understands true cost of ownership over the life of the chassis,” Ash said. “By better meeting the ever-changing needs and demands of our customers, we can continue to drive the evolution of the intermodal industry.” Of all the uncertainties facing the US economy at the present time, the resilience of the trucking industry, its drivers and its
supporters remains unwavering according to Ash. “We are currently seeing sustained volume growth, but truck capacity remains tight,” he said. “It is for this reason that as we look at the current state of freight and trucking, we believe that to maximise efficiencies and meet an impending return of demand there is a place for both intermodal and trucking to play a role. Together we can look forward to a marked period of recovery for the remainder of 2020 and into 2021.” www.globaltrailermag.com
A sneak peek inside Strick Trailers’ facilities.
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PR O D U CT & I N N OVATI O N S H O W C A S E
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IN GEOGRAPHICAL DIVERSIFICATION THE WIELTON GROUP CONSISTENTLY PURSUES AN INTERNATIONAL DEVELOPMENT STRATEGY BASED ON A UNIQUE MULTIBRAND BUSINESS MODEL, FOCUSED ON BUILDING GLOBAL REACH THROUGH STRONG LOCAL BRANDS. IN RECENT YEARS IT HAS ACQUIRED EXPERIENCED MANUFACTURERS FROM FRANCE, ITALY, GERMANY AND THE UK. NOW, IT IS READY TO CONTINUE ITS INTERNATIONAL EXPANSION AND IMPLEMENT FURTHER PRODUCT NOVELTIES.
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he last five years have been a period of extremely dynamic growth for the Wielton Group. The strategy based on geographical diversification and the potential of the acquired brands ensures that the Group maintains a strong position among the top ten manufacturers in the world. Such a strong position was possible due to the renowned brands that have successively joined and strengthened the Group’s position. These brands have been present on local markets for several decades. During this time, they have developed a strong portfolio consisting of specialized vehicles and products tailored to the needs of customers and the market. As a result, the companies have gained dedicated and loyal customers who are open to continuous cooperation and joint work on improving vehicles. “With the acquisition of new companies, the Wielton Group is implementing a unique multibrand business model based on building global reach through strong local brands,” said Paweł Szataniak, President of the Management Board, Chairman of the Wielton Group. “French Fruehauf, British Lawrence David, German Langendorf and Italian Viberti are recognised brands in their countries. Our vision for further development of the Group is based on strengthening the synergies of the acquired companies and their further development. In the long term, we do not rule out the possibility of new companies joining the group and thus entering new markets and introducing more specialist vehicles into the portfolio.”
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The strength of Wielton Group is its products
The foreign acquisitions conducted by the Wielton Group not only strengthened its position in Europe and worldwide, but also complemented its portfolio with new and unique products, according to Mariusz Golec, I Vice President of the Management Board, CEO of the Wielton Group. “This provided customers with access to a wide range of products and made the Group’s offering even more diverse and competitive in European markets,” he said. “The Wielton Group is growing dynamically, expanding its range with new brands and new products. We have a wide and diverse product offer based on proven solutions, tailored to the needs of the market, but also on unique and highly specialized vehicles. We comprehensively respond to the voices coming from individual countries and the needs of our customers. We focus on close cooperation with transport companies and joint development of the best,
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innovative solutions. As a result, we constantly improve our products. The values that remain unchanged for us are high quality and safety of vehicles. Our mission is to create and deliver the best transport solutions for business.” The Group has recently introduced many new solutions. It continuously develops tipper semi-trailers, equipping them with solutions to facilitate transport and unloading, i.e. a Teflon insert, adaptation to the installation of compressors for feed blowing. Low weight combined with a robust construction and high-quality workmanship are in the focus of customers, especially in the construction, municipal and agricultural sectors. In response to their needs, the Wielton Group has also added mass-optimised tipper semi-trailers (Super Light) to its product portfolio. It has also implemented additional frame The Wielton Group leverages multibrand power as a strong point of difference in the market.
reinforcements in these products, which increase the stability of the vehicle during unloading in difficult conditions. The development of the Last Mile Delivery product line is also very important in response to the dynamically growing popularity of online shopping and the demand for vehicles on the part of courier companies. The Group is executing a contract for the delivery of specialised products for one of the largest online shops in the world, as well as orders for large customers from the logistics sector and a large retail chain in the UK. In response to this trend, the family of box van trailers has been supplemented with a new two-axle Dry Master model dedicated to courier services. The vehicle has a robust construction and a wide range of additional equipment, which allows the semi-trailer to be adapted to different transport tasks and user needs. Thanks to this, it is currently fulfilling orders obtained from international logistics and courier companies. The Wielton Group implements a number of solutions that directly benefit its customers. One of the most recent examples is pillar-less Curtainsider, which allow for more efficient loading and faster transport. Also, the Wielton Group is constantly working on new products and implementing further solutions directly with its customers, such as the introduction of an innovative forklift docking system designed for Europe’s leading window and door manufacturer. It also responds to the trend of reducing external costs, including congestion, fuel cost reduction and decarbonisation. For this purpose, it has added the Strong Light Master model to its offer of products with a reduced curb weight, allowing to reduce fuel consumption and at the same time a durable and solid construction. This semi-trailer is up to 700kg lighter than a standard version and is part of, among other, the ecological combination of an international logistics and transport company. In the era of the coronavirus pandemic, which has a significant impact on manufacturers involved in the transport industry, the Wielton Group focuses on the diversification of markets and products. However, returning the transport industry to its pre-pandemic state will be a long-term process. At the end of this year, some kind of stabilisation is expected, which, however, is not synonymous with the possibility of fully recouping losses. In addition, the situation in the following months will still depend on the eradication or further development of the coronavirus pandemic. The Wielton Group focuses on further increasing geographical diversification as well as increasing efficiency by deepening synergies between the Group’s individual companies. For years, the Group’s products have met the requirements of customers in various industries around the world, making the company a reliable partner in international business. The high quality of materials, a wide, diversified offer and extensive personalisation of products enable the Group to reach a wide range of customers with the best transport solutions. www.wielton.com
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INNOVATIONS FOR INDUSTRY MEGATRENDS IN CONVERSATION: SAF-HOLLAND CEO, ALEXANDER GEIS, AND PRESIDENT EMEA, CHRISTOPH GÜNTER. Q: 2020 is an economically challenging year. How does the SAFHolland Group master the current situation?
Alexander Geis: Of course, we are living in a particularly challenging market environment, and the economic situation resulting from the Corona pandemic is affecting our sales and earnings development. However, we now benefit from the fact that we have already launched a global programme in autumn 2019 to reduce our sales and administrative costs. Thus, even in the current difficult market environment, we have not posted any losses. We are now consistently continuing the programme at all locations, so that our activities here will have their full impact later in the year. As in previous decades, SAF-Holland plans for the long term, thinks strategically and acts wisely.
SAF-Holland CEO, Alexander Geis (left), said the company is working on a customer portal to enhance its service and aftermarket capabilities.
Q: The commercial vehicle market is on the move despite the Covid-19 pandemic. How do you perceive the changes and how do you react to them?
Alexander Geis: Currently, the commercial vehicle markets in all parts of the world are declining, also exacerbated by the economic uncertainties resulting from the Covid-19 pandemic. Even before the coronavirus pandemic, we experienced a sharp market slump in the US, but also in Europe the trailer market is declining after a still strong first quarter 2020. We respond by consistently consolidating our plants and optimizing processes across locations. In China, we opened our new ‘best in class’ plant in the city of Yangzhou last autumn. In the state-of-theart Smart Factory, we bundle our manufacturing activities in China and can now optimally serve our customers on site.
axle that enables greater safety and targeted maintenance. In addition, less unintended vehicle downtime conserves resources and optimizes the total cost of ownership. From a few sensors in the right places, a wide range of applications can be derived to increase customer added value. On the other hand, we deal intensively with digitalisation in the
Q: The IAA Commercial Vehicles in Hanover would have been the most important event for the industry this year. What highlights would you have brought to the fair?
Christoph Günter: In recent months, we have consistently aligned our developments with the industry’s megatrends – digitalisation, electrification and autonomous driving. We would have been looking forward to show the new products from these areas also at this year’s IAA Commercial Vehicles and to discuss the innovations with our customers. Of course, we will move forward to share these future-oriented innovations with our customers and partners even without an official trade fair. Q: What is the SAF-Holland Group doing to tackle the digitalisation megatrend?
Christoph Günter: We are concerned about digitalisation in two ways. As a premium supplier in the field of axle and suspension systems, on one hand we are focusing on the digitalisation of our products. We are launching a sensitised
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President EMEA, Christoph Günter (left), said SAF-Holland is aligning its developments with industry megatrends including digitalisation, electrification and autonomous driving.
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area of the interface with our customers and for optimising internal processes. This focus is also on increasing customer added value.
The new sensitised axle from SAFHolland can monitor wheel bearing temperature, the brakes and tyre pressure while also confirming the load status of the trailer.
Q: To drive electrification, SAFHolland
has
developed
two
electrically driven axles. When will they be on the road for the first time?
Christoph Günter: We have developed our E-axles SAF TRAKe and SAF TRAKr to series production. Both axles use recuperation to reduce emissions and fuel consumption of the vehicle. SAF TRAKe supports with the stored energy the main drive of the tractor, while the SAF TRAKr is the ideal energy source for electrical consumers like a cooling unit. In particular in this area, we think in terms of cooperation and have tested our two developments intensively together with partners – with the aim of gaining as much experience as possible in a timely manner and bringing the E-axles to the road as quickly as possible. Q: Autonomous driving and automation are other topics that drive the industry. Where do you see opportunities for the SAF-Holland Group?
Alexander Geis: We support autonomous driving, where early adaptation will be relevant in loading and forwarding yards, in the field of automatic coupling. In this area, we traditionally see SAF-Holland as an interface between truck and trailer and assume our responsibility. We have developed an automated fifth wheel that will be ready for initial driving tests in the coming months. Q: Outside of megatrends, the classic product portfolio is of course an important factor in everyday business. What does SAF-Holland focus on here?
Christoph Günter: SAF-Holland has led the way with its proven axles and chassis systems with durability, ease of maintenance and low operating costs. But here, too, we are constantly evolving and supporting our customers in their daily transport tasks. The topic of lightweight construction is particularly important, because the low weight of our axles is also often a decisive purchasing criterion. That is why we are constantly developing our product range in this area. Q: The market for spare parts is fiercely competitive. How does SAFHolland fare with its products?
Alexander Geis: We keep our ear close to the market and the needs of our customers. On the one hand, we are currently driving the integration of our Italian acquisition V.Orlandi, whose products will be available directly from our aftermarket warehouse in the future. On the other hand, we are working on a customer portal as a digital interface for our customers. On this internet platform, they will be able to combine all their activities in the future, for example around service, guarantees and aftermarket. www.safholland.com
DIG ITISATION: SE NSITISE D AXLE The new sensitised axle from SAF-Holland helps to keep the vehicle in optimal condition at all times. Among other things, it monitors the wheel bearing temperature, the brakes and the tyre pressure. It also determines the load status of the trailer. The system always knows the condition of the vehicle and can react to it in real time. Monitoring can avoid vehicle downtime, which is the basis for future predictive maintenance. The data collected by the monitoring also form the basis for autonomous driving (monitoring of errors and maintenance without drivers). Thus, the sensitised axle provides additional security, allows targeted, predictive maintenance and thus reduces operating costs and resource consumption. SAF- Holland’s package of sensors and telematics is expected to be available mid 2021.
E LECTRI FICATION: TECH NOLOGY AN D SE RVICE SAF-Holland has developed electric axles that meet the current requirements: they require little or no additional installation space and are capable of powering auxiliary components. In addition, they comply with the legal requirements for C02 emissions. The complete system consisting of axle with gearbox, electric motor and components such as battery or control electronics is installed in a compact unit. In the coming months, SAF-Holland customers will be able to test a trailer with an E-axle and thus gain experience with the system, which will be incorporated into the further development of the recuperating axles.
AUTOMATIC COU PLI NG: COM PETE NCE AT TH E I NTE RFACE Automatic coupling as part of autonomous driving is a fully automatic process that is completely driverless. This reduces driving times and costs, and vehicles can be used 24 hours a day. Other advantages of automatic coupling over manual coupling: less damage to the vehicle and fewer accidents in which drivers are injured. Trailers can be retrofitted for automatic coupling without the need for additional space. The system also creates the basis for high-speed communication with the trailer. The first driving tests on cordoned-off terrain are planned for the end of 2020.
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ARABIAN ADVENTURE DUBAI-BASED TRAILER MANUFACTURER, GORICA, DRAWS ON ITS EUROPEAN SUPPLIER CONNECTIONS TO PRODUCE WORLDRENOWNED HEAVY DUTY TIPPERS AND SPECIALISED EQUIPMENT.
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he construction industry in the Middle East, predominantly in the Gulf Cooperation Council (GCC), which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, has surpassed its peak due to transformation of the economy moving from basic to transition and post-transition economy. GORICA Group General Manager Sales & Marketing, Domen Bockor, said that while major infrastructure projects that the region has seen in the past decade or so have been completed, there are only a few mega projects to be finished like the GCC railway system. “Major investments in the construction industry are focused on the development of leisure hubs like hotels, resorts, parks,” he said. “Nevertheless, we have engaged as a prime supplier in many of them from EXPO 2020 in Dubai to Duqm Port in Oman and so on. We are currently gearing up for supply to GCC railway
Fleets specify GORICA tippers for heavy duty infrastructure freight tasks. 4 6 / G L O B A L TR A I L E R / I SS U E 5 4
FAST FACT Backed by innovative design and bolstered by an array of special features, the market resale value of GORICA’s tippers is exceptionally high according to GORICA Group General Manager Sales & Marketing, Domen Bockor.
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contractors that are engaging in infrastructure work for the new railway system.” Last year, GORICA detailed its iconic slanting rear design on the tippers it produces for heavy duty applications. “Our innovation in tipping semi-trailers and bodies is two-fold: one triggered by road regulation changes like in Oman where we’ve developed a lightweight (with wear resistant specialised steel) but durable tipping semi-trailer of 32-36 cubic metres,” Bockor said. “On the other hand, we are investing our time and R&D into special application tippers for the food distribution industry like transportation of grain where the main aim is minimum possible kerb weight and special materials suitable for the application. Usually such tipping semi-trailers will be used by more advanced and developed consumers understanding the technical advantages.” Non-uniform road regulations throughout the Middle East make it difficult to standardise trailer designs. For GORICA, most of the purchase orders it receives from its clients need to be tailored for specific applications. “Partially we can confirm that most orders are made to custom requirement of the client, however the main driver in this is road regulations and within these parameters we also manufacture bespoke tipping semi-
GORICA manufactures a broad range of products including bulk tankers.
trailers,” Bockor said. “We can say that throughout the years GORICA design has become the most copied one by other smaller and medium size body builders and so-called market standard in terms of shape, specifications and application. Therefore, in its base the tippers are standard but with smaller adjustments to client specific need and application. One of our core advantages is the resale value of our product on the market that helps us develop the undeveloped markets in our broader region which as a consequence is followed up by new products.” GORICA has established a solid reputation for supplying the market standard for tippers used for both rock and quarry applications as well as specialty freight tasks. “The main advantages to the client are definitely in the feasibility of purchase where the client gets fit to application product, quality and best after sales service,” Bockor said. “All this results in increased revenues/margins for our clients along with the highest market resale value of GORICA tippers which makes a natural choice of purchase despite the fact price wise our product is on the higher end.” The Dubai-based manufacturer has recently seen a spike in sales for a variety of the trailers it designs and produces. “GORICA superstructures including but not limited to semi-trailers are popular and present in almost all the segments from general cargo logistics, food distribution, fuel distribution to waste management (like waste transfer trailers), oil and gas segment and more in perishable goods transportation,” Bockor said. “Over the past year, there was an emphasis on waste management in the region, and as a result our municipality product range saw a spike in popularity. This is supported by what was mentioned earlier which is the transformation of economy from basic to post transitional in the region. We’ve been placing a lot of emphasis on R&D in our new products from wheat bulkers, grain hoppers to milk tankers and refrigerated semi-trailers. Our clients increasingly require better efficiency, and this has become a key decisive factor for our constant development of new, upgraded products like for example refrigerated semi-trailers for automatic/ robotic loading.” GORICA continues to work closely with European axle and hydraulic suppliers to supply premium products. “Our core base of suppliers has been based out of Europe since our early days,” Bockor said. “We work with global brands and market leaders in axles, hydraulics, brakes – many of which are from Europe. We value loyalty when it comes to our clients, and as a result return the loyalty to our core supplier base as with their help our product has become a leading industry standard in our region.” www.goricagroup.com
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SMOO PR O D U CT & I N N OVATI O N S H O W C A S E
Innovative suspension without shock absorbers.
US BASED SUSPENSION SPECIALIST, HENDRICKSON, PROVIDES THE LATEST IN RIDE TECHNOLOGY WITH A PATENTED SYSTEM THAT ELIMINATES THE NEED FOR SHOCK ABSORBERS.
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endrickson, a Boler company, is a global manufacturer and supplier of medium- and heavy-duty mechanical, elastomeric and air suspensions, integrated and non-integrated axle and brakes systems, tyre pressure control systems, auxiliary lift axle systems, parabolic and multileaf springs, stabilisers, bumpers and components to the global commercial transportation industry. The latest innovation from Hendrickson to enhance the suspension of trailers is its ZMD® Zero Maintenance Damping technology which does not require the use of shock absorbers and instead incorporates the damping function into the air springs. Pressurised air is exchanged between the bellows and the piston when the axle moves up and down so there’s no moving parts or need for hydraulic fluid.
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FAST FACT In January 2020, Hendrickson announced a change to its senior leadership. Matt Joy was promoted to the position of Chief Operating Officer. He previously held the role of Vice President and General Manager of Hendrickson’s Truck group with previous roles of VP/GM Specialty Product Group and Vice President of Finance. Joy is tasked with responsibility for all divisions: Truck Commercial Vehicle Systems, Trailer Commercial Vehicle Systems, Specialty Products and International Operations.
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O PE R ATO R
THIS TECHNOLOGY PROVIDES REDUCED MAINTENANCE COSTS, IMPROVED FLEE T PRODUCTIVIT Y AND A BE T TER QUALIT Y RIDE. HEAVY VEHICLE OPER ATORS IN NEW ZEALAND TOLD HENDRICKSON THAT ZMD SMOOTHS OUT THE BUMPS MORE THAN CONVENTIONAL AIR SUSPENSION SYSTEMS WHICH MEANS DECREASED FEEDBACK TO THE DRIVER AND GREATER CARGO PROTECTION.
Hendrickson also offers TIREMAAX® PRO advanced tyre pressure control system to bundle with ZMD as an optional and highly recommended feature. The key benefits for incorporating this technology with a heavy vehicle combination includes enhanced tyre life, reduced maintenance, greater fuel efficiency and optimised labour costs. TIREMAAX PRO automatically inflates tyres using the trailer air supply and prevents over inflation by relieving air from the tyres back through the controller and constantly equalises pressure across all tyres. Hendrickson ZMD combined with HXL7 and TIREMAAX PRO provides the ultimate trailer suspension package.
This technology provides reduced maintenance costs, improved fleet productivity and a better quality ride. Heavy vehicle operators in New Zealand told Hendrickson that ZMD smooths out the bumps more than conventional air suspension systems which means decreased feedback to the driver and greater www.shockless-zmd.com www.hendrickson-intl.com cargo protection. ZMD is available as a premium option on selected INTRAAX® integrated air suspension models. INTRAAX supports a low total cost of ownership with long life components, providing a light-weight suspension that does not compromise on durability and is also cheaper to service as all brake components can be replaced without removing the hubs. A key feature to ZMD and INTRAAX is the HXL7® wheel-end which combines Hendrickson’s engineering and manufacturing expertise with high performance wheel-end components to create a wheel-end system that is 100 per cent field serviceable and delivers reliability and performance kilometre after Reduced maintenance costs and greater fleet kilometre. As a result, HXL7 comes with an productivity with Zero Maintenance Damping. extended-life warranty as standard.
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RENEWABLE
ENERGY SECURITY
ASPÖCK SYSTEMS UNVEILED ITS MULTILED III EARLIER THIS YEAR – THE LATEST REAR LAMP FOR TRUCKS AND TRAILERS. WITH ITS NEW RADAR SYSTEM, WHICH IS ENVIRONMENTALLY FRIENDLY AND USES SOLAR POWER, THE RENOWNED LIGHT MAKER TAKES ROAD SAFETY TO THE NEXT LEVEL.
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quipped with the same Glowing Body technology, the Multiled III is a space-saving equivalent of the Ecoled II. Especially for car carriers and pick-up trucks, this small rear lamp represents the perfect combination of outstanding lighting performance and the same high safety factor as the larger format according to Aspöck Systems. The Multiled III also emulates the larger model in its flexibility: the lens is replaceable. The homogeneous light pattern, the dynamic indicator with sequential light and the possibility for application within a voltage range from 12 to 24 volts are the same in both products, as is their certification according to ISO pulse 13207-1. Both rear lamps are able to fulfil the stringent demands of the commercial vehicle sector, and are convincing in their adaptability. Whether you opt for the Multiled III as the small version or for the larger Ecoled II rear lamp depends purely on the amount of available surface on the truck or trailer. Focusing on radar and solar solutions
Aspöck Systems has developed, produced and tested light-related solutions for more than 40 years, providing intelligent lighting and system Take advantage of solar solutions for the automotive and heavy vehicle power technology.
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industries. The manufacturer’s new radar system and environmental thinking to deal with solar energy is a bold market-leading move. Aspöck’s radar presents the most advanced solution on the market.
Ultrasonic sensors scan the area around a vehicle, and provide peace of mind when reversing into a place where you may not be able to see what is around. These radars are programmable with different parameters to suit all kind of needs. It can even be programmed to ignore an object in a certain area of the sensor. The radar can also connect to TEBS and/or in-cab display units to provide information to the driver of what is behind them. Once all these parameters are set the radar can begin to detect once engaged and can even operate the brake function within the vehicle when a foreign object is detected. The radar system is known for working in extreme conditions such as quarry/mining operations and even in bad weather conditions without fail. The key to any driver aid is to provide the
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State-of-the-art sensor capabilities enhance Aspöck’s value proposition.
necessary safety advantage without being intrusive or annoying to the driver. What do you do with the unused space on the roof of commercial vehicles?
It is ideal for the installation of solar technology. This can be utilised to provide a constant current to accessories on trailers, reducing the load on the engine and subsequently the amount of fuel used. This technology has been developed in the UK climate, which is a temperate one: Britain has cool, wet winters and warm, wet summers. So, even in the shorter days in the winter months, there are significant levels of power which can be used for various applications from trickle charging on-board battery systems to power everything from engine starts to refrigeration and even tail lifts and lifting decks. The panels are ultrathin and highly durable and can be attached to the vehicle roof via simple adhesive tape.
Multiled III rear lamp for trailers.
BOTH REAR LAMPS ARE ABLE TO FULFIL THE STRINGENT DEMANDS OF THE COMMERCIAL VEHICLE SECTOR, AND ARE CONVINCING IN THEIR ADAPTABILIT Y. WHE THER YOU OPT FOR THE MULTILED III AS THE SMALL VERSION OR FOR THE LARGER ECOLED II REAR LAMP DEPENDS PURELY ON THE AMOUNT OF AVAILABLE SURFACE ON THE TRUCK OR TRAILER. There is no need to drill holes. They are also modular and can be connected to create more amp / volts or can be replaced individually in the unlikely event one is damaged. They come in two sizes – 30W producing 2.0 amps per hour and 100W producing 6.0. They are both 12-volt panels. Joining two together of same sizes creates 24 volts. Aspöck then provides a controller for up to 30 amps that protects the system and controls the charging performance. Multiple panels and controllers can be used on a single vehicle. www.aspoeck.com
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LEAD PR O D U CT & I N N OVATI O N S H O W C A S E
THE ENERGY TRANSITION
FOLLOWING THE LAUNCH OF ITS FIRST HYDROGEN-POWERED REFRIGERATED SEMI-TRAILER, CHEREAU IS COMMITTING TO THE INDUSTRIALISATION OF HYDROGEN ON A LARGE SCALE. INSPIRED BY THE CHALLENGE OF ENERGY TRANSITION AND THE PRESERVATION OF THE ENVIRONMENT, THE NORMANDY BODY BUILDER BASED IN DUCEY AND AVRANCHES INTRODUCES FOUR NEW PRODUCT RANGES.
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he ROAD collaborative project, which enabled CHEREAU to produce its first hydrogen-powered semi-trailer, was finally realised at the Solutrans exhibition in November 2019. This project highlighted numerous technologies that were leveraged to develop ‘From ROAD to REAL’ – an ambitious program to take ROAD’s tech to the next level. The specialist manufacturer unveiled four new product ranges at Solutrans, including: INOGAM EVO, an overhaul project of the CHEREAU core range (which allows operators to save nearly 430kg of payload for the
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market reference refrigerated semi-trailer); CHEREAU Next, the first multiplexed refrigerated semi-trailer which benefits from the INOGAM EVO program and which can be coupled to all tractors on the market thanks to a new module. The company has also developed the CHEREAU Performance range using the
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VIP ‘Vacuum Insulated Panels’ technology, a breakthrough innovation based on vacuum (reportedly the best insulator on the market) and which makes it possible to achieve a record level of insulation performance with a K coefficient of 0.27. It takes the refrigerated semi-trailer into a new mode of use that is even more sustainable and more efficient, while limiting the energy requirement for a better respect of the environment. Reinforced by the ROAD tests which have shown that the Total Cost of Ownership (TCO) of this technology proves to be completely realistic and relevant for a decarbonated transport activity, CHEREAU is now launching the industrialisation of hydrogen through the CHEREAU Hydrogen Power H2 range. CHEREAU plans to produce 10 vehicles by 2023 and to switch nearly 25 per cent of its production to hydrogen vehicles within the next 10 years. To achieve this, the bodybuilder has surrounded itself with various partners. In early 2020, CHEREAU signed a threeyear partnership as an official supporter of Energy Observer, the first hydrogen boat around the world. A concrete and meaningful partnership, CHEREAU is clearly committed to the industrialisation and marketing of hydrogen-powered refrigerated vehicles. Its strategy goes further, as it is also committed to promoting the hydrogen
industry in France through the active promotion of this clean energy source. On the industrial side, CHEREAU is making progress in setting up its hydrogen vehicle production structure via a technical partnership with H2SYS and is continuing operational tests via a partnership with the Delanchy transport group. For Damien Destremau, Chairman of THE REEFER GROUP and of CHEREAU: “Within 10 years, 25 per cent of the production of our company will be hydrogen vehicles, a proportion that could rapidly increase depending on the speed of deployment of the hydrogen supply network. “This project is therefore part of a global environmental approach, which is also found on another scale on our vehicles,” he said. “We are working in parallel on the energy frugality of CHEREAU vehicles with VIP insulation which allows a 25 per cent reduction in the operating time of the refrigeration units. Weight reduction is another area of ongoing progress. All of these projects represent major investments, essential to ensure that the turnaround in the energy transition is taken as quickly as possible. This is a clear choice by our company and we are convinced that our customers will understand, support and encourage it.” CHEREAU has also recently launched the CHEREAU H2ColdChain project, a bold program that aims to provide transporters with hydrogen refrigerated semi-trailers and, as soon as possible, their tractors, as well as hydrogen production and refilling points. To compensate for the absence of a station and the limited autonomy of the first hydrogen trucks and to guarantee a maximum decarbonated hydrogen, H2Coldchain proposes to integrate a production and distribution station on each industrial site of the cold logistics chain. Due to photovoltaic panels on roofs or shades, an electrolyser and a storage tank, it is possible to produce a significant part of green hydrogen locally. A single transport company can hardly achieve the energy switch alone. H2Coldchain aims to gather all the players of the cold chain: Agri-food industry, transport companies and supermarkets in order to co-create and to go from diesel to H2 refrigerated cold chain. “We are already engaged in the energy transition, but this is not enough,” said Damien Destremau, President of The Reefer Group and CHEREAU. “We still need to accelerate and federate, because if we want the world to change, more of us need to get involved. In mid-April, in response to the call for expressions of interest issued by the French government, we proposed a hydrogen cold chain logistics project called H2Coldchain. This project has received many letters of support. So, I am also launching an appeal: agri-food manufacturers, temperature-controlled transporters, distributors, join us. Let’s totally decarbonise our industry by 2030, it’s possible, the technologies are ready.” www.chereau.com
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STREN PR O D U CT & I N N OVATI O N S H O W C A S E
THROUGH COOPERATION VDL WEWELER, FOR ALMOST A CENTURY, IS RENOWNED FOR ITS EXPERTISE IN THE DEVELOPMENT OF AIR SUSPENSION SYSTEMS, AXLE LIFTS, PARABOLIC SPRINGS AND SPECIAL NON-DRIVEN AXLES. THE NETHERLANDS-BASED OEM IS PROUD TO INTRODUCE A NEW MODULAR BOLT-ON SOLUTION AND REVOLUTIONARY LIGHTWEIGHT AIR SUSPENSION RANGE – THE MBS OMEGA.
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he MBS Omega air suspension is a re-alignment free 9- / 10-tonne air suspension that has been developed in-house in accordance with VDL Weweler’s MBS philosophy: modular, multi-purpose extreme light weight with minimal maintenance. Within the Omega range several hanger bracket and tail-end concepts will be available depending on the needs of the customer. All are based on a system with a Ø146 axle beam. The air suspension is clamped around the axle either with the option of
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using a u-bolt and a main bolt at the rear or with two u-bolts. The clamping, according to VDL
GTH
PR O D U CT & I N N OVATI O N S H O W C A S E
Weweler, is held into position by a recess in the axle beam offering unique modularity in the spring track or by means of a completely new developed fixating method which gives each customer the possibility to use the new range in combination with almost every Ă˜146 axle beam in the market. The system houses a revolutionary new shaped spring steel trailing arm which, in combination with the other elements of the suspension, make it one of the lightest suspensions available with a weight of under 100kg per axle row. It will cover a ride height range of 180mm up to 550mm. The hanger bracket design includes a new pivot bush design. The classic pivot bush is eliminated and replaced by a forged cone. The two side plates are bolted together to a patent pending chassis mounting unit with a unique alignment. Next to this new type of hanger the conventional hanger brackets will also be available. For standard systems there are two tail-end options. A fixed one-piece design mounted with two u-bolts and a two-piece design with an axle seat plus patented offset bellow support similar to the original MBS suspension.
The hanger bracket and the tail-end configuration can be customer specific and tailor-made for the needs of the customer. For the highest ride heights and the tipper applications a special version is developed with a short tail-end. The complete range will be suitable for nine tonnes on- and off-road single and twin tyre applications, 10 tonnes on- and off-road single tyre applications worldwide and 10 tonnes twin tyre on-road applications in Europe. www.vdlweweler.nl
FAST FACT VDL Weweler has already produced and supplied more than three million air suspension systems in this century.
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PR O D U CT & I N N OVATI O N S H O W C A S E
HOME
FOR
SWEDISH INNOVATOR, QUICKE, IS THE LATEST BRAND TO JOIN THE JOST FAMILY AND CONTINUES TO BREAK NEW GROUND IN AGRICULTURAL BUSINESS. CLEVER ENGINEERING AND FUTURE-PROOF SERVICE CAPABILITIES MAKE THE Q-SERIES FRONT LOADER AN IMPRESSIVE SIGHT TO BEHOLD IN THE FIELD.
T
he agricultural industry in Europe produced a total output value of €427 billion in 2017 – up from €400 billion in 2016. Half of this output, according to a report via the European Commission, is attributed to crop production such as vegetables and horticultural plants, while almost 40 per cent came from animals and animal products like milk. Agricultural services and secondary activities contributed 8.6 per cent of the total output value. Of the countries surveyed, France was the biggest agricultural producer in the European Union in 2017 with 16.8 per cent of the total output followed by Germany (13.3 per cent), Italy (12.8 per cent) and Spain (11.5 per cent). Meanwhile, agricultural productivity has gained renewed interest by industry to essentially achieve more with less. One economic outlook suggests that while there is a belief in the progress of technology to improve resource efficiency, this is reported to be challenging in agriculture, as working with living organisms in outside conditions introduces variability and limits to growth. High productivity, in this context, is measured by Total Factor Productivity (TFP) by indicating improved output over input ratio. This is considered to be more encompassing than partial productivity indicators like labour.
TFP in Europe, as a result, has increased over time. It surpassed 1.0 per cent per year between 1995 and 2006 but slowed to around 0.8 per cent between 2005 and 2015. Ultimately, when comparing TFP
Quicke Q-series shows how clever engineering makes all the difference.
FAST FACT Equipment specialist, JOST, agreed to acquire Ålö Holding AB (Ålö) – the company that develops, produces and markets agricultural applications under the Quicke brand – late last year. This acquisition has transformed JOST’s existing agricultural business into another cornerstone of the group.
5 6 / G L O B A L TR A I L E R / I SS U E 5 4
PR O D U CT & I N N OVATI O N S H O W C A S E
HARVEST FAST FACT
A digital integrated front loader that maximises a tractor’s potential.
growth with productivity indicators, labour productivity was found to be the major contributing factor. Driven by its motto ‘work smarter, not harder’, Quicke develops and manufactures front loaders that bolster the efficiency of farming operations across Europe. The Q-series, according to JOST, also shows how clever engineering makes all the difference when it comes to high productivity work. “These front loaders come with outstanding visibility, optimised work angles, and smooth and easy implement changes,” JOST says. “Backed up with the intelligence of the assistance system Q-companion, a highfunctioning and more efficient front loader develops. This efficiency is highly needed, because already by the 2050, the world’s farms will need to sustain a population that’s 9.7 billion strong. That’s 30 per cent more mouths to feed than today. With the help of the Q-companion, the farmer has full control of their daily business.” This Q-series has an in-built weighing system that can be used to measure the weight of the load it is carrying while lifting. Also, the vehicle operator has access to a status monitor to ensure optimal implement position and load. Maintenance notifications also help to increase the lifespan of the equipment by prompting equipment owners and users to take appropriate action. The Q-series range is supported by an app and cloud service which can
Quicke’s Q-series front loaders are designed to harmonise with a modern farmer’s tractor, introducing a digital platform called Q-companion. This all-in-one digital solution ensures effective and safer front loader operations while providing a support system that offers a new level of assistance by combining monitoring of the implement position, loaded weight and low maintenance status into one user-friendly display.
be used to export weighing results from the Q-companion display to a computer, tablet or other device. Service quality, customer orientation and sales excellence form the basis of Quicke’s success according to JOST CEO, Joachim Dürr. He adds that the acquisition of Quicke is a real benefit 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 high-quality products and intelligent system solutions. The acquisition of Quicke fits perfectly into our strategy and opens up new growth opportunities for us. Even in the current situation, we are already benefiting strongly from this, as the agricultural market has proven less susceptible to the fluctuations caused by the current crisis.” www.jost-world.com
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PR O D U CT & I N N OVATI O N S H O W C A S E
FRONT
ON THE
FOOT
THE COVID-19 PANDEMIC HAS PRESENTED AN UNEXPECTED TURN OF EVENTS WORLDWIDE, PROMPTING KÄSSBOHRER TO CREATE FAST, RATIONAL AND EFFICIENT SOLUTIONS.
A
rapid digital transformation along with efforts to control climate change have accelerated as a result of the coronavirus outbreak but both processes have also seen significant disruption. For Board Member, İffet Türken, digitalisation has gained considerable importance, especially with remote communication leveraging new technologies. “We use ERP / SAP systems effectively in our production process and operational processes,” she said. “Companies that have sound IT infrastructures like us were more able to adapt to digital communication in their planning and operations.” Kässbohrer has been synonymous with innovation, continuing all R&D activities and investments as a business culture which enables the OEM to cope calmly and systematically despite the negative pandemic impact. “Kässbohrer manufactures the widest product range and meets the needs of its customers in more than 55 countries,” Türken said. “With our stakeholders including our suppliers, universities, associations and consortiums we further trailer technology constantly. During the pandemic, we cooperated with all of our customers, suppliers and stakeholders on non-business as well, and we established collaborations on common health and safety.” Türken explained that the Covid-19 pandemic revealed how fragile the supply
Kässbohrer hydraulic low-bed with eight axles K.SLH 8.
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chain is, specifically in terms of meeting the needs of the individual as well ensuring the continuity of production. “While we deliver products and services to more than 55 countries, foremost Europe, from our four production plants and nine main offices, we manage a global operation and with this pandemic, we experienced all difficulties and played an active role in their solutions. We will work to strengthen and sustain the supply chain in Europe and neighbouring countries and ensure the continuity of our efforts in this period.” At a social level, Kässbohrer worked with associations for the greater good. “The fast-paced solutions, digitalisation, sustainability and solidarity that we developed during this process are important for both the industry and sustainability – our efforts will be to build on these competencies,” Türken said. “We are a very resilient group and being able to function in very different conditions enables us to overcome adversity
PR O D U CT & I N N OVATI O N S H O W C A S E
and continue to excel.” The Covid-19 pandemic called for the cancellation of this year’s highly anticipated IAA Commercial Vehicles Show in Hannover, Germany. Kässbohrer was planning to exhibit its latest product, component and systems innovations which it has applied to Trailer Innovation 2021 Awards. The OEM is proudly nominated in five categories: Body, Concept, Component, Smart Trailer and Environment. The 45’ Coil Swap Body K.SWAU CC was nominated for the Body category and is specified for intermodal coil transport with its innovative chassis design with total 30-tonne capacity. The tests performed during development have proven safer swap designs and resulting design changes are now the technical requirements for mandatory certifications UIC 592/IRS 50592 and IRS 50596-5. The Curtainsider K.SCX L is competing
ABOUT İFFET TÜ RKE N Kässbohrer Board Member, İffet Türken, has more than 25 years of professional experience internationally in the commercial vehicles and semi-trailer industry. She has held several executive leadership positions at Kässbohrer and currently acts as Chief Networking Officer to bring all stakeholders together. As the OEM provides the widest product range worldwide, this necessitates close links to different segments. Türken is Vice President of the Transport section for the European Association of Abnormal Road Transportation and Mobile Cranes (ESTA).
Lightest swap body in the market K.SWAU CL.
in the Concept category and features a dynamic wheelbase of 14,980mm in length. The optimal wheelbase chassis design is uniform and enables safe load distribution whereas system integration with control systems allow the heavy vehicle operator to turn safely on EU standard road curves. In the Component line-up, Kässbohrer’s multifunctional rear underrun protection device RUPD-5K1 comes to the forefront with its secure and foldable design. RUPD-5K1 can be adjusted at different up and down positions while fulfilling its protection task for semi-trailers as a rear bumper in accordance with the ECE.R58.003 regulation for type approval. It also provides solutions to operational efficiency preventing docking, ferry, intermodal, discharge and tyre change problems. The Kässbohrer Advanced Driver Assistance Systems (K-ADAS) was nominated in the Smart Trailer category and stands out with four features comprising seven technologies of which 50 per cent are new to the trailer industry and are compatible with existing truck ADAS. This contributes to the development of the smart trailer that will be necessary when fully autonomous driving becomes standard. As for the Environment category, Kässbohrer’s Coated Hygiene Reefer prevents dirt contamination with a hydrophobic coating and has the potential to save up to 1.62 million tonnes of water annually with the freeing up of 60,000 work hours for repurposing. “Our IAA shows naturally showcase the latest developments in our product segments that are ingenious solutions for our customers, guaranteeing efficiency and safety,” Türken said. “Among our 20 new products to be launched beginning September, our general cargo vehicles including our complete intermodal product range showcases load factor and load capacity optimisations as well as the reduced weight with special urban solutions. Our tank and silo vehicles showcase developments for different sectors from food transportation to chemical and petroleum products. Our low-bed range showcases loading and manoeuvrability optimisations with the addition of Kässbohrer’s first time suspension systems. As we design, test and manufacture for our customers in the EU region, we also specialise in Scandinavian and Russian markets with dimension capacities larger than EU standards. Our new launch vehicles for these markets build on our years-long expertise of customer satisfaction and will deliver on robustness, safety and efficiencies that Kässbohrer customers in these regions deserve.” www.kaessbohrer.com
W W W. G LO B A LT R A I L E R M AG . C O M / G L O B A L T R A I L E R / 5 9
A NUM GAME UNIVERSAL DISRUPTORS HAVE DRASTICALLY ALTERED THE TRAILER MANUFACTURING STATUS QUO. BRACE FOR A NEW WORLD ORDER – AT LEAST WHERE PRODUCTIVITY IS CONCERNED.
T
he global community shares a common threat to its economic viability and the health of its citizens, Covid-19. The pandemic has seen governments and businesses respond with an extraordinary range of measures including short-term facility closures, the enforcement of social distancing, sanitising hands and surfaces as well as the requirement to wear masks and face shields when social distancing cannot be properly maintained. Coronavirus is arguably among the top disruptors for trailer manufacturing as well as manufacturing in general. The health threat is ongoing, and the end is not yet in sight, but with every challenge comes an opportunity and this has been the prevailing mindset of the world’s leading trailer builders making the best of a somewhat grim situation. Now more than ever, during these unprecedented times, transport and logistics companies are turning to OEMs for new equipment to satisfy everything from contract work to essential services – the critical supply lines that keep food, pharmaceuticals, materials and all supplies to where
6 0 / G L O B A L TR A I L E R / I SS U E 5 4
they are needed most. Tax asset writeoff incentives and stimulus packages to support ambitious infrastructure projects has also played a part in boosting net trailer order projections for the near future. These freight tasks call upon the use of container chassis or skeletal (skel) trailers, dry freight vans, road tankers, reefers, high productivity combinations, tippers and special purpose vehicles. Despite the widespread impact of Covid-19, the trailer manufacturing industry, and the road transport sector it supports, is thriving. In light of this level of disruption worldwide, Global Trailer has yet again embarked on its annual quest to review the
SPECIAL REPORT
BERS state of the trailer manufacturing scene purely based on productivity figures. This year’s Top Global OEM Ranking list uses a total production value as a primary metric (see breakout box for an explanation of the methodology). It should be noted there are a large number of specialist OEMs in the global mix that work towards specific goals which may be at odds with simply producing at maximum capacity. Transporter Industry International Group, for example, produces special trailers featuring Self Propelled Modular Transporters (SPMTs) for the transportation of unique goods at excessively high payloads such as industrial infrastructure or even space shuttles. It holds the world record in transporting goods of more than 17,000 tonnes (2017). This OEM is absent from the ranking list because the manufacturer chose not to disclose a total production number. This list, therefore, does not compare revenue or business profitability, but instead should serve as a snapshot of the current status quo on output alone. Also, total production numbers sourced through direct industry engagement or through publicly available surveys and similar reports are sometimes skewed. This special report demanded trailer production numbers only however several OEMs supplied information that may include the production of other equipment like truck bodies and/or intermodal containers. The editorial team, on several occasions, attempted to distinguish between the trailer production count and the ‘other’ to ensure a more refined and realistic total for accurate reporting. Meanwhile, other OEMs have opted not to disclose production numbers due for various reasons including confidentiality and stock exchange compliance or simply did not respond prior to deadline. Trailer manufacturing productivity around the world year-on-year has resulted in mixed results, understandably so, due to the Covid-19 pandemic. Well ahead of the competition, CIMC Vehicles Group continues to remain supreme even with an estimated 8.0 per cent drop in its total trailer production for the past financial year. Learn more about this Chinese juggernaut in our cover story. Yet again, Hyundai Translead takes the second position albeit with a
slight improvement year-on-year based on industry estimates. Last year, Germany’s Schmitz Cargobull followed up for third place however the OEM was not able to confirm data by our deadline. While North America’s Utility and Great Dane show impressive resilience in their output, Wabash National holds firm despite a year-on-year dip in production. Krone, dropping down to position six, confirmed a general slowdown in the markets that it operates in, particularly in the second half of 2019 due to insecurities in global trade development i.e. US versus China, the closure of the Russian market
M ETHODOLOGY While the annual Top Global OEM Ranking List has been compiled with the utmost commitment to accuracy and professionalism, it is still supplied without liability. All up, we reached out to more than 100 OEMs globally since June 2020. The official data submission deadline was 14 July 2020. If we were not able to obtain an official production number directly from the OEM – which was our preferred source – we consulted a range of industry sources to obtain an estimate. If no estimate was available, the brand was not considered. Build numbers cover the timeframe between 1 July 2019 and 30 June 2020 unless stated otherwise.
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for used semi-trailers older than three years and the transformation process of the automotive industry (which is especially important in Germany). Krone was hoping for these markers to turn around in January-February 2020, and there were signs of recovering markets, but then Covid-19 played its disruptive part. South America’s Randon comfortably sits in ranking position seven – a new listing. The OEM’s production volume includes work carried out at six industrial plants – four are located in Brazil: in the cities of Caxias do Sul, Erechim, Chapecó and Araraquara, one is located in Argentina in the city of Rosario and one is located in Peru in the city of Callao. Banking on its international strategies, Wielton Group delivers the goods albeit at a noticeable drop in year-on-year productivity which is attributed to Covid-19 challenges. Regardless, the Polish OEM takes eighth place. Stoughton rises a rank (position nine) while Kögel and TIRSAN Group cap off the 10,000-league. Interesting to note that the German and Turkish OEMs respectively saw a dramatic shift in the difference between their 2019 and 2020 results. Brazil makes another appearance with Librelato in 12th place. This proud OEM recently graced the covers of Global Trailer and detailed its tremendous change over the years from a humble sawmill to becoming an industrial contributor to South America’s economy. In the face of slowdown in the North American markets, and the unexpected impacts of the Covid-19 crisis, Manac’s output decreased year-on-year but continues to stand its ground at ranking position 14. Equipment demand from the Western Canadian energy sector has been highly impacted by the sharp decrease in oil demand, according to Manac, while other sectors such as food distribution and LTL have been doing ok. It will be interesting to monitor the output of OEMs like Manac as we edge closer to recovery. GORICA is a leading developer and manufacturer of semi-trailers in the Middle East and Africa and has maintained consistency with an output of 6,500. For the past three decades the OEM has specialised in the production of tipping semi-trailers and rigid mounted tipping bodies. These results were closely followed by Spain’s Lecitrailer which launched Evolution, a new generation of refrigerated trailing equipment, in May this year. This updated and modern reefer is reported to be twice as robust and durable than the previous version. Lecitrailer released its first complete refrigerated trailer (chassis and bodywork) eight years ago. Prior to this development, Lecitrailer claims to be the largest manufacturer of refrigerated chassis that has collaborated with third companies to integrate the build into its van. With the incorporation of Ega into the Lecitrailer Group, it began to manufacture its own complete refrigerated vehicles. The Reefer Group, at position 20, comprises France’s CHEREAU (3,714) which is focused on industrialising its hydrogen-powered portfolio and SOR (1,147) – a company that was founded by Italian and Spanish entrepreneurs in 1970 and continues to produce refrigerated vehicles. Despite difficult economic conditions, Tonar holds steady at position 24. Beyond Russia, Tonar exports trailers to ‘hard working’ countries such as Western Africa and the Middle East – countries, according to General Manager Denis Krivtsov, that understand what a real overload is. He
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reckons standard European equipment is not adequate to work long-term in these particular areas, and instead develops trailing equipment that is suited for rigorous use under difficult conditions. Special mention to GRW among the new listings for persevering in the South African market. GRW is based in Worcester, which is approximately 120km from Cape Town in the Western Cape, and the trailer manufacturer also has a sales office in Johannesburg. The OEM manufactures tankers for the fuel, dry bulk, animal feed and specialised tankers for chemical transport and also produces closed body trailers (both dry and refrigerated) and curtainsiders for the general freight market. The closed body trailers are SKD kits from its partner Schmitz Cargobull in Germany, which are mounted to the locally built chassis. Overall, there has been considerable fluctuation with productivity figures. The majority of the OEMs that responded to this task echoed Covidrelated disruption and how it has directly impacted trends in consistent, steady and stable growth. It’s also evident, looking broadly at production, that there have been positive outcomes in businesses adapting processes and mindsets to continue to deliver the vehicles that transport and logistics operators need to keep freight flowing. In the wake of economic recovery worldwide, these numbers will be vital in tracking how manufacturers move forward. www.globaltrailermag.com
DISCLAI M E R Throughout the production process, it was brought to the Global Trailer editorial team’s attention that a portion of the data provided may also contain truck bodies or intermodal containers. Global Trailer was not able to verify if any other figure was biased and thus decided to trust in the respective OEM as a source.
RAN K
OE M
COU NTRY
TOTAL PRODUCTION
2 0 19 RESU LT
2 0 19 RAN K
CHANG E MOVE M E NT
1
CIMC Vehicles Group
China
149,760
137,762
1
9%
2
Hyundai Translead
US
66,090
65,700
2
~1%
3
Utility Trailer Manufacturing
US
51,900
48,800
7
6%
4
Great Dane
US
50,500
49,000
6
3%
5
Wabash National
US
45,100
58,600
4
-23%
6
Krone
Germany
37,119
56,200
5
-23%
> >
7
Randon
Brazil
23,260
-
-
-
New
8
Wielton Group
Poland
17,492
23,253
8
-25%
>
9
Stoughton
US
16,700
15,830
10
5%
>
10
Kรถgel
Germany
10,647
18,920
9
-12%
>
11
TIRSAN Group
Turkey
10,150
14,350
11
-29%
>
>
12
Librelato
Brazil
8,490
9,870
-
-14%
New
13
EnTrans International
US
7,700
7,680
14
~1%
>
SPECIAL REPORT
14
Manac
Canada
7,200
8,750
12
-18%
15
Fontaine
US
6,900
8,540
13
-19%
16
GORICA
UAE
6,500
6,500
15
-
> > >
17
Lecitrailer
Spain
6,453
6,560
-
-2%
New
18
MAC Trailers
US
6,200
5,994
17
3%
>
19
Pitts Enterprises
US
4,865
4,800
19
~1%
20
The Reefer Group
France
4,861
5,293
18
-8%
21
Afrit
South Africa
4,533
4,755
20
-4%
22
Reitnouer
US
3,900
3,695
21
5%
23
East Manufacturing Co
US
3,240
3,393
22
-4%
24
Tonar
Russia
3,087
3,065
24
1%
25
Timpte
US
2,900
3,080
23
-6%
>
26
Fruehauf de Mexico
US
2,700
-
-
-
New
27
Kentucky Trailer
US
2,600
1,866
-
29%
New
28
Trail King Industries
US
2,400
2,400
25
-
29
Strick Corporation
US
2,300
6,100
16
-62%
> >
30
GRW
South Africa
1,868
1,520
-
19%
New
31
Felling Trailers
US
1,790
1,660
-
2%
New
32
XPO Logistics
US
1,770
1,774
-
~1%
New
33
Doepker Industries
US
1,500
1,900
-
-21%
New
34
Premier Trailer Manufacturing
US
1,400
1,080
-
23%
New
35
Talbert Manufacturing
US
1,270
1,060
-
17%
New
> >
> >
> >
>
>
>
> > > > >
>
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 / 6 3
WORLD EVENTS
TRUCK TRAILER AND TYRE EXPO 2020
5-7 NOVEMBER
CIDCO Exhibition and Convention Center Mumbai, India The Truck Trailer and Tyre Expo (TTT) has been connecting all the stakeholders in the Indian automobile sector including manufacturers, suppliers, distributors, OEMs and members of the Allied Industry and stand as a meeting platform between the international community and the Indian Automobile stakeholders to meet each other and establish business communication. The event aims to bring together the industry players for mutual benefits and eventually bring a developing change to the industry over the period of time.
AGROTECH 2020 FAIR
6-8 NOVEMBER Poland Agrotech at Targi Kielce is the largest agricultural technology exhibition in Poland. The International Agricultural Technology Fair is also the largest exhibition in the country among all industries. The numbers speak for themselves: record area in 2019 - over 66,000 square metres and over 75,000 visitors. A comprehensive, international exhibition and over 750 exhibitors from 21 countries of the world is another advantage of the Agrotech fair in Kielce according to Grzegorz Figarski, Project Director. www.targikielce.pl/en/agrotech
www.trucktrailerntyreexpo.com
TRANSPORT SCANDINAVIA 2021
1 5 - 17 A P R I L Herning, Denmark Transport 2021 is an inspiring fair for all those with roots in the transport industry. This is the place to find new vehicles, new equipment, new services and new ideas. The Transport trade fair was launched in 1988. Since then more than 450,000 professionals from the transport industry have attended the event. www.transport-messen.dk 64 / G L O B A L TR A I L E R / I SS U E 5 4
I N N OTRAN S 2 02 1
27-3 0 APR I L Berlin Exhibition Grounds Berlin, Germany InnoTrans is an international trade fair for transport technology and takes places every two years in Berlin. Subdivided into the five trade fair segments Railway Technology, Railway Infrastructure, Public Transport, Interiors and Tunnel Construction, InnoTrans occupies all 41 halls available at Berlin Exhibition Grounds. The InnoTrans Convention, the event’s top-level supporting program complements the trade fair. www.innotrans.com
KEEP A LOOK OUT Elmia Lastbil 2021 2-5 June Jönköping, Sweden www.elmia.se/en/lastbil
INTERMODAL ASIA 2021
16-18 MARCH
Transport Logistic China 2022 15-17 June Shanghai, China www.transportlogistic-china.com
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.
Heavy Vehicle Transport Technology Symposium 16 TBC China www.road-transport-technology.org/ conferences/china-2020
www.intermodal-asia.com
TRANSPORT LOGISTIC 2021
4-7 MAY
Messe München Munich, Germany One of the leading transport and logistics events in Germany, Munich’s aptly named Transport Logistic show saw more than 2,374 exhibitors and some 64,000 from 125 visitors from 125 countries and regions in 2019. www.transportlogistic.de
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 / 6 5
M E GATR E N D S
A GLARING
EMISSION DEMAND FOR SPECIALISED INFRASTRUCTURE IS INCREASING AS MORE ZERO-EMISSION VEHICLES HIT EUROPEAN ROADS. THE TIME TO FUTURE-PROOF REST AREAS IS NOW.
T
he European Commission is developing new standards for parking areas in Europe to ensure decent resting conditions for heavy vehicle operators. In the context of the European Green Deal and the urgency to decarbonise the road transport sector to reach climate neutrality in 2050, the standards proposed by the Commission, according to the European Automobile Manufacturers Association (ACEA), fail to take the future needs of zero-emission trucks into account. ACEA has partnered with 28 other stakeholders to write a letter to the Commission and representatives of the EU members’ states to express these concerns. The letter, dated 7 July and addressed to the European Commission’s Directorate General for Transport and members of the expert group for safe and secure trucks parking areas, emphasises the need to future-proof parking areas to accommodate safe and good resting conditions along with appropriate infrastructure to facilitate heavy vehicle charge/refuel requirements. A 2019 study found that 95 per cent of equipment used on refrigerate trailers in Europe are equipped with a plug but cannot charge or run electricity during rest times due to a lack of infrastructure. The reefer can switch from diesel to electric operation when connected to a 400V net when it is parked. Also, all parking areas with access to an electrical plug when connected to an electrical plug for electric cooling is reported to save 69 per cent in C02, 93 per cent N0x and 96 per cent of all emissions per net operating hour. Further emissions savings would result as the share of renewables in the power mix increases while also improving the quality of a mandatory driver’s rest periods due to significant reduction in noise and vibration when diesel engines are off. The joint letter urges the Commission to consider the following aspects in the delegated acts on standards for safe and secure parking: assessment of the existing grid capacity, optimisation by location for new parking sites, plug-in stations for reefers, and charging requirements to be linked to CEF funding. This development follows ACEA Director General Eric-Mark Huitema’s
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concern that trucks will be left behind in Covid-19 recovery plans. Policy makers, according to Huitema, are focused on passenger cars, the rollout of charging points and re-fuelling stations across the European Union (EU) while specific infrastructure requirements of alternatively powered heavy vehicles are being neglected. The ACEA has been calling for the introduction of EU-wide purchase incentives to boost demand in the wake of the Covid-19 pandemic. Huitema said demand-stimulus schemes would help re-launch sales and resume production at manufacturing sites in Europe. “We believe that the European Commission should temporarily fund fleet renewal schemes across the EU, and that should be partially done through the new EU Recovery Fund,” he said. “At the same time, the Commission also has an important role to play in coordinating the national programs. It must safeguard harmonised market conditions across the EU, as well as ensuring that incentives are provided for all vehicle types and categories. So far, we have seen various national renewal schemes come to fruition, including major monetary commitments by Germany, France, and Spain.” www.globaltrailermag.com
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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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MIND
A KEY TALKING POINT OF THE 2014 IAA COMMERCIAL VEHICLE SHOW, THE BRUISED RUSSIAN ECONOMY HAS FAILED TO TURN ITSELF AROUND IN TIME FOR THE NEXT EDITION OF THE ICONIC EVENT. WILL IT STILL CONTINUE TO OWN THE CONVERSATION, THOUGH? [ Story by Sebastian Grote ]
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uddling through the longest recession since the turn of the century, Russia has racked up a sizeable budget deficit and is on track for yet another year of negative growth. Meanwhile, the prospect of fiscal relief is growing distant, with oil in a bear market after closing below $40 a barrel in August – theoretically making for a highly dramatic narrative in the lead-up to the largest transport industry gathering on the planet. But if you ask Denis Krivtsov, head of Russian OEM, Tonar, the country’s fragile economic state doesn’t necessarily mean it will become as prominent a topic as it was in 2014, when the Ukraine conflict and the annexation of Crimea were still fresh in mind and the European Union (EU) put an abrupt hold on west-east trade. According to Krivtsov, much of the western trailer community has since found
new growth potential in the heart of Europe and the still-sprawling east of the continent, leaving Russian businesses alone in dealing with what could be the most severe market slowdown in a decade or two. As a result, he says it is now up to the domestic transport equipment community to consolidate ahead of the parliamentary election in mid-September, which is hoped to give the battered economy a much-needed boost. “The Russian economy hasn’t really improved much since the last instalment of IAA. In fact, many local businesses have since folded as they simply refused to learn from the last crisis,” he explains – pointing to the EU’s recent decision to prolong economic sanctions against Russia until 31 January 2017.
In August 2016, the Financial Times publically wondered whether Amazon CEO Jeff Bezos was intending to drive everyone else in US retail crazy. The reason: Bezos is on a mission to re-define the classic concept of retail logistics. Instead of outsourcing the whole process, he set up a complex in-house transport network that has been aggressively expanding its reach, capabilities and capacity in the logistics and distribution arena over the past year or so. As part of the process, the Seattlebased company is now operating thousands of trailers emblazoned with Amazon’s logos acrosss North America. In Europe, Amazon is expanding rapidly as well, potentially making it a key talking point of the next IAA.
PEOPLE TO WATCH
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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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