ITP MEDIA GROUP / BUSINESS MARCH 2023 • VOLUME 17, ISSUE 03 EXCESS POWER GENERATION COULD SPUR INDUSTRIAL ACTIVITY IN THE GCC REGION POWERING FUTURE JOBSCase studies Understand the planning and execution processes behind complex earthmoving, lifting and transport projects worldwide. Lists Shortlist your suppliers from the annual PMV Power Lists of the top OEMs, dealers and rental companies in the Middle East. KEEP UP WITH THE HEAVY EQUIPMENT AND COMMERCIAL VEHICLE INDUSTRIES Subscribe now for unlimited access to PMV Middle East plantmachineryvehicles.com AN ITP MEDIA GROUP PUBLICATION Discover more, new machines, new markets Special reports Explore potential markets and product applications through our country-focus and sector-focus reports. Insights Track technology trends to stay ahead of the curve. Expert advice Manage your operating costs with fleet management advice from experts.CONTENTS 03 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 26 INDUSTRY UPDATE Volvo to invest in battery pack production to support electrifi cation 40 TRUCKS Al Tayer Motors open fi rst Ford Trucks 3S facility in Dubai MARCH 2023 VOLUME 17 • ISSUE 03 10 Cover story GCC countries are making huge investments in ramping up power generation capacity 20 Strengthening human mobility Strengthening of public tranportation system is a new trend in the GCC 28 INSIGHT Eurpoe bus and truck makers seek optimum emission norms 42 Machinery Johnson Arabia lifsts massive steel columnEDITOR’S LETTER 04 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 Powering a sustainable future PO Box 500024, Dubai, UAE Tel: +971 4 444 3000 Web: www.itp.com Offices in Dubai, Abu Dhabi, London & Mumbai ITP MEDIA GROUP CEO Ali Akawi Managing Director Alex Reeve Deputy Managing Director Nicky Dawson EDITORIAL Group Editor Carla Sertin Editor Deepak Sharma deepak.sharma@itp.com +971 4 444 3617 ART Art Director Amjad Ayche Designer Tofiq Memon ADVERTISING Commercial Director Vinay Ravindran vinay.ravindran@itp.com +971 4 444 3155 Sales Manager Saloni Panchal saloni.panchal@itp.com +971 4 444 3205 PHOTOGRAPHY Videographers: Muhammad Kaleem Photographer: Marwan Elsayed Video Editor: Liju Cheruvathur ITP LIVE General Manager Ahmad Bashour ahmad.bashour@itp.com +971 4 444 3549 PRODUCTION & DISTRIBUTION Production Manager Denny Kollannoor Production Coordinator Manoj Mahadevan Image Editor Emmalyn Robles CIRCULATION Distribution Coordinator Avinash Pereira Circulation Executive Rajesh Pillai MARKETING Director of Awards & Marketing Daniel Fewtrell ITP GROUP CEO Ali Akawi CFO Toby Jay Spencer-Davies Subscribe online at www.itp.com/subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. Published by and © 2023 ITP MEDIA GROUP FZ-LLC. O ver the last two decades, GCC countries have made signifi cant progress in diversifying their economies. The region, which accounts for around 80% of the world’s known hydrocarbon reserves, has been trying hard to push industrialisation, mainly to generate employment for the growing population. The fi rst step in establishing the environment for the rapid expansion of industry in any area is the availability of reasonably priced and dependable energy. Because of the region’s unique climatic conditions, the power demand is even higher than in any other region in the world. Realising the importance of electricity, GCC nations started investing in power generation capacity around two decades ago, and are now harvesting low-hanging fruit. Initially, UAE and Saudi Arabia led the region’s industrialisation, thanks to policy measures to develop their non-oil sectors, however, others have also joined the process, and now it has become a GCC-wide movement. The availability of cheap long-term project fi nance under the IPP contractual model allows the GCC to attract the necessary private and foreign investments into power generation. Moreover, with the advancement of technology, the region is gradually moving towards becoming a global hub for renewable energy. Growing investments in power generation capacity also helped a number of ancillary industries expand their operations and made the conditions suitable for further industrialisation. Acknowledging the importance of power generation in pushing the agenda of diversifi cation in regional economies, we are dedicating this month’s issue to that sector. This edition also focuses on the issue of public transportation in the region. Authorities in the region are taking a closer look at public transport systems as part of their commitment to reducing emissions. Deepak Sharma Editor PMV Middle EastFAMCO LAUNCHES THE UAE’S FIRST EICHER TRUCK RANGE A l-Futtaim Auto and Machinery Company (FAMCO), part of the UAE-based Al-Futtaim Automotive and one of the leading dealers of heavy vehicles, commercial vehicles and machinery, announced the launched the all-new Eicher Pro 2000 series of light duty trucks in the country. Powering the logistics and intra- city distribution sector of the UAE, the successful launch reinforces the partnership between FAMCO and VE Commercial Vehicles (VECV), A Volvo Group and Eicher Motors Joint Venture, FAMCO wrote in a statement. According to Al-Futtaim grouo, Eicher Pro2000 series, with a host of next-gen features aimed at signifi cantly improving profi tability for owners through best-in- class fuel effi ciency and superior uptime. This new range of highly reliable trucks comes equipped with Smart features that help improve operating effi ciency as well as enhance driver safety and comfort. “This new range of trucks has been thoroughly tested to deliver best in class performance for customers in the UAE. The modern Eicher Pro2000 series delivers a power of up to 150HP and is designed to meet application-specifi c customer needs with variants of Eicher Pro2055XP, Pro2065XP, Pro2075XP, Pro2080XP, Pro2095XP and Pro2080XPT,” the UAE- based fi rm said. Speaking on the occasion Vinod Aggarwal, MD & CEO, VECV said, “In line with our vision of driving modernization in the CV industry, we are delighted to launch our new range of Eicher Pro2000 trucks. These trucks have been designed to deliver superior value proposition to customers in the region with host of smart technologies that enhance operating effi ciency and focus on driver comfort and safety.” With this introduction of Pro 2000 series, Eicher as a brand intends to play a role in the region’s development and would take care of the logistics and transportation needs of the market. This would further enhance the growing contribution of India and is in line with the ongoing eff ort of strengthening business relationships with the UAE, the company said. Accordin to Ramez Hamdan managing director of FAMCO, “As one of the industry’s leading names, FAMCO retains its forefront status by launching this fi rst-ever range from Eicher in the UAE and the region. A perfect fi t for the UAE market with a focus on minimising emissions and maximising performance. “As the industry becomes more geared towards smarter technologies that enable better productivity, cost-effi ciency, and payloads, the all-new Eicher trucks is perfectly positioned to cater to the diverse needs of our corporate and government customers.” Al-Futtaim Automotive, one of the main fi ve operating divisions within the UAE- based Al-Futtaim Group of companies, is a conglomerate of motoring-related businesses, franchising some of the world’s most-recognized automotive brands and services. Operating in 10 countries across the Middle East, Asia and Africa and empowered by around 9,000 associates, the UAE-headquartered Group’s services span across distribution of new and used vehicles, manufacturing, leasing, and aftersales. 5 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 TRANSPORTATION AND MOBILITYNESTE AND SCANIA TEST DIGITAL SOLUTION FOR RENAWABLE FUEL USASE IN TRUCKS F inland-based petrochemical major Neste and European automotive giant Scania are piloting a digital solution that enables easy follow-up and verifi cation of each truck's usage of renewable fuels. Combining data from Scania Fleet Management Portal enriched with Neste's fuel emission data, the solution provides Scania’s fl eet management customers with accurate, up-to-date data for their greenhouse gas emissions (GHG) reporting and sustainability communications. Customers can compare the climate impact of their use of Neste’s renewable fuels compared to fossil fuels and track their continuous progress towards climate targets. Neste and Scania are testing the digital solution together with logistic companies, including HAVI. The solution combines data regarding where a certain truck has been refueled and how much it has driven, with data about climate impact from the use of Neste MY Renewable DieselTM instead of fossil fuel. Until now, it has been a challenge to verify to what extent trucks really run on renewable fuels, as the very same trucks could also continue to run on fossil fuels. The digital solution now being tested hopes to solve this issue. Neste’s and Scania’s joint ambition is that in the future, the solution could serve all manufacturers and all types of renewable fuels. Commeting on the development, Mats Hultman, head of OEM partnerships at Neste, “The purpose of our unique collaboration is to test together with a fl eet manufacturer how to verify the use of renewable fuels and accurately report the climate impact.” He said, encouraged by the successful pilot in Finland, the company is now looking into expanding the solution to the new markets. According to Jacob Thärnå, head of sustainable transport at Scania, “We are sure that data transparency, connectivity and partnerships in the ecosystem are vital to accelerate this journey, where energy effi ciency, electrifi cation, renewable fuels and smart and safe transport are all part of the solution. In this collaboration our aim was to enable access to reliable, accurate and automated emissions calculations that could be used both in daily operations but also showcase the credibility of renewable fuels in the ecosystem,” Agreeing with him Massimo D’Alessandro, director sustainability & innovation, HAVI, said with much of the European delivery fl eet now powered by alternative fuels such as electrifi cation, biogas and renewable diesel, HAVI is delighted that this pioneering digitalisation initiative from Scania and Neste enables automatic reporting into the real GHG reductions achieved on behalf of our customers. 6 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 TRUCKINGIVECO BUS WINS TENDER FOR 120 ELECTRIC BUSES IN ITALY I veco Bus, a part of global automotive major Iveco Group, has been awarded a public tender for the supply of 120 E-WAY full electric city buses for Autoguidovie Group, the largest Italian privately owned local public transport company. These buses will be deployed in the various areas served by Autoguidovie, with deliveries beginning in the second half of 2023, IVECO wrote in a statement. The E-WAY bus is the result of Iveco Bus' twenty years of experience in developing and producing alternative drive vehicles: it off ers high comfort, with smooth, silent and vibration-free driving and acceleration, an excellent ratio between autonomy and passenger transport capacity, and the required power to ensure a full day of operation, the statement noted. Commenting on the development, Domenico Nucera, president of bus business unit, Iveco Group, said, “We are honored by the trust that customers throughout Europe are placing in our company and our vehicles. And we are glad to be contributing to the ongoing global evolution of public transport towards a zero-emission future. "This win is further confi rmation that our emission-free mobility solutions can satisfy the diff erent demands of various customers in terms of sustainability, reliability and effi ciency.” Stefano Rossi, CEO of Autoguidovie, said, "The purchase of electric buses represents the natural continuation for a company that already has one of the most modern and environmentally friendly fl eets in Italy and has always promoted public transport as a driver of growth for local communities, businesses and people in the country.” Iveco Bus is the mass-transit and premium bus and coach brand of Iveco Group, a company headquartered in Turin and listed on the Euronext Milan stock exchange. The Iveco group unit is poised to produce low-to-zero emission buses in a new site soon to be inaugurated in Foggia, Italy. IVECO BUS is one of the major players in the European passenger transport sector and is expanding globally, with a presence in over 40 countries. A complete range of urban and intercity buses, tourism coaches, and minibuses meet the needs of public and private operators, delivering high levels of quality and comfort. Autoguidovie is the largest Italian private company of Local Public Transport. With 1,406 employees, for a consolidated turnover of 149 million euros, Autoguidovie is a leader in road services in the fi eld of urban and suburban public transport. Today it is present directly or through subsidiaries, managed, investee companies, or in ATI, in Lombardy, Emilia Romagna, Veneto and Piedmont. With a fl eet of 1,230 buses, among the most modern and ecological in Italy, Autoguidovie manages a perimeter of 46 million bus-km. PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 BUSES 07HAULOTTE GROUP’S 2022 SALES UP 18% TO AROUND $650 MILLION F rench aerial work platform manufacturer, Haulotte Group has reported a revenue of $650 million (€609.7 million) in 2022, compared to € 495.8 million in 2021, an increase of over 18% between the two periods. According to the company, over the year, the global aerial work platform market confi rmed the clear rebound observed in 2021 and reached the highest level ever observed in 2022, driven by all geographical area In Europe, the group recorded overall sales growth of more than 12% compared to last year, penalised by the sharp decline in the Russian market. In Asia-Pacifi c, Haulotte achieved a solid sales performance, and an excellent fourth quarter, to fi nally post an increase in annual sales of more than 38% compared to 2021. In North America, the progress observed for several semesters in all its activities continued, enabling Haulotte to record annual sales growth of over 15%. The aerial work platform business accelerated strongly in the last quarter, achieving annual sales growth of more than 10%. In Latin America, in a well-oriented market in all countries, Haulotte posted a whopping 26% increase in cumulative sales, driven mainly by Brazil. In 2022, equipment sales increased by more than 19% and rental activity byover 14%, driven by the rebound of activity in Argentina. Service activities, which reached their highest level ever, grew by over 12%. Q4 RESULTS In a less buoyant macro-economic environment compared to the beginning of the year, the global aerial work platform market continued to show the same dynamism in the fourth quarter as in previous periods in the vast majority of markets. In this context, Haulotte achieved a revenue of € 180.6 million in Q4 2022, up by over 28% compared to the previous quarter and more than 24% in Q4 of 2021. OUTLOOK In this context of persistent pressure on the cost of components and on the supply chain, Haulotte confi rms that there was no improvement in its current operating margin in the second half of 2022 versus the fi rst semester. Driven by a historic order book and reduced supply tensions, Haulotte expects its sales to grow by more than 20% in 2023. 8 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 EQUIPMENTAN ITP MEDIA GROUP PUBLICATION Global Energy Future brings leading energy transition content, analysis, data, and interviews to light, asking industry leaders the key questions on the path to net zero. We help professionals make smarter business decisions in a shifting energy landscape. Make informed decisions GLOBALENERGYFUTURE.COMNext >