< PreviousSTRENGTHENING HUMAN MOBILITY ENERGY-RICH GCC COUNTRIES ARE MAKING HUGE INVESTMENTS IN INCREASING MOBILITY AS A PART OF THEIR EFFORTS TO POSITION THE REGION AT THE FOREFRONT OF THE TRANSPORT REVOLUTION FEATURE PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 20 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 FEATURE 20FEATURE 21 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 FEATURE 21A fter a stage of heavy investments in large infrastructure projects, the Gulf Cooperation Council (GCC) cities are now beginning the optimisation phase of their mobility development strategy, a report by global banking giant HSBC says. According to the report, authorities have begun concentrating on enhancing public transport infrastructure throughout the area as part of government-driven initiatives in the GCC region to increase mobility between and within cities. Over the past few decades, GCC countries have been pumping billions of dollars into ramping up infrastructure, building new cities, and other development works, mainly as a part of their long-term eff orts to allay concerns related to the sustainability of hydrocarbon revenues among GCC economies. As a result of the signifi cant investments in ramping up logistics, industrial, residential, educational, and trade infrastructure across the region, new hubs for manufacturing, employment, entertainment, and trade, such as Sur, Sohar, and Salalah in Oman, Ruwais and Jebel Ali Freezone in the United Arab Emirates, and Dhahran and Jubail in Saudi Arabia have emerged. As these hubs have attracted talents from across the world to fulfi ll human resource shortages stemming from the rapid economic growth between 2000 to 2020. According to a report by the UAE-based newspaper The National, the GCC region has been witnessing one of the fastest-growing populations in the world. The GCC population is estimated to have reached 53.5 million in 2020, a 30% increase from 2000, and with the majority of these people living in the region’s cities. In a report on mobility in GCC cities by a global strategy consulting fi rm, Emetron, the GCC population has been booming, nearly doubling since 1990, partly due to high immigration, and is increasingly urban. According to the HSBC Bank report, authorities have begun concentrating on enhancing public transport infrastructure throughout the area as part of government-driven initiatives in the GCC region to increase the mobility between and within cities in the region. Both Saudi Arabia and the UAE, where populations have grown substantially over the last decade, are expected to invest nearly $100 billion in smart city projects through 2025, according to a Frost & Sullivan report that also predicts that other countries are also likely to follow suit by investing more on enhancing public mobility. WHY FOCUS ON PUBLIC MOBILITY As per Emerton, one of the key features of the GCC population is its high diversity of preferences and needs in terms of mobility. The population of the GCC is more diversifi ed than that of the majority of other areas of the world, and it may be divided into three main groups: immigrants from the working class, white-collar expats, and locals. High price sensitivity is seen among a sizable section of the local populace. As per Emerton, historically, the transportation sector in the region was based on the predominance of the personal car. In a culture close to the ‘American way of life’, the lack of mass transit infrastructure and the low oil prices make personal cars and ride-hailing the two ultra-dominant transport modes, except for Dubai, where the metro has been widely used since its inauguration in 2009. “The dominance of the personal car has led to very high levels of congestion, made worse by the fact that GCC cities still have less dense road networks than their Western or Asian counterparts and are often dominated by a few corridors that get easily congested at peak hours,” the Emerton report says. INVESTMENTS IN PUBLIC TRANSPORTS In addition to this massive investment eff ort by governments across the region, there has also been a clear strategic intent to position the GCC at the forefront of the transport revolution, the Emerton report says. Investment in public transport increased The GCC rail network may revolutionise the whole public tranport system in the region. FEATURE PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 22rapidly in the region with the removal of fuel subsidies in some GCC countries in early 2015. Removal of fuel subsidies completely alters the people’s perception of public transport, and the need for reliable and aff ordable transport was felt for the fi rst time in the region, where for a long the cost of a liter of fuel was even less than that of water. Governments throughout the region began increasing intercity and intracity buses as a fi rst step toward strengthening public transportation in the region. As the public transport sector across the UAE and other GCC countries continues to expand in response to ever-growing demand, the city bus segment in particular is proving one of the preferred areas for investment by regional transport authorities. Particularly during the past 10 years, the quality and networks of regional highways in GCC cities have improved dramatically, enabling cities to invest in off ering inhabitants and tourists fast, safe, and comfortable city bus services. Authorities across the region have been taking great strides to address the ever-growing transportation needs of their populations. Since 2015, when authorities decided to cut fuel subsidies, public transport investment has increasingly been a priority for local governments, with city bus transport being a key element to Removal of fuel subsidies catalysed public tranport demand in the GCC FEATURE 23 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023providing the region’s growing cities with a safe and effi cient transport solution for their residents and visitors. Current road projects across the UAE, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain, signify the region’s commitment to building the greatest network of roads ever available in the Middle East, with projects such as the $266.6 billion multimodal transportation system in Saudi Arabia and the Jahra Road Development Project in Kuwait currently underway. RAILWAY TO BOOST MOBILITY Apart from investing in buses to strengthen public transportation to boost mobility in the region, authorities are also taking steps to invest in the railway network in the region. Senior government offi cials and industry leaders maintain that governments in the region are gradually realizing the importance of developing surface transportation infrastructure to boost logistics sectors and diversify the economy away from oil. Among GCC countries, Saudi Arabia and the United Arab Emirates (UAE) have taken the lead in developing the rail infrastructure in the region. Both the countries have chalked out ambitious plans involving billions of dollars in investments to develop a rail network across the region, which will make it economical to move people and bulk materials across the region, thereby enabling the local industry to compete with other regions. With an estimated cost of over $240 bn, the rail project is set to be one of the largest contemporary cross-border rail networks in the world, linking key cities within each of the GCC nations of the United Arab Emirates, Saudi Arabia, Kuwait, Bahrain, Qatar, and Oman, into an integrated pan-Arab route of over 2,000 kilometres. CONCLUSION There has also been a clear shift in strategic intent to focus more on human mobility to position the GCC at the forefront of the transport revolution globally. The ambitious 2,100km GCC railway network has been in planning for some years now . Dubai has taken a lead in developing an effi cient public tranport system. FEATURE PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 24HITACHI ENERGY TO SUPPLY THE UAE’S FIRST CHARGING INFRASTRUCTURE FOR ELECTRIC TRUCK FLEETS H itachi Energy, a global technology leader, has won an order from Admiral Global DMCC, a Dubai regional headquartered e-mobility and energy solutions provider for industries, to supply the fi rst charging infrastructure for electric truck fl eets in the United Arab Emirates (UAE). The scalable, grid-to-plug fast-charging solution will make it possible for fl eets of commercial trucks in the middle-mile category to recharge simultaneously in a single location. The charging infrastructure, which is expected to be in operation by the end of 2023, will be used by multiple fl eet operators that lease electric trucks from the Mohamed Hareb Al Otaiba Group, one of UAE’s leading entities in transport and mobility solutions. Before this, only standalone chargers, which charge one or two vehicles at a time, was available in UAE. “We are delighted to help the UAE take a further step on its journey towards a sustainable transportation future by providing the region’s fi rst charging infrastructure for electric truck fl eets,” Niklas Persson, managing director of Hitachi Energy’s Grid Integration business said while adding, “Our pathbreaking Grid-eMotion Fleet infrastructure will enable fl eet operators to switch from diesel to long-range, low-carbon electric trucks.”Grid-eMotion Fleet off ers a unique range of benefi ts for fl eet operators of trucks or buses. This grid-code compliant and space-saving grid-to-plug solution provides fast charging to maximise the use of each vehicle. It can be installed in new and existing logistics centers and scaled fl exibly as the fl eet gets bigger and greener. Grid-eMotion Fleet off ers a seamless charging infrastructure that includes a robust and compact grid connection and multiple charging points, making it a well-suited solution for heavy-duty trucks requiring high- power charging. “Our long-standing relationship with Admiral Global DMCC is a testament to our commitment to working closely with our customers to address their unique needs and provide innovative solutions that promote a carbon-neutral and sustainable future,” Dr Mostafa AlGuezeri, managing director of Hitachi Energy for the UAE, Gulf, Near East, and Pakistan said while adding,“As we look forward to COP28 in Dubai, we remain committed to supporting the global community in its eff orts to combat climate change and achieve a net-zero future. We are committed to positively impacting today’s generations and those to come.” Global demand for electric trucks is growing rapidly, especially among companies that operate large fl eets of middle-mile and last-mile delivery vehicles. An enabling technology for the transition to cleaner electric trucks, has been fast, effi cient, and economical, with the building of charging infrastructure for multiple vehicles, at fl eet depots and delivery hubs. “Hitachi Energy’s Grid-eMotion Fleet will support the company’s partners with proven grid-to-plug charging infrastructure solutions that will encourage the use of cleaner energy in zero-emission transportation. The solution platform will add value to Admiral Energy’s portfolio of electric vehicle solutions, expanding the scope of advancing sustainability in the transportation industry in the UAE, regional and global markets,” said Venkat P, managing director of Admiral Global DMCC. The UAE aims to achieve net-zero emissions by 2050, in line with the Paris Agreement. Sustainable transportation is a key element of this ambition, which includes investing in electric mass transit systems and promoting the widespread adoption of electric cars and trucks. In November, the UAE will underscore its ambitions for a carbon-neutral world by hosting the 28th UN Climate Change Conference (COP28) in Dubai. 25 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 INFRASTRUCTURE VolvoCE is focusing more on electrifi cation of equipments. V olvo Construction Equipment (Volvo CE) has announced an investment into battery pack production at its excavator plant in Changwon, South Korea, signaling once again its ambition to drive industry transformation with sustainable solutions. According to the company, the Changwon plant in South Korea specialises in VOLVO CE INVESTS IN BATTERY PACK PRODUCTION AT EXCAVATOR PLANT the production of excavators and is the biggest excavator production site in Volvo CE The company believes that $7.8 million investment from Volvo Group will enable the plant to begin manufacturing a wide range of battery pack solutions for the Volvo Group “This is another important step forward towards the company’s Science Based Targets initiative and its ambitions to be fossil free, with 35% of machine sales to be electric by 2030,” Volvo Group said in a statement. With the SEK 80 million (around $7.8 million) investment from Volvo Group, a new production facility and equipment will be built at the Changwon plant in South Korea – which at around 1.1 million sq. m is the largest excavator production site in Volvo CE, producing around 55% of its total excavator volumes. The new facility at the Changwon plant will produce a wide range of common electric storage solutions (battery packs) for Volvo Group and become a core competence center for electric excavators. This will enable Volvo Group to off er more sustainable solutions to its APAC markets in a more fl exible, cost-eff ective and agile way and will include supply chain, manufacturing and logistics. Andy Knight, head of operations excavator and managing director of Volvo Group Korea, said, “As the largest plant in Volvo CE and the core site for excavator development and production, Changwon is at the forefront of CONSTRUCTION EQUIPMENT 26 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023 Changwon battery plant in South Korea. Volvo is leading manufacturer of construction equipments our shift to a sustainable future. “This investment is an important milestone in our electrifi cation roadmap and supports our recent investments in production facilities for electric excavators. Changwon is ideally located close to battery module supply partners and other key suppliers in South Korea to meet the needs of customers in the future. We are also home to a highly skilled and motivated workforce who are fully committed to meeting our future environmental targets.” The new production facility will be built inside the current component workshop at Changwon – without disruption to the existing operation. Once complete the facility will be approximately 2,500 sq. meters including assembly and logistics areas. The building work will begin in April 2023, with battery pack production expected to commence in June 2024. Coming soon after an announcement to invest in the production of electric wheel loaders at its plant in Arvika, Sweden, and electric haulers from the company’s production facility in Braås, Sweden, this is another sign that Volvo CE is committed to becoming completely fossil free by 2040 – in line with the Paris Agreement and as laid out in its Science Based Target goals. And it is taking another step forward in its ambition to transform the industry through electromobility and other more sustainable solutions. Volvo CE has already successfully introduced compact electric excavators to the global market with the ECR25 Electric, ECR18 Electric, EC18 Electric and the mid-size EC230 Electric excavators. Together with its compact electric wheel loaders, Volvo CE has one of the largest electric ranges on the market. Headquartered in Gothenburg, Volvo Construction Equipment has production facilities all over the world – in Sweden, France, Belgium, Germany, United Kingdom, USA, Brazil, India, China and Korea. Our many facilities around the globe produce a comprehensive range of wheel loaders, excavators, articulated haulers, soil and asphalt compactors, pavers, compact equipment and material handling equipment. Volvo CE a leading international manufacturer of premium construction equipment, and with over 14,000 employees we are one of the largest companies in the industry. CONSTRUCTION EQUIPMENT 27 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023R esponding to the European Commission’s proposal for new truck and bus CO2 standards , the European Automobile Manufacturers’ Association (ACEA) calls for increased CO2 targets to be matched with vastly improved infrastructure roll-out, as well as a strengthened incentive and carbon pricing framework. TRUCKS Commenting on the new proposed CO2 standards for commercial vehicles,, Martin Lundstedt, ACEA’s commercial vehicle board chairman and CEO of Volvo Group, said, “We are ready to deliver. However, reaching a reeduction of 45% already by 2030 is highly ambitious. It would require equally ambitious action by policymakers to ensure that the other players in the transport and logistics value chain deliver at the same time.” According to him, a CO2 reduction of 45% by 2030 means that more than 400,000 EUROPEAN AUTOMOBILE MANUFACTURERS’ ASSOCIATION CALL FOR CO2 TARGETS TO ALIGN WITH INFRASTRUCTURE ROLL-OUT zero-emission trucks would have to be on the road, and at least 100,000 new zero-emissions trucks registered annually. This would require over 50,000 publicly-accessible chargers suitable for trucks to be in operation within just seven years, of which some 35,000 should be high-performance chargers (megawatt charging system). It would additionally require some 700 hydrogen refi lling stations. Agreeing with him, Sigrid de Vries, ACEA’s director general, said, “Given that charging stations that are suited to the specifi c needs of trucks are almost completely missing today, the challenge ahead is enormous. We are concerned that only vehicle manufacturers will face high penalties if other stakeholders do not fulfi l their role in making this possible – especially given the low level of ambition that members states are showing on the Alternative Fuels Infrastructure Regulation (AFIR).” In this B2B market, transport operators Buses are the most widely-used form of public transport in the EU INSIGHT 28 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023must also be enabled to run zero-emission vehicles more profi tably than conventional diesel trucks. Lundstedt said, “If this does not happen rapidly, operators won’t buy our vehicles, and as a result we will simply not be able to meet the CO2 targets. At the end of the day, vehicle technology, be it battery-electric, fuel-cell electric or hydrogen-powered trucks, is only one part of the solution. To succeed with this transition of our industry, we urgently need coherent, joined-up policies.” BUSES Setting a 100% target for urban buses will put enormous pressure on all public transport operators to adjust their investment plans accordingly (and to ensure the necessary charging/refuelling infrastructure at depots). It also risks disruptive ‘pre-buy’ eff ects where public transport operators might rush to get the last conventionally-powered buses. LACK OF COORDINATION WITH EURO 7 ACEA is alarmed by the lack of coordination between today’s CO2 proposals and the Euro 7 proposal for heavy-duty vehicles published just a few months ago, which seeks to address tailpipe emissions from vehicles with internal combustion engines. Euro 7 should not divert attention away from the transition to climate neutrality, and should be consistent with the investment needed for CO2 standards, ACEA cautions. “While other world regions are incentivising their way towards zero-emission mobility, Europe is trying to regulate its way – and even that is not being done in a harmonised way,” Lundstedt said. ACEA will now analyse the proposal in more detail, and is ready to engage with all parties to make the transition to zero-emission road transport happen. The European Automobile Manufacturers’ Association (ACEA) represents the 14 major Europe-based car, van, truck and bus makers: BMW Group, DAF Trucks, Daimler Truck, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Iveco Group, Jaguar Land Rover, Mercedes-Benz, Renault Group, Toyota Motor Europe, Volkswagen Group, and Volvo Group. EURO 7 EMISSION NORMS Last year, European Commission released the long-expected Euro 7/VII proposal for new emission standards for on-road vehicles. According to report by web-based news portal,dieselnet, the Euro 7 rules will apply to both light-duty (cars and vans) and heavy-duty vehicles (trucks and buses) sold in the EU. The proposal merges the successor regulations to Euro 6 (Regulation (EC) 715/2007) and Euro VI (Regulation (EC) 595/2009) into one single act. The proposed date for the entry into force of the Euro 7 regulation is 1 July 2025 for new light-duty vehicles, and 1 July 2027 for new heavy-duty vehicles, the portal said in a report. The Euro 7 proposal includes a number of changes, including updated limits for pollutant emissions, broadened boundary conditions for RDE testing, extended emission durability periods, as well as fi rst-ever limits for particulate emissions from brakes and rules on microplastic emissions from tyres. For light-duty vehicles, the proposed emission limits are tightened to only a limited degree. The strictest of the existing Euro 6 limits were taken as a starting point and applied across all technologies. For example, NOx used to have a limit of 60 mg/km for gasoline cars, and 80 mg/km for diesel. Under the Euro 7 standards, that limit will be 60 mg/ km, regardless of the technology. For heavy-duty vehicles, the proposal introduces two sets of limits, one for hot and one for cold emissions, refl ecting a focus on the reduction of cold-start emissions. The limits are set lower than they were in the previous Euro VI heavy-duty standards. For instance, the Euro 7 NOx limits are 350 mg/kWh and 90 mg/kWh, cold and hot, respectively, compared to the Euro VI limit of 400 mg/kWh. Martin Lundstedt, ACEA’s commercial vehicle board chairman and CEO of Volvo Group Largely used by SMEs as business tools, vans power the European economy INSIGHT 29 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comMARCH 2023Next >