Page 1

ISSUE 13 2012 NOVEMBER

PUBLICATION LICENSED BY IMPZ

Where were you? Intermat ME disappoints

SAFELY DOES IT Top ten crane tips

THE NEW TOWERS Manitowoc goes mobile

CMME’S FIRST ANNIVERSARY

IT’S YOUR BIRTHDAY

A look back on year one

Plus: ACROSS THE INDUSTRY

* NEWS & VIEWS * EXCAVATORS * BIG-5 PrevIEW * AND MUCH MORE


Bahrain: Abdulla Ahmed Nass & Sons - +97317703123 - www.nassgroup.com Qatar: Nasser Bin Khaled & Sons Co - +97444580138 - www.nbks.com KSA: Roots Group Arabia - +96626996628 - www.arabian-roots.com Oman: International Heavy Equipment L.L.C. - +96824591299 - www.ihe-oman.com Jordan: The Commercial & Industrial Co (C.I.C) - +9625506260 - www.cic.com.jo Lebanon: Someco - +9611253600 - www.somecointernational.com Kuwait: Instant Access Co - +96522259972 - www.instantaccess-co.com UAE: Al Shirawi Enterprises - +97143718585 - www.alshirawienterprises.com Egypt: Unimar Egypt - +20233465180 - www.unimaregypt.com Turkey: Cukurova Ziraat - +902164512404 - www.cukurovaziraat.com.tr


Contents

20 IS S U E 1 3 r 2012 Novembe

04 Editorial

It is time to be honest about crane safety.

06 News

What’s happening across the region in construction machinery?

14 News Analysis

page 22 TOWERING AMBITION

David Semple explains how Manitowoc has had to adapt to the changing Middle East market and where the opportuinities lie.

CMME visits InterMat Middle East and wishes that it wasn’t alone.

19 COMMENT

Real progress in the industry.

20

Manitowoc goes mobile

Manitowoc’s David Semple looks back at some of the major changes to the crane market. .

26 Back to the big one

What can we expect from PMV Live and Big-5?

30 TRADE WINS

29

14

CMME wonders how the price of machinery is affected by the cost of shipping.

35 CMME: Year oNE

What were the major stories from CMME’s first year?

40

47

Raw power

39  NEW RELEASE ROUND UP  What’s hot in new machinery this month? Page 45  SECTOR ANALYSIS: EXCAVATORS  Your guide to latest tech hitting the Tier 2 market. Page 49  TOP TEN CRANE SAFETY TIPS   How can you ensure that your tower crane installation is safe as possible? Page 53  SHOW PREVIEW  Bauma China returns this month, so what’s in for the Middle East? Page 58   THE 

Page

 LAST WORD   Why the US machinery sector is leaping the old iron curtain.


Editor’s Letter

Publisher Dominic De Sousa GROUP COO Nadeem Hood Managing Director Richard Judd EDITORIAL Group EDITOR Stephen White stephen@cpidubai.com +971 4 440 9110 ONLINE EDITOR GAVIN DAVIDS gavin@cpidubai.com +971 4 440 9118 DESIGN DIRECTOR RUTH SHEEHY ruth@cpidubai.com

Let’s be honest about safety

W

elcome to issue 13 of Construction Machinery Middle East – the edition that celebrates our first year of active duty. Turn to our special look back on page 35 and join us on a journey through the year and to see some of the highs and lows of those 12 months as we ask what have we learned?

JUNIOR DESIGNER Percival Manalaysay Contributors DAVE REEDER, Karen Young ADVERTISING PUBLISHING Director RAZ ISLAM raz@cpidubai.com +971 4 440 9129 COMMERCIAL DIRECTOR MICHAEL STANSFIELD michael@cpidubai.com +971 4 440 9128 CIRCULATION

The magazine made its debut at last year’s Big-5/PMV Live event and it is fitting that we will be moderating the crane safety session at the shows in November (if you’re reading this before 7 November and are in Dubai please come along, your partipation will be more than welcome).

Database and Circulation Manager Rajeesh M rajeesh@cpidubai.com +971 4 440 9147

As I’m sure most of the regular raders are aware, I devoted a susbtantial a number of pages in the first year to the issue of safety and I would love to say that I’ve seen 12 months of progress in the area. Unfortunately I’m not so sure despite some grounds for optimism.

DIGITAL

While many construction site boards will tell us that they have gone several million man hours without injuries, the reality, according to statistics, suggests that the numbers have stayed consistent since the middle of the last decade. In the case of the UAE, which has garnered the most international criticism for its safety record (because of its high profile position as a major tourist destination in tends to get the most scrutiny), the constant levels seem improbable given the drop off of activity. I suspect that we’re seeing the effect of greater scrutiny of the figures which is balancing out the reduction in the number of cranes. To date the reporting has come from a mixture of official statistics and, morbidly, mortuary and hospital reports. At an official level there is interest in being able to tell the world good news about the country’s successes, even if it means that it is encouraging greater examination of those figures within the public domain. Often accidents expose a system failure in how a project is being run and be a major cause and a hinderance to tracing why an accident occured. Construction sites are complicated environments and a crane may fail for any number of reasons, it could be anyone or all of operator, crane, material, installation and structural failure. I’ve been on site and asked simple questions about maintenance routines and operator checks and got blank looks back. That’s worrying. I’ve also heard concerning stories about companies turning blind eyes to sub-standard replacement parts to maintain project schedules. That’s mystifying.

PRODUCTION Production Manager James P Tharian james@cpidubai.com +971 4 440 9146

www.constructionmachineryme.com Digital Services Manager Tristan Troy Maagma Web Developers JOEL AZCUNA online@cpidubai.com +971 4 440 9100 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 Printwell 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.

We are in a business where cutting corners can take lives and this is now on the agenda of local governments across the region. It is not as high as it could be but the industry’s poor record has been identified and will be targeted. Flauting fluctuating regulatory frameworks, confusing rules of liability within developing programmes of accrediated inspections should no longer be an opportunity to bend the rules but the kick up the tower section the industry needs to take responibility for its own actions.

ISSUE 13 2012 NOVEMBER

PUBLICATION LICENSED BY IMPZ

WHeRe WeRe YOU? Intermat Me dissapoints

SAFeLY DOeS IT Top ten crane tips

THe NeW TOWeRS Manitowoc goes mobile

Stephen White, Group Editor, CMME

4

CONSTRUCTION

MIDDLe eAST

November 2012

CMME’s FIRsT ANNIVERsARY

IT’S YOUR BIRTHDAY

A look back on year one

Plus: ACROss THE INDusTRY

* NEWs & VIEWs * EXCAVATORs * BIG-5 PREVIEW * AND MuCH MORE

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


News Round-Up

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

Cat’s suave new turkish operator Daniel Craig takes control of a Caterpillar excavator at the start of his new adventure, Skyfall. His novel operation of the 320D on a Turkish train is bound to become an iconic image from the film.

Kingdom Tower piling contract award Saudi Bauer Foundation Contractors piling contract win signals start of work on Jeddah’s one kilometrehigh Kingdom Tower. Bauer Spezialriefbau’s division Saudi Bauer Foundation Contractors has announced that it has been awarded the $32.24 million contract to complete the enabling piling work on the Kingdom Tower in Jeddah. The announcement made last week means that a clear picture is beginning to emerge of how the world’s tallest tower will be built. Saudi Bauer’s contract will involve 270 bored piles with diameters varying between 1.5m to 1.8m. With the contract worth more than $30 million, the piles will cost $110,000 each. According to Saudi Bauer Foundation,

the enabling works are expected to begin before the end of the year and are planned to take about 10 months to complete. Two Bauer BG 28 and two BG 40 piling rigs will be deployed. The piling work on Burj Khalifa in 2004, involved the placing of 192 piles down to a depth of 50m. Kingdom Tower’s 270 piles will need to go down to 110m. The Kingdom Tower is due to be completed by the end of 2018 and will need to scale at a rate of four floors per month to be completed in 2018. Burj Khalifa also averaged a rate of three floors per month.

MENA investing $190bn in railways The Middle East and North African region is one of the fastest growing rail markets in the world, with an estimated project value of $190bn.

T

he Middle East and North African region is one of the fastest growing rail markets in the world, with an estimated project value of $190bn, rail experts said during a conference in Abu Dhabi last month. However, only $18 billion of public investment in rail projects have been achieved so far, which is about 10% of what has been planned, Julian Herbert, director of product development at MEED Information Business, said on the sidelines of the MENA Rail Projects 2012 Summit. Speaking to Gulf News, Herbert said that with the advent of rapid population and urbanisation growth over the last 10 years, GCC states have started to look for alternative modes of surface transport, which is best represented by the GCC Railway Network, which is

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expected to be completed by 2017. “The most ambitious project covering the six GCC states is the development of a regional railway network linking them to be a viable solution for passenger and freight challenges, which will change the face of Transport and Logistics in the region,” Herbert said. “About 10% of the investments in the rail projects have been achieved so far. Dubai Metro was built at a cost of $9 billion, another project in Saudi Arabia cost $3 billion, a rail project in Egypt cost $3 billion as well, while other projects in the MENA cost about $3 billion,” he added. Essam Salim, chairman of IBIS Consultancy and a consultant on rail projects, told the newspaper that amongst the key challenges that rail projects face while building a

seamless GCC-wide regional network is the development of the individual country networks according to uniform standards and specifications. “Transportation modes in the GCC could change people’s lives with the various ongoing and planned railway transport projects that would be executed by the governments as such projects cannot be achieved without

government subsidies at early stages and later on they can be privatised,” he explained. Across the GCC as a whole, as much as US$149 billion worth of rail projects are in the planning or construction stages over the next decade, according to the Zawya report. In fact, among the GCC countries Qatar remains one of the most buoyant in this section.


Company intelligence  Al Jaber Group , the Abu Dhabi based conglomerate, is looking to extend debt repayments to creditors by five years, and has proposed the sale of non-core assets as part of its  multi-billion dollar restructuring , a Zawya Dow Jones news report has said. According to three people familiar with the matter, lenders have been told that they won’t face a reduction in what they’re owed. One of the UAE’s largest private employers, the Al Jaber Group is primarily active in construction, but also has interests in aviation and retail. Due to the financial crisis,  the company was unable to pay  its debts  as liquidity died up. Sharjah’s  German Gulf Enterprises  has signed up to be the dealer for Chinese dealer  Longking’s range of wheel   loaders , road rollers and excavators across the Gulf region. German Gulf Enterprises recently signed the agreement with Lonking from China for distribution of wheel loaders, excavators and road rollers in the territories of  UAE, Oman, Qatar, Kuwait and   Bahrain . German Gulf Enterprises told CMME that the official launch will be at November’s BIG 5 event with the pair displaying Lonking’s CDM858 wheel loader.  Etihad Rail ’s newly appointed CEO has participated in the US Global Infrastructure Conference, which aims to inform US companies with details of the infrastructure projects and opportunities across the Middle East. Attended by secretary of state  Hilary  Clinton  and senior representatives from more than 90 American companies,  Dr. Nasser Saif Al-Mansoori  participated in a panel discussion on UAE transport projects, which highlighted the long-term impact of infrastructure in economic development.

Aggreko rescue cements presence in RAK Temporary power provider Aggreko has stepped in to ensure Ras Al Khaimah (RAK) Co. for White Cement has standby power during maintenance shut downs. Ras Al Khaimah (RAK) Co. for White Cement turned to Aggreko when one of its gas turbines failed and standby power had been shut down for annual maintenance, causing a significant reduction in capacity. RAK Co. for White Cement produces a specially blended white cement dust that is in high demand and is supplied all over the GCC – around 450,000 tonnes of cement a year. The company awarded the contract to Aggreko due to its reputation as a highly agile and reliable provider. Within three days of

receiving the call, power generators were up and running, providing the client with 6 MW at 6.6 kV for an initial twoweek period – extended to three weeks when the client required additional time for the repair. Aggreko provided round-the-clock support – essential due to the critical nature of the power supply requirements. Highly trained engineers were tasked with running the generators 24/7 and in extreme conditions, as temperatures on site soared to over 50°C during the day. Chetan Elkunchwar, technical director, RAK Co. for White Cement, said: “We reached out to Aggreko without hesitation due to their reputation for providing power with speed and agility.”

 Tender updates 

1

The UAE’s Ministry of Public Works has revealed that it will release a major tender next month for a section on the continuing development of the Outer Bypass Road in the UAE. Work on the last phase of the road that extends from Dubai through Sharjah was completed in June and involved the construction of a 24 km stretch of highway in a contract worth $54 million.The second phase will extend the road by 17km to Ras al Khaimah with the total contract value of $46 million.

2

Construction work on the $4.5bn Northern Town project in Bahrain is set to finally begin, with the first 500 houses being put out to tender, more than a decade after the project was officially launched. Around 75,000 homes, a university, hospital, aquarium and aquatic physiotherapy centre were planned when HH Prince Salman bin Hamad Al Khalifa, Crown Prince and Deputy Supreme Commander, laid the foundation stone for the project in October 2002.

Haramain to start operations in 52 months – contractor The Haramain speed rail project is expected to begin operations within the next 52 months, Al Shuala Al Kabida, the contractor behind the project, said on Sunday. The Mecca-Madinah link will be part of a wider rail project that will link Jeddah, the two Holy Cities and Riyadh and Damman. The 444km high-speed, intercity rail transport system will also have links to the King Abdullah Economic City in Rabigh and the King Abdulaziz International Airport in Jeddah. “Al Arab Company will complete the first phase of the project very soon,” said Osama Adib Salama, the company’s finance director, during an interview with the Arabic language daily, Asharq Al Awsat. “The lay over time in each station will only be seven minutes to reduce the total duration of rides between Mecca and Medinah to two and a half hours, instead of five hours by road,” he added. The rail link is expected to carry more than 150,000 passengers daily, during the peak seasons of Hajj and Umrah. Set to be one of the GCC’s largest infrastructure projects, the railway link was initiated by the Saudi Rail Organisation, and will boost social and cultural connections between the Kingdom’s western cities. “It is the first project of its kind, the train will accommodate 420 passengers per trip, and it would be the first train in Saudi Arabia to run at a speed of 300kmph,” Salama said. He added that there would need to be amendments made to the train’s luggage system, especially for the accommodation of pilgrims’ luggage.

Otrac Heavy Equipment digs into Egypt Egypt-based Doosan and Bobcat dealer Otrac Heavy Equipment has been demonstrating Bobcat’s newest oil and gas trenching tool. Headquartered at Heliopolis, the dealer organised two separate demonstration events in the country to promote the Bobcat WS32 wheel saw attachment. Both events were organised and presented by Emad Saloum, Sales and Marketing Manager for Otrac, with the first taking

place in New Cairo, whilst the other was staged in the El Minya district of Upper Egypt. Before an engrossed audience of specially invited guests at both events, the WS32 wheel saw attachment was put through its paces, mounted on a new Bobcat A770HF all wheel steer loader to show why the wheel saw is ideal for carrying out the trenching work that will be required on future gas pipeline installation projects in Egypt. The WS32 wheel saw

attachment is the largest model ever offered by Bobcat. Designed to cut efficiently through asphalt, rock and concrete, the WS32 wheel saw has a fixed trenching width of 250 mm while the depth can range from 450 to 800 mm. The WS32 model and the rest of the Bobcat range of wheel saws can cut through a variety of surfaces including asphalt and reinforced concrete, making them ideal for demolition, road repair and creating trenches.

September 2011 November 2012

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77


News Round-Up

Keeping up Appearances

JLG’s owner, Oshkosh Corp rejected Carl Icahn’s takeover as a 47% increase in sales of telehandlers helped it to $8 billion in FY2011/12

Tower crane safety: Are we doing enough? Representatives from HLG, Manitowoc, the Committee for European Construction (CECE), crane inspector Velosi and Construction Machinery Middle East will meet at next month’s PMV Live to discuss the future of crane safety in the region. Safety in the construction industry is something that has been hotly debated in the region for many years. With cranes dominating the skyline, almost as much as the high-rise towers alongside them, it has been an on-going challenge to ensure that these potentially dangerous pieces of equipment are operated and maintained safely. PMV Live, the region’s leading event for construction plant, machinery and vehicles, will be looking to highlight the need for more stringent, locally regulated guidelines for tower crane safety by bringing in a number of industry experts to debate the topic. The framework for the debate will be a new report on the subject published by the Committee for European Construction (CECE) The panel session will host Dr Peter Schiefer, CEO of Wolffkran and current Chairman of the Committee for European Construction Equipment (CECE) Tower Cranes Section; Andrew Henry, operations manager – UAE, Al Habtoor Leighton; Thibault Le Besnerais, global product director, Manitowoc’s Potain tower crane line; and Richie Colley, Middle East regional lifting operations manager, Velosi. Leading the session will be  Stephen White, editor of Construction Machinery Middle East magazine. Ahead of the debate, Andrew Henry commented on the improvements in safety he has seen over the past few years in the UAE. He said: “There has been a dramatic shift since 2008,

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when there was a frenetic pace to construction to just get things built; there wasn’t so much of a structured approach to the involvement of consultants. Now, the influence of consultants is greater and they tend to require compliance to a set of international standards in regard to tower cranes.” The UAE, in particular, has seen such vast development in its 40 year history, and although the moves made to ensure safe working environments have been impressive in such a short space of time, there is still work to be done. A number of locally based companies, regardless of geographical heritage, have themselves adopted standards on par with Europe and the UK. Velosi’s Richie Colley added: “I think that the governing bodies are regulating the safety in tower cranes and other areas much better now in the Middle East and especially the UAE. They have put some great systems in place for the inspections of these items, but what I feel is lacking is more stringent rules on operators training.” It is such requirements that have led to this debate being developed for inclusion in the PMV Live programme, Nathan Waugh, event manager says. The session was borne out of a need and a desire from the region’s construction sector, whether it be developers, crane operators, manufacturers or suppliers, to increase levels of education regarding the safe operation and maintenance of cranes. The debate is intended to help raise awareness of existing safety regulations and standards, assess the ways in which such standards can be applied in the region and the best way to move forward.

Sitech targeting Tunisian earthmoving contractors Construction technology provider SITECH has set up a dealership in Tunisia that will target civil contractors working on infrastructure projects in the North African country.

Dammam busters GES said that it recently opened Dammam Terminal Yard cost $2 million to construct with an extra $3 million splashed on trucks and material handling equipment.

INto India Sany Heavy Industry hopes its $60 million Pune plant can help it become the number one excavator supplier in India.

SITECH NA will represent Trimble and Caterpillar machine control systems for contractor fleets of heavy equipment in Tunisia. Products available include Trimble’s portfolio of connected site solutions — site positioning

systems, construction asset management services, software and powerful wireless and internet-based site communications infrastructure. “SITECH NA will serve heavy civil construction contractors in Tunisia involved in a range of earthmoving applications such as the construction of roads, highways, railways and airports as well as site prep for large commercial, industrial and residential projects,” said the company in a statement.


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Al Rehab Equipment and Machinery Co. Ltd. SAUDI ARABIA Tel: +966 2 680 4444 Email: info@alrehab-ksa.com Al-Zabin International Group Co. For Heavy Equipment KUWAIT Tel: +965 433 4721/6017 Email: alzabin@alzabinkuwait.com Arabian Agencies Company WLL QATAR Tel: +974 44 50 0295 Email: araco@araco.com.qa

ASC Turk Makine Ltd. TURKEY Tel: +90216 581 80 00 Email: info@ascturk.com

Nassib Saad Est. Trading & Import SYRIA Tel: +963 11 222 5432 Email: saadmt@scs-net.org

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News Round-Up

Volkswagen ME appoints new managing director Volkswagen Middle East has appointed its new regional managing director, Thomas Milz, as it looks to build on a strong sales performance over the past year, it was announced on Wednesday. Milz has worked for Volkswagen for 20 years and has relocated to the Middle East from the company head office in Wolfsburg. He replaced Stefan Mecha and has worked in Europe and spent eight years at Volkswagen of America. “I look forward to working with the Volkswagen Middle East team and its dealer partners throughout the

region building on the success that has been achieved to-date. Recent sales figures report 24% sales growth between January to September yearto date, with September 2012 being the strongest sales month in the history of Volkswagen Middle East,” he said. “Volkswagen Middle East has achieved great success over the last 12 months and I look forward to building on this achievement and driving Volkswagen forward to achieve its aim of being the number one volume car manufacturer in the world by 2018,” Milz added.

Shantui scores biggest ever Middle East regional order Chinese earthmoving specialist Shantui has scored its biggest ever deal in the Middle East – but won’t say who. Shantui has revealed that it is in the process of supplying 205 units to an undisclosed customer in the Middle East. The Chinese earthmoving specialist said that the order for an array of bulldozers, excavators, wheel loaders and forklifts will be completed by the end of October. According to Shantui, the deal marks the largest contract signed in the Middle East. “This is a huge step forward for Shantui in an ever-growing market,” said Jackie Chang, general manager of Shantui’s Dubai subsidiary, covering the Middle East and

Jubail-Damman rail contracts to be awarded before year end Saudi Arabia is expected to award contracts for the construction of a planned 115km rail link between the industrial city of Jubail and Damman before the end of 2012, a senior Saudi Railway Company official said. The world’s top oil exporter is spending billions of dollars to boost its infrastructure,

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which includes several railway systems, the longest of which will be a 2,750km line running from the capital Riyadh to near the northern border with Jordan. “Bids were received (for the Jubail – Damman rail link) and they are under evaluation. The project will be awarded before the end of the year,” Bashar Almalik, Saudi

Railway Company’s director of civil and track works, told Reuters on the sidelines of a conference in Abu Dhabi. He declined to go into specifics about the value of the contracts. “Most of the network has been completed in terms of construction. Passengers and freight will hopefully start in 2014,” Almalik added.

Northern Africa. “The increased investment in infrastructure has created excellent opportunities for our diversified line of products.” Shantui, which recently tied up a UAE distribution partnership with Genavco, claims that its latest range of earthmovers have been designed with the desert in mind. The company says: “The power trains and hydraulics on machinery such as the SD32D and SD42D bulldozers, and now certain Shantui excavators and wheel loaders, are designed to operate in harsh desert sands and temperatures. The dozers come off the production line already configured for desert conditions. A desert version of Shantui’s monster SD52-5 dozer is also under development.”


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News Round-Up

Lift and shift Middle East opens for business in Oman The Indian/Omani joint venture Lift & Shift Middle East has completed its first major lift as it enters operation in Oman. Lift & Shift Middle East is a joint venture recently set up between Omani company Fastco and India’s Apurva Parikh

Group’s Lift & Shift India. Like its Indian counterpart, Lift & Shift Middle East is a specialist heavy lift, offshore engineering and transport company. The two companies said that the JV will cater for the growing

“heavy lift demands of the local market through engineering and logistical support for moving heavy equipment and project based cargoes from different industries”. Last month it successfully completed a three-day 88t lift at the ADMA oil field.

Arab Contractors takes sideways look at African market Egypt’s Arab Contractors takes Steelbro’s MEC 2012-bound side-loader crane deep into Africa. Egyptian equipment contractor has been utilising Steelbro’s unique sidelifter crane on a number of projects on the African continent. The Steelbro sidelifter is a purpose built semitrailer, on which, a stpecially designed set of cranes are mounted, to lift and transport these containers and loads in varying types, sizes and weights, up to 45’ and 45 tonnes. The sidelifter’s ability load and unload containers directly onto the ground (whether smooth or uneven) increases efficiency and safety for operators. Steelbro says that UAE partner German Gulf Enterprises will be presenting the trailer at the forthcoming Middle East Concrete exhibition in November. Arab Contractors, which operates in multiple countries in Africa, working on large construction projects (for instance, large Stadium project builds, Government buildings, Airports and Roading projects), has proven to be useful test bed for the system. The Egyptian company chose to go with Steelbro’s system rather than having purchase or rent large crane units to unload containers on any construction site can be cost prohibitive and presents many logistical challenges especially when the project is

remote. Containers are moved from one end of the site closer to where they need it. Steelbro claims the ability to “speed up this operational requirement, provides for better productivity and makes the site more independent”. Steelbro says that this is typical of many world leading companies who are looking to leverage their

existing fleet costs to maximise return, fund new growth, and increase their competitive advantage. Arab Contractors found its investment of four sidelifter units in different countries allowed them to reduce their overall fleet running costs, so releasing capital funds for future expansion and improving productivity.

Iraq’s surprising skills gap The c-suite management sent to Iraq by major international companies, lack the same expertise as executives sent to other Middle East markets, said the country’s largest private sector employer, Al Fayha. The precast giant employs 1400 people across the region, and Al Fayha said the country is dependent on the foreign labour sent by international oil and gas, construction and development companies, but

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that the firm’s recruitment is not of the same calibre as that sent to other Middle East markets. Speaking to Big Project Middle East, Al Fayha deputy CEO, Salahuding H Al-Ibrahim, said: “We hoped these companies would send expertise that would benefit the situation and improve our capacities. There is a procedure to follow in projects and we do look to them to guide us through this but they do not do that.”

It’s a claim substantiated by MacDonald and Co director, Ben Waddilove, who says that opportunities in other Gulf markets are far more attractive. “That probably would be the case because there are other opportunities in the UAE, KSA and Qatar that senior management would want to go take. Iraq is a hardship placement and these people are senior so it is the last place they would want to go to, especially with a family,”


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News Analysis

All quiet near the Western Region Does the region’s very own InterMat-lite prove that there is a need for a second heavy machinery show in the UAE?

I

f you were looking to re-new your fleet and you are around Abu Dhabi last month, the show to go to was InterMat Middle East. As long as you were wearing a hat. For years Big-5 was the only show in town when it came to showcases for machinery and equipment in the UAE. The archetypal construction event, Big-5 encompasses the complete chain from drawing board to foundation to construction and fit out. However as it grew on the back of the boom at the end of the last decade, the machinery side of the event found itself increasingly marginalised. The launch of PMV Live, an event within an event, has helped divert attention back from the halls of taps and tiles but just as that started to gain momentum on the back of a busy 2011 event, it now faces a new challenge from upstart InterMat Middle East. That event opened for its second run at ADNEC, Abu Dhabi’s exhibition venue in October, wisely ditching some of the general construction fare of last year’s event to focus on construction equipment and machinery. Whether the resulting show was for you would have depended on how much money you’ve got to play with. The Chinese exhibitors that filled the central outdoor area last time around seemed to have got

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lost on the way (with the exception of LiuGong) to its new location at the other side of ADNEC. The remaining line-up was dominated by Western manufacturers and some local heavy hitters such as Manitowoc, Putzmeister, Sennebogen, JCB alongside partners and UAE names Kanoo, NFT and Al Faris. Throw in LiuGong, Doosan and Kobelco and you have got a fairly strong selection of kit – much of it new – to look at if you’re not a bargain basement shopper. Unfortunately the lack of shade with the mercury topping 40-degrees plus put a lot of visitors off spending much time outside. And indoors, early morning surges saw attendance drop off in the afternoon makingthe 100 exhibitor event desperately quiet during and after lunch. The exhibitor list may have been short but it was pretty varied. It also seemed to have attracted some of the higher brass from many companies to Abu Dhabi. Wander on a stand and you may have found yourself having a chat with the man that could make a real difference to your existing partnership or open doors to a new one. Anyone on the contracting side would also have benefitted from the fine conference that dug deep into the Abu Dhabi government’s plans for infrastructure and general


Corruption holding Iraq back As Iraq’s parliament continues to negotiate the country’s long awaited infrastructure law, one of the county’s leading construction firms has raised concerns over the way projects are being bid and budgeted for. Referring to recent project bids and published figures on project budgets, deputy CEO of Al Fayha, the country’s largest private sector employer and precast manufacturer, says the much disputed law will need the government to provide assurances to international private sector firms for them to buy into the country’s regeneration. “On one occasion we bid for 60% of a project at $53m, then heard it had been awarded for more than $400m, when it shouldn’t have been more than $120m,” stated Salahuding Al-Ibrahim. “There are seven smaller intersection bridges to be built, each for $10m and for a bridge of that size, that’s big money,” he added. The infrastructure law is being disputed by opposition MPs, despite the best efforts of Prime Minister Nouri al-Maliki to push it through. According to the Prime Minister’s party, the infrastructure law would allow the Iraqi state to take out ‘loans’ with companies tasked with jobs and then repay them at a later date. In September of this year, the Prime Minister called on the Parliament to endorse the infrastructure law for an amount of $36bn, but it was rejected by both the al-Iraqiya and Kurdish opposition blocs. “Because of the ambiguity in the legislation with regard to how money will be spent and how it will be managed, this draft law opens the door even wider to financial and administrative corruption,” argued MP Haider al-Mula, a member of the main opposition party, Iraqiya, according to a report by Iraq Business News. Suggesting a solution to the issue, Al-Ibrahim said the banking sector needed urgent reform, so as to allow native companies to access the necessary finance to meet ever bigger projects. “This is one of the main issues obstructing our expansions that will better serve the clients. For example, when you approach the bank with a tender and request the relevant bond, the system cannot accept the new format, so you risk a stop to the projects.”

construction. There was a sizeable stand on the show floor ensuring this looked like the most governmental representation. It may have lacked the buzz of Paris but the fact that it had genuinely new equipment and high level attendance made it deserving of the industry’s attention. Unfortunately despite a lengthy promotional campaign since the last event, InterMat Middle East was empty at times. With many exhibitors opting to choose InterMat Middle East over Big-5 it may have been the only chance to see some of this kit side -by-side for some time (where else are you able to look at both JCB and Bobcat compacts at the same time and metres apart?). Their enthusiasm was not matched by the wider constrution community. CMME spoke with several exhibitors after the show and there was a mixture of disappointment and consternation among them.

Among their concerns was the timing of the event. Being held close to Big-5 was always going to be a challenge but they had hoped the promise of a dedicated exhibition in the UAE capital would be a great draw for contractors based in the country. Given the sparse attendance that many complained about, it was apparently not. One of the biggest gripes, was the use of the outdoor area. Due to the renovation of the central plaza within ADNEC, the first machines some visitors saw were working behind a fenced off area. The outdoor area instead was on the southern size of the exhibition venue. Many complained that visitors could come into the indoor exibition and miss major names such as JCB and Manitowoc. If they made it outdoors – and few did – they then had to cope with the sun and heat. As anyone who has bought a property you take a South facing home if you want to

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News Analysis

maximise the amount of daylight. At InterMat Middle East, a lack of shading turned the area into a cauldron. Given that the event took place during the heat of the day, there were times where it was simply impossible to spend any time outside. Some booths had air conditioning but unless you enjoy the heat, then you may not have even made that far. Some exhibitors have told CMME that they enjoyed the event but found it expensive for the return. Moving kit, even when it is close-by can be an expensive exercise. One exhibitor that took an outdoor space said that he estimated that the number of business cards versus the amount it cost to exhibit equated to about $15,000 per card. The general consensus about the event was that it if it had taken place in Dubai then there would have been a greater footfall. CMME understands that due to licensing rules at exhibition venues, it would be unlikely that would be possible with PMV Live already at the World Trade Centre. One solution suggested by those that spoke to CMME is that it should be kept to a Spring date to avoid clashes. It would also mean the weather could potentially be a little more forgiving. This could cause problems in terms of clashes with the main InterMat show in Paris. The other solution is to be more aggressive with the marketing to raise awareness locally. Furthermore Intermat could try and be even more

competitive with its pricing to maintain interest with exhibitors. As ever, shows can be highly subjective when it comes down to assessing whether it is a success or not. There were some companies, which according to CMME’s research were among the minority, that enjoyed a highly successful event. Terex Finlay for instance was more than happy to announce that it secured a major order at the event. (One wonders if it was helped by its closeness to the front entrance?) Two shows down, InterMat Middle East has yet to make a real mark in the market. As it has said before, CMME believes that there is room for both PMV Live and a solely dedicated machinery event. Choice is a good thing after all. The challenge for the organisers now is to prove that they can deliver not only a serviceable event but an exceptional one that can inspire greater interest. We’ll definitely keep watching but will need a lot of convincing next time around.

“One exhibitor said that he estimated that the number of business cards versus the amount it cost to exhibit equated to about $15,000 per card.”

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InterMat Middle East feature a good line-up of exhibitors, most of who entered the event with great expectations. Many however said the show failed to deliver.

CHOICE


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Expert Opinion

Iraq’s war on corruption Gavin Davids says that now that the War in Iraq has ended, the country is facing a war of a completely different kind, one that is vital to its future as a successful economy.

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 GAVIN DAVIDS  OnLINE EDITOR BIg Project 

It’s been nearly a decade since the ‘War on Terror’ landed on the shores of Iraq and the country was thrown into chaos. For a long time since, the only news coming out of the country was bad news followed by more bad news. To say it’s been a distressing time for the Iraqi people is somewhat of an understatement. However, for the first time in ages, there’s now good news coming out of Iraq, with construction gathering pace and companies beginning to take a strong interest in the country. According to www.project-iraq. com, the country’s construction industry was valued at $5.6bn in 2010, having expanded by 4.4% that year. It is forecasted to grow annually by 6.18% until 2014. So with reconstruction projects likely to be worth billions of dollars starting to take shape, there’s money to be made in Iraq if you really want it. Welcome as this news is, concerns are already being raised about another issue that has plagued all developing countries at some point

or the other as they build their infrastructure from the ground up. Corruption has always hampered progress in the developing world, with a culture of kickbacks and bribes taking hold with alarming rapidity. Of course, Iraq is desperately trying to combat this, but it’s going to be a long and hard road. During a conversation with CMME’s sister publication Big Project ME, Dr Theodore Karasik, director of Research and Development at the Institute of Near East and Gulf Military Analysis in Dubai, warns that Iraq faces corruption across many areas, with the construction, oil and gas industries facing particular challenges. “Companies need to be aware that there is a difference between the regional areas and Baghdad itself. They need to know how these tribal areas work and will often have to deal with both the government and tribal authorities,” he explains. “In the south of Iraq, it’s a completely different business environment to Baghdad, which has

“Corruption has always hampered progress

in the developing world, with a culture of kickbacks and bribes taking hold. Iraq is desperately trying to combat this, but it’s going to be a long and hard road.”

more government control.” Salahuding Al Ibrahim, the deputy CEO of Al Fayha, says that one of the biggest challenges facing Iraq is the issue of project bids and published figures on project budgets. “On one occasion, we bid for 60% of a project at $53m. Then heard it had been awarded for more than $400m, when it shouldn’t have been for more than $120m,” he tells BPME in an upcoming interview. While there are efforts being made to draft legislation that will help the country plot its way out of the mire, one particular effort is causing a lot of consternation amongst opposition party members. The Prime Minister, Nouri al-Maliki, has been trying to push through a controversial ‘infrastructure law’ which he says will allow the Iraqi state to take out loans with companies tasked with jobs in the country, and then repay them at a later date. This has been met with vehement criticism from the likes of MP Haider al-Mula, a member of the main opposition party, Iraqiya. “Because of the ambiguity in the legislation, with regards to how much money will be spent and how it will be managed, this draft law opens the door even wider to financial and administrative corruption,” he claims in a report by the Iraq Business News. While Dr Karasik says that the infrastructure law is a good idea in principal, it could prove difficult to put into practice, particularly in certain areas. “The government in Southern Iraq (any province south of Baghdad to Basra) is into its own power and money game involving corruption and payoffs. Trying to bring everything under one umbrella (the infrastructure law) will be difficult.” So it’s clear that’s it’s going to be a challenging time for the nation of Iraq as it drags itself back on to the world stage, but with a sustained, strong and concerted effort from all parties, the country could be on its way to being a major player in the region.

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Manning it up

Heavy Hitters

CMME talks to Manitowoc’s David Semple for his take on the post-downturn Middle East market.

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W

hen it comes to job credentials, David Semple is simply the ideal man to be the vice president of sales for Manitowoc’s operation across the Middle East and North Africa. The Frenchman got his first taste of the Middle East in 1998 after an internship at the French Embassy in Damascus, Syria. It was there that he fell in love with the region and when he later got a job at crane manufacturer Potain he jumped at the chance to set up an office in the Lebanon. The Lebanon taught him, that while he was selling the dream of building high, the real value was being on the ground. In the years that followed he often would travel across to customers from all over the region by car, overseeing deliveries, installations and maintaining contacts. Manitowoc’s operation is now based in Dubai and from there he maintains a keen interest in a region that is now vastly different from the one he first encountered almost a decade and a half ago. Starting by looking at its closest, Semple has good news for those in the UAE. “The feeling, let’s use the word vibe is that it is picking up,” he begins. “Some projects that were frozen are being put back into movement. I think for those living here you see the simple things like the traffic, the occupancy in hotels and restaurants; you really see that the place is getting going again. There is a good feeling in the market. Has it translated into our business on the tower crane side? I would have to say no.” Manitowoc’s Potain brand of cranes – which are driven by dealer NFT – has been hugely prolific in the country, dominating the skyline of both Dubai and Abu Dhabi. Their work continues in the recovery says Semple, although he muses that most of them deployed in 2012 are older relics of the past boom. “They’re not very old. Probably four, five maybe six years old which is nothing,” he notes. Through its Potain brand, Manitowoc enjoyed a relatively buoyant 2010 and 2011 as it scored a string of large project deals such as the Princess Noora University development in Saudi Arabia. 2012 has proven to be a much tougher year.

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Heavy Hitters

An education in construction More than 180 Potain tower cranes, Grove mobile cranes and Manitowoc crawler cranes helped to build the world’s largest womenonly university in Riyadh, Saudi Arabia. Costing approximately $11.5 billion, Princess Nora Bint Abdul Rahman University is one of the largest construction projects in the Middle East. The three main contractors are Saudi Oger Ltd., Saudi Binladin Group and El Seif Engineering and Contracting Co.

“Some projects that were frozen are being put back into movement.” In any given year he says Saudi can be a 200 crane market, but then remarks that mega projects in Saudi, which can absorb 150-250 cranes on one job site can transform the market. “On one site you are most likely talking about 50% or 100 new cranes. There are few markets that support multi-unit orders in the hundreds in the world. That makes the Middle East unique. “There are other markets that are public sector driven like Algeria, at one time, Egypt and Pakistan, where you will get orders in batches. It’s a tender process where you either sell zero or 20/30 cranes.” There are currently 52 luffing jib cranes on the King Abdullah Financial District with contractor Saudi Bin Ladin Group, which he says were supplied brand new in 2010. He adds that it is also a ‘flagship site’ for the company. Another key benchmark project is the $11billion Princess Nora Bint Abdul Rahman University, which absorbed 180 different machines including not just Potain tower cranes, but also an array of all-terrain cranes. “That was an extremely challenging project,” he explains. “It may have stretched beyond the initial target, but it was an extremely challenging project that went extremely fast. With cases like that and the KAST project (the King Abdullah Science and Technology institute), you really get a mixture {in Saudi Arabia].” The past year has seen these kinds of projects grow thinner on the ground and with some planned projects “on the cards for months, that become several years.” The success of its KSA deployments have been tempered by a prolonged slowdown in demand for tower cranes. “2011 never quite happened. We had a couple of university projects with a contractor called Nesma [a Saudi contractor and oil & gas specialist] who took 12 tower cranes in one go. In 2012 unfortunately we haven’t had those sorts of multi-crane deals. For me, this year we have still lacked some of the mega projects CONSTRUCTION

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David Semple, managing director of Manitowoc Cranes in the Middle East, said Manitowoc was honored to provide the majority of the cranes for this project. “The cost, scale and prestige of this project all combine to make it one of the largest projects we have been involved with, both in the Middle East and worldwide,” he said. “It is backed by the King of Saudi Arabia, and is attracting a lot of attention.” Spearheaded by the Ministry of Finance and Ministry of Higher Education, PNU was launched by King Abdullah of Saudi Arabia to help empower women through education and employment. Construction began in February 2009 and is scheduled to end in mid2011 — although most tower cranes will leave the project toward the end of 2010. The first Potain cranes arrived in April 2009. Some were sold to Saudi Oger while others are working on rental

contracts. All were supplied by NFT, the UAE-based Potain dealer that covers that Gulf region. NFT is one of the world’s largest towers crane owners and is one of the longest-serving crane suppliers in the Middle East. Cranes from across the Potain range are being used onsite. The most popular models include 17 MD 365s, 16 MDT 368s, 14 MC 310s and 11 MD 345s. Nabil Al Zahlawi, managing partner at NFT, said tower cranes are managing large parts of the construction work. “The main role for the tower cranes is to lift the largest building components,” Al Zahlawi said. “These include precast and hollowcore blocks that make up the majority of the university’s buildings. The cranes are almost all working with full jibs, which range from 50 meters to 75 meters in length. Working heights are currently between 50 meters and 60 meters, but some cranes will climb to 80 meters as the project progresses.” The site covers 3 million square meters and is running on a tight construction schedule. To ensure the project stays on track, each building has at least four cranes working, according to the release. Al Zahlawi said product support is a vital element to staying on schedule. “On a project this size and with this work schedule, it is important to have the confidence and capability to fix any problems,” he said.


Heavy Hitters

that we saw in Saudi Arabia particularly in 2009 and 2010. Projects of that magnitude have not quite come back into the forefront.” He says that mobile demand is helping to ease “depressed” sales of its tower crane lines. He explains, sales of its Grove cranes have benefited from a shift to projects that suit rough terrain mobile cranes. The cranes are especially suited to oil and gas work, he says, although he has noticed a shift with demand increasing from the residential sector. “Business overall is challenging for some product lines and quite acceptable for others,” he says. “We’re trying to adjust the change in centre of gravity between the tower and the mobiles. Our tower business is quite depressed because there are a lot left over from the boom years, whereas mobile cranes are going quite well. They need to be replaced after several thousand kilometres, so I think there’s natural renewal of fleets.” While mobile cranes are commonly found in auction houses, tower cranes are moved via specialist agents. Noting the high levels of inventory in the market, he claims that local contractors and operators are learning about the difficulty of shifting used Chinese cranes. Many of which have taken share from the traditional tower crane powerhouses of the west. “I’m trying not to do a sales pitch here but three or four years ago you had a lot of people moving to the value proposition to lower their initial investment and get a higher return. But now they are learning it is not so easy to sell once they try to get out the used crane. Even through the best specialist dealers or websites, their Chinese cranes are not moving. There’s no interest. It is a buyer’s market and out of the supply there is people will always pick a Potain or a Liebherr rather than a Zoomlion or a XCMG crane.” Given its recent successes there, it is not surprising that Semple and Manitowoc are keeping an eye on the investment into hospital building Saudi.

He adds: “The other market we are watching very closely is Qatar. The feedback from my guys is that it is pretty disappointing at the moment. It is paradoxical. The masterplan is really impressive for the next decade, but the demand is nothing. There are a lot of mobile cranes from the previous boom in 2005/6, but they are borderline now in terms of being useful for new developments. So we’re certainly watching it – they have the money, the vision – but as of now, the contractors and rental companies are telling us there are no signs that a boom will be anytime soon.” He continues: “I think there will be a very sudden unlocking of funds. In a way it reminds of Kuwait in terms of their vision and the needs they have. They’ve been planning the world’s biggest refinery there for ten years and it still hasn’t happened. We plan it that it will be the cherry on the cake – if it ever comes out.” His region-wide brief makes him a valuable resource when it comes to markets further. He highlights the potential of one too frequently disregarded. “The Algerian government wants to build 3 million houses in the next two or three years. It also has that backbone of oil and gas.” Talking of oil and gas he says that Iraq’s tripling of oil output will cause a trickle down of opportunities that will “kick start the infrastructure building. A Korean company Hanwaa won a contract for 200,000 houses in Baghdad. I think that is a really good sign. They are really moving ahead.” Semple will be hoping that so will Manitowoc in the very near future.

“this year lacked the mega projects

that we saw in Saudi Arabia. Projects of that magnitude have not come back.” November 2012

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Special Preview

Is Big better? It’s the biggest show in town, but is it still the best? CMME looks at who’s coming to the Big-5 this month.

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A

nother year and another Big-5 rolls into Dubai. Generally regarded as the leading construction show in the region, the event pretty much covers the range of construction from foundation to hotel fountains. It’s big by name and big by nature. Attracting exhibitors from across the globe to Dubai’s venerable World Trade Centre, few could argue that when it comes to getting an entire industry under one roof it does an admirable job. However the show’s relationship with heavy equipment has not always been an easy one. Its location within the World Trade Centre means that it is easily accessible to anyone travelling to the region. One of the criticism of the recent Intermat Middle East event in Abu Dhabi was the location and distance visitors were expected to travel from Dubai, where they either work or will have been doing business. At Big-5 and specifically the heavy equipment event PMV Live, there are no such excuses. But there are other issues that dog the event in the eyes of many in the sector. Heavy equipment best lends itself to large open environments where exhibitors can lay out their entire ranges. Travel to Intermat in Paris or Bauma in China or Conexpo in Las Vegas you will see stands the size of small villages. At these events, you will also see live demonstrations from most major manufacturers. Even if you’re not a fan of cheerleaders, Aerosmith or acrobats, you cannot fail to be impressed by the chorography and spectacle. Those expecting a Bauma style event will be dissapointed by PMV Live. Space is limited with the centre and the outdoor area is also tight and compact. JCB has refused to repeat its Dancing Digger show seen at previous events and last year’s headline act Sany is rumoured to be upset at its results from 2011, despite shifting a few million dollars in kit at the event. While it may lack its previous spectacle, organisers dmg:Events must be commended for taking machinery seriously by bringing the PMV Live back

“Heavy equipment lends itself to large

open environments where exhibitors can lay out their entire ranges.” under its wing after the event was run by another organiser for a couple of years. A few years ago, the machinery show was housed at Dubai Airport. In terms of the size and space the event made a lot of sense. It certainly meant that exhibitors could finally present their machines in the way they intended. The downside was that it left machinery ghettoised and exhibitors split between having the outdoor area and supporting their national pavillions still back at the World Trade Centre. The net result was an event that suited some people but left many more dissatisfied. With the downturn the event was once again reunited to Big 5 but again failed to appeal to enough exhibitors, again leaving them with a choice of location at the back of the World Trade Centre (lost behind the marketstalls of the Chinese Pavillion), the outdoor area, and the advantages of buddying up and sharing costs inside their own national pavillions. With dmg:Events taking the show back under the wing last year, 2011 was the best show in some time. Outside you had a good mixture of companies such as Sany, XCMG and MAN Trucks while inside there was a strong representation from a variety of smaller companies. It is a shame then that a look through this year’s exhibitor list shows that many companies - and strong players - have either chosen to use Intermat

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Middle East as their major expo or decided to avoid the event all together. The exhibition remains the main event of course and in that regard it does feature Wolffkran, serial exhibition veterants NFT Cranes, Doosan, Jubaili Bros, XGMA, Bauer, MAN Trucks and Instant Access. It is also 50% larger than last year. (Presumably much of the extra area is inside Saaed Hall, given the lack of space outside). It is a good line-up but missing a few notable past stars of the show including JCB and Sany and some that were at InterMat Middle East a few weeks before such as Terex Finlay and Liebherr. This is the year that the event needs to really prove its worth or risk losing the sector’s attention entirely. To that end, dmg:Events have made the sensible decision of pitching it as a regional event. For them it is a difficult balancing act as the company is currently expanding the brand across the GCC but given the flat-ish nature of the market in Dubai, what other option did they have?

Staying relevant In the run up to the show, the event’s manager Nathan Waugh told Machinery that the emphasis of the event this year is to build on the stronger foundation of 2011. That exhibition he described as a ‘relaunch’. Where once Big-5 was the show that typified the build it tall, build it quickly vogue of its home city, Waugh has been careful to emphasise that it is now more about the residential and infrastructure construction seen across the entire Gulf region. “Manufacturers and suppliers of all types of construction machinery and vehicles have seen revenue improve, driven to a large degree by significant projects in Saudi Arabia, Qatar and the UAE.” This year’s event sees a number of new features including the addition of a seminar on infrastructure and the crane safety session, moderated by Machinery’s editor Stephen White.

According to Waugh, last year’s relaunch, had the aim to “very much to ensure that we provided an experience, more than just an exhibition. The construction machinery industry is incredibly animated and we wanted our exhibitors to have a platform that reflect that.” The crane safety seminar includes representatives from HLG, Manitowoc, the Committee for European Construction (CECE), third party crane inspector Velosi alongside Construction Machinery Middle East. There is also expected to have participation from the municipality. It is certainly a strong lineup with Dr Peter Schiefer, CEO of Wolffkran and current Chairman of the Committee for European Construction Equipment (CECE) Tower Cranes Section; Andrew Henry, operations manager – UAE, Al Habtoor Leighton; Thibault Le Besnerais, global product director, Manitowoc’s Potain tower crane line; and Richie Colley, Middle East regional lifting operations manager, Velosi, all recognisable figures in their field of expertise. Safety in the construction industry is something that has been hotly debated in the region for many years, but rarely discussed in an open forum. The panel will highlight the need for more stringent, locally regulated guidelines for tower crane safety by bringing in a number of industry experts to debate the topic. The framework for the debate will be a new report on the subject published by the Committee for European Construction which emphasises straight forward checking.

The exhibition remains the main event of course and in that regard it does feature Wolffkran, serial exhibition veterants NFT Cranes, Doosan, Jubaili Bros, XGMA, Bauer, MAN Trucks and Instant Access.

“Manufacturers and suppliers of all

of construction machinery have seen revenue improve, driven by Saudi Arabia.” November 2012

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Import Export Trading

Trade wins? I

f there is one nationality that can be identified with both the material handling sector and shipping and trading – then it has to the Dutch. Paul De Jong of Forklift Truck Centre explains that between them, fellow low landers Belgium and their cousins in Germamy that when it comes to global shipping its closed shop. “It is us, Belgium and Germany. You will see people from all three countries. You also see it in earthmoving equipment and traders. In port equipment it is also the Dutch and the Germans. Forklift company’s two biggest competitors are Dutch and German.”

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CMME talks to Paul de Jong at the Forklift Truck Centre to get a handle on how the import/ export business works in the Middle East. Suffice to say that he shares a perspective on the global trade of equipment. Much of his role in Dubai is managing the often complicated logistics of moving crates through the network of ports and logistics hubs, calculating whether something is better of moving across land or by sea to get to the final destination. As an example he says that Brazil has become more open to shipments from Europe as the cost of shipping rises from the US. “We sell more and more to South America because the shipping costs are now more or less the same as shipping from America. It is far easier and cheaper


to get a shipment from Rotterdam to Shanghai than from Le Harve to Marseilles.” The prices he says fluctuate because of the liners but also the ports themselves. Dubai, he says, is far cheaper than Qatar. “It comes down to where are the ports and what is the competition? If you look now at Abu Dhabi, Dubai and Ajman they are competing on prices.” Potentially the advantage in terms of those shipping in equipment is choice as capacities increase. While De Jong agrees that it is good to have choice he also has reservations. Liners like Maersk have contracts with certain ports that guarantee quantities and thus holding back flexibility for shippers. As a shipper himself, De Jong says that he has noted that these are major factors in the final price of equipment. “Shipment is a major part of the price when you look at Reachstackers,” he says. “The prices are bouncing around and nobody really has a clue. I’ve seen shipping prices double in one month.” While the products they ship are governed by supply and demand, the liners themselves are costed by other factors such as port and ship capacities. He claims that some liners to be profitable are forcibly lowering their capacities. “Look at the Bosphorus. There are vessels there that are shut down. Shippers are creating a lack of capacity. The average cost of a huge liner can be $80-120,000 per day. If you shut them down they will cost you maybe $10,000 per day. If you create under-capacity, shipping prices go up and they can be profitable with other lines.” As a company reliant on imports in the region, the problems of maintaining the business are fairly apparent. “With the small equipment, yes (such as forklifts). Luckily with the big equipment such as reach stackers there are not that many people in the world that do it.”

November 2012

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CMME is 1

The year that was CMME looks back at its first year and reviews some of the big stories

November 2012

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CMME is 1

ISSUE 1 2011 NOVEMBER

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all it the heavy equipment sector, construction machinery or even PMV, but when we went to press with the first issue of Construction Machinery Middle East it was never a done deal that the GCC industry was ready for an independent, dedicated magazine and website. Hopefully a year down the line, we have not only proven that it is was needed but it was long overdue. Anyway that’s enough of the sales pitch, let’s look back on some of the biggest news from the first year of Construction Machinery Midde East which we are modestly and with tongue in cheek calling YEAR ONE. The earliest editions of the magazine (featuring a distinctive black cover, an embolded Terex backhoe and cut-out of the masthead, we really weren’t doing anything by halves) were distributed at PMV Live and Big-5. The event was something of a return to form, with the majority of the equipment show finally back outside. By far the largest stand belonged to Sany which also recorded a huge order for several million dollars. Strange then the Chinese manufacturer was not completely satisfied with the results. Maybe it was saving its Yuan for its own purchase down the line. December is traditionally a quieter part of the year but the month is remembered fondly internally as the month Sales Director Michael Stansfield got to tap into its artistic instinct for the front cover as well as inner stresshound as he scoured the Middle East for an image befitting his vision. CMME welcomed editor Stephen White to its ranks in December. The month saw FAMCO complete the aqcuisition of Al-Rehab in Saudi Arabia, signalling its move into fully fledged regional player. Among the biggest news in January was Bauer’s work on Kingdom Tower, however because of the sensitive nature of the information, CMME was unable to publish info on the findings from test piling. Sany also announced its purchase of Putzmeister, the news rocked German industry. In March CASE Construction Equipment joined up with the Roots Group for the distribution of its full line of equipment in Saudi Arabia. The two companies outlined the partnership’s ambitions at an opening ceremony for Root’s new HQ and showroom dedicated to Case’s equipment in Jeddah. The Construction Machinery Show landed in April and machinery and equipment specialist Saudi Diesel completed the sale of its first machine at the

Construction Machinery Show which celebrated a successful launch in Jeddah. Project Qatar in May proved that Doha was no boom town. “Is the market dead? No, it will just take time,” said Aggreko’s Russel Moxham. “It’s a massive opportunity, the boom is coming to Qatar. It’s just nobody knows when.” Lonking’s profit warning signalled the end of the Chinese economic miracle in June. Doha finally started to roll-out its infrastructure contracts. Belhasa Trading and Development tried to steal a march on other firms by going into Libya. The 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. Meanwhile XCMG took a 52% share in Germany’s Schwing. Al Wasl Trading Group and Kanoo Group were revealed in July to be sharing the distribution of German truck mounted crane specialist Ruthmann in the UAE, Saudi Arabia, Bahrain and Qatar. In August it was revealed that Dubai’s Rental Solutions and Services had entered International Rental News annual list of the world’s Top 100 Rental Firms. Joined by Byrne Equipment Rental, it was the first time that Middle East companies have entered the listing, indicating a change in the global market and the increasing shift to rental from buying in the region. CAT’s CEO Doug Oberhelman describes the Middle East as “very hot right now”. Shortly afterwards he reveals that CAT is exporting out of China, indicating the slow down in the market. Brazil emerges as the next battleground. Saudi Arabia’s central bank revealed that financing for machinery imports increased to $3.6 billion in the first six months of 2012 in September With the Kingdom currently projected to spend at least $400 billion on infrastructure and development of its economy in the next eight years, the country is experiencing a surge in machinery demand. Dubai Metro reveals that it has transported 184 million passengers from the start of its operations. In October, thousands of contractors and engineering consultancies learn they could lose their commercial licences to trade in Abu Dhabi as they have failed to implement the Department of Economic Development’s new classification system ahead of November’s deadline. Finally Shantui proved that Chinese manufacturers are still in demand after revealing that it is in the process of supplying 205 units to an undisclosed customer in the Middle East.

GOING GOING GONE! The hammer comes down

Backhoes, compact loaders and excavators

is coming to Qatar – It’s just nobody knows when.”

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Regional dealer round-up

CaPEx TO OPEx The rental equation

Plus: Emission imPossiblE - thE tiEr 4 story

* sAFEty At WorK * Form FolloWs FunCtion

PUBLICATION LICENSED BY IMPZ

November newbie “Undoubtedly the first magazine in the Middle East to have an embossed black image of a backhoe with a cut out masthead. CMME makes its debut proving that it wasn’t going do anything by halves.”

ISSUE 2 2011 DECEMBER

GOING UNDERGROUND

INFRASTRUCTURE Roads to the future?

Piling it on

I LIKE TO MOVE IT! The bulldozer story

MOROCCO LINKS UP Major road projects

PUBLICATION LICENSED BY IMPZ

Plus: ACROss THE INDusTRY

*

NEWs & VIEWs

*

AuCTION TRENDs

*

IN THE lABs

*

AND MORE

December’s drama “Probably the most difficult issue to date was the second, thus proving the addage about sophmore jinxes. After a delay it finally hit the market and thankfully was warmly recieved. CMME was on its way.”

ISSUE 3 JANUARY 2012

THE CRATE ExpANSION Constructing the GCC’s next generation of ports

FAMCO ON FIRE

Becoming a regional player

CRANES AT KHALIFA

Installing at Abu Dhabi’s new port

THE YEAR AHEAD

The shape of things to come PUBLICATION LICENSED BY IMPZ

Plus: ACROss THE INDusTRY

“It Is a massive opportunity, the boom

DOING THE BUSINESS

EQUIPMENT FOCUS

*

NEWs & VIEWs

*

MARkET ANAlYsIs

*

TECHNOlOgY

*

AND MORE

January’s jamboree “The most controversial cover we attempted this year was finally passed after hours of debate. Could we actually send out a cover without a machine or face on it? Fortunately the reaction was great from readers.”


ISSUE 10 AUGUST 2012

ISSUE 7 MAY 2012

ISSUE 4 2012 FEBRUARY

PUBLICATION LICENSED BY IMPZ

TECHNOLOGY GAP

TOWERING AMBITION Work starts on

COMMERCIAL MENTALITY Bringing boats and trucks to the GCC

Is the region getting left behind?

SALE SEASON IN SAuDI

The Construction Machinery Show

Kingdom Tower

MINING BOOMING Digging up prospects

JAPAN: A YEAR ON An industry recovers

SPECIAL INTERVIEW

DIESEL POWERED Brand awareness with

ON THE BLOCK

FBA building Doha’s port

INVENTION AND INNOVATION sPECIAl

THE ART OF DESIGN

PUBLICATION LICENSED BY IMPZ

Plus: ACROss THE INDusTRY

*

NEWs & VIEWs

*

AuCTION TRENDs

*

IN THE lABs

*

AND MORE

The inspiring story of Merlo

PUBLICATION LICENSED BY IMPZ

Plus: ACROss THE INDusTRY

* NEWs & VIEWs * Off-ROAD TRuCKs * INTERMAT REVIEW * AND MORE

BALANCINg ACT

Liebherr mobile and tower

BE A BETTER SELLER

Saudi Diesel

The dos and don’ts of selling

PLuS: ACROSS THE INDuSTRY

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

February’s festival

May with Merlo

August’s arrival

“The Kingdom Tower story went through many guises before it was published, mostly because it was written as testing on the piles was still in progress. We had another cover in mind but this pulled from AS+GG who were revising its design.”

“An absolutely fascinating look into the mind of Amilcare Merlo and the ups and downs of creating a new machine. It would be difficult to find a wetter show than InterMat – CMME’s editor took it in on without a coat. And lost.”

“The abiding memory of this issue was the 45o in Doha Port with FBA – and a lot of waiting. We got there a couple of hours before it was cool enough to work and then they had to get the telebelt working. The site however was spectacular.”

ISSUE 8 JUnE 2012

ISSUE 5 MARCH 2012

ISSUE 11 2012 SEPTEMBER

PuBlICATION lICENsED BY IMPZ

CEMENtED REP

PUBLICATION LICENSED BY IMPZ

Concrete facts on sector

A KUt ABOvE

THE NAME sTAys

volvo’s downhill racer

Putzmeister powers on

wAItING GAME

sTAyING oN TRAcK

Handling Qatar’s pause

Rail projects linking the region

SHOW TIME

Special guide to the Saudi Arabian market

wHERE MAcHINEs Go Euro Auctions on the used market

sPECIAl lOOk AT TRAININg

MAKING THE GRADE CRANE COMEBACK

Keeping your team sharp

HOW TO lOOk AfTER YOuR lOADER

Towers return to the region

EURO ZONED OUT? Looking forward to Intermat

PUBLICATIOn LICEnSED BY IMPZ

Plus: ACROss THE INDusTRY

*

NEWs & VIEWs

*

TENDERs

*

NEW PRODuCTs

*

AND MORE

Plus: ACROss THE INDusTRY

* NEWs & VIEWs * OffROAD TEsT * bE A bETTER buYER * AND MORE

sTETTER: IRAQ Is NExT

GROUND-BREAKING! Bauer Machinery digs in **

**

*

*

Plus: & VIEWs POWER TEsT PREVENTATIVE MAINTENANCE Plus:ACROss ACROssTHE THEINDusTRY INDusTRY NEWs NEWs & VIEWs RAW OffROAD bE A bETTER buYER

ANDMORE MORE **AND

March’s magic

June’s jamboree

September’s smash

“The popularity of the ‘under the hood’ story really surprised us after the issue came out. It remains of the most popular stories on our website, which coincidentally made its debut in March.”

“A Genie training day on a hot and dusty May afternoon was nowhere near as sweaty as the quiz held after the event for the dealers that were on the course. Putzmeister’s team gave us a great scoop with “the name stays” story.”

“We looked at glamour locations Jeddah and Qatar this month. Our designer Pip spent hours deliberating over the front cover’s piling machine, probably inventing an entirely new way to crack earth in Photoshop.”

ISSUE 6 APRIL 2012

ISSUE 9 JULY 2012

ISSUE 12 OCTOBER 2012

PUBLICATION LICENSED BY IMPZ

RENTAL PLAYER Saudi Cranes takes KSA renting to a new level

GERMANY’S SECREt

Why are they so darn good?

OCEAN RACER

WHY tHE FuSS?

ExCLuSIvE Adil Khalid’s global journey

Brazil wants your kit

CoNtiNENtAL SHiFt

THE JCB sTORY

OLYMPIAN HEIGHTS

Winning on the world stage

BEHIND THE BADGE Mercedes promises to be bold

RULES OF THE ROAD RTA chief talks safety

BOBCAT BIRTHDAY Celebrating at Intermat

machinery show special

THE BIG REVEAL

EXClusIVE REPORT:

SNAKES AND LADDERS

Saudi show unwrapped PUBLICATION LICENSED BY IMPZ

plus: across The inDusTry

Finning at the South Pole

* news & Views * offroaD TesT * be a beTTer buyer * anD more

Plus: ACROss THE INDusTRY

* NEWs & VIEWs * FORKlIFTs * DEMOlIsHING THE MET * AND MORE

CMME slides into Yas Waterworld **

**

*

*

PUBLICATION LICENSED BY IMPZ

*

**

Plus: ACROss Plus: ACROssTHE THEINDusTRY INDusTRY NEWs NEWs & VIEWs & VIEWs RAW OffROAD POWER TEsT fIND AbE DEAlER A bETTER bACkHOEs buYER AND ANDMORE MORE

April’s attack

July’s JCB jaunt

October on Yas

“We were really struggling for an image that could grab the attention ahead of the Construction Machinery Show. Fortunately Bobcat came through with the curtain shot and the coverline wrote itself.”

“The visit to JCB’s headquarters came after a 12-hour flight and transfer. Delivered straight to the factory (by Sir Anthony’s driver) and several cups of coffee later, we got to see how a modern factory really works.”

“We spent months chasing Yas Waterworld and finally got the interview. We also learned about Finning UK’s Spencer Smirl going across Antartica with Rannulph Fiennes. Figuratively and literally two of our coolest stories.”

November 2012

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Product Focus

Raw power EVERYTHING YOU NEED TO KNOW. page53

 BAUMA  BEGINS 

What can we expect from Bauma China coming this month to Shanghai?

page 49

Tower crane safety

page 45

 SECTOR ANALYSIS  JCB benefits from Tier 2 work on its Dieselmax engines.

page 41

 AN E-XCELLENT   BOBCAT  

Bobcat follows its special edition E-16 with two new versions of the popular compact range.

An essential guide to the top ten ways to ensure that tower cranes are as safely installed to the region’s buildings.

page58  RUSSIA RISES 

Why are former cold war warriors new milennium business partners?

page 46   DIGGING DEEP 

CMME goes digging around the market to find out what’s happening in the Tier 2 excavator market.

November 2012

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New Products

Cat launches new hybrid excavtor Why get IT? EXtra fuel efficiency a greener solution

HOW DOES IT WORK? • Conserve fuel: with engine power management via the Cat ESP pump • Reuse energy: via the hydraulic hybrid swing system, which captures the excavator’s upper structure swing brake energy in accumulators, and then releases during swing acceleration.

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aterpillar has unveiled the first model in what it says will be a range of hybrid excavators. The Cat 36 tonne class 336E H is the company’s first machine to use hydraulic hybrid technology developed internally by Caterpillar. The move by Caterpillar is unusual insofar as other hybrid excavators that have come onto the market over the last few years have tended to be around the 20 tonne mark, a high volume segment of the industry and by far the most popular class of excavator in China, the world’s largest excavator market. Gary Stampanato, Caterpillar vice president with responsibility for the excavation division, said, “The 336 excavator – a recognised industryleading workhorse in our product line – made the most sense as our first choice for applying the unique hybrid technology. “The new 336E H hybrid uses as much as 25% less fuel than the standard 336E, without

sacrificing performance. No other hybrid machine in its class in the market can achieve these dramatic savings. Since fuel is one of the largest operating costs for our customers in general, quarry and heavy construction applications, this is a technology that directly improves their bottom lines.” Caterpillar defines a hybrid machine as one that is equipped with a device to collect, store and release energy during machine operation. The company said the 336E H captured energy when the machine slowed down or stoped, and then released it as the machine accelerated. It added that in many applications, an excavator might repeat the same cycle every few seconds, which represents a significant energy savings opportunity. The official launch of the Cat 336E H will be in April 2013 at the Bauma exhibition in Munich, Germany. Cat dealers will begin taking orders in February 2013, with factory shipments beginning the following month.


Bobcat gives E14 and E16 a Facelift  Why get IT? 25 years in development Unrivalled attachment selection Bobcat has followed up its special anniversary model of its E16 compact, with enhanced standard versions of not only the 1.6 tonne model but also its E14 compact excavator. The new E14 and E16 ‘Facelift’ models feature several new features and options focused on increased operator comfort together with tweaked components and engineering that aligns these models with the rest of the E-Series compact excavators. Featuring as standard a retractable undercarriage, the new enhanced E14 and E16 excavators offer responsive hydraulics enabling precise movements and fast cycle times. Both the E14 and E16 can be transported on a trailer towed by a small truck, van or even a mid-size passenger car.

The E14, equipped with heated cab, has an operating weight of 1500 kg and offers a maximum digging depth of 2301 mm. The E16 offers a choice of dipper sticks: a standard dipper stick and a long dipper stick. Equipped with heated cab, the E16 excavator with standard dipper stick has an operating weight of 1744 kg and offers a maximum digging depth of 2422 mm. Equipped with the long dipper stick, the E16 has a maximum digging depth of 2602 mm. Optional features include a premium Bobcat radio; four tie downs; blade extension rubber pads; a suspension seat and an auxiliary hydraulic line on the dipper stick. Both the E14 and E16 are powered by the 3-cylinder

9.9 kW Kubota D722 engine. High digging performance is enhanced by the stability provided by the dozer blade and the low centre of gravity of the machines. Both the E14 and E16 excavator models have the ‘cylinder-over-boom’ design. Since the cylinder is mounted on top of the boom, it is protected when working in tight spaces or with attachments. The oversized diameter of the cylinders enhances the breakout forces and lifting capacities of the machines. Picking up and placing heavy objects is therefore easy with either excavator model as the E14 can lift more than 300 kg whilst the larger E16 can lift more than 350 kg.Specifications (205SS).

E16 SPECIFICATIONS: • Operating weight with canopy: 1.6t • Digging depth: 2.6m • Dump height: 2.6m • Reach 4.2m • Engine: 3-cy Kubota diesel engine • Max speed: 4.8 km/h

 A portaBle Compressed  to impress  Why get IT? Drilling specialist boosted air delivery

 Crawling giant   from Doosan  Why get IT? QUARRYING HEAVYWEIGHTS ROBUST FOR THE REGION At the Bauma China 2012 Exhibition to be held in Shanghai in China from 27-30 November 2012, Doosan Infracore Construction Equipment will be displaying a wide range of new products from the company’s Doosan Heavy, Bobcat and Doosan Portable Power business units for the first time at the exhibition Centrestage in the Doosan Heavy display will be the new DX700LC 70 tonne crawler excavator, the top-of-the-range model in the Doosan excavator range. The new DX700LC excavator is designed and built to meet the needs of heavy duty mining and quarrying applications as well as major infrastructure

DX700LC SPECIFICATIONS: • Operating weight: 72t • Power: 401hp • Transport length: 43ft 6in • Dump height: 26ft 10in • Bucket capacity:5.98 cu yds (max) • Max dig depth: 25ft

construction projects. It has a modern attractive design and offers several features to give optimum value to the end-user thanks to outstanding productivity, superior comfort, high reliability, durability and maximum uptime. The DX700LC model will be shown alongside the Doosan DX500LC, DX420LC and DX380LC large excavators, the DH225LC-9 and DX230LC medium sized excavators and the DX60 miniexcavator. Complementing these will be the first showing for the new DXB Breaker Series from Doosan with all six models – the DXB35H, DXB45H, DXB90H, DXB160H, DXB170H and DXB190H – on show.

The comprehensive product range from Doosan Portable Power will form part of its Bauma Chine display. Formerly branded Ingersoll Rand, the Doosan range is built to withstand the rigours of everyday applications in the toughest conditions. Three Doosan portable compressors will be shown including the large XHP1070WDO model with a free air delivery of 30.3 m3/min of compressed air at a rated pressure of 24.1 bar. Like the other large

models in the range, the XHP1070WDO compressor covers not only standard pressure applications, but also more specialist uses including drilling and standby/temporary compressed air for industry. Doosan will also be showing the G630E generator with a prime output of 495 kW. The G630E is largest model in the its diesel generator range comprising a total of 10 models with prime outputs from 20-495 kW.

SPECIFICATIONS: • Free air delivery: 30.3 m3/min • Compressed air pressure 24.1 bar • Dimensions: 5.1m x 2.3m x 2.6m • Power: 349kW • Total weight: 6.5tt

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New Products

 150 tonner from XCMG 

 LiuGong E-series   expected to star  at Bauma 

Why get IT? POLISH POLISH Middle east applicable Now on offer with CE marking is XCMG’s 150 tonne capacity lattice boom crawler from its subsidiary assembly base in Poland, which is to be used as a springboard to the rest of Europe. There are now two CE-marked models waiting to find customers and there are plans to raise that offering to include the 450 tonner. “In Eastern Europe the potential is very big, especially in the former Yugoslavia where infrastructure is very backward. I hope in two or three years the crisis will be finished and we can aim at some Western countries too.” North Africa and the Middle East are targets too but they will be catered for from XCMG’s new factory in China, under its workshop transformation scheme. It also has a factory under construction in Brazil, to be completed in the next three years. According to Zhang cranes, including crawlers, will be assembled there from Chinese and locally-produced components. India is next on XCMG’s radar, with the company now looking for a joint venture opportunity in the country across many of its product lines,

Why get IT? CLOSES THE GAP ON WESTERN MODELS Greener and meaner

SPECIFICATIONS: • Rated load cap: 150t • Max. load moment: 8240kn/m • Engine output: 231kW • Overall span 12m • Lift height: 82m • Hydraulic drive: Full slew

 CP275 pneumatic rolled    out from Dynapac  Why get IT? INferstructure compactor improved service access Dynapac is demonstrated its CP275 pneumatic tyre roller at last month’s Intermat Middle East 2012 event. The roller is is powered by a Cummins engine and packs thermostatically controlled cooling fans that reduce the ambient noise level to comply with noise regulations. The Dynapac CP275 is equipped with a spacious platform with two operator seats, contributing to more efficient operation and providing excellent visibility. The spacious ROPS Cab equipped with air conditioning provides outstanding all-round visibility.

The new roller is powered by a Cummins engine, fulfilling the relevant emission regulations. Thermostatically controlled cooling fans reduce the ambient noise level to comply with noise regulations. Safety is an important element of the CP275 design. The dual-circuit braking system, a Dynapac only feature, maintains full braking effect even if one circuit is disabled. Servicing the new machine is simple. Daily service points are few and the large hood and location of filters and filter caps speed up routine service work. The front and rear types can be replaced individually. The Dynapac CP275 is

available with a compaction width of 2,370 mm and operating weights from 14,000 kg to 27,000 kg. The roller provides high quality results in a wide range of applications, such as finishing, sealing and soil compaction. Since the tyres are wider than the frame, edge compaction is no problem for the CP275. SPECIFICATIONS: • Compaction width: 2.37m • Max Op weight: 27t • Min Op weight 14t • Rolling width: 2.3m • Tyre overlap: 42mm • Wheel load: 3t (max)

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

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The 922E is the next generation crawler excavator from LiuGong, following in the tracks of the renowned 922D, with additional power, control and operating efficiencies. Smart technology has been the trademark of the 922D, and the 922E takes it to a whole new level. In the span of 18 months, LiuGong has improved operating efficiency in its excavators by a total of 10%, while reducing fuel consumption by 18%. The new E series machine boosts operating efficiency by 5% while reducing fuel consumption by 8% over the Series D unveiled last year. The Series D had already improved efficiency by 5% and lowered fuel consumption by 10%

over previous models. The 922E is a study in power and control, and it starts with LiuGong’s Intelligent Power Control System (IPC). The automatic power boost mode increases digging force by up to 10% for ten-second intervals, giving the operator an “on demand” boost for additional break-out power. The no-time-limit heavy lift system enables the operator to increase pressure to build force and reduce hydraulic flow to the attachment, while reducing speed, for added control during lifting operations. An automatic boom descend regeneration system allows the boom to descend faster, increasing productivity while lowering fuel consumption.

SPECIFICATIONS: • Engine: Cummins QSB6.7 • Operating weight: 22.4t • Bucket: 1m3 • Dig depth 6.6m • Dig height: 9.9m • Net Power: 113kW


concrete@saudidiesel.com.sa


Sector Analysis

Time to dig in CMME crawls its way around the excavator market to see how the slack in Chinese demand is benefiting the Middle East buyers of excavators

J

ames Bond uses one, so excavators must be pretty cool, right? Well actually they are. Although, like Bond there may have been changes over the years but their character has remained quintessentially the same. Staying with iconic British brands, JCB (was it approached to do Skyfall?) has announced a series of major changes to its 23-strong range of tracked and wheeled excavators with the unveiling of a line-up promising to be more “stylish, productive and more efficient machines”. In, what it is calling a ground-breaking move, some of JCB’s excavators are being powered by JCB Dieselmax engines for the first time ever – and in some cases deliver a staggering 24% improvement in fuel efficiency. In addition all 19 tracked and four wheeled models from 11 to 46 tonnes get a brand new cab and also take on a new look, a restyle which gives the JS range a stronger more rugged appearance. Typically the emerging markets tend to get left behind when new engine tech comes out of the OEM workshops, but JCB, which has a strong presence in China, India and several other developing markets, is fitting a Tier 2 variant into its 20-24 tonne ranges. JCB has been adding a 4.8 litre Stage 2/Tier 2 Dieselmax engine to 20 to 24 tonne excavators for markets such as the Middle East.

JCB says its engine has improved fuel efficiency by a massive 24%. It says that for a Chinese customer working a JS200 for 3500 hours per year, for example, this translates to an annual fuel saving of UK£ 10000 (US$ 15650). The largest market segment for excavators is in the 20-24 tonne weight range, accounting for just over one-third of all machines sold. A total of 80% of these are used in the developing economies, which are not subject to the more stringent US or European engine emissions legislation. JCB has also announced that the 4.8 litre Stage 2/Tier 2 JCB Dieselmax engine will power all 20–22 tonnes JS excavators destined for these markets. The model numbers are: the 20 tonne JS200 the 21 tonne JS210 the 22 tonne JS220 While engine power rating remains at 128Kw or 172hp, JCB has made a number of key changes, in particular incorporating new advanced hydraulic technology, with optimised pump settings and revised spool configuration. JCB has also modified the Advanced Management System to ensure that the excavator defaults to Economy mode on start-up. Bond may not have been in JCB but he certainly was in a Cat 320D in Skyfall. Caterpillar announced this month that it is to officially launch its first

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hybrid excavator at next year’s Bauma. The Cat 336E H is the company’s first machine to use a novel hydraulic hybrid technology developed internally by Caterpillar. Field tests have demonstrated this machine will significantly lower customers’ owning and operating costs. Caterpillar defines a hybrid machine as one that is equipped with a device to collect, store and release energy during machine operation. The 336E H captures energy when the machine slows down or stops, and then releases it as the machine accelerates. On a typical job site, an excavator may repeat the same cycle every several seconds, which represents a significant energy savings opportunity. “The 336 excavator – a recognised industryleading workhorse in our product line - made the most sense as our first choice for applying the unique hybrid technology,” said Gary Stampanato, Caterpillar vice president with responsibility for the Excavation Division. “The new 336E H hybrid uses as much as 25 percent less fuel than the standard 336E, without sacrificing performance. No other hybrid machine in its class in the market can achieve these dramatic savings. Since fuel is one of the largest operating costs for our customers in general, quarry and heavy construction applications, this is a technology that directly improves their bottom lines.” In his latest adventure, Bond spends a fair chunk of his time in China. The country may be suffering from too many machines in the market, but it is still making steady progress on the global market. LiuGong launched its new range of D Series excavators into the Middle East and North Africa CONSTRUCTION

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region via its Dubai subsidiary LiuGong Machinery (Middle East) last year. The D Series stretches across the 15 to 36 ton range and comes fitted with the company’s new generation of intelligent crawler excavators featuring computeraided systems including its push-button computer aided power control system (CAPC). When it was released LiuGong described the machine as an interim model and earlier this announced its next machine the E-series. “The E-series was designed and delivered in two phases – we rolled a portion of the machines’ improvements out two years ago at Bauma with an interim D-series, and have finished all the design improvements with this model,” said David Beatenbough, Vice President of Research & Development for LiuGong at its launch. Beatenbough, who has directed LiuGong’s machine design for six years, said this machine is the culmination of a production process that has been retooled to begin with the needs of western customers in mind. It’s one of the biggest product development projects LiuGong has ever undertaken. “We took our design and production process and turned it inside out. We always considered the customer in the past, but prior to becoming a global company, our customer was Chinese, we’ve known that market for 50 years,” said Beatenbough. “In this machine, we put aside what we thought we

“This is a technology that directly improves their bottom lines.”


Sany wants to dominate Indian   excavator market  Sany Heavy Industry hopes its $60 million Pune plant can help it become the number one excavator supplier in India. In an interview with the local media, Richard Deng, managing director of Sany India, said that the company earned $5.5 millon revenues in India last year. “We see the demand for construction equipment going up significantly over the next few years as the Indian Government seeks to support infrastructure growth. During XII Plan, infrastructure is likely to see investment

of $1 trillion. In an equipment market which is likely to grow to about $560 million by 2016-17, we are targeting sales of $75 million,’’ he said. “Once we have expanded capacity which will have the capability to generate total revenues of about Rs 6,500 crore, we see exports to the region contributing about Rs 2,000 crore,’’ he said. The company management was in Hyderabad to set up their 22nd 4S dealership in the country. It is hosting a dealer-customer meet here.

knew and got solid product market research to inform us what western customers really want and need.” Fellow Chinese manufacturer Sany Heavy Industry said last month that it hopes its $60 million Pune plant can help it become the number one excavator supplier in India. The factory could also serve near markets such as the Middle East. In an interview with the local media, Richard Deng, managing director of Sany India, said that the company earned $5.5 millon revenues in India last year. “We see the demand for construction equipment going up significantly over the next few years as the Indian Government seeks to support infrastructure growth. During XII Plan, infrastructure is likely to see investment of $1 trillion. In an equipment market which is likely to grow to about $560 million by 2016-17, we are targeting sales of $75 million,’’ he said. Bond may not have been there since Die Another Day, but South Korea’s Doosan is proving that it is on a mission of its own to launch its new range of crawler excavators in the Middle East and African markets. The new range comprises the DX225LCA, DX300LCA and DX340LCA models, which replace the previous SOLAR range, offering a new design and features particularly suited to the specific needs of the Middle East and African markets. The new excavators combine high robustness for increased reliability and lower running costs with several important new functionalities and technical improvements, including: a powerful Doosan Tier 2 compliant engine ideal for use in the Middle East and Africa and offering significant

“We put aside what we thought we knew

and got solid product market research.”

fuel savings (up to 15% depending on the working mode and the nature of the work site. Selected via a new LCD colour display panel in the cab, three operating modes for all the new excavators - Power, Standard and the Economy mode – allow a significant reduction in fuel consumption. In combination with these operating modes, the new EPOS controller ensures a perfect interface and adjustment between the engine and hydraulic output that optimises productivity and reduces fuel consumption by 5 to 15%, depending upon the mode selected. New generation components and an optimal separation of the hydraulic flow output needed for travel and the front workgroup enable a significant acceleration of movements with better smoothness and proportional flow. The operating weight of the DX340LCA excavator varies from 34.4 to 34.9 tonne, depending on the configuration, with the maximum bucket capacity ranging from 1.49 to 2.35 m3, ideal for projects involving mass excavation work. Equipped with the standard boom and arm, the digging depth is 7533 mm, the reach is 11168 mm and the digging height is 10345 mm. The DX340LCA is equipped with an air-to-air intercooler 6-cylinder Doosan DE12TIS Tier 2 compliant engine with a displacement of 11 litres, developing 185 kW (247 hp) of power at 1800 rpm (SAE J1349) using a mechanical injection system. The mechanical injection system ensures the engine delivers maximum power and torque, whilst at the same time reducing emissions. The machine is also equipped with an air-to-air intercooler 6-cylinder Tier 2 compliant engine.

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The Manitowoc family of cranes

Premium lifting solutions and dedicated customer support Manitowoc offers a full range of tough, reliable, high-capacity cranes to meet the lifting industry’s rigorous demands. All of our cranes — backed by Manitowoc Crane Care — are designed for quality and performance, ensuring the highest value for your money.

Contact your dealer or visit www.manitowoc.com


Crane Safety

CECE report ted a report the at ) have crea – ct periods Take a look ropean Construction Equipamroent und five distin focused for Eu . ommittee ane safety tower cr the CECE (C f dismantling o nd ts a e ec c n asp a inten a highlighting n, operation, m ectio design, er .

 Schedule   in repairs  Is any element – steel rope, limit switches, or other component – excessively worn? Replace slings if worn or frayed.  Keep a record  It’s a daily operation. Hoist operators must inspect their equipment daily before using it. This is crucial to prevent major accidents and machine failures.

 Ground support  Check brakes to ensure motions do not have excessive drift and that stopping distance is normal.

Top 10 crane safety tips Ahead of the crane safety forum at Big-5, CMME presents its guide to ensuring everything ties together.

leave it on the latch If a hook latch is required, check that it operates properly.

 The hook up  Never allow anyone to ride a hook or load

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Crane Safety

 check for leaks  Check for any sign of leaked oil on the crane and the floor beneath it.  weighing it   all up  Do not exceed the rated load capacity of the crane, hoist, cable, or sling.

 A third of all accident A study b y

s 

the Unive rsity of W revealed ashington that cranes in the USA ar construc has tion fatalities e involved in up to a third of . all

 lock and load  Lock out and tag out a hoist that is unsafe or needs repair.

 take the   slack  Remove slack from the cable, rope, or sling before lifting a load.

 safety labels  Are warning labels and other safety labels in place and legible?

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

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November 2012


Bauma China returns in November with Chinese manufacturing under more pressure than ever before.

The end of the boom? B

Key facts about Bauma

Frequency: Every two years First event: 2002

Venue: Shanghai New International Expo Centre, Shanghai, P.R. China Opening hours: 9am-5pm (Tue-Thurs)

auma China, the International Trade Fair for Construction Machinery, Building Material Machines, Construction Vehicles and Equipment, takes place in Shanghai between 27-30 November, 2012. At 300,000 sqm it may not be quite as large as the Intermat show in Paris, which grew to 375,000 sqm this year, but according to organiser Messe Munich it is the largest it has held in the country. Eugen Egetenmeir, managing director of Messe Munich claims the show is 40% larger than previous editions. He says that demand even exceeded the room available at its Shanghai venue “This statistic shows how important the Asian market still is for the global building machinery industry,” he said. “We are very pleased to report

that Bauma China will be taking up all the available capacity at the SNIEC, even though we were not able to meet every request for more booth space.” This event is normally a decent indicator of technology that is coming out of China and also the types of machines global manufacturers will be pitching at Tier II markets such as the Middle East. Traditionally the presumption has been that most machines sold will be shipped back onto mainland China but with the Chinese economic miracle currently in a malaise, nobody is quite sure whether the post show boats could be heading further afield. The Chinese government’s tougher stance on budgets and crack down on local government construction-led spending sprees has had the desired effect of holding back inflation but it has

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

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Show Preview

“sustainable construction and

modernisation are opening up new groups of customers for companies.” been a massive wake-up call to domestic Chinese companies as well as foreign manufacturers that had thought that the country’s appetite for machinery could never be exhausted. The boom drove capacities so far above current demand that it is unclear how long it will take manufacturing to be truly productive. The pre-show press release’s talk of “despite a slight slowing down in the pace of economic growth in China, this large country is still a veritable “hot spot” in the global construction sector” is more a reflection of the size of the market (it is still the single largest in the world) than the realities for producers. The successive failures of XCMG and Sany to raise money on the stock exchanges of China’s off-shore financial hubs, the collapse of excavator demand and manufacturers turning Chinese factories into export houses are all indications of arrythmia at the heart of the industry. According to estimates by the German foreign trade organisation, Germany Trade & Invest (GTAI), in the coming years the People’s Republic is set to

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

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further extend its lead over the second-largest internal market, the United States of America. After all, the Chinese government is again tackling gigantic infrastructure projects in its current fiveyear programme, running from 2011 to 2015. “For example, by 2015 they are planning to build 36 million social housing units, at an estimated cost of 169 billion euros,” it said. The burgeoning domestic market of the past decade allowed the Chinese construction machinery manufacturers to become major globa players. According to a recent report on the global construction machinery market by the international management consultancy Oliver Wyman, the Chinese manufacturer XCMG, for example, was able to double its turnover between 2004 and 2010, while Zoomlion managed to quadruple its sales. During the same period the broad-based Sany Group succeeded in increasing its sales five-fold to around five billion US dollars. As a result, these three major firms are now in the Top Ten of the global construction machinery market. While the first half of 2012 saw an almost 40% drop in demand, demand for construction machinery in the coming years is predicted to continue growing strongly, especially if recent interest rate cuts take effect. A forecast by the China Construction Machinery Association (CCMA), for example, predicts that in 2015, 100,000 cranes will be sold in the People’s Republic. That would be an increase of over 130 percent on the 43,400 units sold in 2010. High growth rates are also predicted for concrete mixing vehicles (+98%) and concrete pump vehicles (+88%). And, in contrast to the 3,019 asphalt pavers that were sold in 2010, in 2015 sales will reach around 5,000 (+66%). Much has been made about the upcoming changes in president and government, but history suggests it would be better to assume that there is more of the same to come at a political level although this does include a commitment to long term goals in urbanisation and infrastructure upgrades. The challenge for the larger Chinese manufacturers is how to remain competitive in their own crowded market while expanding globally. Caterpillar’s move to fulfill Middle East orders from China shows that they are no longer the only ones to use cheap Chinese production to keep prices down on the world stage. So, what opportunities do Western manufacturers have in the domestic construction machinery market in China? Tom Sieber, co-author of the Oliver Wyman reported: “Products from Western manufacturers are best suited to the premium segment of the market in China.” Also, construction suppliers from Germany have good chance, as Corinne Abele, a representative of GTAI in Beijing, confirms: “International


Bauma China 2010 in Retrospect

230,000 sqm 1,892 155,615 Exhibition space (gross): Total Indoor: 104,000 sqm Outdoor area: 126,000 sqm

Total Exhibitors: China: 1,152 International: 740 Countries: 37

“If it doesn’t happen, we are in for another kind of slow year in 2013.” construction suppliers have been represented in China for many years. The growing body of legislation as regards energy-efficiency and the themes of sustainable construction and renovation and modernisation are currently opening up new groups of customers for these companies.” Accordingly, demand for special-purpose machinery, energyefficient building systems, modern domestic engineering technology and insulation materials is particularly strong. After an absence of several years, Caterpillar, one of the industry’s most important key players, is returning to bauma China: The company will occupy

Visitors Total: 155,615 China: 86% International: 14% Countries: 171

all of Hall N1 at the Shanghai New International Expo Centre, or some 11,000 square meters of exhibition space. Rich Lavin, Group President at Caterpillar, on the key player’s return: “We are pleased to showcase new Caterpillar products and to highlight our product support capabilities at bauma China 2012. In total, Chinese customers attending this important show will see six new Cat products and have the opportunity to learn more about Caterpillar’s longterm commitment to supporting the important and growing Chinese market”. Caterpillar’s CEO Oberhelman recently pointed to rising numbers of building permits and a series of announcements about infrastructure projects – all of which would mean demand for his company’s equipment. Caterpillar is the world’s largest maker of tractors and excavators, and China is the world’s largest user of construction equipment. It’s a good fit for the company. “I suspect all of that is aimed after the leadership transition and most of that is aimed towards spring of next year,” he said. “If it happens, it’s going to happen then. If it doesn’t, we are in for another kind of slow year in 2013.” Shantui is perhaps China’s best-known earthmoving manufacturer and is planning to feature the SD10YS, a machine fitted with a Tier 3/ Stage IIIA engine. Other new machines on display will include its largest ever wheeled loader, the SL80W along with compactors. Fellow Chinese company LiuGong has been reluctant to reveal much about the specifics of its new launches for Bauma China. However the company is currently pushing its E-series range in global markets and it is predited that it will add to the range of crawler excavators. Bauer is launching drill rigs in its BG Value Line range. Three rigs are being shown include the BG 25, the BG 30 and a BG 36. One will be equipped with a kelly bar for a drilling depth of 72m, while the other will feature 2.8 m diameter drilling tools. Metso is introducing the Nordberg C120 jaw crusher to the Chinese and wider Asian markets.

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

November 2012

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The Last Word . Caterpillar Frozen waits charge into a ng di lea is market. the Russian

at: Endemic last month th ed ot n change, rs te Reu sts opposed to re te in ed st e rule of law corr uption, ve and unreliabl y ac cr au re stment and intr usive bu rr iers to inve ba n ow kn lel kaDialog in an are all w alysts at Troi an d t bank ne ar w growth ian investmen Russia’s . But the Russ rt ng ti po os re t bo us p Aug membershi TO W es se s. s or nonetheles tr uction sect rvice and cons yer of U.S.bu a as a consumer, se in Ch of d ea ah s rding to the Russia rank ipment, acco u eq g n io ct urers, buyin made constru ent Manufact m ip u p u Eq , of 12 20 Association firs t half of wor th in the China’s $405 million compared to o, ag ar ye a om 27 percent fr ian . on li il m ing the Russ 90 $3 of those br av d ar gu n va At the Caterpillar. ld’s bigges t t is typically ke ar m that the wor y g sa to in ir w fa o sh thusias tic at In fact it is vertiably en is y Why the US is n pa m co mac hiner y ntr y. mer enemy s in the cou d continued love to its for its prospect tent 2011 an po a d ye jo ion. The Caterpillar en ussian operat R s it s to in ly vi capacity at it to invest hea ar expanded ye st la y n pa Peor ia com . St Petersburg sales and plant close to vealed that re y tl n ce re y d mining ry at war The compan cavators an ex the last centu of of ge ch n u m ra s t s giant record t decade hey spen exports of it e mac hiner y , but in recen th er d h pe ot el an h e on t, stomers over wit h on preciati eq uipmen to Russian cu a growing ap n en e io ll be th bi as s, h er $2 e ther perpow sales of two former su years. ealer between the the last five ding to its d ch n y is also ad su . pa ds ia m an ss co u br R e d to Th US an ght in ld ussia. n people bou ago, its was even bo network in R While Russia a long time ds al on Oberhelman cD g uld M on ou d co t D t an O ou ke a CE ar ol rk s Cat’ ian m ce to fo as Coca-C that the Russ rt ed a reluct an es po at ow ex st sh 1 to rs o. N to gh s enou contrac company’ e th e m co e be t. th eventually US equipmen of Russia into th. integration ently it is 10 r this year ie rl ea r market. Curr However the be em ’s larges t farm ts in m ld n or io w e at an Organiz Deere, th mpanies n co h S Jo U of nded two pl World Trade ew er, has expa ors to a sl t ak do n m e nents, and re t th po rr en m cu en m e co ip op equ could beyond th .-sourced s .S re U es gu e. on fi ad e ly tr re l ad tr ant that mak of its tota Russia that and take US in an Iow a pl st 1 percent for on li ju al il ti of m n 0 re te $7 gu po fi invested to close to use of the mor ibund e ca m be co rt y to pa er ly in , in like mach nk large tractors Russia is un der people li anot her farm on o, w gc o A . (n ia e t ss th en u rc r GSI, h the exports to R China’s 12 pe 28 million fo ownturn wit year paid $9 economy’s d st s, in part to n la e , em go th er st ra t ak d sy bu m e e th ain storag spending) gr er of m er su in n ak st co m largest fall in US t to finally inve ussian marke er mination g that panies like m co target the R g countr y’s det in e as somet hin pt ov m om pr TO is W e re th u y, the ct ab ew u e. R vi tr er e ic as th Er fr s “W its in eir ef fort GCO,” said A th r s and fo cu to s s fo or rt re do po ke al mar ting , US ex opens the Caterpillar to ident of glob rt in Reuters es t po pr re gh a ce ei vi t to s rs g y’ fi n n e compa Accordi t. percent in th developmen up about 29 d are forecast an commercial o, ag Russia were ar ye a om fr ar a ye from months this , up five-fold llion in 2012 bi 0 $1 p to to eir pg rading th decade ago. panies are u m and co y S tr n U u y Man ns in the co io at ed er op t y complicat current plan the famousl e at ti o eg n willking to untr y as em in the co political sy st e of the Arabtec to build dif ficult issu w ell as the archs ig rong of ol Europe’s tallest tower th ed d d be im y. tr n Arabtec Holding Co., the UAE’s in the cou ina biggest construction company by As long as Ch US company market value, won a $123 million disappoints, to chance g n contract from OAO Gazprom to build li il w be l il w Russia, as Europe’s tallest office tower in St. their ar m in any ot her Petersburg. Arabtec and Gazprom unit they are in m as Latin Okhta Centre will begin the first ch su ts ke mar phase of construction for a 463 the Middle d an a ic er m A metre-high (1,519 foot) . on East regi

e v o l h t i w To Russia

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Gazprom Tower.

58

DL

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Construction Machinery ME  

Construction Machinery ME