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Where our team of guest writers discuss what they think about the current trends and issues.

Francis Ho
Senior Associate, King & Spalding LLP

2010: A Modernising Odyssey*

Guest writer Francis Ho predicts what legislative developments we can expect to see in the United Arab Emirates over the year.
18 Jan 2010

Getting to grips with going green

A Roundtable with Michelin, Skyjack and Volvo

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MENA Infrastructure asks a panel of experts for their thoughts on environmental sustainability in the construction sector.


“When as much growth occurs as we have in this region, it is often difficult to co-ordinate the implementation of necessary equipment support infrastructure in parallel”
-Ken McDougall

THE PANEL:
Olivier Heyrendt
, Market Manager for Truck Tyres, Michelin
Ken McDougall, President, Skyjack
Jonas Gardetun, Regional Vice President, Volvo Construction Equipment

INFRA. Demand for construction machinery in the Middle East is predicted to increase by up to 20% over the next five years as the region forges ahead with an unprecedented level of development. How is your company capitalising on this growth?
Olivier Heyrendt.
Michelin has been participating in the development of construction in the Emirates for several years: Michelin sales in truck tyres have increased approximately 50% in the last four years, with in excess of 70% dedicated to construction usages.

Ken McDougall. We recognise the rapid, seemingly perpendicular growth taking place in this region and are committed to supporting it. Skyjack already has dedicated sales and service representatives servicing this region and is also collaborating with local sales and service providers to increase pre and post sales support.
 
Skyjack is also continually investing in product development to further expand our product offering. This includes plans for expanding our line of diesel powered boom lifts. We have also acquired two full lines of telehandler product lines giving us one of the industries widest offerings with models ranging in capacities from 6000lbs to 32,000lbs. All in addition to our already comprehensive line of scissor lifts.

Finally, Skyjack has strong relationships with large multinational rental companies who are also investigating and developing plans to expand into this region.

Jonas Gardetun. We are confident that we are well placed to maximise our market share, which is consistently growing year on year. We have a very well established distributor network throughout the Middle East and offer a high level of support, both in terms of training and spare parts, through our Regional Parts Distribution & Competence Development Centre in Dubai. We also plan to further increase our capability in the region by expanding the centre.

INFRA. Performance is obviously critical for any piece of construction equipment. Does the Middle East offer any particular or unique challenges in terms of its performance requirements? And how is your firm addressing these needs?
KM.
Two come to mind, extreme temperature ranges and the fact that there is a developing but small support infrastructure and knowledge base for this type of equipment.
 
Temperature and climatic conditions are obviously major factors for any type of equipment. Skyjack’s robust design philosophies ensure the equipment can predictably operate in these conditions. Standard features such as analogue-based controls and axle-based 4WD, in addition to optional equipment such as hydraulic oil coolers ensure optimum performance.
 
When as much growth occurs as we have in this region, it is often difficult to co-ordinate the implementation of necessary equipment support infrastructure in parallel. Skyjack is a global leader in the design and manufacture of aerial equipment a position earned as a result of providing robust, reliable and easy to service aerial lifts.
 
Acceptance of aerial lift equipment in new markets is also part of this challenge. End users as well as equipment owners must have an understanding of how this equipment works and the resulting benefits. Skyjack has a number of training programmes available and can even perform instructor training so that the trainee can become the trainer. Skyjack’s design philosophies result in equipment that is easy to service and uses as many common service and maintenance parts as possible.

JG. One of the main reasons for the success of Volvo Construction Equipment in the Middle East is its proven reliability and capability in some of the world’s most demanding operating conditions, particularly the extreme heat and high amount of dust – this results in minimised down time and enhanced overall productivity. The addition of the road machinery range also means that Volvo Construction Equipment now offers the most complete range.

OH. In the Gulf area, the conditions of use are among the most demanding in the world for truck tyres: this situation is explained by the extreme temperature and with the loads carried for the construction sites like The Palm or the Arabian Canal: the GVW of an articulated (tractor head plus semi trailer) is more than 100 tons in reality. Michelin has developed specific products, adapted to meet these challenges. For example the Cool Runner series, combines both specifically designed casing construction and rubber compounds.

But quality is nothing without economic efficiency for the users: Michelin guarantee the best CPK (cost per kilometer) if the truck tyres are properly maintained, especially including regrooving, which increases the grip potential of the tyre, by recreating brand new edges and a tread depth of up to 6 mm.

INFRA. There has also been a growing focus on sustainability and greener construction evident in the sector over the last few years. What impact has this trend had on the construction equipment market?
JG.
Clearly there is far greater awareness and concern towards the environmental impact of construction, both in terms of materials and equipment. Volvo has a long heritage of being at the forefront of sustainability and environmental friendliness. As one of the world’s biggest manufacturers of heavy commercial vehicles and construction equipment, we bear a clear responsibility for reducing the environmental impact of our products, and we are wholeheartedly committed to the continued development of technology that minimises any impact on the environment. Our long history of proactive environmental responsibility has also enabled us to strengthen both our own and our customers competitiveness, while contributing to positive societal development.

OH. Michelin have been engaged in sustainable development for many years. Michelin promotes the most respectful solutions for environment: retreading truck tyres with the Michelin Retreading Technologies solution, allows the tyre to cover in excess of 80% of the mileage potential of a new tyre. Retreading is an environmentally friendly solution. The natural resources required i.e. quantity of rubber for this operation are only 20 to 30% of new. Besides this raw material saving, retreading also drastically decreases the amount of tyres to be recycled at life end.

In Europe today Michelin are the leaders regarding the recycling of worn truck tyres. Michelin would like to replicate this position in the Gulf region and become a reference for environmental respect issues, in the area of truck tyre recycling.

KM. The green revolution has been driving up demand for green options or features on construction equipment. Skyjack offers fuel efficient engines, bio-degradable hydraulic oil, bio-diesel capabilities and exhaust gas purifiers and our equipment are 85% recyclable, produce less noise levels and their compact dimensions reduce transportation requirements and costs.
 
Greener construction now often means that the builder or contractor is more conscious of their construction project’s impact to the environment. This results in demand for green equipment. Skyjack offers some of the most fuel efficient rough terrain aerial work platforms available and a wide range of electric drive models are also available. As a manufacturer Skyjack is also committed to the environment and is one of the few manufactures in its industry that is ISO 14001 certified.
 
Skyjack is committed to developing green technologies and features through an advanced research and development programme.

How do you see technology within the construction industry driving the business in terms of environmental responsibility? What developments and improvements do you see relating to environmental considerations for reducing emissions, noise levels and carbon intensity?
OH. Michelin is really focusing the resources of its three Centres of Technology all around the world to participate in fuel saving and gas emissions reduction.

Since 1995 Michelin have promoted low rolling resistance tyres in the truck business. Michelin has just launched the third generation of energy tyres called energy saver green; the use of the energy fuel saving truck tyres range leads to three percent i.e. ~1 litre per 100 km fuel consumption decrease in comparison with traditional solutions for a three axle trailer.

It is true that those tyres are more long haulage use dedicated, but generally speaking Michelin is working hard to reduce the impact of tyres in fuel consumption. Regarding noise, Michelin already satisfies the rules at 76 dB and will be ready for 74 dB compliance after 2012.

KM. Changes in legislation globally require both engine manufacturers and OEM’s to develop equipment with lower emissions. Skyjack’s product development and advanced research and development teams are committed these projects that reduce the impact to the environment.

JG. As the construction industry focuses on environmental responsibility, there will clearly be pressure, in many cases backed up by legislation, for equipment and materials to meet ever more demanding ‘green’ criteria. Volvo is already well advanced in producing engines that significantly reduce emissions without any adverse effect on performance and developing machinery that operates at low noise levels.

We have also made considerable progress in hybrid solutions that combine diesel and electrical power for heavy vehicles, which can accelerate with the help of an electric engine, reducing fuel consumption, emissions and noise levels. Calculations indicate that fuel consumption can be reduced by as much as 35 percent – with an equivalent reduction in environmental impact.

The Volvo L220F Hybrid is our, and probably the industry’s, first commercially available wheel loader, with deliveries due to begin in late 2009. This first-generation machine will spearhead a sea change in the industry, highlighting to customers that buying hybrids offers much more than ‘just’ environmental benefits. The key advantages of the Volvo Hybrid system is that of much lower fuel costs combined with improved performance.

INFRA. What are the key challenges/opportunities on the horizon for manufacturers of construction equipment over the next 12-18 months?
KM.
Current global economic conditions are a challenge to all manufacturers. During these times it is important for the leading manufactures to act responsibly in order to sustain the industry that we supply. It is the strong that survive, which is another reason why Skyjack is a supplier of choice.

JG. As always, the challenge is to understand and meet the ever-evolving needs and demands of our customers, who are always looking to maximise productivity and operating efficiency. Our commitment is to continue to deliver a range of products that offer consistently higher efficiency, reduced fuel consumption and reduced impact on the environment while staying true to our core values of quality, safety and environmental care.

OH. It is difficult to predict how the economy in the Gulf, and more generally in the world will evolve. During these uncertain times, it becomes even more important to consider operational costs. Michelin will continue to develop its tyre management system in the Gulf Region, based on the principle of the sale of a service replacing the sale of a product. The market for this type of offer has to be developed, as transportation companies strive to focus resources on their core business.


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