Construction Machinery ME October 2014

ISSUE 36 014 OCTOBER 2

CONCRETE REALITY

Low prices hit ready-mix firms

HITACHI’S BIG DUMPER

MENA debut for new quarry hauler

FASTER PAY-OFF

Cheaper kit in demand

SPECIAL S PECIIAL B PEC BHL HL REPOR REPORT T

BACKHOE BATTLE

The market heats up PLUS: RAW POWER

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NEWS & ANALYSIS

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HEAVY HITTERS

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SITE VISIT

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AND MUCH MORE

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Contents

54 IS S U E 3 6 2014 OCTOBER

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EDITORIAL Why an increased focus from the traditional players on the value segment should improve options for all customers.

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

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KIT SPOTTING A telescoping crawler crane in Singapore.

page 54 Concrete Reality

Ready-mix companies are feeling the pinch with high raw material costs and low project margins – but the right equipment can save you money.

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Zahid Group’s Amr Khashoggi says that the ease of doing business in Saudi Arabia has significantly improved.

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THE CASE FOR CLEANER ENGINES With ULSD in the UAE and on the horizon in the wider region, what does this mean for introduction of cleaner engines?

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HEAVY HITTERS: A NATION’S DEVELOPMENT

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SITE VISIT – PARAMOUNT PARAMOUNT BY DAMAC When you need to build four towers all at once.

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ON THE COVER: A BHL SEGMENT SPECIAL REPORT CMME looks at some of the top-performing backhoe loaders in this competitive area of the market.

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Raw power

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42 NEW RELEASE ROUND-UP What’s hot in new machinery this month? Page 51 TOP TEN We pull apart the ten top factors that make up the total cost of machine ownership. Page 54 READY TO POUR A look at the concrete pumps, mixers and batching plants that are in use in the region. Page 60 A CAT AMONG THE PIGEONS The story behind the development of Caterpillar’s new 950 GC wheel loader. Page 64 THE LAST WORD XCMG claims China’s first export of a crawler crane larger than 1000 tonnes capacity.

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FASTER, FUEL EFFICIENT

Contents

F SERIES

10% FUEL ECONOMY

Models 721F, 821F and 921F deliver 10% fuel saving,with reduced exhaust emissions

PERFORMANCE AND RELIABILITY

Four mode power control and new generation five-speed transmission result in faster cycle times and increased productivity

CASE LOADERS DRIVE PRODUCTIVITY

New generation of axles, new chassis, new Hydraulic hoses lay out, Larger buckets and special tires, designed for hostile environments, Waste & Scrap handling BioGas, Compost and Agricultural applications

Country Bahrain UAE Kuwait Oman Qatar KSA Lebanon Jordan Egypt

Dealer

Abdulla Ahmed Nass & Sons Al Shirawi Enterprises Instant Access Co International Heavy Equipment L.L.C. Nasser Bin Khaled & Sons Co Roots Group Arabia Someco The Commercial & Industrial Co (C.I.C) Unimar Egypt

Contact Number

+973 1 770 31 23 +971 4 371 85 85 +965 2 225 99 72 +968 2 459 12 99 +974 4 458 01 38 +966 2 699 66 28 +96 1 125 36 00 +96 2 550 62 60 +202 3 346 51 80

Web Page

www.nassgroup.com www.alshirawienterprises.com www.instantaccess-co.com www.ihe-oman.com www.nbks.com www.arabian-roots.com www.somecointernational.com www.cic.com.jo www.unimaregypt.com

www.casece.com

Editor’s Letter

GROUP GROUP CHAIRMAN AND FOUNDER DOMINIC DE SOUSA GROUP CEO NADEEM HOOD GROUP COO GINA O’HARA PUBLISHING DIRECTOR RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471

IT’S A QUESTION OF VALUE

W

hen I first started reporting on the construction machinery industry in the GCC markets in early 2012, Chinese equipment sellers were entering what might be called the second phase of their presence here.

While during the boom years the easiest way to sell kit may have been to promise fast delivery times, in the lean years that followed, the definition of ‘value’ for construction equipment buyers changed sharply.

Chinese manufacturers were quick to recognise the shift, and pumped investment and expertise into tailoring their machinery specifically for Middle East conditions, and boosting their spare parts inventory and local aftersales support.

Those that were effective in this haven’t looked back, and thanks to them, it can be argued that the new equipment market in the GCC is one of the most competitive in the world. It’s certainly been to the advantage of customers, at least by boosting their options.

Perhaps one of the biggest changes in the market place since that time has been the acceptance by established players – whether OEMs or dealer/distributors – that the value segment is an important area of the market and shouldn’t be neglected, something that holds true for both machinery and trucks.

With the value segment now receiving more attention from established brands, the requirement is for manufacturers to produce machines that are truly innovative as well as affordable, and in this issue we profile a number of such machines, including backhoes and wheel loaders.

With the number of projects in the pipeline, the Middle East is a growing market, and therefore a focus for many OEMs. That means buyers here are seeing more and more equipment designed and built precisely for their needs.

EDITORIAL DIRECTOR VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5713 EDITORIAL EDITOR STIAN OVERDAHL stian.overdahl@cpidubai.com DEPUTY EDITOR GAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480 SUB EDITOR AELRED DOYLE MARKETING & ADVERTISING COMMERCIAL DIRECTOR MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com +971 4 375 5497 MARKETING MANAGER LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498 DESIGN ART DIRECTOR SIMON COBON SENIOR DESIGNER ROY CRUZ JUNIOR GRAPHIC DESIGNER PERCIVAL MANALAYSAY CIRCULATION & PRODUCTION DATABASE AND CIRCULATION MANAGER RAJEESH M rajeesh.nair@cpimediagroup.com +971 4 440 9147 PRODUCTION MANAGER VIPIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713 DIGITAL DIGITAL SERVICES MANAGER TRISTAN TROY MAAGMA PUBLISHED BY

And manufacturers know that equipment designed for the value segment here is likely to prove attractive in many markets on a global level, including Africa and parts of Asia.

As a consequence of this virtuous circle of competition, the onus will again be on Chinese brands to convince customers that their machines have matured over their successive generational upgrades, and can now foot it with the best. All in all, once again it seems to be a win for machinery buyers.

On another note, it’s worth acknowledging the departure of Stephen White from the CPI construction magazines; after numerous site visits, show reports and executive interviews, he was one of the people most knowledgeable about the construction machinery industry and wider construction sector in this part of the world. We wish him all the best in his future endeavours.

Registered at IMPZ PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com PRINTED BY Printwell Printing Press LLC © Copyright 2014 CPI All rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

ISSUE 36 2 OCTOBER 2014

CONCRETE REALITY

Low prices hit ready-mix firms

HITACHI’S BIG DUMPER

MENA debut for new quarry hauler

FASTER PAY-OFF

Cheaper kit in demand

Stian Overdahl, Acting Editor, CMME

SPECIAL BHL REPORT

BACKHOE BATTLE

The market heats up PLUS: RAW POWER

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NEWS & ANALYSIS

*

HEAVY HITTERS

*

SITE VISIT

*

AND MUCH MORE

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

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CONSTRUCTION

MIDDLE EAST

October 2014

August 2014

CONSTRUCTION

MIDDLE EAST

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News Round-Up

NEWS

KONECRANES DELIVERS WORLD’S MOST POWERFUL REACH STACKER

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

Konecranes and its Danish distributor NC Nielsen have delivered a 100-tonne-reach stacker to port, the world’s most powerful reach stacker, although it is the fourth machine in this weight class delivered

by Konecranes. The 100t capacity reach stacker was delivered to Jutlandia Terminal in Esbjerg in Denmark, where it is being used to handle and transport blades and components for wind turbines.

The machine was tailored by NC Nielsen from a standard Konecranes reach stacker. It has a

POTAIN’S 5000th TOWER CRANE IN CHINA

Manitowoc’s tower crane brand, Potain, has now built more than 5,000 tower cranes at its manufacturing plant in Zhangjiagang, China. Here, six Potain tower cranes are shown at work on two 280-metre-tall bridge pylons high in the clouds above the mountains of southern China.

nine-metre wheelbase and comes equipped with a lifting hook and foldable hydraulic support rolling wheels that enable the machine to cope with the extremes of a 100t load.

Most of the industrial applications for the 100t class reach stacker are in the wind turbine industry, where one blade can weigh up to 96t.

Three similar machines have been delivered previously, including one to Beirut, Lebanon to handle 100-tonne concrete blocks in the construction of an extension to the port.

Liebherr and Wolffkran bought for Kingdom Tower Main contractor BLG turns to the tower crane brands it knows best for world’s highest tower project

K

ingdom Tower, the ongoing Jeddah-based project that will become the world’s tallest skyscraper, will be built with Liebherr and Wolffkran tower cranes, purchased through contractor Binladen Group (BLG).

The Kingdom Tower will have 170 storeys in total, and with a final height of more than one kilometre, the project places particular demands on the construction equipment used on-site.

With this in mind, cranes have been supplied by German firms Liebherr and Wolffkran, said the developer.

Climbing cranes have been designed to accompany Kingdom Tower’s growth,

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both externally and internally. In the latter, the systems will use any of the building’s 65 interior elevator shafts to make the climb.

“Now that we have completed our subterranean work, we are airborne,” said Mounib Hammoud, CEO of Jeddah Economic Company. “The unprecedented size and height of Kingdom Tower means we can only utilise the very best in equipment, material and methods. Liebherr and Wolffkran’s very impressive and innovative cranes fit this bill.”

Of the six cranes being used, the largest is the Liebherr type 357 HC-L,

which can lift up to 18 tonnes at a speed of 44 metres per minute, at heights parallel to that of the tower.

Although the cranes are attached to the body of the building, they also sit atop a support tower of only 2.4 x 2.45 metres.

Furthermore, the cranes feature heavy-lifting technology that will allow them to withstand harsh weather conditions, including the strong winds at the heights. Specially trained operators will be hired to control these cranes, with experience and certifications vital. BLG has used Wolffkran and Liebherr TCs on projects including the Jeddah airport expansion.

COMPANY INTELLIGENCE QATAR IS SET TO UNVEIL MORE THAN $200BN OF INFRASTRUCTURE PROJECTS, AND IS NOT AFFECTED BY THE ONGOING TURMOIL IN THE MIDDLE EAST, QATAR COUNCIL VICE-CHAIRMAN MOHAMED BIN AHMED BIN TAWAR AL-KUWARI HAS SAID. Al-Kuwari also stressed that Qatar needs more contractors to address the country’s growing construction industry. Al-Kuwari said Qatar’s construction sector is open to the international market, particularly companies that are willing to take part in the country’s economic developments. “The country is experiencing a variety of changes in terms of economic development, which is why our doors are open to investments. We need more contractors to be involved in Qatar in the coming years.”

Major Saudi Arabian construction firm ABDULLAH ABDUL MOHSIN AL KHODARI SONS WILL DIVERSIFY INTO SOLAR AND NUCLEAR ENERGY. Khodari’s new activities will include supplying and installing solar energy equipment and systems; it will also provide contractor services, maintenance and other operations for nuclear energy, the company said, without giving details of the size of expected business.

The government body responsible for planning the Saudi energy mix said in 2012 that THE WORLD’S TOP OIL EXPORTER PLANS TO INSTALL AROUND 41 GIGAWATTS OF SOLAR POWER OVER THE NEXT 20 YEARS AS WELL AS ABOUT 17 GW OF NUCLEAR CAPACITY. Saudi Arabia currently has no nuclear reactors.

THE WORLD ECONOMIC FORUM (WEF) HAS INCLUDED MACHINERY MANUFACTURER LIUGONG IN ITS SELECTION OF GLOBAL GROWTH COMPANIES (GGCS). LiuGong was the only one in China’s construction machinery industry on the list. GGCs are fast-growing companies with potential to become global economic leaders, characterised by track records of exceeding industry standards in revenue growth and innovative business practices. LiuGong has taken a series of actions in its globalisation strategy, including the acquisition of Polish bulldozer manufacturer Dressta, where LiuGong builds Dressta bulldozers and wheel loaders for the European markets and export to markets that include the Middle East.

TENDER UPDATES

1

THE FEDERAL AUTHORITY FOR NUCLEAR REGULATION (FANR) OF THE UNITED ARAB EMIRATES (UAE) HAS AUTHORISED THE EMIRATES NUCLEAR ENERGY CORPORATION (ENEC) TO BEGIN BUILDING TWO ADDITIONAL NUCLEAR POWER REACTORS at the Barakah site in the Western Region of Abu Dhabi. Unit 1 of the four reactors is now more than 57% complete.

2

DRAKE & SCULL HAS WON A $130 MILLION (SAR: 487) RESIDENTIAL COMPOUND PROJECT IN RIYADH, KSA, for completion in a 24-month period. Awarded by Gulf Related, a regional real estate developer, and designed in a Mediterranean resort village style, the Antara development comprises a built-up area (BUA) of 98,115 square metres, consisting of 520 homes.

40% OF SEARCHES FOR USED KIT ON MOBILE Up to 40% of searches for used equipment are carried out on mobile devices – smartphone or tablet – and that’s why Volvo CE has launched a new mobile app for locating used equipment for sale in Europe, the Middle East and Africa (the EMEA region).

The app can be used to find details of all the used equipment available, as well as the sellers’ contact details.

This will give potential buyers access to the entire stock of Volvo Used Equipment in the region, said Nick Rose, rental and remarketing director for Volvo CE in EMEA. The app also features a dealer locator search function for participating Volvo CE Used Equipment Dealers in EMEA

and a specific Volvo Approved Used search function.

“We know that more and more customers are searching for used equipment by way

of mobile devices. Up to 40% of current searches for used equipment are via mobile devices, so this app puts Volvo CE and our dealers in a prime position to meet this need in relation to used

equipment,” said Rose, who believes that the shift in the way customers search for and purchase used equipment will be “fundamental”.

“Via the app, customers will be able to contact the specific dealer holding the equipment remotely. As they will be dealing directly with the dealer, they will also potentially have access to other dealer offerings, such as finance or even warranties. Accessible in 25 languages, the Volvo Used Equipment App provides instant access to the live database of used equipment, both Volvo and non-Volvo, available through the participating Volvo dealer network in the EMEA geographies,” he said.

GIBCA TO SEND AGGREGATES VIA RAIL Etihad Rail has signed an MOU with a UAE quarry to provide for transportation of aggregates and raw materials throughout the country, once its rail service is operational.

GIBCA Crushing and Quarry Operations Ltd (GIBCA Crusher), was established in 1976, and is a supplier of the aggregates that form a base supply for concrete and asphalt production.

Under the scope of the MoU, Etihad Rail trains will transport aggregates for GIBCA Crusher from its quarry in Ras Al Khaimah to distribution terminals in Jebel Ali, ICAD Cities I and IV, Ruwais, Saqr Port and Fujairah Port.

The agreement will ensure the efficient delivery of raw materials to distribution and export terminals throughout the country, said Eng. Faris Saif Al Mazrouei, Acting CEO of Etihad Rail.

“Agreements with aggregates producers such as GIBCA Crusher are essential for the evolution of the UAE’s rail transport infrastructure, as it will form a vital part of the construction industry’s supply chain. This will facilitate a more efficient delivery of aggregates from the Northern Emirates to construction markets not only within the UAE, but also within region and abroad.

“The MoU with GIBCA Crusher reflects the support of business leaders across the UAE for the remaining stages of the Etihad Rail network, which will in

turn contribute to economic integration across the country.”

Sheikh Saqer Bin Khalid Al Qassimi, GIBCA group corporate development director, added that rail transport would enhance the quarry’s existing transport solutions.

“GIBCA Crushers was established soon after the UAE’s formation. We are proud to say that the company has thrived in a competitive business environment where committed efforts are made to grow and diversify the UAE economy. The MoU with Etihad Rail will allow GIBCA Crushers to enhance

our existing supply chain to meet evolving business needs, ultimately helping us to cater more efficiently to our key markets in the UAE and beyond.”

Upon completion, the Etihad Rail network will span approximately 1,200 kilometres across the Emirates, and in addition to aggregates will be used to transport bulk and non-bulk materials.

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News Round-Up AFGHANISTAN FAMCO (Al-Futtaim Auto & Machinery Co. LLC) + 971 4 213 5100 (UAE) famco@alfuttaim.ae AZERBAIJAN Aztexnika Ltd + 994 502 452 555 a.aslanbayov@aztexnika.az BAHRAIN A.A. Bin Hindi B.S.C (c) + 973 17 703078 ciesales@binhindi.com GEORGIA Elite Motors Ltd + 995 577 769 615 zantelidze@elitemotors.ge IRAQ Sardar Automobile and Machinery Trading Co. + 964 750 344 4701 ihsan@sardarmachinery.com KUWAIT Al-Zabin International Group Co. For Heavy Equipment + 965 2433 4721 alzabin@alzabinkuwait.com LEBANON AMTRAC (Abdelmassih Trading Company) + 961 3 425625 michel@amtrac-lb.com OMAN GENSERV (General Engineering Services Est) + 968 244 90755 sales@genserv-oman.com PAKISTAN VPL Limited + 92 42 111 875 875 uzair.shahid @panasiangroup.com QATAR Arabian Agencies Company WLL + 974 44 50 0925 araco@araco.com.qa SAUDI ARABIA FAMCO (Al-Futtaim Auto & Machinery Co. LLC) + 966 12 680 4444 famco@alfuttaim.sa SYRIA Nassib Saad Est. Trading & Import + 963 11 222 5432 i.saad@saad-syria.com TURKEY Ascendum Makina + 90 216 581 80 00 info@ascturk.com TURKMENISTAN Ez Aziya-Hyzmatdash + 993 124 37278 h.hangeldyev @aziya-hyzmatdash.com UAE FAMCO (Al-Futtaim Auto & Machinery Co. LLC) + 971 4 213 5100 famco@alfuttaim.ae UZBEKISTAN C&H International + 998 711 475 003 hojinhan88@gmail.com YEMEN Elaghil Trading Co + 967 1 207 470 elaghil@y.net.ye

maximum fuel efficiency makes for maximum productivity The Volvo L120F has been designed to extract the maximum efficiency from every drop of fuel.

Which means that it can work harder, for longer, without having to stop to refuel. So while it’s saving you money, it’s making you money. And with its high-performance Volvo V-ACT D7 turbocharged engine with air-to-air intercooler, the L120F certainly deserves closer inspection.

Contact your dealer today. Discover a new way.

volvoce.com 88

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News Round-Up

Putzmeister pumps 110m A Putzmeister BSA 1004 D concrete pump has been used to lay the foundations for a lighthouse in Oman, with concrete pumped to a height of 110 metres, with the maximum concrete pressure exceeding 100 bar.

Sennebogen has announced that it plans to launch a new telescopic crawler crane with a lift capacity of greater than 100 tonnes, in an upward expansion of its range. Its ts current product range falls in the 8t to 80t safe working load range.

BEFORE/AFTER MAGIC AT MANITOWOC DUBAI A Manitowoc crawler crane 4100W has been completely refurbished

by EnCORE, Manitowoc Crane Care’s remanufacturing service, at Manitowoc’s centre in Jebel Ali, Dubai. The 230-tonne capacity crawler had spent 21 years working at sea, building off-shore oil and gas structures and off-shore sea defences for its long-term owner, leading off-shore construction company Valentine Marine.

The challenging ocean environment naturally took its toll on the crawler, built in 1993, and though it was still in good working order, Valentine Marine asked EnCORE to give the crane a second life with a full overhaul.

“The crane was working well, but it was showing signs of corrosion due to the tough marine environment and long working hours it’s been put through for two decades,” said Somasundaran Akkappilly, workshop manager at Manitowoc. “I am delighted with the result. We’ve renewed a 200t piece of precision engineering and Valentine can look forward to another two decades of hard work on the high seas.”

Work on the 4100W’s refurb began in October 2013 and started with a complete disassembly and inspection. All major components of the upper and lower frames and the entire cab were dismantled, before being individually reconditioned, reworked or rebuilt. Following its return to the customer, it is

operating at 100% of its original load chart capability.

As part of the extensive rebuild, the crawler was completely rewired and an entirely new cab was added, which the team had to build from scratch, since 1993-model crawler crane cabs are no longer manufactured. Corrosion on the chassis was neutralised and special marine-environment paint was applied to prepare the crane for its second life at sea.

The crane left the facility in March this year, to the satisfaction of the team who worked on it. “It is very satisfying to see one of our older cranes roll out of the workshop ready to give its owner a second term of productive service,” said Akkappilly. “It’s been a painstaking process, but I am pleased with the results, and we are looking forward to tackling our next challenge.”

The crane is currently at work on an offshore oil field off the coast of Abu Dhabi. Established in 1990, Valentine Marine specialises in offshore construction in the oil and gas industry. Its work centres on the Arabian Gulf and Indian subcontinent.

Unlike Potain and the rough terran and all-terrain crane range, Manitowoc distributes and supports directly its crawler range in the Middle East, since it is a low-volume and specialist product. Their Dubai base includes an extensive supply of spare parts for crawler cranes, as well as an engineering workshop.

Sennebogen teases 100t lifter

2 MN HOURS INJURY-FREE Khalifa Port’s operator, Abu Dhabi Terminals (ADT), has achieved the rare safety milestone of recording two million man-hours without a lost time incident (LTI) in the port.

Described escribed as “big, green, and yet mysterious”, the machine will be launched to buyers and the press this autumn, from its manufacturing base in Straubing in southern Germany. ermany.

According ccording to the company, the new and largest telescopic crawler crane, with a safe working load of over 100t, will be “an extremely interesting solution

for many crane rental companies and construction companies”.

“In the fall of 2014, the machine will be impressively presented to the press and public in Straubing – look forward to information concerning its capacity data and unique selling points.”

40 YEARS OF KUWAIT AND DAIMLER Kuwait celebrated 40 years as a major shareholder of vehicle manufacturer Daimler AG, at a ceremony at the Mercedes-Benz Museum in Stuttgart, Germany. Kuwait’s sovereign wealth fund, the Kuwait Investment Authority (KIA), is currently Daimler’s single biggest shareholder, holding 6.8% of the company’s shares since the demerger of Daimler and Chrysler in 2007.

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News Round-Up

FAMCO SHOWS OFF ITS CONSTRUCTION EQUIPMENT

LIEBHERR SELLS 50th BIG LIFTER It may be the largest all-terrain crane in the world, but Liebherr has managed steady sales of its LTM-11200-9.1, recently notching up its 50th sale since the ATC was launched in 2007 at the Bauma Fair.

The fiftieth mobile crane was sent to the Japanese company Yamagata, following an inspection in July by the company’s MD at the Liebherr mobile crane factory in Ehingen, Germany.

The fifty cranes delivered to customers so far have

Equipment giant FAMCO (AlFuttaim Auto & Machinery Company) has held a Construction Equipment Seminar (CES) to show off new developments in its key construction equipment lines, with more than 100 guests attending their large site in Dubai Investment Park (DIP).

With Volvo Construction Equipment, Merlo and Doosan Portable Power all on show, the event welcomed customers, engineers, project managers and equipment procurement managers.

A delegation from Volvo CE in Sweden and their Middle East regional office, as well as FAMCO Construction Division team members and other principals, offered information about construction equipment concepts, as well as features and benefits of the machines.

Ahmad Halwani, FAMCO’s regional general manager – construction equipment, said that the event was a showcase of the benefits of their construction equipment brands, and allowed customers to speak directly to product specialists and principals.

“This is the second such seminar we have arranged this year, and both have been quite successful.

“We also hope to showcase our state-of-the-art facility at DIP, so customers can know the investment we have done in supporting their equipment through aftersales, workshops and maintenance,” noted Halwani.

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September 2011 October 2014

The FAMCO site at DIP is one of the largest in the region, with extensive service capabilities.

A large number of machines were on display, including from Volvo CE a skid steer loader, and a range of crawler excavators and wheel loaders. Also shown was the A35F articulated hauler, with Volvo artic haulers put to good use on key job sites across Saudi and the UAE. The A35F is powered by a DH13-B engine, generating gross power of 329kW, with a load capacity of 33.5 tonnes and 20.5m³ heaped capacity on the standard body (or 21.4 m³ with overhung tailgate). Other models displayed at FAMCO’s site were the Merlo P40.17 panoramic telehandler and several Doosan air compressors.

In other news for the equipment mega-seller, it announced that it has acquired a 91.6% holding in Kenya’s automotive distributor CMC Holdings Ltd, but is buying up the rest of the free stock available in the market. It is one of the biggest cross-border investment deals in Kenya this year.

The CMC acquisition will be a catalyst for their entire strategy across East Africa and is not limited to Kenya, said FAMCO. CMC holds the distribution rights for key auto brands – Ford, Volkswagen, Mazda, Suzuki, CNH, MAN, Eicher and UD – and the showrooms and service facilities have additional capacity, meaning that investments in extra facilities are not required in order to deliver its growth objectives.

been sent all over the world. For example, seven LTM 11200 9.1 cranes are now owned

by German companies, there are five in Mexico, and four are in use in Brazil. The new crane for Yamagata is heading for Japan, which will make a total of five machines on the market there.

There are also at least two in the Middle East, including one with rental company Al Faris.

The 1,200-tonne capacity class ATC has a boom that extends to more than 100

metres, and with the jib extension its maximum hoisting height is 188m, and its max radius is 136m. Real-world lifts include 129.5 tonnes to a max 21 metre radius (erection of a portal crane), and a load of 9.5 tonnes to a hoist height of 154 metres at a 31 metre radius (erection of a radio tower).

For transportation, the crane’s boom is transported separately on a low bed trailer, with a number of possible load configurations for the main crane vehicle.

KOMATSU WANTS QUICKER SPARE PARTS Komatsu has opened a new $32.2 million spare parts centre in Oyama in Japan, as the manufacturer looks to establish a new global operation model for its spare parts offering. The Oyama centre has a total floor space of 22,202 m², and is part of the larger Oyama factory, which has over 3,000 staff.

The opening of the centre also featured a new global operation centre, and a new organisation to comprehensively control the sales, production and inventory of construction equipment spare parts.

Komatsu said it is making group-wide efforts to shorten lead-time for spare parts from plants to customers, “by eliminating the intermediary process

for direct linkage between customers and plants, and to dynamically reduce parts inventories worldwide. In addition to these efforts, Komatsu is working to steadily introduce this new parts operation model to other parts distribution centres.”

At present, Komatsu operates a total of 18 main parts distribution centres worldwide, with 15 in overseas markets and three in Japan.

Komatsu is also working to introduce its new parts operation model to other parts distribution centres, with current plans calling for the new model to be introduced in parts distribution centres in Australia, North America and Japan by the end of the 2015 financial year.

Many Solutions One Value Provider

Algeria S.A.R.L. SOCOPE www.socope.net +213-43273939 Tunis Société Commerciale de Matériels (COMAT) www.comat.tn +216-74468710 Azerbaijan Grand Motors LLC www.grandmotors.az +994-125647494

Bahrain ZAYANI MOTORS W.L.L. www.zmotors.com +973-17703703 Qatar Al Arabia Heavy Equipment Co. L.L.C. (Member of Al Fardan Group) www.alarabia.com.qa +974-44971090 Kuwait Bahrah Trading Company W.L.L. www.bahrahtrading.com +965-1802008

Oman General Engineering Services Est. (Genserv) (Member of Juma Al-Majid group) www.genserv-oman.com +968-24490755 United Arab Emirates General Navigation And Commerce Company (GENAVCO) L.L.C (Member of Juma Al-Majid group) www.genavco.com +971-43961000

Saudi Arabia -Arabian Bugshan Group (Earthmoving Machinery) www.abugshangroup.com +966-14931018 -Yusuf Bin Ahmed Kanoo Co., Ltd. (Concrete Machinery) www.kanoocom.com +966-22632959 Iraq Al Ittihadia General Trading Co. ( Member of Sardar Group) www.sardargroup.com +964-662569888

Shantui Construction Machinery FZE

Add: P.O. Box: 262590, RA07BB04, Liu 15, Roundabout 7, Jebel Ali Free Zone, Dubai, U.A.E. Tel: +971-4-8870032 Fax: +971-4-8870091 Mobile: +971-50-4584899 E-mail: cy@shantui.com

Visit us at www.shantui.com

September 2011 October 2014

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

11 11

News Analysis

Machinery for uncertain times Construction market fluctuations means some buyers prefer cheaper machines and plant

W Low project margins, slow release of payments and rising costs are hampering contractors in some sectors of construction in the GCC.

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hile markets in the GCC have mainly recovered from the GFC downturn, there are still many areas where it remains problematic for contractors.

Competition for contracts means that clients are able to beat down prices, and profit margins are slim. Prices of raw material are high, and in some markets – such as Qatar – project speeds and payments can be slow. Factor in the political uncertainty that characterises some of the major markets further afield, and there’s plenty of reasons why contractors aren’t yet comfortable placing too many bets on the long-term health of the industry.

Of course there are some exceptions – successful companies abound in all markets, and by any indication there’s a solid pipeline of works to be completed in KSA, Dubai and Abu Dhabi – but the general rule is that many companies are risk-averse.

And when it comes to the impact on purchasing machinery, the influence of market uncertainty can push buyers towards either rentals, or equipment with a lower up-front cost, especially in the SME sector where smaller contractors may be struggling to get established. From a seller point of view, it’s all about convincing customers that your machines are the cheapest to own and operate, but in the case of the premium segment, low ownership

and operating costs only appear when a machine is used efficiently and productively across a number of years and projects (assuming it isn’t sold with high residual value at the end of a specific project or time frame). It may take three to five years to see a profitable return on a premium machine, or even longer in the case of batching plants that are intended to operate for longer than a decade. And when business is uncertain or payments aren’t regular, it’s understandable that contractors may look for machines that can be amortised faster.

But while this area of the market has traditionally been the preserve of a certain group of value brands, typically Chinese brands, it’s now receiving greater attention from established players in the field. Last month Caterpillar announced a new machine family, the GC, with its first GC machine for the Middle East, the 950 GC wheel loader, now on sale here (see ‘Featured Machine’, page 60). There’s already two GC excavator models on sale in China, but the developers of the 950 GC say there’s likely to be further expansion of the model family, as they react to the market demands.

Frank Stadelmann, a global product specialist for medium wheel loaders at Caterpillar, says that there’s been a recognisable shift in the value drivers in developing markets, with customers who are more risk-adverse, as well as newer customers who are looking to pay off their machinery quicker.

There’s also a recognised segment of customers who want a support machine, where a fully-specced

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News Analysis

LESS LONG-TERM THINKING

perfomance model may seem over-engineered for the required application.

“It’s just a matter of analysing the market and seeing the shift. We will not stand still,” says Stadelmann, indicating that Caterpillar are ready to launch further machines into the value segment where they believe that the market demands warrant it. Suggestions included a new wheel loader in a different payload class, or a machine such as a compactor, though Stadelmann wasn’t prepared to confirm anything specific.

Last year equipment giant FAMCO announced the creation of a subsidiary, Pacific Machinery, with a stable of brands catering to the value segment of the market. This includes the

earthmoving manufacturer SDLG, owned by Volvo, Eicher Trucks and Buses (also owned by Volvo), and Montabert’s Blue Line.

Speaking at the launch, managing director Paul Floyd said that the equipment seller was reaching out to customers and applications where demand differed from FAMCO’s product line up of “premium vehicles and machines with market leading technology”.

“The launch of this new business really creates a clear distinction in the way we want to reach out to the market; to different types of customers and applications,” said Floyd.

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Choosing the right machine for a customer is not just about capabilities and performance, but how quickly the machine can pay for itself and amortise the cost.

“Pacific Machinery will be about simple technology products, low-cost products but nevertheless reliable products. There is certainly a segment of the market that this is reaching out to. Through Pacific Machinery we aim to offer a real value option, particularly to very priceconscious customers.”

Where FAMCO has an advantage of new entrants into the market is in its existing distribution network and infrastructure – both the physical dealerships, as well as back-office systems and train staff.

New machinery sellers in the Middle East encounter the problem of ‘Greenfield expansion’, having to invest heavily in a spare parts hub and in dealer training, if they are to provide effective aftersales support to their products (a route that the major Chinese construction equipment manufacturers have taken).

Floyd underlined that it was the intent with Pacific Machinery to provide parts and service support for the machines and vehicles they sell at a level above the market norms in the value segment.

“We want to exceed expectations. They won’t be the only low-cost products in the market but we believe they will be the best low-cost products in the market.”

Examples of premium manufacturers tailoring products to meet the demands of the value segment aren’t limited to earthmoving equipment. Bauer Machinery offers a range of trenching machines less sophisticated than their normal lines, designed to compete with Chinese competitors in the domestic Chinese market, and most producers have machinery specifically designed to be attractive in the Chinese market.

In the area of concrete batching plants, Liebherr’s senior regional manager for concrete equipment in the Middle East, Oliver Rduch, says that current market conditions are dissuading customers from making long-term investments and decisions.

“In Europe, you have the stability of the market, that allows you to make such a long term investment. Unfortunately the situation in the Middle East has become a little more erratic – concrete prices come down, and then boom, before coming down again – all of a sudden all projects stop.

“Because of the ups and downs of the market in recent years, we have seen new customers entering the market opting for very cheap products, just to be there and to cater and to have for one particular project, and once that’s done they normally scrap this cheap product. After two-three years the unit is typically worn out, but they take that into consideration. They don’t know if they will still be in the market, or if the market will have changed.”

Rduch says that Liebherr Group made a deliberate decision not to contest the value area of the market, in any of its business divisions.

“At Liebherr, we had this discussion a long time ago, and we decided that we have to keep our products aligned with our brand, and our brand beams out best quality possible that we can produce – a long-wearing, modern product that is at the top of its scale. That’s why we’re not competing at the lower end of the market.”

Nonetheless, at its Chinese factories, Liebherr produces batching plants with locally-sourced steel, for the domestic market. It’s a sales manager’s worst nightmare to see a key account shifting to a different brand because they want to buy a cheaper product, and Rduch says that when they are faced with this dilemma, they’re willing to make the Chinese-built product available, though he notes that any differences are marginal.

“I’d say those plants are still of a very high quality, and the savings that they’re making are actually minimal.”

He says that in the batching plant industry, it’s only when the market turns sour that the cheaper products have a chance. “It all goes in cycles.

When the international economic stability is back, and you have a period of growth ahead of you that you can see and calculate, then people would be silly to buy a cheaper product, because in the longterm the cheapest you can buy is a Liebherr plant.

It’s one you can use for the longest period.”

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Kit Spotting

SENNEBOGEN 683 R-HD TELESCOPIC CRAWLER A Where: On a tricky piling job in Singapore s many contractors in the Middle East can tell you, the piling phase of a contract is often one of the most challenging, as ground conditions are encountered for the first time. This Sennebogen 683 R-HD telescopic crawler crane was spotted working on underground construction on a cramped worksite in Singapore. The contractor, Guan Chuan Engineering Construction, is a specialist in the installation of sheet pile walls, including in hard rock or areas that are sensitive to vibration.

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is a simultaneous drilling out of the substrate via an auger drill and driving in of the pile walls. This allows even the most difficult ground conditions to be overcome, and the method is quiet and free of vibration, compared to conventional vibrators.

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Heavy Hitters

A COUNTRY’S TRANSFORMATION From the vantage point of a high-ranking official of one of the leading infrastructure developers in Saudi Arabia, Zahid Group’s Amr Khashoggi speaks about the development and road map of the Kingdom’s education, employment and energy sectors.

S

everal minutes into our discussion about economic diversification, foreign investment in Saudi Arabia and creating employment opportunities for Saudi youth, Amr Khashoggi, VP Group Affairs, Zahid Group, pauses and says: “Remember, Saudi Arabia is a young country. I am a young 62 years old, and I have lived through all the kings of Saudi Arabia, from the founder King Abdulaziz and his sons to King Abdullah.”

Khashoggi has witnessed first-hand the Kingdom’s multi-pronged yet “gradual” transformation into an economic superpower on the global stage. He cites as an example the volume of information available today for foreign investors looking to invest in the Kingdom.

He says: “In the early days, you would have problems finding accurate data about demographics, utility prices and state of infrastructure. Today, with a few online clicks on several government websites, including that of the Saudi Arabian General Investment Authority (SAGIA), all the information is there for one and all. Furthermore, the Saudi population is very much wired and that drives greater efficiency and new opportunities to accelerate economic activity.”

Technology and e-government have allowed Saudi Arabia’s government to standardise the quality of services across the country. “Dealing with the Ministry of Labour used to cost us in waste of precious time, increased levels of frustration and stress, and

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lack of effective processing of our tasks. Today, 85% of the work is done online without having to visit the ministry,” he says.

And Saudi businesses are using technology in a big way to recruit employees, develop business opportunities and launch new products and services.

Within Zahid, all the paperwork and workflow is done electronically, which has improved overall business efficiency.

The adoption of technology, whether in government or business, is largely driven by youth, and Saudi Arabia is no different. “Fifty percent of our population is under the age of 17,” says Khashoggi.

“So a lot of the transformation is being driven by our youngsters.”

However, a population mix with a high proportion of young people brings its own challenges.“Being unsettled and unsatisfied is part of being young,” says Khashoggi. “Many of our young feel that a government job is more secure and less demanding.

But we need to change this mindset. Through public

private partnerships (PPP), we are trying to develop programmes to attract youth to private employment and also provide them with a sense of security.”

However, he cautions that companies cannot expect that all Saudis will be trained and competent in the same set of skills. “At the Zahid Learning Centres, we offer soft skills as well as three-year apprentice programmes for blue-collar workers, with guaranteed employment upon graduation,” says Khashoggi.

To promote entrepreneurship, the group is providing asset financing to young Saudis who cannot get credit from banks. The Contractors of the Future programme, which was earlier called the Small and Micro Enterprise Programme (SMEP), aims to train and help individuals and small enterprises who want to establish themselves as contractors within the Kingdom but lack the capital to do so. In the field of construction equipment, sold through Zahid Tractor, this means that SME contractors can purchase certain items of

“TECHNOLOGY AND E-GOVERNMENT HAVE

ALLOWED SAUDI ARABIA’S GOVERNMENT TO STANDARDISE AND IMPROVE THE QUALITY OF SERVICES ACROSS THE COUNTRY"

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equipment with reduced finance rates – the kind of machines that will help them get a start in the construction industry.

Many well-established private sector employees volunteer to be mentors, working with the young people on business plans to help them turn ideas into commercial ventures. “SMEs are going to be the answer to any unemployment problem, as 80% of employment is usually provided by SMEs and not by large corporations like Zahid,” explains Khashoggi.

He also believes that it is important to encourage employers to hire persons with disability. As part of its Corporate Social Responsibility (CSR), Zahid is a founder of a non-profit called Qaderoon Business Disability Network.

“We aim to catalyse employers to recruit, train, retain and include job seekers with disabilities as equal effective members of the workforce, through disability-confident work environments and advocating favourable government policy. We offer employers appropriate guidance and best practices,” says Khashoggi. “Employees with disability have proven to be highly productive and loyal. Hiring them will also contribute to the employment of the Saudi population.”

More importantly, the job market needs to be more open and transparent. “Employers should allow job seekers to learn about career opportunities, and job seekers should be visible and demonstrate their abilities, knowledge and willingness to work,” he notes.

But the question is whether the education system in the Kingdom is geared up sufficiently to supply the job market. In the past, the skills that were developed through the education system didn’t map with the job requirements, which meant that the country found itself with a deficiency of engineers, doctors, nurses and technocrats.

“But through the reforms of the education system that are underway, the scenario is changing. The reforms are addressing the weak links by raising the quality of teachers and curricula that reflect the crucial competencies needed to find a career in the Kingdom or anywhere else,” he says.

The Zahid VP continues: “Our educational system needs to teach students to think and innovate.

Teachers need to be trained and updated with the

Amr Khashoggi says that foreign investors in Saudi Arabia now have far better access to information about the country, while online services from Ministries has made doing business far more time-effective.

instructional best practice employed in the best schools in the world. The private sector can help by having internships, mentoring and training, and retraining, which is something that we are doing in our company.”

Zahid is a partner in Global Gypsum Company, 3G, which has initiated a programme wherein the company goes to industrial colleges across the Kingdom and interviews students in their final year to try and identify their weak areas. The Company

SWEDISH QUALITY BY SAUDI HANDS While Zahid Group is a diverse conglomerate with many interests, it is Zahid Tractor that is best known to readers of CMME. The wide array of brands is a good representation of how ambitious the company is, and includes Volvo Trucks, Renault Trucks, Caterpillar, Bauer, JLG, Rammer and Terex. The company is also dominant in the equipment rental sector in KSA. In 2006, it launched its Saudi-built Volvo Trucks, a process that supplies highskilled work for Saudis at the factory in Jeddah. A second factory, for Volvo Trucks and Renault Trucks, is now also under construction, north of

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Jeddah at King Abdullah Economic City (KAEC). Fahd Al-Rasheed, managing director and CEO of KAEC, commenting on the announcement that Zahid would build a 225,000 square metre facility, 50,000 sqm of which is dedicated to “the new trucks assembly plant, which will be constructed by Zahid Group, is considered a major milestone in the growth of King Abdullah Economic City.” With Zahid Tractor supplying vehicles to a number of major contractors, including MASCO, the company is likely to be responsible for adding to Saudi Arabia’s burgeoning automotive industry.

then works with the colleges to address those areas, complemented by its own learning centres.

Khashoggi believes that offering Saudi students scholarships to study abroad is the key to introducing the best educational culture in the Kingdom. By sending Saudis abroad to study, they will be exposed to different ways of doing things and interact with professional people with whom they can forge business relationships.

But the fact remains that there is a mismatch in terms of matching the graduates with jobs back home.

He says: “What I am trying to work on now is to catalyse our private sector to use their special relationships with leading companies in the US and the UK to create internship opportunities for Saudi scholarship

students. This will help them hit the ground running when they come back to their country.”

The empowerment and employment of women has taken a turn for the better under the reforms initiated by King Abdullah. Saudi women now have greater access to education, scholarships and employment. The e-government initiative has also improved the situation for Saudi businesswomen.

Earlier, they had to have an agent to carry out their business, but now they can do it themselves online, from renewing social insurance of employees to applying for municipal licences.

In the context of education, Khashoggi believes that women are being taught with a greater diversity of skills. Being a member of the Advisory Board of the all-female Effat University, he observes that female students are great learners and hold tremendous potential to be taught scientific and engineering skills. And making up half of society means Saudi women should be given opportunities for employment.

“We have been doubling the number of women working in Zahid over the past six years,” he says.

“They work in administration, finance, IT and HR, but we are expanding opportunities for them to work in technical and engineering positions. We made history last summer at our group company Altaaqa Global, where we had four electrical engineering students from Effat University interning the whole summer in the field, and they

“WE SAUDIS SHOULD NEVER STOP AIMING FOR OUR NATION TO BE GREATER THAN IT WAS AND IT IS.” were impressive. We hope they will join us full-time when they graduate.”

As Saudi Arabia charts its future, Khashoggi is certain that the Kingdom’s youth will play an increasingly important role in determining the course. “As a young country, we have accomplished a lot in the past 30-40 years, but we still have a lot of ground to cover,” says Khashoggi. “At the same time, we believe in improving incrementally instead of big jumps. We want to make ourselves more efficient and provide more job opportunities. The only way we can do that is by improving our education system and improving the channels for training young people.”

He is also hopeful that Saudi Arabia’s push to transition from an oil exporter to an energy producer will not only create more job opportunities but also centres of knowledge and R&D facilities.

“The development of alternative and renewable energy industry will also lead to the improvement of scientific education in the Kingdom,” he notes.

“We already have private sector companies funding

research work in research universities like KAUST, whereby they are able to use many of the patents and turn them into business opportunities. A country’s economic vibrancy is measured by the level of patent applications filed, which is increasing in our universities.”

Ultimately, Khashoggi believes that, “despite its tender age”, Saudi Arabia has reached an enviable level of stability. “In the past 40 years, we have accomplished a lot, owing to the visionary governance of the leaders of Saudi Arabia. In order to keep pace with the trends of today’s world, however, we must recognise that more ground needs to be covered and that more work needs to be done.

We are making inroads into adopting educational, professional and environmental best practices, but we should not rest on our laurels. We Saudis should never stop aiming for our nation to be greater than it was and it is. But, aggressive as we are, there is still merit in growing incrementally, which is gradually but surely.”

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Feature

THE CASE FOR

CLEANER ENGINES With a timeline in place for the introduction of ultra-low-sulphur diesel in the GCC markets, does this mean that the cleaner burning engines will eventually be introduced here?

O

ver the past 10 years, construction machinery manufacturers and heavy vehicle builders have been engaged in a huge programme to build cleaner burning engines – a development that has largely bypassed the Middle East, since the cleaner engines can’t be used here because of the poor fuel quality. Nevertheless, there has been some impact, including on the importation of second-hand machines, and separately, some manufacturers may not offer some variants as new models are built with the new engines.

Diesel fuel in most markets in the Middle East is considered dirty, becase it contains high amounts of sulphur. Additional contaminants can be present if it isn’t handled properly – such as water or dirt – as is the case in any market. When legislation was introduced in Europe and elsewhere requiring lower engine emissions, new fuel with far lower levels of sulphur was also introduced. This reduced the amount of sulphur dioxide (SO2) emitted, caused by the presence of sulphur in the fuel, and over time it allowed the manufacturers to develop highly efficient and sensitive catalysts to be used in the exhaust aftertreatment, reducing the emission of carcinogenic gases. In the most recent generation of engines, the cost of the material in the catalyst alone can be several thousand dollars.

Kevan Browne, a spokesman for Cummins Engines, says running one of these cleaner engines on diesel fuel with higher than 15 parts per million (ppm) sulphur would quickly damage the

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HRCs: Highly Regulated Countries where there are stringent regulations on engine emissions. Includes North America, Europe, Japan, Australia and a handful of other markets. Requires that ultralow-sulphur diesel (ULSD) be sold.

LRCs: Lesser Regulated Countries, with no, or less stringent, regulations on engine emissions (typically Tier 2 or Tier III, or Euro 3). Includes the Middle East and Africa.

aftertreatment catalyst, which would then need replacing. “This could happen even after using just several tanks of fuel with high sulphur levels by the equipment or vehicle. The aftertreatment failure could result in subsequent serious damage to the engine,” Browne told CMME. This is why some second-hand equipment can’t be imported from an HRC market to the Middle East without modifying the engine. Engines and aftertreatment for vehicles were first introduced in the 2006/7 timeframe, and for off-highway equipment from 2011 onwards, notes Browne.

“OEMs and engine manufacturers have taken significant efforts to avoid these vehicles and machines being exported to markets such as Africa and the Middle East where the sulphur issue could occur. In fact, there have been only a very few instances where this happened and engines were damaged – but of course, this cannot be avoided 100%. For operators and dealers in these areas, the message is: do not import very low emissions vehicles or machines from North America or the EU with aftertreatment unless you have access to ULSD. There are areas where the availability of ULSD makes importation possible, such

And it was also announced that a solution for the Tier 4 Final engines (the latest, and potentially ‘final’ emission phase) is not far off.

Other manufacturers, such as JCB and Volvo, have also announced that their engines are able to be modified for export to high sulphur regions. Cummins has a high sulphur tolerance kit. One thing for buyers to keep in mind is that the engine modification may have to be carried out by their local dealer, since the modification includes a decertification process and may not be able to be legally carried out prior to export.

As Browne notes, the kit is applied by a Cummins dealer or distributor in the receiving country, as the US Environmental Protection Agency (EPA) does not allow the modification to be undertaken in the US prior to shipment. Nevertheless, with all the major brands well supported in the Middle East, potential buyers should feel comfortable buying newer machines at auction in the HRCs. Buying second-hand is one thing, but what about buying new? With the announcement that the UAE is phasing in diesel fuel to at least a Euro 5 standard (10 parts per million sulphur), and with a timeline for adoption of ULSD in the other GCC markets (see side

“IT IS ILLEGAL FOR ENGINES TO BE MODIFIED

PRIOR TO EXPORT, AND [DE-TIERING] WILL NEED TO BE CARRIED OUT BY THE LOCAL DEALER.”

as Singapore, Australia and major cities in China.”

Nevertheless, engine manufacturers have busied themselves finding a technical solution to what is, after all, a technical problem. For engine manufacturers who supply to many OEMs – such as Cummins, Caterpillar, Perkins, Volvo and MTU – the pressure came from machinery builders to enable the engines to be exported to LRC markets, important for their residual values and therefore for product purchasing cycles.

In November last year, Caterpillar announced that, following extensive field tests, its Tier 4 Interim engines from 156 kW to 895 kW (7 to 32 litres) would not require any modification for what it calls “equipment migration” to take place. For engines smaller than 156 kW, the manufacturer announced that it would offer authorised modification processes removing aftertreatment from machine and commercial engines to allow them to operate in LRCs.

box), it’s worth questioning whether we will see the new engines being sold once ULSD is adopted across the GCC. In the HRC markets, there was no voluntary introduction of the cleaner engines – all the emission standards were legislated for. It’s possible we’ll see similar moves in the GCC, once all the states have unified their fuel standards. However, in the current phase, with only the UAE operating on USLD, it’s unlikely to be economically feasible for importers to bring in the new engined machines for what is a relatively small market.

With the newest engines in Europe and the US, there was a significant jump in cost for buyers, on the order of several thousands of dollars. This caused buyups of machines and trucks in the months leading up to the new standard. However, fleet owners and rental companies have also found that manufacturer claims about better fuel economy are not puffery – the engines are using considerably less fuel, and will

TIMELINE 2014

In July, the UAE introduced Euro 5 diesel throughout ENOC and ADNOC networks, following Federal Cabinet Decree

2016

ULSD may be available in Saudi Arabia under its clean fuels roadmap. Oman and Qatar are expected to complete refinery upgrades, producing ULSD for their domestic markets

2017-18

Saudi Arabia likely to fully implement ULSD. Bahrain likely to follow suit due to links between the two markets

2018-19

Kuwait refinery upgrade expected to be complete, allowing introduction of ULSD

2019

By early 2019 all markets in the GCC are expected to have introduced ULSD

Source: Information supplied to CMME by Hart Energy Research & Consulting

Mechanical injection While modern electronic diesel injection systems are far more fuel-efficient than their mechanical forebears, they’re also more easily damaged and can be harder to repair. It’s for this reason that older machines with mechanical fuel injection systems continue to be repaired and can still fetch good money at auction, despite their advanced years. But in a recent case of ‘Back to the Future’, this year Caterpillar unveiled a new excavator, the 320D L Series 2, built with mechanical injection. The 22.4-tonne machine, designed with breaker applications in Saudi Arabia in mind, uses a low pressure (200 BAR) fuel injection system, rather than the ordinary electronic fuel inject

system with its higher pressure (1200 BAR) making it more susceptible to damage from dirty fuel. The result is that fewer fuel filters are used on the 320D2-L, and with a higher service interval for those remaining; and while the engine will be less fuel-efficient than the theoretical engine using electronic injection, in this case Caterpillar was able to make the 320D2-L more fuel-efficient than its preceding model through the use of innovative hydraulics, and by running the engine at 100 rpms lower. According to the manufacturer, this solution is cost-effective on a smaller machine, but the same cost advantage isn’t there for large tonnage excavators.

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Feature

The new engines used in HRC markets are more efficient, and produce far less emissions harmful to human health, but it comes at a significant cost.

“MANUFACTURERS

WOULD RISK PRICING THEMSELVES OUT OF THE MARKETS IN THE MIDDLE EAST.”

pay for themselves in markets where fuel is a major cost. Yet performing similar calculations in the GCC markets – especially Saudi Arabia – won’t yield the same result, due to a lower price of diesel here.

Looking to the benefits of ULSD in the region, it may be possible that manufacturers will start introducing more efficient engines, with the latest high pressure turbo injection systems, but leave off the additional expensive exhaust treatment systems required in Europe for Euro 6, effectively building to a Euro 4 or 5 standard. With many machines and vehicles built to order, it wouldn’t be a hard task.

And in the passenger vehicle markets it’s likely that importers will relish the chance to bring in the highperforming diesel engines that have been developed for passenger markets, but which can’t be run on high sulphur fuel.

Manufacturers would see improved return on investment (ROI) for their research costs into new engines and aftertreatment tech if they could sell greater volumes globally, but if they did voluntary introduction here they’d risk pricing themselves out of the markets, assuming other manufacturers continued selling machines with the older and cheaper engines. The GCC is one of the most competitive markets in the world, with machinery available from a wide range of countries.

And sticking an extra few thousand dollars on a machine’s cost isn’t going to be doing your salesmen any favours, especially in the compact equipment segments. In a segment where the total price is higher – think of an all-terrain crane – buyers may swallow an extra cost to get the machine they want; but in segments where the competition is greater – such as backhoe loaders or skid steers – any extra cost would influence a purchasing decision.

With these considerations in mind, it’s fair to assume that unless the hand of the industry is forced by legislation, we won’t see a consistent outcome, and that individual brands will decide which engines to import based on their own interests, including machine performance. This means that some aspects of the new engine tech will certainly make its way here.

Here at CMME we’re interested primarily in machine performance, and how it can boost a company’s profitability; policy makers may take a different view. The recent moves by the UAE federal government to clean up diesel fuel suggests that improving air quality is certainly a focus. But, the timeline prediction for adoption of ULSD suggests that it will take some time before it is ubiquitous in the GCC, a precondition for importing the cleaner burning engines.

UAE to police diesel quality A joint governmental panel in the UAE has announced plans for an inspection campaign to ensure the nationwide use of Green Diesel, following a federal decree. ENOC is collaborating with the panel, which consists of various governmental bodies such as the Dubai Municipality, the Emirates Authority for Standardisation & Metrology (ESMA), the Dubai Department of Economic Development (DED) and the Dubai Civil Defence (DCD).

The panel recently agreed on a roadmap and timelines to promote the use of ULSD. The move is in line with the UAE government’s decision to mandate the use of green fuel across the country.

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“For the first time in the region, the UAE has set a clear guideline on the standards to be followed in using diesel, and we are working with the authorities to implement a mechanism to regulate the diesel market to limit irregularities and illegal activities,” Saeed Khoory, chief executive officer of ENOC, said.

Diesel distributors, fleet owners and users of commercial vehicles which

use diesel will be informed about the new practice by the panel, which will also urge the relevant parties to obtain compliance certificates from ESMA, in collaboration with the DED. The DED and the ESMA will jointly prepare the technical specifications to be followed by the industry. Fuel tanks, equipment and fuel tankers will be inspected by the DCD to ensure they meet all new security and safety

requirements, and violators will be fined for non-compliance with the new standards.

The Dubai Municipality will also inspect diesel storage sites to ensure all permits regarding the installation and use of fuel tanks have been received by fuel providers. Poor quality diesel is typically “sourced from illegal vendors”, said Khoory, and he warned against purchasing such products to protect the economy and environment.

“The use of low-standard diesel, often sourced from illegal vendors, not only impacts the economy negatively but also leads to environmental degradation and health and safety hazards,” he added.

TerexÂŽ Trucks off-highway articulated and rigid trucks T rex Te e Trucks ex k has been designing and manufacturing off-highway trucks ks k ks since 1950, delive v ring to customers ve r all ov rs ove ver the globe.

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Site Visit

At the 2014 Construction Machinery Show we sold 70 units and 100 more units are under discussion. We have delivered a positive message to our existing clients, our competitors, and grabbed new clients.

I think gaining such an appreciation from all members in the construction equipment sector is a great honour and will encourage us to work very hard to keep the same level of style, image, and standards.”

This year the CM Show team delivered an exhibition Saudi deserves. For years, we have seen a vision in this Show and this year the vision was achieved. We wanted quality traffic and we saw equipment and company owners; and we were able to offer some promotions to entice sales.

I saw an increase in our sales immediately.

Our principles, Doosan and Everdigm, really enjoyed themselves. We anticipate the upcoming years to be even better.”

The Construction Machinery Show was perfect from an awareness point of view.

We explained Roots Group Arabia’s capability of covering the construction industry with all of its needs and requirements. The attendance was good especially during weekdays and towards the end of the exhibition. See you next year.”

Al-Qahtani & Sons Khaled El Shatoury, Managing Director

Saudi Diesel Equipment Ahmed Alkooheji, Marketing Manager

Roots Group Arabia Abdulaziz Felemban, Brand Manager

Co-located with

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Raz Islam Publishing Director raz.islam@cpimediagroup.com Mobile: +971 50 451 8213

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Michael Stansfield Commercial Director michael.stansfield@cpimediagroup.com Mobile: +971 55 150 3849

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Site Visit

BLOCKBUSTER BUILDING Constructing four towers within 33 months, in tandem, would often be a task beyond most contractors.

For TAV and Damac, it’s just another day in the office

C

omprising of four 250m towers built around a common podium, the Damac Towers by Paramount will include more than 1,800 units of one, two and three bedroom serviced hotel rooms and residences spread across 70 storeys. Built in the Burj Area of Downtown Dubai, the four towers are being constructed together in a punishing 33 month schedule. According to Damac, the expected completion date is in mid-June 2016. With construction only starting in September 2013, this presents a fairly formidable task for TAV Construction, the main contractor, as Nasser Fakhoury, assistant vice president for Projects, explains.

“So far, work is progressing based on the agreed schedule. There have been changes to the design and additional work awarded to the contractor.

The expected completion date might get delayed by about two months as the contractor is experiencing difficulties with a shortage of material suppliers like concrete and steel, which will pose a slight difficulty with progress,” he says during a visit to the project site.

“Also, there’s the issue of labour. Qualified labour is not easy to find these days. These are the challenges we’re facing. Not just us, but most of the contractors here are facing these issues. Apart from these problems, everything else is moving smoothly and we’re working in accordance with the programme.”

In January of 2014, the construction team announced that it had completed the casting of the raft foundation for the project, which would allow work on the four towers to begin. More than 19,000 cubic metres of concrete and in excess of 2.2 metric tonnes of reinforced bar were used to construct the raft, Fakhoury says.

Since the completion of the raft, work on the towers has progressed fairly quickly, with the podium having reached the fifth level and work on the towers is well underway. While the design and construction of the towers on an individual basis may be fairly straight forward, the biggest complications come with the requirement that all four towers must be built together so as to meet the schedule.

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The four towers are being built concurrently to deal with logistical, material handling, site access to the site and storage challenges.

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Site Visit

“THEY DECIDED THAT DESPITE HAVING A CONCRETE BATCHING PLANT NEXT TO THE PROJECT, THEY WOULD ALSO HAVE A CONCRETE SUPPLIER AS A BACKUP.” In effect, Ugur Anliatamer of TAV Construction, and the team from Damac is having to manage four sites as one. On its own, this would present quite a major challenge to most contractors, but what compounds their problems is that the site is situated between two of Dubai’s busiest road arteries – Al Khail Road and Al Awer Road.

“At the concept stage of this project, it was decided that all four towers would simultaneously move forwards. We’re trying to separate the podium areas and the towers themselves will move upwards to give us time to finish on time,” Anliatamer, Dubai branch office manager for TAV, explains.

“The decision (to build all four towers together) is mainly because of the location of the project,” adds Fakhoury. “We have challenges that we’re dealing with and we’re trying to cope with the challenges we’ve had so far.”

Both men agree that in order for the project to succeed and not get bogged down more than it already has, the need for cooperation between all stakeholders is absolutely crucial.

“It’s a joint effort between the engineer, the client and the contractor. The contractor, from his side, is working on reinforcing his management style to provide sufficient teams for each tower, so that they act independently from the others. It’s not like you complete one tower and then move to another. The four of them have to go at the same time. Our plan is to cast four slabs in six days,” Fakhoury asserts.

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In the same vein, Sameer Abukhalil, senior manager for Projects at Damac, points out that when it comes to logistics, a serious effort is being made by all stakeholders to ensure that work progresses as smoothly as possible onsite.

“We have here, day-to -day planning. As well as two week planning ahead, we also have six week planning.

We have a live document which is updated every two weeks with the coming six months. This is just so we know when materials are coming on site and how they’re to be handled. This is so that when anything comes on site, there is no problem and it goes to the designated place without any issues.”

TURKEY’S TOP CONTRACTOR The Dubai branch of Turkey’s TAV Construction has been awarded a $272.3 million contract to build a luxury hotel complex near the Burj Khalifa.

The deal between the private UAE developer, DAMAC Properties, and TAV – Tepe Afken Investment Construction and Operations – has

described as the largest single contract ever awarded by the Dubai-based property developer.

Situated in the Burj area, the ‘DAMAC Towers by Paramount’ will consist of four towers, each standing at over 250m and are expected to feature 540 hotel rooms and over 1,400 service apartments.

Fakhoury adds that Damac Properties has been quick to get on board with this philosophy, with the developer having appointed a sub-consultant to handle BIM services and to keep an archive of work done on the site. He says that he hopes it will be used as a document management tool and then later on as planning management tool.

“BIM was introduced after the beginning of the project and it significantly impacted our project planning. The amount of information that we are taking as an output from BIM is huge and severe in its effect. The big thing is detecting those issues early and resolving them early. It gives us the privilege of moving fast without impacting the engineering or the work itself,” he explains.

Due to the constrained nature of the project, both in terms of physical space and time, this advanced planning and adaptability gave TAV Construction and Damac the opportunity to plan the project out properly, so as to minimise wastage.

“BIM is not only a tool for engineering and for design coordination. It is also a tool that you can use to calculate the exact quantities of materials – like concrete, like steel, whatever you want to use. You can get exact, precise details. This will of course, give us an advantage during the procurement, logistic and planning stages,” Anliatamer says.

The team is so conscious about wasting time, they decided that despite having a concrete batching plant next to the project, they would also have a concrete supplier as a backup. With 200,000 cubic metres of concrete calculated to be used on the project, and steel at about 30,000 tonnes, it makes sense for these precautions to be taken.

Post tensioned systems are calculated to be at 440,000 square metres of area, while there is set to be 600,000 square metres of formwork.

“The other component is steel reinforcement. We are working with two backups from two companies.

So far the challenge point in this market is deliveries,

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especially in such a fast track type of job. Deliveries should be precise and our logistics teams have to be organised,” Fakhoury asserts.

“We organise and structure various disciplines – procurement, logistics and site deliveries. So first of all, with the procurement team, you’re investigating the markets as per the programme.

The whole procurement is finalised based on that programme. And then afterwards, it goes to logistics and it’s a requirement of the site.

“Logistics is planning how to receive the materials and where it’s going to be stored. That’s another challenge, especially in Dubai. Everything is being occupied and that’s why you have to manage your storage efficiently,” he adds.

With 1,600 staff onsite at present, the need for planning ahead will only increase once peak construction time approaches.

By then, the team expects 4,000 workers to be onsite, including those from subcontractors who will be providing their own team and staff. All considered, by the time the project is in full swing, there will be 10

or more subcontractors operating onsite. In addition to this, there will be 200 to 250 professional staff that will set up shop from TAV, along with 40 plus senior staff from consultants KEO and 20 plus staff from Damac Properties itself.

With all these people involved in the project, health and safety management and onsite safety procedures are issues that TAV and Damac are not prepared to take lightly. As such, each tower has its own health and safety engineers, who are fully trained and certified, ABC says.

“No fatalities have been recorded, with no major accidents,” he asserts.

“Damac Properties have hired a safety team from the consultants just to make sure that all safety regulations are there, and to make sure that there are no safety hazards on this project.

“We also have our own safety team who come weekly to the site to make sure that things are progressing properly. It’s a team effort here (with regards to safety) and this is on all our projects,” Fakhoury notes.

For information contact: Raz Islam Publishing Director raz.islam@cpimediagroup.com Mobile: +971 50 451 8213 Michael Stansfield Commercial Director michael.stansfield@cpimediagroup.com Mobile: +971 55 150 3849

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Feature

As road projects fuel the construction industry in the region, the appetite for backhoes is surging. CMME’s Stian Overdahl looks at the offerings from some of the brands contesting the market

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S

The Case Construction 695T is a significant model in the region, with operator comfort at the fore. Its strong performance is powered by a CNH-built engine.

ome markets can be characterised as backhoe loader markets, while others make do without. Spend a few days in India and you’ll see backhoes on every second street corner, and quickly understand why JCB built the world’s largest backhoe factory in the world in Ballabhgarh, near New Delhi. In cities in Saudi Arabia, backhoes are a common sight on the roads, travelling between construction sites; spend rush hour in Riyadh, and you’ll even be able to see a few backhoes in the traffic jam on Olaya Street, wedged in between the taxis, Ford Crown Victorias and SUVs. Typically, the multi-applicability of backhoes is sought after in countries – especially developing economies – where there’s significant amounts of infrastructure work taking place. And a backhoe is a solid investment for a contractor, since the machine will be useful whatever the next contract is. The backhoe loader (BHL) is one of the most utilised machines in the Middle East, and – similar to the skid steer loader – it’s probably safe to claim that new uses and applications for the machine are found nearly every day, given the variety of roles it has to perform. With the machine a big seller, it’s a crowded segment, with most of the big brands offering backhoe loaders.

First off the block is JCB, the inventor of the backhoe. As they won’t hesitate to remind you, 50% of all backhoes sold globally are JCB. The manufacturer has five main models in the market, from the 1CX up to the supersize 5CX, but the 3CX is by far the biggest volume seller around the region, says Steve Ryder, JCB regional manager for the Middle East. Speaking to the favoured value proposition of the two largest markets – Saudi and UAE – Ryder says that in KSA the more basic variant, with canopy, two-wheel drive (wd) or 4wd, front shovel and standard backhoe is the bigger seller, whereas in the UAE customers opt for the fuller spec 3CX, with cab and AC, 4wd, the six-in-one front shovel with flip over forks and JCB’s Extradig extending dipper.

The larger 4CX comes with extra capabilities that could prompt buyers to consider upsizing, not least full-sized tyres on the front, which improve its ability to traverse rough terrain or soft sand.

“The 4CX goes one step further by offering sites more capability, with four equal-size tyres and fourwheel steering to get into and work in some of the toughest areas,” explains Ryder. “With the higher ground clearance and larger front shovel, the 4CX

“WITH JCB DESIGNING, TESTING AND MANUFACTURING THE ENTIRE DRIVE TRAIN IT MEANS WE ARE IN COMPLETE CONTROL OF QUALITY.” is capable of fast truck loading and the increased backhoe specifications make it a match for localised trenching work – a true two-in-one machine.”

Perhaps the biggest competition in the backhoe segment is between JCB and Caterpillar. While globally JCB is the top dog in the backhoe market, Caterpillar has entrenched market position in the GCC through the strength of its dealers. Both have a popular and respected product, with Caterpillar most recently updating its line of backhoe models to the F-Series, from the 7578 kg operating weight 422F up to the 9743kg 444F. With five models in the F-Series, each can be ordered with one of two engine options. The smallest 422F is offered with a naturally aspirated diesel engine that puts out 56.5 kW gross power, or a direct injection turbo (DIT) engine outputting 68.5kW

On the cover: forming the basis for the cover art on this month’s CMME is the Caterpillar 422F, the smallest of its backhoes in the new F-Series.

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Feature

Efficiency for the win Beyond the basic hydraulic operations, purchasing a machine with efficiencies tailored to your work style can shave a major cost from your fuel bill over the year, as well as improve your machine’s performance and ROI. If you’re roading your backhoes significant distances between projects, look at the option for a torque lock-up converter, which some companies offer on machines with an automatic transmission.

Offered on Caterpillar’s new F-Series, the lockup torque converter helps to maintain a high road speed, lowering travel time and reducing fuel consumption by an average of 14%, saving a fleet owner time and money.

A feature which JCB offers, and which is popular in Europe but not yet in demand in the Middle East, is Torquelock, used in Europe for roading in hilly conditions. These

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higher specification units are fitted with optional powershift transmissions, and engaging Torquelock (between gears 5 and 6) automatically prevents the unit unnecessarily dropping down from 6th to 5th on slight inclines, which causes loss of speed and increases fuel consumption in the lower gear.

JCB also claims its 3CX ECO is the “world’s most efficient backhoe loader”, with fuel savings of up to 16% against competitors. This is achieved by the use of the fuel-efficient JCB Dieselmax T2 engine, together with a three-pump hydraulic system that delivers more productivity at lower engine speeds (down to 1200 rpm), including ECODIG mode for trenching, ECOLOAD mode for front loading shovel work or ECOROAD mode for when the machine is being roaded from site to site.

gross, with air conditioning only available with the DIT engine. In the larger models in the range, the DIT engine option becomes the standard, with a C4.4 turbocharged after-cooled engine as the option. In terms of the model series update, all four machines benefit from the main improvements, including an updated high ambient temperature cooling pack.

The system utilises separate coolers for the engine coolant, transmission and hydraulic oils, says Adrian Forrester, backhoe loader marketing.

“The F-Series backhoe loader is unique in that all machines are supplied with a hinged cooling pack that enables the operator, without any tool, to clean out any debris that may become trapped between the transmission, hydraulic oil cooler and the radiator. This helps to ensure that down time is kept to a minimum, reducing servicing cost.”

Both the 432F and 444F are fitted with hydraulic servo operated controls as standard, which as a loweffort control system enables the operator to have full control over the hydraulic services, increasing productivity over long periods of operation.

Most of the established players in the market have a lengthy association with BHLs, and Terex Construction is no different, with a lineage that stretches back to some of the first backhoes built

by Massey-Harris-Ferguson in 1953. The brand has three models in the market: the TLB8400, the TLB880 and the newly introduced TLB990. The TLB840 was launched in 2011, and has been well received. The smallest in the range, the TLB840 has a smaller boom and dipper, and so requires less hydraulic power and is equipped with a smaller engine, keeping overall costs low. The first order worldwide for the

Left: Volvo CE’s BL71B demonstrates its high dump height. Top: JCB’s smallest backhoe, the 1CX in Oman.

Bottom: LiuGong’s 777A loader launched in 2012.

new TLB990 came from the Terex dealer for Oman, Al Fairuz, with ten units to be delivered in the new year, Oman being the most popular market in the GCC for the four-wheel steer model.

Upgraded features on the new generation models include a servo power synchro (SPS) transmission, replacing the powershift transmission. Richard Ghent, backhoe product specialist with Terex, says that with the powershift transmission, which has manual or automatic modes, the shifting is done through hydraulic clutch packs, resulting in a lot of frictional losses. The new SPS has the same advantages of auto and manual modes in terms of shifting, but it’s done through hydraulic selector forks, rather than clutch packs. This results in a 9% reduction in frictional responses, making the machine’s driving performance more lively. There is also the option of Rexroth-Bosche closed centre, load sensing control valves, or Walvoil’s open centre valves, built in India. The open centre valves require more effort from operators to work the levers. With the closed centre, much less effort is required by the operator, which can improve overall machine performance, especially since operators are more responsive even at the end of a long work shift.

Case Construction Equipment has a number of models in the market, including the newly launched down-specced 570T, but its most important machines for the Middle East markets are the 580T and 695T. Bassem Al-Bermawy,

field marketing manager – Middle East, CNH, says that while the backhoe is in demand in all construction segments, they see particular demand coming from smaller and medium contractors.

“However, as the rental segment is expected to grow across the region, there will be considerable demand from the rental companies, which are by definition fleet owners.”

Explaining the launch of the 570T in July, AlBermawy says that the machine is able to play an “effective and main role” on construction sites, especially road projects, due to its high productivity, economical fuel consumption and durability, as well as its being equipped with ergonomic features which contribute to an improved working environment for the operator. “Customers looking for a simple, reliable and cost-effective tool will find that this machine matches their needs to the maximum.”

Key features of the Case T-Series range include an overall lower height, achieved by the use of overlapping cylinders, so that the backhoe needs a lower height clearance. The BHLs are built with CNH/Fiat tier 3 engines, with Case CE claiming a 10% power advantage over competitors. Design strengths include robust design of the backhoe boom and dipperstick, which contributes heavily to productivity and the safety of operators.

Volvo Construction Equipment’s backhoe range encompasses the BL61B and BL71B, and the brand is seeing increased market position in the

IN CITIES IN SAUDI ARABIA, BACKHOES ARE A COMMON SIGHT ON THE ROADS, TRAVELLING BETWEEN CONSTRUCTION SITES; SPEND RUSH HOUR IN RIYADH, AND YOU’LL EVEN BE ABLE TO SEE A FEW BACKHOES IN THE TRAFFIC JAM ON OLAYA STREET, WEDGED IN BETWEEN THE TAXIS, FORD CROWN VICTORIAS AND SUVS.

Gulf, especially where it is propelled forward by FAMCO, in Saudi and the UAE. Ahmad Halwani, general manager of the construction equipment division at FAMCO, recently gave a presentation to customers on the updated BL61B model, and cited the manufacturer’s reputation for operator comfort, leading to enhanced safety and productivity.

“The BL61B’s pilot joysticks and front mechanical controls enable easy control and manipulation of the bucket and other front attachments. The smooth steering along with a small turning radius provides excellent maneuverability on the jobsite.”

On the site, high breakout forces are delivered through a very durable loader linkage, and powerful hydraulics with precisely tuned controls enable efficient and productive loading, said Halwani. “The machine’s excavator performance excels from a harmony of linkage design, flow-sharing hydraulics and ergonomic controls. An excavator-style boom employs an arched, ridged design that is narrow and tall, which allows excellent trench visibility and for working around buried obstructions.” Other features include large stabiliser feet for improved stability on soft ground. For those looking for a larger machine, the BL71B offers 16% greater lift capacity and 26% greater breakout force than its smaller sibling.

The value segment of the backhoe market comprises a number of different manufacturers.

LiuGong launched a new backhoe in the Middle East in 2012, the 777A, which can be bought with either

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Feature

Terex Construction has completed the update of its BHL range with the launch of the TLB990 last year. Below, the 8,150kg TLB890, which has a 5.69m dig depth.

Same-sized wheels for better traction At the larger end of the backhoe range, models are normally equipped with equal-size front and rear tyres. Caterpillar’s Adrian Forrester, backhoe loader marketing manager, explains the benefit: “One of the main advantages of any backhoe loader with four equal-size wheels is that the ground pressure of the machine is reduced.

This increases the floatation and mobility of the machine over soft ground conditions, enabling the machine to gain access to areas that otherwise would be more difficult. High traction generated from the larger front wheel also helps to improve loader performance,

increasing the machine’s performance when using the loader on duties such as site stripping or truck loading.”

However, regardless of the size of the wheels, a diff lock also improves machine performance on soft ground.

“Maintaining traction is important if the machine is working in soft ground conditions, and all Cat backhoe loaders are fitted with a differential lock as standard,” he says.

“If traction is lost at any time, the operator can easily engage the differential lock so that the drive is equally distributed to both wheels, enabling the machine to be driven onto firmer ground.”

a Perkins (74.5kW) or Deutz Weichai (70kW) engine.

With a standard stick digging depth of 4,440mm, which rises to 5,610mm with the E-Stick extended, the machine offers good breakout force and lifting capacity, as well as a return to dig system and a larger radiator for the Middle East. Customers also benefit from LiuGong’s well-developed aftermarket support model, with a spare parts distribution centre in Dubai and strong training and inventory stocks with its dealers.

With so many brands already in the market, is there space for another? Gul Nalcaci, international sales and marketing manager at Cukurova, believes

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so, and the Turkish construction machinery manufacturer is busy re-establishing its dealer network in the Gulf. The brand is currently active in KSA and Oman, and a new dealer is soon to be announced in Qatar.

On offer are four backhoe models, from those with only basic specifications to more sophisticated machines. The brand has been importing its 880, 883 and 888 models into the Middle East, specced for the climate and powered by a Perkins engine with engine power of 94 HP to 100 HP and a fuel consumption average of 8.0 litres/hour.

Cukurova has seen signficant growth in exports in recent years, including in Latin America, but Nalcaci says that the Middle East and Africa have become more critical as export markets since the slowdown in 2008/9.

“We aim to increase our presence with our bigger product line and expansion in sales network. KSA is the strongest performer in ME and offers significant growth opportunities, followed by Oman, Qatar and UAE. We devoted more to develop our strategy, with the aim of making Cukurova a well-known brand and strengthening our position throughout the ME region as well,” says Nalcaci.

Meanwhile, at the smaller end of the model

The large JCB 4CX, a popular model in the region, but its sales figures are dwarfed by sales of the 3CX, nearly the industry standard in the BHL segment in the Gulf.

spectrum, machines are in demand from specialised companies, as they are easily transportable. Ryder says that JCB’s 1CX is very popular with utility companies for repair and maintenance work, as well as with landscaping contractors, where the large range of special attachments available – both for the loader end and the backhoe end – can add considerable efficiency to a job site if correctly applied. The OEM has also recently launched a tracked version, the 1CXT, for improved traction and ‘go anywhere’ capability.

Manufacturers who design and build the full driveline in-house will claim an advantage, and Ryder says their production processes are to the advantage of their customers. “With JCB designing, testing and manufacturing the complete drivetrain – axles, transmission and engine – for our main backhoe product lines, it means we are in complete control of quality and can ensure a perfect match of components that enables us to deliver the key demands of our customers – reliability, ease of use, productivity and aftersales support.”

DELIVERING HIGH PERFORMANCE, SIMPLY AND RELIABLY.

THE NEW CAT® 320D2 L DELIVERS RELIABILITY AND COST-EFFECTIVE PERFORMANCE TO GET THE JOB DONE ON TIME AND ON BUDGET. Today, you have to deliver more while boosting your bottom line. That means equipment with the demonstrated reliability the region’s working conditions demand. Durability to take on the toughest terrain—that’s what we’re built to deliver.

• New hammer return filter: Demolition and excavation are tough, dirty work, so the Cat 320D2 L protects your hydraulic system with a separate hammer return filter.

• Simpler, lower-cost maintenance: A proven and reliable mechanical engine makes it easier to service your equipment in the field, reducing repair costs and downtime.

• Fewer filters and longer change intervals: Save money twice, with just two filters and an increase in time between filter changes to 500 operating hours.

• High productivity with low wear and fuel use: More efficient pumps and fewer rpm providing the same hydraulic power deliver lower fuel consumption and longer machine life.

www.cat.com/320D2L-za-english © 2014 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, BUILT FOR IT, their respective logos, “Caterpillar Yellow,” the “Power Edge” trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

+96522259555 -6060 rafiq.mikhail@kharafinational.com UAE&OMAN SANY UAE

Product Focus

Raw power EVERYTHING YOU NEED TO KNOW. page 46

HIGH ACCESS SS

Genie makes first deliveries into the region of its SX-180.

page 51

page 42

DUMPER DEBUT

Hitachi CM quarry hauler gets its first MENA showing.

CONSIDER THE COSTS

Construction Machinery ME looks at 10 ways to break down a machine’s true cost.

page 60 NEW LOADER IN TOWN The Caterpillar 950 GC is a new wheel loader launched into the value segment.

page 54 page 64 THE LAST WORD

XCMG claims the first export of a Chinese crawler crane above 1000 tonnes, to Indonesia.

CONCRETE TECH

Machines and plant saving ready-mix companies money.

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Raw Power

MENA DEBUT FOR HITACHI DUMPER WHY GET IT? A DURABLE HAULER CAPABLE OF PUTTING IN THE LONG HOURS

T

his month Hitachi Construction Machinery Middle East is showing off its new 65 tonne class dumper, the EH1100-5, at the MENA Mining Show (held in Dubai from 21-22 October). Designed for hauling in major quarries and mines, the EH1100-5 was launched globally in April this year.

Buyers can choose between the Cummins QSK23 engine and the MTU 12V Series 2000. Both put out gross power of 567 kW. An Allison automatic transmission, the H6620A has improved shift quality, with less shifting when empty, and upgraded components for longer operation life before rebuild.

An onboard payload weighing system provides data to the transmissions to optimise gear changes.

The truck also has a speed limit feature that automatically restricts the top speed to a customerdetermined limit. This feature automatically applies the retarder to control the set speed limit if the limit is exceeded while travelling downhill.

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For braking control, Hitachi has redesigned the rear brakes for the new model iteration, and the rr wet disc brake assemblies now include an integral Wet Disc parking brake, while an expanded brake surface area has increased service braking and retarder horsepower. Meanwhile, the dumper’s active traction control system has been refined to better control wheel spin in wet and unboundground conditions, resulting in improved haul cycle times and increased production.

The EH1100-5 is built with a robotically welded fully fabricated box section frame. To prevent wear, the payload box is layered with an 18 mm floor plate and 8 mm side plates made of 400 BHN hightensile steel, providing high resistance to wear and impact. A low loading height and large target area allow easy, quick loading by a variety of loading tools, and it is naturally mated to the large Hitachi excavators – the ZX870LCH-5 and EX1200-6 (BH and LD models).

For daily service checks, a number of steering and brake system valves and test ports have been relocated from the mid-frame of the truck to the service deck, for easier service and troubleshooting access. The steering filter is now outside the frame, allowing service personnel the same ground level service access as is offered with the hoist filter, and two high capacity 12-volt batteries have been moved to the front bumper for ground level access.

EH1100-5 SPECIFICATIONS: • Nominal payload: 63.5 tonnes • Body capacity (SAE heaped 2:1): 41.5 m³ • Net weight: 45,450 kg • Gross operating weight: 108,950 kg • Engine 1: Cummins QSK23 • Engine 2: MTU 12V Series 2000 • Loading height: 3,962 mm

Al-Qahtani Vehicle & Machinery Co. Tariq Al-Qahtani & Brothers

MLC650 CLEARS LOAD TEST WHY GET IT? VPN MEANS FASTER SET UP TIME AND LESS COUNTERWEIGHT NEEDED Manitowoc’s new large crawler crane, the MLC650, has cleared its load test, indicating that it should soon be ready for launch into the international market. The crane lifted 650 tonnes of test weights, making the crane’s advertised capacity official.

“The successful completion of the max loading tests is a positive sign that the rest of the structural testing will go smoothly,” said Dustin Soerens, marketing manager for lattice cranes at Manitowoc. “Typically, if any major design changes would be required, they’re found during the max load test. We can now rest assured that we’re well on our way to releasing this innovative crane to the global market.”

With an 104 m maximum main boom length and a luffing jib that can be added to reach a maximum combination of 157 m, the crawler is expected to be a versatile lifter. Further adding to its operational capabilities is Manitowoc’s variable position counterweight technology (VPC), which allows faster crane set-up and reduced counterweight. The optional VPC-MAX attachments also increase the capacity, boom and jib combination lengths while utilising all of the standard VPC components.

“We performed a max load test, a max moment test and a variety of lifts utilising different positions of the VPC, and they all were completed flawlessly,” Soerens said. “A large group of engineers witnessed the test lift and were very pleased with how the crane performed under load.”

NEW COMPACTION SENSOR WHY GET IT? OVERCOMPACTING COSTS TIME AND MONEY, AS WELL AS DAMAGING GROUND CONDITIONS Atlas Copco now offers a compaction sensor on its LG500 reversible plate, used for compacting medium to deep layers of granular soils. The indicator advises machine operators when compaction is completed, helping to reduce machine wear and over-compaction. The complexity of different soil types can make quality compaction a challenge: too little compaction and the soil may settle, causing structure failure, while over-compaction can also cause some soils to “crack” under increased pressure.

MLC650 SPECIFICATIONS: • Lift capacity: 650 tonnes • Lattice boom length: 104 metres • Jib extension: 53 metres • Combined reach: 157 metres • Line Pull Speed - 217.1 kN - 14874.2 mmin • Counterweight type: Variable Position Counterweight (VPC)

The LG500 has a high speed, balanced design and hydraulic control system which contributes to precise handling on the roughest of surfaces or for spot compaction. To improve performance, a sensor on the LG500 measures the vibration

patterns in the plate and shows how well the soil is compacted beneath the surface. The compaction indicator is then mounted at the centre of the handle, and the system communicates via a clear system of indicator lights. The three lights – yellow, green and red – signal the different stages of compaction. When the red light flashes, the particular soil type has reached maximum compaction and it is time to stop.

LG500 SPECIFICATIONS: • Operating mass: 505 kg • Centrifugal force: 60 kN • Plate width: 750 mm • Engine: Hatz, producing 8.2kW • Amplitude: 2.1 mm • Frequency: 60 Hz

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Raw Power

NEW GENIE SX-180’S 20 STOREY BOOM WHY GET IT? EASY TRANSPORTATION COUPLED WITH EXCELLENT HEIGHT Genie has begun deliveries of its new SX-180 super boom aerial work platform, with buyers including major rental houses around the world and in Dubai and Abu Dhabi. The SX-180 is Genie’s largest self-propelled boom, with a working height of 56.69 m and a platform height of 54.86 m (or 180 feet, hence the nomenclature).

With a working envelope ideal for the most extreme access jobs, its maximum working height is the equivalent of nearly 20 floors, while its 3.05 metre rotating jib positions workers and gear at the job face. A newly designed X-chassis extends and retracts to provide both stability on the job and a narrow profile for transport.

“It’s a combination of market-leading benefits that make this particular telescopic boom lift model a better alternative to truck-mounted booms, cranes and other boom lift units,” said Carlo Forini, director of business development and product management, Terex Aerial Platforms for EMEAR. “Customers are expecting the SX-180 boom lift to open doors to new business opportunities with high rental rates for fast return on investment.”

Stowed dimensions are 3.05 m in height, 2.5 m in width and 12.98 m in length, for a total machine weight of 24,948 kg. As a result, it can go from one job to the next without the need for over-width or over-height permits, which enables rental companies to make manoeuvres in town during the day instead of organising transfers at night.

Its boom telescopes from ground level to full height in slightly less than five minutes, and is driveenabled at full height to save operator time when making adjustments, for increased productivity.

According to the company, orders for further units are currently in preparation for shipment

WHY GET THEM? SMALL 1-2 TONNE MACHINES PROVE USEFUL ON JOBSITES FOR CRAMPED WORK AND UTILITIES

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SX-180 SPECIFICATIONS: • Working height: 56.69 metres • Platform height: 54.86 metres (180 feet) • Horizontal Reach: 24.38 m • Lift capacity: 340 kg • Engine: Deutz TD2.9 L4, generating 55 kW • Weight: 24,948 kg • Fuel tank capacity: 189 litres

access, with a large door opening the control console rising completely out of the way when the operator is taking their seat.

There is also a new control panel that ensures all parameters can be checked quickly and easily in a single viewing, including standard readouts such as the fuel gauge and RPM meter but also auto engine shut-down; auto glow plugs countdown; auto cab lights switch-off and audible alarm (in case of malfunction).

Other features across all three models are expandable undercarriage, which when fully retracted allows the excavator to go through narrow spaces; and, when fully expanded, provides stability.

NEW MINI-EXCAVATORS FROM BOBCAT

Bobcat has launched three new compact excavators in the 1-2-tonne range, the E17, E19 and E20, claiming class-leading breakout forces. All the new models are towable on trailers for up to 2000 kg, and transportability is also enhanced by new tiedown points.

Bobcat has brought in a new hydraulic system, for fast cycle times combined with smooth control.

There is also boom and arm cylinder cushioning, unique in this class of excavator.

Looking to the E20, the 2-tonne model is a Zero Housing Swing (ZHS) excavator, which means that despite featuring a full-sized cab, it still enhances Zero Tail Swing (ZTS) functionality by further protecting the front upper structure corners turning within the swing circle. The ZHS configuration in the E20 excavator therefore provides 320° of free

to customers across Europe, the Middle East, Africa and Russia (EMEAR).

rotation when working close to structures.

The ZHS machine has high stability compared even with conventional machines on the market.

Performance features include high dumping height to make loading trucks an easy task, while the reach at ground level greatly reduces the need to reposition the machines when digging.

The new cabs have been designed to maximise operator comfort, enabling them to work longer. The cab has large windows and narrow pillars to for good all-around visibility, while the operator’s seat is easy

E20 (LONG ARM) SPECIFICATIONS: • Operating weight w. long dipper stick: 2,034 kg • Engine: Kubota D722, with 9.9 kW at 2500 rpm • Undercarriage width (retracted/expanded): 980/1360 mm • Maximum digging depth: 2565 mm • Maximum dump height: 2693 mm • Maximum travel speed: 4.0 km/h

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Raw Power

CHICAGO PNEUMATIC EXPANDS GENSET RANGE

Maintenance is cared for, with the entire unit designed for easy access to common service points including the fuel tank and coolant drain, as well as the coolant filling point. A cleaning hatch and fuel tank draining point make it easy to clean dust, dirt and other fuel contaminants out of the fuel tank to avoid costly engine damage. A fuel filter with a water separator is available as an option.

Chicago Pneumatic’s range of generators now covers a rated net output of 15 kVA to 250 kVA prime power, suitable for a wide range of applications.

WHY GET IT? TRANSPORT, SERVICEABILITY AND STRENGTH HAVE ALL BE DESIGNED IN Chicago Pneumatic has expanded its genset range with a new range of 50 Hz and 60 Hz stationary generators. Designated for the international markets, the new generators are designed for excellent durability and incorporate user-friendly features that make them easy for contractors to operate and maintain on work sites.

Key features include a galvanised, powdercoated canopy that resists corrosion, and a rugged base frame and thicker canopy design add impact resistance. A centrally reinforced structure allows the unit to be lifted from a single lifting point for easy transportation on the jobsite.

Operation is made easy with the analogue ampmeter, voltmeter, fuel gauge and backlit LCD control panel providing information at a glance. These advanced, proven controls are easy for new operators to understand and use – which helps ensure operator safety while also protecting the machine.

CPDG 60 (50 HZ MODEL) SPECIFICATIONS: • Prime Power kVA (kW): 60 (48) • Standby Power kVA (KW): 66 (52.8) • Engine: Perkins 1103A-33TG2 • Fuel tank capacity: 250L • Weight: 1,114 kg • Height: 1,530 mm • Length: 2,260 mm

LIEBHERR RR DEBUTS R MASS 80t SUPER EXCAVATOR R WHY GET IT? STRONG AND VERSATILE EXCAVATOR TO DOMINATE YOUR QUARRY UARRY Liebherr showed off its new R 970 SME crawler new R 970 SME crawler excavator at the Steinexpo 2014 show in Germany.

Steinexpo 2014 show in Germany. excavator replaces the Super The 80 tonne class excavator replaces the Super Mass Excavation variant of R 964 C, and is available of R 964 C, and is available bucket and as a front shovel. both as a backhoe bucket and as a front shovel.

With an operating weight of almost 80 tonnes, weight of almost 80 tonnes, the shovel excavator R 970 SME lies between the 970 SME lies between the excavators R 966 and R 976. standard crawler excavators R 966 and R 976. returns break-out forces of up to The R 970 SME returns break-out forces of up to penetration forces of up to 500 kN. 370 kN and penetration forces of up to 500 kN. undercarriage elements from the larger By using undercarriage elements from the larger increased ballast weight, the R 976, and with the increased ballast weight, the increased stability and can be new machine has increased stability and can be sizes of up to 5.00 m³. The operated with bucket sizes of up to 5.00 m³. The with a Liebherr 8-cylinder machine is equipped with a Liebherr 8-cylinder generates 330 kW of power.

V-engine that generates 330 kW of power. at Steinexpo 2014 was The display machine at Steinexpo 2014 was wear-protected 4.5 m³ bottomconfigured with a wear-protected 4.5 m³ bottomwith the new Liebherr Z-type dump bucket equipped with the new Liebherr Z-type features self-sharpening teeth to tooth system, which features self-sharpening teeth to penetration over a long period of time. offer the best penetration over a long period of time. safety measures have A number of new safety measures have new R 970 SME, in been adopted by the new R 970 SME, in standard rear view camera. addition to the standard rear view camera. the machine is equipped For use in quarries, the machine is equipped guard (FOPS and FGPS), with stone impact guard (FOPS and FGPS), piston rod guard for the cylinders and rock protection for the lubrication pipes and swing gear. In this way, the machine is also adapted optimally for wrecking ball operation.

The R 970 SME also features a newly designed driver’s cab and offers the machine operator a spacious workplace with ergonomic layout of the switches and control elements, as well as a driver seat with air suspension

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that comes as standard. The cab has impactthat comes as standard. The cab has impactresistant glass in the windscreen and skylight, which offers a much safer environment in which to work during quarrying.

It also offers good visibility, and with the shovel excavator configuration is well suited for direct excavation; by deploying the machine right in front of the wall, the driver has an optimal overview of the material in front of him/her, which can be sorted out immediately after excavation if required.

R 970 SME SPECIFICATIONS: • Operating weight: 76,700 - 78,600 kg • Engine output: 330 kW/449 HP • Backhoe bucket capacity: 4.00 - 5.00 m³ • Shovel capacity: 4.00 - 5.00 m³ • Engine: Liebherr 8-cylinder V-engine • Break-out force: 370 kN • Penetration force: 500kN

Al-Qahtani Vehicle & Machinery Co. Tariq Al-Qahtani & Brothers

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Ten Tips

RNS A OSTS MAJOR FACTOR IN WHETHERSIITDERTUTH OF C G N E PROFILE I G A S IS A LD CON MAN SEE

PROFIT OR

ST SHOU H CAN GES ITS CO RCHASERS A MISMATC OR NESS MANA DUSTRY, PU IRED FOR. U IN Y EQ S, DAMAGE R ER ST HOW A BUSI E O IN ’R C H C G EY A IN TH M C E N VI .

R IO TH SE IN AT . IN HIGHER JECT GO G E APPLIC GOES BUST DUCTIVTY, P THE PRO ES, AND TH O EE R IN K P H C TO ST A L M LO TA L GH A REN INDIVIDUA HER THROU ACHINE OR OON, WHET F A NEW M O ST O C E COSTS BALL R TH ATERIALS, O LOSS OF M

EASE OF MAINTENANCE Everyone knows that daily maintenance checks are essential to a machine’s health, but the easier a manufacturer makes it to carry out daily checks, such as bunching inspection and greasing points, the more likely that they will actually get done.

These checks will prolong your machine’s health and prevent any nasty unexpected breakdowns.

UP-FRONT COST The price tag on a machine can be one of the biggest influencers of machine purchasing, but this figure can often disguise the true cost of owning a machine over several years. While you can negotiate down on the up-front cost, other costs, such as servicing, performance and even the availability of spare parts, are fixed to the quality of the machine and the dealer and manufacturer support – all of which can’t be negotiated on once the machine is bought. Consider the full range of ways that a machine will cost you money over its working life, and you get a clearer picture of its real price.

Top 10 factors in a DEALER SUPPORT Having effective dealer support is one of the keystones of having profitable machinery. Whether it’s spare parts on hand, oil sampling or the availability of service technicians to attend promptly to your job sites, strong dealer support can make a world of difference. Do some research into other buyers’ experiences when buying from a seller for the first time.

SPARE PARTS AVAILABILITY Nobody wants to sit with a broken-down machine, waiting for a replacement part to be trucked in from Timbuktu. As a general rule, the larger and better established brands and dealerships have a more extensive supply of spare parts, and faster logistics channels.

machine’s price

The actual price tag is only one factor in the real cost of owning a machine

UP-TIME If you have a fleet of 10 machines, and each is out of service three days per month, then that’s 30 days of machine down-time per month – equivalent to a whole extra machine you have to purchase for your fleet to operate at full capacity. Up-time is one measure of how much work your machine can get done on a project, and whether you’ll have to splurge on a larger fleet to make up for machine down-time.

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CMME Heavyweights has all you need to know about the top players in the region’s construction machinery and heavy equipment market. The CMME Heavyweights coffee table book is a valuable resource for not only business entities but also customers looking for a ready reckoner of key industry players.

Published: 15 1st Januar y 20 adline: Advertising de 1st December 2014

Print run 10,000 copies ion of Iveco, CNH’s ogical innovat among the lvania, of technol who are today born in Pennsy brands and FPT, ew Holland was ive industries. in their respect New Holland global leaders proven USA in 1895. r the resources, today a global, By bringing togethe Construction is expertise of technological ction Equipment experience and ial has full line Constru equipment ies CNH Industr ction compan constru the three Brand the of taking New , ouse capable together the heritage created a powerh new heights. brand that brings e of sister brands to worldwide coverag Holland and its is built experience and of equipment history of this the offering full shaped Its productivity, brands that have al, global ers’ needs for of CNH industri around the custom ance and industry. It is part , that bring mental perform goods platform safety, environ sed top four capital Powertrain and includes speciali CNH and Fiat fuel efficiency, as together Iveco, sectors, such to create an (FPT Industrial) lines for key industry or residential with a Technologies ise cture, enterpr de commercial demolition, infrastru industrial and ship with its worldwi l solidity and ers focus, financia building. In partner the clear strategic , it suppor ts custom necessary to realise network of dealers , the independence their equipment. of vehicles cycle rcial life ction its comme for the full ent, and full potential of New Holland Constru y Over the years, construction equipm agricultural and ive record of reliabilit ain businesses. marine powertr has built an impress industrial and rich heritage the on is building CNH Industrial

N

NEW HOLLAND

42

Best known for: Volvo Construction Equipment, Volvo Trucks, Linde, Yanmar, Himoinsa, SDLG, Ingersoll Rand & Merlo

F

Famco

Four page company profile

27 FAMCO

FAMCO

nd a l l o H w e N

E-version

Second edition

Look out for: Wheeled excavators Best known for: rs, Skid steer loade Wheel loaders, TLB

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43

IC DRAGAN KRZNAR BUSINESS MIDDLE EAST CE DIRECTOR, CNH New Holland “Over the years, built an Construction has of reliabilit y impressive record and innovation.”

amco is one of the most progressive dealers to emerge out of the UAE market and is expanding across the region.

Since 2010 it has ramped up its rental business and consolidated its presence in the UAE market as the exclusive dealer for a number of big name, small niche companies such as Yanmar, the Japan-based power generator company, Linde, the German materials handling equipment provider, and Spanish genset maker Himoinsa.

Meanwhile, its relationship with the Volvo brand, through cars, trucks and particularly heavy equipment, remains a powerful offering to the market. The partnership arguably grew closer with the acquisition of the Swedish manufacturer’s Saudi dealer Al-Rehab in 2011.

Famco wants to flex its muscles in the Kingdom taking what it has learned elsewhere in the UAE and Oman about providing joined up sales and service to new customers.

Paul Floyd, managing director of FAMCO (Al-Futtaim Auto & Machinery Co), says that ‘aspirational development’ in the Kingdom of Saudi Arabia has helped the company go from strength to strength since it acquired Al-Rehab.

Floyd said that the company is now in a position to grow the operation on the back of continuing infrastructure investment in the Kingdom.

“The company’s performance has grown from strength to strength across the country and in line with the region’s sustained economic growth,” he said. “Saudi Arabia’s aspirational development plans across many

STRONG PARTNERSHIP Famco’s relationship with the Volvo brand, through cars, trucks and particularly heavy equipment, remains a powerful offering to the market.

For advertising opportunities: Michael Stansfield Commercial Director Direct: +971 4 375 5497 michael.stansfield@cpimediagroup.com

Ten Tips

SERVICE INTERVALS Filters, oil and hydraulic fluids all have to be changed at regular intervals, whether every 250, 500 or even 1000 hours. The greater the service interval (and the less fluid and fewer filters used), the lower the servicing costs across your machine ownership cycle.

And over several years of ownership, these savings will add up!

BREAKDOWNS When a single machine breaks down, it can have an impact on the productivity of other machines, as well as on your staff and other processes. After all, a chain is only as strong as its weakest link, and a process is only as reliable as the least reliable machine. It’s very hard to calculate losses from stops and slowdowns in production, whatever your business, but it’s important to think of the value of having equipment that is reliable and doesn’t break down – and how a breakdown will affect the other strands of your business.

KEYSTONE

MACHINES

IN ANY MA CHINERY FL EET THERE CRITICAL TO ARE THOSE A JOB-PRO MACHINES CESS, AND FOR APPLIC WHICH ARE THOSE WH ATIONS SUC IC H ARE IN SU H A S ASPHALT WHERE A B PPORT. PAVING OR REAKDOWN CONCRETE CAN RESULT AND BINDER PUMPING IN MASSIVE LO S, A BACK-U SSES OF AG P MACHINE OLDER SEC GREGATES IS ESSENTI OND-HAND AL, EVEN IF MACHINE YO IT’S ONLY A U’VE PICKED N UP AT AUC TION.

PERFORMANCE ERFORMANCE Well designed machines, with easy-to-use controls, powerful hydraulics and larger bucket capacities, complete jobs faster, meaning that fewer machines on-site can get through the same amount of work. Operator training is an element of this – if you’re chine, you may buying a new machine, need to up-skill your driver fleet to maximise your investment.

RESIDUAL VALUE

FUEL EFFICIENCY If a machine is 10% more fuel efficient than a competitive machine, calculate how much money that will save you across an entire year or even over a long construction project. While diesel is not the major cost here that it is in Europe, slashing fuel costs improves project profitability.

This will be determined both by the market’s opinion of your machine’s brand and the desirability of that particular model, but also by its condition and service history. Buying an expensive machine that you can sell for a high price will get you money back, versus a cheaper machine that is worth far less when sold on the second-hand market. Don’t forget this calculation when pulling out your chequebook.

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Concrete Tech

Concrete is a demanding industry, where plant failure can be catastrophic and margins are wafer-thin. CMME’s Stian Overdahl discovers how manufacturers are tailoring their equipment to cope with the region’s diverse project mix

READY TO POUR I

n an industry where the cost of raw materials can change overnight, and where any inefficiencies in the mix or loss of concrete will have an impact on a company’s bottom line, getting the right concrete equipment and keeping it performing is essential. Broadly speaking, there are three main areas of equipment – batching plants, concrete pumps and mixer trucks, as well as a range of support equipment – tasked with ensuring a steady flow of concrete to a job site. In the Middle East, German brand Liebherr is focused on selling batching plants, mixer trucks and recycling plants. In the area of batching plants, Liebherr distinguishes itself through the use of high quality steel for long life and durability, as Oliver

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Rduch, senior regional manager - Middle East in Liebherr’s concrete equipment division, told CMME. They are also built with high-powered motors, essential since batching plants may run 24 hours a day, often for weeks at a time. And with maintenance practices in the region often quite poor, strong motors ensure that the batches continue to be forced through. He’s noticed that competing brands, says Rduch, stop and break down more frequently. An owner of a plant can expect it to be in use for at least 15-20 years without major overhauls, though Rduch knows of one plant in Kuwait that is close to 30 years old.

The other major aspect of a batching plant is its control system. In May this year Liebherr launched

Fleet tracking to improve arrival The use of onboard telematics and GPS on mixer trucks can also give managers a significant advantage when it comes to planning and managing a major pour.

With traffic in many of the GCC’s major metropolises at times grinding to a standstill, the last thing a manager wants is news from the driver that mixer trucks are delayed or stuck in congestion. If concrete takes too long to reach the site, it will in all likelihood be rejected by the consultant. On-board GPS can provide real time information about the location of the entire fleet, and if there is congestion in one area, a manager can re-route the remainder of the fleet through a different area, or else call in extra vehicles from elsewhere if necessary.

its new Windows-based control system, MPS III, which uses a BUS system that sends electronic signals between the weighing cells and the control system, giving a lightning fast response. “This means that when the needed weight on the load cells has been reached, there is a much faster cut-off time so that you don’t add additional materials that are not catered for within the mix recipe,” explains Rduch.

“You get optimal speed within the batching and weighing system, but also the optimal amount.

Cement, fly ash and microsilica are very expensive, so if you can save even just 5% per year you’re making big winnings.”

The need for accurate systems is essential, especially when the price of concrete is low. Rduch says that on a recent trip to Qatar there were numerous complaints that the price of concrete has actually fallen below the price of the raw materials. Prices for concrete also remain stubbornly low in the UAE. “When you’re reaching such poor pricing levels, it’s important to have a system that is accurate and you can rely on, and that you can use to economise on your costs as much as possible.”

Rduch is also seeing demand grow for mobile batching plants, especially for job sites in congested areas. Having concrete production on-site reduces the number of expensive mixer trucks needed to transpor t it, and it can also prove more environmentally friendly, and has in special cases been requested by the client.

As concrete is transported from the batching plant to the pour site, it is the concrete pump which is the key machine in the process. If a breakdown occurs during a major pour, a significant amount of concrete can be lost, and the pour may even have to be restarted. Concrete pumps from Chinese equipment manufacturers, notably Sany and Zoomlion, have long been popular in the Middle East, with many truck-mounted pumps and stationary placing booms sold into the region during the boom years.

“CEMENT, FLY ASH AND MICROSILICA ARE VERY EXPENSIVE AT THE MOMENT IN THE GULF, SO IF YOU CAN SAVE EVEN JUST 5% PER YEAR YOU’RE MAKING BIG WINNINGS.”

Subsequently, both companies purchased European manufacturers – Zoomlion bought CIFA in 2008, and Sany acquired Putzmeister in 2012 – and in both cases the parent company brand and the acquisition remain active in the market, in two different tiers – premium and value. Nevertheless, the acquisitions did give both Chinese manufacturers access to a high level of technology and engineering know-how.

Zoomlion has perhaps been the most vocal about its achievements in the R&D field, with its ‘101m’ the Guinness World Record-holder for longest boom, a 101-metre concrete pump which – built using four carbon fibre sections out of the total seven boom pieces – was the result of joint efforts between Zoomlion and CIFA’s R&D teams.

Nevertheless, while the 101-metre pump is something of a showpiece, with limited genuine mass

75%

Approximate portion of cost of a concrete mixer truck that is made up by the vehicle chassis (truck) market utility (if only because of the cost of the seven-axle, 18.5-metre Scania truck it is built over), Zoomlion has made inroads into the region in the boom classes more commonly used by ready-mix companies. Of all the brand’s five product lines (concrete, construction cranes, mobile cranes, earthmoving and sanitation vehicles), concrete equipment has the largest allocation of sales and support staff in the region, and it has four exclusive distributors and one non-exclusive seller in the Gulf.

Earlier this year it reported a sale worth in excess of $1 million to a Kuwaiti ready-mix company, following the CEO’s examination of a 43m truck pump in action with an existing ready-mix customer in Fujairah.

Saudi Arabia is the largest market for concrete pumps in the GCC, and the market is seen as a key growth opportunity on a global sale. The Korean brand JunJin offers a product attractive to the value segment, sold by KiCE Construction Equipment in Saudi Arabia, a company which also manufactures a range of static and portable batching plants, as well

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as offering concrete cooling systems. This year, JunJin launched its new pump, the XZZ28-5.11HP, built with a five-section boom. The biggest advantage of the model, mounted on an HD Chassis, is its total length – under 9m – meaning it can squeeze through cramped residential streets for pours on villa projects.

In late 2012, Liebherr acquired the concrete pump manufacturer Waitzinger, and while it has embarked on a process of optimising the manufacturing processes at the Waitzinger plant in Neu-Ulm, Germany, the limited supply of pumps it can produce means that the Middle East is not yet a priority for the brand, with its activities restricted to supporting the existing population of pumps already here. Once the production output is increased, other markets will eventually be targeted, including the Middle East.

In the mixer truck sector, Chinese manufacturers have also been able to find favour with buyers, especially since the mixer drums are often built over vehicles that are cheaper than the European premium models. It’s a chance for major up-front savings, as the truck is much more expensive than the mixer unit – perhaps as much as three quarters of the total cost comes from the truck, and only a quarter from the mixer unit.

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Shantui, for example, has reported significant sales of its mixer trucks, this year reporting a sale of 50 mixers sold in the Emirates, worth $3.2m, through its UAE partnership with GENAVCO and Juma Al-Majid Group of Companies. Given the relatively small number of ready-mix companies in any market, breaking down the door with a sale to a major firm is seen as an important market success, and Shantui heralded the sale – to one of the largest ready-mix concrete firms in the Middle East – as a breakthrough.

“Over the past year, Shantui has focused on localising its sales, relying on dealers to tap into

Top left: Shantui’s popular truck mixer unit. Top right: Zoomlion’s world record 101 metre boom truck-mounted pump. Bottom: Junjin’s new 5-section XZZ28-5.11HP.

“WHEN YOU’RE REACHING SUCH POOR PRICING

LEVELS, IT’S IMPORTANT TO HAVE A SYSTEM THAT IS ACCURATE AND YOU CAN RELY ON, AND THAT YOU CAN USE TO ECONOMISE ON YOUR COSTS AS MUCH AS POSSIBLE.”

Congratulations!

The first BSF 56-5.16 H arrives in the UAE!

Putzmeister Concrete Pumps GmbH congratulates Al Ghurair Construction – Readymix LLC of being the first customer in the UAE of the New Generation truck-mounted concrete pump BSF 56-5.16 H.

Putzmeister Concrete Pumps GmbH 72631 Aichtal · Germany · www.putzmeister.com Putzmeister Middle East Jumeirah Lakes TTowers (JLLT) · Swiss Tower T Office 1403 · P P.O. Box 262657 · Dubai, U.A.E. TTel: +971 (0) 4 454 27 83 · Fax: +971 (0) 4 454 27 82 www.putzmeister-me.com

2850 GB October 2014

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Concrete Tech

MORE THAN JUST A PUMP Liebherr prides itself on building long-lasting concrete batching plants, using tough steel and high-powered motors, which help negate poor maintenance habits.

“ZOOMLION REPORTED A SALE IN EXCESS OF $1 MILLION TO A KUWAITI READY-MIX COMPANY, FOLLOWING THE CEO’S EXAMINATION OF A 43M TRUCK PUMP IN ACTION.” customer demand and connect with end users. The local sales staff works in tandem with Shantui to connect Shantui’s unbeatable value chain all the way from the factory to the job site, providing after sales support, networking with customers and gaining trust. The sale of 50 units of concrete machinery was the fruit of this effort,” said Jackie Chang, Shantui’s Middle East regional sales manager.

Making up the majority of the order – and its most popular truck mixer in the Middle East – was the 12-cubic-meter capacity HJC5256GJB3 concrete truck mixer. The variant of the HJC5256GJB3 sold in the GCC has undergone 11 variations from the standard model sold in China, to both make it suitable for the environments of Middle East job sites and meet GCC import standards. These variations include anti-corrosion steel and hightemperature proofing key components such as the engine and hydraulic pump. The mixer (pictured) is built over a Shaanqi chassis and powered by a Weichai turbo-charged engine.

Like its batching plants, the drums on Liebherr’s concrete mixer trucks are known for being hard

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wearing, and steel producer Thyssen-Krupp even has a special steel blend that it supplies exclusively to Liebherr, LH 37, referred to as a diamond steel for its hard-wearing characteristics, so owners get the maximum life out of a drum. The drum is built to be as close as possible to the chassis frame, to lower the centre of gravity and increase the stability of the vehicle while cornering or on hills.

“Wee build a frame upon which the drum sits for each chassis individually. We make sure that the quality of the frame is the same as the chassis, so that they work together when there is friction and movement between mixer frame and the chassis frame,” explains Rduch.

Buyers of a mixer drum can have Liebherr buy the customer’s specified vehicle direct from the manufacturer, or they can buy from their local vehicle dealer. If it’s a European vehicle, the drum will be installed on the chassis in the Liebherr factory in Germany – mounted, painted and tested – then shipped RoRo to the Middle East. If the vehicle is from Asia, Liebherr has a factory in China where the process can be carried out.

Beyond merely supplying a pump, manufacturers and dealers are often called upon to supply expertise and problem-solving for tricky pours.

Recently in Oman, a Putzmeister BSA 1004 D concrete pump was used to lay the foundations for a lighthouse project, as new lighthouses have been built on Masirah Island off the east coast and Ras Madrakah further south, to improve safety for shipping. Assisted by Taylor Woodrow Oman and the Omani Putzmeister dealer IHE (International Heavy Equipment), the construction company Al Sarooj used a helicopter and a BSA 1004 D concrete pump manufactured in India to construct the foundations of the lighthouse and minimise the impact on the environment.

While in Ras Madrakah the foundations were also laid using a helicopter, on Massirah the 65m³ of concrete required was transported through a pipeline more than 110m long from a temporary preparation site up the hill to the main site. The pipelines were secured using ropes and chains, but had to be secured with stone-filled sacks in places.

A GVHM 2/2 gate valve integrated in the pipeline prevented the concrete from flowing back towards the concrete pump during breaks in pumping.

Two mobile concrete mixers were used to produce concrete with a maximum particle size of 20 mm. In order to monitor the concrete quality and prevent blockages, workers took samples from every batch that was mixed and continuously monitored concrete production. To overcome the height of 110m, IHE converted the drive end of the BSA 1004 D before pumping started so that the pump would produce a maximum concrete pressure exceeding 100 bar. As an added factor for the project, all of the concreting work had to be carried out at night due to the high temperatures.

(Pictured model is the BSA 1005 D).

Daily: 11:00 - 19:00

THE REGION’S MOST IMPORTANT PMV EVENT

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Featured Machine

A CAT AMONG THE PIGEONS Caterpillar has launched the 950 GC, a 5-tonne payload class wheel loader targeting price-conscious buyers in the Middle East and Africa. Ahead of its official launch, CMME’s Stian Overdahl sat down with the development team to learn how Caterpillar is contesting the wheel loader value segment

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“GLOBALLY, THE

WHEEL LOADER INDUSTRY IS SHIFTING TO MACHINES THAT APPEAL TO A DIFFERENT VALUE EQUATION.”

A

s quickly as high-tech machinery and telematics features are changing the industry, at its core the basic demand on manufacturers hasn’t changed: build and sell machines that fit with the customers’ demands. And that’s why Caterpillar’s newest 5-tonne wheel loader, the 950 GC, isn’t stacked with features which are expensive and high-tech: the industry’s biggest player is going after the value segment, where customers favour a lower acquisition cost. Ahead of the machine’s official launch in the Middle East, CMME’s Stian Overdahl spoke with the product application specialists in charge of the new machine, Vincent Danley and Frank Stadelmann, at Caterpillar’s S.A.R.L (EMEA) headquarters in Geneva, Switzerland. Both are experts on wheel loaders, as well as the Middle East and emerging markets, and say the drive to produce a new wheel loader in the 5-tonne payload class came out of discussion with customers, who were adamant that they wanted a stripped back machine to fit their business models and the current economic climate, namely a machine with lower owning and operating costs, which could be paid off over a shorter period.

“The world has changed, we see a tremendous shift to new markets and new customers with different value drivers,” explained Stadelmann. “Whereas in the past there was a pretty consistent type of customer we were serving, we see that that spread is growing, from those who value our traditional products and those who don’t value them so much. We needed something new.”

It’s a shift that has been felt perhaps most acutely in the wheel loader segment, and the 5-tonne class was specifically targeted. Caterpillar already has a wheel loader in that class, the 950 H, which remains the high performance – or production – machine in the segment. But according to Stadelmann, the 950 H doesn’t represent an attractive value proposition for all customers in the market; it’s a global machine, the outcome of a ‘one machine fits all’ approach. While it has better performance and lower fuel costs, and pays for itself over the machine’s lifetime, “customers have to be prepared to pay more to get more,” he said.

“From the customer interactions we had, we all got the message we had to do something different to remain attractive for a large portion of them.”

The 950 GC will be attractive with companies that have an eye on shorter economic cycles or less market certainty (needing to pay off the machine faster, with less appetite for large up-front investment), customers in new markets (with smaller equipment budgets), and those looking for specific wheel loader applications, with the machine most effective in a support role rather than in continuous use. Stadelmann sees the machine being used for truck loading, hopper charging and stockpiling, and general construction job site work.

Mostly it’s a machine that will be utilised throughout the day for different jobs, rather than continuously as a production machine. On the front end, the bucket is easy to load, with wider mouth, longer floor and curved side plates, making it easier to pull out and carry a load.

For his part, Danley describes the development of the 950 GC as a shift from a product-centric approach to a customer-centric strategy. The product-centric approach was required to build the machines that had to meet the new emission standards in the highly regulated country (HRC) markets, whereas the customer-centric approach is more heavily based on customer demands and requirements.

Al Bahar’s well-tested loader While there is no special meaning behind the ‘GC’ in the name, representatives from Caterpillar’s dealer for Kuwait, Bahrain, UAE, Qatar and Oman, Al Bahar Group, have been joking that there is a missing ‘C’ in the name, wanting it to be called the ‘950 GCC’.

Wishful thinking as it may be, it’s certainly the case that it’s a machine that is likely to appeal to buyers here – after all, it will potentially allow customers to buy a new Caterpillar machine at a price-point that

previously would only have applied to second-hand machines.

And it’s also been tested extensively in the region: as part of Caterpillar’s process to validate machines before they get released for production, one of the pilot machines – there were many around the world – was in the Dubai and Bahrain with Al Bahar, to test the machine in extreme temperatures and dusty environments. Al Bahar also recorded the first sale of a 950 GC in the Middle East, to a buyer in Kuwait.

Out of this, the team designed a machine that fitted the main customer demands for ease of operation, reliability and lower operating costs, including fuel and maintenance. In this sense they started with a blank slate, and it was an entirely bottom-up design process, starting from the customers’ requirements.

And while it may have been tempting to simply roll out an older version of a Cat loader, the 950 GC is a mix of proven technology and new technology, including elements taken from the hydraulic system of the advanced K-Series loaders in use in Europe. And with the machine remaining completely Caterpillar, reliability was a core parameter for the loader.

Since ease of operation was a must-have for the 950 GC, it is built with a longer loader arm than the 950H, to make dumping into trucks easier and for better reach. Simplified controls means that any operator should be able to jump into the cab and control the

2,200 rpm No screen rated engine speed; idling is 900rpm, which drops to 650rpm in idling control ‘hibernate’ mode

the cab of the 950 GC doesn’t have an electronic display screen

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Featured Machine

machine with ease. There’s also the combined tilt and lift movement feature from the 950 H, meaning that there is no priority of the lift movement over the tilt.

Under the skin, the steering system uses pilot hydraulics to control the arm and bucket, rather than an electro-hydraulic (EH) pilot system. The advantage of a pilot hydraulic system is that it is easier to maintain, since it is less complex – the control instructions are sent down a slim hydraulic hose.

What is the trade-off? With the EH system it’s possible to programme functions such as lift kick out and return to dig from inside the cab, and it’s also possible to adjust the sensitivity of the machine controls by plugging in a laptop. With a pilot hydraulic system, the magnets on the arm have to be manually adjusted to change kick out heights.

There’s also no video screen in the cab, another simplification. “Owners were saying they want

Engineering the transmission According to Vincent Danley, one major differentiator separating the 950 GC from the competition in its segment is that the entire powertrain system is designed and built by Caterpillar.

“Everything involved with the powertrain is made by Caterpillar, from the engine to the axle, for maximum efficiency,” Danley said in comments in Caterpillar’s in-house magazine. ”It’s much better value as opposed to our competitors, who use off-theshelf components from different manufacturers.”

When questioned by CMME, Danley was quick to emphasise that the sentiment is no

slight on the quality of driveline components from manufacturers who supply to OEMs, but just a comment about the design expertise involved in developing their transmission.

“When you design the engine down to the axle, you can optimise them to fit together, to get to the best fuel efficiency. I’m not saying that the offthe-shelf components – [brands X and Y] – I’m not saying that those components aren’t good, it’s just that they aren’t necessarily optimised to work together. I think because we control the whole process, we provide superior value to our customers, in terms of fuel efficiency and overall.”

operators to load trucks, not to play around with the screen or be distracted by a message that might pop up,” comments Stadelmann.

Nevertheless the cab is still comfortable, with air conditioning and a suspension seat both standard.

And the ROP’s structure itself is from the next generation of wheel loaders, built out of hydro-formed steel tubes. These pillars are offset from the corners, which gives operators better visibility, especially at the rear, a cab structure that will be introduced onto future Caterpillar loaders.

Another instance of a high-tech element used on the 950 GC is its idling control. The system is being used to solve an old-fashioned problem: high idling time, since, on average, a 5-tonne loader in the Middle East will be idle up to 40 percent of the time. When the parking brake is applied on the 950 GC, the idling control reduces the engine speed even further, down from the ordinary 900rpm idle speed to 640-650rpm.

Another fuel efficiency feature is the load sensing hydraulic system, with load sensors and a variable

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“EVERYTHING INVOLVED WITH THE POWERTRAIN

IS MADE BY CATERPILLAR, FROM THE ENGINE TO THE AXLE, FOR MAXIMUM EFFICIENCY. IT’S MUCH BETTER VALUE AS OPPOSED TO OUR COMPETITORS, WHO USE OFF-THE-SHELF COMPONENTS FROM DIFFERENT MANUFACTURERS.” displacement piston pump which scales back power to the loader arm and bucket when there is a light load; the pump only delivers the amount of oil and pressure needed, reducing fuel consumption and wasted energy, with the energy used to power the wheels instead.

The loader is powered by a C7.1 engine, with a power rating of 168 kW (225 hp). It is fed with a common rail electronic injection system, tuned for lower grade fuel and using only about three quarters of the injection pressure capability – with lower pressure the system is less sensitive to dirty fuel. Meanwhile, a triple fuel filtration system, including a fuel-water separator and dual filter, further ensures trouble-free operation.

With pre-production versions of the machines tested in countries including Russia, China, Peru, Indonesia, the UAE and Bahrain, Stadelmann says that there have been no issues at all with fuel or the engine, with the C7.1 an established engine.

And on the topic of its Middle East trials, the machine is fitted with High Ambient Cooling capability

as standard in the region, allowing it to work in heat of up to 50 degrees. For improved performance in dusty environments, the air flow goes from the rear and into the side (some machines are the opposite), so there is less risk of plugging, as can happen when the air is taken from behind the wheel (side into rear), where the wheel kicks up dust.

Service and maintenance is another area where they’ve looked to shave costs. It’s no secret that customers in the Middle East and Africa prefer machines that are easy for them to repair themselves, if only because they may be operating on remote jobsites; and with the reduction in electronics on the machine, service teams should have an easier time.

And as with the 950 H, the filters for the hydraulic and transmission oils are on the side of the machine in a single service centre, accessible from the ground, as too are the Scheduled Oil Sampling (SOS) ports. This also make the job of servicing and maintenance safer, and the 950 GC retains the guard rails as well as many other safety features of the 950 H.

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The right workflow and processes defined, BIM enables organisations to improve the quality of building design

Dolor Sitamet

Run of page advertising PUBLISHING DIRECTOR RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 EDITORIAL DIRECTOR VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5713 ADVERTISING COMMERCIAL DIRECTOR MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com +971 4 375 5497 COMMERCIAL DIRECTOR JUDE SLANN jude.slann@cpimediagroup.com +971 4 433 2857

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BIM – Business Enabler or Technology Red Herring?

Lorem Systems' Dolor Sitamet explains why it is so important for BIM providers to create systems that will push forward the concepts of simple and effective cooperation between all stakeholders involved in a project Luptas aut acil issus acea polvolorporro iliquibust re occae dimitis dolor?

The UK government’s decision to require that all suppliers involved in public sector construction projects use Building Information Modelling (BIM) tools and techniques by 2016 is to be applauded. The intention is to drive better value from capital investment and realise a 20% reduction in lifetime costs, whilst supporting environmental commitments by facilitating a more integrated approach to design. It is also about changing the culture between the client and the rest of the supply chain, replacing the traditional, rather adversarial business practices with a collaborative approach that should also drive innovation.

However, misinformation is rife. BIM is not just about 3D data but about creating a holistic information resource that also includes 2D data sources, documents, spreadsheets, and more.

I believe the key to realising the government’s BIM vision is to create simple, effective cooperation among the design, construction and operation aspects of the infrastructure lifecycle. Overcoming these traditional silos

provides a chance to reduce duplication, minimise errors, streamline processes and facilitate collaboration.

However, while the majority of new bids now demand some level of BIM compliance, requirements are often opaque at best. Let’s set the record straight: BIM, when done correctly, is about information sharing enabled by information mobility (across engineering disciplines and the infrastructure lifecycle).

It provides contractors and owner operators with access to key design data that can be used to transform effectiveness throughout the construction and operations processes. Yes, it drives better use of 3D across the industry, but not only 3D. 2D data remains important, as does information held in documents, spreadsheets, and other databases, all of which contribute to a holistic BIM approach.

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BIM is ultimately about creating an asset model from day one that can be used consistently throughout the project to drive efficiencies

and improve collaboration. Indeed, BIM also encompasses information management as much as information modelling. It enables a contractor to feed design information into project planning tools and resolve potential conflicts before arriving on site. It also empowers the sharing of space information with facilities management teams before the building goes live to drive effective up-front planning, as well as the sharing of other crucial design, engineering, and construction information that can later be used to help drive cost-effective operations decision making and renovations work.

Leveraging a collaborative platform and technology to share and integrate information, within an incremental approach that accommodates all of the specialised design simulation and analysis software best suited for each project role, will best enable the industry to achieve the desired widespread adoption of BIM. The government’s stance on BIM is to be commended. Demanding Level 2 compliance by 2016 is pragmatic and achievable and promotes the very real promise of intelligent infrastructure that is better performing in terms

of its energy efficiency, resilience to natural and man-made disasters, safety, and cost-efficiency.

However, while industry adoption and interest are positive, it is essential that organisations take a step back and truly assess information requirements.

Luptas aut acil issus acea polvolorporro iliquibust re occae dimitis dolor?

BIM is a business process not a technology.

With the right workflow and processes defined, BIM enables organisations to improve the quality of building design, reduce costs and achieve the collaborative workflows required to drive true innovation.

However, misinformation is rife. BIM is not just about 3D data but about creating a holistic information resource that also includes 2D data sources, documents, spreadsheets, and more.

I believe the key to realising the government’s BIM vision is to create simple, effective cooperation among the design, construction and operation aspects of the infrastructure lifecycle. Overcoming these traditional silos provides a chance to reduce duplication,

minimise errors, streamline processes and facilitate collaboration.

However, while the majority of new bids now demand some level of BIM compliance, requirements are often opaque at best. Let’s set the record straight: BIM, when done correctly, is about information sharing enabled by information mobility (across engineering disciplines and the infrastructure lifecycle).

It provides contractors and owner operators with access to key design data that can be used to transform effectiveness throughout the construction and operations processes. Yes, it drives better use of 3D across the industry, but not only 3D. 2D data remains important, as does information held in documents, spreadsheets, and other databases, all of which contribute to a holistic BIM approach.

BIM is ultimately about creating an asset model from day one that can be used consistently throughout the project to drive efficiencies and improve collaboration.

Indeed, BIM also encompasses information management as much as information modelling.

It enables a contractor to feed design

information into project planning tools and resolve potential conflicts before arriving on site. It also empowers the sharing of space information with facilities management teams before the building goes live to drive effective up-front planning, as well as the sharing of other crucial design, engineering, and construction information that can later be used to help drive cost-effective operations decision making and renovations work.

Luptas aut acil issus acea polvolorporro iliquibust re occae dimitis dolor?

Leveraging a collaborative platform and technology to share and integrate information, within an incremental approach that accommodates all of the specialised design simulation and analysis software best suited for each project role, will best enable the industry to achieve the desired widespread adoption of BIM. The government’s stance on BIM is to be commended. Demanding Level 2 compliance by 2016 is pragmatic and achievable and promotes the very real promise of intelligent infrastructure that is better performing.

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MARKETING MARKETING MANAGER LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498

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The Last Word

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