Construction Machinery Middle Eas

PLUS: ACROSS THE INDUSTRY * NEWS & VIEWS * FORKLIFTS * DEMOLISHING THE MET * AND MORE

ISSUE 9

JULY 2012

PUBLICATION

LICENSED BY IMPZ

THE JCB STORY

OLYMPIAN HEIGHTS

Winning on the world stage

RENTAL PLAYERSaudi Cranes takes KSA renting to a new level

OCEAN RACEREXCLUSIVE Adil Khalid’s global journey

The world’s largest

Putzmeister Concrete Pumps GmbH · 72631 Aichtal · Germany · www.putzmeister.com

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For inquiries:

(General) (Bahrain, Kuwait, Saudi Arabia) (Oman, Qatar, U.A.E.)

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Contents

Page 43 NEW RELEASES ROUND-UP What’s hot in new machinery this month? Page 49 SECTOR ANALYSIS: FORKLIFTS Your guide to the latest in the forklift technology. Page 53 SPACE SHUTTLE LIFT-OFF How cranes were crucial in bring Space Shuttle

Discovery to its final resting place. Page 56 FIND ME A DEALER: KUWAIT Guide to the dealers in the Kingdom of Kuwait.

Page 58 THE LAST WORD Crane tragedies remind us the region still has a long way to go in terms of safety.

Raw power

04 EDITORIAL From small beginnings CMME joins the Big Project team.

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

14 NEWS ANALYSIS Why is the competition for auction houses heating up?

17 EXPERT OPINION Famco’s Paul Floyd on going from downturn to growth.

18 BACKHOE TO THE FUTURE CMME is in the UK to look at the story behind JCB’s global

expansion.

24 BRINGING DOWN THE MET It’s dusty, its dirty, but the demolition of the Metropolitan Hotel

is one of the most exciting developments in Dubai.

29 STANDING TALL Saudi Cranes is one of the most KSA’s most upwardly mobile.

34 LIFE ON THE OCEAN WAVES Adil Khalid on being the first Emarati in a global yacht race.

36 OLYMPIC DREAMS TO REALITY How an underdeveloped part of London has been transformed.

3424

ISSUE 9

JULY 2012

page 29

“THEY WANT TO WORK”

Jamil Assafiri of Saudi Cranes talks about the positive

contribution that young Saudis can bring to the construction

industry.

06 53

46

36

Editor’s Letter

CONSTRUCTION

MIDDLE EAST6 July 2012

Stephen White, Editor, CMME

PUBLISHER DOMINIC DE SOUSA

GROUP COO NADEEM HOOD

MANAGING DIRECTOR RICHARD JUDD

EDITORIAL

EDITOR STEPHEN WHITE

[email protected] +971 4 440 9110

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CONTRIBUTORS DAVE REEDER,

KAREN YOUNG

ADVERTISING

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CIRCULATION

DATABASE AND CIRCULATION MANAGERRAJEESH M


PRODUCTION

OPERATIONS DIRECTOR JAMES RAWLINS


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DIGITAL

www.constructionmachineryme.com

DIGITAL SERVICES MANAGER TRISTAN TROY MAAGMA

WEB DEVELOPERSJERUS KING BATION

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PLUS: ACROSS THE INDUSTRY * NEWS & VIEWS * FORKLIFTS * DEMOLISHING THE MET * AND MORE

ISSUE 9

JULY 2012

PUBLICATION

LICENSED BY IMPZ

THE JCB STORY

OLYMPIAN HEIGHTS

Winning on the world stage

RENTAL PLAYERSaudi Cranes takes KSA renting to a new level

OCEAN RACEREXCLUSIVE Adil Khalid’s global journey

NOW ONLINE You can now catch the

online edition every month at:

www.constructionmachineryme.com

I can’t believe that we are already onto the ninth issue of

CMME magazine with the release of our July edition. Time

does really fly!

It is fair to say when we launched Construction Machinery

Middle East at the end of 2011 that we were treated with a

degree of scepticism. Why does the industry need another publication covering the heavy machinery

market when there are plenty of others already doing it, we were asked?

However I hope that we have proved that not only does the market need it but it was long overdue.

I have been overwhelmed by the positive reaction to the magazine and I thank many of you for

providing me with your feedback - both positive and negative! On a personal level it helps me to drive

the publication to achieve bigger and better things.

Having celebrated the launch of our website in April, we are already seeing the effect of being

able to publish dedicated content out into a community where it can be sometimes difficult to find

information tailored specifically to our needs.

I’ve been working hard over the last few months to get some exclusive visits and insights into the

industry and we kick off this month with an exciting look at production at JCB’s HQ in the UK and

an interview with Saudi Cranes in Saudi Arabia. Look out for some more exciting features and visits

in CMME in the coming months.

However we also believe in strength in numbers at CMME and I can announce that we are now

formally part of the Big Project family of magazines.

Many of the changes won’t be obvious at first but it widens our audience even further plus it also

means that we can now draw on that team’s vast experience of the general construction market while

getting input from their global network of connections.

Of course, we will continue to bring you the very best in coverage of our unique industry but in the month

where all eyes will be on the Olympics, I’ll paraphrase and promise that CMME will be going higher,

better and further.

See you on site.

BIG IDEAS FROMSMALL BEGINNINGS

News Round-Up

CONSTRUCTION


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

Qatar: All infrastructure projects will be underway in 2012

Following the announcement that infrastructure building in Qatar will be overseen by five project management firms, the public works authority said

that it will look to Qatari contractors and companies to take the lead in construction.

Speaking at a recent event attended by 200 companies, Ashghal explained that the ambitious $9 billion programme will see each phase have specific criteria that “would determine the awarding of the framework agreement”.

The framework procedure will involve a procurement process that includes pre-qualification, submissions, evaluations and tendering.

Under the framework agreement, there will be an umbrella of agreements, that established general terms and conditions, schedule of rates, work orders and call off procedures, it was told One of the main norms for the selection process is the need for the successful bidders to be either a Qatari registered company or a joint

venture of a firm with a Qatari company.Qatari registered companies must have its commercial

registration with at least two years of local experience in infrastructure construction works. Non-Qatari contractors are expected to have a joint venture in a 50:50 partnership with a registered Qatari company.

Those between QR200mn and QR900mn would

be awarded either to Qatari firms or non-Qatari joint ventures. Similarly, works over 900mn could also be awarded to Qatari firms or non-Qatari joint ventures, having local participation.

Construction of roads and drainage across the five designated sectors are to co-ordinated by chief project consultants Parsons Brinckerhoff.

According to the locations, the new projects would be classified as those falling in Qatar North, Qatar South, Doha North, Doha South and Doha West areas. The five project managers are Kathab & Alami/WSP, TBD, Hyder Consulting, Parson International and Atkins.

Qatar North will have 40 new projects, Qatar South 15, Doha North 68, Doha South 80, Doha West 18.

Ashghal said it has worked with Parsons Brinckerhoff to establish the local roads and drainage programme is integrated with the greater infrastructure plan of the Qatar National Vision 2030 and to maintain pace with development required for the FIFA 2020 World Cup.

Intermat Middle East’s line-up looks set to have a strong international contingent when it returns in October – although Chinese participation could be down.

Event organisers Clarion Events Middle and Intermat veterans Comexposium have revealed that participants include Putzmeister, Liebherr, Terex Finlay, Sennebogen and LiuGong.

Intermat Middle East takes place between 8-10 October kicking off a busy end of year for shows in the UAE, with Big-5 following a month later in Dubai.

Comparisons

between the two will be inevitable and with that in mind, the organisers claim a survey of 150 top buyers showed 85% prefer Abu Dhabi as a location for an equipment show in the UAE.

While not the final list – there are still four months to go before the event begins – the organisers said that the survey results “state emphatically that the strategic location” of INTERMAT Middle East is ideal for organisations and individuals in the construction and infrastructure industries to

CHINESE COMPANIES NOTABLE

ABSENTEES IN STRONG GLOBAL LINE-

UP FOR INTERMAT MIDDLE EAST

September 20118 CONSTRUCTION


News Round-Up

All 220 infrastructure projects will be underway by the end of the year, officials at Ashghal have revealed.

CAT POWERED

BURJ In the event of an emergency

or blackout that Caterpillar will provide emergency power for Burj

Khalifa CEO Doug Oberhelman says. “To be standing on the 144th floor

of that building and to imagine one of our generator sets

simply incredible.”

September 2011

CONSTRUCTION

MIDDLE EAST 9CONSTRUCTION

MIDDLE EAST 9July 2012

COMPANY INTELLIGENCE JABAL OMAR DEVELOPMENT COMPANY

(SAUDI ARABIA) which is building developing

the Jabal Omar area including the construction

of five-star hotels, residential towers, retail

concourse and a car park,Development of

Jabal Omar area involving construction of five-

star hotels, residential towers, retail concourse

and a car park, has signed a $1.3-billion loan

agreement with the group of local banks. The

loan runs for 12-years, with a four-year grace

period on repayments.

The GENERAL AUTHORITY OF CIVIL

AVIATION - GACA (Saudi Arabia) has received

bids from three consultancy firms for the

independent engineering for Phase 1 of the

Medina International Airport Expansion Project.

The bidders include: UK-based Halcrow, US-

based Hill International and France’s ADPI.

Turkey’s GAMA and Germany’s METKA are

understood to be the front-runner to build

a 500MW power plant at Samawa in Iraq.

Contracts to build Amawa and Dewaniya power

plants are currently under tendering stage.

It is understood that around 10% of

construction work on the FOUR SEASONS

HOTEL RESORT PROJECT – Jumeirah

Beach Road in Dubai, has been completed

on this project. The resort comprises (237)

guestrooms, including (49) suites, 270 metres

of beachfront, three restaurants, function

spaces, a spa, indoor and outdoor pools, tennis

courts and a private beach club.

Jamil Assafiri, deputy general manager, Saudi Cranes says that young people in the Kingdom view the construction industry as a viable industry to develop their careers.

Saudi Cranes is a crane rental company that operates across the Kingdom providing a rental fleet of Tadano, Liebherr, Kobelco and Grove Cranes. Investors in the company include HUTA and Saudi Cranes, it also has partnership with Kanoo Machinery.

While his crane service company’s fleet of 75 mobile cranes are busy serving the booming Saudi Market, he stresses that the government remains interested in helping its young people to

build their own futures via its Saudisation programme.

“If you are teaching a Saudi guy to become a crane operator the government will assist you and 50% of his salary,” he explained. “This is attractive plan for some big companies. It’s less cost in terms of visas, salaries and flights. You are investing in people and they are committed to you.

“Saudi guys want to know more. We have three, four in our offices, working in the mornings and studying in the evenings. They are really working hard. They know now is the time for them to grow, get the experience and find a job.”

SAUDIS WANT TO WORK AS CRANE OPERATORS

1 Kuwait’s Ministry of Public Works has issued a new tender for the design

and build contract for the construction of 16-kilometre-long DOHA LINK BRIDGE. The project will link Shuwaikh to the port village of Doha in Jahra Region of Kuwait, also known as Sheikh Jaber al-Ahmed al-Sabah Bridge (Contract No.RS/214). It will link up with the planned Subiya Causeway and have three traffic lanes and an emergency lane in each direction.

2Qatar’s public works authority, ASHGHAL (Qatar), has released details of package

13 for the construction of 10-kilometre of four lane highway and THREE INTERCHANGES

AS PART OF DOHA EXPRESSWAY. UAE’s Al-Jaber Group has been awarded the main contract on this scheme. Project completion is expected by the end of 2014.

3Saudi Arabia’s SAUDI BINLADIN GROUP has been awarded the main contract on

the Jebel Ali – Lehbab Road Rehabilitation Works Project. The contract is believed to be worth $20 million.

TENDER UPDATES

STEWART MACPHAIL IN TO RESCUE AILING MOHAMMAD AL MOJIL GROUP (MMG)One of Saudi’s biggest fleet owners, contractor Mohammad Al Mojil Group (MMG) has appointed turnaround specialist Stewart Macphail as acting CEO as it begins its restructuring programme.

CEO Ibrahim Zadeh resigned at the end of May after the company posted a $265 million loss in Q4 2011 and a fall in profits of 31% in Q1 2012. Macphail has been has been the managing partner for Middle East and North Africa

at Consilia Partners. Previously, he served as the Group CEO at Riyadh-based Fawaz Alhokair Group with responsibility for the implementation and the day-to-day operational and strategic running of the retailer.

MMG brought in accountancy house PricewaterhouseCoopers (PwC) as a financial advisor following the resignation of Zadeh to handle an internal review of the operation to improve efficiency and reduce costs.

MMG’s equipment services unit manages and maintains a fleet of approximately 5,057 units of cranes, earth movers,

air compressors forklifts, pumps, trailer tractors, blasting machines and other construction related equipment throughout the Kingdom.

MAN ME revenue $1.28

billion in the last two years

German bus and truck manufacturer MAN has taken $1.28 billion in revenue from the Middle East region over the past two years.

The company first opened its Middle East and Africa headquarters in Dubai in 2006 and over that time has sold 56,787 vehicles, including 50,756 trucks.

CEO Sales Region Middle East and Africa Markus Geyer said that 2011 was particularly strong for the company as sales saw a 27% increase as revenues increased from $732 million in 2010 to $865 million in 2011.

“For the last six years we have been providing our transportation solutions which combine efficiency, safety, comfort and environmental friendliness to our customers – private sector organizations and especially the public sector,” said Geyer. “In the aftermath of the economic slowdown during 2009-2011, our sales have steadily picked up growing by over 18% year-on-year in 2010 and nearly 27% in 2011.”

MAN Truck & Bus Middle East operates through an extensive network of 35 private capital dealers and importers in 14 countries, and the company is a major provider for public transportation solutions in the UAE, with more than 800 buses operating in Abu Dhabi and Dubai.

September 2011

CONSTRUCTION

MIDDLE EAST10 CONSTRUCTION


Al-Jaber Group’s Trakker Middle East (TME) and US company Global Track are launching a range of container tracking devices for cargo shipments.

The UAE-based TME is a specialist in monitoring vehicles, busses, trucks and construction equipment and claims to have the largest market share in the Middle East. Together with Global Track, it will now launch global tracking systems for containers.

“TME is a pioneer in tracking systems in the middle east, using satellite technology GPS & GPRS , we have long experience in monitoring vehicles, busses, trucks and construction equipments , where we built good reputation which allowed us to capture the biggest share of market in our region,” said TME’s general manager Naim Abdel Hadi.

“This agreement comes according to our policy on the way of privilege to select our partners carefully to provide excellent service to our clients within

UAE, and Global Track comes in first place in the field container tracking system. Where its products are made of high quality components, and accredited by the Pentagon.”

Naim added that after September 11th, the world has become more increasingly aware of the importance security technology “to secure and protect people as well as assets and investments.”

With the acceleration of international trade, there is a need for tracking system which help in monitoring containers and cargo shipments by using modern techniques, especially via satellite, he said.

Such systems help to minimise the theft, illegal trade and losses, he said, “where these sophisticated devices can also monitor the weather’s condition and control temperature and humidity inside the container, which helps to goods to reach destination in good condition.”

Rashid Hospital Tunnel

75% complete

One of Dubai’s biggest traffic obstacles, the roadworks on the Rashid Hospital Tunnel, are on course to be completed by June 2013.

According to Mattar Al Tayer, executive director of the RTA, the $200 million project will increase vehicle capacity to 6,000 vehicles per hour when complete.

“The Rashid Hospital Tunnels is being constructed as part of an integrated project through which the RTA is seeking to reduce traffic congestions in the vicinity of Rashid Hospital, and raise the traffic flow in the area,” said Al Tayer.

The project contractor has finalised all infrastructure works

related to Dewa, sewage system, and Etisalat, he added.

“Construction works have also been completed in vehicles and pedestrians underpass, whereas completion rate has almost clocked 70 per cent in storm-water drainage works, more than 95 per cent in tunnel electromechanical works, and almost 60 per cent in road works, light signals and street lighting,” said Al Tayer. “Over the next few weeks, the RTA will open the surface roads linking with Al Riyadh Street and Oud Maitha Street, and the step is poised to streamline the traffic flow and ease vehicular congestion in the area between Al Riyadh and Oud Maitha Streets.”

RESCUE BID

Rescuers in Ontario, Canada turned to heavy equipment for a controlled demolition after a shopping mall roof collapsed in Elliot Lake, trapping a dozen shoppers inside.

News Round-Up

AL-JABER GROUP’S CONSTRUCTION EQUIPMENT TRACKING SPECIALISTS LINK UP WITH US FIRM

September 2011

CONSTRUCTION



MASCO BUYS 162 VOLVO MACHINES FOR HARAMAIN HIGH SPEED RAILWAYSaudi contractor MASCO (Mohammed Al Swailem Co) has purchased 162 Volvo excavators for work on the Haramain High Speed Rail project.

Already labelled the Western Railway, the $11 billion Haramain High Speed Rail project is a

450km inter-city railway that will link Jeddah to Mecca and Medina.

According to Al-Rehab, the Volvo dealer recently acquired by FAMCO, MASCO purchased 100 EC210BLC excavators in 2011 and has followed that up with another 62

in 2012.According to local

media reports in the Kingdom, Phase 2 of the project, which includes installation of signalling and maintenance equipment, is due to begin shortly on the 12-year project.

DIGGER DIPLOMAS

JCB is in talks with the UK government about starting up its own line in qualifications that could

secure teenagers a job interview with the

company.

September 2011

CONSTRUCTION



First the wheels came off the Spanish

economy and now hands have

come off steering wheels of Volvo

trucks and cars on its highways in

Volvo’s successful trial of self-drive

technology.

The Swedish vehicle and machinery

maker said that a convoy of trucks and

cars tested its Safe Road Trains for

the Environment (SARTRE) technology

over a course of 200 km on a Spanish

highway near Barcelona in May.

Negotiating traffic and traveling at

120 kph the vehicle formed a convoy

behind a lead FH truck driven by a

professional driver. Volvo explained

that the vehicles in the road train

were equipped with safety systems

including cameras, radar and laser

sensors, enabling them to monitor

the lead vehicle and other vehicles

on the road. Using a WiFi system

developed by Ricardo UK, the vehicles

accelerated, braked and turned in

exactly the same way as the leader.

According to Volvo benefits of the

system improves traffic safety, reduces

environmental impact and cuts the

risk of traffic tailbacks. It estimates

that fuel savings due to slip streaming

also cuts fuel consumption by 20%.

Volvo project leader Linda

Wahlstrom was filmed as part of the

convoy and said that she found time to

sit back and do some light reading as

the car continued to drive itself.

“It is quite funny to see the passing

vehicles,” she said. “They are quite

surprised seeing me not driving the car

but reading a magazine.”

Terex Cranes has announced that it is relocating the manufacture of self-erecting tower cranes from its manufacturing plant in Italy to Montceau Les Mines, France.

Terex said that this will affect its full range of self-erecting tower cranes, which includes 12 models ranging from 1 to 6 tonnes maximum capacity and 16 to 45 meters jib length.

Effective as of July, the upcoming production transfer will provide for the creation of 150 new jobs in France, says Terex.

“We started to find that we lacked sufficient space to cater to the demand for our self-erecting tower crane products at our Italian facility,” said Steve Filipov, president developing markets, Terex Corp. “We see the move to Montceau-les-Mines as a good opportunity to continue our strategy of improving our production capabilities and finding synergies with our existing production facilities.”

The Montceau Les Mines facility currently builds Terex AC 40, AC 60, TC 40, TC 60, Roadmaster 5300 road mobile crane, and Terex reach stacker product lines.

“Our facility in Montceau-les-Mines has an excellent track record for its manufacturing quality,” said Filipov. “It’s an ambitious challenge that we now feel ready to take on. We expect the reduction of transport costs, based on the geographically central location of our French plant, to have a positive impact for our customers.”

In other news Terex has completed the purchase Italian luffing jib tower crane manufacturer Recom after buying out the 33% of remaining shares in the company. Recom was previously owned by Ferruccio Moritsch, who also had his Comedil tower cranes company bought by Terex in 1999.

BAD TRUCK DRIVERS FACE DEPORTATION IN SAUDI ARABIA

News Round-Up

TEREX MOVES CRANE PRODUCTION OUT OF ITALY

Reckless non-Saudi drivers will be deported from the Kingdom if they repeatedly commit traffic offences.

Under new laws being introduced, drivers that receive 18 points three times on their licenses during their stay in the Kingdom will have their residency visas cancelled and face deportation.

According to Arabic newspaper Al Madina, the new laws will soon be introduced with

the Kingdom hoping to encourage positive driving by dropping all previous penalty points if a driver spends one year without any offence.

Everybody with a valid Saudi driving licence

will be credited with two points for safe driving if he has no offence during one Hijri year.

Saudi Drivers who reach 24 points in one Hirji year will also face driving bans up to a year.

VOLVO TRIALS NO DRIVER TRUCK AND CAR TECHNOLOGY ON SPANISH HIGHWAYS

September 2011

CONSTRUCTION



RAK RING ROAD GO

The UAE has awarded contracts totaling $120 million for road construction in the Emirate.

NEW HOLLAND CRAWLER EXCAVATORS. SUPERIOR PRECISION, MORE FUEL SAVINGS, BOOST YOUR PRODUCTIVITY BY 10%.

E215B NEW GENERATION

COUNTRYBahrainKuwaitKSAUAELebanonSudanOmanQatarEgyptTurkey

DEALERAhmet Mansoor Al A’AliICTCOAAAALSAQERMEDEVCOThe Central TradingIECCQ-FABOMATRACUKUROVA ITHALAT

CONTACT NUMBER+97317772256+965 24749312/13/462+96626695595+97125545900 +961-9-233550+249 187 14 4164+968 9533 5107 +974 66852999+20235390051+902163953460

CONSTRUCTION

MIDDLE EAST14

News Analysis

Dubai’s traditional machinery auction rivals once again go head to head this month with their pre-Ramadan sales, but their domination of the market is

coming to an end. On 7 July, WWA will open its three-day auction in

Jebel Ali South. The list of equipment shows how useful these auctions have become at getting rid of unwanted plant and fleet in the region. The listed lots include 162 gen-sets, 40 tractor trucks, 31 light towers, 28 telescopic handlers (mostly JCBs) and two jet skis.

A week later and across the Sheikh Zayed Road, bidding will be open for Ritchie Bros’ own July sale which takes place a few days later on 17 July at its huge facility near the docks of Jebel Ali Port.

For years the two auction houses have locked horns in Dubai. Ritchie - the world’s biggest auction house and a listed company on the Nasdaq exchange - has an impressive set-up in Dubai; a huge yard and auction hall facility where bidders can view machines as they are paraded in front of them.

Conversely WWA has slowly upgraded its site in Jebel Ali South and like Ritchie holds unreserved auctions globally in locations such as: Amsterdam, Australia, Qatar, Guangzhou, Jakarta, Perth, Philippines, Lebanon, India and the USA.

It has more than held its own against formidable opposition.

According to the company, “WWA has sold at auction over 77,000 items construction equipment at its 90 auctions in Dubai from March 2001 through May 2012, for a total amount of over $1,119 million in auction value. WWA has controlled a market share of 40% to 65% of all industrial equipment auction sales concluded in Dubai in 2005 through 2010.”

Since 2010 Ritchie has stepped up a gear, recording a record sale in March 2011 which saw it hit a scorching high of $57 million. In that sale, $15.7 million was spent on 20 late model Cat 777D rock trucks alone. While some were distributed back into the UAE, buyers from Germany and current auction darling Australia also dipped in to pick up the quarry workhorses.

Auction sales in the region are now truely international affairs. The end of the boom in Dubai, plus a continual stream of older equipment reaching the end of its usefullness, has seen many machines being sold outwards to South America, Africa and Australia. It’s a region where unreserved auctions have succeeded in tapping into buyers looking for a bargain, benefitting both WWA and Ritchie.

However the global auction scene has become a highly competitive marketplace, and the Middle East is percieved as still holding a lot of potential for lesser known (regionally) names such as Euro Auctions and Iron Planet. The new names bring a different flavour to the arena.

Auction houses step upIt’s a sellers market as the region becomes a hot-bed of auction activity.

CONSTRUCTION


September 2011

CONSTRUCTION

MIDDLE EAST 15

Euro Auctions may not have a physical auction yard in the Middle East but has staging points dotted globally. It has become a useful route for those with machines that will tempt booming markets.

“Where last year the trend was to ‘hang on’ to equipment until the price changed, that time has now,” general manager Jonnie Keys wrote in last month’s CMME. “Heavy equipment is now moving to where it is needed most - Australia.”

As ever, things move on in the auction arena, and when CMME talked to Euro Auctions’ spokesman Barry Walker last month, he suggested that while Australia is still bouyant, Brazil looks set to become the next stop for a lot of ageing Middle Eastern equipment.

The web-focused Iron Planet arrived in the region in 2010, promising to offer a genuine alternative to those willing to use the internet for their purchasing and selling requirement.

While Ritchie and WWA both have online auction capabilities, Iron Planet’s reserved price model also swaps yards for inspectors acting as avatars for bidders making sure that the machine doesn’t have to be sold as seen (called IronClad Assurance).

The auctioneer is being highly progressive with its approach to selling used equipment in other areas too.

In 2010 it entered into a partnership with ERC Asset Solutions which sees the two will offer the

option of an online auction to companies looking to release liquidity from construction and agricultural equipment.

It has been highly pro-active in the Middle East too. The first stage of its launch was a high profile marketing campaign, but a second, almost under the radar stage has seen it partner with Q-Fab in Qatar. As CMME reported in its May issue the pair have been busy selling used cranes and equipment out of the country, with Africa a particularly popular destination.

With used machinery still in ample supply and needed globally and in the region, the UAE continues to empty its reserve of used equipment.

May saw the start of JLL Auctions, a joint venture between local firm Al Nowais Group and property giant John Lang LaSalle, sales in Abu Dhabi. Its long-term plan is to hold up to 15 auctions per year that cover plant and machinery sales over a broad range of industrial sectors. Focussed on the Abu Dhabi region, it seems in contrast to the global-scale business that auctions have become.

Consequently the Middle East finds itself in a state of almost perfect equillibrium with both sellers and buyers set to benefit. The downturn may have left many countries scarred but for those bundled with an excess of assets and equipment it is has never been easier to find a buyer. The shame being it may not go for the right price.

Failure to administer construction contracts properly and employer-biased project managers were major contributors as the value of contract disputes doubled in the Middle East last year, according to a new report by EC Harris.

In its Global Construction Disputes report, EC Harris revealed that the average value of disputes doubled from $56.25 million in 2010 to $112.5 million in 2011. The region is now almost three times higher than the global average which fell from $35.1 million to $32.2 million on the back of increasing emphasis by both the public and private sector owners to avoid and mitigate disputes through risk management and early, field level, resolution of disputes.

Researchers at EC Harris’ Contract Solutions team said that a failure to properly administer the contract was the most common cause of a construction dispute in the Middle East.

EC Harris identified the performance of project managers or engineers as a crucial contributor to the causes of contracts entering into a dispute.

The most likely problem with the project manager or engineer was that they were too partial to the employer’s interests, followed by a lack of understanding of the procedural aspects of the contract, said EC Harris.

“Their conduct often being at the heart of how the dispute crystallised,’ said the analyst. “The most likely problem with the project manager or engineer was that they were too partial to the employer’s interests, followed by a lack of understanding of the procedural aspects of the contract.”

Settling disputes most commonly involved taking the case to arbitration before entering party to party negotiation and adjudication.

According to David Dale, the Middle East bucked global trends as companies sought to resolve disputes as the region recovered its confidence in an improving economic climate.

“The Middle East saw a flood of major disputes last year,” said Dale “Over the past few years we have seen a reluctance to settle in the Gulf region, but this has been replaced by a stronger desire to do business and resolve disputes as the economies strengthen. On the whole, however, disputes are still costing the industry time and money. Focusing on avoiding the dispute from the outset through better mitigation and contract design is always the better option.”

BIASED PROJECT MANAGERS BLAMED FOR DISPUTES

According to EC Harris, project managers are

often too partial to their client’s demands.

15CONSTRUCTION

MIDDLE EASTJuly 2012

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CONSTRUCTION

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Expert Opinion

July 2012

Be bold and find growth

When Lehman Brothers went bust in 2008, few people in the Gulf were thinking that it would affect them.

When you are surfing a wave, like we were, it can be very difficult to believe, or want to believe that it has come to an end.

The global downturn was especially hard on construction. From 2005 to 2008, FAMCO had tripled in size in three years. However, this was all UAE-based and clearly not sustainable in what was quickly becoming a crisis.

One of the reasons we are now in a position to grow is that we dealt with the crisis very early. We faced up to it and very quickly switched our mindset from being in a boom to how do we deal with being in a crisis?

The most important element of that was the focus on cash. There was not a company in the Gulf at that time, geared up for growth, that didn’t have levels of inventory and receivables that had suddenly become excessive.

However as our competitors were also in the same situation, I knew if we managed the crisis better, then we would come out of it faster, and in better shape than them. We made some difficult decisions in terms of FAMCO’s structure, we shed some costs, but we didn’t panic either. It wasn’t a case of slashing heads to cut, we opted for trimming rather than major surgery.

A lot of our workforce is employed in service and parts – the kingpin of our operation and customer service levels. Relative to the equipment sales it held up pretty well as companies still needed to

keep their machines and vehicles running. There were less machines in operation but, unlike sales of heavy trucks and machinery which fell globally 65% in one quarter, the aftermarket did not go off the edge of a cliff.

We also decided that we must never lose sight of our customers.

So by focusing on the cash element, the flow of money coming into the company, and fixing it we knew that we would be OK. Knowing that the Dubai market was unlikely to be the same post-crisis, the other crucial element was growth and that was always on our radar.

In fact, the crisis polarised our thinking. A new strategy was required and some of our plans were accelerated to widen the business across a much larger geography.

In terms of that growth we took on a twin strategy. We knew in some markets, like Oman and Qatar, we could start up something new.

In others, if we wanted to be a serious player we could only do it by acquisition. For us to start up in Saudi Arabia would take us years to do. Realising that led us to acquire Al-Rehab at the end of 2011.

The natural approach is to go to your neighbouring country first and build a presence step by step, and we did that in Oman and Qatar. But if you really want to make a statement you need to be bold. So we did both.

The management requirements for both strategies are very different. Any manager that has done a start-up will tell you it’s probably the most difficult thing you can do.

Every single detail has to be covered from point zero – everything from registering the company, finding the premises, hiring people to buying a kettle. It can be more difficult to start a company with ten people than to run one with 200.

To fill those positions we recruited locally but we also exported some of our management team as your own people in new markets understand your philosophy and the way you do business.

The two countries have allowed us to learn and cut our teeth.

In the case of Saudi Arabia and Al-Rehab, we have a good company that certainly isn’t broken but if we don’t inject some of our direction into the business then it won’t grow to its full potential. It’s a question of prioritising the changes you want to make and very importantly getting buy-in from the senior management. This is a process of integration – into the FAMCO way of doing business.

We’ve gone in trying to get ahead of the curve in Saudi Arabia. We want to double market share in KSA within three years and become the number one in customer service with a much expanded network. Simple, but how do you do it?

We have to put in place the right structure that allows us to grow and will not restrict us. Everyone has to share the vision with you. They need to be able to realise the growth potential and understand our wanted position and we need to be operating in a certain way.

Once you’ve demonstrated that you are going to invest, it can only be a good thing for those already there. We’re six months in and we can already see that we are making great progress. Any move to Saudi for a distributor has to be a big investment as it has to be conducted on a certain scale and I’m sure that deterred some other companies. Either you have the appetite for that investment or you’re better off staying out.

The past few years have taught us that the construction industry in the region has to think in terms of sustainable growth.

It is no good approaching these markets with a gold rush mentality and strong leadership is required for a clear strategy and direction. Everyone should be encouraged to have a voice, and communication must cascade through the company.

If you have a passion for this business you can always succeed.

As part of a new series, Paul Floyd, managing director, FAMCO, looks at how growth can be achieved in the post-downturn climate.

“IF YOU HAVE A PASSION FOR THIS BUSINESS YOU CAN ALWAYS SUCCEED.”

PAUL FLOYD MANAGING DIRECTOR FAMCO

Expert Opinion is a new series from FAMCO (Al-Futtaim Auto & Machinery Company) that will highlight major issues affecting the heavy equipment industry.

July 2012

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Special Report

BACKHOE TO THE FUTURECMME visits JCB’s headquarters to get a sense of its history and where it is heading.

July 2012

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We were sitting in the office the other day,” says a fellow passenger. “And we were wondering what industry does the UK have? You don’t own your cars anymore, planes, or anything. I mean,

we just couldn’t think of anything.” Fast forward three weeks and I’m sitting in

another car, it’s German, but we’re on our way to one of the few companies that is undeniably a British “industry” success. JCB.

The headquarters for JCB are located in leafy Staffordshire. Once upon a time it was an area known for its pottery, today it’s the home of Alton Towers, the UK’s biggest theme park, and the production of JCB’s backhoes as well as its administrative and marketing hub.

In keeping with the theme park, erm, theme, JCB has also opened up its own attraction, the JCB Story, a tour as the name suggests through its history. Filled with lovingly restored machinery and a treasure trove of memrobilia, it takes visitors from a recreation of founder Joe Bamford’s first garage, its early tractors and backhoes, right through to JCB’s sterling global growth.

“Welcome to the JCB Story,” proclaims JCB’s Nigel Chell as we enter the museum-cum-showroom.

“There was a family called Bamford that started a business in 1874. Before that they were the town’s blacksmiths,” he begins. “Eventually this business came full circle in the 1980s when JCB bought their sites. They went out of business because they didn’t keep up with trends in farming mechanisation.”

The circle he refers to began when Joseph Cyril Bamford joined the family business in the 1930s. Precocious Joe was later fired by his uncle: “And hence he set up JCB,” Chell chuckles.

A recreation of Joe Bamford’s first workshop, a lock-up garage in Uttoxeter, is the first major stop on our tour. It’s built to scale says Chell, and easily dwarfed by the room, let alone the production plant that is tucked underneath us.

From there Bamford moved the business from Uttoxeter to some stables at a hall near to its modern headquarters. Chell shows me a black and white picture of Joe and his family taken at the stables.

“I found this photograph after Joe died, next to him is Mrs Bamford, the baby in her arms is Sir Anthony (Joe’s son, now the 66-year-old chairman of the company),” he says.

One of things that grabs you when you look at the picture are three words scrolled over the building.

“She (Mrs Bamford) had it in her collection and I

July 2012

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The onshore oil and gas industry in Oman is helping JCB’s dealer Muscat Overseas Equipment to grab market share in the Sultanate.

The Muscat dealership says that it is “riding high” with increased orders for equipment used on onshore oilfirends. The dealer has recently opened three new brances at Salahah, Sohar and Niswa. General manager Bala Chatoth says the company is adapting its operation to meet demand.

“We sell a complete range of equipment including skid steers, backhoe loaders and excavators,” Bala comments. “We have recently opened branches in enditioned event space Salahah, Sohar and Niswa, which

is close to an oilfield where development projects are underway.JCB machines are in great demand wherever onshore drilling sites are opened and rigs are installed.

Muscat Overseas has also invested in the launch of mobile service teams and a new stock yard which complement its training centre at its Muscat headquarters.

Former Al-Futtaim executive Bala says the company has improved its headcount and is on the look out for local talent.

“We now have 170 employees. We aim to boost our heavy line market share and we have an ambition to ensure that more Omanis work for the company as opposed to expatriates,” explains Bala.

Oil boosts JCB in Oman

Special Report

loved it,” says Chell. “The sign is written in paint J C Bamford. It really shows the roots of the company.”

Among other photos of JCB’s early years is one of its first employees Bill Hearst.

“He was an apprentice at JCB aged 14 and he’s still living – about 78 I think – he did about 50 years of service with the company.”

Spending time with those that work at JCB you get the impression that they feel like they belong there.

A cynical journalist will always view this with suspicion but rarely have I met a company with so many people contented to measure their time in decades and not years.

Hearst it would appear was the first of many.While happy people make for warm hearts and

good PR, it is with the machines that JCB has been built. Having left the recreation of Bamford’s old workshop we start to see the progression of the machine design through the decades. One of the

first machines is a tractor with a single loader arm, “We still use it today with the skid steers we manufacture,” Chell reflects.

More than any other, it is the backhoe which is JCB’s signature machine. The machine in the museum looks like it could still do a job.

“That’s the Mark 1 backhoe that was built in 1953,” he says.

Pointing to another early backhoe, Chell points out a machine was restored by some volunteers at the company.

Looking like an adapted tractor it dates from a time before JCB was still to settle into its familiar orange, the lick of paint added by the restorers gives it a stunning look.

“I love the colour scheme,” says Chell. “The red and the yellow probably wouldn’t work today. You associate it with that era.”

As we move through the machines grow much more familiar, although some, including an angular -looking cab, are very much products of the time.

“I presume it was to add visibility with the backhoe, helping to drain off rain,” he says. “Even then they were thinking about visibility.”

One impressive display is a cabinet of hundreds of toy versions of JCB machines which Chell says has been collated from its own archives and an ‘enthusiast on the backhoe line’. It’s a great way to see how lines of machines have been developed over time.

As well showing its machines, JCB also makes a point of displaying its line of aircraft dating back to the 1960s.

“It was a big part of us being able to grow our markets,” he says, “Being able to fly in and out of Europe within a day was a huge advantage at the time.”

“DEVELOPED ON ONE SIDE AND MANUFACTURED THE OTHER. IT’S A WINDOW ON THE BUSINESS.”

July 2012

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Special Report

Like the company, the JCB Story steps up its scope after Joe Bamford retires in 1975.

“We move from where Joe Bamford is building the brands and working on product development, he then hands over to his son, Anthony. Up to that point it had all been about punching above our weight, really,” says Chell.

Part of the tour is set in what was the old design studio. Fascinatingly Joe Bamford made sure that his office was alongside (you can imagine the life-long engineer unerving designers as he peered over their drafts on his way to his office). The office is of its time wooden recesses, sturdy furniture, but most spectacularly it looks directly down onto the factory floor.

“This was Joe’s office originally,” Chell remarks. “Machines were being developed one side and being manufactured on the other. It was a complete window on the business.”

Under Sir Anthony, JCB has undergone a huge global expansion programme and now has 72 factories worldwide. A display gives an overview of its now global presence highlighting its major successes, including in India.

“It’s phenomenal,” he comments. “We’ve been there since 1979 and I think even Sir Anthony would say it was more by accident rather than by design that we’ve been so successful.”

The timing may have been fortuitous, but JCB has greatly benefited from its exciting chapter in the sub-continent.

“The Cat president was in the Financial Times last year and he said that JCB had whipped their asses in India,” he laughs.

While it is undoubtedly a corner-stone to its current standing as the top 12 construction company in the world, India is not the only country in which it is currently enjoying success. Like many others, the company is fixated by the potential of the Brazilian market.

“We are about to open a new excavator and backhoe factory near Sao Paulo in July for the South American market,” he explaines. “That market used to be so unstable, but it is stable enough to do direct business now.”

He continues: “And you have to manufacture otherwise you have to pay punative prices to import. There is a lot happening there.”

Its progress in the skid steer field has seen it grow a steady income out of the US market (where unlike in the UK, a backhoe is a backhoe not a JCB): “We are dedicated to skid steers on a highly engineered excavator. There is still a huge opportunity there.”

We’re nearing the end of our tour around JCB’s history and its future.

“The reaction to the tour is normally pretty special,” says Chell. “It does open the eyes of customers that may not yet be with us. As an employee it makes you proud to see where the company has come from. Hopefully that rubs off on the people that go round too.”

Unlike its European peers such as Germany and France, the UK failed to hold onto many of its industries in the post-war period. JCB however has bucked the trend and gone on to be one of the UK’s largest privately owned companies and one of the most recognisable brands in construction machinery.

But why was that? How did it succeed where others failed?

Having spent an afternoon with the company, getting a sense of the history, the pride in its workers, and the honed production, you get the impression that it’s never lost sight of where it’s come from. You also get the impression that it sure as heck knows where it’s going.

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July 2012

CONSTRUCTION

MIDDLE EAST24

Market Analysis

Everyone who goes there has a story about how they remember Dubai when they first saw it. Long term residents will recall how the Hard Rock Cafe, which is now an empty shell dwarfed by the towers of the Marina

and Jumeirah Lake Towers developments, stood alone on the road to Abu Dhabi before the rest of the city caught up with it.

Those that go further back will remember the World Trade Centre Building being one of the few tall buildings away from the city’s heart on the Creek. Then there are those that remember the Metropolitan Hotel opening an outpost for expats and locals and bringing glamour to a lonely deserted part of the city.

After that opening in 1968, the Met soon became an institution and its walls the sounding board for the thousands of small stories that form much of Dubai’s early modern history.

Even the names of its drinking holes, the Rattle Snake and The Red Lion, called back to an earlier time before Dubai went up-market and global with boutique

bars and multiple-starred Michelin restaurants. Despite the downturn of recent years, Dubai

has retained its appeal as a tourist and business destination, and in an ever-competitive market the venerable hotel has not been able to convert a new generation of punters.

Shielded by the Metro on the Sheikh Zayed Road and lost in the steel and glass landscape of downtown Dubai, the Met had become a dusty relic, long before owners Habtoor Group decided that it was closing time on the hotel earlier this year.

By May demolition work on the hotel had begun in earnest.

“Parting with the Metropolitan Hotel, our first hospitality venture, is not easy as it is filled with great memories, but I always believe in looking forward,” Khalaf Al Habtoor, chairman of Al Habtoor Group, told reporters in January. “The tourism industry in the UAE and Dubai is constantly and steadily growing and we have to be prepared to cater for the growing need of its visitors and residents alike.”

BRINGINGDOWN THE METCMME scours through the rubble of the Metropolitan Hotel in Dubai and discovers what will take its place.

July 2012

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Habtoor have big plans for the old hang-out. In place of the Metropolitan hotel will come three hotels which between them will hold 1,616 rooms, have 50,000 square feet of banqueting and meeting space, a 1,000-seat broadway-style theatre which comes complete with water fountains and a moving stage, a 400,000 square foot landscaped garden, and a sports academy with 12 tennis courts.

Replacing one hotel with three modern venues makes financial sense to Habtoor, but despite an army of machines swarming over its remnants, when CMME visits the site it becomes immediately obvious that the old lady is not prepared to go quietly.

The project site is a noisy, dusty tangle with machines nibbling away at the carcass of what used to be the Met. A lot of it has been flattened, but much remains. Actually ‘remains’ is a good word for it. Looking up from the floor of the site, there’s a massive escarpment of concrete and an excavator busy below its overhanging roof. It looks like something big took a bite out of it.

“That used to be the cinema,” points out project manager Martyn Wild. “It’s 378m by 120m. When we re-open we’ll be able to have a theatre for events like Cirque De Soleil [more on that later].”

The noise of the crew of excavators makes it difficult for us to hear each other and it highlights one of the big challenges of the site, accomodating the residents that still live in the grounds.

In fact the residential buildings currently separate two parts of the site and throughout the four years it will take to build, the company will have to be careful not to cause major disruption to those that are still providing income.

“We built a separate access road for them,” he explains. “There’s a couple of hundred apartments, all let.”

Returning to look at two buildings at the far end of the site, he points to one of them that is still being used as accomodation.

“The distance between the two is about 15m, how are we going to knock it down?” he asks.

It looks close enough to bring both down should somebody get a little over excited in the cabin.

“They’ll form a ramp with the rubble,” he explains. “So that a digger can get high enough. Then they drop a weight over it to about half-way across using a crane.

“Once they get that far they use the ramp and the long arm diggers pull it down so they can pull it

towards them, bit-by-bit. The concrete frame and the slabs have to be broken down as well, bit-by-bit.”

As we climb over the rubble of what used to be the Met he reveals that the demolition is 75% done having begun April 29, starting with the Rattle Snake. A crew of excavators is scratching at the rubble, clearing waste away.

That waste is then separated, so that the steel and metal of the building can be recycled. Much of the hotel’s fixtures and fittings, he explains, have already been recycled elsewhere in the world.

“A lot of the doors and windows have ended up in Afghanistan. We even took out an escalator which is going to go into another building.

“The guys that do the demolition can make money out of it. They knock it down, shatter it and then a guy breaks it up.”

As we walk, Wild runs through the mental images of what used to be standing in the dust.

“Here is where the Rattle Snake was, some shops here, and other single storey stuff.”

“A LOT OF THE DOORS AND WINDOWS HAVE ENDED UP IN AFGHANISTAN. AN ESCALATOR IS GOING TO GO INTO ANOTHER BUILDING.”

July 2012

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Market Analysis

We continue on and up onto a ridge of inexplicable concrete. Once it could have been a lobby or a restaurant, now it is looks like a deconstructed lunar landing site. While it is one development, the work is being split across two sites.

Wild explains the differences. “One half, the demolition site, is being done by Al

Rashid, who are knocking down. And the other half is HLG (Habtoor Leighton Group),” he says.

We drive-by the section that HLG is working on. It used to be a car park but eventually it will house one of the hotels. For the moment piling equipment is in tearing it into shape.

“They started with the piling and now they are driving shoring piles into the ground,” he explains. “We’ve got three basements, so they are going down about 18m. Up until Saturday that had 108 continuous piles in.”

During our tour, he says that there are two piling machines in operation and another will soon be working. As the piling is completed, cranes are used to drop the casings in. Earth is removed by truck to a dumping site.

He adds: “they’ll strip it, and once they get a certain amount of the shoring done then they can start excavating.”

The excavation will drop the level of the area by 2m across the site before dewatering can begin. That work should be completed by early July. “We need to get that in before they can go any deeper.”

He continues: “The digging will be the real show. The whole site, going down 18m, is going to need an army of trucks to keep it clear.”

According to Wild, the development on the Met site is the biggest site on the Sheikh Zayed Road.

“The construction will take place on the old site of the hotel, turning it into three hotels, a St Regis

which will overlook the gardens, a W hotel and a Westin Hotel. At 1,600 keys it will be bigger than the Atlantis.”

He adds: “Then we’ve got the 1,000 seat Dragone theatre. It will be like Cirque D’Soleil but with water. It’s outrageous. Google it – it looks amazing.”

As owner and developer, Wild says Habtoor has taken a different approach to the project.

“Usually it is a very inefficient process in the case of hotels because somewhere down the line you are negotiating with an operator who may not like the design. They re-design it and then pass it on to a contractor who will have their own ideas and redesign it again.

“We’ve got the operator, consultant and contrator (sister company HLG) on board at the design stage. Instead of designing it three times we’re doing it once.

“We’ve closed a revenue generating hotel so we want it done as efficiently as possible. It’s also a buyer’s market and we’ve got some good deals. It may be risky but it is possible to price a concept design as along as you know what you’re doing.”

The three hotels are not the only projects on the go for Habtoor, the Waldorf Astoria on the Dubai Palm is back up and running after the foundations were filled back in after the downturn hit Dubai.

“We’ve brought Hilton in and have redesigned it. That hotel is on ground level now and is 18 months away.”

Looking over the demolition, it is easy to presume that the past is being knocked down and ridden over but Wild says that Habtoor is keen to preserve some of the old Met magic.

He reveals that a trump card to the resort will be the return of some old favourites.

“We’re taking six or seven outlets from the old hotel,” he says. “The Red Lion, the Rattle Snake, Corleone’s will all be transposed.

“We’ve even saved the bar for the Red Lion and a lot of other stuff. It’s gnarled and marked, it’s been around for 30 years and it looks like it. Perfect! We must have it in the new hotel,” he says. “It’s a good job as it’s a good bar.”

“THE DIGGING WILL BE THE REAL SHOW. THE WHOLE SITE, GOING DOWN 18M, IS GOING TO NEED AN ARMY OF TRUCKS TO KEEP IT CLEAR.”

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July 2012

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STANDING TALLCMME looks at the success story

of Saudi Cranes, one of the Kingdom’s up and comers in the

rental crane market.

Interview

Saudi Crane’s Jamil Assafiri says the Saudi market has reached the point where the pie is big enough for everyone in heavy machinery supply to get a slice.

Saudi Cranes is a relatively young crane rental company having started in 2007, but it has made solid progress in that time, deliberately scaling up its fleet without over-stretching itself. As part of its service it provides operators for jobs ensuring that it straddles the divide between supplier and sub-contractor on an array of projects.

“As a crane rental company we come under the Saudi Bin Laden Group. Relative to our age I think we are doing very well,” he explains. “The strength of the Saudi market is that in can absorb different sized companies with different levels of qualifications: the most and... the least professional.”

According to Assafiri, the big projects in the Kingdom and their geographical spread make it a particularly exciting market.

“It can absorb all kinds of expertise,” he enthuses. “In whatever industry you are in you can find the right job. Whether you are in timber, steel, sand, cement, soil, compaction, industry, rental, selling you will find a need for machines on all levels.”

Saudi Cranes operates across the Kingdom providing a rental fleet of Tadano, Liebherr, Kobelco and Grove Cranes. Investors in the company include HUTA and Saudi Cranes, it also has partnership with Kanoo Machinery, which acts as its supplier and service provider.

It currently has a fleet of 75 cranes and with the market hungry for cranes, Saudi Cranes has continued to expand. The last 12 months has seen the Jeddah-based company purchase 17 brand new cranes from various manufacturers, including Grove, Liebherr and Kobelco kit.

Ten of those machines, says Assafiri, are Grove rough terrain cranes with the company preferring the RT 765 E, which he explains was picked with the operator in mind.

“This 65 UST capacity RT crane shares the MEGAFORM boom found on GMK cranes, but adds the synchronised telescoping boom found on Grove RT cranes,” he says. “Four wheel multi-mode steering and the full vision cab optimise mobility and operator confidence on the jobsite.”

Complementing the RT, the company has taken two HS 895 HD, 200t Liebherr machines. The duty cycle crawler cranes (HS series) are specially designed for all kind of material handling jobs, he says.

BahrainYusuf Bin Ahmed Kanoo WLLP.O. Box 45, Manama KSAPhone: +973 17738200 / Fax: +973 17732828E-mail: [email protected]

DammamP.O. Box 37, Dammam 31411Phone: 03 857 1265 / Fax: 03 857 7139E-mail: [email protected]

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July 2012

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MIDDLE EAST 31

Interview

For a rental company like Saudi Cranes, the Liebherr’s offer enough flexibility to appeal to a wide selection of contractors.

He lists their attributes as that they can act in material loading with a grabber or a drag bucket, they are useful at demolition work, as well as dynamic soil compaction, and work with a diaphragm wall grabber and contribute to the all-important pipe -laying projects that currently dominate the Saudi market.

“These are the only two HS 895 HD cranes in the kingdom for the purpose of rental,” he adds.

The purchases have been rounded off by three more Liebherr machines, including the LR 1200 SX.

“The LR 1200 is the newest Liebherr crawler crane with outstanding lift capacities (220t /250t (US)) and very compact dimensions (3m transport width),” he says. “Due to their high level of mobility and excellent performance characteristics, possible applications range from common lifting and assembly tasks to more simple clamshell and dragline applications.”

Throw in a 250t CKE 2500 ll Kobelco Crawler Crane and a 100t LTM 1100 5.2 Liebherr mobile telescopic crane, he is looking at a more rounded rental fleet prepared for whatever the Saudi market and its thriving contractors can throw at his company.

Saudi Cranes’ main office is in Jeddah placing it inside one of the most critically important regions for Saudi’s development. While its cranes are servicing construction across the Kingdom, he is particularly enthused about the work close to headquarters.

“If you move down the road on the Red Sea coast you will reach ten year harbour projects, there’s King Abdullah Economic City, which was affected by the economic crisis but is now back on track, there’s

marine construction in that area too with the King Abdullah Sea Port,” he says. “Then moving down you’ve got Kingdom Tower which will be like Burj Khalifa. The whole city around it is going to be a community by itself.”

“Aside from this you have the Jeddah Airport which will have the Umrah pilgrimage throughout the year and also the Hajj season. The traffic is horrendous at that time!’’ He jokes. “But to facilitate this operation you need infrastructure and you need roads. On all levels you need development and to restructure the infrastructure all across Jeddah and all the way to Mekkah for the 3 million people that will be using the new airport.”

Almost without drawing a breath he describes the attitude of contractors: “so you have equipment? Bring me the equipment!”

On a rental basis, the company can supply cranes from 50t to 500t (three units). It’s a good spread for a fleet but it is in the area of operators that Assafiri suggests that it has made its most important investment. It may even be what separates the company from most of its competition. In a region that is traditionally reluctant to trust its operators, Saudi Cranes has instead decided to empower them. When on site it is they who must make the call on what is possible and safe to do.

If the operator refuses the request of a contractor on these grounds then Saudi Cranes will back them up, sometimes under extreme pressure.

“All our people have previous experience and have worked for other companies. Whether it’s by a government authority such as the TUB or other authorities, they have already been inspected,” he says. “Most of them would have been following Aramco’s high level of qualifications. The standards they follow are very strict. Not everyone can handle their qualifications.”

The region has a cosmopolitan representation when it comes down to its operator workforce, but Assafiri says that his company prefers to recruit from the Philippines.

“TO FACILITATE THIS OPERATION YOU NEED INFRASTRUCTURE AND YOU NEED ROADS.”

Saudi Cranes has grown quickly in the booming market, but

as a rental operation has been careful not to over-stretch

itself. It has also taken the bold step over enpowering it

operators. They decide if a lift could be too risky.

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Interview

“WE ARE OFFERED CHINESE ALTERNATIVES BUT I WILL WAIT.”

Interview

“They have proved that they are the best, committed and affordable,” he says.

Because of the enormous distances of the Kingdom, the company has to follow a remote operational basis. It is absolutely vital that the machines it owns are well maintained and cared for. He says that as a rental service the challenge is to ensure that he is not causing too many “headaches” or delays to projects for his clients.

“Once the crane is outside we are fully responsible for the crane, the servicing and the maintenance,” he explains. “In addition to our lifting engineers, we have operational supervisors that are making site visits to meet the clients and assist with lift capacities. Not all clients understand what the capacities should be.

“Often you might have a client who wants a 90t crane but you go there and you realise that with a 60t and a shorter or longer boom it might be better. I am trying to facilitate the client’s job and my job.”

This is one of the key differences between owning a rental fleet and trying to sell machinery. It is crucial that his fleet is managed properly.

He comments: “We are not trying to sell cranes – we are short of cranes. Once the client trusts you, he feels confident and he knows he’s dealing with experts.”

“Even Saudi Aramco is renting more these days. Clients do not want headaches or delays through maintenance and repair,” he says. “Projects like the airport or the Mekkah railway are 24/7 and on double shifts. I might get a call at 3 or 4 o’clock in the morning but you have to answer it and rectify a breakdown.”

Like with its operators, Saudi Cranes is prepared not to make any compromises with its maintenance

and repairs, choosing to wait for authorised spare parts even when alternatives might come faster.

“We are offered Chinese alternatives but I will wait even if it takes one month. You have to get what you are paying for. The market (unfortunately) is open for the fakes and the alternatives but we are having no Chinese.”

The Saudi government is funding much of the development in the Kingdom and, according to Assafiri, it has learnt the hard way that it needs to enforce stricter to controls on the quality of contractors and sub-contractors.

He adds: “You know in the past they had a lot of accidents. Standards are moving and they are getting higher. Whether its third party certification or a site inspector, consultant, machines have to go through three inspections.”

“If you have a breakdown and you go all the way down the chain, you are affecting the government,” he says. “Which you don’t want to do.”

While his crane service company’s fleet of 75 mobile cranes are busy serving the booming Saudi market, he stresses that the government remains interested in helping its young people to build their own futures via its Saudisation programme.

“If you are teaching a Saudi guy to become a crane operator the government will assist you and 50% of his salary,” he explained. “This is attractive plan for some big companies. It’s less cost in terms of visas, salaries and flights. You are investing in people and they are committed to you.

“Saudi guys want to know more. We have three, four in our offices, working in the mornings and studying in the evenings. They are really working hard. They know now is the time for them to grow, get the experience and find a job.”

QUALITY &STRENGTHDigging your way to successgg g y yDigging your way to successDigging your way to success

OTHER AREAS ( DEALERS)Tabuk Tel: +966 4 422 4490 / Fax: + 966 4 422 7225Unaizah Tel: + 966 6 364 4555 / Fax: + 966 6 364 5969Abha Tel: +966 7 227 0000 / Fax: +966 7 227 1944

Al KhobarP.O.Box: 2841, Al Khobar-31952, Saudi Arabia.Tel: + 966 3 8576769, Fax: +966 3 857 4681Email: [email protected]: www.saudidiesel.com.sa

BRANCHESRiyadh Tel: + 966 1 231 1931 / Fax: + 966 1 231 1031Jeddah Tel: + 966 2 659 8500 / Fax: +966 2 659 8600Jubail Tel / Fax: +966 3 363 4050

July 2012

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Special Interview

I’M DOING THIS FOR MY COUNTRYAs the first Emarati to compete in a global yacht race Adil Khalid has become a national hero in the UAE. He talks to CMME about his Olympic dream, life on-board the Volvo Ocean Race and risking life, limb and bad food.

July 2012

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“SUDDENLY THE MAST WENT DOWN. I THOUGHT WE’RE A 100 MILES OUT AND WE’RE GOING TO BREAK THIS BOAT.”

CMME: Adil, thank you for sparing your time as you prepare for the final leg of the race to Galway. So you’re sitting at home one day and you think I know, I’ll sail around the world - and now here we are in Lorient a few days from the finish. How does that happen?ADIL KHALID: Well I wanted to compete in the Olympics but Volvo came in and said you are the best sailor in the UAE, would you like to do it? And I said, ok, let me think about it and give me time! After that there were trials with 120 people applying to do it. I went in and there were testers and everything.

CMME: Take us through that trial process – what did they make you do? AK: We had to do the grinding test (the grinder is a two-man winch that lifts up the sails), raise the spinneker, defurring, show how to trim the sheets, wind the winch – fast.

CMME: Sounds exhausting! AK: They wanted someone who could learn very fast, teach him, so he could go straight away. CMME: Before entering the Volvo Ocean Race, what experience did you have? AK: I used to race 45m boats between Dubai and Muscat. We used to do it in small keel boats.

CMME: That sounds a long way away from circumnavigating the globe? AK: (Laughs) Yes, the distance seems like nothing now! We used to it in less than 24 hours.

CMME: What did your family say when you told them you were going to go around the world in the Volvo Ocean Race?AK: They were happy. They were like, do anything you want. It’s your life. My family have always supported me. My friends and my club supporters have supported me all year round. I have support from everyone. It’s good.

CMME: Presumably after being selected you had to go into team training?AK: We met in Abu Dhabi and trained on our old boat. The training was nice but it was hard and tough.

CMME: What did you find particularly hard during that training?AK: The food! I didn’t like the food in the beginning. It was like eat the cat food? No way – what am I doing?! But I had to do it. I had a thousand people behind me.

CMME: What’s life like on-board, I mean, does everybody get on?AK: Everybody gets on. Somtimes its hard work. You have to learn and they push you hard. You have to do this thing or not do this thing because maybe you’re going to fall down. I had to (learn) how to take care of myself. It can be tough, sometimes you cannot move [below] or shower. It’s terrible.

CMME: I understand that very early into the race the boat ran into trouble.

AK: We had started and were a hundred miles out. We had this sail change and suddenly ten minutes the mast went down. I thought we’re a 100 miles out and we’re going to break this boat. The longest trip I had done was five days and we were in this situation. I was wondering, what am I doing? But I looked at the flag [the UAE flag proudly mounted on the aft of the boat] and thought I must do this because I love my country.

CMME: How important is that flag to you after four hours sleep and the sea is rough? Does it keep you going?AK: When you wake up and see that flag, and you know the country is behind you, it keeps you going. You have to do it.

CMME: I got a sense of that when I saw the race in Abu Dhabi. Everyone was behind you and the boat.AK: There were so many people! So many kids now want to do it. Hopefully I will one day be able to go around the world with a local team. It’s a dream. I’ve met bin Zayed, Sheikh Makthoum and they told me, well done - you did it.

CMME: Can a team all from the UAE do this?AK: Maybe next year! We can have our boat, as all the boats we will have the same design [as part of

new rules being introduced to the race]. Sailing – anyone can do it with a year of training but the navigating is difficult. When you a put a team together you need a navigator. It is not easy, you have to learn, you have to travel. It can be hard.

CMME: Do you think you are a better sailor now then when you left?AK: Everyday you are learning. Every mistake you are learning. You can’t control every situation. You become more patient, learn how to chill out and relax. If you are skipper you have to control everything (although sometimes you need to cool him down!). This changes your life. It’s an amazing thing.

CMME: Are you going to have any friends or family waiting for you in Galway?AK: Yes everybody is so excited. My friends are coming. Abu Dhabi - oh god!

CMME: What happens next for you after you finish the race? AK: I want to develop sailing in Abu Dhabi. I want two, three people and do the Olympic Games in 2016. It’s my dream. I’ll bring people to the Olympic Games. I’ll do everything, train people, try to give them anything I didn’t get in my life I will give them to reach the Olympic level.

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Special Report

HOW THE OLYMPICS WAS BUILTCMME looks at how

the East End of London was transformed by the Olympics.

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We are used to seeing people build big in the Middle East,but even by the region’s standards, London 2012 has been a massive endeavour requiring the deployment of thousands of machines

From securing the land to build the Olympic Park after the bid was won in 2005, to completing the majority of construction in 2011, a remarkable transformation has taken place in east London, the heart of the London 2012 Games. This area of untapped potential has been developed into a spectacular urban park with world-class venues and new infrastructure links – and the potential for further regeneration for decades to come.

THE ‘BIG BUILD’The Olympic Delivery Authority, established in 2006, was responsible for building the main permanent venues and infrastructure on the Olympic Park, and the Olympic Village.

Every year from 2007, the ODA set out what it would achieve each year, to make it transparent and accountable for the significant public investment in the construction project.

The work started as soon as the ODA gained possession of the Olympic Park site in summer 2007.

Between then and summer 2008, work focused on preparing the site for construction. The ODA then began constructing the main venues and infrastructure – known as the ‘big build’.

This was completed on time and within budget by 27 July 2011 – one year ahead of the Olympic Games Opening Ceremony.

This left the London 2012 Organising Committee (LOCOG) a year to add the overlay – such as timing systems and dressing – that will transform the new facilities into venues ready for the Games.

Elsewhere in the country, sporting venues have been enhanced or built from scratch, providing world-class facilities for the Games and for the long-term benefit of local communities and elite athletes.

Permanent venues have only been constructed when there is a long-term use. If there was not, then temporary venues have been built. Existing landmark venues – such as Wimbledon and Lord’s Cricket Ground are also being used.

Elsewhere, landmark sites, including Horse Guards Parade and Greenwich Park, have been transformed, providing spectacular settings for the sporting events and showcasing the UK’s landmarks.

“Throughout the construction programme and planning the Games themselves, we have been thinking of tomorrow,” say the organisers. “Our aim is for the Games to leave an amazing legacy – for the Games to be remembered not only as a summer of fantastic sport, but as the catalyst for the regeneration of one of the most underdeveloped areas of the UK.”

In building the venues and staging the Games the bar was raised for both the construction industry and future large-scale events. In areas as diverse as sustainability, health and safety, equality and inclusion, and business, jobs and training we have set new standards to which others can now aspire.

Before construction on the 2.5 square kilometre site Olympic Park could begin, the ODA undertook the most extensive and sustainable clean-up operation ever seen in the UK.

More than 200 buildings across the Olympic Park site were demolished, with 98% of the materials, such as stone and bricks, reclaimed to be reused or recycled on site or elsewhere. Buildings with relatively new steel-framed structures were taken down by hand so that the materials could be reused. One building in the west of the Park was reclaimed and will form part of the new Energy Centre after the London 2012 Games.

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Special Report

Once the big build was completed on the Olympic Park, the final stage of preparing venues could get underway: installing overlay.

Overlay is all the temporary equipment and material needed to get venues ready to host an event – such as seating, tents, cabins, toilets, fencing, temporary power, flags, banner, PA systems, lighting and rigging. For London 2012, this includes more than 200,000 seats, enough tents to cover the whole of Hong Kong, and enough toilets to service the entire population of Malta.

The nature of overlay means it’s all temporary – London 2012 hires the equipment, it’s installed in venues, then is removed and goes back into the supplier’s stock after the Games. In some existing venues, London 2012 has

worked with venue managers to install permanent facilities that will benefit venues in the long term – for example, toilet facilities or fences. In these cases, the overlay has been purchased rather than hired.

The Olympic Park represents a particular challenge due to its scale and complexity – around 60-70 overlay projects are required there to get it ready.

After the Games, most of the overlay will be taken down and cleared away by the end of October 2012. But there are a number of venues – particularly on the Olympic Park – that will take longer to decommission. These will be completed by the end of the year. For venues such as Greenwich Park, which requires grass and ground reparations, works will be fully finished and the park returned to its former state by early 2013.

The majority of utility networks (water, gas, electricity and telecommunications) were disconnected, removed or diverted, ready for brand new infrastructure to be installed. This new network will be the backbone for the future regeneration of the area after the Games.

Around 1.4 million cubic metres of soil was excavated, cleaned where necessary and reused on the Olympic Park to create a new accessible Park, with shallow gradients.Before soil could be safely reused on site, samples were tested for levels of contamination at an on-site laboratory.

Five huge on-site soil washing machines washed and sieved out pollutants from the site’s industrial past, including petrol, oil, tar and heavy metals such as arsenic and lead.

The main venues and infrastructure for the London 2012 Games were constructed on time and within budget by July 2011, one year ahead of the Opening Ceremony of the Olympic Games.

While the Olympic Park site was being prepared, designs were being developed for each of the new venues. They needed to be an appropriate stage for the greatest sporting and cultural event on Earth, but they also needed to look beyond 2012.

Permanent venues were only built if there was a long-term use. Elsewhere, temporary venues have been built or existing venues transformed or enhanced for the Games. London 2012 also wanted to set an excellent standard of accessibility and be inclusive to all sections of society.

Before formal applications for the new venues on the Park were submitted to the planning authority, the Olympic Delivery Authority (ODA)carried out extensive consultation with the local community and groups representing specific themes, such as accessibility, sustainability, security, faith, and

A temporary challenge

“THE OLYMPIC GAMES LEAVE AN AMAZING LEGACY FOR THE REGENERATION OF ONE THE MOST UNDERDEVELOPED AREAS OF THE UK”

July 2012

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health and safety. On the Park, the first sporting venue to gain planning permission was the Olympic Stadium, on which construction started in May 2008, closely followed by the Aquatics Centre. However, off the Park, work building work had begun six months earlier on the improvements at Weymouth and Portland.

Over the following year, planning permission was obtained and construction started on all the other permanent sporting venues, as well as the Olympic Village and non-sporting venues.

After the first year of the big build, the foundations of the Olympic Stadium and Aquatics Centre were complete and underway on the other main venues. Work had started or was about to begin on the smaller venues in the Park and most of the plots of the Olympic Village. The improvements to Weymouth and Portland had been completed – the first sporting venue to be ready for use.

By the end of the second year the Olympic Park had been transformed, with the structures of all the sporting venues completed and the enhancements finished. The final year of the big build saw the construction of all the venues completed, with them handed over to the London 2012 Organising Committee (LOCOG) so they could hold test events and add the finishing touches to transform the facilities into venues ready to stage the Games.

Less than two years after it had started, the construction of the Velodrome was completed in

February 2011. It was the first sporting venue on the Olympic Park to be finished by the ODA and passed to LOCOG, 18 months ahead of the Games. By then, the new Energy Centre and Primary Substation on the Park had already been finished and were operational, supplying power to the venues being built across the Park and to the adjacent Westfield Stratford City shopping centre.

One by one, the sporting venues on the Olympic Park were handed over by the ODA to LOCOG, finishing with the Aquatics Centre on 27 July 2011, one year ahead of the Olympic Games Opening Ceremony, bringing the big build to a close and leaving London a legacy that will last for decades.

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CONSTRUCTION

MIDDLE EAST 43July 2012

Raw power

page 45 COMPACT THINKINGJCB continues to add to its range of compact excavators with the launch of the 8026CTS is a 2.7 tonne conventional tail swing excavator, which now sits alongside the JCB 8025 zero tail swing excavator.

Product Focus

EVERYTHING YOU NEED TO KNOW.

page 56KUWAIT KICKS ON The Kuwait market may not be the most exciting in the region but it has the virtue of being a stable one. CMME lists its biggest dealers.

page 52 SPACE LIFTHow Terex helped take the Space Shuttle Discovery to its final destination at the Smithsonian Institute.

page 44 HIGH CONCEPTAtlas Copco takes a glance into its crystal ball with its vision of the future of drilling and mining equipment, the ROCX range of concept machines.

page 49

A FORKED ROADCMME takes a multi-pronged approach to looking at the ups and downs of the forklift arena,

including some of the latest new products ideal for ports

and logistics work.

July 2012

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New Products

through ability to rebuild components and overall machine efficiency.

While it may lack the sophistications of its Western cousins, Caterpillar has equipped the machine with the field-proven Cat ADEM 4 (Advanced Digital Engine Management) electronic control module to optimise engine performance and fuel economy. Controlled multiple fuel injections during the combustion cycle provide consistent power in all operating situations.

The durable, and unique, torque divider sends 70 percent of engine power through a torque converter and 30 percent through a direct-drive shaft, ensuring maximum drive train efficiency and the torque multiplication to move heavy loads.

The torque divider was initially introduced in the late 1950’s by Caterpillar and has demonstrated a field proven durable and reliable connection between the engine and the transmission. The planetary powershift transmission features 3 speeds forward and reverse with heavy-duty, large-diameter, high-capacity oil-cooled discs for maximum performance and long-life durability. The differential steering system provides the operator with an intuitive single tiller bar control for all directional and speed selections.

The implement hydraulics feature a pilot control and load-sensing system with a variable displacement pump, providing efficiency and fuel economy to get the work done.

SPECIFICATIONSStd. Operating Weight:Net Power Rating: SU Blade Capacity:

WHY GET IT? SIMPLE BUT REFINED

ROBUST HANDLING

CAT UNLEASHES REGION-READY TRACTOR

US Manufacturer Caterpillar is to release its latest model in its stripped down Middle East-friendly R-series.

The Cat D7R track-type tractor packs a Cat C9 ACERT engine, with a net power rating of 174 kW (240 hp) at rated engine speed, meets standards in accord with China Stage II (GB 20891-2007), EPA Tier 2 and EU Stage II emissions regulations.

Caterpillar says the D7R features a massive mainframe, heavy-duty undercarriage, robust powershift transmission, differential steering, pilot-controlled hydraulics and efficient operator station.

The powerful-looking machine drips durability and Cat claims that low life time operating costs

A tlas Copco provides a glimpse of the future in surface drilling at the Intermat fair in Paris. At the Atlas Copco booth, the company displayed three drill rig models

that incorporate new thinking in design, system solutions and functionality.

The rigs, which bear the code names ROC Xone ROC Xtwo and ROC Xthree, are intended to show how Atlas Copco’s designers continuously push the boundaries of possibility.

Goran Popovski, Vice President, Marketing at Atlas Copco’s Surface Drilling division, says: “Our visionary development work is inspired by a deep understanding of our customers’ objectives and the challenges they face.”

ROCXone features extreme silencing systems and two independently operated booms; ROCXtwo has a separate wheel-positioning system for difficult terrain and flattens itself for loading and transport; while ROCXthree is extremely compact and fits into a standard 14-ft container. All three rigs use hydraulics for drilling only and electricity for all other functions.

It is the first time that the three concepts have been displayed together in public and are intended to serve as an inspiration for future drill rig design.

CONCEPT: ATLAS COPCO FUTURE GLIMPSE

July 2012

CONSTRUCTION

MIDDLE EAST 45

SPECIFICATIONSEngine: 4-cyl

Power: Lifting height:Max load capacity:

HAULOTTE ARTICULATING BIG IDEAS WHY GET IT? A TRUE INVENTORY ALL-ROUNDER

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SPECIFICATIONSOutreach:Total height:Rotation:Turntable:Generator

LIEBHERR TELESCOPIC HANDLER: NEW TL 441–13 WHY GET IT? ARGUABLY THE STRONGEST AND QUICKEST IN THE MARKET

SAFETY CONSCIOUS DESIGN

July 2012

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MIDDLE EAST46

New Products

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

THE NEXT POWERFUL MINI FROM JCB WHY GET IT?IMPROVEMENTS ACROSS THE BOARD

EXTRA GRUNT ADDS 11% TO SPEED

JCB is continuing to expand its range of mini

excavators, launching the brand new 8026CTS

mini excavator – a machine offering strength,

performance and durability in, what it calls, a

compact package.

The 8026CTS is a 2.7 tonne conventional tail

swing excavator, which now sits alongside the JCB

8025 zero tail swing excavator.

The new 8026 features: Short pitch tracks and

auto kick-down, with 11% increase in travel speed

New valve block with 17% longer spool stroke offers

increased precision control.

The 8026 is even more efficient than the 8025,

due to the lower power rating of the 3 cylinder 18kW,

24hp Perkins engine and it delivers an 8% efficiency

gain, driving a ‘Nachi’ variable displacement

hydraulic pump.

The 8026 has a lower centre of gravity and

the 1.22m tail swing around the new black

counterweight means it has outstanding lift capacity

and excellent stability, offering better productivity,

versatility and operator confidence.

A redesigned undercarriage offers greater stability

and durability. Better stability is achieved through

a slew turret that is now 35mm lower. A new top

roller replaces a metal skid plate, increasing the

durability of the new short pitch tracks, which have

been introduced to reduce: noise, vibration and to

improve ride quality.

SPECIFICATIONSEngine: 3-cyl Perkins engine Engine

Power: 18kW

Tail swing: 1.22m

Travel speed: 5 km/h

Dig depth: 2.8m

LIUGONG MACHINES ON A ROLL

LiuGong’s new line consists of

three tandem hydrostatic models

-- ranging from 2,450 kg to

2,850 kg – and a new 11,300 kg

hydrostatic single-drum machine.

LiuGong is fast becoming a

global leader in roller design

and manufacturing, and these

new machines demonstrate how

serious they are about the market.

The company’s approach is to

build highly efficient and reliable

machines that are easy to service

and own. As a result, LiuGong

now ranks as the second largest

exporter of rollers from China.

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BYRNE HANDLING RENTAL

Algeco, the leading global supplier of modular space and secure storage rental and sales solutions, is delighted to launch its unique Anti-Blast range of modular buildings in the Middle East. The explosion resistant buildings are designed specifically for hazardous environments, providing protection in areas of potential explosion, making them perfectly suited to the Middle East’s buoyant petrochemical and oil & gas sectors.

Already successful in Europe, the Anti-Blast range of enhanced modular buildings has been designed to specifically address the potential hazards encountered in petrochemical, energy and process industries and provide a significant degree of protection to

occupants in the event of an incident.

The buildings are constructed to rigorous standards and provide a target level of protection of 1% vulnerability. The range is generally supplied to withstand 100Mba free field overpressure with 200Mba reflective overpressure on any face, with the pulse duration at 100m sec. Buildings that can withstand up to 320Mba over pressure are also available.

Jim Muldoon, GCC General Manager at Algeco, said: “This is a significant launch for Algeco in the Middle East – it’s the first time that an anti-blast product to the market in this region which means we are now able to enter new markets with a wider range of tailored products. The launch is a significant strategic step.”

ALGECO’S ANTI-BLAST RANGE MAKES MIDDLE EAST DEBUT

POWER

Get in touchToll-Free 800 166 PEAX (7329) KSAA branch of Saudi Diesel Equipment Co. Ltd.www.peax.com [email protected]

YOUR PROJECTSWITH PEAX

July 2012

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The prime moversCMME looks at the forklift sector and asks what are the choice

picks for buyers and renters of the equipment?

Regional investment into ports and logistical hubs has raised the profile of the humble forklift in the market. Buyers have an enviable choice when it comes to equipment

both all used and new. The used market has proven to be particularly

strong as the combination of a higher demand in a difficult economic environment has made the importing of equipment a popular move for companies.

Paul de Jong, sales manager Middle East and Africa at Forkliftcenter, says that prices for reach stackers and empty container handlers are also likely to be affected by the extra capacities that are coming on-stream in the GCC. Forkliftcenter ships in equipment to the region, selling to traders and clients needing equipment from 1t material handlers

and upwards, he tells CMME. Some countries like the UAE have well-established logistics hubs like Jebel Ali, others like Qatar are in the process of building up their capacities. With imports outstripping exports, he says that some customers needs are better suited for empty container handlers rather than reach stackers.

“The last time I was in Doha I had three meetings with empty container depot (companies),” he explains.

“Here in the region, your DP Worlds, Abu Dhabi ports buy new equipment which they re-new every five years because containers are used. However there are also mainland/inland terminals that don’t have that intensity of use. For them to buy new doesn’t make sense. They have more time to maintain their equipment.”

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Sector Analysis

Used reach stackers can also be used in other applications he explains.

“I’ve seen them used in pipelaying. You can use the twist interlock on a reach stacker to do heavy lifting. If you have steel plates like you find on construction sites they can be used instead of cranes.

De Jong adds: “The advantage for some companies is that they be resold afterwards.”

One of the more intriguing moves in the new market in the region is the progress of forklift company Etali, which is looking to produce European standard equipment in KSA. While it is still early days in terms of a start up, co-founder David O’Callaghan hopes production could start late this year.

In terms of new equipment technology, manufacturers are increasingly evaluating how new technology can make operations more productive. New vehicles such as rolling ladders are now being used in some locations for picking.

More attention is also being given to ergonomics, which has resulted in new features that enhance operator comfort. Everything from the control handles and steering wheels, to the seat and flexible floorboards, and even the way operators step on and off the truck has been enhanced with ergonomic features.

New advancements in mast design have greatly improved visibility as well.

“BY LAUNCHING THESE NEW FORKLIFTS, WE AIM TO EDUCATE THE MARKET.”

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At last year’s Material Handling event in Linde dealer FAMCO launched the company’s Innovative Electronic Counterbalance E25 series of E-trucks into the market.

The range of trucks is powered by 80V system armed with high-torque lifting and driving motors using AC technology. These new forklifts are known for their productive output with high standards of safety and ergonomics for the logistics & 3 PLs, pharmaceutical, FMCG & foodstuff industries.

“By launching these new forklifts at Materials Handling Middle East, we aim to create market awareness about the advantages of our products to the wider market,” said David Dronfield, General Manager, Storage Handling Solutions at FAMCO before the event. “Additionally, we aim to educate the market on the solutions and professional consultancy we provide,” he added.

Its relationship with sector player Hyster makes Kanoo Machinery a major force in the Middle East,

including the key Saudi Arabian market. High oil prices and an increase in the cost of rubber is encouraging some port operators to rethink their operation to reduce their long term costs and improve their viability.

According to the equipment manufacturer, ports all over the world are adopting new Hyster technologies that significantly reduce the consumption of these important commodities.

“Hyster recently introduced fuel savings up to 15% for the life of a vehicle with new energy efficient technologies” Jan-Willem van den Brand, product strategy manager for Hyster Big Trucks said last year. “This is a massive saving for operators of high capacity forklift trucks and container handling fleets.”

Hyster achieved the savings by combining Cummins engine technology with performance optimisation developments such as cooling on demand, RPM management and alternate engine idle speed.

“Hyster has a reputation for designing tough and dependable trucks with a low cost of operation and we have now managed to make an unmistakable difference at the pumps” he commented.

According to van den Brand, the entire Hyster ‘Big Truck’ range over 16 tonnes is Tier 4i/Stage IIIB compliant and delivers massive financial savings.

A number of container ports in the Middle East, South Africa, Europe, US and Asia have also received the first batch of empty container handlers that incorporate Hyster tyre saving technology which reduces tyre wear up to a factor of three.

“Tyres on large container handlers are not only costly and time consuming to change, they produce a great deal of waste and the availability may not always be there” remarked van den Brand.

“With the rising price of rubber, it is not surprising that container ports are adopting this technology.”

In its simplest form a forklift is a powered piece of equipment designed to

lift and transport material

and are usually classified as

tow-motor, lift truck, industrial

truck, cherry picker and

others. However because of the

wide number of applications

possible with the vertical lift

configuration there are several

different types of forklifts.

The types or classes of forklifts are classified by their type of engine, work environment

(usually indoors, outdoors,

narrow aisle, smooth or rough

surfaces), the operator position

(whether they are sitting down or

standing), and the characteristics

of the equipment itself, such as

tyre-type, grades, etc.

There are seven recognised classes of forklifts starting with

Class 1 forklifts which use electric

motors and come with cushion

or pneumatic tyres. In turn this

class has four sub-categories:

Counterbalanced rider type,

stand up; three-wheel electric,

sit down; counterbalanced rider,

cushion tire sit down; counter

balanced rider, sit-down rider.

Class 2 forklifts are electric motor narrow aisle trucks with

solid tires. Class 3 forklifts

include electric hand trucks

or hand/rider trucks with

solid tires. Class 4 forklifts are

Internal Combustion Engine sit

down rider forklifts with cushion

tires and generally suitable for

indoor use on hard surfaces.

Class 5 forklifts are internal

combustion engine sit down

rider forklifts with pneumatic

tires. These are typically used

outdoors, on rough surfaces,

or significant inclines. Class 6

forklifts can either be electric

or Internal Combustion Engine

powered. These are ride on

units with the ability to tow at

least at least 1000 pounds. This

class is designed to tow cargo

rather than lift it. Class 7 forklifts

are rough terrain trucks with

pneumatic tires. Class 7 trucks

are almost exclusively powered

by diesel engines and are used

outdoors.

Forklifts that are used outside typically fall into Class 4 and used indoors in applications such

as manufacturing, warehousing,

bottling and trucking. They ride on

solid rubber tires called cushion

tires. They can be powered by

either Liquid Petroleum Gas

(LPG), gasoline, Diesel, or be dual

fuel. Dual fuel means that the

forklift is equipped with both LPG

and Gas fuel systems and can be

run on either one but not at the

same time. The engine powers all

the functions of the truck, drive

and hydraulics.

So, what do we mean by forklift?


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Cranes

End of the space raceMay saw the final journey of Space Shuttle Discovery to Washington’s Smithsonian Institute. For contractor J F Lomma it was the end of two years of careful planning.

For the Space Shuttle Discovery, it was a journey of nearly 150 million miles that ended at Washington Dulles International Airport. Discovery’s maiden voyage was

made on August 30, 1984, and it flew 39 successful missions into space over its 27-plus years of service. It was the most traveled and storied of all the space shuttles in NASA’s fleet.

On April 17, 2012 Discovery made its final voyage atop its Boeing 747 Shuttle Aircraft Carrier (SAC) with much fanfare from onlookers and local, national and international media. Reports focused on its final flight and place in space exploration history.

Battled and scorched from dozens of space missions, Discovery replaced the pristine Space Shuttle Enterprise at the Smithsonian Institution’s James S. McDonnell Space Hangar at the Steven F. Udvar-Hazy Center. Before being towed from Dulles to its final exhibit place, Discovery had to be hoisted

from its carrier and its landing gear lowered into place one final time.

How is the shuttle removed from its 747 SAC perch when it’s not at a space centre?

That is where the mainstream media’s coverage and fanfare ends, and the work for South Kearny, N.J.-based J. F. Lomma, Inc. and the Terex CC 2800-1 crawler crane begins.

Under the cover of night in the late evening hours of April 19, 2012 and slipping into the early morning hours of April 20, Lomma and the United Space Alliance work crews methodically hoisted the 196,400 (89,085 kg) shuttle off of the 747 SAC. “You cannot describe what it’s like to be part of space shuttle history,” says Frank Signorelli, crane and rigging manager for J. F. Lomma, Inc. Josh Barnett, field service representative for Terex Cranes, who was on site to support Lomma on the lift, added, “It was a one-of-a-kind experience.”

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The CC 2800-1 offers a maximum 660-ton (600-tonne) lift capacity at a 32.8-ft (10-m) radius and excellent lifting capacities throughout its entire working range. Its variable Superlift radius increases lifting capacities at further distances away from the crane’s base. A variety of boom configurations, including extensions, luffing jib, windmill kit, vessel lift, as well as many other modules are available to increase crane versatility.

Transportability is improved due to

the CC 2800-1’s open-boom design. These rectangular sections do not sit as high on the trailer as competitive boom designs, and no internal cross bracing allows smaller boom sections to be nested inside of larger sections to reduce the number of trailers required for transport.

Its crane control system features a touchscreen with intuitive pictorial displays for operating ease. The crane’s Quadro-Drive system improves stability and allows the base to move and spin under load.

Serving the New Jersey and New York area as well as markets from coast to coast and select international markets, Lomma has seen its share of historic work. This includes supplying crane and rigging services for construction work that continues today at the World Trade Center.

For Lomma, planning for this job started nearly two years ago when company officials first considered bidding for the job. NASA was very specific in what equipment was required for the work. “The bid called specifically for the Terex CC 2800-1 as the primary crane to do the pick as well as all of the other supporting cranes and equipment,” says Signorelli.

Part of the reason for this lies with NASA’s experience with this crane model for a similar pick decades ago. When the 747 SAC transports the space shuttle to a place other than a space center, there is a need for crane and rigging equipment. “These picks do not happen often, since NASA already has a shuttle removal method in place at each space center,” explains Barnett.

In the early 1990s, NASA had the rare need to hoist a shuttle from the 747 SAC, and a Terex legacy brand was selected for the job. “A Demag 2800 crawler crane was used in that project as the primary crane,” mentions Jim Creek, Terex Cranes’ senior product manager for crawler cranes – North America. “NASA has a history of successful lifts with this crane.”

Staples of the Terex crawler crane line, the CC2800-1 and its predecessor, the CC 2800, have worked on jobsites throughout the world for more than 20 years. The CC 2800-1 offers a 660-ton (600-tonne) capacity at a 32.8-ft (10-m) radius, more than enough to handle Discovery’s weight.

It features a maximum 196.9-ft (60-m) main boom length and a variable 100-ft (30.5-m) radius Superlift attachment to boost lift capacities. “Superlift offers an additional 4,000 to 600,000 lb (1,814 to 272,155 kg) of counterweight on the tray, which enables the crane to lift more weight further from the crane’s base,” says Creek.

Having the right experience and all the necessary equipment to complete the job, Lomma was awarded the shuttle project. It consisted of not one but two shuttle hoists. The first lifted the Space Shuttle Discovery off of the 747 SAC for the shuttle’s eventual spot at the Smithsonian. The second loaded the Space Shuttle Enterprise onto the carrier, so it could be flown to John F. Kennedy International Airport in New York.

It took Lomma nearly three months to prepare for and arrange the pick. “We had conference calls with NASA two times a week,” says Signorelli. “Communication was often and thorough between our company and NASA.”

Lomma purchased the CC 2800-1 ultimately used for the pick about two years ago. It was on rent with a customer in Quebec. Upon returning to the yard, the crane was rigged to make sure the right components were in place for the job. “We ran the crane in our yard,” says Signorelli. “The (IC-1) computer screen is extremely user friendly and self-explanatory. It’s not

The Terex CC 2800-1

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Cranes

“THIS IS SOMETHING I WAS ABLE TO TAKE MY KIDS TO SEE, AND A STORY THEY WILL TELL THEIR CHILDREN.”a complicated crane to operate.”

Upon completing the dry run at the yard, Lomma disassembled the crane and sent the components to the jobsite. Lomma’s crews spent three days at Dulles rigging the CC 2800-1 and a fourth day running through test lifts to make sure everything would go smoothly.

When it came time for the shuttle pick, there was very little left to question. “NASA had everything marked out on the ground – positioning for the Terex crane, the supporting crane and the 747,” explains Signorelli.

The CC 2800-1 crawler crane was equipped with a 177-ft (53.9-m) main boom and a 98-ft (29.9-m) Superlift mast. Lomma used 352,000 lb (159,665 kg) of main counterweight with no central ballasts. Superlift counterweight of 275,000 lb (124,738 kg) was added to the tray 50 ft (15.2 m) from the crane base. “Normally, a lift like this would require only 220,000 lb (99,790 kg) on the Superlift, but NASA’s additional safety factor required an extra 55,000 lb (24,948 kg) on the tray,” explains Barnett.

The additional safety requirement stemmed from the need for workers to be under the live load while unhooking the shuttle from its 747 SAC. “NASA required a 75% derate from the crane’s standard 85% chart, which is a big safety factor,” mentions Signorelli.

In the overnight hours, when airport activities were at a lull and winds were calm, Lomma and

United Space Alliance crews began the removal of the shuttle. The 747 SAC, supporting crane lifting the front of the shuttle and CC 2800-1 lifting the heavier back end were all positioned according to NASA’s layout.

NASA engineers used calculations from the CC 2800-1’s IC-1 controls to map out the final position of the crane. “They wanted the connection between the shuttle and our crane to be at 112 ft (34.1 m),” says Barnett, “and the actual distance in the field from the center of the crane to the hook was 111.9 ft (34.1 m). They were impressed with IC-1’s accuracy.”

Slowly and with precision the pick began with the weight shifting and then transferring to the cranes as the brackets were removed from the shuttle and carrier. After the shuttle hovered a safe distance over the carrier, a pushback tug backed it from underneath the shuttle. The shuttle was then lowered to within a few feet of the ground. Auxiliary hydraulic power lowered the shuttle’s landing gear for a final time before the cranes lowered it to the ground.

“The subtle movements offered by the CC 2800-1’s hydraulic system definitely helped with this pick,” says Barnett. “If the crews only needed 0.5 inch (12.7 mm) of movement, the crane was able to give it to them.”

A few days later, Discovery was towed to the Smithsonian and replaced the Space Shuttle Enterprise, which had been on display inside the James S. McDonnell Space Hangar since 2003. This prompted a second pick and final move of the Enterprise to its new home in New York.

Within a week after the Discovery pick, Lomma’s crews were back at Dulles, this time to reverse the process and load Enterprise on the 747 SAC. With one hoist project already completed, the second pick of the Enterprise went equally as smooth as the Discovery effort. “Enterprise was actually much lighter than Discovery, so we had no issues,” says Signorelli.

Enterprise, via the 747 SAC, took off from Dulles on April 27 for its final home in New York City and landed at JFK International Airport. At the same time, the CC 2800-1 crane components were derigged and loaded onto trucks and trailers heading for New York.

Once arriving at JFK, the crane equipment was rigged, tested and ready for another shuttle pick. Enterprise was loaded onto a special wheeled transport and moved into a hangar at JFK. It embarked on a three-day journey on the Hudson River in early June. Its final destination is the Intrepid Sea, Air and Space Museum in New York City.

“It’s indescribable to be a part of history,” comments Signorelli. “This is something I was able to take my kids to see, and a story they will tell their children.”


FIND ME A DEALER!The Kuwait market is quietly picking up with several projects in the pipeline or underway. CMME looks at its best dealers .

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Dealer Round-Up

KUWAIT

AL BAHAR GCC-wide

MAIN BRANDS: Caterpillar, KoneCranes, Hiab Cranes, Terex Cranes, Atlet, Landoll Trucks

www.albahar.com CONTACT: BAHRAIN +973 1770 5177; KUWAIT +965 2 491 9436; OMAN +968 24 509 000; QATAR +974 4600 222; UAE +971 2 555 4200

Mohamed Abdulrahman Al-Bahar, founded in 1937, is one of the leading business houses in the Gulf. It has two major divisions: the Machinery

Group and the General Trading Group. Through the Machinery Group, established in 1959, the company represents Caterpillar in Bahrain, Kuwait, Qatar, UAE and in Oman through an associate, Oasis Trading and Equipment Company. The head office is located in Sharjah, UAE. Caterpillar machinery and power systems are supplied by Al Bahar for a wide variety of applications including earthmoving, building and heavy construction, mining, road making, demolition, waste and scrap handling, electric power generation and marine propulsion. In addition, the company also supplies KoneCranes lift trucks, Hiab and Terex Cranes, Atlet warehouse trucks and Landoll narrow aisle trucks. With a staff of more than 1,500 people in 11 branches around the Gulf, the Machinery

Al BaharAl Zabin GroupBahrah Trading CompanyTIECO (Trading & Industrial Equipment Company)

Group of Al Bahar offers customised solutions for equipment and power systems requirements, including sales and rental, new and used.


AL ZABIN GROUP Kuwait

MAIN BRANDS: Volvo machinery

www.alzabinsons.com

CONTACT: +965 433 4721

In 1990, chairman Abdulaziz Faisal Al Zabin and managing partner Michael Haddad established Al Zabin Heavy Equipment (AHE). AHE is a pioneer in supplying high quality machinery and equipment for all sectors in the construction industry in Kuwait. The deep roots of the partners go back to the late 1950s, early 1960s, a relationship that works as a strong foundation for the success of AHE. The company claims to have one of the best facilities and a team of experienced equipment-, maintenance- and repair technicians. The company also says that its equipment care workshop is built especially to support unique after sales services and stocks “the right parts, at the right price, right now”.

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BAHRAH TRADING COMPANY Kuwait

MAIN BRANDS: Bobcat, Toyota Forklift, Sakai Compaction Equipment, Aisle Forklift, Ashok Leyland, Doosan Construction Equipment, Ingersoll Rand, Daewoo

www.bahrahtrading.com

CONTACT: +965 2 180 3803

Bahrah Trading Company was established in 1965 as a supplier of equipment to the oil industry. In 1976, Bahrah Trading was acquired by the Al Sayer Group and, today, supplies the whole spectrum of industries in Kuwait. Bahrah Trading claims its strong reputation in Kuwait has been built on superior products, a wide range of high quality industrial and transportation solutions and unparalleled market support. The company also says it has the largest industrial database that allows it to be leaders in fleet and industrial products, which include vans, pickups and trucks; heavy equipment for the construction industry including excavators, loaders, cranes, and skid steer

TIECO (TRADING & INDUSTRIAL EQUIPMENT COMPANY)

Kuwait

MAIN BRANDS: SDMO, Perkins, Massey Fergusson, Ingersoll Rand

www.tiecokuwait.com

CONTACT: + 965 481 9188

TIECO has an equipment hire section operating within the workshop for generating sets of all sizes, load bank for generator testing, air compressors of all sizes and welding machines. This is one of the most active sections in the workshop. The company was established in 1964 and is one of the largest importers and distributors of industrial equipment, construction equipment, tools, agro equipment and chemicals in Kuwait. According to the company, its annual sales turn over is $16m as averages for the last five years. With branches already in Dubai since 1974, the company is now planning to establish branches in Yemen, Qatar and Lebanon. Its fuel injection workshop is one of the biggest and well equipped and most active of its kind in Kuwait, with technicians well trained to repair and maintain most types of fuel injection pumps.

loaders and industrial equipment including forklift trucks, generators, compressors, and air plasma cutters. Bahrah Trading represents many world leading brands and has established dominant market shares in Kuwait, in many cases exceeding 50%, according to the company.


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Despite improving

safety awareness and

inspections, avoidable

accidents continue.

The Last Word

A rigged operation

The most important job of any crane operation is rigging of the load. Poor rigging may result in

personnel injury, property damage, or other serious hazards. Rigging is the

most time consuming of any crane operation and represents the single

most hazardous potential of crane operation.

The news that a Filipino crane operator was

killed while scaling to height was made public

as an incidental piece of news about four

deaths over one weekend in Dubai last month.

According to a report by authorities in the

emirate, the crane operator was killed after he

struck a high voltage power line. It was a tragic

and an entirely avoidable accident, and a reminder

that operating remains a hazardous occupation. It

also raises questions over the standard of training

and site management in the UAE.

According to a senior police official, the

accident occurred in the Al Lisaili area on the

outskirts of the city when the operator failed to

spot the power line.

Major General Engineer Mohammad Saif Al

Zafein, director of the Traffic Department, said

striking the wires sparked a number of fires

across the crane.

While civil defense vehicles were alerted to

the fire the operator succumbed to severe burns

while attempting to put out the fires using a fire

extinguisher and before they could rescue him.

Tragically it wasn’t the only crane-related

accident in Dubai last month. Two workers were

killed while observing repairs to a roof with the

help of a cradle. The victims were overseeing

maintenance work conducted from a

hanging cradle when it collapsed.

The Dubai Municipality

revealed that the company

carrying out repair work

at the camp in Al Quoz

Industrial Area 2 was doing

so without first acquiring

municipality permits.

Unlike the Al Liasaili

incident the response was

almost immediate.

“We might suspend the

company’s licence,” said Marwan

Al Mohammed, the head of the engineering

supervision section at the municipality’s

buildings department. “We would go to any level

to stop this kind of accidents. We are sending our

reports to the buildings inspection department.”

While the work may have been conducted

without the proper permission, both incidences

remind us of the importance that individuals

have in understanding the risks of using heavy

equipment, especially at height.

Crane accidents could be avoided if operators

get more training, one leading crane inspection

expert tells CMME.

Richard Colley, operations manager, Lifting

Equipment & NDT Divisions, at crane inspection

and asset quality specialist Velosi told CMME that

80-90% of crane accidents are operator-related. He

added a lack of training is often the main reason

why avoidable accidents happen in the region.

According to Colley, the problem of operators

not fully understanding the dangers relating to

using heavy-lift equipment is often exasperated

by plant and site managers who also have

insufficient knowledge of crane safety.

“There is a lack of knowledge from operators,”

he said. “They may only take a one-day

familiarisation course. But there is not enough

education all the way down the line.”

Despite changing regulation and growing

safety awareness, accidents continue to be

recorded in the UAE. The Abu Dhabi Health

Authority reported that there were 101 on-the-

job deaths in 2010. Abdul Aziz Zurub, Manager

- Health, Safety and Environment (HSE) Division

at the Abu Dhabi Municipality said last month

that he feared the number of reported accidents

and fatalities was higher than at believed due to

a lack of reliable data.

Last year, ENOC and the RTA announced that

they were entering a partnership with German

inspection outfit TUV SUD to carry out inspections

of around 10,000 cranes and construction vehicles

in Dubai. However what good is regulation if its

not abided or understood?

Safety, last?The death of an operator reminds us

that crane safety has a long way to go.

Documents

Construction Machinery Middle Eas