Truck & Fleet ME April 2016

call of duty how ams manages fleets in emerging markets

027 AprIL 2016

MIDDLE EAST PUBLICATION LICENSED BY INTERNATIONAL MEDIA PRODUCTION ZONE, DUBAI TECHNOLOGY AND MEDIA FREE ZONE AUTHORITY

the brazilian connection gargash unveils the atego unlocking iran opportunities in the after-market

building capacity

spurred by rising demand, truck bodybuilders are investing in increasing production

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08 CONTENTS

A supplement of Cmme

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FOuNDER DomInIc De SouSA GROuP CEO nADeem HooD PuBLISHING DIRECTOR RAZ ISLAm raz.islam@cpimediagroup.com +971 4 375 5483

34

emerging opportunities Across the GCC, the announcement that sanctions were being lifted in Iran certainly came as big news.

International sanctions in the past few years have meant that the Islamic Republic has had to become largely self-sufficient in manufacturing vehicles. The opening up of the market, however,

NETWORK

06 / new DeAler for nissAn Nissan appoints Petromin as its second dealer in Saudi Arabia.

has led to several big automotive names making a beeline for the country as they seek to begin or resume business activities there, typically through joint ventures with local producers.

08 / CAll of DutY AMS CEO Andrew Robertson discusses how the company operates in tough markets.

16 / piCkup power An overview of the top-selling commercial and premium options in the pickup segment.

22 / brAziliAn ConneCtion Gargash Enterprises unveils new light- and medium-duty trucks for distribution.

NEW vEhiCLEs

34 / sCAniA’s new offering Swedish manufacturer introduces the Interlink High-Decker coach.

36 / volvo geArs up

aDVerTisiNG 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

JuNIOR GRAPHIC DESIGNER PeRcIVAL mAnALAYSAY

the theme of the Automechanika Network event last month, held ahead of the exhibition in May. are also keenly eyeing opportunities in Africa.

Truck bodybuilders, in particular, have their sights set on East Africa as they look to venture beyond the GCC. We sat down with a few to While many African markets may not be easy to operate in, one Dubai-based company has developed expertise working across the continent,

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

providing fleet management services to United

DiGiTaL

Nations and military forces. Andrew Robertson,

WEB DEVELOPER moHAmmAD AwAIS

CEO of Automotive Management Services, discusses the company’s operations on p. 8.

PubLisheD by

We’ll certainly be keen on learning about other companies that have plans for increasing hope to see you at Automechanika next month!

Registered at ImPZ Po Box 13700 Dubai, uAe Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com

Volvo Trucks has launched the I-Shift with crawler gears for heavy loads.

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paRTiNg shOT

© copyright 2016 cPI. All rights reserved

40 / unloCking irAn Post-sanctions Iran offers lucrative opportunities for the automotive after-market.

SuB EDITOR AeLReD DoYLe

the automotive after-market as well, which was

their regional footprint. In the meantime, we

WORKshOp

DEPuTY EDITOR JeRuSHA SequeIRA jerusha.sequeira@cpimediagroup.com +971 4 375 5477

ART DIRECTOR SImon coBon

learn more about their plans on p. 26.

pROdUCT LaUNCh

CONSuLTANT EDITOR GAVIn DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480

This no doubt creates lucrative opportunities for

Apart from Iran, many firms in the UAE

ROUNd-Up

eDiTOriaL

According to estimates from Frost & Sullivan, 2.3 million vehicles will be sold in Iran by 2020.

iNTERviEW

EDITORIAL DIRECTOR VIJAYA cHeRIAn vijaya.cherian@cpimediagroup.com +971 4 375 5472

Jerusha sequeira DeputY 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.

APRIL 2016 TRUCK&FLEET ME 1

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EDITOR'S CHOICE

READERS' COMMENTS

Foster + Partners, BIG

I completely agree with Rhys Steel (‘UAE storms point to weak spots in building design, and attitudes’). Many buildings, roads and street furniture features in the UAE are just not built for the freak weather – and the recent storms show that they need to be. There’s a clear need for an overhaul of regulation the country over, and also for better safety standards.

Why were window-cleaning cradles apparently left unsecured and hanging from high-rise buildings, and so seen swinging dangerously with the winds?

and Grimshaw Architects

Name withheld, via email

UAE storms bring lessons for construction sector

“Buildings in the UAE have to be built to withstand the elements,” says expert

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Saudi Arabia’s 1km Jeddah Tower 20% complete

Tower to overtake Dubai’s Burj Khalifa as world’s tallest building

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Dubai Expo 2020 pavilions: Winning architects named

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In pictures: Dubai Expo 2020 pavilion designs Three architects’ designs were chosen in an international competition.

See photo galleries at: meconstructionnews.com/photos

win design competition READER POLL

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Is your company studying the Iran market?

Saudi salary delays: Foreign powers demand action

52% 26%

France, the Philippines and Bangladesh taking up case of unpaid wages

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‘World’s largest umbrella’ under construction in

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Folding structure at Grand

UAE storms – impact on buildings, infrastructure A collection of videos from social media sites.

Mosque will provide shade

See videos at: meconstructionnews.com/videos

Mecca, Saudi Arabia

Yes: Iran’s construction sector marks a big opportunity

Yes: But deals will come in slowly

2%

20%

No: There are too few contracts available

No: The market is still too difficult to enter

Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com 2 TRUCK&FLEET ME APRIL 2016

NETWORK

NETWORK 04 16

YOUR MONTHLY GUIDE TO THE MIDDLE EAST’S Truck anD fleeT operaTor neTwork

Abdul Latif Jameel Motors will be expanding its network in new cities.

Abdul lAtif JAmeel to invest $2bn in sAudi by 2021 Saudi conglomerate Abdul Latif Jameel has announced plans to invest $2 billion in the kingdom over the next five years, with $500 million earmarked for 2016.

The new investments are part of longterm expansion plans in Saudi Arabia, according to the company, which handles the distribution of Toyota vehicles in the market through its automotive arm.

“Saudi Arabia is an evolving economy and our new investments are based on what we see as continued opportunity and potential for future growth,” said Mohammed Abdul Latif Jameel, chairman of the board and CEO of Abdul Latif Jameel.

The announced investments are being

funded internally by the firm, and are expected to create thousands of new jobs in the kingdom across the automotive, real estate, logistics and financial services sectors.

Abdul Latif Jameel Motors will be expanding its network into new cities and increasing its total service capacity for its Toyota-related brands. The company will develop new autologistics centres, in addition to upgrading existing retail and service facilities.

Moreover, Abdul Latif Jameel will invest in a new 40,000sqm energy-efficient headquarters in Jeddah, with capacity for up to 2,500 employees. The company will also complete the construction of the world’s largest Lexus retail facility in Riyadh soon, it said.

UAE’S FAST RENT A CAR EYES EGYpT FOR ExpANSION The UAE’s Fast Rent A Car is considering expanding operations to Egypt as part of a long-term strategy.

The rental firm, celebrating its 25th year of operations, already operates 100 buses in Egypt, group CEO Ahmed Abood said. Fast Rent A Car is planning to increase this number to 500 buses within the next 36 months, and is also looking at expanding its car rental operations into the North African nation, he noted.

Within the GCC, the company is looking at Qatar as a potential opportunity, executives said.

In addition, Fast Rent A Car is looking to expand within the Emirates with an AED60 million ($16.3m) investment in new locations and a ‘super centre’ which will house service and washing facilities and a full body repair workshop. The company is also expected to announce branch openings in 10 new locations by 2020.

Daimler Trucks plans To invesT arounD half a bill five years in connecTing iTs Trucks anD creaTing n 4 TRUCK&FLEET ME

APRIL 2016

NETWORK

moTorciTy Delivers hino Trucks in bahrain Bahrain’s Motorcity has delivered two Hino 700 series heavy-duty trucks with automated manual transmission to logistics firm Gulf Agency Company. The heavy-duty Hino 700 series is suitable for various applications such as crane and cargo body configurations, tankers and so on, offering a hauling capacity of 100t.

NissaN appOiNTs sECONd saUdi dEaLER

Nissan has appointed Saudi Arabia’s Petromin Corporation as its new dealer in the kingdom, the Japanese manufacturer announced.

Operating in Saudi Arabia for over 40 years, Petromin offers a range of automotive services including car dealerships, car

servicing, fuel retailing and lubricants. The company will join Alissa as Nissan’s second Saudi dealer.

“We could not be more excited about working alongside Nissan,” said Samir Nawar, CEO of Petromin. “The addition of car showrooms and workshops to our vast network of service facilities is perfectly placed to provide Nissan owners with the kind of customer service they expect.”

Nissan sold a total of 61,806 vehicles in Saudi Arabia in 2014, a market share of 7.2%.

In the GCC, Nissan recorded an 18.1% sales increase in the same year.

The new interchange is part of a wider project to upgrade the Al Shindagha road network.

Dubai’s rTa To ease Traffic in karama Dubai’s Roads and Transport Authority (RTA) has awarded an AED 611 million ($166.4m) contract to build an interchange to ease traffic congestion in the bustling locality of Karama.

The Sheikh Rashid Road-Sheikh Khalifa bin Zayed Road Interchange is to be ready by the end of 2017, the authority said.

The new interchange is part of a wider project to upgrade the Al Shindagha road network. It is situated at the intersection between Sheikh Khalifa bin Zayed Road and Sheikh Rashid Road, north-bound towards Al Shindagha.

The project encompasses the construction of a bridge on Sheikh Khalifa bin Zayed Road and a tunnel on Sheikh Rashid Road, as well as a bridge stretching from Umm Hurair Road in the direction of Sheikh Rashid Road.

FUSO pRODUCTION bEGINS IN KENYA Daimler Trucks Asia, in association with its Kenyan partners Simba Colt and Associated Vehicles Assemblers (AVA), has begun completely knocked down (CKD) production of the new Fuso range in Kenya. Fuso vehicles will be produced at the AVA assembly plant in Mombasa.

“We have been successfully exporting completely built-up all-new robust Fuso vehicles from India for almost three years – and now we enter the next stage with the assembly of vehicles in Africa, for Africa,” said Erich Nesselhauf, managing director and CEO, Daimler India Commercial Vehicles.

Simba Colt Motors is one of Fuso’s oldest distributors worldwide, and has been a partner of the brand for 48 years. AVA has been involved in the assembly of Fuso products imported from Japan since 1982.

lion euros ($559.6m) over The nexT ew services anD DigiTal soluTions.

The interchange will result in smoother traffic flow from the Trade Centre R/A to the intersection of Khalifa bin Zayed Road with Al Kuwait Road. where a two-lane bridge will be constructed in each direction.

In addition, the project includes the construction of a tunnel on Sheikh Rashid Road in the direction of the Sheikh Rashid Road-Al Mankhool Road intersection, comprising four lanes in each direction.

It will also involve the construction of a signalised junction underneath the bridge, while ensuring free traffic movement through a one-lane flyover stretching from Umm Hurair Road to Sheikh Rashid Road.

“The RTA has set out a comprehensive plan for smooth traffic flow at traffic diversions,” said RTA chairman Mattar Al Tayer. “The same number of lanes will be maintained in the diversion to avoid any negative impacts on the normal traffic flow.”

APRIL 2016 TRUCK&FLEET ME 5

NETWORK

europe to host world’s first crossborder truck plAtooning initiAtive

Volvo Trucks is one of the six European manufacturers taking part in the challenge.

Europe is set to host the world’s first crossborder truck platooning initiative involving six truck manufacturers, according to the European Automobile Manufacturers Association (ACEA).

The six European truck-makers will bring platoons of semi-automated trucks to public roads, crossing borders from various cities to reach their final destination of the Port of Rotterdam on April 6.

“The overall objective of this European Truck Platooning Challenge is to accelerate

the introduction of truck platoons by putting the subject high on the agenda of EU policy-makers,” the ACEA said.

The challenge is organised by the Netherlands and fosters collaboration between truck manufacturers, EU member states, logistics service providers, road operators, research institutes and government entities.

Truck platooning refers to the linking of two or more trucks in a convoy, such that

the vehicles closely follow each other at a fixed, close distance by using connectivity technology and automated driving support systems. The truck heading the platoon acts as the leader, with the vehicles behind reacting and adapting to changes in its movement.

The practice reduces air drag and can potentially reduce CO2 emissions by up to 10%.

The manufacturers participating in the challenge are DAF Trucks, Daimler Trucks, Iveco, MAN Truck & Bus, Scania and Volvo Group.

TELEMATICS TO ‘SHAKE Up’ AUTO INSURANCE INDUSTRY – FITCH The motor insurance industry faces a “significant shake-up” from the growing usage of telematics or vehicle-monitoring systems, particularly in the UK where take-up could grow rapidly, according to Fitch Ratings.

UK insurer Direct Line recently revealed that it had doubled the number of telematics policies sold in a year.

These policies, which involve the use of equipment to monitor driving behaviour, allow the insurer to more accurately

6 TRUCK&FLEET ME

APRIL 2016

The UK has some of the highest insurance premiums for young drivers.

assess risk for individual policyholders.

While overall telematics penetration remains low at about 2% of Direct Line’s motor insurance policies, it is around 60% for drivers under 21 years of age, reflecting the significant discount these policies can offer.

The UK has some of the highest premiums for young drivers, as well as high rates of fraudulent insurance claims, which means it could be one of the biggest adopters of telematics, Fitch Ratings noted.

NETWORK

MaN TO sUppLy 500 TRUCKs iN aUsTRia Germany’s MAN Truck & Bus has bagged a large order from Austria to supply 500 TGX trucks to Salzburgbased Quehenberger Logistics.

The trucks will come in three versions, MAN said: tractor units with a combination of leaf springs and air suspension, tractor units with full air suspension, and threeaxle vehicles with container swap body. The units will be delivered in 2016 and 2017.

All the vehicles are equipped to run on

biodiesel, and will be run on an operating lease scheme encompassing a maintenance

contract and a return agreement. The duration of use is 36 months with 150,000 km a year.

IvECO STRALIS AppEARS IN Batman v Superman The Iveco Stralis Hi-Way made its onscreen debut in the highly anticipated Batman v Superman: Dawn of Justice film released last month.

The inclusion of the heavy-duty truck is part of a co-branded partnership between CNH Industrial sister company Fiat Chrysler Automobiles (FCA US LLC) and Warner Bros. Pictures.

CNH Industrial partnered with Fiat Chrysler Automobiles North America to provide vehicles for the film, which stars Ben Affleck and Henry Cavill. The Stralis Hi-Way makes its appearance in a high-speed chase scene alongside the iconic Batmobile.

In addition to the Iveco Stralis Hi-Way, Batman v Superman’s fleet includes Jeep, Dodge, Chrysler, FIAT, Alfa Romeo and Maserati vehicles.

CNH Industrial partnered with FCA to provide vehicles for the film.

dRivERLEss TRUCKs TO bE TEsTEd ON UK ROads sOON Driverless trucks will soon be put to the test in the UK, with the Department of Transport saying the country will “lead the way” in testing heavy vehicle platoons.

According to the Times, the driverless truck platooning trials will take place on the M6 motorway in Cumbria later this year.

The plans could result in platoons of up to 10 computer-controlled trucks being driven metres apart from each other.

Some have expressed scepticism about the success of platooning in the UK. Edmund King, president of the Automobile

Association (AA), said that while such a scheme might work in other countries, it may not be suitable for the UK. This is because British motorways tend to have more entrances and exits than roads elsewhere.

“It’s very difficult to have a 44-tonne 10-lorry platoon, because other vehicles need to get past the platoon to enter or exit the road,” he said, quoted by the BBC. The “only feasible place” to conduct such a trial would be the M6, north of Preston towards Scotland, he said, because it tends to have less traffic and fewer entrances and exits.

APRIL 2016 TRUCK&FLEET ME 7

IntervIew

CaLL of DUTy

Automotive mAnAgement ServiceS SpeciAliSeS in mAnAging fleetS in conflict zoneS And developing countrieS. Truck&FleeT Me SitS down with ceo Andrew robertSon

I

've been around trucks since I was four years old,” says Andrew Robertson, the affable CEO of Dubai-headquartered Automotive Management Services (AMS), when asked how his career in fleet management came about.

Fondly recollecting his childhood in Scotland, Robertson says his grandfather owned a trucking business, ensuring his early exposure to the field. “I left Scotland when I was 21 and worked in various countries around the world, always in the fleet and equipment sector and transport management.”

Robertson’s career has given him a considerable amount of experience working

8 TRUCK&FLEET ME APRIL 2016

with militaries, particularly with American and British forces. This track record is no doubt invaluable to his current role heading AMS, a Danish company specialising in providing fleet management solutions for vehicles and equipment in emerging markets, mainly Central Asia, Africa and the Middle East.

AMS, which has its head office in Dubai’s Jumeirah Lake Towers, counts among its clients the US government, the US army and the United Nations. The company provides a range of fleet management and training services to military, government and UN fleets in developing countries, playing a crucial role in their operations.

Among its main markets is Afghanistan, where it caters to the Afghan Ministry of Defence, the Ministry of Interior and the US government. “We currently maintain in excess of 55,000 vehicles for those three customers.

We also work with the United Nations and NATO, so we have quite a diverse fleet,” Robertson says in an interview in his office.

Africa is also an important territory for AMS: the company is active in Liberia, Sierra Leone, Somalia and Uganda. While these are its main markets in the continent, field support representatives are deployed all over, the chief executive says. Many of AMS’s African clients are from the mining sector, and the firm also

IntervIew

provides training and technical support to some military forces too, such as the Kenyan army.

Meanwhile in Iraq, AMS works with the UN and US military forces, in addition to providing ground support at airfields. The primary challenge of operating in Iraq is a large degree of bureaucracy, Robertson says, noting that AMS has managed to steer clear of Daesh-controlled territories and operates primarily in airfields and ports.

As part of its work supporting UN missions in various locations, the company typically provides driver and operator training services, covering everything from preventive maintenance to servicing and defensive driver training. “A lot of the drivers in those

locations have been driving for 30 years, but they don’t understand how to efficiently look after and operate a vehicle. Fuel economy is something that’s not even in their vocabulary.”

Given its experience operating in troubled zones, AMS has amassed expertise in supporting armoured vehicle fleets and catering to their unique needs – most notably premium uptime and service, Robertson says.

“If you’ve got an armoured personnel carrier that’s carrying soldiers in a war-torn environment, they can't afford for that vehicle to break down because it's not been serviced, or because there's a transmission fault. The same thing could go for a fire-fighting vehicle

in an airfield. It breaks down one time, it’s one time too many,” he emphasises.

“That's really where our service and our quality comes in. We'll never be the cheapest provider, but we will offer the best value and reliability. And often in the places we operate, those two things don't come together.”

Elaborating, he notes that the only options for armoured fleets are local workshops which offer more reactive maintenance, or the much costlier option, in-house maintenance for the military fleets. “We're in the middle, and the best value. We run pretty much 95% local employees.”

Local recruitment is a major element of AMS’ operations – the company recruits people

APRIL 2016 TRUCK&FLEET ME 9

IntervIew

regardless of how large a fleet is, the core fleet management process is the same, robertson says.

“If you've got an armoured personnel carrIer that's carryIng soldIers In a war-torn envIronment, they can't afford for that vehIcle to break down. It breaks down one tIme, It’s one tIme too many” 10 TRUCK&FLEET ME APRIL 2016

in the markets it works in and trains them internally. People with the necessary technical skills are fairly easy to come by, Robertson says.

“What they don't have is the fundamentals.

They've never had the theoretical part.”

Thus, the company typically puts its staff on a four-year training programme, during which they are given both hands-on and theoretical training.

When asked about the distinctive needs of armoured fleets, Robertson notes that training needs to be adapted for them, especially since these are normal vehicles modified for armoured applications. For instance, a Land Cruiser which has been modified into an armoured vehicle corners very differently.

“It won't corner like an ordinary SUV. The brake systems are often upgraded, so your stopping distances are greatly increased.”

Hence it’s important to understand how to handle such vehicles, and also how the vehicles react in different conditions, such as in rain or on ice, he explains. workIng In tough markets Operating in markets that most companies are hesitant to enter brings its fair share of difficulties.

Cultural integration is the biggest challenge, and being culturally sensitive is a large part of getting the job done. “If you're going to a colonel or a senior manager who's been in the industry for over 20 years, to get the point across that he's not been doing something properly or he needs to get more in touch with modern technology, it's very sensitive in any culture. There’s a way of delivering it.”

The challenge therefore is to find personnel

usIng local talent Through its significant reliance on local workforces, AMS is a large employer in many of the markets it currently functions in. “Often, we're one of the only companies that is providing technical training to the youth of those countries.

In Afghanistan, we're probably among the top five largest employers. We're one of the only companies that I know of

that provides an apprenticeship training programme over four years. We do that both in West Africa and Afghanistan. It's important.”

In his career, robertson has often come across mechanics who began working when they were as young as eight, he says. While they’re often technically skilled, many have never had any formal training.

Observing their transformation after they go through the training programme is hugely motivational, he says.

“It always inspires me when we go to Afghanistan or other countries and the mechanics are so proud to show us what they've done. It's nice to see that we've given people the opportunity to do something that makes them proud.”

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IntervIew

Maintaining strong relat ions with local partners is a must , robertson says .

12 TRUCK&FLEET ME APRIL 2016

with the ideal combination of technical skills and cultural sensitivity. “It's all about having the right people in the right job for the right reason. We have a really good team, and that's something we're very proud of.”

Another issue is the logistics of sending staff to various locations, which involves procuring visas in a timely manner.

“We may have a client that's got a piece of equipment down or they need somebody to conduct training, and it can't take two or three months to get visas.” This is solved by having a capable HR and business administration team in place, he says.

In countries affected by war or conflict, security is naturally a major consideration.

So how does AMS ensure the safety of its employees and field support representatives?

The firm relies on external consultants and deals with security advisory companies in the UAE for advice, Robertson explains. AMS also uses its local partner network and consults

local partners on the security situation, where employees should stay and what mode of transport is best – armoured with a security detail or low-key with a local driver, for instance.

Employees typically wear local clothing and work to blend in, he explains. “Nine times out of ten that is the approach we take, cultural integration. We respect the culture of the country, we respect the clients, which is something that makes us very different from most.”

Maintaining strong relations with local partners is obviously a must to working in difficult markets, Robertson points out. “It's not through a contract that our partners are loyal to us and deliver. They're our friends, it's not just business as far as they're concerned.”

“They're often very proud for us to come and share our knowledge and capabilities with them, but we're also there to learn from them. We want to understand their country, how they do things, and why they operate the way they do. It's a two-way street.”

IntervIew

managIng large fleets

AMS relies on external consultants and local partners for security advice before sending staff overseas.

new opportunItIes As violence and terrorism destabilises much of MENA, market conditions are invariably getting tougher. This is an opportunity for AMS, with increased demand for its services in the region. “This is because large fleet operators are looking to extend the lifespan of their fleets, so they need to focus more on the maintenance and preventive maintenance side. So in many ways, challenging market conditions are positive for us.”

In Syria, for instance, he expects demand from embassies and the UN for AMS’ services when the situation improves.

Dealership operations are another area where the company is looking to grow. AMS currently represents Scania in Liberia and Volvo Construction Equipment in Kazakhstan. Central Asia in particular has a lot of potential for dealership opportunities, Robertson says.

“It's a very harsh and challenging

market [with] extreme cold, extreme distances and landlocked countries. That is the kind of market that AMS excels in. We see a lot of potential and a lot of growth, with both the Volvo CE brand and the Kazakh and Central Asian market.”

For now, however, AMS does not plan to expand out of its core region of the Middle East, Africa and Central Asia.

“It's a very diverse and culturally mixed region, and that's what we like. That's who we are as a company as well.”

When asked about plans for the coming year, Robertson lists growing market share for Volvo CE in Kazakhstan as one of the main goals. In Afghanistan, the company plans to continue lending support to the US government and various Afghan ministries. “[In] Africa, we’re looking to grow market share for Scania in Liberia and continue supporting the UN in South Sudan, Uganda and Somalia.”

AMS’ work for government clients means that it often handles fleets of a staggering size, such as 30,000 pieces of equipment for the Ministry of the Interior in Afghanistan.

But whether the size of the fleet is 30 or 30,000, the process of managing it is essentially the same, robertson says.

“The vehicle enters the maintenance and the fleet management process, it goes through every step and then comes out through the other side. That’s really what makes it work. each person that’s involved in our process, he knows the area that he’s operating in and he knows exactly what he's got to do.”

AMS often

develops bespoke systems for large fleets. The Afghan Ministry of the Interior, for instance, needed a system in Dari and english, and the company had to consolidate 16 databases into one.

A team in Dubai develops the system and puts it up on to the portal so the client can review the data, whether he’s in kabul or Washington, Dc, robertson says. “He can actually see how many vehicles were repaired for the day, and he can see the operational readiness of the fleet.”

“That's something that's pretty unique in countries like Afghanistan and Iraq.

They're not used to having that integration of the workshop site and the data.”

“It's not through a contract that our partners are loyal to us and delIver. they're our frIends, It's not just busIness as far as they're concerned” APRIL 2016 TRUCK&FLEET ME 13

Feature FEaTURE

Ioannis Vrantzoglou, managing director, Schaeffler Middle East.

READY TO ROLL

With Schaeffler keen on Stepping up itS Middle eaSt preSence, Md ioanniS Vrantzoglou diScuSSeS obStacleS in the region and future planS 14 TRUCK&FLEET ME APRIL 2016

Feature

W

hether it’s passenger cars, vans or heavy trucks, the Middle East loves its vehicles and the region has long been lucrative for the automotive industry. The growing demand for vehicles in the region bodes well for the aftermarket segment too, as Germany’s Schaeffler – one of the biggest names in the industry – can attest.

Schaeffler, which specialises in engineering systems and components for automotive, aerospace and industrial applications, has been on a steady growth path in the region.

On the automotive side, its products are used in both passenger and commercial vehicles produced by major manufacturers like Volkswagen, BMW, Audi, DAF, Peugeot, Mercedes-Benz, MAN and so on.

2015 was a good year for the German brand in the Middle East, with its automotive business growing 30% more than the previous year. Accordingly, the company is looking at expanding its presence in the region, says Schaeffler Middle East managing director Ioannis Vrantzoglou.

Under its expansion strategy, Schaeffler – which has its regional headquarters in Dubai – is looking at setting up subsidiaries around MENA. “We have one in Egypt, one in Pakistan, and we are thinking of setting up a subsidiary in Saudi Arabia, and one in Iran,” Vrantzoglou says.

However, the region’s geopolitical issues certainly pose a fair share of challenges to doing business, he says, admitting that the security situation in much of the territory has him concerned. “I am responsible for 17-18 countries from Egypt to Pakistan, and we cannot visit more than half of them. Unfortunately, with the political developments we have every day, I don't see a big improvement in this. This worries us.”

While most residents of the GCC feel the pinch of the rising cost of living, inflation can make it harder for companies too. The rising cost of doing business, particularly in Dubai, is becoming a challenge, Vrantzoglou says.

Schaeffler does its best to take care of its employees, providing housing and transport allowances, health insurance and the like. This, however, is growing increasingly tough. “We see our costs are increasing every year. If it's not [feasible] for us anymore, then we have to move somewhere else. This is something which I hope the wise government here in Dubai

and the UAE will take into consideration.”

Despite the bumps in the road, the automotive after-market in the Middle East has been lucrative for Schaeffler, and the company has been recording 10-15% growth every year. The firm therefore has its sights set on expansion and is looking at stepping up its warehousing capacity from 2,500sqm to 4,500sqm.

In addition, Schaeffler is also looking at enhancing its involvement in the aerospace industry. The company will soon have a service station for airplane engines here for Emirates, Etihad and other airlines. The bearings inside most airplane engines are supplied

by FAG Aerospace, owned by Schaeffler.

“WE WORkEd maNy yEaRs WITH IRaN, buT sTOPPEd bEcausE OF THE EmbaRGO. NOW THE EmbaRGO Is LIFTEd, sO WE aRE sTaRTING aGaIN” IN THE REGION, FOR THE REGION Although the automotive side of the business was positive for Schaeffler last year, growth on the industrial side was a bit slower, Vrantzoglou says. The industrial part of Schaeffler’s business is entirely focused on bearings, ranging from very small bearings – used in dentistry tools, for instance – to bearings as large as 20m in diameter, for power plants and industrial facilities.

“The industrial business was almost breakeven, because there are not that many industrial projects at the moment.” Nevertheless, the company is satisfied with its 2015 performance and optimistic about the year ahead.

A key driving factor behind the group’s

success has been its principle of “in the region, for the region”, Vrantzoglou says. In addition, the Schaeffler team is culturally diverse, enabling the company to easily interact with everyone from workshop staff to top management, he is keen to point out.

“We are always investing in increasing our facilities, and we have people travelling all around the area giving marketing, sales and technical support on-site.”

An important part of doing business overseas is finding reliable local partners.

The process of finding distributors entailed a good deal of travel, analysis and market research before the brand could find partners in different countries.

As far as Schaeffler’s distribution network goes, the company does not have any exclusivity arrangements with distributors, Vrantzoglou notes. “In every country we have at least two distributors, without exclusivity.”

With the Iranian market now opening up, the company is looking at resuming business activities there. As sanctions are lifted, Schaeffler is planning to open an office in Iran staffed by three to four people, for both automotive and industrial activities.

“Iran is the only country in the Middle East which has an automotive industry producing 1.3 million cars a year. We worked many years with Iran, but stopped because of the embargo. Now the embargo is lifted, so we are starting again.”

IN THE PIPELINE When asked what new products Schaeffler will be introducing in the region, Vrantzoglou notes the brand will be launching a new generation of bearings from Korea – manufactured by Schaeffler-owned KBC. “We are also bringing a new generation of LuK clutches for Mercedes-Benz trucks,” he says.

In addition, the company has introduced new electronics systems for passenger cars, which will come soon to the UAE. “It's a continuous process because all these new products which are entering markets anywhere in the world, we bring them here. We don't wait long.”

For commercial vehicles too, Schaeffler is introducing new electronic and mechanical systems to help vehicle manufacturers increase fuel efficiency and reduce emissions. “These two aspects are maybe not as important in the Middle East at the moment, but in Europe they are the alpha and omega of all activities of the manufacturers.”

APRIL 2016 TRUCK&FLEET ME 15

Round-up

PICKUP POWER

Truck&FleeT Me looks at some of the most popular commercial and premium pickup trucks in the middle east TOYOTA HILUX A popular choice among fleet owners and businesses, the Hilux, launched in 1968, has long been a mainstay of the commercial pickup truck segment. Al-Futtaim Motors, the UAE dealer for Toyota, introduced the eighth generation of the truck last year, featuring tougher styling, a newly developed frame structure and better core performance. “The first Hilux was brought to the UAE forty years ago, and since then it has sold more than 150,000 units to date, becoming one of the most relied upon commercial vehicles in the country,� says Jon Williams, MD of Al-Futtaim Motors.

16 TRUCK&FLEET ME APRIL 2016

Available in single and double cabins, the all-new 2016 Hilux comes in 2.0L and 2.7L petrol engines or a 2.4L diesel engine, and in 4WD and 2WD choices.

The 2016 version also features a six-speed automatic transmission coupled to a newly developed frame. The new transmission translates into enhanced fuel economy figures of up to 15% over the last generation, depending on the choice of petrol or diesel engines, according to the manufacturer.

The 2.4L diesel engine is available with a sixspeed manual transmission delivering 399Nm of

torque at 1,600-2,000rpm and 147hp at 360rpm.

In addition, the new Hilux has improved ride comfort and driveability, thanks to a newly developed frame and redesigned suspension, with longer leaf springs and forward/rear facing shock absorbers.

The Hilux retains its workhorse status with a redesigned tougher rear suspension to enhance towing capacity. Structure panels on the deck have also been strengthened with reinforcements added underneath, while the deck floor ribs have been redesigned to better resist deformation during loading/unloading of heavy payloads.

Round-up

NISSAN PATROL PICKUP Perhaps rivalled in popularity only by Toyota’s Land Cruiser, the Nissan Patrol is one of the GCC’s favourite SUVs and the Japanese brand’s offering in the LCV segment.

Under the hood, the pickup packs a 4.8L inline-6 engine that churns out 280hp and 451Nm of torque. It comes with a choice of

five-speed manual and automatic transmission.

Built for hauling cargo, the Patrol pickup comes with a towing capacity of 2,500kg. When 4x4 is needed, a transfer case allows shifting from 2WD to 4WD High and Low, and it comes with a rear differential lock as standard.

Tests conducted in Saudi Arabia and

the UAE, combined with input from GCC customers, have resulted in a host of model improvements to the vehicle over the years.

The testing and research process began in 2010, Nissan says. Findings from the tests were incorporated in product development, and in 2012 the Patrol, with a 4.8L engine with coil suspension, was launched across the GCC. In 2013, a 4.8L engine version with leaf springs was unveiled.

“The Patrol name has a storied reputation in the GCC countries and Nissan will ensure that continues,” says Abdulilah Wazni, GM – Marketing & Corporate Communications at Nissan Middle East.

“The upgrades to the Patrol pickup are a direct result of us listening to our customers.

By gathering and evaluating their feedback in the Gulf, we are able to tailor the vehicle to requirements of the region.”

Other upgrades incorporated into the vehicle include the addition of a seat lifter, flat rear step bumper, reinforced frame, tyre cover and increased fuel sub-tank capacity from 80L to 87L for longer drives.

The seat lifter results in increased visibility for the driver, especially in the desert. This has been introduced after direct feedback from customers in the region.

Future truck: Mercedes-Benz’s pickup plans last year, Daimler AG announced

manufacturer’s cooperation with

plans to launch the first Mercedes-

the renault-Nissan Alliance.

Benz pickup truck by the end of

The Mercedes-Benz pickup will

the decade, as it looks to expand

share some of its architecture with

its product range into the lucrative

the new Nissan NP300, but will be

midsize pickup segment.

engineered and designed by Daimler.

The brand is seeking to cash

Nissan and renault are already

in on the growing worldwide

developing a 1t pickup truck for

popularity of pickup trucks,

renault, which will also share

which are gaining favour with

common elements with the

commercial and private customers.

Nissan NP300. This truck, which

The new pickup will initially be

will begin production this year,

targeted at commercial and private

will mark renault’s second entry

customers in latin America, South

into the pickup segment after

Africa, Australia and europe, all of

the upcoming launch of a half-

which are seeing positive growth in

tonne pickup later this year.

the segment. It will be developed by the Mercedes-Benz Vans division.

A few days after announcing the

The Mercedes-Benz pickup will be built by Nissan in the renault plant in cordoba, Argentina. It

plan, Daimler revealed that the 1t

will be produced alongside the

truck would be jointly built with

Nissan NP300 and renault 1t truck

Nissan, expanding the German

for the latin American market.

APRIL 2016 TRUCK&FLEET ME 17

Round-up

TATA XENON Reviewed by Truck&Fleet ME in the July/ August 2014 issue, this pickup offering from the Indian brand is available in a number of different variants in two- and four-door and petrol and diesel guises. All versions of the Xenon are currently only offered with manual transmission.

The double cab of the Crew version used in the test drive includes ABS as standard, along with power steering, electric windows and cup holders. The 4x4 crew cab option

18 TRUCK&FLEET ME APRIL 2016

of the Xenon also has an electrical shift arrangement for the 4H, 4L and 2H options.

In terms of additional features, Tata has been offering an optional rear camera, built-in sat-nav with touchscreen and Bluetooth audio streaming in some markets.

The loading area on the double cab configuration offers 1.43m x 1.41m x 0.04m of space. These dimensions increase to 2.4m x 1.67m x 0.4m for the single cab. For a braked trailer, hauling capacity offered on the Tata

Xenon is 2,200kg for a double cab version and 1,800kg for a single cab variant. Unbraked trailers offer 750kg across all variants.

Moreover, the crew cab allows a payload of 880kg, improving to 1080kg for the single cab.

The diesel version of the Xenon delivers maximum power of 140hp at 4,000rpm, and torque of 320Nm at 1,700-2,700rpm. The petrol version offers 131hp at 5,630rpm and torque of 195Nm at 3,750rpm.

Round-up

FORD RANGER The 2016 Ford Ranger, a refreshed version of the American brand’s compact pickup, is Ford’s newest offering in the light commercial vehicle segment. The new model is now available across the UAE at all Al Tayer showrooms.

The new Ranger continues to be produced at Ford’s Silverton Assembly Plant in Pretoria and exported to 148 markets in the Middle East, Africa and Europe.

With an 800mm water wading depth and 230mm of ground clearance, the truck is designed and engineered for extreme terrains.

An electronically controlled transfer case allows drivers in 4x4 models to shift on the fly from 4x2 to 4x4 mode via a knob on the centre console. In addition, the Ranger offers customers a towing capability of up to 3,500kg.

Driver assist technologies on the new Ranger line-up include ESP and ABS on all but some base models, where ABS is an option.

Engine options include Ford’s 3.2L Duratorq TDCi five-cylinder diesel engine, which has been upgraded to include a new exhaust gas recirculation system that helps improve fuel efficiency by up to 1%, while

producing 197hp of power and 470Nm of torque. The revised 2.2L four-cylinder Duratorq TDCi also benefits from upgrades to boost performance and efficiency, and produces power of 148hp and 375Nm of torque.

The new Ranger is also available with Ford’s 2.5L Duratec petrol engine, providing

161hp of power and 225Nm of torque.

Depending on the model, the vehicle is equipped with a six-speed manual or automatic transmission, or a five-speed manual on the diesel and petrol versions. The truck is available in single-cab, RAP (Rear Access Panel) cab and double-cab versions.

GMC SIERRA With a 114-year legacy in pickup trucks, the GMC Sierra has carved out a niche for itself in the premium truck segment.

Building on its popularity with off-roading and camping enthusiasts, the 2016 Sierra HD line-up is equipped with features to make hauling and trailering easier.

One example is the Active Steering Assist power steering, new for 2016, on some doublecab and crew-cab models. The technology incorporates electronic controls that enhance road holding and stability on the highway.

A new gooseneck/fifth wheel trailering prep package is also available, making Sierra HD models ready to tow larger trailers right from the factory. The package features a frame-mounted hitch platform and tray that accommodates a gooseneck ball hitch or fifth wheel hitch mounting brackets, and includes a cargo bed-mounted trailer harness.

The 2016 GMC Sierra Heavy Duty is available across the region at prices starting from $36,783 for the 2WD regular cab ($43,305 for the Denali crew cab). The vehicles are also available with a three-year/100,000km guarantee and four years of roadside assistance.

20 TRUCK&FLEET ME APRIL 2016

Product PRodUCT launch LaUnCh

The trucks were unveiled at the Mercedes-Benz workshop in Fujairah.

the brazilian connection GarGash EntErprisEs has unvEilEd nEw brazilian-built MErcEdEs-bEnz trucks for thE distribution sEGMEnt in thE uaE

22 TRUCK&FLEET ME APRIL 2016

PRodUCT Product LaUnCh launch

i

n the UAE trucking industry, the MercedesBenz brand name is associated with the ubiquitous Actros, a heavy-duty workhorse popular across a wide range of applications.

While the German brand is also a force to contend with in the van and bus segments, it hasn’t been represented in the medium-duty distribution segment, which has long been dominated by Japanese names.

Gargash Enterprises, the MercedesBenz dealer in Dubai and the Northern Emirates, is looking to change that, however, with the recent unveiling of a new range of medium-duty Mercedes-Benz trucks.

At an event held for key customers at the Mercedes-Benz commercial vehicles workshop in Thoban, Fujairah, Gargash revealed two

new models, the Accelo and the Atego – representing a foray for the company into the highly competitive distribution segment.

The Accelo 915 C is equipped with a fourcylinder engine producing 150hp and comes with a payload of more than five tonnes. The truck cab is designed with a car-like interior, and is suitable for a driver and two companions.

Meanwhile, the Atego 1725 is a multipurpose truck with a Gross Vehicle Weight (GVW) of 17.1t, powered by a six-cylinder engine that produces 245hp. The vehicle is equipped with on-board diagnostics and ABS. Also in the Atego range is the Atego 1418 model, featuring a four-cylinder engine generating 177hp. With a GVW of 14t and a sixspeed synchromesh gearbox with a two-speed

rear axle, the Atego 1418 is suited for inner-city and short distance distribution transport.

The trucks will soon be officially launched in Dubai, which has more of a market for distribution vehicles than the Northern Emirates, says Thomas Rothe, commercial vehicles manager at Gargash Enterprises.

Penetrating the distribution segment will not be without its challenges, particularly considering that it is extremely price-sensitive, he notes.

“Mercedes-Benz has a huge product portfolio, but we were never able to [compete] in the lightand medium-duty segment here,” Rothe says in an interview at the event, noting that while the brand had distribution vehicles, they weren’t competitive against Asian products in the country.

The Atego and Accelo, however, are

APRIL 2016 TRUCK&FLEET ME 23

Product launch

The Accelo and Atego trucks will be well-suited for small and medium-sized companies.

assembled in the Mercedes-Benz facility in Brazil, where they are already popular in the distribution segment. The trucks, therefore, will be more cost-effective and consequently better able to compete in the UAE, and they will be best suited for small and mediumsized companies, supermarkets and the like.

“They are well-proven trucks, and that's why we decided to bring them here.”

The fact that the models are assembled outside of Germany has no effect on the quality, he is quick to note. “It is a Daimler philosophy that the standard of the vehicles, no matter where they are produced, is the same quality.”

Daimler Trucks, however, also owns the Japanese Fuso brand, which is by far one of the most popular choices in the light-duty distribution segment. When asked whether the Atego and Accelo models might compete with Fuso vehicles, Rothe replies that this is not likely to be the case, as the ranges are geared towards different weight segments.

“When you look at these two products, it’s a 14t and 17t GVW. Meanwhile, the Fuso range is smaller, it's more in the 7.5-8t category.”

The Atego and Accelo will be complementary to the Fuso product range, avoiding the possibility of in-house competition, he says.

In addition to more actively targeting the distribution segment, Gargash is also working

on cementing ties with customers in the Northern Emirates. One way has been through the opening of the Thoban workshop at the Ras Al Khaimah-Fujairah border. The facility, which marked its second anniversary this year, comes equipped with eight workshop bays, a parts warehouse and 35 parking bays.

Customers in the Northern Emirates are predominantly involved in quarry and crushing operations, although there are some in the logistics, distribution and construction sectors as well.

“They need rugged, heavy and reliable trucks,” Rothe says, noting that fuel economy isn’t typically a major consideration, particularly considering that quarrying customers use their trucks only for short distances.

Maximum uptime is crucial for quarrying customers in particular, meaning they need a service facility close to them, Rothe points out.

“They will not be able to bring their trucks to Dubai – which for trucks is a 2.5-hour drive – just for service or repair. With this workshop we are even more in the position to offer full-fledged facilities, 24-hour service and road service.”

Customers are thus now finding it more cost-effective to cut down on their own workshop capabilities and rely on the dealer instead for servicing, Rothe says. “The customer ultimately realises that he cannot

run his own workshop cheaper than us.”

While anybody can perform a basic oil and filter change, a service contract comes with a warranty, road-side assistance and 24-hour service, with staff at the Fujairah facility attending to calls 24x7. “That is what these customers need. Their trucks don't sleep much.”

Mercedes-Benz is well-positioned to tackle the needs of quarrying customers for both short- and long-distance applications, Rothe says. Customers that need trucks primarily for quarry use can go for the more rugged eight-cylinder version of the popular Actros, while customers transporting materials over longer distances can opt for the more efficient six-cylinder model. “We are the only ones having two products in the segment, and the customer can choose. That gives us an edge.”

Although business is currently bleak for some customers in the Northern Emirates, much of the demand for companies in the quarrying and crushing sector is being driven by developments in Abu Dhabi, Oman and Qatar, primarily as the latter gears up for the 2022 World Cup. “With these kind of developments, it is picking up again. Qatar also has a timeline to fulfil. 2022 sounds far away, but when you imagine what they have to build, then the pressure is on for them as well.”

“it is a Daimler philosophy that the stanDarD of the vehicles, no matter where they are proDuceD, is the same quality” 24 TRUCK&FLEET ME APRIL 2016

IndUsTRy focus FoCUs Industry

Building capacity

Spurred by riSing demand in the region, bodybuilderS in the uae are inveSting in increaSing production and r&d, while eyeing new marketS

W

hether it’s transporting chocolates to the supermarket or aggregates from the quarry, different applications call for trucks to be adapted in different ways to the task at hand.

Enter bodybuilders, which provide that crucial link between truck OEMs and end users. From low-bed semi-trailers to transit mixers, these companies often specialise in meeting a highly diverse set of customer needs.

With increasing demand for vehicles in applications like construction, logistics and municipal services across the Middle East and Africa, bodybuilders in the UAE are looking at ramping up production and R&D capabilities, while also setting their sights on new markets.

26 TRUCK&FLEET ME april 2016

One of the most recognisable bodybuilder names is UAE-based Gorica, headquartered in Jebel Ali. With its presence in Dubai going back 25 years, Gorica’s expertise covers a wide range of products, including curtain-side, low-bed and refrigerated semi-trailers; tippers and transit mixers; tankers for drybulk; waste management and municipal vehicles; oilfield equipment and pressure vessels; and other products for various niche applications. These are manufactured in three production facilities in the Jebel Ali Industrial Area and two in Dubai Industrial City.

Gorica also has a manufacturing company in Oman, a smaller manufacturing firm in Qatar and a representative office in both Kuwait and Saudi Arabia.

While the company’s main markets are

the GCC and East Africa, it also operates in the rest of the Middle East and in West and Central Africa, says Ivan Fornazaric, managing director at Gorica Industries.

Another major Middle Eastern player is Mammut Industries, specialising in trailers, semi-trailers and truck-mounted bodies.

The company has a strong presence in the UAE, Qatar, Oman and Kuwait, where it established a branch over ten years ago, says Fabio Checchin, sales director at Mammut.

The company currently carries out production in its factory at Techno Park in Jebel Ali. Few companies have as long a history in trailer manufacturing as Schmitz Cargobull, which traces its origins back to 1892. The German bodybuilder, which has been active in the Middle East since the 1970s, has supplied numerous products

IndUsTRy Industry FoCUs focus

in the region for various applications.

Currently, the company produces over 50,000 trailers and truck bodies annually at its competence centres in Germany, for segments like general cargo, refrigerated transport and the construction industry, says Fabian Bahlmann, general manager at Schmitz Cargobull Middle East.

Schmitz Cargobull is also looking at growing its regional footprint, Bahlmann says.

“In addition, we are currently looking out for partnerships in selected markets [to offer] an even better overall package for our customers.”

To meet rising demand for their products, bodybuilders have been working on increasing production capacity. Gorica’s capacity has doubled from a year ago, with the addition of its new 37,000sqm facility in Dubai Industrial City, Fornazaric says. At the DIC site, the company

has about 11,000sqm dedicated to the production of refrigerated semi-trailers, and it can produce 2,000 reefer bodies annually.

The company is looking forward to growing demand in the refrigerated semi-trailer segment, driven by a growing population as well as new regulations it hopes to see in the market, Fornazaric says.

Refrigerated vehicles from Europe that outlive the number of years they can be used for food transport often find their way to the UAE, imported as second-hand units. Many are scarcely road-worthy, he points out with concern.

“We hope that things will change,

Ivan Fornazaric, managing director at Gorica Industries.

april 2016 TRUCK&FLEET ME 27

Industry focus

Fabian Bahlmann, general manager, Schmitz Cargobull Middle East.

Schmitz Cargobull has been active in the Middle East since the 1970s.

and of course the market is growing and the population is growing.

Transportation of food is also growing.”

Bahlmann also raises concerns in the reefer industry, saying that many regional players are currently building up their production of reefers with old machinery from manufacturers in Europe.

Like Fornazaric, he too notes growing demand in the F&B and refrigerated transport industry. “That is why we offer our customers solutions that match their expectations, such as load securing options for beverage transport or ‘speed curtains’ for easier and faster handling.” inCREASing PROduCTiOn As it looks to increase production, Gorica Industries is investing in new machinery for its production facilities, most of which will be imported from Europe. The company is also building a new R&D building at its premises, which will be ready in another four months, Fornazaric says.

Mammut currently carries out production in its factory at Techno Park in Jebel Ali, but is looking to open a new facility for production, also in Jebel Ali. “We hope to start working there very soon, because we have to optimise our production,” he says, noting that there isn’t enough room in the current factory, as

28 TRUCK&FLEET ME april 2016

the Mammut Group also carries out other operations there. The new factory will be entirely dedicated to Mammut Industries and is expected to open in about six months.

Enhancing production is part of a strategy to increase market share in the UAE, Qatar, Oman and Kuwait, partly to make up for dwindling sales in Iraq, he says.

Mammut is also eyeing opportunities in the African market, particularly in East Africa, as the cost of transporting trailers to other parts of Africa is simply not feasible, Checchin explains. “There's no chance to export in South Africa, for example. Unless you are producing some specific bodies that nobody else is making, you can’t be competitive.”

However, less specialised products

hardly stand a chance, given the high freight costs. “It would cost much less to ship from Italy to western Africa, than from Dubai to western Africa. An Italian bodybuilder could be much more competitive than us, even if the labour cost is much higher.”

“For the time being, we're selling a lot of trailers in Ethiopia. We have a good relationship with customers and dealers there.

Now we would also like to enter Kenya, but to be honest, it's not easy. I don't think we will get results very soon. There are some other countries on our radar as well.”

Ethiopia looks promising for Mammut, and the company has recently received requests for quotations there. Demand in the East African nation is largely driven by construction

“in ThE fuTuRE, iT will BE imPORTAnT fOR uS ThAT wE inCREASE PROduCTiviTy By inTROduCing mORE AuTOmATiOn inTO OuR PROduCTiOn And EmPlOying highER SkillEd PEOPlE”

Industry focus

vehicles, such as tippers and concrete mixers.

Even as the large number of construction and infrastructure projects on the continent offer potentially lucrative prospects, Africa has been hard hit by low crude prices. Countries like Algeria and Nigeria which rely on oil for a significant proportion of their GDP have been particularly affected, Checchin says.

“Africa is suffering a lot. This reflects in a lack of money to buy trucks and trailers.”

Mammut is also looking at developing its business in Europe, exploring opportunities in both Western and Eastern Europe, he adds.

The company is also contemplating potential alliances with European bodybuilders.

Closer to home, the Omani and Qatari markets are rapidly growing, the latter largely driven by projects for the 2022 World Cup. Changing load regulations in Qatar, however, are causing some uncertainty among customers, Checchin notes. While some are still buying,

others prefer to adopt a wait-and-see approach.

Schmitz Cargobull also expects further legislations in terms of axle load limits, as well as the introduction of more health and safety measures for trucks and trailers on the road, Bahlmann says.

However, varying load regulations across the GCC can be a challenge, as they influence how the truck body should be built, Fornazaric notes. “The main challenges are in the design department. For example, in Saudi or in Qatar, it has to be light and strong. Over here in the UAE, where there are no load restrictions, we have to make it stronger so as to not break."

"Because of this, we need a lot of different types of raw materials and components in stock, because each country, each market has a different spec related to axles or tyres, for example.”

Another key issue is the growing cost of production, including leasing land

and building factories. It is also getting harder to recruit workforce, he adds.

“In the future, it will be important for us that we increase productivity by introducing more automation into our production and employing higher skilled people.”

Looking ahead, although there is still much demand for products for the construction industry, Fornazaric expects vehicles for logistics applications to form a bigger proportion of Gorica’s business.

Waste management vehicles are also expected to be in greater demand, particularly on account of the changing nature of the industry itself. “There is a lot of privatisation taking place. This of course differs from country to country.

The second change, perhaps, will be more segregation of waste in the future.

That again will require different types of vehicles. We will have to adapt to that.”

C

“wE'RE SElling A lOT Of TRAilERS in EThiOPiA. wE wOuld AlSO likE TO EnTER kEnyA, BuT TO BE hOnEST, iT'S nOT EASy. i dOn'T Think wE will gET RESulTS vERy SOOn” SPECiAl APPliCATiOnS: OilfiEld BuSinESS Despite a slight recovery recently in oil prices, the low prices have certainly affected Gorica’s oilfield business, Fornazaric says.

“The other problem is that usually, when prices are low, nobody is investing.

It is a cycle, like in other industries.”

However, because of Gorica’s expertise in supplying to the oilfield sector, the company still expects demand, says Domen Bockor, general manager – Sales and Marketing.

“It's a bit more specialised. You have fewer companies that have the competency to build these products. There are not too many companies capable of offering this product, so it's not like every garage can make it.”

For Mammut, the sector doesn’t account for too much of the company’s business for the time being. Checchin says, “We now have three very important customers we are working with. But we think we have room enough to increase our business in the oilfield.”

30 TRUCK&FLEET ME april 2016

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CM

MY

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AdvertoriAl advERToRiaL

changing gEaRs

Fully automatic transmission solutions are proving popular For bus and coach operators in the middle east, according to allison transmission

School Transportation Services (STS) is the first fleet in the UAE that can claim a Higer coach with an Allison fully automatic Torqmatic® transmission featuring the FuelSense® fuel-saving package.

Allison Transmission engineers and builds fully automatic solutions for buses used around the world. There are more than 200,000 Allison-equipped buses in operation, transporting over 20 million passengers daily. As a leading global supplier of fully automatic bus and coach transmissions with a long history of innovation, Allison is committed to providing the most reliable and valued propulsion solutions in the world to enable customers to work more efficiently.

Allison offers the world’s most complete line of automatic transmissions for buses.

They can be found in buses as small as seven metres to as large as 27m, and offer innovative options such as hybrid propulsion solutions. From smooth shifting and excellent fuel economy to proven durability, the world depends on Allison.

Experienced regional fleets opt for fully automatic transmissions In the United Arab Emirates, School Transportation Services (STS) is the first fleet

32 TRUCK&FLEET ME APRIL 2016

Abdulelah Maghrabi Transport Est’s Golden Dragon XML6112J53 high decker coach with an Allison T 375 fully automatic transmission.

that can claim a Higer coach with an Allison fully automatic Torqmatic® transmission featuring the FuelSense® fuel-saving package.

STS acquired its first Allison-equipped Ashok Leyland Falcon school bus in 2009.

Abu Sarhad, one of the largest pilgrim transport companies in Saudi Arabia, has been renewing its bus and coach fleet with Allison-equipped Golden Dragon models, based on 22 years of positive experience beginning with GMC school buses featuring Allison Automatics.

Abdulelah Maghrabi Transport Est has been benefiting from the superior performance and fuel economy of Allison’s Continuous Power Technology™ in a growing fleet of luxury Golden Dragon coaches since 2014.

Recently, Bahrain Public Transport Company (BPTC) and its Optare Solo buses joined Allison's customer portfolio in the Middle East, which also includes the Mowasalat and City Group fleets in Qatar and Kuwait.

Bahrain Public Transport Company (BPTC) added Optare Solo buses, equipped with Allison transmissions, to its fleet in the Middle East, which covers Mowasalat in Qatar and City Group in Kuwait.

Latest fueL-saving technoLogies To get the most out of every drop of fuel, Allison transmissions feature FuelSense, a fuel-saving solution that automatically senses when fuel can be saved at each stage of a vehicle’s dutycycle, to maximise transmission fuel economy.

In addition, new Allison xFE models take fuel-economy technology to the next level. This innovative solution from Allison uses new gear ratios that allow the torque converter to lock up at lower speeds, improving fuel economy by up to 7%.

serving the MiddLe east Globally, Allison Transmission is positioned to deliver outstanding sales, customer service, parts distribution, engineering, marketing and training to its network of Allison Authorised Distributors and Dealers. Allison has over 60 years of experience in the Middle East and recently invested in a state-of-the-art, 15,000sqm facility in Dubai to provide world-class support to OEMs and fleets throughout the region.

The Leading Transmission Around The Corner

And Around The World From Beijing to Buenos Aires and New York to London, fleets, cities and passengers rely on Allison Automatics to safely and reliably keep their buses on the road. Our proven reliability has made us the global leader in bus transmission technology. Allison has the widest selection of automatic transmission models for buses and is offered by more bus manufacturers around the world than anyone else. Allison fully automatic transmissions deliver smooth operation, lower cost of ownership and thanks to FuelSense® technology, improved fuel economy. The world depends on Allison. Shouldn’t you? allisontransmission.com

© 2016 ALLISON TRANSMISSION INC.

UITP MENA 2016 25-27 April Stand 5C26 Dubai

new vehicles

SCania RoLLS oUT nEw inTERLinK HigH DECKER Scania’s first new-generation Interlink High Decker coach has just rolled off the production line, the Swedish truck and bus-maker has announced.

Built at Scania’s production centre in Lahti, Finland, the Scania Interlink High Decker joins the new Interlink family of low-, mediumand high-deckers, and is based on the Scania OmniExpress. The buses will be in operation this spring with Norwegian operator JVB. In terms of styling, the new coach follows other Scania buses and coaches and has the characteristics and features of the Scania product range, said Ingrid Nilsson Czornyj, Styling team leader for Scania aBus and Coach.

The coach has been improved with a raised aisle for a lower seating platform, along with a 10cm lower side window. Operators can decide on the interior layout and seating as the basis for deciding on bus length, which ranges from 11m to 15m with a two-axle option available up to 13.2m.

Although the Scania Interlink comes with a stiffer body, introduced to meet the rollover R 66.02 requirement, its weight has been reduced in relation to earlier models. With the increased

stiffness, passengers will experience less vibration, lower noise and more comfort, Scania says.

“I can honestly say that the Scania

Interlink HD is one of the best in the market – the details, systems and weight,” said Harri Kankaanpää, head of Busbody R&D at Scania.

MiTSUbiSHi MonTERo SpoRT LaUnCHED in UaE

3.0L V6: MIVEC engine Al Habtoor, the Mitsubishi dealer in the UAE, has unveiled the newest addition to the Japanese brand’s SUV line-up in the Emirates.

The Montero Sport is a new-generation mid-

34 TRUCK&FLEET ME APRIL 2016

size SUV, powered by a 3.0L V6 MIVEC engine mated to an eight-speed automatic transmission.

Active safety features include a forward collision mitigation system (FCM); a blind spot

warning system, a first for a Mitsubishi model; and the Ultrasonic mis-acceleration mitigation system (UMS). In addition the vehicle is fitted with an electric parking brake and fully automatic climate control, allowing different temperatures to be set for driver and front seat passenger.

The Montero Sport uses a further evolved version of Mitsubishi’s Super-Select 4WDII four-wheel drive system, complemented by a new off-road mode – also a first on a Mitsubishi model. The off-road mode offers better all-terrain performance through a Hill Descent Control (HDC) feature. Pressing the HDC mode selector automatically applies the brakes to maintain the current speed when travelling downhill at 2-20 km/h. The SUV also features selectable 2WD and 4WD modes, in addition to the off-road mode.

Manoeuvrability has also been enhanced on the Montero Sport, which offers a 5.6m turning radius.

Prices start from AED 89,900 for the baseline version to AED 107,000 for the fully loaded premium highline model.

WORKSHOP

mAInTenAnce, TYRes & PARTs

SPONSORED BY

Cardan Service Network

www.csn-me.com

VolVo Trucks launches I-shIfT wITh crawler gears

With the crawler gears, the truck can drive at speeds as low as 0.5-2km/h.

Volvo Trucks is launching a new version of its I-Shift automated transmission, the I-Shift with crawler gears, tailored for trucks carrying heavy loads in demanding situations.

The new system, which is entirely unique for series-produced heavy trucks, makes

19

mIllIon:

Cars expected on GCC roads by 2020 36 TRUCK&FLEET ME APRIL 2016

it possible to add up to two new crawler gears. This means a truck can move off from standstill and transport a gross combination weight (GCW) of up to 325t.

“I-Shift with crawler gears offers an entirely new scope for heavy trucks with

automated transmission to regulate their speed when crawling slowly and reversing,” said Peter Hardin, product manager FM and FMX, Volvo Trucks. “The driver can haul a heavy load without worrying about getting into situations that may lead to costly standstills.”

With the crawler gears, the truck can drive at speeds as low as 0.5-2km/h, which can be helpful during precision manoeuvres, such as in construction and maintenance tasks.

The new I-Shift makes it easier to operate in difficult terrain or slippery surfaces with heavy loads, such as on construction sites, in mines or in forests, Hardin said. “The heavier the transport operation and the poorer the surface or the terrain, the more the driver gains from a truck with crawler gears.”

Depending on the application area, the I-Shift is available with one or two forward crawler gears, and with or without two reverse crawler gears. Reverse crawler gears make it possible to reverse extremely slowly, an advantage when reversing manoeuvres require high precision.

GULF OiL TEaMs Up wiTh ManChEsTER UniTEd Gulf Oil International has signed a long-term partnership with football giants Manchester United, making the company the English team’s official global lubricant and fuel retail partner. The partnership

runs initially until the end of the 2018-19 football season, and marks the largest single partnership ever undertaken by the oil and fuel brand owned by India’s $18 billion Hinduja Group, which also owns Ashok Leyland.

Driving profitability

VOLVO’S I-SHIFT AUTOMATED MANUAL GEARBOX maximises uptime and makes your transports more efficient. Thanks to built-in intelligence, it quickly and automatically chooses the right gear. The result is less wear and tear, optimised fuel consumption and safer, easier and more comfortable driving. Or put differently, I-Shift makes transports with your Volvo trucks more profitable.

For MORE INFORMATION ABOUT I-SHIFT please visit volvotrucks.com

Volvo I-shift Gearbox

Arriving faster6:

1 8 – 1 0 M a y , 2 0IER

The largest international automotive aftermarket trade exhibition in the wider Middle East

ARL ONE MONTH E

Gear up for business growth across the wider Middle East.

Welcome to Automechanika Dubai.

A place to strike business deals, discover advanced technology and explore new markets, it’s where supply and demand come together.

In 2015, 1,882 exhibitors and 30,365 visitors found out just how much difference attending Automechanika Dubai can make.

Make a difference to your own business. Register online today at www.automechanikaDubai.com/TF

WORKSHOP wORKshOp

mIchelIn oPens fIRsT TYRePlus bRAnch In RAk

A Tyreplus branch in Mussafah.

Image for illustrative purposes only.

Michelin has opened its 110th Tyreplus brank in the GCC, in the Al Nakheel area of Ras Al Khaimah (RAK), UAE. The new outlet, the first in RAK, is franchised to Central Trading Company.

Total turnover from the Tyreplus network grew 40% last year across its GCC operations. The total volume sales growth for tyres was 20%, and the car maintenance line saw a 28% rise in sales.

Opening the RAK branch is in line with Michelin’s plans to expand the Tyreplus network to 60 outlets across the UAE, Oman, Kuwait, Bahrain and Qatar by the end of 2016, said Manish Pandey, Tyreplus franchise manager for Michelin AIM.

QuIck TIPs Have a trouble-free trailering experience with these tips from GMC. 1. When loading a trailer, don’t put the majority of the weight on the rear, as this can cause sway and instability. Weight should be distributed so that at least 10% is on the hitch. Check periodically to ensure your cargo hasn’t shifted.

2. For greater control when driving on steeper downhill grades, take your foot off the gas and slow down just before the grade begins.

3. If the trailer begins to sway excessively or whipsaw on the highway, simply take

pROjECT QaTaR is baCK in TOwn

your foot off the gas pedal to reduce momentum. Do not hit the brakes or speed up.

The 13th Project Qatar comes to Doha next month, held May 9-12 at the Doha Exhibition and Convention Centre. In 2015, the show hosted 1,130 exhibitors representing more than 2,000 companies and brands.

This year too, the show will be held concurrently with Heavy Max 2016, geared towards the construction equipment and vehicles sector.

4. Certain types of trailers require trailer brakes – and even with them, your loaded vehicle and trailer will require more distance for stopping, so bear that in mind.

5. Your vehicle might have a spare tyre, but ensure that you also have a spare trailer tyre, and that it is properly inflated.

DuBAI SChOOL BuSES tO GEt tRACkING SYStEmS

The new regulations come into effect on April 1.

Dubai’s Roads and Transport Authority (RTA) has announced new regulations

for the school transport sector, under which buses will be fitted with GPS tracking systems starting April 1.

Schools will also be allowed to modify the seating of large buses (with over 50 seats) to a 2x3 seating configuration, provided that two fire extinguishers, two attendants and two first-aid kits are provided.

The RTA has also banned the use of minibuses under 6.2m in length in school transport, for safety reasons and to accommodate more students. An 18-month grace period was given to schools to phase out the use of minibuses by the deadline of March 1.

The School Transport Law has been crucial in maintaining the safety of different age groups of students using school buses, said Adel Shakri, director of Planning and Business Development at the RTA Public Transport Agency. “This is evident from the drop in the number of annual accidents recorded in this sector by 10%.”

As a result of more stringent regulation of the sector, the number of fatalities was cut to zero last year. The drop in accidents is primarily due to the collaboration between the RTA, school managements, transport operators and parents, Shakri added.

“The heAvIeR The TRAnsPoRT oPeRATIon And The PooReR The suRfAce oR The TeRRAIn, The moRe The dRIveR gAIns fRom A TRuck wITh cRAwleR geARs” Peter Hardin, product manager FM and FMX, Volvo Trucks

APRIL 2016 TRUCK&FLEET ME 39

PARTING SHOT

UnlockIng Iran

Iran’s automotIve after-market Is full of opportunItIes In the wake of sanctIons beIng lIfted

I

ran’s automotive after-market has enormous potential as the nation enters a post-sanctions era, industry experts said at a networking event organised ahead of this year’s Automechanika Dubai.

The nuclear agreement between Iran and the P5+1 powers is set to greatly benefit the country’s automotive sector, with European manufacturers like Daimler and Peugeot now flocking to Iran after pulling out of the market several years ago. More are expected to follow suit in the country, which is the world’s 18th largest automaker according to market research institute GfK. Opportunities in the Iranian automotive after-market post-economic sanctions were discussed at the 7th Automechanika Network in Dubai last month, attended by manufacturers, distributors, wholesalers, retailers, media and industry experts.

40 TRUCK&FLEET ME april 2016

Fourteen million commercial and passenger vehicles currently ply Iran’s roads, according to GfK, and the country’s automotive sector is the second most active industry behind oil & gas, accounting for 10% of GDP and 4% of the workforce (700,000 people).

“With a population of nearly 80 million and a land mass the size of Western Europe, Iran is a country with huge potential,” says Ahmed Pauwels, CEO of Messe Frankfurt Middle East, organiser of Automechanika Network and Automechanika Dubai, adding that with the easing of economic sanctions, more Iranian exhibitors and visitors are expected at Automechanika this year.

Iran’s domestic automotive market is also growing rapidly, with analysts Frost & Sullivan noting that more than 1.4 million cars were manufactured in the country in 2015. An estimated 2.3 million vehicles will be sold in

Iran by 2020, at an 18% annual growth rate.

“Iran, by far, is the biggest automotive market in the Middle East, with more than 16 million vehicles operational today,” says Subhash Joshi, industry manager for Automotive Practice at Frost & Sullivan.

“Now that the sanctions have been lifted, local authorities are more aligned to the ‘Made in Iran’ strategy, promoting Iran as one of the key exporting countries in the region. Opportunities in this vastly untapped market vary from Tier 1 suppliers to OEMs to service providers.”

Now in its 14th edition, Automechanika Dubai 2016 will focus on the six core product groups of Parts & Components; Electronics & Systems; Repair & Maintenance; Tyres & Batteries; Car Wash, Care & Reconditioning; and Accessories & Customising. The annual three-day event is expected to attract more than 30,000 visitors from 134 countries.

BOOSTING BUSINESS, MAXIMISING KILOMETRES SP391

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