Truck & Fleet ME December 2016

EXCLUSIVE REPORT LAND TRANSPORTATION INDEX

035 DECEMBER 2016

PLAYERS IN DUBAI “WHY WE HAD TO BE AT PMV LIVE”

FINDING A WAY

MIDDLE EAST

THE BEST OF 2016 THE YEAR’S FINEST VEHICLES

Scania on itS StRatEGY FoR tHE REGion’S nEXt BiG MaRKEt

T O G E T H E R

Automotive • Industrial • Aerospace

W E

M O

Schae

O V E

T H E

W O R L D

effler Middle East FZE • Tel. +971 4 8144 500 • E-Mail: info.ae@schaeffler.com

Apollo Tyres Middle East FZE T : + 971 488 41603 www.apollotyres.com

04 CONTENTS

A supplement of Cmme

31

PUBLISHING DIrector RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5483 eDItorIAL DIrector VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5472 EDITORIAL

36

looks like 2016 will be the mAin topiC in 2017 Wow. 2016. What a tumultuous year that was.

Trump and Brexit were headline acts in a year where it was almost impossible to second guess what the next day’s news story would be. As we stand on the brink of 2017, it is very unlikely to

NETWORK

see the world doing anything else than dealing

04 / diGitAl ConCerns

with the ramifications for the coming 12 months.

A new survey of the region’s transport sector highlights key concerns and trends.

This was also the year that our vehicles got smarter and more connected than ever before with the Middle East, more specifically the

THE BEST OF THE BEST

06 / best of 2016 t&FMe looks at some of the best commercial vehicles launched or working in 2016.

GCC, placing itself at the centre of a revolution in transportation. While that progress may not seem immediately obvious, you only have to

10 / solVinG irAn Scania’s man in Iran talks about the benefit of being able to stay when others left the market.

cleaner and more autonomous transportation, to realise that our vehicles and the way we use roads is changing at a breath-taking rate.

Infrastructure is also high on the agenda.

The completion of the Dubai Canal is a

EVENT REVIEW

reminder that, when required, we can respond

14 / pmV liVe / meC 2016 reView

to challenges here more quickly than we

Ford trucks leads the big fleet and vehicle news from the Big-5’s two co-located events.

sometimes give ourselves credit for. While Qatar

18 / the YeAr of beinG smArt the trL’s Akin Adamson looks at 2016’s smart announcements and what they mean.

22 / trends in trAnsport WtW exclusively shares its survey on the industry with t&FMe readers.

coMMercIAL DIrector MICHAEL StANSFIELD michael.stansfield@cpimediagroup.com +971 4 375 5497 AccoUNt MANAGer BIpIN SONEJI bipin.soneji@cpidubai.com +971 4 433 2856 DESIGN Art DIrector SIMON COBON JUNIor GrAPHIc DeSIGNer pERCIVAL MANALAYSAY MARKETING MArKetING MANAGer LISA JUStICE lisa.justice@cpimediagroup.com +971 4 375 5498 CIRCULATION & PRODUCTION DIStrIBUtIoN MANAGer SUNIL KUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476 ProDUctIoN MANAGer VIpIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713 WEB DEVELOPMENT MOHAMMAD AwAIS SADIQ SIDDIQUI SHAHAN NASEEM

PUBLISHED By

willing to overhaul their road networks.

The burden on those within the commercial vehicles and fleet sectors is to adapt to this may mean adopting technology at a rate that we are not used to. As Bob Dylan wrote, the times are a changing – and now so must we.

Registered at IMpZ pO Box 13700 Dubai, UAE tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com FOUNDER DOMINIC DE SOUSA (1959-2015) PRINTED By pRINtwELL pRINtING pRESS LLC

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© Copyright 2016 CpI. All rights reserved

29 / keepinG An eYe out MiX telematics explores the perks of in-cab cameras for fleet managers.

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to see that (freight-led) Oman and Kuwait are

change and the opportunities they present. This

EXCLUSIVE REPORT

SUB eDItor AELRED DOYLE

is head down with its on-going preparation for the FIFA World Cup in 2022, it is heartening

INTERVIEW

eDItor StEpHEN wHItE stephen.white@cpimediagroup.com +44 7541 244 377

look at the investment in smart technology, such as the Hyperloop One and the charge towards

COVER STORY

coNSULtANt eDItor GAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480

STEPHEN WHITE editor

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.

DECEMBER 2016 TRUCK&FLEET ME 1

ONLINE

MOST POPULAR

FEATURED

READERS’ COMMENTS

CONSTRUCTION

BACkINg OFF

Sheikh Mohammed opens $1bn Dubai Canal

ON OFF-PLAN SALES?

CONSULTANT

ME Consultant Awards 2016 a massive success

In pictures: Big Project ME Awards 2016 winners

The UAE’s Khalaf Al Habtoor has called for an end to offplan property sales. This is a very interesting point for the real estate industry to ponder. On one had many individual property investors have become stuck when developers fall behind on projects.

But then, the industry would need to reconsider its entire financing model for new projects.

Name withheld, via email

CONSTRUCTION

Laing O’Rourke in line for Dubai South project

HOUSE RENTS ARE STILL FALLINg

Rents have been falling in Abu Dhabi for some time (Abu Dhabi rents

CONSTRUCTION

fall amid economic

Dubai invites proposals for Al Maktoum airport works

uncertainty – report, November 20). Lots of people have lost their jobs and supply exceeds demand. Many property agents won’t admit this – but it’s time to drive a bargain

INFRASTRUCTURE

Dubai to build GCC’s biggest hydroelectric power station 2 TRUCK&FLEET ME DECEMBER 2016

Video: MB Crusher machines at work in Saudi Arabia quarry

when negotiating.

Simon Castle, via website

NETWORK

NETWORK 12 16

YOUR MONTHLY GUIDE TO THE MIDDLE EAST’S trucK And Fleet operAtor networK Instability in the region and uncertainty of how to deal with emerging technologies are major worries for transport sector, according to a new survey.

transport sector concerned by instability In a T&FME exclusive, Willis Towers Watson (WTW) says its new report highlights the Middle East’s transport sector’s concerns of a digital future Almost two-thirds of the Middle East’s transport sector also fears geopolitical instability and regulatory uncertainty more than any other megatrend affecting their businesses.

According to the market analyst’s new Willis Towers Watson Transportation Risk Index report, 59.4% of executives in the region consider navigating a shifting social and political landscape a constant challenge.

The Index was compiled from data and insights derived from personal and telephone

interviews with 350 C-suite executives. Survey participants came from a broad cross-section of industry sub-sectors and geographical regions enabling WTW to identify the top 50 risks to the transport sector which it then grouped into five major megatrends.

In-depth interviews were then conducted with executives from each mode of transport – across passenger and freight services – to gain deeper insights into the challenges they face. The senior boardroom executives were asked to rank the megatrends and their associated individual risks across three time-frames: the present, the next 12 months and the next 10 years.

An independent analyst collated the data on behalf of WTW .

WTW shared with T&FME that 53.2% of those in the region’s transport sector are concerned by digital vulnerability and rapid technological advancement. Meanwhile 52.9% see changing market dynamics and business model insecurity as threats to their ability to remain competitive.

Unsurprisingly, given the often multinational and cosmopolitan culture of the region’s operations, 50.3% see talent management and the complexities of a global workforce as a major challenge. A figure far higher than recorded by respondents elsewhere in the world, such as North America (27%) and Europe, Russia, the CIS and Central Asia (26%).

Commenting on changes driven by technology in the Middle East region, Mike George, WTW’s transportation practice leader, Risk Solutions, said businesses must understand the risks to their operations and vehicles as they transition to greater digital integration and smart technology.

“Driverless vehicles, for example, will dramatically change the trucking industry, reducing labor-related costs, increasing efficiency and safety, and extending the operating hours for each truck.”

He added: “Global road, rail and logistic companies clearly face a complex, interconnected risk environment, one where there are very few global solutions, and where community responses are required.

Understanding your risks and knowing how to respond provides a competitive advantage, which is why we believe risk is a path to growth.

“We commissioned this Index to help our clients unlock their potential.”

According to AnAlyst Frost & sullivAn count is estimAted to grow to more 4 TRUCK&FLEET ME DECEMBER 2016

NETWORK

toyotA 2017 uAe rAnge lAunch includes new lAnd cruiser Al-Futtaim Motors, exclusive distributor of Toyota in the UAE, has announced the arrival of 2017 SUV models across its showrooms, including the ‘Pride of the Land’ Land Cruiser, legendary Land Cruiser Prado, FJ Cruiser, Fortuner, and RAV4. The 2017 Land Cruiser features a host of upgrades, such as Hill-start Assist Control (HAC) and Crawl Control.

GaRGash TaRGETs F&B sECTOR aT REGiONaL FOOd shOW Dubai-based conglomerate Gargash took aim at the food and beverage sector at last month’s Gulfood Manufacturing event in Dubai.

The Mercedes-Benz dealer presented a full range of vehicles at the show including the Vito and Sprinter panel vans.

While the two vans represent the here and now of refrigerated food distribution vans, Gargash also looked to the future by choosing to showcase the Urban eTruck concept vehicle, which was recently unveiled Daimler in Europe and its short range electric Vision Van (both of which were covered in T&FME’s November issue).

The 6X6 Zetros.

116t Zetros mAKes its commerciAl debut in Abu dhAbi Emirates Motor Company (EMC), the Mercedes-Benz dealer in Abu Dhabi and Daimler Commercial Vehicles Middle East presented the MercedesBenz Zetros, an off-road utility truck for extreme operations, at November’s Abu Dhabi International Petroleum Exhibition and Conference.

A 6x6 version of the Zetros is commercially available for the first time in the market and features a robust cab-behind-engine truck that Daimler claims helps ensure a smooth ride despite the trucks large size.

The heavy-duty truck is available in

DUbAI TO INTRODUcE wASTE TIppING fEE IN 2017

Dubai will start charging truck firms to use its landfill sites in 2017 as it progresses it plans to reduce the 7,500 tonnes/day of waste by 20%. The scheme will bring Dubai in line with other Emirates.

Director of Waste Management Department, Dubai Municipality Eng

Abdulmajeed Saifaie said Dubai will also employ smart technology, such as GPS tracking systems, Smart Gate and RFID tracking, to achieve its ‘zero-waste’ targets by the beginning of the next decade.

There are currently three recycling stations installed across Dubai, and the Municipality is planning to install a total of 13 before year-end.

“Our efforts have brought the amount of waste dumped at landfills from 11,500 tonnes per day in 2010 to 7,500 tonnes today.

Once the system is fully equipped with smart technologies, we will reduce waste arriving at the landfill by another 20 per cent in the coming years,” said Eng Saifaie.

two- and three-axle variants (4x4 and 6x6), offering GVW from 18 to 40t. The 3643 AS 6x6 Tractor-head model (exhibited at Adipec) can haul with a frankly daunting GCW of up to 116 tonnes. In-line 6-cylinder engines available from a 7.2l version with 326 hp up to the powerful 12l variant sporting 428 hp, EMC said.

Bilal Al Ribi, EMC Daimler CV general manager, said: “We are delighted to introduce our customers in Abu Dhabi to the Mercedes-Benz Zetros during our participation at Adipec 2016.

“Offering exceptional ride comfort and stability on the most extreme offroad terrains, the Zetros is ideally suited for tough applications and operations such as mining, oilfields and quarries.

“Given its outstanding high loadbearing capacity and ability to meet today’s extreme operating conditions,

sAudi’s pAssenger vehicle thAn 10 million by 2020

we are confident that the Zetros will soon become the preferred choice in the high-performance construction vehicles segment.”

DECEMBER 2016 TRUCK&FLEET ME 5

2016 Round-uP RoUnd-UP

Best of 2016

T&FME lines up the best commercial and fleet vehicles of 2016 T&FME and its readers were lucky to see some stunning new vehicles released this year and witness others go from strength to strength. The magazine has attempted to break down what it feels made impressive launches and contributions in the region in 2016, as well as those that demonstrate advances that could have an impact in years to come. There were many other candidates that could also be included in the list, so narrowing them down was a difficult task. However we will be looking at more categories than ever before in 2017 and look forward to bringing them to your attention.

Long HAuL oF THE YEAR

Long HauL of tHe year Winner: Iveco Stralis Iveco unleashed a new long haul in the Stralis this year but for Middle East customers it is the 2013 Truck of the Year that continues to prove its total cost of ownership virtues.

What they said: “Think big. The Stralis is an outstanding solution

for the present and future needs of the haulage business, and the only vehicle in its class to offer such a wide and integrated range of functions for optimising costs.”

What we said: “Iveco’s summer launch of the newest version of the Stralis, the XP, majored on its total cost of ownership compared

6 TRUCK&FLEET ME DECEMBER 2016

to its competitors. The XP may be a Euro 6 engine truck, but there are elements to its overall approach to TCO that will surely filter into higher emission markets, such as the Middle East.”

Runner up: Renault C-Series A less than typical long ranger, nevertheless the Renault C’s

cab has been designed to a spec typical of long haulage (the newest model has improved space); making the tractor head a flexible addition to a fleet. It’s rugged enough for the Middle East too and the C trucks get Renault’s Optitrack hydrostatic traction on the front axle, for temporary extra pulling power.

2016 Round-uP

LIgHT/ MEDIuM TRuCK

LigHt/MediuM truck of tHe year Winner: FUSo eCanter Taking the lessons learned on the eCell, the eCanter is arguably the first truly next generation electrically powered commercial vehicle to hit the road. While it may not yet have a Middle East launched date (North America and Japan are first), T&FME feels it was the most impressive so called EV to date.

What they said: “eMobility and eco-friendliness of trucks are becoming one of the most important criteria for customers who make a buying decision for commercial vehicles. The emission free electrically-powered truck made by FUSO is playing a big part in the market of electric mobility

HEAVY TRuCK

and is revolutionising the market of sustainable mobility.”

What we said: “T&FME both tested its second generation predecessor (the E-Cell, more on that next issue) and toured the production model at the show, and, unsurprisingly, given its soon-to-be-delivered status, it was the most fully formed example of eMobility at the show.”

Heavy truck of tHe year

Runner up: ISUZU Forward FSR 33L The Euro 2 version of the popular Isuzu Forward FSR is a durable medium-duty truck. The F-Series offers a wide range of models that can address the demanding requirements for any operators needs from cargo body applications to freight carrier and medium haul operations, for any payload range between 7.5t to 12t.

What they said: “The truck has high ground clearance to operate in tough environments and a comfortable cabin for the drivers, which made the job less physically draining and allowed them to drive for longer.”

Winner: Volvo FMX The completion of its task on the Jebel Jais Road project was one standout among many in a year that saw a revised version of the Volvo construction heavy weight launched complete with a crawler gear and a series of upgrades.

What we said: “Features such as Volvo Dynamic Steering, rear air suspension, i-shift are now

available on more trucks than before. And there are genuine industry trend-setters to be had such as a raised drive axle which can save up to 4% of unladen fuel costs and Automatic Traction Control (ATC), which only engages the front axle when it’s needed.”

Runner up: Mercedes-Benz Zetros The new 6x6 version of the Zetros is the newest vehicle to make our end of year list and it is a monster.

In-line 6-cylinder engines available for the Zetros range from a 7.2l version with 326hp up to the powerful 12l variant sporting 428hp. Top GCW is 116t and the Zetros’ behind the cab design is a throwback in style that adds superb stability and smoothness to the ride.

DECEMBER 2016 TRUCK&FLEET ME 7

2016 Round-uP

VAn oF THE YEAR

van of tHe year Winner: Mercedes Sprinter The advantage of vans is their flexibility from a buyer’s requirements point of view and the Sprinter offers a huge variety of options from one platform. You can go for the small compact version or the Crewbus, or even an ambulance variant (the 324).

What we said: “The Sprinter earns its nimble handle but it is also one of the largest vans in its class. While it celebrates its 20th year in 2016, it was given its first hard launch in the Middle East just three years ago and has established itself with other vehicles of its type as a viable alternative to the Asian loaders that dominate the market.”

What they said: “Boasting the best-in-class variant range, the new Sprinter is a truly reliable partner.

Every dimension and component is designed to make your workday easier. Available in three wheelbases, four body lengths and with three different roof variants, the new Sprinter is the perfect solution to every transport and shuttle challenges.”

Runner up: Iveco daily While 80% of the components on the new Daily have been redesigned, the vehicle has preserved its classic ladder frame chassis structure. The new architecture of the vehicle incorporates longer wheelbases and reduced rear overhang, assuring improved driveability without compromising agility in confined spaces.

Bus of tHe year

8 TRUCK&FLEET ME DECEMBER 2016

Pick-uP of tHe year Winner: nissan navara Offered in narrow- and wide-body versions, both with dual cabs, the vehicle has a choice of 2.4 litre petrol or diesel engines and is available with either two or four wheel drive.

Nissan claims power figures of 168hp and 244Nm of torque for the petrol and 161hp and 405Nm of torque for the diesel version.

What they said: “Our research identified a demand in the market for a dual-use pick-up truck that lends itself to both heavy-duty applications and activities associated with more sporty vehicles. The new wide-body seeks to fill that gap in the market and will be one of the best appointed pick-ups in the segment.”

What we said: “Whether it has

the necessary wow factor to woo the home market remains to be seen but there are several SUV-like luxury appointments to appeal to a more dual-use market or to a customer who would like to use the Navara for both commercial and leisure applications.”

Runner up: Toyota Hilux The Hilux is now onto its eighth generation and boasts a tougher looking body and a sleeker interior.

Performance has been enhanced too, with Toyota claiming the overhaul transmission improves fuel efficiency by as much as 15%.

The Hilux is now longer and wider and the loading deck has also been re-jigged. Under the hood, buyers have a choice of 2l or 2.8l petrol engines or a 2.4l diesel.

our strong commitment to sustainable transport solutions.”

Winner: MAn Lion City CnG MAN Truck & Bus was first commissioned by Abu Dhabi to conduct extensive trials and is currently being evaluated by the Dubai’s RTA ahead of the Expo 2020. The tech underneath is proving successful elsewhere with 2,000 MAN-powered CNG engines currently operating in Tehran.

What they said: “As the leading manufacturer of eco-friendly natural gas-powered vehicles, our CNG range of buses also highlight

PICK-uP oF THE YEAR

What we said: “The Euro 6 CNG engine offers an environmentallyfriendly public transport mobility solution with extremely low pollutant levels.”

BuS oF THE YEAR

Runner up: Tata Starbus Skool The Tata Starbus Skool bus has been shaped and developed to comply with mandatory (Dubai’s RTA was been instrumental in its evolution) norms for safety and design standards.

InTERvIEw IntervIew

No mere dEsK joCKEy

Tobias sigersTad, scania’s counTry manager, Talks To T&FME abouT leading The charge in iran from his swedish office

2

016 was the year that marked Iran’s re-entry into the international fold. Take a quick peak through the year’s issues of T&FME and you will read many stories about the challenges and opportunities the country is presenting to commercial vehicle producers of all shapes and sizes. It’s not all good news either as the realities of returning to Iran begin to hit home.

Scania, however, is one company that has made undoubted progress and is now ranking as one of the top international brands in the market in many segments. Its coach sales, in particular, are particularly impressive and could soon hit 1,000 buses in the very near future.

As impressive is the fact that its country manager, the youthful-looking Tobias

10 TRUCK&FLEET ME DECEMBER 2016

Sigerstad, remains largely based in Sweden.

He tells T&FME that Scania has to be heavily dependent on its in-county dealer partners.

“I’m actually based at the head office just outside of Stockholm but we have great partners in Mammut for trucks and Oghab Afshan for buses. We’ve been with Oghab for 60 years and Mammut roughly since 2008.”

He continues: “I think the distributors we have do a great job. The volumes we have for coaches, especially buses, is very good I think.”

Scania has built up real estate in the market via the two companies which includes Mammut handling truck assembly using CDUs and knockdown kits provided by the Swedish company.

Scania’s country manager tells T&FME that the company is proud of its position as one of the leading coach brands in the

market and how it managed to remain active when others left: “It’s very hard to get statitistics from Iran, but according to our sources, and are market leaders in buses.

For coaches, we are well and above 70%."

He adds: “Since the sanctions hit we have been there continuously, the entire time. I think that’s why we have managed to do very well over the past couple of years. The competitors withdrew from the market and but we have stayed in there."

Sigerstad explains that the Scania set-up was largely unaffected as controls on dealing within and without tightened around Iran.

“It is a matter of having the right distributor and both Mammut and Oghab Afshan managed to do well. We weren’t really that restricted by the sanctions as that was more to do with

IntervIew InTERvIEw

buying within the country. The governmentowned importers had more problems.”

As of 1 January 2016, the UN sanctions loosened, reigniting the Swedish manufacturer’s global competition’s interest in the market.

As T&FME has learned this year, most of the big European (the dollar remains a nontransactionable currency but the Euro is able to be exchanged) players view Iran as the biggest single market in the Middle East – potentially.

“Now the sanctions are lifted... this is when the real fight starts,” comments Sigerstad.

He is relatively new to his role as the head of Scania’s assault in Iran having had the brief land on his desk in March. He says agreeing to handle the market was not a decision he took lightly.

“Someone said you need a challenge,” he jokes. “But it is amazing (for us). Our CEO has

been in Iran four times this year, so it is a market with high interest and importance for us. But there are, of course, challenges every day.”

His early impressions of Iran have been mixed from the five trips he has made so far. The economic environment is yet to mature to a level seen elsewhere in the region but he continues to be surprised by many things he has seen and learned thus far.

“In some ways, it has beaten expectations. If you’re talking about road safety and emissions they have started, and need to continue. But if you look at traffic surveillance, speed cameras... they actually have intermediate timing between stations. We don’t even have that in Sweden.”

Sigerstad beams when he talks about the demand for buses (he says that replacing the country’s fleet of city buses has been mooted)

but is markedly cautious about current truck sales. He echoes the thoughts of others when he remarks about the difficulties for fleets looking to raise money for new vehicles in the market.

“Everyone expects big volumes for the truck side but we haven’t seen that yet. The central bank is lacking money and assets are still frozen. In the six months since I’ve been there, people haven’t seen any improvement – and certainly not since the sanctions ended.”

For now, much of Scania’s efforts are targeted at private enterprises. Turning his attention to overall demand he argues that there is a large and latent need for new trucks and buses but there are major obstacles to be negotiated before it could be the gold rush country that many have predicted.

“There are 250,000 vehicles that need to be scrapped,” he tells T&FME. “When you are

DECEMBER 2016 TRUCK&FLEET ME 11

IntervIew

MaMMut aiMs for localisation Iranian company Mammut has been importing auto parts from its Swedish truck partner Scania but says it is now planning to achieve 40% localisation of the manufacturing of the parts.

"We have already started localization.

Our groups are working with Scania and we should go as far as 40%," Mammut diesel Parts and services sales manager Hamidreza Khabbazzadeh told news agency Trend last month.

"Iranians have the ability to manufacture parts, especially in cities like Isfahan and Tabriz.

We can even become exporters," he added When asked about the status of part imports to Iran, he said the market had lacked 'organised oversight' over the market has left the way open for numerous low-quality brands, Trend reported.

"They are not standard parts which if used, will cause serious damages. Everyone knows about their distribution. All the sellers have certificates, but nobody takes action."

He said transparency in the importation

there, you see all these large American trucks from before the revolution in 1979. They’ve been on the road for 40 years, basically. So there is a big demand for changing to new vehicles and there is new regulation coming for city buses.”

He adds: “In order for people to sell, Iran needs to improve its cash flow into the country.”

The lack of funding will continue to blight the market in Iran but Sigerstad argues that Scania, again, should feel the benefit of its strong local representation.

“They (the competition) have an uphill battle, for sure. We’ve been with the Iranians through the tough times and we want to be with them during the good times – hopefully.

The customers I meet have told me that we have stuck by them and we made it out.”

“If you have 250,000 vehicles that need to be exchanged and the volumes continue as we think they will, then it might be between 25-45,000 units per year. Germany is 55,000 units per year, so it is a big market. The need for new and cleaner trucks is so substantial it could be one of the most important (markets) too.”

dEvELopIng FoR IRan Scania is future-proofing itself against incoming competition by adapting its engine technology for

12 TRUCK&FLEET ME DECEMBER 2016

Iranian requirements. He claims that its existing engines have held up to the harsh and often high conditions in the country but Scania is intent on meeting ever more challenging restrictions on emissions: “It is a good thing that the Iranian government is trying to reduce the pollution.”

Sigerstad explains to T&FME that it has developed what he describes as an exclusive emission level for the market based on its existing Euro VI technology called Euro IV + DPF. The system is currently due to complete its implementation by March 2017 and matches, as the name suggests, the emission particle levels introduced a decade ago in Europe.

“It’s a more robust version of the Euro VI engine that can deal with the higher sulphur content,” he claims. “The sulphur level in Iran is one of the worst there is.”

His suggestion that it is possible to retrograde newer engines to cope with higher sulphur content will raise eyebrows to those told that the region will never go beyond Euro III but Sigerstad suggests that it is a classic question of cost.

“It can be done but, of course, it is going to cost more money, for sure, but the legislation in Iran is now quite hard. We have this system and our competitors may not believe in the same idea. We will see."

and distribution of parts can help grow the quality of the market a great deal.

Iran stipulates that the localisation of products as a requirement to operate in the market.

Iran is also trying to mandate stringent preconditions before allowing foreign car manufacturers back into the country, which could deter some inward investment.

He continues: “Our argument is: take a city like Tehran which is 1,300m above sea level and if you were to go with a Euro V B it would shut down. It’s just not applicable, it would shut down at 1,000m but ours are active to 1,600m. It is a good solution. If you are in Tehran during the winter, the smog and the pollution gets really bad. This reduces particles to the same extent as Euro VI.” Nearing the end of our conversation, he says that even in his short time of working for Scania in Iran he has seen changes to the country but it still faces major challenges in its development from this point onwards.

“During the sanctions, the Iranian people suffered. But I saw Kinder Eggs on my second trip out there. So hopefully things are changing.”

C

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PMV LIVE REVIEW

14 TRUCK&FLEET ME DECEMBER 2016

PMV LIVE REVIEW

Ford stars at PMV Live

T&FME rounds up the best show news from this year’s PMV Live event in Dubai

A

move to the other end of the cavernous World Trade Centre may have meant that PMV Live had to be found before it could be explored but there was no shortage of news coming out of the event.

Ford Trucks and Al Tayer Motors, its official importer-dealer in the UAE (look for a full interview in the next issue of T&FME), unveiled the 2017 line-up of its powerful Construction Series of trucks during this year’s show.

The range includes the 4143M and 3543M mixers alongside the 1843T tractor, which are powered by the new Ford Ecotorq engine family, Ford Trucks said. The 2017 Construction Series now comes with greater power and more efficiency to ensure customers can continue with their tasks, the manufacturer added.

The company, which has its Middle East headquarters in Dubai, also announced plans for establishing a new office in Riyadh to further strengthen its presence in the region.

“Ford Trucks Construction Series offers a balanced blend of features. The trucks land on construction sites with a single purpose; to make your project more durable and efficient,” said Emrah Duman, international markets director, Ford Trucks. “As a first step to expand our network with a focus on retaining facility investments, our upcoming office in Riyadh will help us in further

improving our service, and reduce response time to our customers. With over 55 years of manufacturing expertise, Ford Trucks are tailored to meet the specific requirements of the Middle East market, he added.

The 2017 Ford Trucks Construction Series now delivers 430PS of power and 2.150Nm of torque with the new Ecotorq engine, a significant improvement over the previous generation which delivered 350PS and 1.400Nm of torque.

Uphill traction on rugged terrain has also been improved, the manufacturer said, and the new 400KW engine brake provides the driver with better control while climbing steep slopes in earth-moving and cutting sites.

An optional 600KW Intarder option offered for even tougher conditions brings the total braking capacity to 1,000KW, ensuring that the heaviest loads can be safely carried on even the steepest slopes and hills.

Ford says the range is purposely designed for demanding construction site environments, and a new feature in the Construction Series is the automated transmission option.

With Off-road, Rocking and Economy modes, the transmission option assists drivers on a multitude of terrain types.

Another new feature is a 22% improvement in turning radius over the previous generation, which reduces the number of manoeuvres in tight site conditions, Ford Trucks said.

Meanwhile, Franz Freiherr von Redwitz, the man that took over the MAN Truck and Buses’ Middle East operation last year cast his eye over the construction market. Speaking during the event, he advised companies operating in the Middle East to focus on aftersales and efficiency to improve their market shares. However he was sanguine regarding the current construction situation.

“We do not see much wind next year at all, as the market remains difficult,” he said.

“The construction market is more competitive than ever and in order to differentiate yourself, you have to reduce costs for the customer by giving him a better quality than his peers.”

Rapid Access let those looking for some higher thinking themselves by offering trips on its powered access platforms. Those lucky to get on-board had a 27m-high vantage point to take in a view of an ever-changing part of downtown Dubai as well as a selfie photo opp (not that T&FME approves of such things).

Tomás Colaco, marketing manager at tipper cylinder manufacturer HYVA MEA, spoke on the topic of the evolution of the tipper body weight for the construction market worldwide during the conference and told T&FME that the Netherlands-based company was keen to look at how the designs of tippers are changing and its role in adapting to that evolution. He added that he expected partners Daimler and Bion to attend the presentations too.

DECEMBER 2016 TRUCK&FLEET ME 15

PMV LIVE REVIEW

roBoTics and reFueLLing The official KUKA system partner in the Middle East & North Africa (MENA), hosted a demonstration where visitors could explore how robotics and 3D-printed technology can be used to in industrial applications. Visitors saw mobile heavy duty platforms used as transport systems for internal logistics, witnessed metal cut at fast speeds and with versatility for cutting curves and angles and watched how laser beams use a thermal process to enable precision cutting.

According to marketing director of DigiRobotics, Svitlana Voznyuk, “DigiRobotics robot is capable of producing higher throughput, lower capital costs, and increase flexibility of concrete 3D-printing.

DigiRob Concrete has the advantage of flexibility because of a large work envelope

“We didn’t want to market Hyva to our customers. We wanted to position Hyva as a thought leader as a company that monitors tipper bodies and how we are evolving our product designs. When we launched our new products (the Alpha Tipping Solutions series) two years ago, we tried to pitch them as lighter. But people in the Middle East don’t always see the benefits.

He continues: “Weight was never been the biggest criteria: one reason is that they never had road regulations here. Our bodybuilders (like Bion) understood it, our OEM truck manufacturers understood it but the end-user didn’t understand it.”

With this in mind, Colaco instead concentrated on the total cost of ownership during his presentation: “Besides that, it also translates into more payload that you can carry.”

The Alpha Tipping Solutions series from Hyva is a completely re-designed and reengineered system and can operate up to 250 bar. The company claims it is lighter, faster and more efficient than its predecessors.

He adds that Hyva opted to develop much stronger cylinders too before explaining the benefits to Middle East customers. “(In Europe) because we can work at a higher working pressures, the diameter is much smaller and translates to less weight. The end-users here still insist on keeping the same diameter of cylinder – which is more than we require.”

Staying on the topic of tippers, one of the highlights of the first day of the event was KHF Automotive’s Big Tipper Catch challenge. The company represents German

16 TRUCK&FLEET ME DECEMBER 2016

manufacturer Meiller in the UAE and business development manager Abhilash Isaac says the highlight of its presence this year was a new flagship rear tipper: “developed for the harsh conditions encountered in construction and waste management – from the transportation of bulk materials to heavy demolition works.”

Like Colaco he describes the regulations regarding load restrictions as lenient here.

He also claims that Meiller’s high pressure hydraulics which operate at 280 bar delivers higher lifting force for the same cylinder diameter.

“Also the Meiller scissor tipping stabiliser with optimised trapeze crosssection gives 30% higher torsional strength, enhancing safety when tipping.

The tipper bodies are made of fine grain steel that are crack resistant, have low wear for the harshest conditions and are suitable for heavy duty daily use; “making our product the most adaptive to Middle East conditions.”

Isaac believes that tipper companies like Meiller can look forward with optimism at 2017.

“The rapid pace of medium- to longterm infrastructure projects in the region provide plenty of potential and we are here to become a name to reckon with in vehicle construction, especially tippers.”

M H Al Mahroos, which represents Yanmar, IMER, Genie, ALKO and Trailer Rims, set-up its own challenge, this time using an excavator to attract visitors, who had to attempt to play basketball using the machine against the clock.

with a 6 axis structure, giving it the freedom it needs to manoeuvre.”

Industrial robots usage is predicted to increase by 30% by 2020 in GCC countries with a large percentage used on construction projects. In the GCC, DigiRobotics customers that use robots in manufacturing include Doha National Museum, Al Forsan International Sports Resort, Extension of Khalifa University, King Abdullah Petroleum Studies and Research Center in KSA, among others.

Fellow automaton maker Robotanks showcased its fully-autonomous fuel stations to visiting contractors, construction professionals and owners of big vehicle fleets. Robotanks claims it can provide fuelling services “from anywhere, without the need for manpower and help in the storage, filling and transportation of fuel.”

This new solution will cost between $25,000-$30,000, added the company.

“These are very safe, durable and reliable and delivered by the company for end-users in the construction industry. They meet the need for solutions without the daily support of people, providing self-service from anywhere.”

“The leaderboard shows those with the quickest time in the excavator challenge and it’s great to see so many people enjoy the spirit of competition while they get to know the workings of the machine,” said Talal Al Mahroos, marketing manager.

IntervIew InTERvIEw

GoinG the ExTRa MILE

Akin AdAmson of the tRL gives his view on hypeRLoop one And teLLs t&fme thAt we shouLd be Looking At Autonomous pubLic tRAnspoRt to fuLfiL ouR LAst miLe jouRneys

18 TRUCK&FLEET ME DECEMBER 2016

IntervIew

“There are challenges surrounding privacy and securiTy. Those are Things ThaT all indusTries are sTruggling wiTh aT The momenT. whaT can you share? whaT you can’T; and whaT happens if ThaT daTa geTs inTo The wrong hands.”

L

ast month, saw the announcement that the UAE was exploring a new form of transport – Hyperloop One – that could send passengers door-to-door at supersonic speeds in small pods across the GCC. It looks and sounds like science fiction, and Akin Adamson of the Transport Research Laboratory (TRL) warns there are major hurdles to jump before we will be sent hurtling from Abu Dhabi to Dubai at 1,200km/h.

“I’m not surprised by the announcement because it’s been touted for a long time and has been bubbling in the background. But I think the reality of Hyperloop is still some way off. There isn’t one system that currently actually works – there’s been a lot of testing and trials; and the safety implications are huge – but, of course, the cost of the system isn’t as well understood as you would hope. We have an activity called horizon scanning where we continuously look at what’s coming. I’m not sure what our official views of Hyperloop are but if I just think of the safety implications of firing human beings at supersonic speeds…” He pauses to chuckle.

“There are just massive implications. I do wonder if the first commercial applications won’t be for humans as you don’t have the same massive safety implications. And when the accountants start looking at it could be that the initial application is quite different from what’s being envisioned now.”

The TRL celebrates its 20th anniversary as a privately owned and independent research body this year. T&FME spoke about progress in the region with one of its leading explorers of future transportation Professor Chris Reed earlier in the year, but much has changed in the short span of six months.

Adamson, the TRL’s regional director, has a unique perspective of the growth of smart mobility in the region having started as a consultant to OEMS in the automotive industry before taking on a role in the telecommunications sector in Qatar. He moved to TRL four years ago and he describes progress since then in smart mobility as ‘lumpy’. The term is Adamson’s highly descriptive take on its uneven growth to date.

“When I joined, the bulk of our work was in Abu Dhabi and Qatar with little bits in Oman and Dubai. We probably have the same amount of work in Qatar. We’re not nearly doing as much in Abu Dhabi at the moment but Dubai certainly seems to be forging ahead.”

DECEMBER 2016 TRUCK&FLEET ME 19

IntervIew

Potentially ground-breaking technology like Hyperloop One is still in the early stages of development.

He adds the other place TRL is active is the occasionally sluggish Kuwait market.

“We are doing more work is in Kuwait, oddly enough. I wouldn’t have predicted that but I think Kuwait has suddenly woken and seen what the other countries are doing. Their infrastructure has probably fallen behind a little bit. Roads are seeing growth as they are the easiest things to do. We have seen plans for Metro and light rail for a while. A new airport has been given the go ahead. There’s a new massive bridge project that they’re building.

They will make Kuwait a much more attractive place to live, work and invest in.”

Still based in Qatar he looks back on his time in telecommunications, where the handling of data is so fundamental, as a useful stepping stone into his current realm of expertise.

“The last part of my role in telecommunications was looking at IoT (the Internet of Things) and connectivity; and what is interesting is the convergence of technology. In the past, you talked about the car phone as the zenith of a connected vehicle,” he says. “Now, of course, the idea of a connected vehicle goes way beyond that to the point you have eCall in Europe which, if the car has an accident, automatically sets off an alarm that tells the emergency services what has happened.

20 TRUCK&FLEET ME DECEMBER 2016

“What’s interesting is the convergence between all these different technology nodes, whether it be vehicles or infrastructure or ITSm and how they are all enabled through a connectivity layer. Having a foot in all these different camps is a nice place to be at the moment. I’d like to say it was entirely deliberate but to be honest I’ve been lucky that I’m able to bring together all these experiences.”

The automotive industry finds itself at the centre of the debate of what happens to the data and its own approach to handling sensitive information could be tested in the years to come.

challenges To privacy In the aftermath of a US election that freely discussed the role of hacking in disrupting the campaigns of the candidates, Adamson delivers a timely note of caution when discussing the volume of data that courses through the veins of smart cities.

“There are challenges surrounding privacy and security. Those are things that all industries are struggling with at the moment. What can you share? What you can’t; and what happens if that data gets into the wrong hands. While most cities currently have security protocols in place, their use will only increase as more data is stored and used.”

He adds that the TRL is the middle of funding a programme looking at cyber security and may share its findings in 2017.

In company, Adamson is able to eloquently articulate the challenges and opportunities that smart mobility brings to the Middle East.

He finds himself in high demand on the event circuit and in the past month followed an appearance at the recent Natrans event in Oman with a spot at Gulf Traffic.

Adamson says that he found his participation in Muscat one of an increasingly rare opportunities to learn: “At this stage those are opportunities are becoming fewer and farther in between which is shame.

“The people who did attend were very well informed and we had some good discussions and debates, particularly about freight.”

He describes the discussions he is having on smart technology enthusiastically and he is fascinated by the flavour of the development in the Middle East: “There are definitely pockets of activity that are starting to go beyond traditional modes of transport here.”

He continues: “My experience in telecoms was that although people talked about adopting the latest and greatest technology, the real mode of operation was to be a follower: taking on what’s worked elsewhere. What's changing,

IntervIew

particularly in Dubai and over the last 12-15 months is that innovation has become more of a buzzword.

“Again, Dubai in particular, is looking to get ahead of the curve and almost take two steps at once. What’s the rest of the world of the world doing and then adapting that for the local market, conditions and environment. They are looking at New York, London and Munich and saying ‘yes we want a bit of that but we also want to do it better and suit our needs’.

“What is happening in a wide range of organisations is that we’re seeing specialist teams set-up to manage innovation. It has to be managed and resources have to be applied to it.

I think it is too early to see the real fruits of that but what we will see over the 12-14 months is some real green shoots of things that are perhaps being touted now. That will be as a result of managed innovation.”

plugging in auTonomy Adamson expects a short phase of data gathering as the region moves towards the implementation of smart technology in transportation. This process will probe the current road and transportation networks and will eventually lead to the design of the infrastructure required to support the integration of smart technology and increasingly more autonomous vehicles.

“We’ll really look at what smart is. I think we will see an explosion of sensors that look at the environment, vehicles or drivers. It’s all about collecting data,” he says.

“After that, the priority is connectivity and getting data into a place that can be usefully deployed. And then it is about analysis and insight.

“Connectivity is becoming endemic and organisations will need to shift more resources into analysing data and creating insight.”

He continues: “I think where this region is a little different to others in the world, and where things will slow down a bit, is the sharing of data.

“To give you one example from Glasgow in Scotland. It won a UK innovation award for implementing a series of smart city initiatives and one of best things it did was open up all the city’s databases.

“That enables application developers to get hold of that data and suddenly you had a whole range of apps and smart technologies without any real government intervention. That is one path to technological advancement that is a little

further down the line here just because people tend to hold data close to their chest. It may slow the process down.”

Beyond Hyperloop One, Dubai remains intent on achieving its goal of 25% of journeys being autonomous by 2030. Adamson suggests that it is public transport that will solve the all-

“i Think where This region is a liTTle differenT To oThers in The world and where Things will slow down is The sharing of daTa.” important challenge of shuttling people from the mainline transportation to their front door “Yes I do think that (goal) is achievable – absolutely – but I think you have to look at what you classify as autonomous vehicles.

The perception is that you will jumping into your Tesla driverless car and you get 25% of your vehicles on the road being autonomous.

But I don’t think that is achievable but if you

look at the definition of autonomous, then any journey on the Dubai Metro, for instance, is an autonomous journey.

Taking his point further, he argues that public transport that can fulfil the need of the so called last mile of journeys more effectively than the current generation of autonomous vehicle technology.

“If you look at things like last mile transport and urban delivery services, then you can quite quickly build up a significant picture of the types of journey which can be done autonomously,” remarks Adamson. “That’s the technology that can drive that figure.”

In terms of blue sky thinking, he pulls the proverbial rabbit out of the hat when he suggests that current advances in flying vehicles could lead to them being introduced in the distant future: “I have no clue how that is going to work in practice but I think that, as future mode of transport, it tickles me.”

Returning to the more grounded realities of the here and now and what will come shortly, he tells T&FME that we should be looking to reap the benefits of the technology that will lead to driverless roads.

“Where does looking at the horizon get you?” Adamson asks. “Some of the biggest advances we will see won’t be in a huge increase of autonomous vehicles but what we will see in the short term is that systems that allow those to work are already in place, such as automatic braking systems.

“These are systems absolutely required for automonous vehicles (coming in 20-30 years) but with huge benefits to things like safety for vehicles in the next five to ten years.”

adamson on an elecTric fuTure "Electric, ultra and low emission vehicles are definitely on the increase. Even in this region where fuel is relatively cheap.

We will certainly see a rise in first hybrid vehicles and then in time fully electric vehicles.

"That will largely be driven by where electric vehicles are most relevant and most applicable.

Again this will likely be public transport and freight. For private vehicles, we’ve seen where governments are using heavy subsidies for electric vehicles, such as Norway, the uptake

is very high. Where it is little less prevalent in places like the UK, the uptake is much slower.

Where there is no subsidy, it is really only about early adopters and people who are curious.

"At the TRL, we have lots of contact with commercial operations. There are everyday transport issues we will talk about whether it is road safety or optimal use of fuel. But some of the new areas we are starting to discuss with big vehicle fleets centre on new technology. We have people asking us to verify

that a new battery systems does what it says on the tin or whether a charging system works how the manufacturer is saying it should work.

"We also have non-traditional clients to us, like insurance companies. We do so much work in road safety that we have a very good understanding and data sets on the causes, liabilities and outcomes of accidents. We’re helping them to understand the newer technology that is coming in and helping them to price insurance."

DECEMBER 2016 TRUCK&FLEET ME 21

EXCLUSIVE REPORT: TRANSPORTATION

THE TOP RISKS FACING TRANSPORTATION In a T&FME exclusIve, Willis ToWErs WaTson says Its new suRvey hIghlIghts the MIddle east’s tRanspoRts feaR of a dIgItal futuRe

Top ten risks across the transportation sector 1.

Increased security threat from cyber and data privacy breaches

2.

failure of critical It systems

3.

dependence on third-party suppliers

4.

third-party security vulnerability and digital supply chain resilience

5.

competition/anti-trust law scrutiny associated with M&a activity

6.

Increased complexity of regulation

7.

Inability to keep up with pace of change and technological advancement

8.

threat from new and emerging competitors

9.

over-dependence on national infrastructure

10.

new technologies obsolescing existing transport infrastructure

22 TRUCK&FLEET ME DECEMBER 2016

EXCLUSIVE REPORT: TRANSPORTATION

A

lmost two-thirds of the Middle East’s transport sector fears geopolitical instability and regulatory uncertainty more than any other megatrend affecting their businesses.

According to analyst Willis Towers Watson’s (WTW) new Navigating risk in the transportation sector report 59.4% of executives in the region consider navigating a shifting social and political landscape a constant challenge.

WTW’s polled hundreds of transport executives globally to find the top 50 risks to the transport sector which it then grouped into five major megatrends. In-depth interviews were then conducted with executives from each mode of transport – across passenger and freight services – to gain deeper insights into the challenges they face.

WTW shared with T&FME that 53.2% of those in the region’s transport sector are concerned by digital vulnerability and rapid technological advancement. Meanwhile 52.9% see changing market dynamics and business model insecurity as threats to their ability to remain competitive. Unsurprisingly, given the often multinational and cosmopolitan culture of the region’s operations, 50.3% see talent management and the complexities of a global workforce as a major challenge. A figure far higher than recorded by respondents elsewhere in the world, such as North America (27%) and Europe, Russia, the CIS and Central Asia (26%).

Creating complex operating models to deal with an increasingly interconnected world ranked lowest in the region. Only Asia and Australasia consider this more important (at 48%) with 45% of respondents in the Middle East citing this is as a major challenge.

The transportation sector’s intimate relationship with the global economy means that the risks faced by the industry are influenced by factors such as increasingly complex markets, transient workforces, disparate regulatory frameworks, the inexorable march of technology and geopolitical shifts. Far from being isolated in silos, these factors interact with each other in complex ways that are difficult to understand, let alone predict.

Transportation keeps the global economy moving. Any operational disruptions have wider consequences for society, making the management of the associated risks a priority that should transcend industry boundaries threats to their businesses over a ten-year horizon.

DECEMBER 2016 TRUCK&FLEET ME 23

EXCLUSIVE REPORT: TRANSPORTATION

In a world where the so-called Islamic State, Brexit, European migration and US elections are dominating headlines, few may find it surprising that risks from the geopolitical instability and regulatory uncertainty megatrend rate most highly among respondents. The digital vulnerability and rapid technological advancement megatrend runs a very close second, and the effects of changing market dynamics and business model insecurity rank third.

The top four rated individual risks in the geopolitical megatrend were the domain of government, regulators or the judiciary; indicating that transport providers are at least as worried about a state’s potential to disrupt their business as they are about non-state forces.

But there are also clear and influential dissenters. Sir Jeremy Greenstock, the UK’s former permanent representative at the United Nations, warns of the perils of ignoring the “fragmentation of the political identity.” He says: “Politics, the construction of states and the organisation of human affairs in structures is not behaving as we have been used to for the last 70 years.”

NO ONE SIzE fITS all While the megatrends give a broad overview of the threat landscape, the specific sector and regional data highlight the disparities that continue to make global solutions so elusive for multinational transport providers.

All transport sectors in all regions share concern about the growing reliance on thirdparties for everything from quality assurance and contract delivery to cyber resilience and the maintenance of corporate reputations. Nowhere has this risk been more clearly illustrated than with the recent bankruptcy of South Korea’s Hanjin Shipping. Its demise is a case study of the transport industry’s interdependence – impacting on alliance partners, ship lessors, port operators,

freight forwarders, insurers and cargo owners stranding more than $14 billion in goods at sea.

The single biggest individual threat across all modes of transport is the potential for cyber and data privacy breaches. Dissenters from that view argue that cyber-risk fears are fuelled by an alarmist media environment where discussion is dominated by hacking horror stories, ill-intentioned insiders and suggestions that the critical systems of most top corporations have already been compromised (the owners just don’t know yet).

But there is no denying that the skill-sets of the digital threat actors are growing, just as the transport industry’s increased reliance on thirdparties is multiplying the potential points of

entry. Clearly, an increasingly connected world requires a community response to many risks.

No company, no matter how vigilant, is an island.

Of all areas of risk, it is geopolitical instability and regulatory uncertainty that most worry transportation executives.

Even after being bombarded every day by media reports of cyber-breaches and the wholesale theft of personal data, the threats associated with digital vulnerability and related systemic failures came in second after geopolitical and regulatory risks.

It’s little wonder. Uncontrollable events such as weather, terrorism, involuntary migration, and criminal activity added $56 billion to global supply chain costs

“DRIvERlESS vEHIclES, fOR ExamPlE, wIll DRamaTIcally cHaNgE THE TRucKINg INDuSTRy, REDucINg labORRElaTED cOSTS, INcREaSINg EffIcIENcy aND SafETy, aND ExTENDINg THE OPERaTINg HOuRS fOR EacH TRucK.” 24 TRUCK&FLEET ME DECEMBER 2016

EXCLUSIVE REPORT: TRANSPORTATION

buIlDINg cybER DEfENcES managing exposure to cyber-threats within

and, with all the revenue and trade passing

an organisation’s enterprise risk framework

through the value chain, it is clearly a very

is the key to a balanced investment in

attractive environment for cyberattacks.

building resilience against this high-profile

in July alone this year, two more airlines

danger, says glyn Thoms, executive director

fell victim. in addition to being victims of

for cyber & TmT, willis Towers watson.

a direct attack, companies can be indirect casualties. Consider any organisation

Without a holistic approach to managing cyber-

with payment and settlement systems

risk, many companies will face an existential

that reconcile through a trading platform.

shock by 2020 from a ballooning cost of capital,

For an attacker seeking access to that

so board members need to stop seeing cyber

platform, going through a participating

defence as a discretionary investment.

organisation is much easier than attacking

There are parallels to be drawn between

example, Bangladesh Bank was tricked into

risk management and the emergence of

making $81 million in fraudulent payments

quality management in the 1970s. Then,

through the sWiFT payment system.

corporate boards wrestled with the costs

in 2015, according to a 2016 report from the British Standards Institution.

Increased interconnectivity and interdependency between companies – as well as leaner production and warehousing processes – mean that most supply chain disruptions these days have a serious ripple effect. The World Economic Forum found that, more than just being an inconvenient interruption to business as usual, companies caught up in such disruptions can expect an average seven per cent fall in profitability for the year.

With acts of terrorism seemingly on the rise and involuntary migration demanding more of the world’s attention, geopolitical risks have moved quickly up the industry register this year. Risks once considered “emerging” are now at corporate doorsteps.

And what were formerly million-dollar consequences are now measured in billions.

Add to this what risk experts from Londonbased Gatehouse Advisory see as the shrinking effectiveness of governments and the institutions that bind international agreements, and you have a level of uncertainty that demands a deeper, multidimensional approach to mitigation efforts than most corporations are prepared to apply.

Tim Holt, head of intelligence at Alert:24, believes many companies fall short of a fully dimensional analysis because they look at

the platform directly. Earlier this year, for

the cost of a holistic approach to cyber-

This issue is exacerbated by the ongoing

of the quality-management systems being

integration (vertical and otherwise) of the

advocated. “Who’s going to pay for it?”

value chain, where every organisation depends

they asked. of course, everybody – from

on the effectiveness of other organisations

manufacturers to consumers – already was.

at thwarting cyber-attacks. organisations

Then, after Japan rolled out the total quality

in the value chain that view cyber defence

management concept, the companies that

as discretionary effectively weaken the

invested in it were prepared, and survived.

entire value chain and other organisations

similarly, companies that today can’t show they’re managing cyber-risk within the

within it. attackers understand this. as digital and physical supply chains

enterprise risk framework will face a prohibitive

become more integrated, companies

cost of capital by 2020. Why? Because capital

have less individual control over the

markets will not be prepared to sustain the

effectiveness of their cyber-response.

huge and inevitable losses and will tie the

They become increasingly dependent

effectiveness of an organisation’s cyber-

upon the rigor and commitment of other

defence to the cost of its investment capital.

contributors to the value chain.

While cyber weaknesses create new

an effective defence thus becomes an issue

risks, they also amplify an organisation’s

for the community, a collective responsibility

existing risks. They increase the probability

where all participants in the value chain

that known risks will occur, so quantification

have a duty not only to their shareholders

of the incremental exposure is key. The

but also to and from their other partners.

question is not so much where cyber

To fulfil this responsibility, all community

risks should reside in the top ten risks an

members need robust enterprise risk

organisation faces, but to what degree cyber

frameworks that clearly identify their critical

vulnerability makes all primary risks worse.

digital assets – including data, applications,

some in the industry mistakenly believe

infrastructure and third-parties. only after

that the transportation sector is not a

this has been achieved can organisations

high-value target. The importance of the

adequately understand the specific threats they

sector to international trade is obvious

face and thus how to protect against them.

risk and the associated costs purely from an economic perspective. “Many investors and some companies give quantitative economic analysis primacy in their decision-making. It’s important not to divorce the political, economic and legal, but to recognise their intimacy.”

In a world where uncertainty creates risk, transportation firms are navigating fluid geopolitical events and regulatory requirements that are often beyond their control Yet, as daunting and complex as the current geopolitical climate may seem to the casual

DECEMBER 2016 TRUCK&FLEET ME 25

EXCLUSIVE REPORT: TRANSPORTATION

Transportation companies are concerned by compliance with increasing regulation.

observer, it is the potential for governments and market regulators to disrupt business that has senior transport executives most worried, according to the Index findings.

In a year when transport providers fought rising unit costs with industry consolidation and the formation of more commercial alliances, the three top perceived risks are: competition/ antitrust laws associated with mergers and acquisitions (the top risk for air-transport firms and second for sea); the increasing complexity of regulation (the top risk for land and third for air); and growing government interference and unpredictable political cycles (the second risk for land and third for sea).

The transportation sector, given its reliance on fossil fuels and the limited carbon-light options currently available to replace them, is comparatively vulnerable to growing public demand for cleaner business practices. But it is the permanency of regulation that draws the most suspicion from some risk experts.

Once passed, regulations rarely go away, they say. Bad rules – such as those designed to protect national interests and markets – tend to grow worse over time.

Constructive, forward-thinking regulation requires a community response between industry and regulators.

26 TRUCK&FLEET ME DECEMBER 2016

Land transport companies are worried about risks associated with “emerging global regulation: sanctions and anti-bribery compliance” (ranked third). Transportation is clearly a complex landscape, one where the perception of risk shifts dramatically according to each mode, sub-sector, and region. While most risk managers tend to focus on risks that are within their area of operational control, geopolitical risk requires a deeper analysis, one that expands beyond the elements of the traditional risk register.

Mike George, Willis Towers Watson’s Transportation Practice Leader, Risk Solutions, describes the influence of technology on the shape of markets as pervasive.

“Driverless vehicles, for example, will dramatically change the trucking industry, reducing labor-related costs, increasing efficiency and safety, and extending the operating hours for each truck.”

He adds: “Global road, rail and logistic companies clearly face a complex, interconnected risk environment, one where there are very few global solutions, and where community responses are required.

Understanding your risks and knowing how to respond provides a competitive advantage, which is why we believe risk is a path to

growth. We commissioned this Index to help our clients unlock their potential.”

Global commerce is increasingly conducted in a digitalised world where automation and the Internet of Things are transforming virtually every sector of the economy. While some modes of transportation have been slow to adopt new digital tools, the overall pace of engagement is quickly escalating. Elon Musk’s Hyperloop One envisions a not-so-distant world where people and freight are propelled through vacuum tubes close to the speed of sound. This year, Airbus’ 3D-printed subscale plane took to the skies, while passengers at Abu Dhabi airport can now travel from check-in to boarding without human contact. Rolls-Royce has unveiled plans for drone ships that will operate without a single human aboard by the end of this decade.

Drones and robots will also radically transform supply chain models. According to Deutsche Bank, it will cut the cost of delivering a typical package to just a few cents per delivery mile.

Step by step, transport companies are embracing the digital revolution. In fact, digital technology is becoming so pervasive that many businesses underestimate the extent to which they are now dependent on it. Even risk-savvy firms are struggling to map the chain of consequence that informs an effective mitigation strategy.

EXCLUSIVE REPORT: TRANSPORTATION

The pace of digitalisation is increasing and company strategies struggle to keep up.

While the commercial opportunities inherent in these technological advances are too numerous to list, so are the vulnerabilities and risks. Those that find the balance will thrive. Those that do not will find themselves left behind by changing markets and consumer expectations, or left vulnerable to the growing army of threat actors.

According to Interpol, “more and more criminals are exploiting the speed, convenience and anonymity of the internet to commit… criminal activities that know no borders… cause serious harm and pose very real threats to victims worldwide.”

Consultancy firm PwC believes the global cost of data breaches alone could exceed $2 trillion by 2019. Criminals are clearly flourishing in the unprecedented access and connectivity the internet provides.

Just as the connected business world has proved fertile ground for innovators such as Airbnb, Uber and citizen journalists, it has similarly enabled the digital underworld.

Understandably, the risks inherent in the rapid rise of the digital economy are a primary concern for transportation leaders, judging from the results of our Risk Index. Senior executives from all modes of transportation rate either cyber threats or the failure of critical IT systems as their top individual risks.

Indeed, digital vulnerability and rapid technological advancement runs a very close second to geopolitical instability and regulatory uncertainty as the overall toprated risk megatrend. Cyber is the primary risk when an aggregate rating is taken across the five regions, and across the 12 transportation subsectors. The threat of cyberattacks is the top perceived risk for companies operating in such diverse business arenas as space, rail freight and third-party logistics.

Sceptics say cyber’s primacy on most risk registers is heavily influenced by ubiquitous and alarmist media coverage. It’s important, they say, to perform a deeper assessment of a company’s vulnerabilities to differentiate the perceived threats (possible risks) from the actual risks that can impair corporate performance or reputation.

But there’s no doubting cyber’s ability to multiply and magnify the existing risks on any company register. If a company is technologically vulnerable, a cyberattack will magnify that. And cyber risks multiply for each partner taken on, for every alliance struck and for each link in the digital supply chain.

The formation of partnerships and alliances is the natural response to market downturns. When they’re formed, each partner absorbs the risks of the other, digital or otherwise. Pre-contract due diligence fosters a degree of transparency, but most risk managers agree that there is no real way to know if new partners share

“ROaD, RaIl aND lOgISTIc cOmPaNIES facE a cOmPlEx, INTERcONNEcTED RISK ENvIRONmENT.”

their company’s commitment to resiliencebuilders such as cargo and employee scrutiny, regulatory compliance or cyber-security.

The digitalised world has introduced elusive and intangible components onto the corporate risk register that are proving very hard to mitigate through simple risk-transfer solutions such as insurance, where the industry response to cybercrime is nascent. Common platforms, global tracking systems and customer interfaces may enhance cost efficiency, collective intelligence and product delivery, but they also multiply digital entry points to strategic command-and-control centres, commercially sensitive information and private third-party data. As industries become more connected, levels of resilience are increasingly dictated by the weakest link in the digital supply chain.

As such, organisations have less individual control to mitigate their digital risks. In that environment, security is a communal issue. It is a collective responsibility where every participant in every supply chain is responsible – not only to shareholders but also to their other partners.

Business crises tend to have broad technical, financial, operational and reputational consequences, so risk mitigation strategies have to be formed in the boardroom, where the full spectrum of possibility is recognised.

The responsibility for digital risk management no longer belongs in the IT suite, where technical solutions take priority over any business-continuity response. Not only is it costly to construct a technical response to a cyberattack or critical systems failure, there are simply more effective ways to limit their commercial and reputational impact.

There’s a lot to consider when building digital security strategies for an increasingly connected world. Industry leaders in this field have learned not to start with an examination of their company’s threats or risks, but instead by looking at its vulnerabilities.

Glyn Thoms, executive director for cyber & TMT at WTW says a company can achieve this by asking three questions about the failure of its digital assets: “How will it affect financial stability? How will it affect compliance with regulatory obligations?

How will it affect an organisation’s corporate reputation and consumer trust?”

These questions will put companies on the road to digital resilience and commercial opportunity.

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WhiTE papER

Drive well, you’re on camera

Pete Allen, eVP, MiX teleMAtics, looks At whAt fleet MAnAgers need to know About in-cAb Video Monitoring

A

ccording to the FMCSA (Federal Motor Carrier Safety Administration) in 2013, there were 389,000 large truck and bus crashes in the U.S., and 3,806 of these resulted in at least one fatality. The estimated total cost of these crashes was $103 billion. Clearly there is more that fleets can be doing to ensure the safety of drivers and those with whom they share the roads.

New advances in driver behaviour management solutions can significantly reduce preventable crashes and can also help managers and investigators determine the actual causes of crashes that do occur. In-cab video monitoring is one such advance that is becoming the rule, not the exception, in commercial vehicles, significantly enhancing a

28 TRUCK&FLEET ME december 2016

company’s overall fleet management strategy.

In-cab video monitoring systems typically feature both forward- and cab-facing cameras that capture video footage and sound, allowing for visual acuity at the time of an event. Most systems capture a short video clip, several seconds in length, that show what was happening outside and inside the cab when a driving event was triggered.

Driving events are configurable and typically include the following driver behaviours: corner handling, speeding, harsh acceleration and deceleration.

Some newer video-based driver behaviour solutions capture a loop of up to 72 hours of continuous trip video. This is useful particularly when video evidence is needed even when a driving event is not triggered. Fleet, safety and risk managers can retrieve video segments as needed to gain insight into what happened before and

after an event that occurred during this 72-hour period. Consider a common scenario in which one of your company’s vehicles slaps mirrors with an oncoming truck. This would not typically trigger a driving behaviour event in most systems, but with the 72-hour rolling video, managers can determine if their driver or the oncoming vehicle was at fault.

Issues such as texting or speaking on a mobile phone can also become more readily visible. If, for example, someone called in a concern about this type of activity, managers could refer back to video recordings to see what exactly happened.

Providers of video-based driver behaviour solutions offer different approaches to managing video footage. Some provide a managed service where the vendor reviews the videos for customers and determines which videos should be viewed. These videos are then sent to the customers, sometimes

WhiTE White papER paper

TV cameras on wheels Gearhouse Broadcast Gulf, the Middle Eastern arm of broadcast services provider Gearhouse Broadcast, recently launched a compact, multi-functional outside broadcast production vehicle with DSNG capabilities.

Gearhouse Broadcast Gulf’s new Iveco 70C17 is fully 3G and HD compatible and accommodates six Hitachi SK-HD1300E cameras with two optional Vislink RF cameras.

Built by Hitachi Kokusai Electric Turkey, the new vehicle measures approximately 4m (h) x 8m (l) x 2.5m (w) with an expanded fully operational total width of 4.5m and is now available to rent throughout the Middle East.

Designed for use both as a small production vehicle and in the field news gathering, Gearhouse’s van excels on productions where a larger OB truck would be impractical or cost prohibitive. The state of the art van comfortably seats a crew of seven and is available to rent across the region on a dry hire basis or complete with a crew of skilled and experienced operatives.

The seven-ton Iveco truck is fitted with a 62,000 BTU air conditioning unit, to combat the hot Middle Eastern climate.

with descriptive write-ups detailing possible concerns. Other solutions are integrated with fleet management software for evaluating driver behaviour and overall fleet efficiency.

With a fully integrated solution, video can be automatically appended to driver profiles for easy coaching, and tied to reports depicting specific triggered events. It puts the video information right where the user needs it when reviewing driving behaviour and assessing fleet risk.

It is important for fleet managers to craft and publish a video monitoring policy when their fleets adopt in-cab video monitoring – to help drivers understand how video will be captured and used (and help assuage driver fears that the videos are being used to spy on their activities). For instance, one key element in making drivers comfortable with in-cab video monitoring is your assurance that video will only

be captured when a driver is driving the vehicle.

There are four main benefits for fleets: driver coaching and training; post-crash analysis; crash prevention and reduction; and finally subrogation of insurance claims Video is useful not only for accident investigation, but also in curbing unsafe driving behaviours such as speeding, harsh acceleration, hard braking and corner handling. When managers integrate in-cab video monitoring with fleet management, they can include video in driver safety scoring reports. This can help to educate drivers about safe driving behaviour and support them in learning how to improve.

Video adds an important element to postcrash analysis, giving managers unprecedented insight (and irrefutable evidence) into what occurred in the cab and around the vehicle at the time of an incident. Videos can be viewed

The production truck features a wide choice of lenses and is equipped with a 36input switcher with 2ME channels, 48x48 video router and Imagine Communications modular products that include frame syncs, audio de-embedders and embedding facilities. A multiviewer and a Sony HDWM2000P digital recorder and player are also installed in the vehicle and an EVS XT3 live production server can be added on request.

The vehicle’s built-in rooftop satellite is a fully motorised, redundant 400w DSNG 1.5m 1+1 Ku band 2 port system that features an encoder/modulator to support SD and HD MPEG-2, MPEG-4 and AVC codecs in 4:2:0 or 4:2:2 8 or 10bit sampling rates.

To support the truck’s facilities an onboard 15KVA generator has been fitted.

december 2016 TRUCK&FLEET ME 29

White paper WhiTE papER

When video is integrated with a FMS, fleets can reduce the frequency and severity of crashes.

In-cab video monitoring has become an important element of fleets’ safety improvement strategies.

alongside a timeline, adding richer context to incident scenarios for fleet managers, many of whom have shared stories about the importance of this video footage in determining the true cause of an incident.

When video is integrated with a fleet management solution, fleets can significantly reduce the frequency and severity of crashes.

Fleet management solutions constantly monitor driving behaviour in real-time when these unsafe events are triggered. This might be a set of beeps, verbal cues, and/or visual cues. The coaching is intended to prompt drivers to self-correct their behaviour.

Most fleet management solutions also have driver-scoring reports to rank drivers based on the number and type of events triggered.

Video can be attached to triggered events listed in these reports, making it easy for managers to sit and review driving habits with specific drivers.

Coaching drivers and enforcing a company’s driving policies are key to the prevention and reduction of crashes. When video is integrated

30 TRUCK&FLEET ME december 2016

Cameras are becoming familiar

with a fleet management solution, fleets can significantly reduce the frequency and severity of crashes. This is primarily due to improved driver training. Most fleet management solutions have driver-scoring reports to rank drivers based on the number and type of events triggered.

Video can be attached to triggered events listed in these reports, making it easy for managers to sit and review driving habits with specific drivers. Coaching drivers and enforcing a company’s driving policies are key to the prevention and reduction of crashes. Beyond improving driver training, video helps companies quickly determine if they are at fault or not in the case of a crash.

This information is very useful when determining how to best handle claims, settle quickly to reduce settlement cost, or fight the claim knowing the video will exonerate the company from fault.

insURERs UndERsTanding Insurers understand the value of in-cab

tools for drivers.

video solutions, especially those integrated with a fleet management solution. They understand that fleets utilizing these tools reduce their incident rates, and they appreciate the video evidence that supports subrogate claims. This often results in the fleet receiving reduced insurance rates.

Adoption of fleet management systems is growing due to their ability to improve compliance, efficiency and safety. Integrating video into your overall fleet management strategy is an excellent way to strengthen the safety portion of the equation.

While fleets tend to be extremely safety conscious, there are still many fleets relying on older, less intuitive fleet management technology, the old 1-800 “how’s my driving” bumper stickers, or doing nothing at all to monitor unsafe driving behaviour. If yours is one of them, it’s time to explore some new options. In-cab video monitoring has become an important element of fleets’ safety improvement strategies.

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Al-MuqArrAM Auto SpAre pArtS MApS out expAnSion StrAtegy SetS SightS on globAl Footprint A-MAP’s new warehouse and office facilities are currently under construction and should be completed by early 2017.

Driven by its on-going success Al-Muqarram Auto Spare Parts Trading (A-MAP), one of the largest distributors of automotive products in the region, is poised for further expansion.

Located in the heart of Dubai’s main business trading hub, Deira, A-MAP presently operates a network of branches in Qatar, China, South Africa, Russia and USA. The company

4.9%

Shipments in europe, the middle east and Africa have dropped 4.9 percent due to increased competition in the past 12 months says Goodyear.

32 TRUCK&FLEET ME december 2016

also exports a range of automobile spare parts to several African countries.

Asad Badami, managing director, enthusiastically commented: “Our growth is not a question of chance but is a result of various resources working together.

We believe there is no limit to growth because there is no limit to hard work, imagination and evolving strategies.

Today’s markets are seamless and we as a team are determined to penetrate new territories and demonstrate the A-MAP advantage.”

Having recently launched a new development project in Jebel Ali Free Zone, A-MAP’s new warehouse and office facilities are currently under construction

and should be completed by early-2017.

Further to expanding its facilities, A-MAP has also recently opened its own distribution facilities in the Qatar and Russian markets.

In a constant search for expansion, A-MAP’s product team continue their plan to launch new brands in the aftermarket.

Achilles tyres has been added to the company’s portfolio after an agreement with the Indonesian manufacturer was signed for the distribution of its products.

The recent agreement with Sharjah Municipality to supply Solite automotive batteries for their fleet is also a significant milestone for A-MAP, adding to the list of companies, departments and institutions in its fleet portfolio. The agreement also reinforces the company’s commitment to offering ‘360-degree service’ in line with partners’ requirements and specifications.

Man TRUCK’s haLL: TyREs CRUCiaL To Road saFETy Richard Hall, regional sales manager for Man Trucks amd Buses has told an Abu Dhabi Police workshop that he would welcome the introduction and enforcement of mandatory specifications for lorries and buses.

He said that the quality of tyres and brakes, load, driver alertness and the quality of maintenance and repairs are critical to braking. He added: “We’re here to support the introduction of road transport governance regulators.”

Saudi Arabia’s leading regional trade exhibition for the automotive aftermarket industry 31 January – 2 February 2017

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Get on-board the Hyperloop One to get to Dubai from Abu Dhabi at 1,200km/h in 12 minutes.

PARTING SHOT

Why Cali doesn’T believe the hype The hyperloop one concepT could be The answer To major TransporT problems. so why has california rejecTed iT?

T

he quick jump from DP World initiative to UAEwide project (and potentially the entire GCC) that saw Hyperloop One go from interesting but limited area experiment to global statement was a stunning development last month.

For those with their heads down in the US elections or slow on the uptake, Hyperloop One is a technological marvel that could see people travel through tubes at speeds of up to 1,200km sitting in autonomous boxes that can take to the road until they reach the door of their destination. It’ll do Abu Dhabi to Dubai in 12 minutes and a further 40 minutes to get to Riyadh.

The words probably don’t do it justice, but if you have a spare moment, do yourself a favour and venture online to see the two minute video that shows how it will work in practice. Albeit through the magic of CGI. The Hyperloop was the brainchild of Elon Musk before he set it free to competing commercial enterprises who are now on a global roadshow to raise funding and interest. DP World

36 TRUCK&FLEET ME DECEMBER 2016

placed $50 million into Hyperloop One’s funding recently to help it reach its target of $250 million, and where it scores over its rivals is its concept of driving the passenger from door-to-door, and thus solving the major problem of the last mile (where the passenger needs to exit a vehicle at a station to get to their final destination). The project in the UAE will now move to a pre-feasibility study before the system is tested on a 20km-30km track.

Progress to that stage will mark a huge leap for Hyperloop One. To date, the only working section of track accommodating (partially) constructed versions of the pods is a 1.6km course in Nevada. The next jump to a working track with passengers and pods that can handle cargo and passengers seems massive on paper.

A potential opening in three to five years seems highly unlikely at first, however, in an interview with Ars Technica, Gil Tal of the Institute of Transportation Studies at the University of California, last month said the technological barriers are not that hard to overcome. In terms of its financials he was less than enthusiastic: “I don’t know if Hyperloop actually makes sense economically. Yes we can fly from London to New York in four hours,

but it makes no economical sense. Even though some people would be happy to pay five times or 10 times for a flight, it’s just not enough.”

California has flirted with the idea of turning to Hyperloop-based technology ever since Musk claimed he could build a San Francisco to Los Angeles line for $6 billion, a tenth of the cost of a bullet train. However feasibility studies suggest the cost could be somewhere nearer to the more traditional option, possibly more, throwing into relief unanswered questions regarding safety (what happens if a truck, say, collides with the system), capacity, litigation, and whether there is real political support.

A recent NASA report also concluded that engineering issues such as materials and ride comfort are yet to be fully understood (one writer described it as a potential vomit comet).

It is unsurprising, then, that it will be up to countries such as the UAE to pursue a technology that is now considered a nonstarter in the US. It will be up to them to see if the barriers facing Hyperloop can be overcome. For a brilliant vision of rapid future look no further than Hyperloop but perhaps it is best not to expect to see it soon.

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