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ISSUE 10 12 AUGUST 20

PUBLICATION LICENSED BY IMPZ

SPECIAL INTERVIEW

ON THE BLOCK

FBA building Doha’s port

BALANCING ACT

Liebherr mobile and tower

BE A BETTER SELLER The dos and don’ts of selling

PLUS: ACROSS THE INDUSTRY

DIESEL POWERED Brand awareness with Saudi Diesel

* NEWS & VIEWS * OFFROAD TEST * THE LAST WORD * AND MORE


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Putzmeister Concrete Pumps GmbH · 72631 Aichtal · Germany · www.putzmeister.com

Putzmeister Middle East · Jumeirah Lakes Towers (JLT) · Swiss Tower · Office 1403 · P.O. Box 262657 · Dubai, U.A.E. · Tel: +971 (0) 4 454 27 83 · Fax: +971 (0) 4 454 27 82 For inquiries: (General) Jens Bawidamann, Regional Director E-Mail: BawidamannJ@pmw.de Mobile: +971 (0) 506009972

(Bahrain, Kuwait, Saudi Arabia) Bastian Dreher, Sales & Project Manager E-Mail: DreherB@pmw.de Mobile: +971 (0) 501009985

(Oman, Qatar, U.A.E.) Derong Li, Sales & Project Manager E-Mail: LiD@pmw.de Mobile: +971 (0) 504818865


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Contents

18 page 18 TOWERS GET MOBILE

Liebherr isn’t afraid to innovate to get growth in the Middle East and is applying its success with mobile cranes to its tower sales operation.

IS S U E 1 0 012 AUGUST 2

06

EDITORIAL Time to put together a Libya strategy.

08

NEWS What’s happening across the region in construction machinery?

14

NEWS ANALYSIS Has the floor fallen out of China’s construction boom?

17

EXPERT OPINION The trouble with finance.

18

GOT IT COVERED CMME takes a look at how Liebherr’s cranes are learning from its mobile crane operation.

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8

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BACK ON THE BLOCK Taking a tour of FBA’s concrete pouring operation on the mammoth New Port Project in Doha.

30 SAUDI SELLERS Saudi Diesel is definitely brand-conscious.

34 BEING ACCESSIBLE Muneer Chan Basha explains Haulotte’s rapid rise in the Middle East access platform market.

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42

Raw power

40 NEW RELEASES ROUND-UP What’s hot in new machinery this month? Page 45 SECTOR ANALYSIS: TECHNOLOGY Your guide to the latest in the GPS technology. Page 48 OFFROAD TEST Getting the tour of Volvo’s new middle-weight pipelayer. Page 53 BE A BETTER SELLER Your guide to the dos and donts of selling Page 57 FIND ME A DEALER: BAHRAIN Guide to the dealers in Bahrain. Page 59 THE LAST WORD Kubota wants to get people off their phones. Page


Editor’s Letter

PUBLISHER DOMINIC DE SOUSA GROUP COO NADEEM HOOD MANAGING DIRECTOR RICHARD JUDD EDITORIAL EDITOR STEPHEN WHITE stephen@cpidubai.com +971 4 440 9110 DESIGN DIRECTOR RUTH SHEEHY ruth@cpidubai.com GRAPHIC DESIGNER GLENN ROXAS glenn@cpidubai.com

DON’T LET LIBYA BE A FORGOTTEN OPPORTUNITY

JUNIOR DESIGNER PERCIVAL MANALAYSAY

A

COMMERCIAL DIRECTOR MICHAEL STANSFIELD michael@cpidubai.com +971 4 440 9128

ugust marks the anniversary of the capture and death of Colonel Muammar Gaddafi, the former leader of Libya. Alongside the capture of the capital Tripoli by the National Liberation Army it was an event that marked the beginning of the end of a regime and the start of Libya’s future.

CONTRIBUTORS DAVE REEDER, KAREN YOUNG ADVERTISING PUBLISHING DIRECTOR RAZ ISLAM raz@cpidubai.com +971 4 440 9129

CIRCULATION DATABASE AND CIRCULATION MANAGER RAJEESH M rajeesh@cpidubai.com +971 4 440 9147 PRODUCTION

As I type the country is currently forming its first legitimate government in 47 years and construction is high on the agenda. Unfortunately the road ahead is paved with pitfalls.

PRODUCTION MANAGER JAMES P THARIAN james@cpidubai.com +971 4 440 9146 DIGITAL

The lifting of sanctions almost a decade ago ushered in a period of investment in construcion funded by the country’s enviable supply of oil and gas and private investment. While the regime of Gaddafi was deplored and deposed by the country, the newly formed coalition government knows that it needs to prove that it can return to the secure and stable state to encourage foreign investors, developers and contractors back to Libya.

www.constructionmachineryme.com

We’ve seen several aborted attempts by companies to return staff to the country, with many have returning home unimpressed. However the oil and gas industry is slowly reaching its targeted output and there are signs already that the country is prepared to clear the way for the wave of construction investment.

+971 4 440 9100

The Turkish government finally won its battle to receive $700 million in compensation for unpaid work and is likely to receive millions more from capital it left there which had been sitting locked away in Libya’s bank vault after Gaddafi’s assets were frozen. Those assets thought to be worth $150 billion have been thawing over the past year, however they will not be enough to fund the desperate upgrades to infrastructure, buildings and roads required. The CEO of Libya’s leading construction firms was in Dubai last month appealing for cash and partnerships. He was well recieved; Libya represents an almost unique opportunity among the country’s recovering from the Arab Spring. Mineral rich but desperately short of basic infrastructure, housing and unable to fulfil ambitions of tourism and commerce, it will need help for years to come. The question is whether to stick or push for companies with the expertise it needs. Whatever way they choose, now is the time to formulate your Libyan strategy. It’s future is now, and if you have something to offer, make sure you don’t miss out.

DIGITAL SERVICES MANAGER TRISTAN TROY MAAGMA WEB DEVELOPERS JERUS KING BATION ERIK BRIONES JEFFERSON DE JOYA online@cpidubai.com

PUBLISHED BY

1013 Centre Road, New Castle County, Wilmington, Delaware, USA Branch Office PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 PRINTED BY Atlas Printing Press L.L.C. © Copyright 2012 CPI All rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

ISSUE 10 AUGUST 2012

See you on site. PUBLICATION LICENSED BY IMPZ

SPECIAL INTERVIEW

Stephen White, Editor, CMME

ON THE BLOCK

FBA building Doha’s port

BALANCING ACT

Liebherr mobile and tower

BE A BETTER SELLER The dos and don’ts of selling

PLUS: ACROSS THE INDUSTRY

DIESEL POWERED Brand awareness with Saudi Diesel

* NEWS & VIEWS * OFFROAD TEST * THE LAST WORD * AND MORE

NOW ONLINE You can now catch the online edition every month at: www.constructionmachineryme.com

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News Round-Up

NEWS

ANALYSTS: SANY TO LOSE 30% OF STAFF AND IS UNDER PRESSURE AHEAD OF IPO

Sany is returning to investors on the Hong Kong stock exchange as it looks to raise $2 billion in an IPO. The company LOCKED is also rumoured to DOWN be prepared to shed A team from Scholpp Kran30% of its staff. & Transport GmbH’s Heilbronn The Chinese branch office recently lifted the manufacturer lock gates at the Klingenberg and scrapped plans Freudenberg locks on the Main river. for a much larger The Scholpp team relied on two cash injection tried-and-true cranes: the Terex of $3.3 billion in AC 200 and the Terex AC September last year 300 all-terrain cranes. following the loss of confidence in global markets sparked by the European sovereign debt crisis. According to local media, Putzmeister’s new owners will begin sending out its new share prospectus to investors on 16 July. The value of the share issue is expected to be 10% of the value of the company’s new capital. Sany had previously stated that it was pursuing the IPO

New machines, new offices, new projects, new initiatives – we look around the region at what’s new this month.

RTA chief confirms that Trade Centre Bridges Project 50% done

A

lmost half of the Trade Centre Bridges Project has been completed and is well on track to be finished by its scheduled November 2013 completion date, the head of the Roads and Transport Authority said on Friday. Consisting of 22 precast concrete bridges and a separate 120m long bridge, the project will serve traffic outbound to Al Maktoum Bridge, Al Garhoud Bridge and parallel roads, Mattar Al Tayer,chairman of the board and executive director of RTA, said in a report carried by Gulf News, a Dubai based daily newspaper. “The Trade Centre Bridges Project, which costs around $195.85m, is by far the largest phase of the Parallel Roads projects, which is one of the mega road projects being undertaken by the RTA, that aims at linking the Western Parallel Road with Sheikh Rashid Road at Lamcy Plaza complex in a 312m long road passing by the World Trade Centre,” he said. The project will serve traffic passing along Trade Centre towards Al Maktoum and Al Garhoud Bridges, as

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well as the Dubai-Al Ain Road. Trucks moving toward Rashid Port heading towards the Dubai-Al Ain Road will also be served. Several key phases of the Parallel Roads project have been completed, including the opening of the initial phase, which comprises of the construction of the roads at Al Barsha and Al Quoz Industrial and

to raise cash for investment, but the news of the re-adjusted offering has been seen as sign that it is struggling with weaker demand for equipment. The company is also rumoured to be preparing a restructuring programme that will see it cut staff by as much as 30%. Efforts to control inflation and local government spending since the beginning of 2011 has destabilised demand for equipment in China, increasing pressure on Chinese and global manufacturers geared for boomtime conditions. According to the Chinese Construction Machinery Association, its latest survey of companies suggests that sales revenue fell by 20% in the first five months of 2012. Chinese English language newspaper Global Times interviewed several analysts with most agreeing that Sany needs to overhaul its operation.

Residential areas, the newspaper said. Furthermore, Al Tayer said that several key roads had been opened in the Business Bay area between Sheikh Zayed Road to the north, Meydan Road to the west, Financial Centre Road to the east and Al Khail Road to the south. “Work is up and running in the completion of road works under Phase III (A) of the Parallel Roads Project in the area between Jumeirah Lakes Towers, which link new property developments in the area to the south of Sheikh Zayed Road between interchanges 5 and 5.5. The project includes the construction of a 10km long road of three lanes in each direction,” Al Tayer explained. “Work is also progressing in Phase IV of the project, which serves Jebel Ali Free Zone, Al Maktoum Airport and the Industrial Area. This phase also comprises the construction of roads extending 22km with four lanes in each direction on the Eastern and Western Parallel roads,” he added.


COMPANY INTELLIGENCE AL WASL TRADING GROUP and KANOO GROUP are to share the distribution of German truck mounted crane specialist RUTHMANN in the UAE, Saudi Arabia, Bahrain and Qatar. The Al Wasl Trading Group, based in Abu Dhabi, is responsible for the complete sales and service activities of its Stieger and Cargoloader products in Abu Dhabi and Dubai while Kanoo is responsible in Saudi Arabia, Bahrain, and Qatar. The joint venture between the Kanoo group and German tower crane manufacturer Wolffkran has relocated to new offices in Dubai. WOLFFKRAN ARABIA ’s new Dubai offices, which also house Wolffkran’s regional sales office, covering the Middle East, India and Africa regions, will also host new training facilities for operators and engineers and a new 24-hour technical support operation. PARSONS , the US based engineering services firm, announced on Tuesday that it had been awarded a contract by Oman’s Ministry of Transport to provide design and construction supervision services for the dualisation of the NIZWA-THUMRAIT road. The 1,000km long project will provide a link between Oman’s capital of Muscat and the southern city of Salalah. It will be fully dualised, the ministry said. The project will involve the conversion of the existing 715km single carriageway to a four lane dual carriageway. German concrete pump manufacturer, PUTZMEISTER has announced its acquisition of truck mixer maker INTERMIX , in a move aimed at expanding the company’s presence in the concrete sector. As the thirdlargest producer of truck mixers after Liebherr and SchwingStetter, privately-held Intermix produces up to 800 machines annually. Putzmeister, which is owned by China’s Sany Heavy Industries, develops, manufactures and sells equipment worldwide, in particular concrete pumps for construction, tunnel construction and large scale industrial projects.

Qatar should pick empty container handlers

XCMG TAKES 52% MAJORITY SHARE IN SCHWING Chinese manufacturer XCMG has continued its takeover of Schwing Group, increasing its share holding in the German concrete specialist to 52%. News that XCMG was prepared to acquire a majority stake in Schwing first surfaced at Intermat in April. Schwing, whose US susbsidary Schwing America filed for Chapter 10 bankruptcy in 2010, had been considered vulnerable to a takeover for a number of years. Prior to XCMG’s share purchase, speculation on potential buyers included fellow German manufacturer Putzmeister, despite likely complications with the deal meeting German monopoly regulation. With

Chinese giant Sany subsequently taking over control of Putzmeister from owner Karl Schlecht, XCMG’s move is percieved as a defensive measure as well as an opportunity to capatalise on a favourable share price for a firm that has struggled to come to terms with the downturn. XCMG will now look to broaden Schwing’s brand and technology in Asia, particularly in China, which buys twothirds of the world’s concrete pumps. XCMG chairman Wang Min has previously stated that he wishes to make the company a world class enterprise and is quoted in the Chinese media as saying that “the price is not too high”.

Paul de Jong, sales manager Middle East and Africa at Forkliftcenter, says that port buyers should be looking to choose empty container handlers over reach stackers in the current market in Qatar. Forkliftcenter ships in equipment to the region, selling to traders and clients needing equipment from 1t material handlers and upwards, he explained to CMME. Some countries like the UAE have well-established logistics hubs like Jebel Ali, others like Qatar are in the process of building up their capacities. With imports outstripping exports, he says that some customer needs are better suited for empty container handlers rather than reach stackers. “The last time I was in Doha I had three meetings with empty container depot (companies),” he said. “Here in the region, your DP Worlds, Abu Dhabi ports buy new equipment which they re-new every five years because containers are used. However there are also mainland/inland terminals that don’t have that intensity of use. For them to buy new doesn’t make sense. They have more time to maintain their equipment.” Regional investment into ports and logistical hubs has raised the profile of material handling equipment in the market. Buyers have an enviable choice when it comes to equipment both all used and new. The used market has proven to be particularly strong as the combination of a higher demand in a difficult economic environment has made the importing of equipment a popular move for companies.

TENDER UPDATES

1

The master developer and operator of the UAE’s national railway network, Etihad Rail has invited bids for THE FIRST THREE CONTRACTS IN THE DEVELOPMENT OF PHASE II of the rail network.The contracts cover the design and build of new lines between Ruwais and Ghweifat (137km), Liwa Junction and Al Ain (190km), and for the railway integration and systems contract, which covers signalling, communications and commissioning for the second phase network.

2

DELTA 1 RESIDENTIAL TOWER PROJECT – DUBAI MARINA . A local engineering firm has been appointed and the project is expected to be completed within (14) months after commencement of work on site.

UAE’S BELHASA GROUP EXPANDS INTO LIBYA Belhasa Trading and Development, a whollyowned subsidiary of Dubaiheadquartered conglomerate Belhasa Group, has announced the opening of a new office in the Libyan capital, Tripoli. The company’s new branch will promote the firm’s products and services targeting various sectors in the Libyan market such as trucks and buses, specialised vehicles, construction equipment and

machinery, oil and gas well maintenance, oil and gas well spare parts, piping, in addition to crude oil storage tanks, among others. “Libya is a promising country with a high potential for any type of businesses such as construction, tourism, telecoms, oil and gas, energy and power, as well as trade in consumer goods and building material” said Samer Malkawi, managing director of the Libyan branch office of Belhasa Trading and Development.

September 2011 August 2012

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News Round-Up THE NEW OCTOPUS

A couple of years ago a graphic was doing the rounds of a JCB 3CX doing the Octopus. Now there’s a new shot out befitting the lates version of the machine.

Byrne Equipment Rental to set up new offices in DIC by 2013 Byrne Equipment Rental announced on Sunday that its new $4.08m headquarters at Dubai Industrial City, would be complete by the year 2013.

BOBCAT READY FOR THE SNOW IN NORTHERN IRAQ The Erbil Municipal Authority in the North West of Iraq has purchased a new Bobcat S300 skid-steer loader equipped with a Snow V-blade attachment from Tristar Company for General Trading, the Authorised Bobcat Dealer in Iraq, for snow clearance work on roads in the Mergasor region, well known for extreme snowfalls during the winter season. As well as providing fast removal of snow even up to depths of 1 m thick, the compact Bobcat loadersnow blade combination prevents damage to the local roads caused by the larger bulldozer and grader machines used in the past and can clear snow from side roads and other areas vital to local people, where the bulldozers and graders could not previously go because of their size. The diverse Mergasor region encompasses a number of mountainous landscapes and the population is spread out over a vast area, which makes even the simplest tasks such as getting around much harder in the winter season. In the past, local people have relied on heavy equipment such as the bulldozers and graders for clearing roads but with the major disadvantage that the roads became damaged in the process and deteriorated even faster due to the harsh weather conditions and freezing temperatures, requiring the Municipality to repair the roads more often. With the Bobcat S300 skidsteer loader and the Snow V-Blade

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Attachment, Tristar has provided the perfect solution for the Municipality’s road maintenance team. As soon as the Bobcat equipment went into action, the authorities could see it could clear the snow without causing damage not just on the main roads but also on the narrow side roads where the much bigger dozers and graders could not work anyway. The versatile Bobcat snow V-blade, which is available in five different widths, can be used in five configurations: as a V-blade, scoop blade, straight blade and 30o left or 30o right angle blade. It forms part of a wide range of products for winter work available from Bobcat, combining attachments such as snow blowers, buckets and salt and sand spreaders with the Bobcat range of compact loaders to provide solutions for dealing with all types of winter weather. To enhance working on snow, Bobcat also offers optional steel tracks to go over the tyres on the wheeled loaders as well as individual tyre snow chains. Tristar has an impressive showroom and office complex on one of the major routes into and out of Erbil, providing excellent access to the company’s customer base. The company was incorporated in 2005 as a wholly owned division of the Al-Sayer Group of Companies. The Al-Sayer Group is the largest and most successful automotive company in Kuwait with over 50 years of experience in the automotive and heavy equipment industry.

The 401,000m2 headquarters will house Byrne’s main offices in Dubai, as well as the general rental and projects and events division. It will also include offices, warehouses and workshops with an estimated staff of 160 employees.

PLANT APP European Plant & Machinery Sales has a new app that lets browsers browse on the move.

QUARRY CRUNCH The Doosan Infracore Construction Equipment stand at the UK institution Hillhead 2012 Exhibition was busy throughout the three days of the show. The company showed new Doosan excavators, wheel loaders, articulated dump trucks (ADTs) and high capacity telehandlers along with products from Bobcat.

“There is a growing demand across the region from companies who prefer to rent rather than purchase and maintain expensive equipment, which is a drain on their capital. We found Dubai Industrial City to be the ideal base offering us ready access to our key markets of Abu Dhabi, Dubai and the Northern

Emirates,” said Graeme Clark, CEO of Byrne Investment, the parent company of Byrne Equipment Rental. “Our close proximity to the Al Maktoum Cargo Terminal will also allow us to draw on the growth of the airport and its related facilities, as well as enabling us to consolidate our presence in one area and expand across the GCC in a cost efficient way,” he added. With a 20% share of the UAE market, Byrne’s business over the course of 2011 was worth $326.7m. Clark added. The company currently operates out of Emaar Business Park, with three storage facilities in the Al Quoz Industrial area. It also has nine offices covering Abu Dhabi, Qatar, Oman and Saudi Arabia, with around 409 employees.


QUALITY & STRENGTH Digging your way to success

Al Khobar P.O.Box: 2841, Al Khobar-31952, Saudi Arabia. Tel: + 966 3 8576769, Fax: +966 3 857 4681 Email: marketing@saudidiesel.com.sa Web: www.saudidiesel.com.sa

BRANCHES Riyadh Tel: + 966 1 231 1931 / Fax: + 966 1 231 1031 Jeddah Tel: + 966 2 659 8500 / Fax: +966 2 659 8600 Jubail Tel / Fax: +966 3 363 4050 Madina Tel: +966 4 8697313 / Fax: +966 4 8697310

OTHER AREAS ( DEALERS) Tabuk Tel: +966 4 422 4490 / Fax: + 966 4 422 7225 Unaizah Tel: + 966 6 364 4555 / Fax: + 966 6 364 5969 Abha Tel: +966 7 227 0000 / Fax: +966 7 227 1944


News Round-Up

CONTRACT WINNER AECOM IN IMMEDIATE START TO QATAR NORTH ROAD CONSTRUCTION US construction firm AECOM Technology Corporation says that it will start the design and build work on Qatar’s North Road immediately after winning the contract to upgrade one of the country’s most important arteries. Road building has started to gather momentum in Qatar as it begins to overhaul its infrastructure in preparation for the World Cup in 2022 and as part of its Vision 2030 plan. AECOM’s design-build contract on the 90km North Road, part of the wider Qatar Expressway programme, includes overseeing the enhancement the accessibility of the Doha to Madinat Al Shamal/Al Ruwais, improving the road by adding frontage, enhancing road accessibility, as well as adding frontage streets and new interchanges and upgrading existing interchanges. The team is also designing a bicycle lane along the road as well as “creating context-sensitive artscape and beautification works”.Construction is scheduled for completion during 2014. “We are delighted to play a vital role in the advancement of Qatar’s infrastructure,” said CEO John Dionisio.

DP World takes on Terex new generation cranes in Australia

DP World Melbourne has taken delivery of its first 16 Terex NCS634E DieselElectric straddle carriers, as part of a 22 unit order of the reduced-emission Terex straddle carriers. The remaining eight units are due for delivery later this year from Terex Cranes facility in Wuerzburg, Germany. According to Terex, the new-generation straddle carriers were selected as part of DP World progamme of proving efficiency and productivity while reducing its environmental footprint.

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“DP World Australia selected our state-ofthe-art carriers following an extensive evaluation process,” says Guido Luini, managing director, Terex Cranes, Wurzburg. “We’re proud to support them in their transition from earlier diesel-hydraulic models to today’s latest high-performing, reduced-emission Terex technology at one of Australia’s busiest commercial hubs.” Andrew Jena, general manager, DP World, said that its analysis showed that fuel consumption data indicated an 11% saving per hour.

BIASED PROJECT MANAGERS BLAMED AS ME DISPUTES DOUBLE IN 2011 Failure to administer construction contracts properly and employerbiased project managers were major contributors as the value of contract disputes doubled in the Middle East last year, according to a new report by EC Harris. In its Global Construction Disputes report, EC Harris revealed that the average value of disputes doubled from $56.25 million in 2010 to $112.5 million in 2011. The region is now almost three times higher than the global average which fell from $35.1 million to $32.2 million on the back of increasing emphasis by both the public and private sector owners to avoid and mitigate disputes through risk management and early, field level, resolution of disputes. Researchers at EC Harris’ Contract Solutions team said that a failure to properly administer the contract was the most common cause of a construction dispute in the Middle East. EC Harris identified the performance of project managers or engineers as a crucial contributor to the causes of contracts entering into a dispute. The most likely problem with the project manager or engineer

was that they were too partial to the employer’s interests, followed by a lack of understanding of the procedural aspects of the contract, said EC Harris. “Their conduct often being at the heart of how the dispute crystallised,’ said the analyst. “The most likely problem with the project manager or engineer was that they were too partial to the employer’s interests, followed by a lack of understanding of the procedural aspects of the contract.” Settling disputes most commonly involved taking the case to arbitration before entering party to party negotiation and adjudication. According to David Dale, the Middle East bucked global trends as companies sought to resolve disputes as the region recovered its confidence in an improving economic climate. “The Middle East saw a flood of

major disputes last year,” said Dale “Over the past few years we have seen a reluctance to settle in the Gulf region, but this has been replaced by a stronger desire to do business and resolve disputes as the economies strengthen. On the whole, however, disputes are still costing the industry time and money. “Focusing on avoiding the dispute from the outset through better mitigation and contract design is always the better option.”

THE TOP FIVE CAUSES OF DISPUTES IN MIDDLE EAST CONSTRUCTION PROJECTS DURING 2011: 1 A failure to properly administer the contract 2 Incomplete design information or Employer requirements 3 Employer imposed change 4 Failure to make interim awards on extensions of time and associated compensation 5 t6OSFBMJTUJDSJTLUSBOTGFS from Employers to Contractors


Facing a tough opponent? Bring it on. Perfectly suited to heavy duty work at the face or in rehandling applications, the L250G is the industry’s first wheel loader in the 35 tonne weight class. It combines the optimal mix of lifting strength, breakout force and traction, resulting in high bucket penetration. As well as exceptional productivity and operator comfort, the L250G’s powerful Z-Bar linkage offers high lift capacity and rapid hydraulic reaction, resulting in faster work cycles. Volvo’s L250G: in a class of its own. www.volvoce.com

A.A. Bin Hindi B.S.C (c) BAHRAIN Tel: + 973 17 703078 E-mail: ciesales@binhindi.com Abdelmassih Trading Company – Amtrac LEBANON Tel: +961 1 88 76 60 / 61 E-mail: michel@amtrac-lb.com

Al-Zabin International Group Co. For Heavy Equipment KUWAIT Tel: +965 433 4721/6017 E-mail: alzabin@alzabinkuwait.com ASC Turk Makine Ltd. TURKEY Tel: +90216 581 80 00 E-mail: info@ascturk.com

Al-Futtaim Auto & Machinery Co (FAMCO) UAE Tel: +971 2 502 9100 E-mail: famco@alfuttaim.ae

Arabian Agencies Company WLL QATAR Tel: +974 44 50 0295 E-mail: araco@araco.com.qa

Al Rehab Equipment and Machinery Co. Ltd. SAUDI ARABIA Tel: +966 2 680 4444 E-mail: info@alrehab-ksa.com

Copenhagen Group A/S/ IM Jensen A/S AFGHANISTAN Tel: +45 3363 9424 E-mail: tiwa@imjensen.com

volvo construction equipment

Elaghil Trading Co. YEMEN Tel: +967 1 207 595 E-mail: elaghil@y.net.ye General Engineering Services Est (GENSERV) OMAN Tel: +968 244 90755 E-mail: sales@genserv-oman.com Nassib Saad Est. Trading & Import SYRIA Tel: +963 11 222 5432 E-mail: saadmt@scs-net.org Parsian Pishro Sanat IRAN Tel: +9821 88 77 44 99 E-mail: info@parsianind.com

Sardar Automobile and Machinery Trading Co. IRAQ Tel: +964 66 256 9888 E-mail: ihsan@sardarmachinery.com VPL Limited PAKISTAN Tel: +92 42 111 875 875 E-mail: uzair.shahid@panasiangroup.com


News Analysis

Finding peace in the Middle East The Chinese slow-down and the European debt crisis is beginning to leave a hole in the pockets of manufacturers, but there is hope in the Americas and the Middle East.

T

he Business Insider painted a very bleak picture of the Chinese economy last month, predicting that a Spain-style crash in its construction sector was hiding around the corner of its central bank’s next interest rate cut. The article seems out of step with other analyst assessments such as Freedonia’s latest report that says that the country’s construction sector will continue to expand by at least 8.5% into the next decade. According to BI, construction is at the heart of a ticking timebomb hidden in the Chinese economy. In 2010 China’s “construction binge pushed its investment/GDP ratio to 48.5%, a record unprecedented in the recent history of China and other major economies. It’s sufficient to say China is a construction-led economy” says the article. Noting that cement consumption of 1800mt per capita reached that year is non-sustainable, it goes on to explain that it means there is now three times the amount of accommodation needed for its migrating workforce and if this continues there will be enough houses for 300 million people by 2015 and only 100 million to fill them. Essentially the article argues that too much investment can be a bad thing (“Let’s make no

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bones about the fact that China’s investmentfuelled growth including the construction binge is a Ponzi scheme.”). The effects are already being felt by the construction machinery manufacturers that could potentially have a profound effect on the entire industry. The construction industry has been geared and tuned to a driving Chinese engine and now that In fact we’re already seeing it. Komatsu, the world’s second largest manufacturer, has just experienced its 14th consecutive month of minus growth in the China. Sany may be selling more excavators but unit sales may increase 10 percent this year, slower than a previous target of 40 percent, with its vice chairman Xiang Wenbo saying the lower sales forecast reflected an increasingly decelerating economy and government property market curbs sapping demand. Perhaps as a result its much delayed IPO on the Hong Kong stock exchange which looked to be back on at the start of July has again been postponed. Where once investors were bullish on the Chinese now they are cautious. We’ve been hearing there are too many excavators in the Chinese market for some time and the next 18 months will be a testing time for manufacturers.


CHINA ON THE ROADS IN AFRICA China is to award $20 billion in loans to African countries over next three years and has said it is only prepared to make infrastructure deals on a sub-regional, not country-by country, basis. The last decade has seen China increase its presence in arguably the least developed populated continent and with the African Development Bank estimating that $360 billion is required between now and 2040 to upgrade its infrastructure, Chinese companies and contractors are set to be major players for many decades to come. At the Fifth Ministerial Conference of the Forum on China-Africa Cooperation held last month, Chinese minister of commerce Chen Deming said: “African countries are usually small ones, so infrastructure construction is often stopped at the borders.” He added: “From now on, China will pay special attention to cooperation with African subregions. We will make overall plans on infrastructure construction in the subregions, taking the interconnection of roads, water, electricity and telecommunications networks into consideration and pushing forward bilateral cooperation in a market-driven way.” Africa required an estimated $360-billion to implement basic regional backbone infrastructure across the continent by 2040, according to a senior member of the African Development Bank (AfDB). Speaking at the New Partnership for Africa’s Development (Nepad) Infrastructure Africa conference, Ralph Olaye, manager of regional integration and trade, said that the current infrastructure deficit was costing the continent about 2% gross domestic product (GDP) growth a year, as well as limiting intra-African trade, which currently stood at 12%. The 2012 to 2040 Programme for Infrastructure Development in Africa (Pida), a multibillion-dollar initiative led by the AfDB, the African Union and Nepad, is a pregramme to aid the development of a web of 37,200 km of highways, 30,200 km of railways and a further 16,500 km of interconnected power lines.

Chinese companies may have to start adopting strategies that have not come naturally to them in the past, such as focusing on aftersales and developing their dealer networks both at home and abroad. This has hurt them in some areas within the Middle East, with the Gulf countries in particular proving to be an enigma (Liugong’s excellent regional hub in Dubai is proving to be the exception rather than the rule). Of course China’s boom has boosted the sales of international players who managed to set up shop there but it is telling that their attentions are now turned to other markets. Komatsu itself has seen its sales the gap between sales of equipment in the Middle East and Africa region and China close over recent months,. Sales of Komatsu equipment in Africa increased by 82% in May and the world’s second largest construction machinery company also saw gains of 19% in year on year sales in the Middle East. It may be struggling in the country but Japan’s Komatsu is still revered among Chinese manufacturers for its progress in global markets. A report by Wu Huimin, analyst at China International Capital Corporation, said Chinese companies should follow Komatsu’s example on the international stage. “A low level of market consolidation, simple product structure and low sales in overseas markets are the characteristics of China’s machinery sector,” said Wu. “Chinese companies should follow Komatsu’s model by improving product quality and

becoming more internationally competitive.” One region that is holding attention is the South American market. The main focus appears to be Brazil which has historically levied imports so heavily that manufacturers have resorted to a variety of tactics to target the market, including cross border imports and shipping in kits. However the loosening of controls is seeing an increase of foreign equipment. In some instances Brazilian steel has been traded for machinery via the many trade pacts and bodies that have sprung up between Brazil and China. Obviously Chinese companies are not alone in targeting Brazil and Caterpillar has performed strongly in the country of late. The growth figures of 60%-plus last year may be unattainable, but its dealers continue to record sales growth of 30%. The decline in growth – and it must be emphasised it is still growing – has not been viewed positively on Wall Street and it has seen its share price decline from $115 to $85 in the first six months of the year. Caterpillar has been a major beneficiary of China’s boom but as it slips back from representing half of Global total sales, the company has been able to use a strengthening US market as a foundation to explore its options elsewhere. At the head of its list is Brazil. But its own story there is telling. As Chinese companies flooded the recent M&T show in Sao Paolo rumours were circulating that Caterpillar was preparing to ship 2,000 excavators to the country. The irony being that they will be Tier 2 and Tier 3s made not in the US but in China.

September 2011 August 2012

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Expert Opinion

Cash-flow is king FAMCO Financial Service’s Mahmoud Turkieh,talks about the challenges of raising finance in the post-downturn world.

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MAHMOUD TURKIEH FINANCIAL SERVICES MANAGER FAMCO

he 2008 recession taught all of us in the UAE a very painful but important lesson – that cash is king. I like to stretch that a bit further and state cash flow is the most important aspect of any business. Money makes the world and your business go round. How much of it you have tied up within your company can determine how fast or how slow it spins. As many of us have experienced over the past few years, a lack of liquidity has made investing in fleets and plant particularly tricky. Raising finance through traditional channels such as banks and financial institutions has become much more difficult than it was previously. This has had the effect of forcing companies to reel back their spending plans and pour revenue into covering costs in the company. Some have turned to raising finance to cover their costs rather than investing in the company and this is not a viable option in the long-term. The series of economic and financial crises over the past few years has changed many bank’s attitudes to lending money to companies in the construction sector FAMCO’s home country of the UAE. They struggled to reclaim back money borrowed to buy assets when the downturn hit and now they are unsure whether heavy equipment is a viable investment. However as a supplier and distributor we rely on our customers to continue to grow. For obvious reasons if they can’t invest in fleet then we can’t secure new business. To put it another way, we have learnt that the best way for us to grow is for our customers to grow as well. But how do they expand their businesses at a time when cash can be harder to find than before? There were a number of ways we could do it but we realised we needed to commit 100% and opened an

“CASH FLOW IS THE MOST

IMPORTANT ASPECT OF ANY BUSINESS.”

entirely new arm to the company, FAMCO Financial Services, to deliver a workable option for our customers. We have introduced the motto Dream bigger, work smarter for FAMCO Financial Servicesand I think it’s an approach that best sums up where companies should be heading in 2012. And it fits in with what we are trying to achieve with entering into financing. Our customers’ businesses have moved on since the downturn and they need more from us, and it has changed the way we sell: they need us to more than just to sell a machine; they want us to tailor a solution that fits their requirement. Consequently we have been reshaping our operation to better suit them too. At the same time it opens up opportunities for us as long as we can help them work smarter when they do dream bigger. We’ve put a lot of effort into the development of our service and parts operations, increasing our portfolio of maintenance agreements and other soft products, plus the introduction of our rental business, but the launch of FAMCO Financial Services is a further evolution from the way we have done business in the past. Offering a range of tailor-made financing packages for truck, bus, construction equipment, forklifts, generators and compressors, it moves us further away from discussions about just the purchase price, and closer to our goal of developing a full solution package for our customers. For example, let’s say a customer won a bid and needed a fleet of excavators but had the cash to only pay one. We would now be able to be smart with this customer’s cash and ask him to explore FAMCO Financial Services where he can not only put a monthly payment towards his required fleet, but also bundle up a service package and insurance along with the monthly payment. FAMCO Financial Services is a vital ingredient within a more sophisticated sales cycle servicing a more demanding customer, where value and total cost of ownership have become more important. Including financing,

service contracts and insurance in a single monthly payment, greatly assists our customers with a cashefficient solution for the operation of their fleet. The newly launched unit utilises a multi-bank approach and offers customers the ability to conserve their capital while providing an additional credit line, while using FAMCO’s multi-bank relationships for financing. In addition to equipment financing, FAMCO Financial Services can combine insurance and service agreements in one monthly payment allowing customers a significant cash-flow advantage. Options can be Sharia’h compliant and capable of meeting the needs of an evolving and ever- demanding market. In the business climate of 2012 and 2013 (and possibly for much longer), there won’t be many large fleets paid for with surplus amounts of cash and most companies finance that through credit lines or they may have new credit links they have negotiated. So we’re offering another credit line option for our customers and make that part of a complete package. We’re striving to be the most customer-focused supplier in the region and FAMCO Financial Services is one element that further solidifies the relationship with customers and principals that we have built over many years. This facility takes our customer service one step further and helps customers free up their cash flow to get the machines they need. It may not be the cheapest from day one but over a lifetime it will give the greatest value for money. The industry is learning that smart fleet management is about demanding tailor made and comprehensive solutions. The last few years may have been tough but we have learned that you have to understand what your customers want and need and we want to be pioneering the way in our offering of a total solution concept. Expert Opinion is a new series from FAMCO (Al-Futtaim Auto & Machinery Company) that will highlight major issues affecting the heavy equipment industry.

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Heavy Hitters

Subtle, practical, effective is the best description of Liebherr’s hidden masterpiece on the umbrellas of the Prophets Mosque in Madinah. CMME talks to Jörg Muller about a European company applying that approach to the Middle East

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ome time ago CMME started to go through the usual channels to get a glimpse of the work underway on the $165 million Yas Island Water Park. Frankly it’s spectacular and as one blogger, Theme Park Guy (yes, Theme Park Guy), puts it, it looks like a combination of a water park and a theme park like no other. After a few months of chasing both the plant manager – who was great, it must be said – and the PR for the job, the magazine has yet to get access on what is destined to be one of the most exciting additions to the Gulf’s slowly growing list of entertainment venues. Fortunately, Theme Park Guy has had no such problem and has been on the site on a number of occasions detailing the good work that is going into the park before it opens later this year. We’re not bitter – honest! Apart from the obvious attraction of getting onto the site and seeing the slides go up and the trees being made (yes, the trees are made on-site), the purpose of the visit was to see how cranes are being deployed in such an unusual and logistically tricky environment. However in a fortunate twist of fate, the chasing and haranguing led to a meeting with the manufacturers of the main tower cranes, Liebherr. The multi-strand German manufacturer has a habit of turning up in some of the more leftfield and exciting projects in the region, even working on and providing the lift systems for the umbrella covers ourside the Prophets Mosque in Madinah, Saudi Arabia. Yas Water Park, seems almost straightforward in comparison. “Our contractor (ALEC) are using two 80 ECHs,” Jörg Muller begins, before adding: “Maybe one of the problems in this region is that for many of these sorts of projects people are using mobile cranes. Even when they are making high-rise buildings, they don’t realise it could be faster and more efficient with tower cranes.” Liebherr’s impressive performance in the region over the past couple of years has been notable not for its tower cranes (although they are still very much a fixture of the region’s skyline) but by its mobile cranes. In fact, the tower cranes being used on Yas are not new cranes, Muller muses: “There is still oversupply in the market.” “People are buying a lot of them,” he says of mobile cranes. “Many villa projects are using mobile cranes or even mobile construction cranes like our MK cranes instead of tower cranes. We have a couple in the market already, but we will soon have the five-axle MK 100, which we will show at InterMat Middle East.” The drift towards mobile cranes in the region has been led by advantages in manoeuvrability which is essential in low-rise residential building. The attraction to some developer seems obvious, they are a smart combination of flexibility and the

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Heavy Hitters

“CONTRACTORS USED TO BUY TOWER CRANES

THAT DEPRECIATED OVER THE YEARS, AND NOW THEY ARE LOOKING TO RENT, EVEN ON PROJECTS THAT LAST 18-24 MONTHS.” reach of tower cranes: “And they can be assembled in 20 minutes.” Muller comments: “One person, the driver, can act as an operator. So yes, it has its strengths but only up until now do we have the service network.” Liebherr took the unexpected step of choosing to go direct for its towers in 2010 in the UAE, following the example of the mobile sales. Muller says the company does not view going it alone in the Emirates as a risk: “From an organisational point of view, it’s just better situation for us,” he explains. “We wanted to do it ourselves.” The dealer/distributor debate is one that many manufacturers admit to having off the record. What’s better? Have someone do the leg-work, the marketing, the client building for you, or take control of the servicing and operation yourself. Muller says that although dealers are generally preferred for tower cranes in the case of the mobile cranes this is not unusual. “This happens elsewhere in the world with these cranes,” he says. “Tower cranes mostly have a dealer network but in some countries we do it ourselves. If you want to be able to control prices to end customers, for instance, then you’re better off doing it yourself.” He makes the point that by taking sales in-house the company has been able to shape its service operation around its regional hub in Dubai. He adds: “In this market we think this is the right solution right now.” Taking servicing back from the dealer means more work internally, not just in terms of the physical labour but also the administration and structuring. Muller explains that the company has now taking on a team of service people, service manager, technicians and someone to oversee spare parts.

“The organisation is much bigger now but I think we have better control,” he emphasises. “The customers appreciate it.” When dealing with Liebherr in the Middle East it is almost possible to talk about two separate companies when comparing the crane operation with its construction equipment arm. For some time the latter has been without a dealer in some areas, causing some to wonder whether it can ever compete with its rivals such as Caterpillar or Komatsu without a strong local partner. Muller shares the view that it is not all or nothing, what matters most is what suits the company. “It really depends on the market and the partner you have,” he says. “For us it (the market) changed totally from a buyer’s market with the contractors to a rental market. So for all projects, contractors want to rent. For the mobile cranes this was always the case. Their customers are always renting. For us (on the tower crane side) it was a big change.” He continues: “Contractors used to buy tower cranes that depreciated over the years, and now they are looking to rent, even on projects that last 18-24 months.” Have no doubt about it, the shift from selling to rental has not been an easy situation for many manufacturers. Where once cranes were priced and bought according to their longeveity and depreciating value by customers, now that risk is being taken on by the manufacturers. No wonder some are considering taking back the servicing, operation and maintenance away from the dealers and others are working hard to improve quality of service between the partners and to the end customer. “In Europe you think about a crane lasting eight years, and that’s what we calculate here with partners,” he says. “For example, our partner in Qatar is calculating his rental prices using this.” “The thing here (in the UAE) there was this oversupply in the market and therefore the rental prices were also down. For some specific projects maybe it’s worse...luckily we’re not in a position to have to go to every project. Some of our competitors have a few hundred cranes that need to be on jobs. We can just pick the profitable ones.”

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Heavy Hitters

Covering the pilgrims The Prophet’s Holy Mosque located in AlMadinah (Kingdom of Saudi Arabia) is known for being one of the two holy mosques of Islam, attracting millions of pilgrims every year.

“THEY DON’T REALISE IT COULD BE FASTER AND MORE EFFICIENT WITH TOWER CRANES.” While Muller appears pleased with Liebherr’s strides in the market, he remains fixed on finding new opportunities for its tower cranes. He says that the German company continues to develop new models while its competitors have held back on Middle East product development during the downturn. The company has developed cranes for the wind turbine market in the world and he says he is working with designers on an explosion proof jib for the oil and gas market in the market. “You can have the crane parked on the outside but the jib on the inside creating safety zones,” he comments. “It would definitely be an advantage for a couple of customers, where maybe until now they would have used mobile cranes. You can do it faster with tower cranes because the trolley will be faster than a telescopic boom.” Muller arrived in the Dubai-based office of Liebherr in 2009, just in time for the downturn. “The market had just started to go down,” he recalls. “At Big-5 2008, we were still busy but by the start of the year, the market had collapsed. If you are talking about tower cranes the market is more or less the same in the UAE as 2009. Contractors are tendering for a lot of projects although there’s not a lot of movement. But Qatar is running quite well, Saudi Arabia is a good market [via its relationship with Al Juffali]. We also have a good market share of 90% in Kuwait and a good share in Oman.” (It’s a great geographical spread and proof positive of Liebherr’s strength in the market. Unfortunately its success has also attracted counterfeiters and their importers looking to exploit users of its cranes: “The steel quality is different and all the statics don’t apply anymore. It’s not good. I’m saying not because I want to sell more, no, if a tower crane collapses there will almost always be a fatality.”) Tower or mobile, theme park or architectural shading, Liebherr’s has got the region covered.

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Large scale umbrellas were planned by the Saudi Arabia government to provide sunshades for the Islamic pilgrims who visit the Holy Mosque. “Saudi Binladin Group” (President and General Manager:Eng. Bakr Binladen Project Director :Eng. Talaat Mously) , the largest general constructor in the Middle East with considerable experience, was the prime contractor while the engineering, manufacturing, and on-site installation of the umbrella system were performed by Liebherr Intertrading AG (Germany), which is most renowned worldwide for its cranes and construction machinery. The large-scale umbrellas, ranging 25.5m on each side consisting mainly of equal squares, are bell-shaped suspensiontensioned membranes, which open and close automatically like folding umbrellas. The total membrane area is 162,000 square meters, and the excellent fabricating skills are required for the complex design. To meet those needs, Japanese company Taiyo Kogyo Corporation after receiving orders from Liebherr Intertrading AG to fabricate membranes, has built an increasingly automated exclusive production line in the

Hirakata factory, which took an active part during the fabrication process of the Osaka Expo (EXPO 70), and the remarkable skills of the workers have been passed on to the younger generations. Taiyo began the production in April 2008 and completed the delivery of the 250th umbrella in May 2010. The membrane material is made from 100% PTFE (Polytetrafluoroethylene) weaving material, which was developed and produced specifically for this project, ensuring the fire resistance for the safety of the pilgrims, longterm durability against the harsh Middle East weather conditions, and flexibility for everyday use. In addition, as the facility itself is a core religious site of the Islamic faith around the world, the splendorous ornamentation far exceeds the norms of any architectural concept in Japan, such as the elaborate designs coloring the membrane and the metal attachments using lavishly gilded gold. The large-scale umbrellas were successfully completed in August 2011, welcoming pilgrims from all over the world in a soft atmosphere. This is the first time for a Japanese company to receive the honor of manufacturing products for the Second Holiest site in the Islamic world. This is because our abundant past achievements all over the world as well as the Japanese distinct “highquality” product creation were highly valued.


Exclusive Site Visit

CMME joins FBA on its mammoth job at Doha’s New Port Project to see one of the Middle East’s biggest pouring operations.

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B

oredom masquerading as cynicism has crept into most discussions on the construction centred around Qatar. The long lead time to the World Cup in 2022 and the re-adjustment of the predating Vision 2030 plans to invest in the country’s future has left many wondering if the optimism of last year was real or imagined. However the soon to open New Doha International Airport, the recent spate of infrastructure contracts and the enormous Doha’s New Port Project are all signs that the country of Qatar can really put a shift in when it wants to. The existing port, located in the heart of the city, is currently viewed as a major bottleneck to the development of Qatar. Once completed the new port will quadruple volumes enabling Qatar to meet its obligations to deliver the stadiums, hotels and infrastructure required for the FIFA World Cup in 2022. The annual cargo handling capacity will be the equivalent of six million 20-foot equivalent units. July saw the first precast concrete block being laid into place on its 8 km-long quay wall. It was the first in a series of 35,000 that will be needed to build the quay wall. With each block weighing between 40 to 90 tonnes each this is a mammoth task in almost every way possile. CMME was lucky enough to be taken onto the construction of the New Port Project last month, meeting the organisation tasked with deploying the four Putzmeister Telebelt TBS 130s (telebelt = telescopic belt conveyor) that are handling the pouring work. It was hot and dusty out there. It was fun.

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Exclusive Site Visit

First though CMME met with FBA’s (Fahed Bin Abdulla Ready Mix) Khalid Ali, project manager. FBA is a sub contractor with China Harbour Company for the project. The company’s scope of work for that project includes pouring 4 million cubic meter of concrete. “The general idea from the government about the project was to make it one of the biggest in the gulf,” he explains. The first phase of the project began in 2011 and is schedule to finish in 2016. He says that the port is expected to cost 25.6 billion riyals ($7 billion). “It will be about 25 km2 at the end of the first phase,” he continues. He says that since January, China Harbour has managed to excavate about half of the 4 million cubic metre needed for the concrete pour. “They have made that excavation in that area and are recycling the material elsewhere,” Ali explains. “It’s a big job, they have almost 300 machines.” A wall is built out of pre-cast that makes the port and as they are dredging beyond they are excavating back filling the wall and they put a concrete wall to make a pier. They have a breakwater wall that keeps the sea from disturbing the ships in the port. In regards to FBA’s own substantial contribution to the operation he says that it will take three years to pour the 3 million cubic metre pre-cast blocks. They will not all be doing the same job. “For the quay wall, we will use about 1.8 million. This is what we are building right now.” The port itself will be a mixture of naval and commercial buildings. Hagog says that the dredging work for the project will span 300 m and go 15 m

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deep: “This is a huge project. Qatar has a lot of money and they want to improve it by big project like this.” Despite the perceived slow-ness in Qatar’s progress, he says that the company is already seeing a change in the prices of materials. “Last year the price for ready-mix was 380 riyals per cm3 it is now 80 riyals less. “There is no stability in prices and a shortage in material. There is a lot of competition but really it is about not having enough stability.” Ali says that the media has played its part in bringing uncertainty to the market, covering ghost projects and mis-representing the actual state of construction activity. However he says that until the projects relating to the World Cup start, the company will have to fight the tough conditions head on. “We try to keep ourselves in a safe way,” he says. “Sometimes a big project comes to you and you succeed sometimes you don’t. “Maybe you’ll be a success and maybe you’ll be a failure but sometimes you have to take the chance.”

ONTO THE NEW PORT Following our meeting CMME joins Putzmeister’s aftersales and spare parts manager Louis Franzen, local rep Ali Khodor, and Putzmeister America’s telebelt guru Don Mattews and we drive down to the coast and the project itself. Security is handled by China Harbour and typically thorough. Once through the gates, a road twists towards the massive pouring yard. The sea is hidden from view to the west by hills and banks that are being carved out by a crew of dozens of large excavators.

The TLB 130 is built by Putzmeister America. The telebelt can handle between 0 to 300mm concrete slump and places materials from sand to rock with 100mm aggregate size.


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Exclusive Site Visit

Workers on the project are operating double shifts to ensure that the first phase of the NPP remains on course to be completed by 2016. Two Sany 180 batching plants supply the concrete to the ready mix trucks.

The Chinese company’s task is a hefty one if it is to earn every penny of its 3.2 billion riyal contract. The project involves the digging of the port’s dockyard to a depth of 17 m and building of the port quays, also underway is the digging of a canal, the construction of 2.7 km of wave breakers and the removal of 3 million cubic metres of rock and sand. No wonder there’s a lot of kit on site. In the distance away from our vehicle cranes stand presumably ready to lay down the new Harbour, brick by brick. Turning back towards the inland we turn into the works yard for the pouring of those blocks. The scale of the pouring work is breathtaking. We enter at the end of the queues of concrete. Close to a kilometre away are the two massive Sany 180 batching plants that are providing the concrete. The Sany 180 Eco-Batching Plant beat a dozen concrete machinery manufacturers from UAE and China to win the port contract and will also supply the construction of the Doha Stadium from 2014. We arrive mid-afternoon and too early for the pouring to begin. It gives us a chance to walk through the enormous production area. The 2m-high blocks are arranged in a series of neat straight rows. Each block has keys in the bottom and the top so the wall can be built up like a giant lego set (any voids are filled with dirt from the dredging.)

“THEY HAVE MADE THAT EXCAVATION IN THE

AREA AND ARE RECYCLING THE MATERIAL ELSEWHERE. IT’S A BIG JOB, CHINA HARBOUR HAS ALMOST 300 MACHINES.”

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Gantry cranes patrol above the columns picking up cured (which takes about a month) and ready blocks onto large trucks where they can be quickly ferried down to the appropriate section of the port construction site. It may be a relatively straightforward set-up, but this is production on the grandest scale working to the fastest of rhythms. The blocks themselves are formed in individual moulds. FBA is using the Putzmeister telebelt for the first time in Qatar (they were used on Jeddah Port) to make the blocks. As the ready-mix trucks arrive fully loaded, concrete is poured into the hopper onto the belt and the up to towards. The US and German-made machine has many advantages for this style of work because it uses a belt instead of a pump to pour concrete. This means you can pour more quantity in shorter times. It’s also a relatively environmentally friendly machine with very high transporting capacity which can reach up to 250 m3 of concrete/hour. Once we’re up and running the advantages of the system become very clear. The ready-mix trucks arrive in convoy, seamlessly swapping positions at the end of the belt with a very narrow set-up time. As with a concrete pump it’s operated remotely with simple controls over belt speed, positioning, etc. Concrete pouring is almost always about speed and the mould is soon filled, with a team assembled over the pour to ensure it sets as evenly as possible. With the completion of one block, the belt swings 180-degrees to an empty box on the other side to begin the process of pouring again. And so this process will be repeated day and night in the years ahead. It will be hard, tough and monotonous, but this is one corner of Qatar that is taking shape. And my goodness was I impressed.


Online Auction Wednesday, 29 August

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Excavators

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Special Interview

CMME catches up with Saudi Diesel, to talk the power of brands in KSA

DIESEL POWERED T

he fact that the top five clothing brands in Saudi Arabia: Mothercare, Next, Aldo, Bossini and Marks & Spencer, are all international ones shouldn’t really be much of a surprise considering that the Kingdom is not exactly known for its fashion industry. However the latest survey by Euromonitor shows it is becoming an increasingly fashion and brand aware country. Its malls are becoming much more outwardlooking and its roads continue to have a rich mixture of eastern and western badges but following a dip in 2009, Saudi Arabia’s strong economic performance in 2010 and 2011 hasn’t changed the habits of buyers and the market remains a highly price-sensitive one, with a strong focus on value. So while the Saudi Arabian market has become an increasingly brand conscious one. whether its cars, clothes or construction equipment its brands plus value that rings the bells of most buyers in the Kingdom. The mixture of this culture of value, brand awareness with the current boom in construction

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has created a rich opportunity for companies such as Saudi Diesel that occupy the middle ground when it comes to machinery supply. Saudi Diesel Equipment Co Ltd (SDEC) was established in 1978 and is part of the Abduljawad Group of Companies. Its main head quarters & manufacturing facility is in Al-Khobar. Additionally and it offers products and services through main branches in Riyadh, Jeddah, Madinah and other sub-dealers networks. According to Ibrahim EL Naggar, Head of Construction Equipment Department, Saudi Diesel Equipment, the priority for the company is to continue to straddle the divide between its OEM partners and its large array of customers. “The long heritage of SDEC allowed it to host a variety of tailored-made products & services for a wide range of customers, from large corporations & government entities to small & medium companies, and extending to individual establishments,” says El Negger. “The company serves many industries such as manufacturing, construction, oil & gas, governments, transportation, air ground support, and more.”


Built to perform Grove mobile telescopic cranes Grove all-terrain, rough-terrain and truck cranes are long-lasting and hard-working. High performance features help execute even the most challenging lifting jobs with strength, precision and control. Our cranes offer the versatility to tackle any project, with capacities ranging from t to t.

Grove cranes range in capacity

from 8t to 450t

Contact your dealer or visit www.manitowoc.com/cranesdealer


Special Interview

SDEC offers its products and services on short and long term lease agreements including diesel engines and generators, forklifts, excavators, compressors and maintenance services.

According to El Negger Saudi Diesel’s main vision is to be the “preferred local partner”. He comments: “It strives to achieve this vision by employing and developing the highest calibre of staff, providing the best delivery time in the market, and embarking in strategic long-term relationships with international equipment vendors. Saudi Diesel has always been known for its customer-friendly relationship environment, thus many consider SDEC as their ‘preferred local partner’.” Since its beginnings in the late 1970s, SDEC was for best known as a reliable and relatively innovative manufacturer and distributor of power generation equipment & related accessories, operated under its former name of Saudi Diesel Generators. However by the 1990s there was a change in emphasis for the company and its began to tilt towards more general equipment supply and began to earnest with a wider collection of foreign partners. “During the 1990s, the company extended its product portfolio and has become one of the world’s largest equipment distributors in the fields of Construction equipment, Lifting Equipment, Concrete equipment, and Rental Equipment,” affirms El Negger. Today SDEC is the sole distributor for many international brands including Doosan Infracore, Everdigm, Montabert, MTU, Allison, MEKA, Don Yang, Peng Pu, and more. It also runs Peax Equipment Rental a subsidiary of Saudi Diesel’s offering many short\long lease rental equipment such as power generators and related accessories, forklifts, air compressors, air

“VALUE-FOR-MONEY AND EXCELLENT AFTERSALES IS WHAT MAKES IT SUCCESSFUL” 32

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conditioning units, light towers, provisional power plants and other equipment. El Negger says much of the company’s success to date has been through “mainly strategic planning” which has ensured a continuous increase in our market shares. According to Saudi Diesel’s head of construction wheel loaders, excavators, concrete pumps, forklifts, and power generators are among the most popular products currently in the Saudi market. It’s a long list short on surprises given the line-up of his company’s inventory and what is required as the Kingdom pours billions into its infrastructure. Although that perhaps reflects the company’s careful build up to meet the demands of the market. El Negger however is clear on what makes a successful distributor in Suadi Arabia. “A combination of value-for-money products and excellent after-sales support is what makes it successful,” he says. Some Saudi companies are looking increasingly at opportunities abroad including the wider GCC market and nearby African countries. However Saudi Diesel as its name suggests is more intent on concentrating on not missing out on its domestic boom. He adds: “(No overseas expansion) Not at the moment, but in the future, maybe, in other GCC countries.” SDEC is in a comfortable position but how did it get there? He answers. “Embarking with strategic suppliers and focusing on few products and not scattering itself with too many. Owner’s decisions and the investment required to grow was also another factor in our success.”


GOT A JOB TO DO? WE’RE HERE TO HELP Terex Construction in the Middle East

At Terex, ‘Works For You’ is more than a slogan – it’s a promise. It’s what you can count on from our equipment and the Terex team in the Middle East, who is here to support you. From site dumpers to off-highway rigid trucks, compact excavators to backhoe loaders – we’ve got the right machine to do the work for you.

Terex offers the complete solutions: Tough, Quality Range of Construction Equipment for all Applications Network of Dealers Throughout the Middle East World Wide Parts Distribution Aftermarket Support Minimising Downtime

From choosing the right equipment, to providing the parts and service to keep it producing for years to come, the responsive Terex team is dedicated to your success.

Terex Middle East LLC Pinnacle Building, Sheikh Zayed Road P.O. Box No 282325 Al Barsha, Dubai, UAE Tel: + 971 4 3990381 Visit our new website: www.terexconstruction.com I’m a QR code. Scan me!

Bahrain Iraq Kuwait Lebanon Oman

Kanoo Autos International W.L.L. ALCA TIECO Michel Sehnaoui & FILS S.A.L. Al Fairuz Trading & Cont.Co.LLC

+973 7 709 8966 +962 6 5655070 +965 2 4819188 +961 1 580491 +968 2 456 2645

Qatar Qatar UAE Yemen Saudi Arabia

Al Obeidly & Gulf Eternit Trading WLL Rumaillah Motors W.L.L Abdulla Al Masaood and Sons Industrial Equipment Ashibami Corp.for Trading and Gen. Agencies MEDCO

© Terex Corporation 2011 – Terex is a registered trademark of Terex Corporation in the United States of America and many other countries.

+974 44 662 372 +974 44 606 091 +971 2 5507233 +967 1 420117 +96622907230


Special Interview

MATERIAL HANDLERS Muneer Chan Basha explains Haulotte’s rapid rise in the Middle East access platform market. CMME: One of the reasons CMME wanted to meet up and chat, was that Intermat Haulotte made a point of picking out the Middle East as an especially strong market in 2011/12. Muneer Chan Basha: Yes we are doing very well in the UAE, Oman and Qatar right now. These are our three main countries but we are also working on a major project in Turkey - which has led to a big order of machines this year.

CMME: How do you guys organise yourselves? MCB: When we (Haulotte Middle East) talk about the region we mean the Middle East and Africa. Haulotte opened the subsidary in Dubai Airport Free Zone in 2007. It was started by my boss, the managing director of the Middle East ( xxx)to provide its already existing customers with close sales and after-sales support. I handle the key

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accounts and the customer services. What we do really is about customer service here.

CMME: Is it possible to talk about some of the projects your machines have been involved in the region? MCB: I can’t give you any specifics as at the end of the day many of the projects the machines work on go to phase two and phase three. I don’t want to put our competitors eyes onto these projects. We have some beautiful ones in hand!

CMME: Ha – ok! One of the things that came across at Intermat was Haulotte’s progress and emphasis on safety. Given the region’s historically poor record in the area is this an important sell for you? MCB: Our first priority is on safety. When we talk


about safety being important for customer service we are also talking about operator safety. For each item of equipment we give basic training plus have a technical back-up team. In terms of the equipment itself we can talk about the load and safety. Most high capacity access platforms have loads of 230kg - if you overload the basket it gives out a warning. People turn to our products to work in safety. Managers and procurers should keep in mind that an aerial work platform is equal to safety and time-saving.

CMME: Obviously one area where a lot of your competitors are concentrating is is on aftersales. Take us through your spare parts operation. MCB: We have around 85% to 95% of spare parts at our Dubai operation. In terms of spare parts we can fulfill a requirement within 72 hours to Qatar, Oman and Syria, etc - apart from the UAE where it’s no time!

CMME: Is it easier to deal with the GCC than say a country like Syria? MCB: We can talk about the grass always being greener, and when we talk about the GCC we can say it is on the green side. This is especially true in Saudi Arabia where we are going direct.

CMME: Is that difficult to do in Saudi? MCB: As you know it is not easy to enter into Saudi but we are doing well. We have our legs and hands there. We are aiming for the next level. We are there on construction sites because - as always - that’s the main part of a portfolio of a construction business. We’re the 14th biggest construction machinery company in the world and it is always the place where we first land.

CMME: Okay, but products such as yours are popular in ports, oil and gas, etc. MCB: In our business, we are facing cycles. We have to follow the projects, the construction works. A range of machines follows the evolution and progress of construction works: at each phase of a project, specific range of products is required.

CMME: And so there is a cycle that gets repeated? MCB: In an emerging country, construction will always be the best performing sector. In Europe, for instance, where the economies are well advanced, our products will be very much in demand in the industrial sector. First comes the construction, then the industrial sector when our machines are needed for the maintenance works.

“IT IS NOT EASY TO ENTER INTO SAUDI BUT WE

WE HAVE OUR LEGS AND HANDS THERE. WE ARE AIMING FOR THE NEXT LEVEL.” CMME: Is the forecast of growth in the Middle East because of your potential in the Saudi Arabian market? MCB: No, it is because of the market. For the last three or four years we have been talking about the recession, but when one market slows down, like the UAE, you get other markets picking up. That is where dealers and manufacturers can find a balance when you have a big portfolio. I think we can say that the recession is no more, and slowly we are picking up.

CMME: How does Haulotte quantify that? Are you seeing more sales than you did, say, a year ago? MCB: Yes the market is definitely picking up. In the UAE, for instance, the opportunities may be less but it is picking up.

CMME: Is that across the UAE or in a specific area such as Abu Dhabi? MCB: Is not specifically Abu Dhabi or Fujairah but but across the UAE. Investors are starting to money back into the country and that is a good sign. You can see that construction projects have definitely picked up by 5% to 10%. It’s going slowly but it’s going in the right direction. Compared to the last couple of years, 2012 should be a good year.

CMME: Is Haulotte preparing to join the rush to Qatar? MCB: On documentation everything is on the pipeline but the real live picture may take some time. We have some indications that it will be a good market maybe in five years time. When it comes to Qatar and Saudi they want to developed steadily they dont want another UAE.

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Lifting your

business

higher

Toyota Forklift is the #1 Lift Truck worldwide and in KSA. With outstanding reliability, industry-leading quality and value and a variety of models and load capacities, we can meet all your business needs. And our comprehensive service network and mobile fleet workshops keep your business on the move.

Jeddah: Tel: 02 6877058 - Fax: 026812311 Riyadh: Tel: 01 4950898 - Fax: 01 2131779 Ext 212 Dammam: Tel: 03 8176593 - Fax: 038177169 Asir: Tel: 07 2234347 - Fax: 07 2215651


Product Focus

Raw power EVERYTHING YOU NEED TO KNOW.

page 58 LAST WORD

Kubota gets safety conscious and gives it advice on taking less risks with machinery and the advantages of not taking that call.

page 45

SECTOR ANALYSIS

page 40

RAW POWER

New Holland’s new Smart Fleet telematics system makes fleet management easy and effective when you’re in the cab.

Tech on on top, a quick look at new gadgets that can make life in the field a lot more pleasant and productive.

page 42 RAW POWER

JCB, the world’s number one backhoe loader manufacturer, today launches its most powerful backhoe loader to date - the all-wheel steer 5CX.

page 54 HOW

TO BE A BETTER SELLER

Your indespensible guide to the dos and donts of selling your old kit.

page 48 PIPE LAYERS

CMME goes rambling around France to track down Volvo’s new middle-weight pipelayer.

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New Products

EXTRA INFO FLASH

NEW HOLLAND CONSTRUCTION LAUNCHES NEW FM SYSTEM WHY GET IT? YOU WANT TO BE SMARTER, DON’T YOU?

N

ew Holland’s new Smart Fleet telematics system makes fleet management easy and effective. With Smart Fleet construction businesses can track and monitor the performance of every unit in their fleet to optimise the utilisation of their equipment and resources. Improved security with GPS tracking, geofencing, time-fencing and motion detection, as well as an engine re-start prevention functionality on selected models. Optimised productivity of the fleet through mapping of each vehicle’s activities and regular reports of its working status. Lower maintenance costs with automatic management of planned services and scheduled alerts. Higher resale value

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of their equipment resulting from an optimal maintenance regime. The Smart Fleet telematics system puts the fleet manager in direct contact with each machine, so they can remotely monitor the entire fleet and have a complete picture of where every unit is and what it is doing. They can even remotely access the maintenance information on each unit, develop and run their maintenance plans. The data collected from the machine and GPS satellites by the Smart Fleet system is transmitted through the mobile networks to the New Holland Telematics Web Portal, where the fleet manager will be able to view the information presented in a user-friendly format.


LIUGONG’S SUPER COMPACT WHY GET THEM? SIMPLY DOES IT IMPROVED SAFETY ADD ONS

SPECIFICATIONS: 365A t Operating Weight: U t Net Rated Power: L8 t Bucket Breakout Force: L/ t Dump Clearance at Full Height: N

TEREX TRIBUTE TO MORITSCH WHY GET IT? IMPROVED VISIBILITY HIGHER CAPACITY

SPECIFICATIONS: t Max lifting capacity: U t Jib length: N t EVO Cab Platform: NYNYN

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TEREX SHINING LIGHT ON THE SUBJECT WHY GET IT? ONE OF THE LARGER ILLUMINATORS YOU CAN BUY/RENT TEN UNITS PER TRUCK Terex’ RL 4000 light tower continues the company’s impressive run of form in the area. Dual-self braking winch design for fast and easy tower erection and extension. The 9.14 m light height at full extension for excellent illumination at long distances. The tower has 359 degree non-continuous tower rotation to provide pin-point light positioning at your work site. The bulbs at the top produce 4,000 Watts of light. Quiet 71 dBA sound levels at 23 feet (7 m). Excellent

fuel economy providing up to 60 hours of run time per tank of fuel. Maintenance-friendly electrical assemblies make troubleshooting, service and repair a breeze. 3 cylinder diesel engine powers a brushless self regulated type generator. Centerpoint lifting bracket and fork lift pockets make transport easy. Compact design allows up to 10 units per truck load. Engine protection includes high water temperature and low oil pressure shutdowns. The cabinet is also shielded

SPECIFICATIONS t Lamps: .FUBMIBMJEFY 8 t Generato: #SVTIMFTT)[ L8 t Engine: ,VCPUBEJFTFMIQ t Receptacles:0OF('*EVQMFY"70OF 5-"7 t Fuel capacity: M

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New Products

POTAIN LAUNCHES MADE IN CHINA CRANE

LIUGONG PREPARES TO DROP DRESSTA DOZERS

WHY GET IT? IMPROVED VISIBILITY HIGHER CAPACITY Potain claims its 20t MCT 385 is aimed squarely at regional demands but is also suited for work in other emerging markets. A result of design collaboration between European and Asian Manitowoc engineers, Potain says the crane combines features facilitating streamlined assembly and transport with high-strength structural components, resulting in a strong load chart with a maximum load moment of almost 400tm. Potain’s MCT 385 uses a new narrow design for its mast sections that reduces the width of mast sections, available as 3.33m or 5m sections, to 2m, making it well suited to congested urban sites. With these mast sections the crane can achieve a maximum freestanding height of 64.9m, and climbing the crane has been made somewhat easier as the hook height can be 50m above the last anchor points. Internal climbing is also possible. As well as the flexible mast sections, special attention has been paid to the development of a new pin connection system, with some effort focused on streamlining the jib and counter-jib sections to aid easy assembly and transport. Potain says that quick and easy maintenance was taken into account when locating the MCT 385’s frequency-controlled hoisting, trolleying and slewing mechanisms, with safety also addressed by the

WHY GET THEM? EUROPEAN STANDARD MOVERS TIER 2 PACKAGES LIKELY

inclusion of an independent safety line for riggers. Having completed an eight-month period of structural and component testing prior to the crane’s launch at the Zhangjiagang facility, eight MCT 385’s have been placed with Potain partner organisations for final field trials, mainly in Singapore and Hong Kong. Potain expects to make delivery of the first MCT 385 to be sold later this year. Manitowoc product manager for tower cranes in the Asia-Pacific, Raymond Tang, said: “There is established value in the cranes we build in Asia that our customers appreciate. Producing a topless crane here gives customers another choice, and we’re extremely pleased with the success of the crane so far.” SPECIFICATIONS: t Max load moment: 400tm t Mast width: 2m-5m t Height: 65m t Hook height: +50m

LARGE MODEL, REGIONSUITABLE 5CX FROM JCB

SPECIFICATIONS: t Engine: Dieselmax Tier 2 t Power: 118hp t Dig Depth: 6.51m t Bucket tearout: 6.23t t Shovel cap: 1.3m3

WHY GET IT? COMPLIANT AND SOA DESIGN 25% FUEL SAVINGS

JCB, the world’s number one backhoe loader manufacturer, today launches its most powerful backhoe loader to date - the allwheel steer 5CX. The machine has been designed to meet the needs of customers in Russia, and in developing countries in the Middle East, Africa and Latin America and is unveiled at Conexpo is Moscow. Tim Burnhope, JCB’s Chief Innovation and Growth Officer, said: “The 5CX has been designed as a flagship model for those markets that demand ultimate

digging and loading performance. “Russia in particular has a rapidly developing backhoe loader market and our customers there need a higher horsepower model, capable of faster travel times, quicker loading cycles and increased efficiency. Powered by a Tier 2 compliant JCB Dieselmax engine, the 5CX boasts an output of 118hp (88kW). The high torque, turbocharged and intercooled JCB Dieselmax engine drives through a six-speed Auto Shift transmission.

Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

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In January, LiuGong completed the acquisition of HSW (Huta Stalowa Wola) Dressta, a firm noted for bulldozer technology whose genetic makeup reaches back to International Harvester – one of the original developers of modern bulldozers. April marks the first time the dozer line will be presented as part of LiuGong. The LiuGong Dressta bulldozer starts with powerful, reliable Cummins diesel engines. The Cummins engines feature advanced electronic fuel injection systems that deliver higher torque and superior throttle response across the entire rpm range. They pack the

extra power today’s demanding construction and material handling customers require, while keeping fuel consumption and maintenance to a minimum. Plus, all three engines meet the strict EU Stage IIIA emissions requirements. The advanced electro-hydraulic steering system features pre-set travel speed selection and automatic downshift – to help keep the operator focused on the work, not the shifting. LiuGong’s exclusive two-speed steering drive design provides capability of gradual turns with full power to both tracks for increased productivity and less slide across tough terrain.

SPECIFICATIONS: Dressta TD-10M t Operating Weight: 67.7t t Net Rated Power: 384 kW t Max. Torque: 2379 Nm@ 1500 rpm t Blade Capacity: 39.8 m³


      


Sector Analysis

Tech on track

CMME takes a look at technology that can keep you on track.

T

he weather’s hotting up, so to escape the heat CMME thought it would cool down in the technology laboratory – they’ve got air conditioning - a take a look at some of the better technology solutions out in the market in 2012. As ever some of this technology may not quite be ready for the Middle East or not yet widely adopted, but there’s no use in burying your head in the sand especially when’s there’s money to save and machines to keep rolling. When CMME popped by the Caterpillar stand at InterMat it was easy to miss the corner of the massive area dedicated to one of its most exciting technological advancements, Product Link. Product Link is a vision of the truly connected construction site. A world where on a screen you can see how each of your machines is operating down to how hard the accelerator is being used. Cat designed the system can transmit larger volumes of data to provide customers more information about their equipment, helping increase productivity and reduce costs. Information can be transmitted wirelessly via cellular networks, allowing customer access to near real-time data from any Internet-connected location. Using global positioning systems (GPS) and wireless communications technology, Caterpillar

customers can monitor, track, and manage their heavy construction machinery at remote sites. Product Link can be easily retrofitted on any CAT machine, or other brands, so we can link the customer’s entire fleet, regardless of brand. The report data is then delivered through powerful tools that enable quick identification of actions required to maximize equipment uptime and control operating costs. Ultimately Product Link puts the fleet and plant manager back in control of work and maintenance cycles. A manager knows exactly how and when a vehicle is used, safety at the jobsite is facilitated. Time and location reporting lets a fleet manager know company vehicle locations at all times. Fleet managers also can create fences specifying when and where a machine is allowed to operate. Fleet managers are alerted to restriction violations. If a vehicle is operating during unauthorized hours, fleet managers are notified and can handle the problem in real time. In the past the feature has led to the recovery of numerous stolen vehicles. The system also allows monitoring of telematics productivity where you can track equipment productivity and identify opportunities to improve jobsite efficiency. By gathering data about the actual number of service hours a vehicle logs each

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Sector Analysis

day, fleet managers can move equipment to sites where needed and better utilised. Fleet managers can also collect information on how well each individual vehicle is operating. Access to this important data can help reduce on-site accidents due to equipment failure. The fewer mechanical issues, the safer the worksite. It can also reduce downtime, as repairs can be scheduled the moment a problem arises. Additionally, when a piece of machinery is repaired quickly, expensive repairs likely will be reduced in the future. Other features include Maintenance Watch which can be tied to preventive maintenance (PM) by notifying managers when a machine is due to be serviced. One of the interesting benefits of the system is that over time a full maintenance history of a machine can be built up, which may be a turn on to those looking to sell or even buy used Cat equipment and will surely helped preserve the machine’s longeveity. Another area that is proving to be a successful system in the field is the company’s AccuGrade system. Fitted to graders, AccuGrade is a computerised system that uses global positioning systems to ensure the accuracy of grading. Traditional methods use surveyors who stake out the grade and slope that the grader operator must follow visually. AccuGrade automates much of this

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work and makes it easier for the operator to achieve the precision needed to build a high-quality road. The automation adds to site safety with the removal of human surveying on the site. Cat’s website features a case study of surely what must be one of the most demanding projects involving the tech and informative regarding some similar challenges to what is faced in the Middle East. French customer, Sogea-Satom, used the system in the poverty-stricken east-African country of Burundi, when building three roads in remote regions of the country. “Improving roads is one of the first steps to alleviating poverty in the developing world. Building those roads by using the latest satellite technology can speed completion, reduce emissions and cut costs,” explains the report. “Despite the heavily wooded surroundings, which can mask satellite signals, the AccuGrade system has proven highly effective, helping the contractor complete sections far more quickly than expected.” Sogea-Satom calculated that the increased productivity expected from using AccuGrade in Burundi was similar to that found in more “developed” countries such as Spain. In Spain, two identical test roads under strict conditions, one with AccuGrade and the other without, showed with the system completed the job more quickly and used 43 percent less fuel than the conventional machines.

By gathering data about the actual number of service hours a vehicle logs each day, fleet managers can move equipment to sites where needed and better utilised.


Should we just be thinking in terms of keeping a track of machines, why not people as well? Canadian city of Edmonton is reportedly trialing a system that we called Scan-Link Armour, that keeps a tab of workers on construction sites. The province of Alberta city has turned to the Toronto developers of the technology after a series of accidents involving heavy equipment reversing into workers.

The city is so impressed by the system is brought in TV cameras to demonstrate the new technology at a recycling facility. Scan-Link will alert the driver of heavy equipment when another employee is too close to his vehicle. The Armour System employs radio frequency identification

or better known as RFID tagging. A receiving unit, mounted on the back of a piece of equipment, detects specially equipped hard hats and vests, which have thin transmitters sewn in. When a worker gets within six metres of the vehicle, an alarm sounds in the cab. That tells the operator to stop and either check out the dashmounted camera installed in some vehicles, or get out and

assess the situation. “This is an extra step in getting guys home safely,” said Blair Buchholtz, general supervisor of the city’s aggregate recycling program, where concrete is crushed and recycled, told local media. Jonathan Fava of Scan-Link said the technology “detects people and not objects” and is already in use in Fort McMurray. A system costs about $3,200. Over the past two years, there

were eight fatalities in Alberta involving equipment backing up and running over workers, including one last fall at a different Edmonton facility. “When you’re on a construction site and you’ve got a couple of pieces of equipment, every time they go into reverse there’s always a beeping sound, so what happens at the end of the day is you’re pretty much saturated with that sound,” explained Blair Buchholtz.

“IT AUTOMATES AND MAKES IT EASIER TO ACHIEVE THE PRECISION NEEDED.” In another practical test, the construction of a hydroelectricity plant in Slovenia, saw a single Cat®track-type tractor equipped with AccuGrade do the job of three equal-sized machines (other than Cat equipment, Cat claims) in four months rather than the planned six. It also saved two month’s worth of fuel. The industry other big cat, Bobcat has launched a new sonic tracer system for use with the two largest 244 and 274 cm (96 and 108 inch) heavy duty grader attachments earlier this year and it is available in the Middle East. The tracer emits ultra sonic signals to maintain a set distance or elevation from an object, surface or the ground. Installed on the blades of the 244 and 274 cm graders, the sonic tracer allows them to be used to grade, level, and backfill on a multiple slope terrain when following a string line, kerb stone, the gutter or even a previous pass as a grade control.

Grade accuracy is 6.4 mm, and the detection range of the sonic tracer is from 200 to 1300 mm. The system comprises a sonic tracer, two slope sensors and one rotation sensor, all of which are high quality Trimble components. The sensors communicate directly with the Bobcat Attachments Control Device (ACD). The operator can set the desired grade and tracer offset, while getting a read out of the actual grade and graphical feedback on both grade and tracer offset. The 244 and 274 cm graders feature a 6-way blade plus hydraulic side-shift of up to 33 cm left or right, both of which are fingertip controlled so that the operator can grade nearly any surface without taking their hands off the control levers. The hydraulic side-shift allows the blade to get into corners in confined areas as well as close to obstacles, such as a pole or structure inside a building.

Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

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Offroad Test

From pipe to pipe Volvo is pitching its new pipelayer at the Middle East market, CMME gets given a tour of it.

I

t’s barely been two years since Volvo unveiled the PL4608 and PL4611 pipelayers into the Middle East market boasting its state of the art load management system (LMS) giving the operator unprecedented information on the stresses being forced on the machine. The Swedish manufacturer is currently rolling a lighter version of the pipelayer that takes on the advances of the other machines but offering middle weight flexibility and grace. At its recent product show in Lorient, France, the PL3005D was almost conspicuous by its absence from the typical dancing digging – or should that be vaulting Volvo-ing? – that introduce the range, and was saved for a few intrepid hacks to pour over after the main event had finished. However the design and work into the model is clearly not an afterthought. The pipelayer remains an excavator at heart and shares much in common with its excavator brethren in the range (think of it as a swinging version of the EC300D or ECR305C). When other manufacturers are happy to settle

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with using bulldozers as their base model, then the company is onto something with offering more manoeuvrability on the ground. Again we have a model that is based on providing 360-degree coverage for the operator, it has the longer undercarriage which offset by a counterweight that gives it its stability and 50t tipping capacity rating. Volvo estimates that half of the projects in the world have a requirement for this size, and the Middle East is among its target markets. While it may sound large, up close it is surprisingly narrow, nudging just over 3m in width. Although its tracks measure up to 750mm, it is still easy to imagine that this machine is not only built to hold its own but also to be placed on to a truck for transportation. It is worth mentioning that the model CMME got up close and personal to, was packing a Tier 4i / EU Stage IIIB engine, but Volvo are targeting the global market with the machine and like Latin America, Russia and China, the Middle East is sure to be sent on Tier 2s.


With added reach Volvo pipelayers represent a major step forward versus conventional dozer-based, side boom pipelayers, the basic design of which originated in the 1920’s and has changed little since. Starting with two models in the region – the PL4608 and PL4611 – which were developed around the Volvo EC460C tracked excavator, the advantages of Volvo pipelayers are numerous and immediately apparent. Unlike conventional pipelayers, which are inherently unstable with the boom mounted outboard on a bulldozer side frame, Volvo pipelayers have the boom located inside the tracks, closer to the machine’s center of gravity, resulting in greater stability. The boom provides a clear view to the work area, but also a clear view to the load block at all heights and into the trench. The length of the boom provides for a longer

reach and hook height. Where there may be a risk of sidewall collapse, the Volvo machines can sit further back from the trench, thereby increasing safety. With machine tipping a constant threat on pipeline sites, machine stability was a prerequisite in the design of these Volvo models. Both feature a Load Management System (LMS), which enables the operator to see what can be safely lifted. Boom and base machinemounted sensors enable on-board computers to monitor boom angle, machine orientation and inclination; the computer uses this information to compute and display actual loads and related working loads in real time. The operator receives the information, together with graphical displays, on an in-cab monitor, together with visible and audible warning signals when the safe load limit is being reached.

While it may not necessarily sway some buyers, the machines are also able to be de-rigged and turned back into an excavator over night. Volvo is supplying kits to those that want them but be warned this is no operator in the field job as it requires two mechanics. The middle weight seems a much more viable alternative for those looking for value with a

machine that does two jobs. Even if we’re talking sticking to simple pipelaying then a machine that can dig a trench, lay a pipe and not cost the earth, could be rather tempting for some. Factory-installed hydraulic lines and connections, and the optimised hydraulic system, ensure there is no loss in performance when compared with a standard excavator model, claims Volvo. (With the pipelayer boom it can also handle other applications requiring heavy lift capability.) One of the interesting considerations that Volvo is placing into its pipelayer ranges is that of visibility, and this extends all the way out onto the 7m-plus boom. At 7.5m it provides a higher hook height and longer reach than previous models opening up a better field of view for the operation. Volvo says that it can also offer a 1.8m boom extension as an option which improves or allows for pipe unloading, stacking operations and tie-in operations. Basing it on an excavator and the 360-degree swing capability that infers, means that that the boom extension can be folded away if needed. The Swedish company is especially proud of the LMS, partly because it can improve productivity but you sense it also makes a neat fit for its traditional USP safety. It should be noted that the cabin has been tweaked improving robustness as well as visibility. The pipelayer also comes with a four bar hydraulic cab riser system that can give an extra 496 mm once the machine is unpackaged after transportation. (There is also an optional falling object guard (FOG) which must be factory installed. While the roll

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Offroad Test

over protective structure (ROPS) improves operator safety, you suspect that in the largely flat and open expanses of the Middle East it may prove not to be a popular upgrade.) But anyway moving back to the load management system (LMS). As before this uses sensors dotted under, on the side and on the boom to provide data on the orientation and the position of the boom and load. According to Volvo the wireless sensors continuously monitor the boom angle, machine

“PEOPLE LOOKING FOR FLEXIBILITY AND WILLING TO PAY SHOULD CONSIDER IT.”

Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

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orientation and inclination while relaying the information to the operator. Mounted to the right of the operator the displays shows both graphically and numerically the machine’s situation. But in what must be a first it also combines them with sound and lights that indicates whether there is any danger imminent. The cost aside, surely this is something that should be welcomed in this region where machines are frequently taken to the limit by careless operators? The lights are also on the boom as well so the guy whose job it is to give instructions and make sure the pipe goes in the trench also knows whether something is awry. Both operator and foreman then can see the same system of lights – which range from green through amber to red – as well as other operators. This is a terrifically simple and sensible idea. A free swing function disengages the slew brake allowing the superstructure to self-centre. The flag block pivots right and left, enabling the load self-centre and prevent damage to the wire rope through chafing. The mechanical anti-two block system, with a wireless sensor, avoids damage by preventing the winch blocks from coming into contact during lifting. To ensure better load controllability during simultaneous travel/lifting operations, a mode switch enables split pump flow. Selecting combined pump flow provides maximum performance when travelling or in stationary pipelaying operations. The ‘Fine’ mode gives high pressure and low flow for maximum lifting power, while also lowering fuel consumption. Throw in cost savings such as the fact that it has 80% spare parts commonality with Volvo’s excavators, the PL3005D should find a niche for itself even in the settled market of the Middle East. Anyone looking for flexibility in their fleet and are willing to pay more for it should consider it.


POWER

YOUR PROJECTS WITH PEAX

Get in touch

Toll-Free 800 166 PEAX (7329) KSA A branch of Saudi Diesel Equipment Co. Ltd. www.peax.com info@peax.com


Selling Kit

ISN’T IT? , Y S A E S I ESSARILY ERY N I H S? NOT NEC C R A YE U M B OM T C D DON’TS FR YOU ATTRA SELLING 10 DO’S AN ATION AND LIC ARE LES. HERE TRADE PUB S TOOL. ERY FOR SA DVERT IN A A IN H N ETTER SALE C A B A T A M U T O U R E YO VE K D T TA A EN U R U ES YO D YO U PR SELLER AN DS HOW YO – IT DEPEN U A BETTER YO E K A M L WIL CMME THAT

What are you selling? What is going to be of most interest to your buyer? If you are selling a tracked vehicle, take good photographs of the condition of the tracks. If it is a special piece of equipment focus on that aspect as you machine may be selling at a premium price – so prove that premium.

CLEAN MACHINE A clean machine is a loved machine. Whilst your intentions may be to clean the machine before a buyer turns up, many don’t bother when taking that photograph. Dirty machines in trade magazines don’t sell, or if they do, they don’t make the best price possible.

PHOTOGRAPHY Each sales process starts with a good photograph. Uses a good digital camera, not your phone. Don’t use a library image. Fill the screen with the image. Take four shots: front, back and both sides.

Top 10 tips to sell your kit

BlackChilli and Euro Auctions’ Barry Walker gives the dos and donts of selling your used equipment

SERIAL NUMBERS Document all serial numbers photographically. These won’t be used in the advertisers listing, but may form part of the ‘document pack’ that you can send on to a prospective purchaser. Also clean around the areas where serial numbers are located to prove there is no mischief going on.

HOURS & WEAR Be honest at all times. Buyers may be very annoyed if an advert states that the vehicle has low hours when this is not true. Or the machine has had a hard life when the advert says ‘light use only’.

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Selling Kit

NEXT SERVICE State when the next service is or should be due. A buyer won’t want to entertain the cost of a service before they have even used the machine and if it’s being sold on undertake a service in order to attract the next owner and secure a good price.

TYRES & TRACKS Worn tyres and tracks can be expensive and costly to replace. Be honest and state the truth. Use percentages and state that the machine has x% tyre or track wear. If you don’t, you may waste the time of any prospective buyer and may lose the sale.

SELLER BE WARE IF

YOU CHOO SE TO GO T HROUGH A EQUIPMEN BROKER O T ALWAYS M R THIRD PA AKE SURE EXPERIENC RTY TO SELL YOU ASK O E WITH TH THER SELL YOUR E COMPAN ERS ABOU Y FIRST. T THEIR

VIDEO Online sale sites, like Resale Weekly, have the ability to embed video into the sale listing. Now this is something you can do with a smart phone, a tablet or a cheap hand held video camera. Even pocket digital cameras have a short video function. A short video is a sure way increasing the interest of any buyer.

CHOOSE YOUR MEDIA Selling machinery has become a multimedia experience. It’s not just about printed magazines anymore. Now online and hand-held applications are making the global market an easier place in which to do business. Choose media channels that give you the seller more bang for your buck. Look out for smart phone Apps, as these are getting more popular.

VIEW RATES A GOOD and COMPLETE listing is 90% more likely to be opened and viewed many times more than a poor one. In this direction it is vital your info is correct.

Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

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Dealer Round-Up

FIND ME A DEALER!

BAHRAIN Al Bahar Sayed Khadem Al Durazi

The Bahrain market remains relatively quite but CMME selects its best dealers .

SAYED KHADEM AL DURAZI Bahrain MAIN BRANDS: Jeonil, Doosan, Hanwoo, Soosan,

www.skaldurazi.com CONTACT: +973 1762 0672

AL BAHAR GCC-wide MAIN BRANDS: Caterpillar, KoneCranes, Hiab Cranes, Terex Cranes, Atlet, Landoll Trucks

www.albahar.com CONTACT: BAHRAIN +973 1770 5177; KUWAIT +965 2 491 9436; OMAN +968 24 509 000; QATAR +974 4600 222; UAE +971 2 555 4200

Mohamed Abdulrahman Al-Bahar, founded in 1937, is one of the leading business houses in the Gulf. It has two major divisions: the Machinery Group and the General Trading Group. Through the Machinery Group, established in 1959, the company represents Caterpillar in Bahrain, Kuwait, Qatar, UAE and in Oman through an associate, Oasis Trading and Equipment Company. The head office is located in Sharjah, UAE. Caterpillar machinery and power systems are supplied by Al Bahar for a wide variety of applications including earthmoving, building and heavy construction, mining, road making, demolition, waste and scrap handling, electric power generation and marine propulsion. In addition, the company also supplies KoneCranes lift trucks, Hiab and Terex Cranes, Atlet warehouse trucks and Landoll narrow aisle trucks. With a staff of more than 1,500 people in 11 branches around the Gulf, the Machinery Group of Al Bahar offers customised solutions for equipment and power systems requirements, including sales and rental, new and used.

The company started its activity as a small brick factory, founded by the current chairman, Sayed Kadhem Mohsin Al Durazi. In 1963 he owned two trucks and started the transporting business. In 1970, the fleet was made bigger by inducting three more trucks. In 1972, he added a few heavy machines into the fleet, thereby laying the foundation for the Sayed Kadhem Al Durazi Contracting Establishment, which was formed in the year 1974. The company began growing and a trading department was added to the group, which started with the agency of Sehan Motor Company. This later gave way to the Daewoo Motor Company. At present, the company can boast being the agents of Doosan - Daewoo Heavy industries, one of the largest heavy equipment sellers in the region, Soosan Heavy Industries, Cheng Gong China and such other Heavy Equipment manufacturing giants. The company then laid the foundation stone for an equipment hiring company in the year 2003 called Al Haidariya Heavy Equipment Hiring. Universal Foundations and Universal Real Estate and Grand Tiger for Industrial and Mechanical are further developments of the company.

Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

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The Last Word

e to use the Kubota chos , to launch th on m safety paign for m ca n ow its ator care. greater oper

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