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O88/JULY 2O21

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! K C A B E R ’ E W

ry t s u d n i e h t t as e k r a m e h t in m s i m i t p own o d k s c o l t s o p Cautiou rst fi s t i r o f r e th comes toge i a b u D n i t n annual eve

E C N A H C G N TI S ITS NEW REVAMP SPOR IA UNVEIL AGE K

O RT FO R T H E S P

Date

25 Jan

Venue

TBC

TBC / DUBAI / UAE

Celebrating the truck and machinery industries, commending organisational and individual excellence 25 January 2022

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The Event Proud to announce the inaugural MAT Awards. Winning an inaugural award will be a recognised badge of excellence amongst clients and peers.

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Andy Pitois | + 971 4 375 5473 andy.pitois@cpitrademedia.com

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Brian Fernandes | +971 4 375 5479 brian.fernandes@cpitrademedia.com

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Thank you to all our amazing partners and sponsors for your support.

CONTENTS

CONTENTS FEATURE

12 / AN INDUSTRY COMES TOGETHER Major OEMs from the commercial vehicles industry discuss the future of transportation in the region.

ALSO THIS ISSUE … NETWORK

06 / NEWS FROM THE MONTH

FAMCO launches new Volvo Trucks range in the UAE. LAUNCHES

10 / SPORTAGE DEBUT Kia unveils a radical new look for the venerable Sportage SUV. FEATURE

16 / A SAFER INDUSTRY Johannes Faatz of Daimler CV MENA FZE explores why we all need a safer future. OPINION

20 / LEADING BY EXAMPLE Hans Wising of Scania Middle East shares his insight into how users of heavy trucks can transform into truly sustainable fleets. INTERVIEW

22 / FLEET FINANCING Patrick Ger Regan, founder, SAMA Capital Equipment Management on making the most of changes to financing in the UAE. FEATURE

26 / AME REGION IN FOCUS Leasing and fleet powerhouses highlight the challenges facing the AME region. FEATURE

28 / FUTURE OF MOBILITY HMC’s Bang Sun Jeong looks at the emerging technology shaping mobility.

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JULY 2021 01

WELCOME

GROUP MANAGING DIRECTOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5483 MANAGING PARTNER VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5472 DIRECTOR OF FINANCE & BUSINESS OPERATIONS SHIYAS KAREEM shiyas.kareem@cpitrademedia.com +971 4 375 5474

IT IS ALWAYS GOOD TO TALK First of all, a huge thank you to all the participants, speakers and sponsors – including Daimler CV MENA, Scania and Valvoline – that made last month’s Truck & Fleet Conference UAE such a success. If you were unable to attend or were locked away in a Covid-19 secure bubble in June, then we have you covered both online and in the next couple of issues of the magazine. If you have not seen them yet, all the sessions are now up on both the truckandfleet.com and meconstructionnews.com websites. I will also be digging through the best content, roundtables and presentations and putting it all into black and white in the magazine. I would have loved to have been able to put it into one big issue, but what do you know? It turns out that this sector likes to talk. And that is no bad thing! A special thank you goes to Paul Godfrey for ably overseeing events on stage while I remain grounded in the UK. We also had some great moderation from Glasgow Analytics Consulting Group’s Vishal Pandey during the key roundtables on the day. As I have said many times before events like this are essential to getting the industry together, make sense of the market and give inspiration for

plotting your next move forwards. This year’s conference was no exception, and it was interesting to hear the word collaboration over and over. I truly believe that the transport and logistics industry is stronger together. There are some serious challenges within the sector in terms of financing and safety where there a still a dialogue to be had with regulators. That process will be a lot easier with more unity between traditional rivals and ambitious start-ups than continuing to focus on tussling for business. A year ago, the hope was that we would be in the full swing of a recovery by now but that hasn’t been fully realised – just yet. This was an opportunity to look at how the sector is coping with Covid-19 (I think admirably) and how it may plot its way out by forming solid strategies, closer sector alliances and sheer force of will. Most speakers on-stage felt we are in the early stages of a recovery and, while there wasn’t a consensus of when that will happen, the world has shifted more towards the sector’s favour in the past year. Covid-19 has proven that transport and logistics is vital for economic health, the Truck & Fleet Conference UAE proved that the sector can come out of it in a far healthier condition.

PUBLISHING DIRECTOR ANDY PITOIS andy.pitois@cpitrademedia.com +971 4 375 5473 EDITORIAL EDITOR STEPHEN WHITE stephen.white@cpitrademedia.com +44 7541 244 377 DEPUTY EDITOR PAUL GODFREY paul.godfrey@cpitrademedia.com ADVERTISING SALES MANAGER BRIAN FERNANDES brian.fernandes@cpitrademedia.com +971 4 375 5479 SALES EXECUTIVE MINARA SALAKHI minara.s@cpitrademedia.com +971 4 375 5470 DESIGN ART DIRECTOR SIMON COBON simon.cobon@cpitrademedia.com DESIGNER PERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com PHOTOGRAPHY MAKSYM PORIECHKIN maksym.poriechkin@cpitrademedia.com CIRCULATION & PRODUCTION PRODUCTION MANAGER VIPIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 DISTRIBUTION MANAGER PHINSON MATHEW GEORGE phinson.george@cpitrademedia.com +971 4 375 5476 WEB DEVELOPMENT SADIQ SIDDIQUI ABDUL BAEIS FINANCE CREDIT CONTROL EXECUTIVE CAMERON CARDOZO cameron.cardozo@cpitrademedia.com +971 4 375 5499 FOUNDER DOMINIC DE SOUSA (1959-2015)

The publisher of this magazine has made every effort to ensure the content is accurate on the date of publication. The opinions and views expressed in the articles do not necessarily reflect the publisher and editor. The published material, adverts, editorials and all other content are published in good faith. No part of this publication or any part of the contents thereof may be reproduced, stored or transmitted in any form without the permission of the publisher in writing. Publication licensed by Dubai Development Authority

STEPHEN WHITE EDITOR, TRUCK&FLEET ME STEPHEN.WHITE@CPITRADEMEDIA.COM 02 JULY 2021

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04 JULY 2021

FEATURE: Sharjah Sustainable City: Green living

Many of us have had our misgivings about the level of development around the Makkah area over the years. Indeed, the sight of tower cranes standing over the city has become so familiar that perhaps we haven’t been asking ourselves whether the need for Saudi Arabia to both cater to pilgrims but also capitalise on its importance has been approached in the most responsible way – or not. As this article notes, Makkah is undergoing accelerated development in line with the leadership’s ambitious plans to advance “the national economy, improve infrastructure and public services, and meet the growing requirements in various economic and commercial sectors to increase the number of Umrah pilgrims to 30 million by 2030 as envisaged in the Saudi Vision 2030 plan”. The Masar project is an example of meeting all these aims the right way. Some may argue that an urban front landmark and gateway to the Holy Mosque is not needed but implementing smart building and development processes is by far the best way forward. And hopefully this is a sign that Saudi Arabia is willing to adopt global best practice as it becomes an internationally facing country. Name withheld by request

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NETWORK

FAMCO LAUNCHES NEW VOLVO TRUCKS RANGE / AL JADAWEL LAND TRANSPORT PICKS RENAULT K 480 / RTA ANNOUNCES EXPO 2020 PUBLIC TRANSPORT PLAN / ETIHAD RAIL

NETWORK

FAMCO launches new range of HD Volvo trucks in the UAE NEW GENERATION FH, FM AND FMX MODELS FEATURE ENHANCED SAFETY SYSTEMS INTEGRATED TO HELP AVOID ACCIDENTS AND MINIMISE DOWNTIME, SAYS IMPORTER LAUNCH Leading heavy vehicle and machinery importer FAMCO (Al-Futtaim Auto & Machinery Company) has launched its new cutting-edge Volvo Trucks range as it looks to “reinforce its market-leading position” in the UAE. The new-generation FH, FM and FMX heavy-duty trucks have been redesigned to deliver even higher levels of productivity, class-leading safety features, as

well as a more driver-friendly experience with an enhanced driver interface, interior space and overall visibility. These advanced models deliver a stronger return on range, giving users an environmental and financial saving in the process, said FAMCO in a statement. FAMCO and Volvo Trucks have been partners in the UAE since 1978 and have established a solid relationship that extends far beyond just the initial sales

cycle. With the support of the Swedish truck brand, FAMCO has invested in state-of-the-art facilities and software that works with the customer to ensure world-class levels of service, uninterrupted parts availability and, most importantly, reduced downtime for vehicles in the field. “Revealing these new trucks in the presence of members of the Volvo Trucks international team is not only an honour, but also a return to some form of normality

for us at FAMCO,” said Ramez Hamdan, Managing Director of FAMCO and Commercial Vehicles. “FAMCO and Volvo Trucks truly are a team working closely together on a daily basis. And that is the secret to the success of these two brands, which then benefits our customers. Bringing class-leading products to the market and providing the support and guidance our customers need, regardless of their industry or usage.”

THE UAE’S ENERGY STRATEGY 2050 AIMS TO INCREASE THE PERCENTAGE OF CLEAN ENERGY IN THE COUNTRY’S ENERGY MIX TO 50%

06 JULY 2021

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NETWORK

AL JADAWEL LAND TRANSPORT OPTS FOR DOUBLE-DIGIT RENAULT K 480 PURCHASE

ETIHAD RAIL AND TRANSPORTR DEVELOPING INTEGRATED DIGITAL LOGISTICS SERVICES LOGISTICS

The UAE’s Etihad Rail has announced a collaboration with digital freight services provider Transportr to enable the streamlining of the services it provides in the logistics sector. The developer and operator of the UAE’s national railway network said that the collaboration comes as part of Etihad Rail’s “long-term digital innovation strategy in advancing cuttingedge technology for the rail sector, alongside the company’s commitment to the UAE’s digitalisation agenda”. Under the cooperation, Etihad Rail and Transportr will work together to offer digital solutions for services such as booking, tracking and multi-modal connectivity, providing “a complete digital rail freight solution that will complement Etihad Rail’s range of new and sophisticated technologies that are convenient and efficient”. Ahmed Al Hashemi, executive director, Commercial, at Etihad Rail, said: “Etihad Rail is at the forefront of the industry in developing innovative solutions for its customers. Through integrating state-of-the-art technology into our network, we are creating a rail service that is new, modern, and cost effective, bringing significant benefits to the wider local and regional logistics sector. “Through implementing international best practice, we are reducing transport and storage costs, improving supply chain resilience, and providing future customers with seamless freight transport. Transportr provides a range of sophisticated solutions for the whole logistics sector.” meconstructionnews.com

FLEET Najah Al Tahir, owner of Al Jadawel Land Transport, targets using the French brand across the entire fleet by the end of 2022 as total fleet of vehicles reaches 98 Renault Trucks has delivered ten K 480 heavyduty construction models to one of the UAE’s leading construction material transportation companies, Al Jadawel Land Transport. The purchase expands the Fujairah-based firm’s fleet size to 98 as part of a strategy to exclusively use the French brand across the entire fleet by the end of 2022. The new trucks have been supplied by Renault Trucks’ partner in the United Arab Emirates, United Diesel, and will now be deployed to “transport aggregate from the crushers in the Northern Emirates across the country.” According to Renault Trucks, the K 480 Tractor Head 6x4 models purchased by Al Jadawel Land Transport “deliver the highest levels

of driver comfort, reliability, and fuel efficiency. They are equipped with a range of features that are designed to optimise productivity, minimise downtime, reduce operation costs and maximise profitability. Designed to operate in extreme conditions, their outstanding technical capabilities meet and exceed customers’ dayto-day requirements.” “We are incredibly proud to have struck this deal with Renault Trucks,” said Najah Al Tahir, owner of Al Jadawel Land Transport. “With operations across the UAE, which is known for its tough terrain and high temperatures, we require trucks able to withstand these harsh conditions. “The brand’s range has a reputation for being able to meet and exceed our needs, which is why we aim to switch our whole fleet to consist only of Renault Trucks models by 2022.” The K 480’s spacious, well-appointed cab features controls are at the driver’s fingertips, while there is also

a 7’’ HD LCD information display and seats with fitted red seat belts. The design of the windshield and side mirrors guarantee clear visibility around the cab with minimum blind spots, helping keep both occupants and road users safe, according to Renault Trucks. The manufacturer added that there safety features include EBS (Electronic Braking System), Hill Start Aid (HSA), Anti-Slip Regulation (ASR), Anti-lock Braking System (ABS) and Emergency braking assist (AFU). A Tyre Pressure Monitoring system (TPMS) is also fitted, “to ensure operators benefit from the maximum lifetime of the tyres.” The K 480 model is equipped with a fuel-efficient DXI 13 Euro 5 engine, developing 480 hp and torque of 2,400 Nm, and an Optidriver gearbox with automated clutch: “They combine to ensure the highest standards of productivity while minimising fuel consumption and reducing operating costs. Cruise control is also fitted as standard on C & K ranges.”

JULY 2021 07

NETWORK

MICROMOBILITY EXPERT FENIX EXPANDS IN GCC FLEET

Micromobility operator FENIX has now expanded its first-in-the-region private e-scooter service into three countries and seven cities, covering communities across Abu Dhabi, Fujairah, Ras Al Khaimah, Sharjah, Ajman, Doha and Manama. According to the firm, the MyFENIX app has garnered high demand, organically generating thousands of user subscriptions to the unique private e-scooter leaseto-own service since its launch in Abu Dhabi in February 2021: “The resounding success exemplifies the

growing demand for micromobility in areas and segments not serviced by shared e-scooters today.” Subscribers of MyFENIX can now access its e-scooter services in

Abu Dhabi, Fujairah, Ras Al Khaimah, Sharjah, Ajman, Doha and Manama. The service is inclusive of unlimited rides, a smart app to lock and locate the scooter, and free maintenance with vehicle replacements in less than 24 hours. Users who subscribe for 24 months will permanently receive their e-scooter, as a nocommitment lease-to-own product. “We want to transform the way we move in cities and ignite impactful commerce,” said Jaideep Dhanoa, CEO, FENIX. “The MyFENIX service is a game-changer for mobility access.”

RTA ANNOUNCES EXPO 2020 TRANSPORT PLAN TRANSPORT A project for integrated transport and flexible mobility around nine EXPO 2020 bus stations has been endorsed by Dubai’s Roads and Transport Authority (RTA). The project will be undertaken in collaboration with Nakheel, Dubai Silicon Oasis, Tecom and Dubai Properties. According to a statement, the project will see the RTA provide an integrated environment around metro and bus stations. It will see the construction of 226 pedestrian paths and 857 dropped kerbs and will create paths for people of determination at 1,053 points. It also includes a host

of speed calming measures such as humps, shared cycling & pedestrian tracks, shared cycling and vehicles lanes, roadside parking slots, and wider pedestrian pavements. “The project aims to encourage the use of environmentally friendly alternative transport means such as cycling tracks and encouraging public to use pedestrian walking paths, as well as public transport means, such as the metro, tram, marine transport and public buses,” said Mattar Mohammed Al Tayer, director-general and chairman of the Board of Executive Directors of the Roads and Transport Authority.

He added that the project focuses on improving the surrounding environment, as it will promote the integration of multi-modal transit means. Improvements include providing pedestrian pavements and addressing traffic safety requirements such as safe crossings, and traffic signals designated for pedestrians and cyclists. “The project includes the enhancement and implementation of mobility and connectivity standards at Al Baraha, Al Ghubaiba, Al Jafiliya, Business Bay 2, Dubai Silicon Oasis, International City, Palm Jumeirah, Etisalat and the Union Bus Stations.”

AD AIRPORTS AND MASDAR COMPLETE SOLAR CAR PARK PROJECT SUSTAINABILITY

Abu Dhabi Airports and Masdar have announced the completion of what’s billed as Abu Dhabi’s largest solarpowered car park. The three-megawatt (MW) solar photovoltaic (PV) project is installed on the car shading at the shortterm car park of the Midfield Terminal at Abu Dhabi International Airport. According to a statement, the project comprises 7,542 solar panels and the energy generated by the grid-connected project will be used to power the car parking facility, with excess energy fed to other sections of the airport. It is expected to save 5,300 tonnes of carbon dioxide per year. “The Midfield Terminal is designed to not only deliver a state-of-theart smooth and seamless passenger experience but also safeguard the UAE’s beautiful natural heritage. “Throughout its development, we have integrated technology which enables sustainability, protects the environment, and creates a cleaner, greener, and more ecologically friendly building. “Net-zero development has been a central ethos in the design and construction of the Midfield Terminal. By making smart and sustainable choices during its development in our use of double glazing, efficient lighting, and environmental controls, we have achieved considerable reductions across the building’s wider energy use,” said Shareef Al Hashmi, CEO of Abu Dhabi Airports.

INSIDE THIS ISSUE: FULL COVERAGE OF THE OEM ROUNDTABLE FROM THE TRUCK AND FLEET CONFERENCE UAE, AND MUCH MORE!

08 JULY 2021

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NETWORK

LEXUS REACHES 19MN TONS CO2 MILESTONE

BEE’AH BUILDING REGION’S FIRST WASTETO-HYDROGEN PLANT SUSTAINABILITY

Middle East’s sustainability pioneer Bee’ah is set to build the region’s first waste-to-hydrogen project in the UAE. Working with UK-based Chinook Sciences, Bee’ah’s project will include a green hydrogen generation plant and a hydrogen vehicle fuelling station, in collaboration with UK-based Chinook Sciences. The firms said the project is an evolution of their $180 million waste gasification to energy project and “addresses the increased market demand for new sources of renewable energy.” Once completed the fueling station will use green hydrogen generated from the waste-to-hydrogen plant from non-recyclable plastic waste and waste wood. The green hydrogen will then be fed into the fuelling station to power hydrogen vehicles. “Green hydrogen will be a vital pillar of our future energy landscape and Bee’ah has been looking into this market for some time now with Chinook in alignment with our long-term strategy to develop new, sustainable energy solutions,” said HE Salim Bin Mohammed Al Owais, chairman, Bee’ah. Chinook Sciences CEO Dr Rifat Chalabi, said the company was excited to to use its patented RODECS gasification and pyrolysis technology in the UAE. Dr Chalabi explained that the RODECS process breaks down hydrocarbons from waste through advanced thermal treatment to release and recover green hydrogen: “When the green hydrogen is used in vehicles, it emits only water and no carbon emissions.” meconstructionnews.com

OEMS Lexus says it has eclipsed the milestone of 2 million global sales of electrified vehicles at the end of April 2021. In 2020, 33% of Lexus models sold globally were electrified. Since 2005, the company’s electrified vehicles have contributed to a cumulative reduction in CO2 emissions of approximately 19 million tons – equivalent to the combined CO2 output of 300,000 passenger cars each year for the past 15 years. Lexus is aiming to further develop its electrified product portfolio to make use of the diverse energy sources and infrastructure environments encountered around the world.

Lexus now sells nine models of electrified vehicles, including HEVs and BEVs, in around 90 countries around the world. By 2025, the company will introduce 20 new or improved models, including more than 10 Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Hybrid Electric Vehicles (HEVs). The future expectation is that sales of electrified models will exceed those of the pure-petrol variety. In addition, by 2050, Lexus aims to achieve carbon neutrality throughout the entire vehicle lifecycle, from materials, parts, and vehicle manufacturing to logistics, driving, and disposal/recycling.

“We are proud to achieve this remarkable milestone, which represents another important step in tackling environmental challenges and realizing our goal of a carbonneutral society where people can enjoy a happy, healthy and sustainable life, with freedom of mobility,” commented Kei Fujita, Chief Representative, Middle East and Central Asia Representative O ‎ ffice, Toyota Motor Corporation. In order to further accelerate the spread of EVs, Lexus plans to introduce the first PHEV in a mass-market model in 2021, as well as a completely new model dedicated to BEVs in 2022.

AL FARIS BRINGS LIEBHERR LR 1500 TO REGION FLEET

Al Faris has announced an expansion of its crane fleet with the addition of several new units recently, including a 500t capacity Liebherr LR 1500 crawler crane, the first

of its kind in the Middle East and North Africa region. The regional heavy lifting and transport specialist said the new crane is part of a fleet expansion, with various cranes and other heavy equipment joining to its

growing fleet, which is already the largest in the Middle East region. A few of the cranes being added to Al Faris’ fleet are Liebherr mobile cranes ranging from 110t to 500t along with the powerful and compact Liebherr LR 1500. Al Faris added that it continuously invests in the latest, technologically advanced equipment and ensures the best solutions to its customers. Kieve Pinto, executive director, Al Faris said: “We have performed numerous heavy lifting operations for unique projects for more than 28 years and it has always been our priority to provide safe, innovative, and reliable equipment for heavy lifting, heavy transport and energy projects.” JULY 2021 09

LAUNCHES

MASSIVE REVAMP FOR THE SPORTAGE RANGE IS ON THE WAY / LIEBHERR LAUNCHES NEW DUMP TRUCK AND IT’S A MID-RANGE BEHEMOTH

LAUNCHES NEW LINE X-LINE TO DEBUT

The Sportage is reinvented KIA UNVEIL A RADICAL NEW LOOK FOR ITS VENERABLE SUV BRAND Kia Corporation has revealed the official images of the stunning all-new Sportage, an SUV, it claims, that has been carefully crafted to inspire customers with its interior and exterior design. According to Kia, the exterior challenges design norms and “moves the Sportage identity into the next generation, while paying homage to its rich heritage. Tense and crisp lines ripple along the refined body, amplifying dramatic styling tensions. At the same time, clean but muscular surfaces join forces with intricate graphics to give the SUV a dynamic and assertive road presence.” “Reinventing the Sportage gave our talented design teams a tremendous opportunity to do something new; to take inspiration from the recent brand relaunch

10 JULY 2021

and introduction of EV6 to inspire customers through modern and innovative SUV design. With the all-new Sportage, we didn’t simply want to take one step forward but instead move on to a different level in the SUV class,” commented Karim Habib, Senior Vice President and Head of Global Design Center. “When you see the all-new Sportage in person, with its sleek but powerfully dynamic stance, and when you sit inside the detailed-oriented cabin with its beautifully detailed interior and first-class materials, you’ll see we have achieved those goals and set new benchmarks. In the all-new Sportage, we believe you can see the future of our brand and our products.” Kia’s new design philosophy – Opposites United – is at the core of

the all-new Sportage, influencing every aspect of its appearance and character. The principles of Opposites United will influence all future Kia designs, giving them the same basic DNA. The thoughtprovoking and daring philosophy strengthens the connection between design and Kia’s new brand direction, ‘Movement that inspires’. The front of the all-new features a detailed-orientated black grille graphic stretching across the width of the face. The design is intended to resemble an intricate web, with a technical graphic which pulls together the main frontal features of the all-new Sportage, “crafting an imposing front volume”. The elongated grille links Kia’s modern signature Tiger Nose grille – that acts as the visual focal point of the car – to the distinctive

futuristic-styled boomerang-shaped DRLs (daytime running lamps), which in turn create solid boundary lines for the striking head lamps. The side profile of the all-new Sportage stays true to its sports utility DNA, with taut lines cutting across pure, clean but refined body surfaces that seamlessly blends the contrasting volumes together. Representing a first for the Sportage range, a black roof – a different colour paint option to the vehicle’s body – is now available with the new model, helping to accentuate the sporting profile and highlight the architecturally dynamic C-pillar that encompasses a deconstructed look. The addition of a chrome beltline kicks up onto the rear of the all-new Sportage and into the D-pillar, creating harmonious lines

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LAUNCHES

LIEBHERR GOES BIG

LIEBHERR LAUNCHES NEW DUMP TRUCK, THE T 274, A 305T BEHEMOTH

COLLABORATIVE EFFORT The all-new Sportage is the result of a collaborative effort between Kia’s main global design network in Korea, Germany, the US and China.

AT THE NERVE CENTRE The high-tech touchscreen pad along with the advanced integrated controller act as the nerve centre for driver and passenger connectivity, functionality and usability needs.

with the rear spoiler that further adds to the sporting pedigree of the car. For the first time in the Sportage’s history, a bolder model has been specifically designed to convey a more confident, vigorous and versatile character. The all-new Sportage X-Line features a unique bumper, side sill and curved roof rack. On the inside, customers can

choose between a signature sage green or black seating, as well as bold quilting and black metal wood to further bring to life “the model’s confident persona”. Due for global market launch later this year, more information on the all-new Sportage will be made available in due course but it is expected to feature petrol, diesel and hybrid versions.

Liebherr has launched its new dump truck, the T 274, a 305t machine that offers low fuel consumption and low costs per tonne while enabling faster cycle times and higher production. Describing the new introduction, Liebherr said in a statement that the T 274 is based on the company’s popular T 284 dump truck which has gained more than 20 million operating hours in the field. The new T 274 is also a perfect match with Liebherr’s mining excavators R 9800 and R 9600 and offers versatile solution for all applications, including extreme cold climate and high-altitude environments. It is also available with the Liebherr Trolley Assist System option to reduce fuel consumption and CO₂ emissions. The new 305 t Liebherr T 274 bridges the gap between the 363t-capacity T 284 and the upgraded T 264 with 240t capacity, said the company’s statement, which added: “Designed and adapted from years of experience in mining truck development, the T 274 is a true 305t machine that provides fast cycle times, higher production rates, low fuel consumption and a low cost per tonne. This new truck follows the same base design as the T 284, benefitting from its decades of field experience. Operators and technicians can expect to experience first-class comfort and safety while driving and servicing this truck. A wide range of

options are available, not only providing maximum productivity even in the harshest conditions, but also catering to the evolving requirements of customers and mine sites.” The Liebherr T 274 is powered by a 3,650hp engine, and Liebherr’s Litronic Plus AC Drive system. Speed on grade is a major contributor to fast cycle times while the Litronic Plus AC Drive System improves cycle time efficiency by providing continuous uphill speed, differing from traditional mechanical drive trucks that require shifting of gears. The T 274 is also equipped with 6,035hp dynamic braking power to operate safely and efficiently on downhill hauls. Pairing the T 274 with the R 9800 hydraulic excavator provides customers with a highly versatile and productive fleet. The fast swing times of the R 9800 will load the T 274 with four bucket passes ensuring quick loading times. SPECIFICATIONS Capacity

305t

Power

3,650hp

Driveline

Litronic Plus AC Drive

Gross vehicle weight

528t

Empty vehicle weight

223t

Breaking power

6,035hp

FULL-ON POWER 3,650HP ENGINE

SPECIFICATIONS Engine

1.6l

Electric motor

59 hp

Power

227 hp

Torque

350Nm

Zero emissions range

30 miles

meconstructionnews.com

JULY 2021 11

TRUCK&FLEET CONFERENCE UAE

“WE ARE BACK TO LIFE”

OEM experts from Daimler CV MENA, MAN Truck & Bus Middle East, Scania, Schmitz Cargobull and UD Trucks discuss the state of the industry in 2021, and beyond

tanding tall, a question is fired over from Engineer Fahed from Abu Dhabi Waste Management Centre to a panel representing many of the world’s biggest commercial vehicle manufacturers. Asking about the direction of local manufacturing, he both addresses the gathered experts and sums up where the sector is heading as we pass the mid-way point of 2021: “Finally, we come back from a virtual life to real life.” It has been a protracted return for the Truck and Fleet Conference UAE, after the event which mixes time in 12 JULY 2021

the hall with demonstrations and test drives of new trucks faced a COVID-19enforced delay. The OEM Roundtable proved that it has been worth the wait. Moderated by Vishal Pandey, partner – Automotive and Mobility Business, Glasgow Analytics Consulting Group, the panel featured heavyweights from the local supply chain, including: Olaf Petersen, general manager – Truck Sales, Daimler Commercial Vehicles MENA FZE, Erik Bergvall, managing director, MENA, Scania, Joerg Mommertz, SVP & head of sales, Middle East, Africa & Latin America, MAN Truck & Bus, Mourad Hedna, president

I see a trend in the market for more customisation to ensure vehicles are fit for purpose”

of UD Trucks Hub MEENA and Fabian Bahlmann, managing director, Middle East & East Africa, Schmitz Cargobull. For all, the session was an opportunity to share how they had stood firm in a challenging year. Erik Bergvall is responsible for Scania’s operation in the region and he explained that he believes there have been positive outcomes for the Swedish manufacturer and the way its local partners have worked with fleets during the pandemic. “Having everyone work from home; learning more about our teams, and so on, has got us used to interacting with customers through digital media. I would say that this meconstructionnews.com

TRUCK&FLEET CONFERENCE UAE

has opened up great opportunities to have more discussions with the customer,” he began. “We now have what we call digital value selling which is basically aimed at supporting the front line to our sales organisation in a better way through the regional office, with us bringing in expertise from the factory and competence into the discussions with the customer. Digital media opens up great possibilities in this regard.” In his career, MAN Truck & Bus’ Joerg Mommertz has worked his way up the corporate ladder from workshop mechanic to overseeing the German OEM’s business across four continents. He described Covid-19 as a challenge but an opportunity at the same time. “For us, that means, living in the customer’s proximity. Using modern tools of communication has helped a lot to stay close to the customer. We are using these tools actively in our sales and after sales activities,” he said. “I also see a trend in the market for more customisation to ensure vehicles are fit for a customer’s purpose and help give him the best fit for his business.” The supply chain, the movement of raw materials needed to manufacturer the trucks we see on the road, has suffered major disruption since the start of the pandemic. Mommertz said that the industry has been under price pressure from its suppliers in the face of rising commodity prices and the lack of availability of some materials such as semi-conductors: “The entire industry is getting stuck in the supply chain a little bit. You will still see this backlog until Q4 and it could last a little bit longer.” Like Mommertz, Schmitz-Cargobull’s Fabian Bahlmann describes himself as a truck man and he said that the trailer experts had seen a strong flow of orders since the end of 2020 amid rising demand in the refrigerated market as countries leaned into their transport network to survive. “Last year, there was certainly a dip but it’s a very busy period in terms of production right now,” he remarked. “The pandemic really has brought a focus on more localisation and more quality into that field and we bring in some answers in terms of increased quality and safety – not only in terms of road safety but also by meeting international standards in hygiene safety that can be applied to pharma distribution in the region. “Our challenge has been to be as close as possible to fleet owners in the meconstructionnews.com

region without traveling but we are happy to have a strong digital set up, not only in terms of consulting fleet but also on the after sales side. Workshops have been an important part for us throughout the pandemic to keep increasing the service level. The customer needs are changing.” UD Trucks’ Mourad Hedna said that COVID-19 has been an opportunity to address the key priorities for the now Isuzu-owned company. “I think it helps everybody to think again that nothing is granted and that health and safety is priority number one for everyone,” he commented. “And this helped us to

The pandemic really has brought a focus on more localisation and more quality”

reconnect more with our customers, to our dealers and to our partners. We put regular exchanges in place just to take care of check on families and colleagues. It was a good trigger to connect further in the network. “Covid has helped to accelerate some transformation. You are now talking more about digitalisation. It was clear with telematics and the other tools that are available, that it was easier to connect to customers to talk about their application, even when there was no face-to-face contact.” Prior to the start of the pandemic, Hedna said the UD was on track with its own ambitious regional strategy: “If I take the volumes for sure, the market was slower than it was before: there was a lot of uncertainty when it came to demand especially in the first months,” he recalled. “But the region was not the worst one to suffer. We talk about a 10-20% market slow down but it’s not as major as in some other parts of the world. Covid slowed down our ambition, but still last year we did better than the year before.” Like Mommertz, Hedna believes that raw material and its availability is a big challenge for the industry to face. “We used to have uncertainty of demand but now it’s a combination of uncertainty of demand and the supply,” he remarked. “In general, you expect demand but the supply not being there, or vice versa. So, this is the challenge that I think we are all living and we need to be really agile. We need to be entrepreneurial and to work

GETTING CLOSER TO THE INDUSTRY The OEM Roundtable panel agreed that Covid-19 has taken many customer discussions online which – in many ways – is helping to make specifications and support clearer and more fleet customer-oriented.

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hand-in-hand with our customers to better protect and to better serve them.” Daimler CV MENA covers 19 countries in this region from Morocco to Pakistan and looks after the German automotive giant’s buses and its two major truck brands for the region: Mercedes-Benz Trucks on the heavyduty side and MCV and LCV powerhouse Mitsubishi Fuso. General manager Olaf Petersen, who brought 23 years of experience with him into the OEM Roundtable discussion, described the global supply chain as currently vulnerable and under pressure. “Covid-19 has shown that the supply chain is not as robust as we all think. We have huge delays in shipping and container handling, as well as longer travel times in trucks because borders are closed. We couldn’t have really imagined anything like this before because we only know the big crises (like this) from Hollywood films. “We wouldn’t have thought that such a pandemic would hit us in this way. I think the world has become much more conscious in many aspects. We’ve seen that air travel was reduced tremendously and probably will not return to the same level again because businesses will go more for teleconferencing and for noncontact or non face-to-face meetings. “I think this will also trigger the world, in terms of environmental concerns, and we have seen during the pandemic, a huge increase in Europe in electric vehicles,” he said, adding that this rise has

I think in Dubai, electric vehicles would work fairly well”

partially been driven by extra incentives set by European governments. “So for example, in Germany, coming from nearly knowwhere, we are now at 13 percent share for electric vehicles. This trend will most likely continue. So, we will see this electric drive and we need to be prepared for it. We have a clear roadmap on what we want to do. We launched the eCanter in the US, Europe and Japan in 2017 and now have four years of experience. We will launch the eActros in Europe this year and we will continue with more and more products coming. For instance, we will have a long-distance truck in 2024

A POST-PANDEMIC WORLD The Covid-19 pandemic has been a boost for greener drivelines, although the region will remains largely dependent on traditional engines in absence of incentives and infrastructure.

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and then we are moving to the hydrogen technology. So, I think zero emission vehicles will come and this will definitely be a challenge for the industry here.” Elaborating on his point, Petersen predicts that the near-future for alternative drives faces relative uncertainty in the region compared to Europe and other markets. “We will still see that internal combustion engines will continue to a certain degree especially in the bigger countries. I think in Dubai, electric vehicles would work fairly well. But if I think about Saudi Arabia and the bigger countries, the infrastructure will not make it possible to enable either electric or hydrogen vehicles in the short-term.” Turning to what the legacy of Covid-19 could be for the industry, Mommertz said he sees one major positive. “Transport and logistics has been declared system-relevant and it has helped us to improve the image of our business and our customers business globally. Road safety and related technical solutions will not be your USP for any single car or truck manufacturer but the standard in the industry... the key is still behind the steering wheel – the driver.” He says Covid-19 will improve the image of drivers in the sector but merely investing and relying on technology is not enough. “This is why we have a strong focus on training, education of drivers because this is one of the key elements in the future besides all the technological development. We have a strong focus together in partnership with our customers to develop the necessary tools and instruments.” Bahlmann says that while the trailer firm is a vital part of improving fleet efficiency it also wants to drive safety. “On the trailer side, safety is very often is considered a cost. We really want to link to an advantage for the customer side. We’ve increased, or implemented, for instance, safety Systems, like electronic braking systems (EBS) for all trailers that we sell in the region. We’ve set certain standards on the trailer side, but we understand it comes at a certain cost and to constantly drive safety as well as efficiency is a constant challenge. He continued: “The trailer industry is a really raw material-focused business, so we try to be close to our customers to give them really reasonable prices for reasonable products. At the moment, there is a quite a lot of uncertainty on the supply side which generates a certain challenge meconstructionnews.com

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SURVIVING THE DIP The commercial vehicles industry experienced a dip in demand for new trucks in 2020 but the slump in sales was not as sharp in the region as it was in other territories.

for us to be reasonable on the customer side and we do this as good as possible.” Customisation is a word that comes up often during their discussion and Joerg Mommertz believes there is plenty of room of improvement and growth in the region. “Let’s say, in highly developed markets like Germany or Central European markets, highly developed markets, I would say 90% of the trucks are customised as a perfect fit for the customer’s purpose. In the Middle East, Africa and Latin America there is still a mixed stock built to order market but I see a trend towards customisation, let’s say in a degree of 50%.” Another major trend in the automotive market is a move towards digitalisation. Vishal Pandey asked the panel how the truck sector compares to the passenger car market when it comes to selling and purchasing online. “What we have found in the markets where we have launched virtual selling that customers are very, very open to this,” answered Scania’s Bergvall. “They want to discuss it with us in this way. The biggest resistance actually comes from our organisation as it is used to doing things in a certain way. We have to work to change that because at the end of the day, if the customer is happy with this then we have to change.” MAN Truck & Bus’ Mommertz adds: “But it depends also on the products. If you look at the vans segment, customers meconstructionnews.com

Covid slowed down our ambition, but still last year we did better than the year before”

are getting used to configuring (vehicles) using tools for digital business, but if you have a highly specified, heavy-duty off-road combination, the customer still needs and wants to have the direct contact and the direct sales support and advice from the salesman and technician. This will not change soon, the truck is still a little too complex.” Talking of complexity, vehicle finance remains an obstacle for fleets to navigate. Scania’s Bergvall said the firm has moved into providing its own financial solutions, and estimated that 65% of its deals are now channelled through its Scania Financial organisation: “It’s been very successful.

However a vehicle is financed Daimler CV MENA’s Peterson said that it is the task of manufacturers to work with the customers to optimise their operating costs. “We have the Fleetboard telematics system that is connected to 200 sensors in the Actros truck and we get a big amount of data from this system. This can help us to inform the operator on how to optimise the operation in terms of driver. And if the drivers are not performing, we have driver training to optimise and to improve. We can then track how drivers behave and which is a good driver and which is not a good driver.” Fleetboard can also be used to manage preventive maintenance, and Peterson said that this could potentially unlock savings to improve their operating costs. “In a competitive logistic industry, a 1% better operating cost is a key between profitability and loss. Our task as manufacturers to help our customers.” UD Truck’s Hedna added that a top-down approach taking a solution that works in other parts of the world is not enough on the local level. “Taking what we are developing in Europe or in Japan and copying and pasting the solution will not work. This means we need to start from the customers specification. The truck is the first step, so if it is not specified well it means that everything will be wrong. So definitely, it’s very, very important that whatever we do, starts from the customer and the customer needs.” JULY 2021 15

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SAVING TIME AND LIVES Johannes Faatz, head of Business Development, Daimler Commercial Vehicles MENA FZE explores why we all need a safer future

Road safety is something which concerns all of us, because every day, you open the newspapers and see pictures of accidents all around the world,” Johannes Faatz, head of Business Development, Daimler Commercial Vehicles MENA FZE tells delegates during the Truck & Fleet Conference UAE. Before leaving for the Radisson Red venue he had seen yet another story of an accident on the roads of the UAE. “It was just yesterday night in Fujairah. Luckily only an injury, so no fatality, but it’s a omnipresent topic, it’s everywhere in the world.” Like most of the transport and 16 JULY 2021

logistics industry, Daimler and Faatz believe one accident, is one too many. “We do not want to see pictures like that. We do not want to read headlines like this.” Fortunately, Faatz believes that progress is being made in the region, even if more could be done. “There are a lot of initiatives going on and we also see that here in the region initiatives can pay off,” he remarks, adding a caveat that statistics involving heavy vehicles are not always easy to find. “However just a few weeks ago there was an interesting article where you could see the number of road accidents and the

The number of accidents is declining, the number of fatalities is not declining as much”

number of fatalities in Oman. These are not heavy truck accidents but you can see from 2012 to 2018, that there is a significant decline of 66 percent in five years. However, you see that the number of deaths is not decreasing in the same manner. So, the number of accidents is declining, the number of fatalities is not declining as much… and of course, each accident, and each fatality is one too much because this person has a family, has partners, and so on.” Like Oman, the host country of this year’s Truck & Fleet Conference UAE is seeing that accident numbers are slowing down. “From 2018-2019, it went from 15 people meconstructionnews.com

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who died on the roads in Dubai to 11, but, still, it’s 11 too much,” he says and then adds that most manufacturers are cooperating with authorities to try to get information on what the reasons are for these accidents. “It’s quite challenging to get this data, however, in the European market, if we look into the types of series truck accidents, we see that one-third of them are rear-end collisions and nearly, 40% of them are truck guidance accidents. If we look a little bit deeper into that, we see that the rear end collisions have nearly 40% of cases where no brake was applied. That means, the truck went with full speed into the obstacle… that’s a 40t vehicle at 80km/h… what that means for the person in front for the vehicle in front. We also see that in that 40% of cases there were vehicles going into the stage of an emergency brake. However, they still hit the obstacle, there was still an accident but, for sure, a much more minor impact than if there was no brake at all.” Data from trucks is proving vital in unravelling the complexities of why accidents happen. And Faatz says that it is showing when a driver’s attention has wavered or simply lost control of the vehicle. He suggests that one-third of accidents could be avoided all together if the driver is fully aware of the danger ahead: “If you are attentive, you can still react.” Road safety is at the core of Daimler’s vehicle development and driving its advances in technology such as Active Brake Assist and Active Sideguard Assist. While it is primarily concerned with protecting road users it is also focused on the financial ramifications for fleets when accidents happen. “Each accident, of course, has consequences. There are repair costs. There are insurance rates which will be adjusted with each accident. There is the load, which is lost in such an accident but much, more important than that there are human beings involved,” he remarks. “There is also the company’s reputation. You don’t want to be on the headline. And of course, for the operators, there is the unplanned downtime. Every accident means the truck has to go to the workshop and needs to be repaired or even perhaps lost completely.” The truck industry continues to work on ways of reducing the risk of accidents, particularly dangerous rear-end collisions. Faatz runs through a list of technology that has been introduced, often on a mandatory basis, in the past couple of decades, including ABS. meconstructionnews.com

REDUCING ACCIDENTS The truck industry continues to work on ways of reducing the risk of accidents, particularly dangerous rear-end collisions, says Daimler CV MENA’s Johannes Faatz.

We found out that we have 50% less injuries in vehicles with active safety systems”

The electronic braking system has been a major advancement. Gone are the days of a purely hydraulically powered brake, says Faatz, noting that this must be installed on all trucks in some markets, such as Europe. “Now the impulse is getting to the brake much quicker than before that’s for sure an enhancement.” It has been a decade since electric stability control (ESC) or electric stability program (ESP) systems, where vehicle stability is controlled by a computerised system, was made mandatory in the US and in Europe (in 2012). He is hugely supportive or both industry and

governmental moves to improve safety. “There has been a big, big step forward in order to avoid rear-end collisions,” Faatz remarks, but adds that new active safety systems technology is now taking truck safety forwards at a rapid, if controlled, pace. “Vehicles above three and a half tons now need to have an advanced emergency braking system in Europe and rules to reduce the speed by 20% (came in 2018). ESP remains well-known but we also now have Lane keeping assist for instance… we were seeing a lot of straying off the streets as a reason for an accident.” He continues: “Data might vary from manufacturer to manufacturer, but in our field study, we found out that we have 50% less injuries if vehicles are equipped with active safety systems. Also, if you look into the cost of an accident, that we can be reduced even further by having active safety systems on our vehicles.” Faatz says that accident costs can be reduced by as much as 90% when the systems are installed, and Daimler has been instrumental in the development of active brake assist. He says that having introduced the system in 2006, the latest fifth generation of the technology which launched with with the New Actros goes beyond the existing European legislation. “With the fifth generation, we are able to have a vehicle which breaks to a full standstill whether it detects a moving or stationary obstacles. As well as pedestrians.”

PROTECTING THE INDUSTRY’S REPUTATION Investing in safety systems is not just about saving lives but also important to protect the reputation of fleets and the industry as a whole, says Faatz.

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ABA 5 ARRIVES ON THE FUSO CANTER Fuso has become the first manufacturer to add Active Brake Assist (ABA 5) onto its medium duty truck range.

He adds that Daimler has been successfully demonstrating the Active Brake Assist (ABA 5) system alongside its local partners in the region. “I personally was in walking in front of the truck or sitting behind the steering wheel and had somebody else walking in front of the truck. It’s quite an interesting feeling. I can tell you. It’s really an amazing feature.” Enthused he says ABA 5 is also now available on sister-brand Fuso trucks, he explains. “Fuso is now also the first manufacturer to launch this feature on a medium duty range. It’s not here in the region

Every accident means the truck has to go to the workshop or even lost perhaps completely”

at the moment, but we will move forward as well here in the region.” “Safety is one of our key elements,” he says firmly. “We worked on that well, in advance, and we are not waiting for the regulation to come up to the system’s level.” Daimler now has an array of safety technology loaded onto its latest trucks. Every fleet can install Active Brake Assist (ABA 5), Sideguard Assist with pedestrian and cyclist detection, Active Drive Assist for partially automated driving (SAE level 2) as well as the much-lauded MirrorCam systems that was demonstrated at the 2019 Truck & Fleet Conference.

He recalls that that event was an opportunity to showcase the region’s first semi-autonomous driving vehicle after it had completed a series of test runs, including marathon haul between Dubai and Abu Dhabi. “We wanted to show that the technology is possible here in the region as well because the main tests are done in our home markets in Europe, in North America and in Japan. But we decided at that point in time that we want to show that the UAE is ready for this technology. We showed that it is possible to have a truck driving semi-autonomously. “We proved that with the support of some of our partners in the industry, it was possible. It is available for sale. We are not talking about a technology which is only available in five years or in 10 years. Customer who is interested in that can buy it now.” On the theme of new technology in the market, June saw the roll-out of the new Active Side Guard Assist system – which features an automated braking function that not only warns the driver but initiates an automated braking manoeuvre until the vehicle comes to a standstill – on the Actros and Arocs. Faatz explains that if a truck is turning around the corner and there is somebody in the blind spot the vehicle will stop automatically. “This is one of the main causes of accidents in Europe when you have a bicycle next to the truck. The truck driver can’t see the person on the right side.” Additional windows installed in the truck cab are compulsory in certain countries but he says Daimler does not believe that this it is enough.

AN ARRAY OF SAFETY TECHNOLOGY LOADED ONTO ITS LATEST TRUCKS Daimler has been instrumental in the development of active brake assist. Faatz says that accident costs can be reduced by as much as 90% when its safety systems are installed.

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ACTIVE SIDE GUARD ASSIST LAUNCHES June saw the roll-out of the new Active Side Guard Assist system which features an automated braking function that not only warns the driver but initiates an automated braking manoeuvre until the vehicle comes to a standstill.

“That’s why we went to the next level with the Active Side Guard Assist system.” To emphasise why Daimler is committing its vast resources to improve vehicle safety technology he turns to the impact of mixing them with regulation has had in Europe. “In 2001, we had a certain number of road accidents and we were able to reduce the number of road fatalities by 50%. The European commission is setting very ambitious targets of a further 50% reduction but we will most likely not be able to achieve this figure. So it’s not only about having these systems inside the vehicle, or providing these systems, there are a lot of people involved in making roads

We have to offer more education to drivers. We are pushing that”

safer and in order to reduce accidents.” Faatz believes the onus is now on the industry and its stakeholders. Whether you are an OEM, a fleet operators, a driver, it is your responsibility to do what you can to save lives. He argues that a lot of work should be done to improve truck driving training. “I think we as a manufacturer we have to offer more driver training; we have to offer more education to drivers. We are pushing that. We support that with every vehicle when it is handed over. It’s not just handing over the key, there needs to be a complete introduction to the vehicle because if the driver does not know what systems he or she

has, how should they use it? So that’s key.” Beyond the training, telematics in the market, such as the Fleetboard system offered by Daimler, should be used by more fleets to control how the drivers are interacting with the vehicle and “how is he or she using the engine brake.” He continues: “Are there any harsh braking activities? We use that in order than to further educate drivers. “I think there is a bunch of possibilities but it has to be done. Yeah, we have to offer that. The customer has to accept that the driver needs to have the time in order to do that. It has to be a joint activity.”

AN ARRAY OF NEW SAFETY TECHNOLOGY ON THE RANGE The European commission is setting very ambitious targets of a further 50% reduction in accidents and Daimler is committing its vast resources to improve vehicle safety technology.

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ACHIEVING THE ALTERNATIVES

Hans Wising, sales director, Scania Middle East shares his insight into how users of heavy trucks can transform into truly sustainable fleets

want to give an introduction into how Scania has seized upon sustainability, what we do, and hopefully, create some inspiration: the question is what can you do as a company and as users of of heavy trucks? Driving Scania’s shift into sustainability has become our purpose and part of our core strategy. Together, with our customers and partners, we are driving the shift towards a sustainable transport system. We need to break away from the correlation between increasing demand for transport and the increase in carbon emissions, noise, congestion and accidents. 20 JULY 2021

We are investing a lot in finding sustainable solutions. And Scania also believes that sustainable solutions will be the new normal. This will be the case in the future. It may already be here today but it will be even more important in the future. Sustainability is not all about environment and safety and so on, it is also about economical sustainability. If the industry is going to be sustainable in the long run, it also has to make economic sense and we believe that this can be achieved. However, we cannot do this on our own. We need all of you. We need all of the different stakeholders in this. We are

We believe that sustainable solutions are the new normal”

trying to work with the buyers of transport services. We’re also trying to work with the operators, the transport companies, of course, as well as infrastructure partners, and governments and academia, and so on. Afterall, we need to look at the whole ecosystem of transport to make it sustainable. Another way to look at sustainability is to look at the product life cycle. This is a different perspective on it, but all along the value chain we have an impact on the environment, and we have an impact on people’s lives. In a way, it all starts with R&D (research and development). We spend about 650 meconstructionnews.com

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million euros per year on R&D and the major chunk of that goes into sustainable options. Then, we have the whole organisation with the production, the sales, and so on. Globally, we have about 50,000 plus employees. Each and every individual has an impact as well and we have the whole supply chain network. We are working with all of this, with our suppliers, with our employees, however, Scania’s challenge is that our main carbon footprint is coming from when our products are in use. Over 90% of our CO2 footprint comes from the use of our products. So of course, there we need to put in a lot of effort. We have signed up to the sciencebased targets as part of an initiative to reach the goals of the Paris agreement of limiting, the global warming to maximum 2o Celsius. If all the companies around the world sign up to this and do their part, we would reach these targets. We were one of the first ones in the industry to do so and are looking at our footprint, our operation and have set a target of reducing our CO2 emissions by 50%. With the major aspect being when our products, we are targeting a reduction of 20% there, but how are we doing that? Primarily, we are improving our current range of products including our internal engine efficiency as demonstrated by the new technology introduced in out New Truck Generation which was recently launched in the region. And there are more improvements to the internal combustion engine that will come in the near future. To achieve smart, safe and sustainable transport we need to take out waste from the whole logistics chain. Connected vehicles are giving us very valuable input into R&D and how to optimise Scania’s products. We have close to one and a half million vehicles with connectivity solutions installed and thse are helping to improve vehicle specifications and, most importantly, provide insight for the operator to see how they can optimise their feet. When we talk about sustainable transport in everything we do, we need to look at energy and eficiency. Regardless of what it is, if it’s a diesel engine or an electric motor. One important area for Scania is working with customers on driver coaching and optimising truck specifications for their applications. While it is something that we are already focus on, there are meconstructionnews.com

further improvements being made on this. There is a lot to gain by optimising the specification for each and every application. For instance, traditionally, a 6x4 truck has been used for fuel distribution. Now with a 6x2 such as the one demonstrated at the Truck & Fleet Conference, we can reduce the fuel consumption. The beauty of it is that by saving the environment, it’s also saving money. We also need to work with renewable fuels. Some of the fuels when it comes to CO2 reductions that we have or that we can use, include compressed biogas as well as CNG and LNG. The typical reduction in

To achieve sustainable transport we need to take our waste from the logistics chain”

CO2 with gas is something between 50 to 90% typically but it is also around 70 and 80% for HVO (hydro-treated vegetable oil). This is also a fuel that is not readily available here in this region but all Euro 5 and Euro 6 engines can work on HVO. Switching is relatively straightforward and our engines can basically work on any blend of biodiesel with a bit of adjustment. Using 2015 as a base level by 2025, we should reach a 20% reduction in emissions. Some of this reduction, will be achieved by fuel suppliers adding biodiesel into the fuel mix. We don’t see this fuel used extensively in the region compared to other parts of the world but we believe it is improving. In the last year, Scania introduced a number of products in a number of selected markets and more will come. And hopefully we will soon see electric vehicles here in our region. Electrification will be a very important part in achieving sustainable transport. However, electrification is not the sole answer. Electric vehicles can play a big part in achieving our goals but it must come from a green source – if it comes from a coal or oil power, plant than we don’t do not have any reduction in emissions, we probably have the opposite. The industry must realise that there is no single silver bullet for this. There are different solutions and we believe that different solutions will be suitable for different type of operations and different locations.

A SHIFT INTO SUSTAINABILITY Shifting into sustainability has become “our purpose and part of our core strategy,” says Scania’s Hans Wising.

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FLEET FINANCE: ARE WE MAKING PROGRESS?

Patrick Ger Regan, founder, SAMA Capital Equipment Management, says that flexibility is needed to make the most of changes to financing in the UAE Most of the recent regulatory changes that have happened in the UAE over the last 14 months, and during the Covid-19 period have mostly kept under the radar. You may have read about them, but how do these impact your business?” Asks Patrick Ger Regan, managing director and founder, SAMA Capital Equipment Management. Regan, an advisor of regulatory changes to equipment financing in the UAE, recently started the business having left the banking and finance sector with the “objective of raising liquidity in the market by finding routes for equipment and vehicles” to get 22 JULY 2021

into, what he defines as secondary global markets. He has also developed a corporate financing model, he says, that integrates with distributors and OEMS to support their fleet and contractors through the maze of debt financing and equity releasing when a project or lease term ends. He starts with some advice for those supplying the market: “When an OEM or distributor meets their customers, the key themes they need to be addressing are on how liquidity is impacting the business, whether they’re struggling or whether they’re flying.” Having departed his role in equipment financing for a major UAE bank, Regan

It’s not a case of bounce a cheque, go to court and shut the company down”

says SAMA is already partnering with banks, financial companies and leasing companies to look at ageing or stressed assets and recovery, as well as debt management, repossession, liquidations. This may sound intimidating like finance jargon to those buying or leasing equipment and vehicles, but Regan hopes that changes in the market can protect the complete chain of businesses involved in the sector – if they understand how to use them. “It’s all part of the UAE regulation that’s being imparted over the last 12 months. It has changed the way we go about doing business,” he explains. meconstructionnews.com

TRUCK&FLEET CONFERENCE UAE

SAMA is working with Invigors EMEA, a global leasing and asset management consultancy firm, to try and help the delivery of future regulation and changes in the region. “Being able to bring someone like Invigors to the table, helps to try and see where we can impart this regulatory position and how distributors, OEMS and their family-owned partners can look at the risk management side; the operational function and how you can go about installing change and how it is going to impact your business.” The past few years has seen the introduction of the Emirates Movable Collateral Registry which has enabled banks to recover assets in the event of a default on a loan or mortgage. Regan explains that distributors and importers should be using the mechanism to add a layer of security to their lending. He adds that he has seen an alignment between insolvency and bankruptcy laws in the UAE over the past 12 months, and this is leading to a change whereby a default on a loan no longer needs to be resolved in court. “In the event of a default – or in the event of challenges that a client has – the courts are no longer the first point of call. It’s important to instill the mindset that lenders must take steps to provide clients with some form of self-remediation. There has got to be some form of steps taken to support the customer and help that SME survive.” He tells distributors: “You may have a certain quantity of fleet on finance with the bank and you may have a certain amount of fleet on book with yourselves. Now, how do you integrate when a both channels of recovery are coming through different paths? There are now steps to be taken in liquidation to ensure secured assets obtain their maximum value. It’s not a case of bounce a cheque, go to court and shut the company down. There’s now steps to be taken to relieve that pain point.” Regan says there are now 841 articles to be complied with under the latest consumer protection laws in the UAE. “Now, depending on your position as a distributor, you may have finance partnerships in place for a self-employed customer when they come to buy a 4x4, or a crew cab and pickups. In the future, your finance partners are going to have to go through a number of additional key steps such as understanding the loan, the cost of the loan, and more. It’s not just a case of submit bank statements, off you go and meconstructionnews.com

the loan is approved. All aspects have to be disclosed to the client before a finance loan can be taken on a particular vehicle.” Having given an overview of current law, he says sources for funding of loans are now much thinner on the ground. In the past five years, the UAE market has seen a reduction from 13 banks and half a dozen other financial institutions to just nine active banks to turn to. “These were major sources of funding for SMEs and this is something we are going to have to address. In comparison, with the impact of new financing regulation, in Saudi Arabia there are now 20 institutions. Granted,

What we’re trying to establish is a roadmap towards flexibility and opportunity”

SIGNS OF IMPROVEMENT Regan has high hopes that incoming UAE leasing laws will reflect the way distributors are broadening their financing options and will allow for greater flexibility in liquidating assets such as vehicles.

the market is a lot bigger but there are 13 finance leasing companies that are purely working with a distributor or an OEM to directly and actively lend in the SME space.” The current challenge then for distributors in the UAE is how to balance ensuring vehicles and equipment keep moving in the market – and a source of revenue – with the complexities of understanding resale values down the line and the pitfalls of new financing or lease-to-own models they may not be set-up to handle. Fortunately, he says moves are being made at a regulatory level that could ease funding in the market. “We had to go back to the drawing board again. During the course of 2020, I made it my business to really integrate myself into where the law was at, what was happening with it; how it is being written, and who was in control of it? By the end of last year, the law has been rewritten as per the Ministry of Finance – and with support of the international Finance Corporation – and the expectation is that a draft of the revised law is to be implemented this year.” “Within the UAE leasing law, we need to see, clinically, a recognition of the structures of modern finance lease concepts; definitions of duties, provisions for lessee duty to pay; a lessors lack of equipment responsibility post-acceptance; a lessee to have stated recourse against the supplier; the equipment not to be liable to other creditors; evidences of a assign-ability. And, most importantly. it must have expedient measures for repossession in the event of default.” Through his work with government agencies and the OEM/distributor channel, Regan believes that there is an opportunity for collaboration that could make funding not only easier but far more flexible. “What we’re trying to establish is a roadmap towards flexibility and opportunity and I believe we’re getting there. But the biggest challenges are across operational structure...the regulatory governance, the risk management side of it and then the legal application side of it. “I’m trying to achieve what all distributors, SMEs in this region want, a model of flexibility within deals, where three trucks could be financed for a period of four years, but after two years, they can be handed back and three are handed out again. “What we need to do now is sit down with the industry and see how we can implement it.” JULY 2021 23

WORKSHOP

THERMO KING UPGRADES ATHENIA / AUTOCENTRAL AND BAIC MAKE DEAL / BENTLEY AND CONTINENTAL SEAL PARTNERSHIP / JLR USING FCEV ON DEFENDER

WORKSHOP

Athenia gets a fine tune THERMO KING’S NEW SYSTEM PROMISES TO BE A BREATH OF FRESH AIR FOR HYBRID AND ELECTRIC BUSES AIR COOLING

Thermo King has introduced a new CO2 sensor to its Athenia MkII Electric heat pump range for hybrid and electric buses. The new sensor optimises the fresh air ventilation rate and increases the air flow by actively monitoring and controlling the CO2 levels inside the bus. The company further explained that the sensor helps maintain the right balance between the ventilation rate and energy consumption of the HVAC unit, while also positively impacting the driving range of the electric bus. “Traditionally, HVAC systems designed for electric buses manage the energy consumption in order

to extend the driving range of the bus. This often means reducing the amount of fresh air entering the passenger area,” said Peter Hansen, product leader at Thermo King Marine, Rail and Bus. “Industry and health organisations recommend increasing fresh-air supply and improving ventilation of closed spaces as one of the contributors to decrease potential airborne transmission of viruses. We designed the new sensor to better monitor and control CO2 and aerosols levels inside the bus, and more efficiently manage the ventilation flowrate.” The Thermo King CO2 sensor is easy to install and was designed to work with the Thermo King CAN

UPGRADING ON THE MOVE If a bus is already equipped with the new sensor, upgraded Thermo King proprietary monitoring software can be uploaded and enable the new features.

communication system. If the bus is already equipped with a CO2 sensor, upgraded Thermo King proprietary monitoring software can be uploaded and enable the new features. According to Thermo King key benefits of the new sensor include: quick and easy installation on Thermo King Athenia™ CAN based units; seamless adaptation and not visible to passengers; active monitoring of the CO2 PPM levels inside the bus and management of fresh air supply by the Athenia unit; step-less drive of the fresh air flaps to provide smooth operation and optimised ventilation; and “optimised control and balance between energy conservation and ventilation”.

AUTOCENTRAL AND BAIC MAKE SERVICE DEAL WORKSHOPS

Al Masaood Group’s Abu Dhabibased multi-brand service and repair centre will now oversee general and mechanical repairs of Chinese firm BAIC’s passenger vehicles in the UAE. BAIC is one of China’s largest automakers by volume and under the terms of their partnership, AutoCentral will cover repairs provided by auto body insurance coverage. This new cooperation encompasses a range of services, including quick lube, periodic maintenance, tyre change and servicing, and battery replacement, said AutoCentral. Its team of experienced and qualified technicians will also extend brake and suspension repairs, engine repairs, electrical repair service, A/C maintenance and repair, troubleshooting and diagnostics, body and paint repairs, SMART repair, and value-added services.

INSIDE THIS MONTH’S WORKSHOP: HOW THE AFRICA AND MIDDLE EAST MARKET IS EVOLVING, PLUS THE FUTURE OF MOBILITY

24 JULY 2021

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WORKSHOP

BENTLEY TURNS TO CONTI FOR AMBITIOUS CHALLENGE

DEFENDER TRIALLING FCEV TECH ENGINES

Jaguar Land Rover is developing a prototype hydrogen fuel cell electric vehicle (FCEV) based on its New Land Rover Defender, with testing scheduled to begin this year. The FCEV concept is part of JLRs aim to achieve zero tailpipe emissions by 2036, and net zero carbon emissions across its supply chain, products and operations by 2039, in line with the Reimagine strategy announced last month. FCEVs, which generate electricity from hydrogen to power an electric motor, are complimentary to battery electric vehicles (BEVs) on the journey to net zero vehicle emissions. Hydrogenpowered FCEVs provide high energy density and rapid refuelling, and minimal loss of range in low temperatures, making the technology ideal for larger, longer-range vehicles, or those operated in hot or cold environments. Since 2018, the global number of FCEVs on the road has nearly doubled while hydrogen refuelling stations have increased by more than 20%. By 2030, forecasts predict hydrogen-powered FCEV deployment could top 10 million with 10,000 refuelling stations worldwide. JLRs advanced engineering project, known as Project Zeus, is part funded by the government-backed Advanced Propulsion Centre, and will allow engineers to understand how a hydrogen powertrain can be optimised to deliver the performance and capability: from range to refuelling, and towing to offroad ability. The zero tailpipe emission prototype New Defender FCEV will begin testing towards the end of 2021 in the UK to verify key attributes such as off-road capability and fuel consumption. To deliver Project Zeus, JLR has teamed up with world class partners to research, develop and create the prototype FCEV.

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TYRES Bentley has launched a major new sustainability initiative, with the announcement of a renewable fuels research and development programme spearheaded by the most extreme road-car-based Bentley in its 101 year history. The Continental GT3 Pikes Peak, designed and built to compete for the Time Attack 1 record at this year’s Pikes Peak International Hill Climb, will be the first competition Bentley to run on renewable fuel, ahead of a goal to offer sustainable fuels to Bentley’s customers around the world. The modified Continental GT3 racer, based on Bentley’s raceand championship-winning car, will power its way through the 12.42-mile course running on a biofuel-based gasoline. Various blends of fuels are currently being tested and evaluated, with possible Greenhouse Gas

TARGETING A HIGH SPEED RECORD The GT3 racer will need to complete the 5,000 ft climb in under 9 minutes and 36 seconds.

(GHG) reductions of up to 85% over standard fossil fuel. The company said in a statement: “Bentley’s ambitious and transformational Beyond100 programme will see the brand become the world’s leading sustainable luxury mobility company, with the entire Bentley model range offered with Hybrid variants by 2023 ahead of Bentley being BEV-only by 2030.”

To break the record, the car will have to complete the nearly 5,000 ft climb, which includes 156 corners, at an average speed of more than 78 mph to cross the finish line in less than nine minutes and 36 seconds. Bentley has once again turned to threetime Pikes Peak champion and former “King of the Mountain’ Rhys Millen (NZ) – who holds Bentley’s two existing Pikes Peak records.

TOTAL OPTS FOR OPEN BONNET

ENABLING ONLINE PURCHASES Through Open Bonnet’s platform, customers will be able to choose Total Lubricants seamlessly from online purchase to booking a choice workshop.

LUBRICANTS

Total Marketing Middle East (TMME) has signed a Memorandum of Understanding (MoU) with Open Bonnet which will see it collaborate with the UAE-based aftermarket Online to Offline (O2O) cloudbased auto services and products platform company. Open Bonnet offers 360-degree services to car owners operating in the GCC and the firms explained that the MoU

spans the entire digital value chain “whereby TMME and Open Bonnet shall seek opportunities to collaborate in the auto aftermarket segment”. In a statement they added: “The two companies share the same vision: customer satisfaction as a priority. Together, they will achieve this by offering customers with transparency and an optimised digital journey.” The Open Bonnet platform offers a marketplace that allows car

owners to choose & connect with one of its 70+ verified workshop partners through an end-to-end digital experience. TOTAL is the preferred lubricant partner on Open Bonnet with a listing of more than 25 TOTAL authorized service centers. This partnership ensures quality, trust and convenience to end customers. TMME managing director Karine Singh said: “We are delighted to be closer with our end-customers, while expanding our e-commerce presence. Through Open Bonnet’s platform, customers will be able to choose Total Lubricants seamlessly from online purchase to booking a choice workshop.” Open Bonnet’s Gaurav Sharma believes technology is a powerful enabler to answer some of the age-old inefficiencies and pain points that exist in the auto after-sales experience. “We have attempted to bring standardisation, transparency and convenience for car owners.” JULY 2021 25

FEATURE

LEASED OUT

Leasing and fleet powerhouses highlight the challenges facing the AME region at the Global Fleet Conference (GFC)

he recent – virtual – Global Fleet Conference (GFC) highlighted that Africa and Middle East (AME) present both challenges and opportunities for multinational fleet and leasing companies. During the event, leasing and fleet providers said their industry must find the right balance in each country in the years ahead. The AME region is divided into three distinct areas: the Middle East, in which innovation is beginning to take hold; Northern and South Africa, where vehicle fleet management and leasing have reached a certain maturity; and Central Africa where implementing best practice, as in other regions like Europe and North America, is extremely difficult. 26 JULY 2021

Conference speakers included Thierry Domballe, Director Fleet & Leasing, Loxea - Avis Fleet and Sandrine Garcia, General Manager AMI Sales, Nissan Motor Corporation and a walk in by Huub Smeets, Global Procurement Manager, Fleet and Travel, at Philip Morris International. Africa – a hub for used cars

Introducing the AME market facts and stats, Sahand Malek, Fleet Europe Expert, described Africa as vibrant but that it’s also one of the most challenging markets for fleet and leasing. A continent of 1.3 billion inhabitants (16% of the world’s population), 60% of whom are under the age of 25. Of the 1.17 million vehicles registered in the region in 2019, only 10% of those that were imported were new. Africa

The automotive industry is still underdeveloped with only a small number of OEMs”

is one of the largest markets in the world for second-hand vehicles, with the average age of those on the road being over 12 years old. In some countries, such as Uganda, that number can rise to 20 years. Thousands of used vehicles are exported from North America, Europe and elsewhere into African countries every year. Although this provides cheap cars for citizens, it also contributes to high levels of pollution and safety issues and the continent is often treated as something of a “dumping ground” for the worlds used cars. Strong enabling policies, tax incentives and subsidies required to build the infrastructure that supports clean, modern transport systems is missing in Africa. There are too many competing priorities for limited government funding. meconstructionnews.com

FEATURE

A lack of connectivity and digitisation is also a barrier. Although the continent’s population is young and receptive to technology, only 24% of it has access to mobile internet. A third barrier is the automotive industry itself, which is still underdeveloped with only a small number of OEMs present and an even smaller number of local car manufacturing brands.

has its share of electric mobility projects and Egypt’s 2030 plan is to increase the quality and capacity of public transport in cities. Saudi Arabia has one of the largest state-owned fleets and its ‘Vision2030’ is an ambitious plan to further develop transport infrastructure. Iran has the largest number of mobile users, which means there are apps for last-mile deliveries, ride-hailing and bike sharing.

Growth in African mobility

Car dealerships rule

Africa has access to many resources, such as solar energy, which makes it a positive place for PV charging stations and electric vehicles. It’s also leading the way in innovative uses for second-life batteries. Rapid urbanisation has resulted in an increased demand for vehicles with people opting to own a car rather than use public transport. Consumer acceptance is high because of the continent’s young generation, willing to embrace technology and digitisation. Mobility and fleet management demand is following these developments. In Nigeria and Ghana, the urban population is large and demand for new mobility products is growing. Egypt, Morocco and South Africa have mature leasing and fleet markets, which are expanding. The National Climate Change Action Plan in emerging countries like Kenya, have prioritised electric mobility. The leasing and fleet management markets are still in their infancy with only ALD Automotive and Arval active in northern and south African regions. But this lack of global players provides an opportunity for local companies to offer leasing products. In Ethiopia, with a lower number of cars per 1,000 inhabitants, car rental is on the rise. South Africa has the most mature fleet and telematics market. Global players such as Cartrack, MiX Telematics, Netstar and Ctrack offer services like theft prevention, vehicle tracking and fuel monitoring.

The UAE has an advanced car rental and leasing market and the most well developed public transport infrastructure. Dubai and the UAE have both publicly stated their ambition to have 25% of vehicles autonomous by 2030. Car dealerships are the primary source of contact for fleet customers for leasing deals and telematics offerings. But leasing is not standardised in the region because banks must offer Sharia-compliant finance products. There’s a sense of pride in car ownership and cars are seen as status symbols, so it’s hard for people to understand the benefits of leasing. Global leasing companies can fast-track their way to market by partnering with local players in the MEA regions. Africa, for example, can be seen as the final frontier in the fleet and leasing industry and is ready to embrace emerging trends of mobility and alternative energy solutions. For the Middle East, the advice is to think global and act local, respond to opportunity with solutions but with flexibility – bend to the way of the market, don’t expect it to bend to you.

is one of the highest in the world). Public transport is largely unavailable and high. But with oil prices low, people prefer to use their own private cars. Environmental consideration is not a priority as the regional economies rely on oil. That said, many countries are trying to diversify their economies so they are not so dependent on oil. Saudi Arabia and the UAE are leading the way with smart mobility. In 2020, Turkey invested $5.7 billion in developing transportation and infrastructure, despite the global pandemic. Turkey has a growing number of fleet management service providers and global leasing companies. Israel has a mature fleet and leasing market comprised of tech-driven players. Jordan

Africa is leading the way in innovative uses for second-life batteries”

Middle East – play by the rules

Richard Sikkel, CEO of Massar Solutions, underlined that the Middle East is a strategically important market but don’t expect to find everything from one leasing provider. With 246 million inhabitants in 15 countries and a young population, the demand for new passenger cars is high and there were 2.12 million purchased in 2019. Turkey and Iran have vehicle production units and the region owns or controls 64.5% of the world’s oil reserves. Rapid urbanisation, however, has caused challenges like traffic congestion and transport safety issues (the number of road traffic deaths meconstructionnews.com

CONGESTION AND SAFETY ISSUES TO ADDRESS Rapid urbanisation, however, has caused challenges like traffic congestion and transport safety issues. The number of road traffic deaths in the AME region is one of the highest in the world.

JULY 2021 27

FEATURE

THE FUTURE OF MOBILITY

Bang Sun Jeong, Vice President, Head of Middle East & Africa Operation, Hyundai Motor Company looks at the emerging technology shaping mobility 28 JULY 2021

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FEATURE

ith climate change continuing to be an important topic around the world, more questions are being asked of how automobile manufacturers can help reduce the emissions that are being produced by vehicles on a daily basis. According to statistics from the International Energy Agency, road transportation accounts for three-quarters of transport emissions while transportation alone makes up one-fifth of global carbon dioxide emissions. It is a significant problem and one that simply cannot be ignored. In recent years, several vehicle makers including Hyundai Motor Company, have committed to play their part in addressing this issue by providing clean mobility. We are already seeing the beginning of this with many clean and energy-efficient vehicles being driven on the roads today. Most of them are battery electric vehicles (BEVs) which are becoming an increasingly popular choice for consumers today. It is easy to see why. Many governments around the globe have rolled out financial incentives to encourage the adoption as part of its long-term strategy to go green. For instance, the United Kingdom is set to ban the sales of new cars and vans that are powered by diesel or petrol from 2030 while the American government has pledged to invest heavily in clean energy including electric vehicles with plans to install 500,000 new charging outlets by the end of 2030. This would be a huge jump given there are currently less than 29,000 public EV chargers across the U.S. Although these plans would help accelerate the sales of BEVs, trying to change the majority of people’s behaviours to switch to ‘greener’ and sustainable vehicles will not be easy. How long would it take to charge? Is it affordable? How far would consumers be able to travel and how long would the batteries last before it needs replacing? These are just some of the questions being raised by potential new buyers before making the final decision and doing their part in protecting the environment. Many of these answers are largely down to the use of advanced technologies and how practical they are. Today, more organisations within the industry are collaborating to leverage different forms of technologies to develop vehicles and infrastructure that will make BEVs a climate-friendly way to get around. While these are big steps forward, BEVs meconstructionnews.com

XCIENT EXCITES MARKET Hyundai Motor has already started exporting its XCIENT Fuel Cell, the world’s first mass-produced fuel cell heavyduty truck – with 2,000 units being developed per year by 2021 to support expansion in Europe, the US and China.

are not the only transport solution that will help make our cities and towns cleaner. Hydrogen power has been on the market for many years but in a very limited capacity. Yet, it has been identified as a key green transportation technology and in recent years, Hydrogen, the most abundant element on Earth, has become a vital resource in the automotive industry. Hydrogen cars or fuel-cell electric vehicles (FCEV) as they are widely known today are unlike BEVs. Firstly, FCEVs are installed with a hydrogen tank that enters the fuel cell using a combination of hydrogen and oxygen which generates electricity to power the motors. This means that hydrogen cars have characteristics of both electric cars

The Kingdom of Saudi Arabia is among countries that already have installed a H2 fuelling station”

due to the use of electric energy and conventional petrol cars which have tanks. As well as reducing carbon footprints and greenhouse gases, another difference is that FCEVs do not require consumers to plug in the vehicle to an outlet for refuelling which can be done between five and 10 minutes. For example, the Hyundai NEXO Fuel Cell only needs less than five minutes to refuel for a driving range of up to 380 miles. To put that into perspective, that is almost the distance of a full-round trip between Washington DC and New York compared to BEVs which can range between 100 and 200 miles. Furthermore, FCEVs can store more energy at a lower density while hydrogen is a more sustainable and long-term fuelling option that can be used for long periods without even harming the environment. Despite these positives, one of the biggest challenges is costs. Although a variety of FCEVs have been rolled out in the last two decades including Hyundai’s Santa Fe FCEV –the Company’s first fuel cell EV and the world’s first mass-produced FCEV Hyundai ix35, the demand is relatively low. There are many reasons for this but one of the main problems is that they are expensive to buy. This is largely down to manufacturing and technology costs which will only drop when production numbers rise. Even if consumers can afford a new FCEV, there needs to be a substantial number of Hydrogen fueling stations across all countries and these facilities will only be built by fuel companies if there is enough business. However, the Kingdom of Saudi Arabia is among the countries that already have installed at least a fueling station which shows that some nations are more than ready to welcome hydrogen-powered vehicles to their roads. It is clear that BEVs and FCEVs have the advantage of producing zero local emissions and at Hyundai Motor, we see a bright future for both types of vehicles. It is part of our vision to produce automobiles that are sustainable and eco-friendly. Yet, we realise that a huge amount of work needs to be done to provide a clean mobility landscape. As part of our long-term strategy, Hyundai plans to roll out at least 12 BEV models with the objective to sell 560,000 EVs per year by 2025. During this same period, Hyundai Motor Group, plans to expand its BEV lineup to 23 models by 2025 with the goal to sell 1 million units annually in global markets. At the same time, Hyundai Motor Group has set out its ‘FCEV Vision 2030’ JULY 2021 29

FEATURE

roadmap, reaffirming its commitment to accelerate the development of a hydrogen society by leveraging its global leadership in fuel cell technologies. During the next nine years, Hyundai Motor Group aims to secure a 700,000-unitsa-year production capacity of fuel cell systems for automobiles as well as for non-automotive sectors, such as vessels, rail cars, drones and power generators. As for fuel cell vehicles, Hyundai Motor has already started exporting its XCIENT Fuel Cell, the world’s first mass-produced fuel cell heavy-duty truck. If members of society are to shift to these vehicles, it would require policy-makers, governments and industry experts to work together and overcome any challenges. It is simply not enough to develop these vehicles for the roads in mass production unless there is sufficient infrastructure in place and are affordable to buy and operate. Therefore, resourcefulness will be key to clean and sustainable mobility. Rising UAMs

The rise of advanced technologies has meant

Road transportation accounts for 75% of emissions”

the automotive industry is continuing to change at such a pace that travel concepts that we had never imagined before or once saw in sci-fi films could soon become a reality in the coming years. At a time where automobiles have become the most popular and convenient choice of transport for millions of people around the world, plans are already being drawn up on how to take the everyday modes of travelling to the next level. The opportunities are endless but by simply looking beyond the roads, Urban Air

INEVITABLE NEW TECHNOLOGY Bang Son Jeong believes it is inevitable that we will be seeing more BEVs and FCEVs “being driven in the future as they are part of the solution that will make our cities cleaner.”

30 JULY 2021

Mobility (UAM) seems certain to be the next phase of mobility that will get people from point A to B. In recent years, it has been a topic that has been widely discussed for a long time and will continue to do until they start operating around the world. There are reasons why it has been talked about in industry conferences and on different media platforms. Futuristic and creative as they may be, air vehicles, formally known as vertical take-off and landing aircrafts (VTOLs), could well transform the way we commute, work and live going forward. There is a lot of potential for the UAM sector which is expected to be worth $1.5 trillion in the next 20 years. Air vehicles are an exciting concept to look forward to and there are many benefits of having this means of transportation. For example, it can offer quicker commutes and therefore save significant time compared to ground-based transport. To give you an idea of how much time people generally spend behind the wheel - statistics show that drivers in London spend an average of 227 hours or nine-and-a-half days every year stuck in traffic. Furthermore, it can also pave the way to ease the traffic burden on city roads as well as provide a better connection for people between remote and urban areas. However, before we can even think about the possibility of using Urban Air Mobility, a comprehensive framework and approach must be required. From analysing, researching, designing to building, every stage of the process must be carefully thought through to ensure Urban Air Mobility services operate efficiently and gradually become an important part of our everyday lives just like how automobiles have been for so many years. As a new travelling solution that will fundamentally change the way we move around, this presents several challenges. For starters, air vehicles will need to be designed and built. Then building an ecosystem and making sure there is an appropriate infrastructure to take-off and land. This poses some big hurdles considering space in big cities is already limited while rooftops could be expensive to use. At the same time, the need to draw up and implement air traffic rules are also crucial. Decisions will also have to be made on fuel stations, parking regulations, insurance policies, safety and educating the public on the advantages that Urban Air Mobility can offer. Looking at the wider picture, building an ecosystem that is suitable for Urban meconstructionnews.com

FEATURE

BECOMING PART OF OUR LIVES Work is being done to ensure that Urban Air Mobility services operate efficiently and gradually become an important part of our everyday lives “just like how automobiles have been for so many years,” says Bang Sun Jeong.

Air Mobility is certainly complex but not impossible. While small steps are already being taken with organisations of all sizes in the industry coming up with their innovative ideas as well as exploring viable options, a collective effort must be required to drive that change and make an impact. Developing and opening the market for Urban Air Mobility requires all types of collaboration, including public-private partnerships and even partnerships with competitors. This is because no one entity or organisation can do it alone and the list of vested stakeholders includes a broad and diverse set of voices. Therefore, it is important everyone contributes for the greater good. It will ‘take a village’ to develop a scalable system to support Urban Air Mobility and all organisations involved will need to work hard

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to identify and bring that village together. One of the other important topics that will need to be explored by experts and professionals are the costs. To make Urban Air Mobility appealing, it needs to be affordable for all members of society. It does not seem logical at all to create a concept that only wealthy people can afford – it must be accessible for everyone. Another is how will the air vehicles operate? Having trained pilots is one possible option. While this could be extremely expensive considering the resources that will be needed to identify, train and pay their salaries, having a human being in control of the air vehicle will not only help make journeys safer for passengers but also create employment. The costs of potential seating for commercial use, the prices of every ride, as well as the purchasing costs of personal

Travel concepts that we had never imagined before or once saw in sci-fi films could soon become a reality in the coming years”

air vehicles if or when they do become available must also be taken into account. These concerns can be addressed by introducing autonomous electric versions of VTOLs. Although there are significant engineering challenges, this will be the most sustainable and viable option for the environment. Questions will be asked of which type of batteries are suitable. Firstly, they cannot be too heavy but must have enough capacity of power to conduct several flights per day. Secondly, they must also be able to charge quickly as time will be of the essence to secure as much revenue as possible. Thirdly, the air vehicles will need to be designed and built depending on the choice of autonomous or pilot use as each one will be different when operating. With so many opportunities it can offer, Hyundai Motor is investing $1.5 billion into opening up the skies above the world’s busiest cities. We are already working extensively in developing our own Personal Air Vehicles (PAV) with plans to roll them out from 2028. We have partnered with Uber to develop Uber Air Taxis in which Hyundai will produce and deploy the air vehicles. Every day we are taking a step closer to achieving this goal but there is still a long way to go before we develop an excellent PAV that is equipped with electric VTOL that consumers can use. Overall, there are many challenges to overcome with Urban Air Mobility, but it presents a greater opportunity to connect people in new ways and reduce the volume of cars in city areas. Therefore, it is vital that a project of this scale and size is not rushed, and for all relevant stakeholders and partners invest the time and effort as required to deliver these unique travelling experiences. We look forward to the exciting future when these services will change the paradigm of transportation in the way people and goods move around.

JULY 2021 31

PARTING SHOT

ALEXA, GET ME A SUV

Amazon Home Services moves into online car rental space in UAE

ast month, saw retail behemoth Amazon launch its online car rental service through Amazon Home Services in the UAE Available across Dubai, Abu Dhabi, Sharjah, Ajman, and Ras Al Khaimah, the online car rental service features a range of service providers offering multiple automotive brands with SUVs, Hatchbacks, and Sedan options. Standard rental options from its partners include one day to one month car rentals with vehicles delivered directly to the selected address, explained the online retailer in a statement, adding: “Delivering a convenient customer experience, the rental includes the full rental duration, delivery and collection fees of the selected car and third-party auto insurance, with no security deposit required – and starts from rates as low as AED 44 per day.” According to Mordor Intelligence, the UAE ranks as one of the largest car rental

markets in the GCC. With the market forecast to grow at a compound annual growth rate (CAGR) of 15.7 percent between 2020 and 2025. The launch effectively sees Amazon act as a middle man between the car rental agencies and their customers. A move which further broadens its presence in the market and widens the service it offers. “We launched Amazon Home Services last year to give customers in the UAE a simple way to book services from handpicked, locallybased service providers with the same ease as purchasing products from Amazon.ae,” said Amazon MENA executive Amine Mamlouk. “We are continuously innovating on behalf of our customers and the launch of online car rental services via Amazon Home Services gives them an alternative option to traditional car hire, eliminating the hassle of queuing, having to travel to get their rental car, or paying a hefty

security deposit. Within a couple of steps and a short three-hour wait time, customers can have the car of their choice delivered directly to their doorstep, all from the comfort of their own home.” The ability to hail a car via Alexa has been warmly received in other markets and with Amazon customers. The car rental industry has largely embraced the e-commerce’s move into the space too. AVIS, for instance, is working with Amazon Web Services Premier Consulting partner Slalom help develop a connected car mobility platform. Through the partnership, Avis is using new analytics tools in AWS that are designed for connected vehicles and fleet management. Ultimately, Avis wants to collect six types of real-time data from all its vehicles in AWS: Location, odometer reading, fuel or electric charge level, diagnostic codes, remote access and user authentication.

NEXT ISSUE: THE MOVE TO DIGITALISATION, E-ACTROS MAKES IT’S WORLD DEBUT, THE UPTIME CHAMPIONS, AND MUCH MORE!

32 JULY 2021

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