Construction Machinery ME

KINGDOM CALLING SDEC’s Raad Abduljawad

UNDER THE ISLANDCombined Group on Al-Reem

ROOTS UP APPROACH Roots Group opens up in Riyadh

WORLD CLASS Everything you need to learn about Bauma

Plus: ACROss THE INDusTRY * RAw POwER * PORTs &lOgIsTICs * EsTImATION PITfAlls * AND mORE

ISSUE 18

APRIL 2013

PUBLICATION LICENSED BY IMPZ

sAuDI ARAbIA sPECIAl

Contents

04 EDITORIAL CMME goes on the road in the Kingdom.

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

13 NEWS ANALYSIS Would Africa’s construction industry be better off left to its own

devices?

15 COMMENT Gavin Davids has been talking to the region’s contractors.

18 THE BOY THAT BECAME THE MAIN MAN CMME meets up Raad Abduljawad and finds out why Saudi

Diesel’s managing director isn’t allowed on his own machines.

22 SAUDI STILL BOOMING? Ahead of the Construction Machinery Show in Jeddah, CMME

looks at the state of the Kingdom’s market.

30 ROOTS UP APPROACH Roots and Case taking on KSA together.

34 OVER AND UNDERGROUND ON AL REEM ISLAND A site visit to Combined Group’s infrastructure and civil works

on Al Reem Island in Abu Dhabi.40

ISSUE 18

APRIL 2013

Page 41 NEW RELEASE ROUND-UP Some of the hottest machinery hitting the region’s inventories this month. Page 47 TOP TEN MISTAKES IN ESTIMATING The big pitfalls of costing up construction. Page 51 MUNICH IS COMING A round-up of

what to expect at the Bauma behemoth. Page 58 PORTS OF CALL Port technology being adopted in the region. Page 60 PIPE TO PIPE Tefkan in Morocco Page 64 THE LAST WORD Saudi still has a big appetite for heavy spending.

Raw power

16

62

31

page 35ON REEM ISLAND

“It was extended due to several issues with designs and site obstructions. Several plot contractors started and then stopped during the

crisis.”

35

01 Contents.indd 3 3/30/13 11:12 AM

Editor’s Letter

April 2013

CONSTRUCTION

MIDDLE EAST2

Stephen White, Group Editor, CMME

PUBLISHER DOMINIC DE SOUSA

GROUP COO NADEEM HOOD

MANAGING DIRECTOR RICHARD JUDD EDITORIAL

GROUP EDITOR STEPHEN [email protected] +971 55 795 8740

DEPUTY EDITOR GAVIN [email protected] +971 4 440 9118

CONTRIBUTING EDITORS Jonathon Savill

MARKETING & ADVERTISING

PUBLISHING DIRECTOR RAZ [email protected] +971 4 440 9129

COMMERCIAL DIRECTOR MICHAEL [email protected] +971 4 440 9128

MARKETING MANAGER CAROLE [email protected] +971 4 440 9157

DESIGN

SENIOR GRAPHIC DESIGNER REBECCA [email protected] +971 4 440 9168

JUNIOR GRAPHIC DESIGNERPERCIVAL [email protected] +971 4 440 9121

CIRCULATION & PRODUCTION

CIRCULATION AND DISTRIBUTION MANAGERROCHELLE ALMEIDA [email protected] +971 4 368 1670

DATABASE AND CIRCULATION MANAGERRAJEESH [email protected] +971 4 440 9147

PRODUCTION MANAGER JAMES P [email protected] +971 4 440 9146

DIGITAL

www.constructionmachineryme.com

DIGITAL SERVICES MANAGER TRISTAN TROY MAAGMA

WEB DEVELOPERJOEL AZCUNA

[email protected]

+971 4 440 9100

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Tel: +971 4 440 9100Fax: +971 4 447 2409

PRINTED BY

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© Copyright 2013 CPIAll rights reserved

While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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

OUT AND ABOUT SAUDI

The management of the city’s airport has some advice if you miss your flight from Dammam: spend the night in Bahrain.

The CMME team has been out in force across Saudi Arabia over the last two months as we put the finishing touches on the Construction Machinery Show in Jeddah. Our missed flight was just one memorable episode among many picked up during a two-week marathon that saw whistle-stop tours of

Dammam and Riyadh. In between was an extended stay in Jeddah where we got to see first hand the development of the Corniche.

Unfortunately our attempts to take a trip to the Kingdom Tower site were thwarted by traffic and general confusion among almost everyone we met of how to get there. I can see why the Kingdom is building metros, roads, and rail. Getting around is not easy.

Talking to a contractor in Riyadh about it, he just shrugged his shoulders and said “well, this is Saudi”.

I’ve heard that phrase a lot in 2013 although mostly from people working but not living inside the Kingdom. It’s normally complemented by a knowing look of acceptance. A phrase that says that is the way it is, it never changes. I worry that saying it may be a sign of ignorance, especially in the three cities I visited.

Go to a mobile shop just before it re-opens after evening prayers, and you will be fighting for space on the pavement. This is a country that has taken to mobile technology and social media like few others. A cultural change is happening. Not in place of tradition but beside it; and that is having an inevitable effect on attitudes.

People I met who provide a bridge with Saudi and the outside world such as traders and distributors are embracing changes to technology, bringing in enlightened attitudes to their businesses: growing by evolving.

CMME interviews Raad Abduljawad, the managing director of Saudi Diesel Equipment Company, this month. He is a man that has recognised that for his company to keep moving he has to embrace change. Similarly I met Abdulaziz Al Bassam of GTE just before we went to press. A young man who is taking on his father’s progressive vision but also bringing new ideas of his own.

There will be more of that in a future issue of CMME, but for now enjoy our Saudi Arabia special, a look at a country that is a lot more forward thinking than it is often given credit for.

02 Editorial.indd 2 3/30/13 11:14 AM

CONSTRUCTION

MIDDLE EAST

4

News Round-Up

4 April 2013

Thousands of South Asian labourers working on the expansion of Muscat airport downed tools last month in a rare strike. They

demanded better safety conditions after a worker died in an accident, a company official said.

An Indian worker died when he was run over by a bus belonging to the contractor, workers and a BEB official told Reuters.

The strike will probably lead to further delays to the $1.8 billion contract to build a new terminal, which the Omani government awarded in 2010 to BEB, a joint venture of US company Bechtel and Turkey’s Enka .

“We will not go to work today unless our company assures us that they will revise safety standards in our workplace,” Mohan Raman, a worker with BEB, told the newswire.

“We have 10,000 workers and most of them are on strike,” said the BEB official, who asked not to be named. “We are improving safety standards to make

sure such accidents will never happen again.”A BEB statement sent to Reuters later in the month did

not refer to a strike, but said the company had “suspended work today (Tuesday) in respect for the deceased

employee which is customary in the Indian culture.“An investigation is being carried out by the

company and the local authorities,’ the statement said, adding that work would resume.

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

Thousands strike after truck kills Muscat Airport labourer

Saudi Arabian residents will be able to drive straight to Oman by the end of this year, when a new 592-km road linking the two GCC states is completed, government officials have said. The new road will cost $5.3bn and will reduce the distance between the two countries from 2,000 km to 1,200 km.

The landmark project passes through the Empty Quarter — one of the largest deserts in the world. It will facilitate transport of Haj pilgrims, tourists and goods.

“The Saudi-Oman road link is expected to be completed by the end of 2013,” said Khalil Al-Khonji, chairman of Oman Chamber of Commerce and Industry.

The project, which was due to open in 2012, has been delayed due to the nature of the soil, he pointed out.

“The Saudi section of the road has been delayed because of the soft soil and associated incremental project costs. The Oman section has reached completion, and we hope to open the link by the end of this year,” said Al-Khonji.

The road will boost trade and tourism between the two GCC neighbours and ensure quick delivery of products. At present, a truck takes three to four days to reach Muscat from Jeddah. The new road will reduce that period to one day or a maximum of two days.

NEW SAUDI-OMAN ROAD LINK TO BOOST TRADE

4

News Round-Up

DRAGON AND CRANEThe new Dragon Mart in Dubai

extension starts to take shape with this crane supplied Kele contracting

part of a five-strong tower team that is working on Phase 2, a 177,000 sqm

expansion of the mall, which also includes a three-star hotel and

multi-storey car park.

44

4-10 News.indd 4 3/30/13 11:08 AM

CONSTRUCTION

MIDDLE EAST

4

News Round-Up

4 April 2013

Thousands of South Asian labourers working on the expansion of Muscat airport downed tools last month in a rare strike. They

demanded better safety conditions after a worker died in an accident, a company official said.

An Indian worker died when he was run over by a bus belonging to the contractor, workers and a BEB official told Reuters.

The strike will probably lead to further delays to the $1.8 billion contract to build a new terminal, which the Omani government awarded in 2010 to BEB, a joint venture of US company Bechtel and Turkey’s Enka .

“We will not go to work today unless our company assures us that they will revise safety standards in our workplace,” Mohan Raman, a worker with BEB, told the newswire.

“We have 10,000 workers and most of them are on strike,” said the BEB official, who asked not to be named. “We are improving safety standards to make

sure such accidents will never happen again.”A BEB statement sent to Reuters later in the month did

not refer to a strike, but said the company had “suspended work today (Tuesday) in respect for the deceased

employee which is customary in the Indian culture.“An investigation is being carried out by the

company and the local authorities,’ the statement said, adding that work would resume.

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

Thousands strike after truck kills Muscat Airport labourer

Saudi Arabian residents will be able to drive straight to Oman by the end of this year, when a new 592-km road linking the two GCC states is completed, government officials have said. The new road will cost $5.3bn and will reduce the distance between the two countries from 2,000 km to 1,200 km.

The landmark project passes through the Empty Quarter — one of the largest deserts in the world. It will facilitate transport of Haj pilgrims, tourists and goods.

“The Saudi-Oman road link is expected to be completed by the end of 2013,” said Khalil Al-Khonji, chairman of Oman Chamber of Commerce and Industry.

The project, which was due to open in 2012, has been delayed due to the nature of the soil, he pointed out.

“The Saudi section of the road has been delayed because of the soft soil and associated incremental project costs. The Oman section has reached completion, and we hope to open the link by the end of this year,” said Al-Khonji.

The road will boost trade and tourism between the two GCC neighbours and ensure quick delivery of products. At present, a truck takes three to four days to reach Muscat from Jeddah. The new road will reduce that period to one day or a maximum of two days.

NEW SAUDI-OMAN ROAD LINK TO BOOST TRADE

4

News Round-Up

DRAGON AND CRANEThe new Dragon Mart in Dubai

extension starts to take shape with this crane supplied Kele contracting

part of a five-strong tower team that is working on Phase 2, a 177,000 sqm

expansion of the mall, which also includes a three-star hotel and

multi-storey car park.

44

4-10 News.indd 4 3/30/13 11:08 AM

5CONSTRUCTION

MIDDLE EAST 5

COMPANY INTELLIGENCE

JCB together with its long established dealer, GALADARI TRUCK AND HEAVY EQUIPMENT CO LTD (Galadari) has formed a strategic alliance with ABU DHABI COMMERCIAL BANK (ADCB) to offer new finance products and services under the JCB Finance brand.

The JCB FINANCE PROGRAMME offered through ADCB will be available to JCB equipment users throughout the United Arab Emirates region supported by JCB’s exclusive local dealer Galadari.

Robert Winter, Director of JCB Finance global operations stated: “The combination of our local dealer Galadari with its strong customer focus and outstanding service pedigree together with THE EXTENSIVE CAPABILITIES AND EXCELLENT MARKET REPUTATION OF ADCB MAKE THIS AN EXCITING DEVELOPMENT FOR ALL OF US. Extending the reach of JCB Finance into the UAE is a key factor in supporting our ambitious growth plans for the years ahead.”

Khalid Abd El Wahab, JCB Division Manager of GTHE added, “The introduction of JCB FINANCE IN THE UAE IS THE CONTINUATION OF THE SUCCESSFUL PARTNERSHIP BETWEEN GALADARI TRUCKS AND HEAVY EQUIPMENTS AND JCB ESTABLISHED IN 1978. According to our growth plan for the UAE market, customers’ satisfaction is our main target to achieve our plan. We believe that the introduction of JCB Finance will be an additional tool for offering a complete package to our customers and meet the current market demand. The success of JCB Finance is granted especially when it comes to the strength of our partners with strong professional back up from JCB and the outstanding reputation of ADCB in the UAE.”

Roots Group Arabia has opened the first showroom dedicated to Case Construction Equipment in Riyadh. The two companies are following their successful opening of a new parts and distribution facility, one of the largest for Case in the world, last year in the Red Sea city of Jeddah.

The launch of the new showroom came as a part of rigorous expansion plan of Roots Group Arabia to expand its product offering and after-sales services for the building industry.

The Roots Group is among the top players of the construction industry providing building materials solutions with a diversified portfolio of products and catering to the wide-ranging needs of the construction industry since its inception in 1981. Over the years, it has built extensive experience in the industry

within the Gulf Cooperation Council countries, especially in Saudi Arabia.

Engineer Samir Al Shubaily, Deputy CEO, Roots Group Arabia and Mr. Franco Invernizzi, Senior Director, Africa and Middle East, Case Construction and a number of experts from real estate and construction industry were present at a joint press conference that was held in the new Roots showroom located on Khurais Road in Riyadh.

Through the new Roots showroom, Case Construction aims to provide top-notch after-sales customer support services and best quality products to its clients.

A professional team comprising the best engineers and other skilled personnel will meticulously work towards offering the full line of Case Construction equipment, along with rendering the best-in-class

training and after-sales support throughout the region.

Engineer Shubaily commented: “We are extremely delighted with the opening of our new outlet wherein we will provide Case Construction equipment and offer premium services to the consumers by merging our long-term experience in the construction equipment and building materials industry with the impeccable performance of Case Construction’s heavy equipment.”

“Saudi Arabia is a crucial market for us as it has one of the largest and fastest growing construction sectors among the Gulf countries. I am certain that this endeavor will greatly facilitate us in achieving maximum benefit from the future opportunities and business development in Saudi Arabia,” said Invernizzi.

ROOTS AND CASE CELEBRATE RIYADH OPENING

1 Qatar has rejoined a public competition to develop the former Athens airport, a Greek

government spokesperson has told the meda One of the most sought after sites of Greece’s privatisation drive, the HELLINIKON PROJECT IS EIGHT KILOMETRES SOUTH OF ATHENS AND HAS AN ADJACENT 337 BERTH MARINA BUILT for the 2004 Olympic Games. The entire site spans nearly 620 hectares and includes a waterfront of about 3.5km.

2THE WORLD’S LARGEST SOLAR POWER PLANT CURRENTLY IN OPERATION,

LOCATED 120KM SOUTH-WEST OF ABU DHABI, WAS FORMALLY INAUGURATED ON SUNDAY 17 MARCH, officials have said. The $600mn, 100 megawatt Shams-1 project aims to give its parent, Masdar, a competitive edge in developing and investing in similar projects in the region, a senior official at Shams-1 said.

TENDER UPDATES

A memorandum of understanding (MoU) has been announced and signed between Abu Dhabi Ports Company (ADPC) and Agility – Abu Dhabi, a regional freight and logistics leader.

Following an open call to the industry last month to tackle issue of costs in the supply chain, by Mohamed Al Shamisi, EVP – Ports, ADPC; today’s MoU outlines an agreement that will reduce Agility’s road freight tariffs, with ADPC’s ports, for a period of one year.

The terms of the agreement will see Agility provide road freight for container and other cargo for pick-up

to and from Khalifa Port, and from any location in the city of Abu Dhabi, including Musaffah.

The new rate of AED 800 per truck, for road freight, represents a significant 33.3 per cent reduction on previous tariffs.

“Developing the most cost effective infrastructure and delivery is crucial to maintaining and supporting a healthy supply chain. Today’s announcement is a clear recognition between two key parties in that chain of the advantages of both increasing efficiency and managing cost,” said Al Shamisi.

HE Khadim Al Darei, Vice

Chairman, Agility – Abu Dhabi, added: “Agility is always striving to offer our customers the best in terms of service, efficiency and cost and with the increasing volumes being seen through Khalifa Port we feel we have agreed a win-win situation for everyone involved.”

ABU DHABI BOOST TO FREIGHT COSTS

April 2013

4-10 News.indd 5 3/30/13 11:08 AM

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M

Y

CM

MY

CY

CMY

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Const_MachME_Eng_250x310_v2_HR.pdf 1 1/28/2013 3:00:27 PM

CONSTRUCTION

MIDDLE EAST 7CONSTRUCTION

MIDDLE EAST 7April 2013 77

Giant cranes, taller than the London Eye, were sailed into the Thames Estuary and berthed at the UK’s new global shipping port, DP World London Gateway in March.

Measuring 138m in height, the three new cranes were transported from China in a two month sea voyage.

Weighing 2,000 t each, the cranes are taller than London’s Wembley Stadium’s arch and are two and a half times the height of Nelson’s Column. They are the first in the UK to be able to lift four containers at once, increasing the speed and efficiency of the port.

“London Gateway port, and the combined logistics park, is Britain’s new gateway for global trade. These cranes will bring new innovation and efficiency to the supply chain industry. It won’t be long before importers and exporters across the country will be able to cut costs dramatically from their supply chains by choosing London Gateway, a port which is much closer to where goods need to go,” said Simon Moore, CEO of DP World, London Gateway.

“A world-class deep-sea container port requires a world-class set of cranes. They will be the lynchpin of the operation – the biggest, most modern and most efficient the UK has ever seen.

Moore added: “We are also working on several aspects of London Gateway, including recruiting hundreds of staff who will operate and maintain equipment; investing millions of pounds into local roads, including the A13 and the M25 motorway; and building 20 kilometres of new

rail track to ensure that over 30% of containers can move by rail.”

Built by Shanghai Zhenhua Heavy Industries Company, the cranes set sail from China on January 7. Two more cranes set sail in February, while a further 19 are planned for delivery of the next few years.

The cranes will operate on a quay wall that is 2.7km in length, with foundations that are 16 storeys deep into the ground.

Andrew Bowen, London Gateway engineering director, said: “London Gateway is built on new land created from material that we dredged from the existing shipping channel. So, these new cranes will be operating on land that, up until a few months back, was in the sea.”

The shipping channel has been dredged from 11 metres to 14.5 metres in the inner channel and 16 metres in the outer channel. The berth pockets have been deepened to 17 metres, allowing the world’s largest ships to call at London Gateway.

Bowen continued: “We have more than 2,300 people now employed on-site who are in the final stages of constructing what we believe is the most technologically advanced port in the world, with hundreds more employed behind the scenes. The majority are British engineers and construction companies, which means this is great news for the economy.

London Gateway is set to create 36,000 jobs at full build out, with some 2,000 directly employed in the port, 10,000 employed in the logistics park, and over 24,000 in-direct and induced jobs being created in the supply chain.

TDIC invites prequalification bids for Zayed MuseumAbu Dhabi’s Tourism Development and Investment Company (TDIC) has invited prequalification bids for the main construction works on the Zayed Museum Project.

The contract involves work on the concrete superstructure, structural steelwork, feature cladding to the wing-shaped aspects of the external facade, vertical transportation and specialist security installation, a statement from TDIC said.

Additionally, the contract will include electrical, plumbing and mechanical works and fit out and external works.

Set to be constructed alongside the

Guggenheim Abu Dhabi and the Louvre Abu Dhabi in Saadiyat Island’s Cultural District, the Zayed Museum will showcase HH Sheikh Zayed Bin Sultan Al Nahyan’s life and the influence of his reforms.

The project will feature five pavilions that will rise to 124m high and will feature landscaped gardens and audio visual features. It is scheduled to be completed in 2014.

Designed by the world famous UK-based architectural firm Foster+Partners, the museum will serve as a monument and memorial to the UAE’s founding president Sheikh Zayed bin Sultan Al Nahyan.

NEWS SUBHEAD 2Dubai’s AGT celebrates sustainability partner Lotus F1 Team’s win at the Australian Grand Prix.

A WARNING A new campaign by the Abu Dhabi municipality highlights the risks on construction sites with heavy equipment prominantly featured as potential hazards.

POWERED UP FOR BAUMA

The British construction machinery manufacturer

JCB is presenting its Ecomax engines for the first time

at bauma 2013

GIANT CRANES ARRIVE AT DP WORLD LONDON GATEWAY

News Round-Up

4-10 News.indd 7 3/30/13 11:08 AM

CONSTRUCTION

MIDDLE EAST

88 April 2013

The Federation of Construction Industry (FOCI) has urged the NIgerian government to take drastic measures to tackle kidnapping of construction workers before the sub sector is “killed”.

The group said the ugly trend was posing a serious threat to the prosecution of development projects. It warned that unless the situation is arrested, the country will lose its attraction to foreign investors who rate security of life and property high before deciding on where to invest.

The group said construction companies are finding it difficult to move workers from one part of the country to the other as needed.

In a statement in Abuja yesterday, the President of FOCI, Solomon Ogunbusola, noted that in the last one year, eleven expatriate workers by Setraco Nigeria Limited had been kidnapped in the South. Seven expatriates were being held in the North with little or no information about their fate. They were killed at the weekend.

Ogunbusola said: “Nigerians will still recall that an expatriate employee of Dantata & Sawoe Construction Company Nigeria Limited was kidnapped last year and was never released. He was killed

months later. We also recall that one Briton and one Italian worker were killed in an attempt to rescue them by security forces in Sokoto last year.

“During the same period, four expatriates working for a Chinese construction sompany were killed.

“As the list of kidnapped victims grows by the day, construction companies are finding it more and more difficult to prosecute their projects, even with the provision of security personnel on some ofour sites.

“Pervasive sense of insecurity on sites and in the atmosphere generally is not limited to the fate of expatriates alone.

“Nigerians as well are not totally immune from the danger.

“Companies have lost some of their Nigerian Technical and Support Staff for the same reasons,” he said.

Ogunbusola urged the Federal and State governments to do more in the protection of construction workers before the construction industry grinds to a halt and throw more than 250,000 workers into the unemployment market, while development projects are shut down.

“The negative effects of the deteriorating security situation on inflow of foreign investments should also not be down-played,” he said.

KSA CONSTRUCTION DEALS FALL 13% IN 2012

News Round-Up

NIGERIA FEDERATION WANTS CONTRACTOR PROTECTION

Construction deals awarded in Saudi Arabia declined by around 13% during 2012. Total contracts in 2012 amounted to $63bn compared to $72bn in 2011, according to the Gulf Kingdom’s largest bank National Commercial Bank (NCB).

They added that contracts recorded a sharp rise in the fourth quarter. The value “rebounded strongly” in the fourth quarter following a relatively weak third quarter of 2012 to reach $18bn. The strong push during the fourth quarter

allowed 2012 to end on a high note, where approximately $63bn worth of contracts were awarded, it said.

“Although the value of awarded contracts dipped compared to 2011’s, several sectors witnessed unprecedented capital spending compared to previous years such as power ($12.5bn), petrochemicals ($12.5bn),healthcare ($3.7bm) and roads ($4.5bn), NCB saidin a study.

In the fourth quarter alone, contracts awarded in oil and gas

sector amounted to about $7bn, while the power sector accounted for another $4.2bn.

The industrial sector contributed $1.6bn during the fourth quarter, while the commercial real estate and education sectors had $.9bn and $.8bn worth of contracts awarded, respectively.

“The $63bn in contracts awards during 2012 reflected the construction industry’s continued vibrancy, and its foundation as a fundamental building block of the Kingdom.”

JCB has won a massive order for more than 1,000 of its iconic backhoe loaders in a deal which is designed to transform the rural economy of Brazil.

Brazil has signed a tender for the JCB backhoes worth more than £40 million. The landmark order for the 3C machines comes as the company marks 60 years of backhoe loader production. The 1,000 machines will be delivered throughout 2013 and put straight to work improving rural roads to ensure food produced for sale gets to market much quicker.

While the machines will be manufactured at JCB’s new $100 million factory opened last September by Prime Minister David Cameron in Sao Paulo, the deal will also bring huge benefits to JCB’s UK factories. Transmissions and axles will be supplied by JCB Transmissions in Wrexham and 12,000 hydraulic cylinders by JCB’s World HQ at Rocester.

The latest order comes after JCB Brazil successfully supplied more than 1,000 backhoes last year to the same customer as part of the first phase of the development of rural roads.

JCB CEO Alan Blake said: “This is a

very important deal for JCB and we are delighted to have secured the tender for a second year running. It is huge testament to the quality and versatility of JCB’s backhoe loaders and it’s fantastic to win an order of this size as we celebrate 60 years of backhoe loader production this year.”

JCB Brazil Managing Director Carlos Hernandez said: “It is a great honour to have been chosen again to supply another 1,000 backhoes that will be used to improve the infrastructure and services of the smaller municipalities. We are really pleased we can contribute to the economic development of Brazil, particularly to support the agricultural sector.”

A third of all farms in Brazil are family enterprises in remote areas of the country where the road network needs to be upgraded. The purchase of the machines is to facilitate that development and help meet federal government growth plans. In Brazil there are more than 400,000 family farms and the machines will be used in more than 1,000 municipalities in small cities with less than 50,000 inhabitants.

JCB PASSES 1,000 BACKHOES IN BRAZIL

8 CONSTRUCTION

MIDDLE EAST8 April 2013

4-10 News.indd 8 3/30/13 11:08 AM

CONSTRUCTION

MIDDLE EAST

88 April 2013

The Federation of Construction Industry (FOCI) has urged the NIgerian government to take drastic measures to tackle kidnapping of construction workers before the sub sector is “killed”.

The group said the ugly trend was posing a serious threat to the prosecution of development projects. It warned that unless the situation is arrested, the country will lose its attraction to foreign investors who rate security of life and property high before deciding on where to invest.

The group said construction companies are finding it difficult to move workers from one part of the country to the other as needed.

In a statement in Abuja yesterday, the President of FOCI, Solomon Ogunbusola, noted that in the last one year, eleven expatriate workers by Setraco Nigeria Limited had been kidnapped in the South. Seven expatriates were being held in the North with little or no information about their fate. They were killed at the weekend.

Ogunbusola said: “Nigerians will still recall that an expatriate employee of Dantata & Sawoe Construction Company Nigeria Limited was kidnapped last year and was never released. He was killed

months later. We also recall that one Briton and one Italian worker were killed in an attempt to rescue them by security forces in Sokoto last year.

“During the same period, four expatriates working for a Chinese construction sompany were killed.

“As the list of kidnapped victims grows by the day, construction companies are finding it more and more difficult to prosecute their projects, even with the provision of security personnel on some ofour sites.

“Pervasive sense of insecurity on sites and in the atmosphere generally is not limited to the fate of expatriates alone.

“Nigerians as well are not totally immune from the danger.

“Companies have lost some of their Nigerian Technical and Support Staff for the same reasons,” he said.

Ogunbusola urged the Federal and State governments to do more in the protection of construction workers before the construction industry grinds to a halt and throw more than 250,000 workers into the unemployment market, while development projects are shut down.

“The negative effects of the deteriorating security situation on inflow of foreign investments should also not be down-played,” he said.

KSA CONSTRUCTION DEALS FALL 13% IN 2012

News Round-Up

NIGERIA FEDERATION WANTS CONTRACTOR PROTECTION

Construction deals awarded in Saudi Arabia declined by around 13% during 2012. Total contracts in 2012 amounted to $63bn compared to $72bn in 2011, according to the Gulf Kingdom’s largest bank National Commercial Bank (NCB).

They added that contracts recorded a sharp rise in the fourth quarter. The value “rebounded strongly” in the fourth quarter following a relatively weak third quarter of 2012 to reach $18bn. The strong push during the fourth quarter

allowed 2012 to end on a high note, where approximately $63bn worth of contracts were awarded, it said.

“Although the value of awarded contracts dipped compared to 2011’s, several sectors witnessed unprecedented capital spending compared to previous years such as power ($12.5bn), petrochemicals ($12.5bn),healthcare ($3.7bm) and roads ($4.5bn), NCB saidin a study.

In the fourth quarter alone, contracts awarded in oil and gas

sector amounted to about $7bn, while the power sector accounted for another $4.2bn.

The industrial sector contributed $1.6bn during the fourth quarter, while the commercial real estate and education sectors had $.9bn and $.8bn worth of contracts awarded, respectively.

“The $63bn in contracts awards during 2012 reflected the construction industry’s continued vibrancy, and its foundation as a fundamental building block of the Kingdom.”

JCB has won a massive order for more than 1,000 of its iconic backhoe loaders in a deal which is designed to transform the rural economy of Brazil.

Brazil has signed a tender for the JCB backhoes worth more than £40 million. The landmark order for the 3C machines comes as the company marks 60 years of backhoe loader production. The 1,000 machines will be delivered throughout 2013 and put straight to work improving rural roads to ensure food produced for sale gets to market much quicker.

While the machines will be manufactured at JCB’s new $100 million factory opened last September by Prime Minister David Cameron in Sao Paulo, the deal will also bring huge benefits to JCB’s UK factories. Transmissions and axles will be supplied by JCB Transmissions in Wrexham and 12,000 hydraulic cylinders by JCB’s World HQ at Rocester.

The latest order comes after JCB Brazil successfully supplied more than 1,000 backhoes last year to the same customer as part of the first phase of the development of rural roads.

JCB CEO Alan Blake said: “This is a

very important deal for JCB and we are delighted to have secured the tender for a second year running. It is huge testament to the quality and versatility of JCB’s backhoe loaders and it’s fantastic to win an order of this size as we celebrate 60 years of backhoe loader production this year.”

JCB Brazil Managing Director Carlos Hernandez said: “It is a great honour to have been chosen again to supply another 1,000 backhoes that will be used to improve the infrastructure and services of the smaller municipalities. We are really pleased we can contribute to the economic development of Brazil, particularly to support the agricultural sector.”

A third of all farms in Brazil are family enterprises in remote areas of the country where the road network needs to be upgraded. The purchase of the machines is to facilitate that development and help meet federal government growth plans. In Brazil there are more than 400,000 family farms and the machines will be used in more than 1,000 municipalities in small cities with less than 50,000 inhabitants.

JCB PASSES 1,000 BACKHOES IN BRAZIL

8 CONSTRUCTION


4-10 News.indd 8 3/30/13 11:08 AM

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CONSTRUCTION

MIDDLE EAST

1010 April 2013

News Round-Up

10 CONSTRUCTION


Australian company Membrey Transport and Crane Hire has played a major role in the successful relocation of a rare Rothschild giraffe from the Melbourne Zoo in Victoria to the Mogo Zoo on the southern coast of New South Wales, 800 kilometers away. For the job, they utilized a Terex® AT-20 Pick and Carry crane.

Due to the delicate nature of the cargo, Melbourne Zoo called in Membrey’s Transport and Crane Hire to transport Tanzi, the 10 year old, 4,8 metre tall Rothschild giraffe. The move, as part of the regional breeding program, would also see Tanzi reunited with her sister Shani.

“We have moved a variety of large and small exotic zoo animals for around 30 years,” said Craig Membrey of Membrey’s Transport. “For this move, we were required to lift and transport the animal in a specially made giraffe crate and selected our Terex AT-20 Pick and Carry crane as the best equipment for this task.”

To minimize stress during the move, the Melbourne Zoo conducted more than two months of crate training to ensure Tanzi was relaxed and comfortable enough to travel in the crate. As well as the potential for emotional strain, transporting such a tall and heavy animal also presented a number of logistical challenges.

“Moving animals of this size requires detailed route planning, such as avoiding low bridges, while also ensuring minimum impact on the animal by completing the move in the shortest possible time,” Craig said. “The Terex AT-20 Pick and Carry crane was ideal for this application. It’s smooth controls gave the crane operator the ability to position the crate with gentle, fluid movements throughout the operation. These highly versatile road cranes can be dispatched quickly to wherever they are needed via any road, and have the maneuverability, power and versatility to lift almost anything, anywhere.”

IronPlanet, a leading online marketplace for used heavy equipment, has broken its record for the largest single unit ever sold. A buyer from North Carolina won a Marion 7820 Walking Dragline in IronPlanet’s Daily Marketplace, for the highest bid of $3 million from a seller in Pennsylvania.

“This successful sale between two of the largest aggregate producers in the United States is a prime example of how our global marketplace connects buyers and sellers quickly and effectively,” said Greg Owens, CEO of IronPlanet. “Our Daily Marketplace is a complement to our regular weekly auctions and allows us to reach out to our global network and find the right buyers to

meet a seller’s price target, which can be particularly useful when selling high-priced and unique items like the dragline.”

Weighing over 2,000t and consisting of a bucket attachment large enough to accommodate parking for three full-size pickup trucks, the item is one of the largest pieces of equipment sold by IronPlanet.

IronPlanet’s Daily Marketplace allows sellers to set a reserve price, a hidden minimum price that sellers are willing to accept for an item, and select a closing time at any point throughout the week. Sellers also have the option of displaying a “Win it Now” price, for buyers that may wish to complete the sale.

India asks Kuwait for infrastructure helpThe Indian government has called upon Kuwait to invest in the South East Asian country’s growing infrastructure sector as it looked to attract investment into the country.

Kuwait, which has a sovereign wealth fund of $300bn, is being courted by the Indian government, who aims to spend around $1trn on improving its infrastructure.

The issue was raised by India’s Commerce and Industry Minister, Anand

Sharma, during his meeting with the Kuwaiti Minister for Amiri Dewan Affairs, Sheikh Nasser Sabah Al Ahmad Al Jaber Al Sabah.

The GCC country has a sovereign wealth fun that is growing by $15-$25bn every year. The fund is managed by Kuwait Investment Authority.

The $1trn being invested in infrastructure is part of India’s 12th Five-Year-Plan, which runs from 2012 to 2017, an Indian government

official, who declined to be named, said.

At present, Kuwaiti investments in India stand at around $1bn in sectors like power, automobile, construction development and telecommunication.

India is looking for investment in sectors such as the petrochemical, fertilisers, DMIC, education and Civil Aviation. Bilateral trade between the two countries stood at $18.8bn in 2012.

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CONSTRUCTION

MIDDLE EAST 13CONSTRUCTION

MIDDLE EAST 13April 2013

News Analysis

Construction in the countries of Nigeria and Sudan was under scrutiny last month as the continent’s attempt to develop its infrastructure continues to be blighted

by violence and distrust over foreign investment. In Nigeria seven foreign contractors were

executed by Islamic extremist group Ansaru. The men were kidnapped while working for construction firm Setraco in the Nigerian town of Jama’are.

They had been taken following an assault on the construction company’s compound in February with the group claiming they were taken in retaliation for British forces being spotted in the air over the region. The British Foreign Office later claimed the aircraft had been ferrying troops to aid in the French and Malian efforts to battle extremists in Mali.

The head of the Nigerian Federation of Construction Industry Solomon Ogunbusola claimed the attacks on foreign contractors was threatening to de-rail the construction industry in the country.

“During the same period (one year), four expatriates working for a Chinese construction company were killed. As the list of kidnapped victims grows by the day, construction companies are finding it more and more difficult to prosecute their projects, even with the provision of security personnel on some of our sites,” he said. “The negative effects of the deteriorating security situation on inflow of foreign investments should also not be down-played. Nigerians are not totally immune from the danger.”

China’s contractors and machinery providers found themselves in a different kind of firing line ahead newly installed president Xi Jinping speech to explain his country’s policy in Africa at the end of March. Criticism s growing on the emerging world power’s ever increasing influence on the African continent.

Chinese companies have been sweeping on the continent as Africa trades lucrative infrastructure contracts for Chinese investment. Xi was expected to state that its interest in Africa is one of open trade and exchange amid fears China is attempting to deepen its influence on the continent. A tour of eight countries by Xi has fuelled a debate among African leaders on whether it should rely on China in the long-term.

“There’s a belief that since Africa got a raw deal from the colonial West, then the Chinese must be Africa’s best friend,” George Ayittey, a Ghanaian economist told Bloomberg. “But the evidence doesn’t show that, and the main criticism is that they are building infrastructure in exchange for Africa’s resources in deals that are structured to favour China.”

Nigerian central bank chief Lamido Sanusi

Trouble with AfricaDisputes, extortion and kidnappings continue to blight African countries trying to develop

weighed into the debate with a further warning: “Africa must recognize that China, like the U.S., Russia, Britain, Brazil and the rest, is in Africa not for African interests but its own.”

In an interview with Business Day, Botswana’s leader Ian Khama said: “We have had some bad experiences with Chinese companies in this country. We are going to be looking very carefully at any company that originates from China in providing construction services of any nature.”

Corruption continues to hold back construction in other territories. South African public works minister Thulas Nxesi told the Council for the Built Environment that the continent has to “deal with corrupt officials working with corrupt businessmen to siphon off public funds”.

South Africa’s Competition Commission’s is currently fast-tracking settlements for firms in the sector after more than 20 companies disclosed information pertaining to bid-rigging and collusion involving more than 130 projects.

He added that to overcome corruption in the South African and African construction sectors, governments must work closely with key players “to ensure there is adequate capacity in the public sector to manage procurement processes and create a regulatory environment for the delivery of infrastructure projects.”

He added: “A quantity surveyor or engineer who may have qualified in Kenya or Ghana must be able to work on big infrastructure projects in Zambia or South Africa without having to go through too much red tape to obtain the necessary permits. We need these skills everywhere on the continent. Where we have them, we must use them and where we do not, we must provide trainin.

“We do not have to depend on skills from Europe for our projects…The reliance on the West for our growth is no longer an option. Africans must determine their own growth path.”

Perhaps the solution to the trouble in Africa can only come from within.

“THE RELIANCE ONF THE WEST FOR OUR GROWTH IS NO LONGER AN OPTION. AFRICANS MUST DETERMINE THEIR OWN PATHS.”

CONSTRUCTION

MIDDLE EAST 15

Over the last few months, the CPI construction team has been talking to a number of contractors about the

challenges that they face in an industry that is growing at an increasing frantic pace. Not a week goes by without news of a new multi-million dollar deal being signed or a mega-project being announced, or so it seems.

While the bulk of the attention is focused on the big players in the market, what’s often neglected is that their presence has pushed a number of local contractors to the margins. While construction markets around the world operate on the maxim of ‘survival of the fittest’, it’s fair to say that local contractors are faced with an unfair disadvantage when it comes

to competing with the big boys.It’s a point that’s been raised by a

number of people that we’ve spoken to, and it’s hard to argue with their point. As Engineer Mohammed Hisham, of Fasttech Prestressing says, “A company like ours, established in the UAE, by full Arab capital, will be affected by foreign companies.”

“When they come from outside, they are fully financed from Europe and they are damaging the local industry and damaging our competition. All the time, they offer low prices and all the time, I have to go like them, because I need the projects. They have the ability to be financed by their main offices (overseas), but I have nobody to finance my losses,” he asserts.

Strong words indeed, but one that

gives rise to a sobering thought. Is the UAE a victim of its own success? Has the construction market become so dependent on outside companies that its own firms are unable to compete?

It’s a serious question we need to ask ourselves if we’re serious about advancing as an industry. A strong local base is the best way to ensure that the construction market continues to go from strength to strength.

Seeing contractors come in from outside the country and undercut local players is a common complaint from the industry, as Milind Deshmukh explains.

“The competition is growing, because of the regional situation, there are more expats coming and setting up business here, from Egypt, Syria and so on. What is happening is that this is driving the prices down and the bottom line is completely eroded.”

“This is making the markets unstable. These companies are new, but they may not perform and are thus spoiling the market,” he warns.

This unregulated market entry can have major consequences on how business is conducted here in the UAE, Deshmukh says, calling on the government to have a more active role in policing what companies enter tenders for contracts.

I think it’s something that should be considered very seriously. After all, wouldn’t developers be happier knowing who they’re giving jobs out to? Wouldn’t consultants want to know whether the contractors they’re recommending are up to the job?

Will it be so hard to introduce a central internet database for the industry? I don’t think so, and I think it’s something everyone involved in the local construction industry could get behind. With a few clicks of a button, a developer or a consultant could be reassured that their multi-million dollar project is in safe hands.

It’s an issue that I think the government should have dealt with a long time ago, and one that needs to be done sooner rather than later. The will from the industry is clearly there, but now it’s time the government stood up for the little guy.

Expert Opinion

April 2013

GAVIN DAVIDS Deputy eDItOR

CMMe

Stand up for the Little GuyGavin Davids asks if more needs to be done to support local, home grown construction in the Middle East

“THEy OFFEr LOW PrICES AND ALL THE TIME, I HAvE TO GO LIkE THEM, bECAUSE I NEED THE PrOjECTS. THEy HAvE THE AbILITy TO bE FINANCED by THEIr MAIN OFFICES (OvErSEAS), bUT I HAvE NObODy TO FINANCE My LOSSES.”

April 2013

CONSTruCTiON

middLe eaST16

Heavy Hitters

Saudi dreamS

Raad Abduljawad, managing director, Saudi Diesel talks to CMME about the booming Saudi market and guiding one of the world’s biggest dealers

April 2013

CONSTruCTiON

middLe eaST16

Heavy Hitters

Saudi dreamS

Raad Abduljawad, managing director, Saudi Diesel talks to CMME about the booming Saudi market and guiding one of the world’s biggest dealers

April 2013

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MIDDLE EAST 17

It’s late February in Dammam. While the heat of summer is still months away, the 200 people out in force for Saudi Diesel’s open day are having to guzzle bottled water to keep cool. Close to its headquarters in Al-Khobar, a crew of orange, roaring Doosan loaders and excavators, some strapping green Montabert crusher buckets

and breakers are making a terrible mess of a makeshift construction site. Loud and dusty, it’s not a day for those with sensitive hearing.

Considering his position as one of the most important men in one of the construction machinery industry’s most important markets, Raad Abduljawad, would have been forgiven if he had preferred to stay away from the commotion and watch from the adjacent hospitality marquis. Typically, for a man that used to sneak into his father’s equipment lot as a boy he instead stands with everyone else. Welcoming and polite, he is clearly in his element.

“One of the contractors told me that they are usually the ones that are out in the sun and today we were,” he jokes.

To him his role at the event is to stand with the contractors and “explain whatever you can.”

Very quickly it becomes clear that Abduljawad is like many of us. He’s someone with that innate passion for all things machinery-related.

“When I was a little boy, about 12 or 13 we had a house with a lot right next it. My father has always been into machinery and me and my brother would jump over the wall and go play with the equipment,” he recalls. “We drove my mother crazy!”

His fascination with machinery led him to studying mechanical engineering. With a tinge of regret he says that he was never destined to spend his life living his childhood fantasies. Although he says the urge to use the machinery has never gone away.

“Unfortunately,” he muses. Surely as managing director he has the privilege of being able to hop on board if he so desires? “No, they won’t let me anywhere near these machines!”

He adds: “In this business once you graduate you don’t get to practice. But you do get to question and learn technical things. And it means that you won’t just

April 2013

CONSTRUCTION

MIDDLE EAST 19

Heavy Hitters

“you Have to put tHings on tHe ground tHat ensure tHat if it sHould slow down tHen you are in a good position.”

let things pass by you. you can share ideas sometimes.”He then chuckles: “i can keep up to date reading

your publication. i try to read what i can.”saudi diesel equipment Company or sdeC was

first established in 1978 as part of the abduljawad group of Companies. while its main headquarters and manufacturing facility is still in al-Khobar it has expanded across the country, offering products and services through main branches in riyadh, Jeddah, Madinah while co-ordinating a network of other sub-dealers networks.

for the first two decades of its existence, under its former name saudi diesel generators it was most identified in the Kingdom as a manufacturer and distributor of power generation equipment and related accessories. However during the 1990s it took the deliberate decision to expand its product portfolio away from temporary power into other areas such as construction, lifting, concrete and rental equipment.

the dammam event is an opportunity to get some of this kit out in the open. Joining doosan’s heavy equipment and Montabert are bulldozers from Chinese manufacturer peng pu. However it is doosan’s 30t articulated dump truck attended by a team of excavators that attracts the most attention.

while abduljawad travels around the Kingdom to visit clients, he says that the majority of his time is spent in the office. instead he relies on intelligence from the company’s representatives and branches to gauge where the hot spots are in the booming market. while dammam, riyadh and Jeddah tend to get the most attention from those outside saudi, he says they are not the only areas of interest.

“Business is coming out of the secondary cities,” he explains. “as an example, we opened a branch

in Madinah six months ago and it has exceeded our expectations. we’ve been surprised by the amount of projects. now you have to get closer and closer to your customers. this month we are opening a workshop in Jubail. we will also open one in the north in the next few months.”

He continues: “we are always talking to our dealers, sales people, service people, to find out where they are travelling to.”

operating across vast stretches of a country almost ten times the size of the united Kingdom with half the size of population requires a special set-up when it comes to the sales and service effort.

“Customers often need a quick response and it is the sales manager that is often the point of contact, but all the way up to the management we have to ensure that we’re ready to react. the projects are moving further and further away from the main cities. we’re discovering our technicians are having to go further and further all the time too.”

abduljawad continues: “our branches have to keep close to their customers; to find out what projects he won and how and what we can offer to make their lives simpler.”

saudi diesel has grown as the market has grown. as a consequence his role has evolved to become less hands on. enpowering and trusting others in a family-owned organisation is not always easy even when it is practical, but abduljawad recognises that it has been crucial in the company’s progress to date.

“people in different departments and different branches have autonomy. they make decisions, they have to do that,” he remarks. “My door is always open so if anybody has an issue we can address it immediately. the important thing is they have the authority to solve these problems before they go that far. if they come to you, you have to listen.”

He adds ruefully: “i have accepted my change in role.”

the temptation to start collecting brands in a market that is super-hot like saudi must be considerable but abduljawad reflects on a brave decision to let some

April 2013

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MIDDLE EAST20

Heavy Hitters

CONSTRUCTION

MIDDLE EAST20

With so much changing at a rapid rate, it must be difficult to plan too far ahead. He says the company has been able to predict the shift in the market with an impressive degree of accuracy.

“A few years ago we started to plan for what the market is like today,” he comments. “We look at everything and thought this will be crazy, could it be possible? We took the chance and we were right.”

“Nobody knows when it could turn, but you have to put things on the ground that ensure that if it should slow down then you are in a good position.”

He continues: “Sometimes slowing down is not so bad. It gets rid of the weak and let’s you reflect on what you’ve got.”

Before the interview is wrapped up there is one remaining question that begs to be asked. If there was one machine that the 13 year old boy still inside the heart of one of the world’s biggest dealers could operate, what would it be?

“I used to drive a wheel loader. I think that would have to be the one.”

Saudi Diesel Equipment Co., Ltd. (SDEC) was established in 1978 and is part of the Abduljawad Group of Companies. Its main headquarters & manufacturing facility is in Al-Khobar. Additionally and it offers products and services through main branches in Riyadh, Jeddah, Madinah and other sub-dealers networks.

SDEC was for long known as the most reliable and innovative manufacturer and distributor of power generation equipment & related accessories, operated under the former name “Saudi Diesel Generators”.

During the 1990s the company extended its product portfolio and has become one of the world’s largest equipment distributors in the fields of Construction equipment, Lifting Equipment, Concrete equipment, and Rental Equipment. SDEC is the sole distributor for many international brands including Doosan Infracore, Everdigm, Montabert, MTU, Allison, MEKA, Don Yang, Peng Pu, and more.

Peax Equipment Rental is subsidiary of Saudi Diesel’s

offering many shortlong lease rental equipment such as power generators & related accessories, fork lifts, air compressors, air conditioning units, light towers, provisional power plants and other equipment.

The long heritage of SDEC allowed it to host a variety of tailored-made products & services for a wide range of customers, from large corporations & government entities to small & medium companies, and extending to individual establishments. The company serves many industries such as manufacturing, construction, oil & gas, governments, transportation, air ground support, and more.

Saudi Diesel’s main vision is to be the “preferred local partner”. It strives to achieve this vision by employing & developing the highest caliber of staff, providing the best delivery time in the market, and embarking in strategic long-term relationships with international equipment vendors. Saudi Diesel has always been known for its customer-friendly relationship environment, thus many consider SDEC as their “preferred local partner”.

A profile of SDEC

lines go at the turn of the decade as fundamental to its current standing.

“Three or four years ago we decided to shed some brands and concentrate on the stronger ones that we had such as Doosan of course,” he says looking out to the machines on show. “We decided to get a bigger market share by putting our resources behind Doosan, so we could grow. It is easy to get derailed and do too many things.”

While hindsight reveals it was the right decision, he explains that it was not so straightforward for everyone within the organisation.

“Some departments and sales teams did not find it easy, but the market has grown and we’ve been able to offer support to our customers (in other ways) such as finance, on-site services and long-term service contracts.

When Doosan’s regional director Gaby Rhayem spoke to CMME at the end of 2012, he intimated that Saudi Diesel was a proactive participant when the company organises meetings for its global network of dealers.

Abduljawad explains that those have become opportunities for his company to share ideas on big practice and customer engagement: “We can learn from each other. We openly share ideas with Doosan distributors.”

During an earlier demonstration, an engineer for the South Korean manufacturer showed CMME around the desert modifications (such as dust filters) on one of the standing wheel loaders. Abduljawad says that the

company benefits from being able to give feedback all the way from Al-Ahsa to Seoul.

“These things actually come from experience on site and talking to customers,” he comments. “There is no substitute for experience in the field. Right from the beginning with Doosan, whenever there has been an issue they have always been helpful.

He then jokes: “Whether it’s been July or August, they put up with it.”

One observer told CMME last year that the Saudi market is so busy at the moment, that any company can be successful whether they are well run organisations or not. Bad businesses make good money in the Kingdom.

“That’s very true,” says Abduljawad. “But how long will you last? You can do it while the market is good but the construction market is cyclical. We have to be there in the good and bad times too. Our customers have to believe in us and it is a journey we go on together.”

For the moment Saudi Diesel’s managing director can be content that his company can ride the wave of activity in the Kingdom from a position of strength.

“WE DECIDED TO GET A BIGGER MARKET SHARE BY puTTING OuR RESOuRCES BEHIND DOOSAN, SO WE COulD GROW. IT IS EASY TO GET DERAIlED AND DO TOO MANY THINGS.”

April 2013

CONSTRUCTION

MIDDLE EAST20

Heavy Hitters

CONSTRUCTION

MIDDLE EAST20

With so much changing at a rapid rate, it must be difficult to plan too far ahead. He says the company has been able to predict the shift in the market with an impressive degree of accuracy.

“A few years ago we started to plan for what the market is like today,” he comments. “We look at everything and thought this will be crazy, could it be possible? We took the chance and we were right.”

“Nobody knows when it could turn, but you have to put things on the ground that ensure that if it should slow down then you are in a good position.”

He continues: “Sometimes slowing down is not so bad. It gets rid of the weak and let’s you reflect on what you’ve got.”

Before the interview is wrapped up there is one remaining question that begs to be asked. If there was one machine that the 13 year old boy still inside the heart of one of the world’s biggest dealers could operate, what would it be?

“I used to drive a wheel loader. I think that would have to be the one.”

Saudi Diesel Equipment Co., Ltd. (SDEC) was established in 1978 and is part of the Abduljawad Group of Companies. Its main headquarters & manufacturing facility is in Al-Khobar. Additionally and it offers products and services through main branches in Riyadh, Jeddah, Madinah and other sub-dealers networks.

SDEC was for long known as the most reliable and innovative manufacturer and distributor of power generation equipment & related accessories, operated under the former name “Saudi Diesel Generators”.

During the 1990s the company extended its product portfolio and has become one of the world’s largest equipment distributors in the fields of Construction equipment, Lifting Equipment, Concrete equipment, and Rental Equipment. SDEC is the sole distributor for many international brands including Doosan Infracore, Everdigm, Montabert, MTU, Allison, MEKA, Don Yang, Peng Pu, and more.

Peax Equipment Rental is subsidiary of Saudi Diesel’s

offering many shortlong lease rental equipment such as power generators & related accessories, fork lifts, air compressors, air conditioning units, light towers, provisional power plants and other equipment.

The long heritage of SDEC allowed it to host a variety of tailored-made products & services for a wide range of customers, from large corporations & government entities to small & medium companies, and extending to individual establishments. The company serves many industries such as manufacturing, construction, oil & gas, governments, transportation, air ground support, and more.

Saudi Diesel’s main vision is to be the “preferred local partner”. It strives to achieve this vision by employing & developing the highest caliber of staff, providing the best delivery time in the market, and embarking in strategic long-term relationships with international equipment vendors. Saudi Diesel has always been known for its customer-friendly relationship environment, thus many consider SDEC as their “preferred local partner”.

A profile of SDEC

lines go at the turn of the decade as fundamental to its current standing.

“Three or four years ago we decided to shed some brands and concentrate on the stronger ones that we had such as Doosan of course,” he says looking out to the machines on show. “We decided to get a bigger market share by putting our resources behind Doosan, so we could grow. It is easy to get derailed and do too many things.”

While hindsight reveals it was the right decision, he explains that it was not so straightforward for everyone within the organisation.

“Some departments and sales teams did not find it easy, but the market has grown and we’ve been able to offer support to our customers (in other ways) such as finance, on-site services and long-term service contracts.

When Doosan’s regional director Gaby Rhayem spoke to CMME at the end of 2012, he intimated that Saudi Diesel was a proactive participant when the company organises meetings for its global network of dealers.

Abduljawad explains that those have become opportunities for his company to share ideas on big practice and customer engagement: “We can learn from each other. We openly share ideas with Doosan distributors.”

During an earlier demonstration, an engineer for the South Korean manufacturer showed CMME around the desert modifications (such as dust filters) on one of the standing wheel loaders. Abduljawad says that the

company benefits from being able to give feedback all the way from Al-Ahsa to Seoul.

“These things actually come from experience on site and talking to customers,” he comments. “There is no substitute for experience in the field. Right from the beginning with Doosan, whenever there has been an issue they have always been helpful.

He then jokes: “Whether it’s been July or August, they put up with it.”

One observer told CMME last year that the Saudi market is so busy at the moment, that any company can be successful whether they are well run organisations or not. Bad businesses make good money in the Kingdom.

“That’s very true,” says Abduljawad. “But how long will you last? You can do it while the market is good but the construction market is cyclical. We have to be there in the good and bad times too. Our customers have to believe in us and it is a journey we go on together.”

For the moment Saudi Diesel’s managing director can be content that his company can ride the wave of activity in the Kingdom from a position of strength.

“WE DECIDED TO GET A BIGGER MARKET SHARE BY puTTING OuR RESOuRCES BEHIND DOOSAN, SO WE COulD GROW. IT IS EASY TO GET DERAIlED AND DO TOO MANY THINGS.” SENNEBOGEN Maschinenfabrik GmbH

Sennebogenstraße 10, 94315 Straubing

Phone +49 9421 540-144

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April 2013

CONStRuCtiON

MiddlE EaSt22

Special Report

Saudi Still? As the rest of the Gulf looks on in envy at the Saudi market, on the inside the reality is less clear

April 2013

CONSTRUCTION

MIDDLE EAST 23

Almost a trillion dollars of ongoing projects till 2030 ensures the kingdom remains the magnet for contracting firms

Saudi Arabia will spend as much as USD 806 billion till 2030 on projects that are

currently in the design, bid or construction stage, according to Zawya Projects data compiled in November 2012. Of this, real estate projects account for USD 252.22 billion, energy projects USD 332.82 billion and infrastructure, water and power (IWP) USD 220.95 billion.

The country with the world’s second largest reserves of oil is proving to be the magnet for a globally beleaguered construction industry. Industry experts told Zawya they see 20% to 30% growth for the construction sector in the kingdom in 2013; the market is witnessing a shift from the dominance of the two big Saudi companies (Saudi Bin Laden and Saudi Oger) to an increasing number of joint ventures between regional and international players who have partnered with the two Saudi giants or other Saudi contractors to enhance ease of doing business in the country.

Continuing revenues from the hydrocarbons sector, the housing shortage and a consistent focus on infrastructure development will be the three key drivers to growth in 2013 and beyond. A recent study conducted by the Department of Urban and Regional Planning at King Faisal University revealed that the demand for new housing units in the kingdom is expected to grow to 2.9 million in the 20 years from 2005 to 2025, an average annual increase of about 145,000 units.

The study estimated the number of dwellings to be rebuilt in the same period at about 1.1 million. Not surprising, considering that Saudi Arabia has a young population with half the citizens below 25 years of age.

The International Monetary Fund (IMF) in its latest World Economic Outlook has retained robust economic growth projection for Saudi at 6% y-o-y in

2012 and revised upwards its projection for 2013 to 4.2% y-o-y from 4.1% y-o-y.

“The private sector is again expected to lead the way, reflecting the increased role of the private sector in the economy, it’s a clear break from the past,” the IMF said.

According to the Saudi budget, general revenues for the fiscal year 2011/2012 were estimated at SAR 702 billion (USD 187.2 billion). The budget surplus was estimated at SAR 16 billion. While the conservative projections leave room for larger surpluses, the budget firmly underpins the government’s commitment to sustaining long-term development in infrastructure, education, health care and social and economic projects.

Again, the government is increasingly looking at public-private partnerships in projects within and related to infrastructure, even as it puts into motion a plan to privatize the electricity sector by 2014.

In August, Saudi announced plans to spend USD 1.1 billion to build hospitals and health care centers, apart from a USD 9.3 billion metro system in Jeddah. In the same month, the Saudi government approved a USD 16.5 billion plan to modernize transport in Makkah, which will include a bus network and a 182km metro system. In July, Riyadh pre-qualified four consortia for bidding to build its metro system.

“Saudi Arabia will see huge investments in infrastructure, educational institutes and universities, healthcare (already 10 hospitals have been awarded this year, which will go into construction next year) and will be one of the largest markets for construction in the region,” said

“ThE PRIvATE SECTOR IS ExPECTED TO LEAD ThE WAy. IT’S A CLEAR BREAK FROM ThE PAST.”

April 2013

CONSTRUCTION

MIDDLE EAST24

Special Report

Waeil Al Chamma, business development manager of C-Visions, a leading formwork player in the region.

“The contractors are getting more and more advanced in terms of construction technologies and quality systems and products that can be used over several projects. We believe that with the huge budget, Saudi Arabia will be busy for the next four to five years. In 2013, most of the projects that will commence work will have the potential to continue for the following 24 to 36 months. This will keep the market very busy.”

Al Chamma added that there is a shift in the dominance of the local players. “While it is true that local contractors dominated the market with larger market shares through developing themselves or through joint ventures with international players, the situation is changing. The market was earlier dominated by two major players – Saudi Bin Laden and Saudi Oger. But due to the increase in the number of projects not matching market supply, the government is putting more pressure on developing new players on the ground to create more jobs for locals and creating new policies and strategies for the construction sector,” he said.

Agreed Bishoy Azmy, chief executive at Al Shafar General Contracting: “The Saudi market has fewer players compared to Qatar or UAE. There has been very significant work awarded to Bin Laden and Oger in the past. Besides these two, the market has some 10 medium sized players followed by many smaller players. But due to the rise in projects and the difficulties faced by international players in understanding the market, the legal and

bureaucratic intricacies, many companies such as Orascom and Arabtec have joined hands with these big local players, while others are joint venturing further down the road.”

Examples include Habtoor Leighton Group, operating as Leighton Middle East Contracting, joining hands with Al Latifia Trading and Contracting to implement a health care contract at the King Fahad Medical City.

According to Azmy, good oil revenues and resources will enable Saudi Arabia to see continued growth in the years to come.

“The roads, airports, hospitals are old; they were built in the 70s and 80s. These facilities need revamping and hence the construction industry has a lot of potential in the country. There is a lot of work coming up in Saudi Arabia in terms of volume,” said Azmy.

The government is also pushing for housing units as well as education and health care, added Ziad Yazbeck, senior vice president at Glass LLC, a processor of architectural flat glass. Glass has a major presence in Saudi Arabia with its venture Saudi American Glass (SAG).

“The country is also currently working on the standardisation of the building codes and SAG is working closely with the architects and consultants to ensure that international standards are

“THErE IS A LOT OF WOrK COMInG Up In SAUdI ArABIA In TErMS OF VOLUME.”

The Construction Machinery Show returns to Jeddah in Apri. Ahead of the event CMME was in the city last month and visited the steadily evolving Corniche area.

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Productivity, reliability, comfort, safety, profitability.

Without wasting a drop of fuel.It’s not simply digging.

It’s fulfilling the highest quality standards. Award winner around the

world, a champion in every jobsite.Including mine, obviously.

ASK ME WHY

THE THINKING

MACHINE

CASE CRAWLER EXCAVATORS

Bahrain Abdulla Ahmed Nass & Sons +973 1 770 31 23 www.nassgroup.comQatar Nasser Bin Khaled & Sons Co +974 4 458 01 38 www.nbks.comKSA Roots Group Arabia +966 2 699 66 28 www.arabian-roots.comOman International Heavy Equipment L.L.C. +968 2 459 12 99 www.ihe-oman.comJordan The Commercial & Industrial Co (C.I.C) +96 2 550 62 60 www.cic.com.joLebanon Someco +96 1 125 36 00 www.somecointernational.comKuwait Instant Access Co +965 2 225 99 72 www.instantaccess-co.comUAE Al Shirawi Enterprises +971 4 371 85 85 www.alshirawienterprises.com Egypt Unimar Egypt +202 3 346 51 80 www.unimaregypt.comTurkey Cukurova Ziraat +90 216 451 24 04 www.cukurovaziraat.com.tr

www.casece.com

Productivity, reliability, comfort, safety, profitability.

Without wasting a drop of fuel.It’s not simply digging.

It’s fulfilling the highest quality standards. Award winner around the

world, a champion in every jobsite.Including mine, obviously.

ASK ME WHY

THE THINKING

MACHINE

CASE CRAWLER EXCAVATORS

Bahrain Abdulla Ahmed Nass & Sons +973 1 770 31 23 www.nassgroup.comQatar Nasser Bin Khaled & Sons Co +974 4 458 01 38 www.nbks.comKSA Roots Group Arabia +966 2 699 66 28 www.arabian-roots.comOman International Heavy Equipment L.L.C. +968 2 459 12 99 www.ihe-oman.comJordan The Commercial & Industrial Co (C.I.C) +96 2 550 62 60 www.cic.com.joLebanon Someco +96 1 125 36 00 www.somecointernational.comKuwait Instant Access Co +965 2 225 99 72 www.instantaccess-co.comUAE Al Shirawi Enterprises +971 4 371 85 85 www.alshirawienterprises.com Egypt Unimar Egypt +202 3 346 51 80 www.unimaregypt.comTurkey Cukurova Ziraat +90 216 451 24 04 www.cukurovaziraat.com.tr

www.casece.comApril 2013

CONSTRUCTION

MIDDLE EAST 27

“Sometime it takeS two yearS of preparation in termS of tender awardS for a project of one year.”

implemented during construction,” yazbeck said.“years ago, Saudi arabia started investing

in industry. thus, the Saudi building products are actually on par with international building standards. So in terms of building materials and products, Saudi can easily cater to the building boom and really doesn’t need to go international. the client is willing to spend on high quality.”

But there are challenges that face the industry, which include shortage of skilled manpower and delay in project awards.

“if you are a Gcc player, visas are not an issue. But labour is a big problem. you cannot get labour on short contracts – you need to implement a two- to three-year contract. this has created a market for companies supplying labor who bring in people and rent them out,” said al chamma.

“again, though it sounds strange, sometimes it takes two years of preparation in terms of tender awards for a project of one year – though the market is always dynamic.”

asked which regions of Saudi arabia will see maximum development potential for the construction industry, al chamma singled out the riyadh area. “there is huge development in the holy areas of mecca and medina. the government is also working on public transport, metros and railways,” he said.

jeddah and riyadh both need bridges and tunnels. “additionally, while Saudi arabia has announced work on the tallest tower in the world, there is no clarity on the development in the area around the building. we could expect to see more information on that in 2013,” al chamma said, forecasting around 20% growth for the Saudi construction market in 2013.

“mecca, medina and riyadh will contribute more

than 75% of the development in terms of construction in the coming year. rural areas such as jazan and Hail are also seeing tremendous growth. we are also expecting to see some work on the riyadh airport since it is an old airport that is seeing an increasing number of daily flights due to frequent visits by investors and businessmen, especially on weekends.”

according to the arriyadh development authority’s latest report, more than 2,699 development projects are being implemented in riyadh region alone at a total cost of more than Sar 247 billion and offering various opportunities for private sector participation.

phillipe dessoy, general manager at Six construct, said Saudi arabia is the company’s biggest market in the region. “i will not be surprised to see double digit growth in 2013 for Saudi arabia.”

added yazbeck: “it is good to remember that the client is the most important person in Saudi arabia and is very involved with each and every decision. what other nations may perceive as delay is actually the way of doing business in Saudi. even if they take time, projects are being implemented. we expect to see a growth of 30% and upwards in the country for the coming year.”

The Saudi Arabian city of Jeddah is set to host the largest event of its kind in the region. Dedicated to heavy machinery and construction equipment, the Construction Machinery Show will be held in the Red Sea city from April 14 - 17, 2013.

Organised by the Dubai-based publishing house CPI, along with the well-known Saudi exhibitions organiser, Al-Harithy Company for Exhibition (ACE), the event will run in conjunction with the Saudi Building and Interiors Exhibition.

The show is attracting a lot of attention from major players in the Construction and Machinery industries due to the heavy emphasis placed by the Saudi government on developing the construction market in the Kingdom.

Figures from the KSA Ministry of Finance indicate that the Saudi government is investing $180bn in building 6.9 million housing units by 2020, $16.3bn for the construction of 92 hospitals; while an estimated $40bn will be dedicated to the construction of smart buildings across the Kingdom by 2018.Raz Islam, Publishing Director of Corporate Publishing International, the organiser of the event, said: “The 2013 Construction Machinery Show will have a double

boost this year as it will be co-located with the Saudi Building & Interiors Exhibitions (SBIE), allowing us to capture the players in the construction and machinery industries, from engineers to architects, consultants, suppliers and manufacturers.”

“The Saudi Arabian construction market is booming and is attracting large scale projects that are being built across the Kingdom, so our show comes at an ideal time to introduce and familiarise visitors and investors to the various capabilities and potentials available in the market,” he said.

Islam pointed out that the show will also provide visitors with a unique insight to the latest developments, equipments and technologies being used in the construction industry, as well as a wide range of construction and machinery equipment that will be showcased during the event.

This will include heavy equipment live demonstrations and auctions to benefit the event’s visitors.The show will feature companies that are showcasing a host of construction and machinery products, services and solutions ranging from diggers to crawlers from cranes to trucks and lighting firms to generator businesses.

The return of the Construction Machinery Show

Reaching new heights in the region

April 2013

ConstRuCtIon

MIDDLe east30

Special Interview

Roots GRoup on the CaseOusama Fansa of Roots Group talks the company’s expansion in Saudi Arabia and the importance of the Case/CNH brands at its new opening in Riyadh

the past year has seen Lebanese operator Roots Group make considerable ground in the Saudi Arabian market. Armed with a strong relationship with Case/CNH the company has

set up a major distribution centre in the Red Sea hub of Jeddah at the beginning of 2012. In March it opened a new facility and showroom in Riyadh, a move its CEO Ousama Fansa says will help accelerate the grabbing of market share. Standing on the sidelines of the opening, Fansa explains to CMME that the company has set itself the realistic target of reaching the number two spot in segments where Case equipment is technologically competitive.

CMME: Thank you for inviting us to the opening of Roots Group’s new Riyadh facility. The display of the Case equipment you have here is particularly impressive.OUSAMA fANSA: This is a big day for us and we expect big coverage! [Laughs]

CMME: How many people do you think will come to this event. Of: I have no idea, but we invited 200. Many of whom will hopefully become our customers.

CMME: How does the Riyadh location fit in with your facility in Jeddah. Of: As you know we opened our office in Jeddah last March and that has gone incredibly well. Obviously as it is our main branch, it is much bigger than this one. That is our main parts and spares distribution hub for Saudi Arabia and this branch facility will be directly supplied from that location. CMME: While you’re at the early stages of your growth in Saudi Arabia, I understand that the Roots Group has been a fixture in other markets for years.Of: Yes in terms of machinery and equipment, we’ve been in this business for a long time – since the mid-1990s. Our relationship with Case started in 2006. We moved to Saudi in 2011 and we expanded immediately in the market.

April 2013

ConstRuCtIon

MIDDLe east30

Special Interview

April 2013

ConstRuCtIon

MIDDLe east30

Special Interview

Roots GRoup on the CaseOusama Fansa of Roots Group talks the company’s expansion in Saudi Arabia and the importance of the Case/CNH brands at its new opening in Riyadh

the past year has seen Lebanese operator Roots Group make considerable ground in the Saudi Arabian market. Armed with a strong relationship with Case/CNH the company has

set up a major distribution centre in the Red Sea hub of Jeddah at the beginning of 2012. In March it opened a new facility and showroom in Riyadh, a move its CEO Ousama Fansa says will help accelerate the grabbing of market share. Standing on the sidelines of the opening, Fansa explains to CMME that the company has set itself the realistic target of reaching the number two spot in segments where Case equipment is technologically competitive.

CMME: Thank you for inviting us to the opening of Roots Group’s new Riyadh facility. The display of the Case equipment you have here is particularly impressive.OUSAMA fANSA: This is a big day for us and we expect big coverage! [Laughs]

CMME: How many people do you think will come to this event. Of: I have no idea, but we invited 200. Many of whom will hopefully become our customers.

CMME: How does the Riyadh location fit in with your facility in Jeddah. Of: As you know we opened our office in Jeddah last March and that has gone incredibly well. Obviously as it is our main branch, it is much bigger than this one. That is our main parts and spares distribution hub for Saudi Arabia and this branch facility will be directly supplied from that location. CMME: While you’re at the early stages of your growth in Saudi Arabia, I understand that the Roots Group has been a fixture in other markets for years.Of: Yes in terms of machinery and equipment, we’ve been in this business for a long time – since the mid-1990s. Our relationship with Case started in 2006. We moved to Saudi in 2011 and we expanded immediately in the market.

April 2013

ConstRuCtIon

MIDDLe east30

Special Interview

April 2013

CONSTRUCTION

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CMME: A Lebanese company that is really moving in the Kingdom. It sounds like a fully-fledged international expansion. OF: [Laughs] Maybe. The important thing is that we’re really taking market share (from other established companies in Saudi). We are very close to 3% in terms of share already. Which is quite significant.

CMME: That’s quite impressive considering you’ve only had a physical presence for a year. Can you maintain it?OF: We have to hope! We are aiming for 7-8% market share by the end of this year.

CMME: You’re a new company in a new building in Riyadh, how does it fit in with your approach in the market?OF: We’re pleased we’ve got it. Obviously the parts and services will be run out of Jeddah. For Case it is one of, if not the largest, in the world. It is on 15,000 sqm of land and with a built up area of 5,000 sqm. And this is just for the Saudi market. From there we can supply spare parts within 24 hours.

CMME: How do ensure coverage of such a large country from what is currently only two locations?OF: Well they don’t tell the whole story. Everything does not have to go through our workshop and warehouse for this business. We also have mobile workshops and repair centres. We have ten that are on the move and go straight to the client.

CMME: What are the advantages of this approach. OF: You can’t move a machine that needs repair. They’re cheaper and faster.

CMME: Many other companies we meet that are operating in foreign markets try to replicate their systems and structures they use at home. Does Roots Group work the same way here as it would in the Lebanon?OF: Our operation in the Lebanon is a lot smaller. The scale is different and in many ways is not comparable but it is also similar. We learnt from Case (in the Lebanon) and there we had our learning curve. We moved our mentality to Saudi.

CMME: I think it is fair to see that up to this point that Case’s technology – which on the face of it ticks boxes such as robustness, power and reliability in the desert – hasn’t been matched by adoption in the Gulf. How are you going to tackle that discrepancy? OF: Parts and distribution for one but Case is in the top three in the world and not top three in Saudi Arabia. However we’re aiming to become number two here.

CMME: While I can see how the machines compare well to their other badge counterparts, isn’t the challenge here competing with OEM/dealer partnerships that have a few decades headstart? That won’t be easy. OF: Here yes, Caterpillar, for example are quite well established and is the market leader. But in small equipment I think we can compete. Our success is not just about the product, it is also about listening

to the customer and working with the OEMs so we can react to what they want and need.

CMME: It helps if you can also deliver on any promises you make. OF: This is why the parts and distribution facility is important. We want to be able to show people our workshop and impress the client that this product will be properly serviced. Once they see it, they will buy.

CMME: Are some of those customers, ones that may have drifted from Case under the previous Saudi dealer?OF: The previous dealer was not investing in aftersales. They were just looking to sell the product, get the margin and go! This is not the way to do it.

CMME: How are you qauntifying what makes a success for you here? What percentage of sales growth are aiming for?OF: About 15%.

CMME: Ambitious.OF: The market is about 10,000 units per year. So we want 1,500 per year. There’s nothing to hide, look at what we’ve done with compacts in the first year. We’re close to 5% (in those ranges). CMME: Given that Case machines are among

“Our SuCCESS IS nOT JuST ABOuT THE PrOduCT, IT IS ALSO ABOuT LISTEnIng TO THE CuSTOMEr And WOrkIng WITH THE OEMS.”

those specified by some consultants that must be an advantage. OF: Absolutely.

CMME: And you’ve also got the advantage of being partly owned by Saudi Bin Laden Group...OF: Actually that (SBg) is just 12% of our turnover. However if you go and look at SBg’s sub-contractors you don’t yet see our products as they have well-established machines. There are also a lot of small contractors with five or six machines. They could need our trained staff on site to help them.

The region’slargesT ConsTrUCTioneQUiPMenT eXhiBiTion

Co-located with Saudi Building & Interiors Exhibition

14-17 April 2013Jeddah Centre for Forums & EventsKingdom of Saudi Arabia

Find out more. Visit www.constructionmachineryshow.com© 2013 Corporate Publishing International. All rights reserved.

The region’slargesT ConsTrUCTioneQUiPMenT eXhiBiTion

Co-located with Saudi Building & Interiors Exhibition

14-17 April 2013Jeddah Centre for Forums & EventsKingdom of Saudi Arabia

Find out more. Visit www.constructionmachineryshow.com© 2013 Corporate Publishing International. All rights reserved.

Following a successful 2012 event, the Construction Machinery Show, the largest construction machinery exhibition in the Gulf region, returns to Jeddah between 14-17 April 2013.

With the total value of awarded construction contracts reaching $72 billion in 2011 and with much more to come, the Construction Machinery Show is the ideal opportunity for buyers of construction machinery and heavy equipment to meet manufacturers, suppliers and distributors.

A total of 450 billion Saudi Riyals ($120 billion) will be spent on construction projects between 2012-2016, and much of the development is focused on turning Jeddah into a world class city, making it the perfect location for the Construction Machinery Show.

The 2012 exhibition proved that Saudi Arabia is the most dynamic country in terms of construction in the region, drawing praise from exhibitors for the quality of his attendees and the number of deals signed on the show floor.

With over 20,000 sqm of space at the Jeddah Exhibition Centre dedicated purely to construction equipment - the Construction Machinery Show in 2013 will once again stand out as an event where visitors come to buy.

We will be back in April 2013, Will you?

April 2013

COnstrUCtiOn

Middle east34

Site Visit

Under the island CMME visits the Kuwaiti contractor that is overseeing

the below ground infrastructure work on Abu Dhabi’s floating city within a city, Al Reem.

April 2013

COnstrUCtiOn

Middle east34

Site Visit

Under the island CMME visits the Kuwaiti contractor that is overseeing

the below ground infrastructure work on Abu Dhabi’s floating city within a city, Al Reem.

April 2013

CONSTRUCTION

MIDDLE EAST 35

Kuwait contractor CGC has been making considerable progress in the Abu Dhabi market since 2008, registering itself as Combined Group Contracting Co. Already considered at the vanguard of contractors

in its home country it says it was enticed to Abu Dhabi as part of its expansion across the GCC by the UAE’s capital’s aggressive plans for development.

Entering just before the fallout from the global economic downturn hit the country, Combined Group was confident it could win a share of the $120 billion allocated for roads, infrastructure and construction projects planned around the emirate. While the market subsequently slowed down during the crash, it has also proven to be much more resilient than other areas. When construction ground to a halt in 2010 and 2011 in Dubai, Abu Dhabi still provided a useful string of contracts; albeit it at a slower pace than previously experienced.

One of the most notable developments during that period was Al-Reem Island located just off the centre of the main island. While nearly all of the construction works stalled during the dowturn by the start of last year most were back on track again.

The entire area of the $30 billion site is 6.5 million sqm and a number of projects, including Surouh’s eye-catching 1,400 unit 4 million square foot Sun and Sky Towers development saw completion and handover in 2012. The island also saw the first phase of its infrastructure reach completion, however Combined Group is now well-underway with infrastructure works on Sectors 2 and 3, explains senior project manager Hafez Barakat.

“Reem island is governed by three main developers, Surouh, Tamouh and Reem Investments,” he begins. “Initially our client was Tamouh but after several delays on the design, the contract was diverted to Al Bunya.”

Al Bunya was established to serve as the municipality on the island – the first area to be designated as a free zone within Abu Dhabi. Its creation has helped make sense to the design requirements of the project. Part of this role gives it responsibility for the infrastructure work being undertaken by Combined Group. Acting as engineer on the infrastructure work is Hyder

April 2013

CONSTRUCTION

MIDDLE EAST 37

Property boom in AD?Rents in Abu Dhabi’s prime areas have risen by as much as 25 per cent over the past six months as the city experiences an influx of Abu Dhabi government workers living in Dubai.

According to the property agent Cluttons, average rents in some of the city’s most exclusive areas have increased by 10 to 25 per cent during the past six months, following a decree last year that could result in government departments cutting housing allowances for employees living outside the emirate and as renters flock to newer schemes.

Cluttons reports that areas such as Raha Beach, Raha Gardens, Al Reem Island, Saadiyat and Al Reef have all recorded rent increases over the past six months, even though average rents in the city have fallen significantly, driven by an oversupply of apartments.

According to CBRE, Abu Dhabi’s economy is forecast to grow 5.7% annually during the period 2013 - 2016.

The non-oil sector, led by the industrial, tourism, hospitality and retail sectors, is predicted to rise by 6.5% per annum over the next four years. Government and related commercial entities remains the key demand generator for the capital’s office sector.

The Abu Dhabi Department of Economic Development (ADDED) has reported GDP growth of around 3.9% during 2012, and an average forecast of 5.7% for the period 2013 - 2016.

Oil related revenues remain the key contributor to the emirate’s economy, although the non-oil sector is expected to see stronger growth in the medium term, rising by an average of 6.5% annually over the next four years.

Government

expenditure in physical and social infrastructure will continue to fuel economic activity and ultimately help to drive short to medium term growth in the capital.

The year concluded with a number of important announcements from the UAE Central Bank regarding the regulation of the country’s mortgage market.

The bank circular (dated 30th December 2012) stipulated that first home lending to non-nationals should be restricted to 50% and 70% for nationals. Second home lending and lending on subsequent properties should be restricted to 40% for non-nationals and 60% for nationals.

These rates, amongst other criteria, are now being assessed under a formal review process. The results of this consultation period are expected to be announced later in the year.

Prime office rents are expected to remain relatively flat during the year despite a reduced pipeline of Grade A accommodation. Expansion of incentives and increasing flexibility in lease terms are likely over the next 12 months.

The emergence of rental growth in selected prime properties is taken as an early indicator of a market recovery in the residential market, although this recovery will remain highly location or project-specific for the time being.

The long term stability of the property market can be aided by further regulation of the banking and real estate sectors, but any strategy should look to foster end-user demand rather than constraining it, with more restrictive measures required to limit the activities of speculators and the negative effects of ‘hot money’ on the market.

Consulting. Its project manager explains that the entire island is a mixed-use development on a grand scale, incorporating commercial, residential and business project.

“After the financial crisis progress was reduced,” he continues. “But we are moving again and we expect another 20 years of development on the island.”

The contract for the work on Sectors 2 and 3 was initially priced at $140 million although he intimates that additional services will take that higher as work progresses.

With the initial completion date scheduled to be 21 October, 2011 it would be easy to entirely blame financing for the delay but he explains that was not necessarily the full reason.

“It was extended due to several issues with designs and site obstructions. Several plot contractors started building their projects and then stopped during the crisis.”

Fortunately with finances addressed and the economy looking brighter, work has been restarted on most of those postponed projects.

“There is a lot of work still to be done,” he enthuses.Combined Group is using a large fleet of equipment

on the site, including 320D excavators and 950H wheel loaders supplied by local dealer Al-Bahar. The machines were busy on trench digging and soil removal during CMME’s visit as the company slowly carves out the roads and utility corridors on the island. In total it is employing more 325 people on the site. The project manager says that its role can

“IT WAS ExTEnDED DuE TO SEvErAl ISSuES WITH DESIGnS AnD SITE OBSTruCTIOnS. SEvErAl plOT COnTrACTOrS STArTED AnD THEn STOppED DurInG THE CrISIS.”

Site visit

April 2013

CONSTRUCTION

MIDDLE EAST 39

be divided into three main areas. First of all there is the task of installing the utilities required on the island which involves installing water lines, traffic control systems, gas lines, power and CCTV. It is also conducting road and paving works and constructing five bridges.

Barakat explains that they are now close to half-way through the project and on course to finish sectors 2 and 3 by the end of the year.

“By the end of 2013 we hope to open up Sector 4,” he adds.

A party of representatives from Caterpillar and local dealer Al-Bahar were present during the visit to Al-Reem. Fortunately the feedback from the plant manager was largely positive.

“He was showing me the reports on the machines today,” he explains. “And the shearers, the wheel loaders, are working more than 260 hours per month. We’re getting full utilisation from the machines.”

In the beginning of the project Combined Group had relied on rental equipment for the job. He suggests that this had not been an ideal arrangement.

“We had only been in Abu Dhabi for about two years,” he says. “CGC is a big shark in Kuwait but [here] the operation was dependent on rental equipment. The management then decided to go and buy its own equipment. Frankly in the beginning,

because of the financial crisis, it was easy to get equipment from other companies. We had work and good operators and we moved on the project.

“Later on, we started recruiting our own operators for our own equipment. We didn’t have a problem on the equipment side,” he reflects.

A move to back to buying equipment may seem the reverse of trends in the market, but he sees it as a necessary requirement for the type of work he is tasked with.

“A contractor has to have his own equipment, especially in infrastructure work. Each company has their own manpower and they should be able to depend on their own equipment. These should be at the source of their company.”

Growing its own fleet has meant recruiting operators from within the UAE.

“They all know the equipment, and they all know Caterpillar,” he says charming his guests. “Although at the beginning your prices were a little high!”

“We cannot compare now to 2008 and 2009. Then there was a lot of equipment in the market and just standing in Mussafah. It was easy to get what you need. Now when it comes to tendering it’s better for you to have your own equipment.”

Before the visit turns into a lovefest for all things Caterpillar, the arriving plant manager challenges the Caterpillar team with news that other contractors using Komatsu excavators are seeing high production rates comparable with the US machines. However the project manager on the site injects some diplomacy into the proceedings.

“Of course you can have a mix, but with Caterpillar you have a name you can trust. Komatsu, Volvo, all these are good machines.”

“CGC IS A BIG SHARK IN KUWAIT BUT THE OPERATION WAS DEPENDENT ON RENTAL EQUIPMENT. THE MANAGEMENT THEN DECIDED TO GO AND BUY ITS OWN EQUIPMENT.”

Site Visit

34-39 Al Reem_Site visit.indd 39 3/30/13 11:19 AM

www.newholland.com

Country Dealer Contact Number Web Page

Bahrain Ahmet Mansoor Al A’Ali +97317772256 www.al-aali.com

Kuwait ICTCO +96524749312 www.ictcogroup.com

KSA Arabian Auto Agency +96626695595 www.aaa.com.sa

UAE United Al Saqer Group +97125545900 www.alsaqergroup.com

Sudan The Central Trading Co. +249187144164 www.ctcgroupltd.com

Country Dealer Contact Number Web Page

Oman International Equipment & Contracting Co LLC +96895335107 www.suhailbahwanautogroup.com

Qatar Qatar Welding & Fabrication Supplies W.L.L +97466852999 www.qfab.com.qa

Egypt Omatra +20235390051 www.omatra.org

Turkey Çukurova Ithalat ve Ihracat A.Ş +902163953460 www.cukurovaithalat.com

Lebanon Medevco +9619233550 www.medevco.me

April 2013

CONSTRUCTION

MIDDLE EAST 41

Raw powerProduct Focus

EVERYTHING YOU NEED TO KNOW.

page58 PORTED Equipment ready for use at the region’s ports and logistics hubs.

page 47

DON’T JUST GUESSTIMATE

The Top Ten mistakes to be made when conducting a

cost estimation exercise for construction projects.

page 51 BAUMA PREVIEW A special look at the Bauma show coming to Munich later this month.

page62 PIPED

Turkish contractor Tefkan’s work on the 187km pipeline

in Morocco.

page59 LINDE UP Linde heads list of equipment stacking up on dockside operations.

page 43 RAW POWER German technology on show at Bauma 2013.

April 2013

CONSTRUCTION

MIDDLE EAST42

New Products

SpecificationS:• Batching: 4m3perbatch• Blender capacity: 150m³• Silo capacity: 100teach• Mixing cycles on job: 45seconds

BHS-Sonthofen’s Twinmix 4.0 mixing plant, its mobile, containerised, high-performance plant, has come through its “baptism of fire” with the construction of

a section of the A71 autobahn in Germany “with flying colors”.

With a rated output of up to 320 m³/h of compacted concrete, it is the world’s largest quickly relocatable mobile mixing plant.

BHS delivered the plant in May 2012. It was used for the first time at the construction site for the new section of the A71 autobahn between the Artern and Heldrungen interchanges and proved its worth from the outset. Here alone, 173,500 m² of paving had to be produced for heavy traffic areas of construction classification SV.

This first job showed that the Twinmix 4.0 consistently supplies considerably more than 300 m³ of compacted concrete per hour in daily construction site operation with the mixing cycles of 45 seconds prescribed by the formulas used. The plant is thus able to keep up with large slipform pavers that process this quantity. It must not be forgotten, however, that this kind of hourly output makes it a logistical challenge to keep up the supply of the required quantities of aggregate, cement and water and to transport the freshly mixed concrete away.

The plant has been in operation in eastern Poland since the fall of 2012. There, Bögl is currently modernizing and expanding the maneuvering area of Rzeszów-Jasionka Airport. In summer 2013, the plant is scheduled to be moved to its next location.

It took about a week to install the Twinmix 4.0 for the first time. In addition to the actual installation work, this included the calibration of the scales and the training of the operating personnel.

Complete disassembly of the plant at the construction site in Artern took one and a half days with just four men. Installation and commissioning at the new construction site took just two days. Allowing a day for transportation, the plant can be completely relocated within a week. The fact that the plant requires no foundations contributes significantly to this short installation time. Leveled ground is sufficient.

The new plant is built around two twin-shaft batch mixers of the DKX series, which each produce 4 m³ of compacted concrete per batch. When dimensioning the plant, BHS opted for this batch size because open trucks, with a capacity of 12 m³, can be loaded with just three batches. Compared with mixers that produce 3 m³ per batch, for example, this means a time saving of 25 percent.

The plant has a high-performance double

aggregate blender with a storage capacity of 150 m³. The ground-level additive container contains the chemical storage tanks, installed in a closed containment tank, in addition to the water and chemical pumps. Above this is the control room, which is 3 m wide, air-conditioned and heatable. Thanks to its raised position and the large windows on all sides, the plant operator has an unimpeded view of the entire site and to the concrete outlet. Like the additive container, this module is also reinforced and thus serves to support the plant.

The four cement silos each have a capacity of 100 t; in the special mobile silo variant, they can be transported complete with the roof-edge railings and ladder ready-mounted. They are installed on prefabricated foundation plates which are transported from one construction site to the next.

All modules are clad and can also be insulated on request in order to ensure winter operation.

The world’s largesT conTainerised, moBile mixing planTWhy get it: HigHly mobile but manages... 300 m³ of compacted concrete per Hour

April 2013

CONSTRUCTION

MIDDLE EAST42

New Products

SpecificationS:• Batching: 4m3perbatch• Blender capacity: 150m³• Silo capacity: 100teach• Mixing cycles on job: 45seconds

BHS-Sonthofen’s Twinmix 4.0 mixing plant, its mobile, containerised, high-performance plant, has come through its “baptism of fire” with the construction of

a section of the A71 autobahn in Germany “with flying colors”.

With a rated output of up to 320 m³/h of compacted concrete, it is the world’s largest quickly relocatable mobile mixing plant.

BHS delivered the plant in May 2012. It was used for the first time at the construction site for the new section of the A71 autobahn between the Artern and Heldrungen interchanges and proved its worth from the outset. Here alone, 173,500 m² of paving had to be produced for heavy traffic areas of construction classification SV.

This first job showed that the Twinmix 4.0 consistently supplies considerably more than 300 m³ of compacted concrete per hour in daily construction site operation with the mixing cycles of 45 seconds prescribed by the formulas used. The plant is thus able to keep up with large slipform pavers that process this quantity. It must not be forgotten, however, that this kind of hourly output makes it a logistical challenge to keep up the supply of the required quantities of aggregate, cement and water and to transport the freshly mixed concrete away.

The plant has been in operation in eastern Poland since the fall of 2012. There, Bögl is currently modernizing and expanding the maneuvering area of Rzeszów-Jasionka Airport. In summer 2013, the plant is scheduled to be moved to its next location.

It took about a week to install the Twinmix 4.0 for the first time. In addition to the actual installation work, this included the calibration of the scales and the training of the operating personnel.

Complete disassembly of the plant at the construction site in Artern took one and a half days with just four men. Installation and commissioning at the new construction site took just two days. Allowing a day for transportation, the plant can be completely relocated within a week. The fact that the plant requires no foundations contributes significantly to this short installation time. Leveled ground is sufficient.

The new plant is built around two twin-shaft batch mixers of the DKX series, which each produce 4 m³ of compacted concrete per batch. When dimensioning the plant, BHS opted for this batch size because open trucks, with a capacity of 12 m³, can be loaded with just three batches. Compared with mixers that produce 3 m³ per batch, for example, this means a time saving of 25 percent.

The plant has a high-performance double

aggregate blender with a storage capacity of 150 m³. The ground-level additive container contains the chemical storage tanks, installed in a closed containment tank, in addition to the water and chemical pumps. Above this is the control room, which is 3 m wide, air-conditioned and heatable. Thanks to its raised position and the large windows on all sides, the plant operator has an unimpeded view of the entire site and to the concrete outlet. Like the additive container, this module is also reinforced and thus serves to support the plant.

The four cement silos each have a capacity of 100 t; in the special mobile silo variant, they can be transported complete with the roof-edge railings and ladder ready-mounted. They are installed on prefabricated foundation plates which are transported from one construction site to the next.

All modules are clad and can also be insulated on request in order to ensure winter operation.

The world’s largesT conTainerised, moBile mixing planTWhy get it: HigHly mobile but manages... 300 m³ of compacted concrete per Hour

April 2013

CONSTRUCTION

MIDDLE EAST 43

A speciAlist on the trAck

The two Liebherr wheel loaders L 506 Compact and L 576 have received the globally recognised red dot design award in the “product design” category.

The Compact Loader L 506 Compact combines high performance with maximum safety and extreme versatility in use. The overall height of the machine does not exceed 2,500mm, an

liebherr receives “red dot”

speciFicAtions:• impact force: 55 joules• percussion rate: 1,350 blows per minute• power to weight ratio: 24kg• power: WN 80 engine

Why get them?HigH safety spec solid build

Faymonville will showcase its constantly expanding its range of propelled vehicles at this month’s bauma exhibition.

the development – of a standardised modular platform of purely hydrostatically-driven spmt is led by three options: a drive system with the latest control electronics; intuitive and extremely user-friendly operating concept; and a unique communication and diagnostic system based on cAn-bus.

“With its innovative spmc project, Faymonville is pursuing the development and production of a new drive head unit as the basis of the future

self-propelled platform through simpler control combined with improved driving and service comfort,” says technical manager guy Fickers about the background of the project.

compared to the mechanically-steered self-propelled vehicles available on the market, the spmc drive concept at Faymonville is based on electronically-controlled hydrostatic drive with integrated control and monitoring.

this makes possible an optimal traction of 17 tonnes per axle line, with an increase in speed up to a maximum of 14 km/h. Also innovative is the communication system based on cAn-bus.

exceptionally low figure. The L 576 wheel loader of the new IIIB generation has a more compact layout, with all the principal maintenance points accessible from ground level. The stable construction means that it can also be maneuvered quickly and easily and thus has a positive effect on productivity.

The red dot design award is one of the most prestigious international design competitions. The winners are decided by a high-ranking jury of renowned experts, who demand the highest standards of creativity, innovation and product quality. The judgement criteria are constantly adapted to the latest developments.

Wacker Neuson has introduced a new gasoline hammer BH 55rw for track construction. The BH 55rw is equipped for work on the track with 1,350 blows per minute and 55 joules of single stroke impact energy.

There are special requirements in track construction, primarily in maintaining the railway system. This is because railroad ballast must always be re-treated here. The tamping requires a rather gentle force in the process, because the ballast may not be damaged in the process. However, a certain percussion rate is required so that the ballast is properly compacted. Wacker Neuson has accepted this challenge and designed a gasoline hammer specifically for track construction.

The specialist on the track is called BH 55rw. The “rw” ending stands for the English “railway.” The designation also refers to the 1,350 blows per minute with 55 joules of single stroke impact energy. “It is an ideal combination of percussion rate and force for the special requirements on the track,” says Dennis Vietze, product manager for demolition technology at Wacker Neuson. “Together with specialists from track construction, we precisely adapted the BH 55rw so that it provides ideal conditions for working on the track. Railroad ballast is optimally compacted, but the ballast itself is not damaged during the work.”

In order to ensure this combination, all components of the BH 55rw are ideally adjusted to one another. The

impact force of 55 joules that is gentle on the material is compensated for by the very high percussion rate of 1,350 blows per minute. The proven Wacker Neuson full-hood spring mounting, which provides for low hand-arm vibrations and optimally supports the operator during his work, together with the good power-to-weight ratio of 24 kg, also contribute to the work on the track functioning perfectly with the BH 55rw.

The economical and low-emission WN 80 gasoline engine, which drives the hammer, is a development of Wacker Neuson and is therefore perfectly suited for the unit and is extremely reliable. The BH 55rw is therefore the first choice in track construction.

FAymonville trAils neW trAiler tech At bAumA

Tel: +966 3 802 4938Fax: +966 3 826 [email protected]

April 2013

CONSTRUCTION

MIDDLE EAST44

New Products

Spain-based tower crane manufacturer Linden Comansa will display at the forthcoming Bauma trade show two of its newest products: a 16 LC 260 Flat-Top tower crane, from its LC1600 Series, and a LCL 165 luffing-jib crane. Both models where launched slightly over a year ago and have never been exhibited in a trade show until Bauma 2013.

The tallest of both cranes will be the 21 LC 260. It will be erected over a 6-meter-wide folding cross base, with jib length of 70 meters (the maximum

Why get them?Fast setup high Flexibility

Linden Comansa Continues proLifiC run

Why get them?Fast assembly minimises accessory utilisation

of this model) and a freestanding height of 61.6 meters, which will make this crane easy to be seen from everywhere in Bauma´s outdoor exhibition area. Its maximum load capacity is 12 tonnes, although this same model may come in other versions of 8 and 10 tonnes.

One of the great advantages says Linden, of this model, and from the entire LC 1600 Series, is the design without apex element, which speeds up all the assembly process and means important savings in accessory equipment. Furthermore, the 16 LC 260 includes the PowerLift system, launched by Linden Comansa in 2012, which allows the crane to move the load to a greater jib length with reduced speeds, improving the load chart up to 10%. The LCL 165 luffing-jib crane is the newest model from Linden Comansa’s LCL Series of luffers and comes with two versions of maximum load: 8 and 12 tonnes.

Munich will see the 8 tonne version, erected over a 4.5-meter-wide folding cross base, and with height under hook of 14.6m. This crane features all advantages from the LCL Series, including its modular design, which allows that most of the tower and jib sections to be interchangeable.

speCifiCations: 21 LC 260• Base: 6m folding cross• max jib length: 70m• height: 61.6m• max load capacity: 12t

a WorLd premier from senneBogen

Sennebogen will show off its new 673 telescopic crawler crane, a powerful 70t crane whose stable crawler tracks and continuously telescoping boom arm render it extremely flexible and reliable. The Sennebogen 673 R-HD performs impressively on the job with its highly robust design, compact dimensions and superior working and safety features.

For more than 20 years, Sennebogen telescopic cranes have embodied the optimum combination of flexibility, cost-effectiveness and quality. The new Sennebogen 673 R-HD rounds out the broad product spectrum as the first telescopic crawler crane of the new E-series.

The 673 R-HD was designed for high performance. Thanks to its telescopic boom, the crane can handle any demanding job on the construction site. In comparison to other crane designs, the Sennebogen telescopic crawler crane offers a host of advantages. Less than 3m wide on the highway, the machine can be transported quickly and easily. The train can be comfortably hauled on a long-distance flatbed truck.

The machine is ready to use as soon as it arrives at the construction site. With the telescoping crawler tracks, time-consuming leveling and supports, as they are necessary with AT-

cranes are a thing of the past. The machine can easily work on a slope up to 4 degrees. The 673 R-HD easily gets the job done on the construction site with its 36 m long boom arm.

Two fly boom versions of 8m and 15m extend the maximum reach to 51 meters. The integrated heavy-duty jaw functions at an offset angle up to 40°. The machine can reliably carry loads up to 70 tons.

The four-stage telescoping boom extends smoothly under hydraulic actuation; all the functions are fully available even under loads which maximises flexibility – a complicated single cylinder system can be omitted.

during bC india 2013 that back in february 2013 in mumbai, india, representatives from two indian companies signed contracts for the delivery of a total of 14 flat-top 85 eC-B 5i cranes. the cranes are manufactured by Liebherr CmCtec india pvt. Ltd at the pune site in india. present at the contract signing were the managing directors of both companies sai infraa equipments pvt Ltd. and gopalan enterprises as well as Jan Liebherr, associate

of the Liebherr group of Companies, dominique tasch, managing director of the german production plant Liebherr-Werk Biberach gmbh, david griffin, regional sales manager at Liebherr-Werk Biberach gmbh, and his indian sales team at Liebherr india pvt Ltd.meanwhile indian rental fleet organisation sai infraa equipments ordered a dozen of the brand-new 85 eC-B 5i flat-top cranes with freestanding hook heights of 38m.

LieBherr toWers sCore at BC india 2013

speCifiCations:• Load capacity: 5t• Lifting cap at jib head: 1.3t• max radius: 50m• hook heights (with climbing system): 278m


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Construction Machinery ME 240x300 Dubai_ENG_Mar13.indd 1 3/25/13 9:51 AM

April 2013

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Top 10 Construction

estimates mistakes

Estimates

A contrActor mAy wAnt to Assess the ActuAl cost of construction by considering the

ActuAl construction procedures to be used And the AssociAted costs if the project is

deemed to be different from typicAl designs. equipment needed to perform vArious tAsks

mAy be used As pArAmeters for the cost estimAtes.

.

Controlling your Costs

laCk of transparenCythe estimate should provide a top-level view of the project as well as each line item’s most granular details and their

associated costs. this way, you eliminate the black-box approach, and anyone can easily understand the process for determining cost, regardless

of his or her level of experience.

Nobody’s perfect and Construction Business Owner has listed its top ten pitfalls in estimating the cost of operations.

last-minute Changes late changes result in simple mistakes such as forgotten line items and formula errors from cutting and pasting. such errors can quickly turn a profitable project into a loss. accurate cost-estimation systems with built-in formulas and assembly libraries, however, can eliminate most, if not all, of these errors.

foCusing onstrengths alone,ignoring weaknesses you likely have depths ofexpertise in certain areasand more moderate proficiencyin others. for example, you may know everything about roofing, and your estimate for that part of a project would be highly detailed.

underestimating labor Costslabor is one of the most difficult costs to estimate because it’s not as simple as applying an hourly rate per employee. examples of other factors to consider are experience and whether subcontractors will be needed.

laCk of marginCalCulation algorithmif you base profitability solely on a flat sales price, such as a 10-percent profit across every aspect of the project, your final cost will differ from your initial bid. instead, determine how much each of the critical factors, such as labour, materials and supplies, should contribute to profit and estimate accordingly.

April 2013

CONSTRUCTION

MIDDLE EAST 47

Top 10 Construction

estimates mistakes

Estimates

A contrActor mAy wAnt to Assess the ActuAl cost of construction by considering the

ActuAl construction procedures to be used And the AssociAted costs if the project is

deemed to be different from typicAl designs. equipment needed to perform vArious tAsks

mAy be used As pArAmeters for the cost estimAtes.

.

Controlling your Costs

laCk of transparenCythe estimate should provide a top-level view of the project as well as each line item’s most granular details and their

associated costs. this way, you eliminate the black-box approach, and anyone can easily understand the process for determining cost, regardless

of his or her level of experience.

Nobody’s perfect and Construction Business Owner has listed its top ten pitfalls in estimating the cost of operations.

last-minute Changes late changes result in simple mistakes such as forgotten line items and formula errors from cutting and pasting. such errors can quickly turn a profitable project into a loss. accurate cost-estimation systems with built-in formulas and assembly libraries, however, can eliminate most, if not all, of these errors.

foCusing onstrengths alone,ignoring weaknesses you likely have depths ofexpertise in certain areasand more moderate proficiencyin others. for example, you may know everything about roofing, and your estimate for that part of a project would be highly detailed.

underestimating labor Costslabor is one of the most difficult costs to estimate because it’s not as simple as applying an hourly rate per employee. examples of other factors to consider are experience and whether subcontractors will be needed.

laCk of marginCalCulation algorithmif you base profitability solely on a flat sales price, such as a 10-percent profit across every aspect of the project, your final cost will differ from your initial bid. instead, determine how much each of the critical factors, such as labour, materials and supplies, should contribute to profit and estimate accordingly.

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April 2013

CONSTRUCTION

MIDDLE EAST 49

l

CONTINGENCY PLANNING IN MOST CONSTRUCTION BUDGETS, THERE IS AN ALLOWANCE

FOR CONTINGENCIES OR UNEXPECTED COSTS OCCURING DURING

CONSTRUCTION. THIS CONTINGENCY AMOUNT MAY BE INCLUDED

WITHIN EACH COST ITEM OR BE INCLUDED IN A SINGLE CATEGORY OF

CONSTRUCTION CONTINGENCY. THE AMOUNT OF CONTINGENCY IS

BASED ON HISTORICAL EXPERIENCE AND THE EXPECTED DIFFICULTY

OF A PARTICULAR CONSTRUCTION PROJECT..

LIMITED PROJECT VIEWSDuring the cost-estimation process,

you should be able to see your spread-sheet data automatically regrouped and filtered to display information according to activity, phase, crew,

classification, or any other aspect of the project.

Estimates

PURSUING EVERY PROJECT There is a great temptationto pursue every opportunity to keep your crews busy and expand your expertise into new areas. However, you should know up front which projects are going to require more work and, therefore, deliver less profit.

ALLOCATINGRESOURCES INCORRECTLYInvest the most time in the ar-

eas of the project that will con-tribute to the greatest amount

of cost in the project.

LACK OF SUCCESSIVE RISK ESTIMATIONTo determine risks and minimise uncertainty, analyze what has gone awry on previous projects. For example, it may not be the materials or the crew that drove up the cost. It could just as easily be the fact that the project didn’t factor in that the city had only one lane of traffic, making construction challenging. If you don’t consider and estimate all the risks of a project, your projected costs won’t be accurate.

NOT TAKING A TOP-DOWN APPROACHWhile it may be easier to start the cost-estimation process by plugging numbers and line items into a spreadsheet, this bottom-up approach lacks a strategic view and is time consuming. It’s best to start by looking at the entire project. Then, break it down to see how costs are distributed. This way, you can make adjustments and see how each adjustment affects overall profitability, as opposed to manipulating the costs for different line items until you arrive at a healthy profit margin


47-49 Top 10_v2.indd 49 3/30/13 11:16 AM

April 2013

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Show Preview

BaumaWhat do you need to know?

FrequencyEvery three years

VenueNew Munich Trade Fair Centre, Messegelaende, 81823 Munich, Germany

Getting thereDirect flights leave on daily basis from Dubai, Cairo. Other locations require transfers.

Dates15-21 April 2013

Opening hoursMon – Fri 9.30am - 6.30pmSat 8.30am - 6.30pmSun 9.30am - 4.30pm

-

The shoe leather-eating behemoth that is Bauma returns this month, swallowing an entire industry and spitting out those ill-prepared to take on the monster event. Brave

adventurers from the Middle East will be boarding planes, trains and hopefully unlike the last volcano-hit event, not automobiles, to get there.

Indeed for an event which is typically about headline-grabbing launches from the cutting edge of engine design, it manages to attract a strong attendance from the region despite a fraction of the machines being ready for the region.

In fact by the time the next event returns in 2016, you might be better off checking Resale Weekly’s used lists for equipment that can use Middle East fuel, rather than taking a trip to Munich.

Make no mistake an engine tiering cliff is a strong possibility. The region has been relied upon to be a release valve for older equipment for decades and this will have an inevitable effect on the prices of equipment in the used and rental sectors.

However engine manufacturers such as Cummins, a popular choice among Chinese manufacturing, are continuing to produce engines suitable for the

region. This will ensure for the time being that we can expect drive systems that can cope with the high sulphur content for the foreseeable future.

Of course more manufacturers will look to follow the example of Case and JCB in providing heavy equipment that has been modified and de-tiered to for Middle East conditions. And as one representative of those OEMs joke with CMME last month there are added perks hidden in a Tier 2 chassis: “Without the SRC kit in there, you get a whole bunch of extra storage space for your buck.”

An exciting development for this year’s event

Show Preview

April 2013

CONSTRUCTION


ConstRUCtIon

MIDDLe eAst 51

Show Preview

It’s the bIg one

It doesn’t get any bigger than Bauma

and CMME puts on a comfy pair of shoes

to see what’s on the show floor

-

is the presence of next generation solutions such as hybrid engines, notes Professor Günter Kunze, head of the Department of Construction Machines and Conveying Technology at the Technical University of Dresden.

“First it must be said that it has taken even the pioneer in hybrid design – Toyota – more than ten years to gain acceptance and market penetration in the automotive area,” says Professor Kunze. “In the case of mobile working machinery, the diversity, low production quantities and high lifetimes lead us to assume that developments will be slower

still. Basically a hybrid drive means the availability of at least two sources of power. Many different combinations of these sources are thinkable.

“For example, it could be a combustion engine and an electrically operated machine in combination with a battery to store electricity. Or two independent batteries, for example in ground conveyors. Machines of both these types have already been designed and marketed. Also possible are solutions that recover energy in mechanical or hydraulic form and then store it. Just which solution is best for which machine, is

dependent critically on the requirements profile. In hybrid technology in particular the construction machinery sector is working on many innovations, and these will be on show for the first time at the upcoming bauma trade show.”

Caterpillar will be unveiling its new Cat hybrid excavator 336E H to the trade audience for the first time in Munich. Instead of losing the kinetic energy when braking the upper structure, it is captured in accumulators and re-used during swing acceleration. According to this American manufacturer, it has mastered the technically very difficult challenge of

April 2013

ConstRUCtIon

MIDDLe eAst 51

April 2013

ConstRUCtIon

MIDDLe eAst 51

Show Preview

It’s the bIg one

It doesn’t get any bigger than Bauma

and CMME puts on a comfy pair of shoes

to see what’s on the show floor

-

is the presence of next generation solutions such as hybrid engines, notes Professor Günter Kunze, head of the Department of Construction Machines and Conveying Technology at the Technical University of Dresden.

“First it must be said that it has taken even the pioneer in hybrid design – Toyota – more than ten years to gain acceptance and market penetration in the automotive area,” says Professor Kunze. “In the case of mobile working machinery, the diversity, low production quantities and high lifetimes lead us to assume that developments will be slower

still. Basically a hybrid drive means the availability of at least two sources of power. Many different combinations of these sources are thinkable.

“For example, it could be a combustion engine and an electrically operated machine in combination with a battery to store electricity. Or two independent batteries, for example in ground conveyors. Machines of both these types have already been designed and marketed. Also possible are solutions that recover energy in mechanical or hydraulic form and then store it. Just which solution is best for which machine, is

dependent critically on the requirements profile. In hybrid technology in particular the construction machinery sector is working on many innovations, and these will be on show for the first time at the upcoming bauma trade show.”

Caterpillar will be unveiling its new Cat hybrid excavator 336E H to the trade audience for the first time in Munich. Instead of losing the kinetic energy when braking the upper structure, it is captured in accumulators and re-used during swing acceleration. According to this American manufacturer, it has mastered the technically very difficult challenge of

April 2013

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re-using hydraulic energy. The reward for the efforts of the developers, says the company, is a reduction in fuel consumption of approximately 25%. Another way of saving on operating costs is offered by the Cat wheel loader 966K XE, also on show in the Bavarian capital in April 2013. This has been fitted with a new, stepless powertrain system designed to minimize fuel consumption.

The German manufacturer Liebherr will be presenting a hybrid solution for heavy duty applications at bauma – the HS 8300 HD Duty Cycle Crawler Crane. Weighing in at over 350t, the world first is fitted with a powerful and also environmentally friendly hybrid drive on a hydraulic basis. According to the manufacturer, the storage and subsequent reactivation of excess energy increases handling rates and also significantly reduces fuel consumption. In addition, the tried and trusted technology of hydraulic energy storage is low on maintenance as well as being highly reliable. This mighty machine has hydraulic free-fall winches offering approximately 50t of line pull.

Professor Kunze also says that we can expect to see the further evolution of the way power is utilised by construction machinery on site.

“Traditionally combustion engines have been installed that can deliver the performance required. In other words the manufacturers work out the peak demand and design and build the engine to match,” he explains. “However there are many ideas and solutions concerned with the ‘average requirements’ of the construction machine as a parameter in the design of the combustion engine. To cover peak loads, suitable storage is then used,

which is mechanically, hydraulically or electrically operated. This is known as downsizing the installed engine performance.”

JCB is presenting its Ecomax engines for the first time at Bauma. These engines meet the rigorous emissions standards Stage IIB and Tier 4 Interim, without the need for diesel particle filters or emissions after-treatment. Instead JCB is using a new engine technology (patent-pending) which enables particularly clean and efficient combustion. As well as the environmental benefit from lower emissions, this new development gives customers improved torque across the whole range of speeds, which according to the manufacturer significantly reduces fuel consumption. JCB is fitting the Ecomax engines to excavators, loaders (backhoe/wheel/telescope/telescopic-wheel/compact), telescopic handlers and rough terrain forklifts.

JCB will also launch two new wheeled loaders at Bauma 2013 – the 427 and 437, offering customers increased efficiency, lower emissions and improved operator comfort. Replacing the 426 and 436, the machines have now gone into full production. They are powered by the Cummins QSB 6.7l engine and feature a progressive clutch cut-off feature plus optional five-speed transmission, and automatic differential locking axles.

Meanwhile German road specialist HAMM, part of the Wirtgen Group, is expanding its range of articulated tandem rollers. The new models – HD+ 70i and HD+ 80i feature two separately controlled ventilators cool the charge air, hydraulic oil and engine cooling fluid. In doing so the load-dependent control of the ventilator for engine cooling saves fuel

This year, indoor and outdoor exhibition space at the 30th International Trade Fair for construction machinery and equipment increased to 570,000m2, 15,000m2 more than in 2010 when the last event was held.

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“Avoiding unneceSSAry noiSe iS An imPortAnt fActor here. for exAmPle in Pile-driving oPerAtionS.”

and reduces noise emissions. Beyond the need for greater efficiency, manufacturers are concentrating greater operator comfort and improved ergonomics. the response of Atlas copco, for example, has been to bring out what the company is describing as the lightest vibration-reduced pick hammer on the market, weighing in at just 9.5 kg. the hammer mechanism in this tool floats in the housing, thereby significantly reducing the vibrations transmitted to the operator´s hands and arms. the model also has an efficient noise-reduction system.

Kaiser Ags new Walking mobile excavator also focuses on the human interface. this type of machine is designed for use in inaccessible terrain, a situation in which the driver often spends more time in the cab than at other construction sites. So, Kaiser has tuned the design of the cabs to better suit the needs of the driver. As well as an ergonomic arrangement of the extensive functions, there are also new joysticks for simple operation of the many hydraulic adjustment facilities and the various attachments.

in today’s construction industry, it’s not just about making the working conditions as pleasant as possible for the machine operators and drivers. it´s also about protecting the environment around the building site from pressure of all kinds. Avoiding unnecessary noise is an important factor here. for example in pile-driving operations. manufacturer ABi is presenting a new adjustable vibrator for its telescopic leaders. this vibrator is fitted with a combi clamp assembly for double-Z and u-profiles and tubular piles. Because of the precise clamping with two individual clamps, the piles are protected and the noise from the “f lapping” of the profiles is reduced.

vegetation, soil and ground water all benefit from a new semi-trenchless method for installing pipelines

from herrenknecht Ag. A tunnel boring machine loosens the soil which is then directly conveyed above ground using a milling unit. At the same time, the pipeline is installed underground. earthwork is reduced to a minimum and no groundwater lowering along the route is necessary. in comparison to conventional, open-trench methods, the trench is considerably narrower. When crossing agricultural land this means harvest losses and compensation payments are reduced. this pipe-installation drive system has been nominated for the bauma innovations Award 2013 in the machine category.

As well as technological innovations on the construction machines themselves, i.e. the hardware, as it were, many manufacturers have also much to offer in terms of the extras. A key word here is fleet management. for example, the wheel loader manufacturer Kramer Allrad and the sales and service company Zeppelin are offering satellite-supported location systems that deliver real-time data on the construction machines. As well as location, the data can also include operating times, engine condition and service dates, all of which can be called up online. the data are then available to the customer on his computer or smartphone. the aim with telematics solutions is to maximize machine capacity, to optimize fleet management, particularly on large-scale building sites, to provide verifiable figures for calculations of efficiency and cost, and to protect against theft.

one stand that will be worth a visit will be Sennebogen’s. the german manufacurer celebrated its 60th anniversary in 2012, and this will be its last to celebrate. it’s got some good machines too, with the 673 r-hd 36m telescopic crawler crane worthy of a look by middle east buyers.

two new innovations from italy’s mB, the undisputed world leader for the production and sale of equipment for the earth moving and demolition sectors. the year 2013 has begun with two very interesting innovations in the form of two small treasures that complete the wide range of mB products: the new model mB-S10 Screening Bucket and the brand new mB-c50 crusher Bucket.

One of the key features of the bauma trade fair since 2001, when the concept was first launched, is the selection of a Partner Country. Where India was the last Partner Country, this year it is Indonesia.

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Small, compact, light, the two MB buckets are suitable for midi diggers from 4 to 8 tonnes and are ideal for use on small sites. The new MB-S10 Screening Bucket weighs 445 g and has a capacity of 0.6 m3, offering those advantages that only MB products are capable of providing: high quality, reduced management costs and a saving on time, it claims. Developed using the same materials and the same technology as the already well-known MB Screening Buckets, the MB-S10 is easy to transport, manoeuvrable and highly competitive and can also be used for gardening work.

The latest addition, the MB-C50 is the smallest in the Crusher Bucket range. Small, light (to make installation and use easier), the new MB-C50 cuts down on processing costs and times and eliminates needless transportation costs. One-of-a-kind and certified, like the entire MB range, it is the only holder of the double jaw movement patent, to ensure the highest productivity on all sites. The new Crusher Bucket weighs 750kg and has a loading capacity of 0.25m3.

Most visitors will be focused on the headline grabbing launches, and while some are still under wraps there have been enough announcements leading up to the event to warrant a touch of excitement.

Liebherr will present its new modular design 150 EC-B flat-top crane, designed to offer customers a wide range of machine configuration to give them the maximum efficiency an cost control on a variety of jobs.

The company will also show the 357HC-L luffing jib crane, the successor to the old tried and trusted 355 HC-L. The new crane’s jib reaches its out-of-operation position at over 70 degrees and Liebherr says it can

rotate freely in the tightest spaces, a crucial factor in high crane-density working environments.

Doosan will exhibit its 490 and 530 excavators. Bobcat willl show its 500 platform skid steers (five of them) and a track loader model. Doosan Portaable Power will show two new generators and two new ccompressors. LiuGong is will showcase three new excavators including the 45 metric ton 945 E.

Caterpillar will have 70 new machines on its stand, including the new 988K large wheel loader which heads a complete redux of the H series. Grove has announced that it will launch a new 45 tonne Rough Terrain crane at Bauma in April next year.

The new crane, the RT550E, was shown to customers from France and Italy at Manitowoc group’s Niella Tanaro production facility in Italy, together with the first 400t GMK6400 All Terrain crane in Italy.

See you on the show floor!


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Ports and logistics

“The new Jebel Ali ConTAiner TerminAl 2 is due To be running Q2 AfTer The QuAy wAll wAs exTended by 400 To 3,000m. ”

A bulldozer working on the Khalifa Port project, a port that will jostle for container traffic with Jebel Ali Port and the growing number of hubs being constructed and expanded in the Gulf. E

xecutives at Caterpillar lined up last month to inaugurate the opening of its giant 50,000sqm distribution centre in Jebel Ali. its footprint doesn’t tell the full story either as the 11ha site will house 96,000 items to keep the region’s

fleet of Peoria-designed equipment in uptime for as long as possible. its location is highly revealing too.

To ensure fast and efficient delivery it sits on the corridor, Jebel Ali’s owners dP world is creating to link up its airport and sea port. reacting to the opening of Khalifa Port in Abu dhabi and growing competition in the gulf, dP world has poured hundreds of millions into expanding the port. The new Jebel Ali Container Terminal 2 is due to be up and running this quarter after the quay wall was extended by 400m to 3000m and will enable the port to house six 15,000 Teu ships at any one time. by the time Terminal 3 opens in 2014, the port will have an annual capacity of 19 million Teu.

The net result of all the net space – and the growing number of new facilities - means that there is now major investment into equipment in the area. it will be small surprise then that Jebel Ali and the other satellite ports are seen as major targets for manufacturers of cranes and ports and logistics equipment.

Typically mobile harbour cranes are deployed on sites such as Jebel Ali, but for ports that operator in small tidal environments as seen on the gulf, liebherr Container Cranes and spanish container terminal management company, grup TCb, have designed a new ship-to-shore (sTs) crane concept.

The pair installed two double boom ship-to-shore (sTs) container cranes at the TCeege terminal in Aliaga, Turkey. They said they designed the equipment to improve service on finger piers. grup TCb operates the TCeege container terminal at nemrut bay/Aliaga, whose 360-metre jetty pier can berth ships on both sides.

Typically mobile harbour cranes (mhC) are used on such a pier, but grup wanted a crane that would be able to transport over 100 containers on or off a ship per hour.

following the acquisitions of gottwald and demag, Terex Cranes stands out as the only manufacturer to provide a complete range of cranes and port equipment.

All stAcks up Heavy investment in the region’s ports and

logistics hubs is spurring on demand for equipment that is up to the task of ensuring all are hands on deck

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At last month’s World Ports & Trade Summit in Abu Dhabi, Cavotec demonstrated its automated mooring technology, MoorMaster.

“Automated mooring is an evolution in port technology: its safety and operational benefits are considerable. Automated systems, such as MoorMaster, enable port operators to perform tasks faster, more reliably and more securely,” said Juergen Strommer, Managing Director at Cavotec Middle East.

“MoorMaster reduces the time it takes to moor a ship from up to 90 minutes to about 30 seconds in what becomes a one-man operation,” he added.

MoorMaster is a vacuum-based automated mooring technology that eliminates the need for conventional mooring lines. Remote controlled vacuum pads recessed in, or mounted on, the

quayside or pontoons, moor and release ships in seconds.

It offers increased safety for shore and ship personnel, improved operational efficiency, and in some cases, reduced infrastructure investment. It also reduces emissions from ships and tugs.

The system is used at passenger ferry, bulk, Ro-Ro, container handling and lock applications all over the world. Cavotec is also seeing interest in the technology for offshore applications.

Cavotec has continuously maintained its position in the maritime industry as a technological pioneer and innovator, and has played a vital role as a catalyst in the development of automated mooring systems at ports across the globe, a trend that the Middle East region is keen to follow suit.

The master of the moors

“We’re a lifting and materials handling solutions company today,” Terex CEO Ronald DeFeo said in its latest earnings call. “We are less about construction equipment and more about a diversified specialty equipment manufacturer across a range of end markets, and we’ll cover some of that in some depth.”

At ProMat 2013, it displayed its KBK workstation cranes, which increase load capacity and spanning capability; the complete line of electric chain hoists including an operational step-less variable speed chain hoist designed for the perfect combination of precise positioning and high speed; and its new top-mounted end trucks which it says “allow for simple local cost effective production of cranes in the 3-10t range”.

Konecranes says it has created the world’s first hybrid reach stacker with its 45 tonne SMV 4531 TB5 HLT.

The Finnish company says the reach stacker’s diesel engine drives a generator, allowing it to operate at a constant speed and power output, the drive function is provided by direct electric traction motors, while dedicated electric motors power the hydraulic pumps for the lift. The company says that all of the electric motors are equipped with

a regenerative mode, with energy generated from braking and load lowered stored for reuse.

Konecranes claims that the design makes the crane at least 30% more efficient in terms of fuel consumption and emissions when compared to equivalent diesel powered machines. The Finnish manufacturer also claims that it also delivers improved performance, acceleration and response.

Forklift specialist Hyster says that its R-EX 2 Electric Reach Forklift Series can make the difference where narrow aisles and other design limitations restrict warehouse movement.

Real manoeuvrability advances result from right angle turn width from just 1630mm boosting business efficiencies and profit by speeding work flow and reducing operator time.

Hyster also achieves better stability in its 1250-1800kg range while a parallel link structure and suspension lock system give operator’s scope for faster movement with safety in confined spaces.

Maximum lifting height of 6 metres is provided yet the lower truck floor (35mm below previous models) helps make Hyster R-EX 2 series fit into low clearance areas.

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At last month’s World Ports & Trade Summit in Abu Dhabi, Cavotec demonstrated its automated mooring technology, MoorMaster.

“Automated mooring is an evolution in port technology: its safety and operational benefits are considerable. Automated systems, such as MoorMaster, enable port operators to perform tasks faster, more reliably and more securely,” said Juergen Strommer, Managing Director at Cavotec Middle East.

“MoorMaster reduces the time it takes to moor a ship from up to 90 minutes to about 30 seconds in what becomes a one-man operation,” he added.

MoorMaster is a vacuum-based automated mooring technology that eliminates the need for conventional mooring lines. Remote controlled vacuum pads recessed in, or mounted on, the

quayside or pontoons, moor and release ships in seconds.

It offers increased safety for shore and ship personnel, improved operational efficiency, and in some cases, reduced infrastructure investment. It also reduces emissions from ships and tugs.

The system is used at passenger ferry, bulk, Ro-Ro, container handling and lock applications all over the world. Cavotec is also seeing interest in the technology for offshore applications.

Cavotec has continuously maintained its position in the maritime industry as a technological pioneer and innovator, and has played a vital role as a catalyst in the development of automated mooring systems at ports across the globe, a trend that the Middle East region is keen to follow suit.

The master of the moors

“We’re a lifting and materials handling solutions company today,” Terex CEO Ronald DeFeo said in its latest earnings call. “We are less about construction equipment and more about a diversified specialty equipment manufacturer across a range of end markets, and we’ll cover some of that in some depth.”

At ProMat 2013, it displayed its KBK workstation cranes, which increase load capacity and spanning capability; the complete line of electric chain hoists including an operational step-less variable speed chain hoist designed for the perfect combination of precise positioning and high speed; and its new top-mounted end trucks which it says “allow for simple local cost effective production of cranes in the 3-10t range”.

Konecranes says it has created the world’s first hybrid reach stacker with its 45 tonne SMV 4531 TB5 HLT.

The Finnish company says the reach stacker’s diesel engine drives a generator, allowing it to operate at a constant speed and power output, the drive function is provided by direct electric traction motors, while dedicated electric motors power the hydraulic pumps for the lift. The company says that all of the electric motors are equipped with

a regenerative mode, with energy generated from braking and load lowered stored for reuse.

Konecranes claims that the design makes the crane at least 30% more efficient in terms of fuel consumption and emissions when compared to equivalent diesel powered machines. The Finnish manufacturer also claims that it also delivers improved performance, acceleration and response.

Forklift specialist Hyster says that its R-EX 2 Electric Reach Forklift Series can make the difference where narrow aisles and other design limitations restrict warehouse movement.

Real manoeuvrability advances result from right angle turn width from just 1630mm boosting business efficiencies and profit by speeding work flow and reducing operator time.

Hyster also achieves better stability in its 1250-1800kg range while a parallel link structure and suspension lock system give operator’s scope for faster movement with safety in confined spaces.

Maximum lifting height of 6 metres is provided yet the lower truck floor (35mm below previous models) helps make Hyster R-EX 2 series fit into low clearance areas.

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Morocco ManoeuvringTurkish contractor Tefkan’s work on the 187km pipeline in Morocco is on course for completion at the end of 2013. Chloe Doyle writes

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Morocco ManoeuvringTurkish contractor Tefkan’s work on the 187km pipeline in Morocco is on course for completion at the end of 2013. Chloe Doyle writes

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Event box subheadEvent box info

Date22-25 April 2012

Show Times5-10pm daily

LocationJeddah Centre for Forums & Events, Kingdom of Saudi Arabia

Co-located withSaudi Building & Interiors Exhibition

Organised byCPI

Websitewww.constructionmachineryshow.com

L’Office Chérifien des Phosphates (OCP), one of the world’s leading exporters of phosphates, phosphoric acid and phosphate fertilizers, began constructing a phosphate pipeline in 2010, designed to deliver several

grades of phosphate slurry to Jorf Lasfar’s terminal – a deep water commercial port located on the Atlantic coast of Morocco.

The project, near Khouribga 200km North West of Marrakech, consists of a 187km 36” transportation pipeline, plus 37km of 18” and 20” feeder lines, running to Jorf Lasfar’s terminal as well as Doui Pump Station, MEA Head Station, and Halasaa Pump Station, representing an investment of US$433 million.

Volvo rotating pipelayers are being used to perform the tie-ins (fusing two sections of pipe together), which are completed every 500 metres, as well as lowering the entire pipeline into the trench. The pipelayers’ long booms make them the perfect candidate to accurately align the pieces so that they can be bolted together.

The completion of this project will reduce OCP’s transportation costs considerably from the mine in Khouribga to the port off Morocco’s Atlantic coast. It will also reduce energy costs and the environmental impact associated with previous transportation handled by the region’s railway line.

The feeder pipelines from each wash plant pump station will deliver sequential batches of slurry to segregated tanks at MEA’s Head Station. From there, successive phosphate loads will be pumped through the main pipeline into storage tanks at the port’s terminal. One slurry grade will be supplied to local acid plants but all of the grades will be supplied for export purposes. The facilities are currently designed to handle a total of 38 Mt/y with the possibility to increase it to 44 Mt/y in the future.

The pipeline project was contracted to Turkish company, Tekfen Construction and Installation Co. Tekfen’s wide span of activities range from heavy civil works, refineries and petrochemical plants, satellite towns, major industrial processing plants, pipelines, marine structures, power plants and electrical, communication works.

For this project, the company assembled a team of 2,900 people comprising both experienced, permanent staff from Turkey and local workers. All employees have received onsite training from Tekfen or from Volvo Construction Equipment’s (Volvo CE) professional trainers. The company supplied its innovative pipelayers and crawler excavators to complete the job and operators using the lifting equipment on site were also certified by a third party to keep the site running safely.

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On site Tekfen is using Volvo PL4608 pipe layers and Volvo EC210B excavators. “We’ve been very pleased with the condition and performance of machines supplied by Volvo Construction Equipment Morocco,” says Zihni Akyol, Machinery & Equipment Manager for Tekfen Construction. “This is helping us to keep the job site up and running and not lose any valuable working days. As an ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certified company; we are dedicated to higher quality standards, aiming for excellence through continual improvements and a strict belief in teamwork.”

“Volvo Construction Equipment Morocco responds quickly to every call or request, which underlines the organisation’s customer focus”, continues Zihni. “Volvo’s CareTrack telematics system is another fantastic feature because it enables the machine’s performance to be monitored continuously so any service or maintenance interventions can be planned in advance, minimising site disruption by reducing costly machine down time.”

The first job of the Volvo EC210B excavators was to hold and supply hydraulic flow to the pipe facing machines in preparation for welding. As phosphates are both corrosive and abrasive in nature, Tekfen have sub-contracted UPS-APTec, a joint venture between United Pipeline Systems® and Allied Pipeline Technologies, two specialized pipeline contractors, to install a high density polyethylene (HDPE) pipe liner system to avoid what could otherwise result in costly damage to the steel pipe, shortening its life span. A technology being used since 1985, over 14,400 km (9,000 miles) of pipeline across six continents has since been lined and protected with this pipe lining system. The liner installation process begins once the length of pipe is buried in the ground.

Sections of the high-density, polyethylene (HDPE) pipe are joined by heat fusion to create a continuous length of liner. A blow down pig with a gauge plate attached to a steel cable is then sent through the pipe to ensure there are no obstructions inside the line. Then the cable is carried through a roller reduction box to a pole head on the fused liner section. As the external dimensions of the liner are greater than the internal dimensions of the pipe, the liner is first pulled through a series of hydraulic rollers in the reduction box, positioned in front of the steel pipe. This system temporarily reduces the liner pipe’s diameter as it is pulled back though the host pipe and, once installed, the memory of the polyethylene material allows it to expand to fit tightly against the wall of the host pipe.

On this type of pipeline the strings are bolted together rather than welded. Usually, two larger excavators and a trailer working together are used to do this. On this occasion, Volvo excavators are used to raise the pipe from the ground into the trench and another one is used to handle and hold the special tool, which is needed to clamp and stretch the HDPE pipe to an exact length where it’s cut and the liner is effectively sucked back inside the host pipe. Finally, a polyethylene stub end is fused to the edge of each section and the flanges can then be bolted together. On completion an air test can be conducted to confirm a leak free, sealed system.

Volvo CE’s intelligent pipelayers have been well received by the operators on the site. “The Volvo PL4608 pipe layers are the professors of tie-ins,” says Turkish operator, Mehmet Koca Kaya. “It’s so easy. You cut off one piece of the pipe during the tie-in and then you can take the remaining piece of pipe out of the trench and load it onto a trailer for disposal.

During the winter period one tie-in crew can finalize one to two tie-ins a day compared with up to four during the summer period. The main reason for this winter slowdown is the longer time needed to pre-heat the pipe. It’s not only the 360 degree swing that the operators appreciate. The fully enclosed, comfortable and air conditioned cab is another benefit of the Volvo pipelayer concept.

“The cab can be hydraulically elevated, which significantly increases visibility into the trench and to the site in general,” says Kaya. “Together with the side and rear view cameras you can see everything. And the load management system is a great help too during the tie-ins where you have to push or pull the pipes.”

The 360 degree swing is the reason why UPS

APTec is renting a large number of excavators in different sizes from Volvo Construction Equipment Morocco.

The excavators are not used as digging machines, but are equipped with a vacuum shoe to handle pipe sections, hold the HDPE pipe for the alignment and connection process as well as for pulling the HDPE pipe strings once they are

welded together.

OCP started extracting, treating and transporting phosphates back in 1921 when it opened its first mine in the Khouribga region, home of the world’s richest phosphate deposits. Today, it employs 20,000 people, mainly around four mining sites and two chemical complexes in Morocco, but also across other international locations.

A winter tie-in


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Earlier this year, a report released by Saudi

Arabia’s National Commercial Bank predicted

that the Kingdom’s construction sector

will witness a sustained period of ‘robust

growth’ in 2013. Project capital expenditures are

projected to reach $71.9 billion this year, the bank’s

Commercial Contracts Index for the fourth quarter

of 2012 showed.

“The year 2012 provided the Saudi economy

with a continued solid, sustainable outlook of the

construction sector. The sheer volume of awarded

contracts indicate that 2013 will extend the familiar

trend of significant, ongoing construction projects

in their execution phase, of which the majority that

were awarded in 2012 have already been initiated.

The government’s projected expenditures for 2013

reveal that heavy capital spending will remain as

status quo,” the report explained.

With construction set to be one of the major

drivers of Saudi Arabia’s economic growth over

the coming year, the prospects for the Kingdom’s

construction industry look bright.

According to local media estimates, in 2013 alone,

the government intends to spend heavily in the

education, health, municipality, transportation and

water sectors, with plans for the construction of 539

new schools, 19 new hospitals and the development

of 3,700km of new roads across the Kingdom.

Furthermore, a report by Zawya has indicated

that Saudi Arabia will see the completion

of $613 billion worth of construction

projects over the next five years.

The demand drivers are set

to be improvement of the

transportation systems and

infrastructure projects,

said Mick Dalton, current

liaison at IFMA Foundation

Liaison (Middle East). In

turn, this will increase the

investment opportunities in

the market, as well as increasing the connectivity

and attractiveness of the market to investors, he

added in the report.

“Though Saudi contractors are some of the largest

in the region, given the size and range of projects

planned over the next few years, there still remains a

significant opportunity for international contractors

to enter the market,” he said.

Craig Plumb, from Jones Lang LaSalle, added that

the Kingdom’s ambitious growth plans, such its

economic cities, are part of its plans to diversify its

economy from oil.

However, concerns have been raised by Saudi

Arabian developers, who have said that this

increased emphasis on commercial construction

could have long term consequences on the supply

and demand in the market.

Mohammad Al Saja, chairman of Mizat

Development, a joint stock company established

by a group of Saudi businessmen and engineers,

says that when it comes to the office supply in

the Kingdom, specifically in major cities such as

Riyadh, there is an oversupply and not enough

demand to sustain the market.

“When you go to the office supply side, there

is too much supply and projects currently under

development, like the King Abdullah Financial

District, and I’m talking about Riyadh specifically

here, there is more supply than demand,” he

explained to Big Project ME during a telephone

interview.

In his opinion, Al Saja said that the crucial

construction sector will be the residential sector,

given the well documented housing crisis that is

affecting the country. The demand for housing

exists, the issue will be meeting it, he pointed out.

“Saudi Arabia has a young population, with 70%

of the population below 30 years of age. There is a

challenge with the financial stability of the target

market, the end users. It’s becoming a political

issue, with the government giving more and more

attention to that.”

“As a result, the housing commission was

changed to the Housing Ministry. In 2011, they

announced that they’ll be adding 500,000 new

units (a year), but there’s annual demand that

keeps adding up,” he warned.

Craig Plumb agreed with the sentiment expressed,

and added that affordable housing was the key to

resolving this issue.

As such, Al Saja said that one of the ways the

government of Saudi Arabia could resolve the

situation was to establish greater communication

and dialogue with the developers and contractors in

the Saudi construction industry.

The status quo

KSA will see the completion of

$613 billion worth of construction

projects over the next five years.

Gavin Davids writes that heavy capital

spending in Saudi is here to stay

The Last Word

Al Saja on the ministry...

“The Ministry of Housing should be a kind of regulator and cooperate

with the private sector, especially the developers and the financial companies,

the banks, real estate funds, the mortgage funds and so on. If they want to do it themselves, it will be a very

tough fight.”

Welcome toPutzmeister … experience the new generation of truck-

mounted concrete pumps - great advanced

features for your construction activities.

Power show act at 1 hour intervals starting

from 10:30 am - bauma hall B6. Do not miss

what others will surely be talking about soon!

More information:

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