Capital Equipment News March 2018

For informed decision-making MARCH 2018

Maximum dependability across applications

EARTHMOVING EQUIPMENT: On an upward trajectory CONSTRUCTION VEHICLES: Meeting construction’s multiple needs COMMERCIAL VEHICLES: Gaining traction in tough terrain

HEAVY COMMERCIAL VEHICLES: GRAND ENTRANCE FOR AWARD- WINNING HEAVIES PAGE 12

MAXIMUM DEPENDABILITY ACROSS APPLICATIONS

CONSTRUCTION NEWS 40 Productivity failings blamed for project delays 41 Improved grading performance with CASE graders TRANSPORT & LOGISTICS NEWS 42 Technology advancements to fuel electric truck market 43 First DAF XF105 Super Space Cab in SA MINING NEWS 44 Contractor drills its way into African record books 45 Growing demand for Osborn apron feeders 46 Booyco delivers 5 000th PDS BAUMA REVIEW NEWS 48 Eazi Access exhibits large range of JLG equipment 50 Signs of industry recovery at bauma CONEXPO AFRICA COVER 4 Maximum dependability across applications EARTHMOVING EQUIPMENT 6 On an upward trajectory CONSTRUCTION VEHICLES 8 Meeting construction's multiple needs HEAVY COMMERCIAL VEHICLES 12 Grand entrance for award-winning heavies EARTHMOVING EQUIPMENT 16 Deal-centric BC Africa for Maximum Equipment BACKHOE LOADERS 20 New digger on the block COMMERCIAL VEHICLES 22 Gaining traction in tough terrain MEDIUM COMMERCIAL VEHICLES 26 Trucking for SMMEs CONTENTS Capital Equipment News is published monthly by Crown Publications Editor: Munesu Shoko capnews@crown.co.za Advertising manager: Elmarie Stonell elmaries@crown.co.za Design: Anoonashe Shumba Publisher: Karen Grant Deputy publisher: Wilhelm du Plessis Circulation: Karen Smith PO Box 140 Bedfordview 2008 Tel: (011) 622-4770 Fax: (011) 615-6108 www.crown.co.za Printed by Tandym Print The views expressed in this publication are not necessarily those of the editor or the publisher. FEATURES REGULARS Total circulation Q4 2017: 3 793

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EDITOR'S COMMENT

HAVE WE TURNED THE CORNER?

A part from the towering bins, buck- ets and booms – which are always my greatest shot of adrenaline at capital equipment exhibitions – bauma CONEXPO AFRICA 2018 provided the ideal platform to engage with as many players in the African equipment supply sector as possible, to learn about the status of the market at large. Despite the lower visitor turnout – with 14 167 of the expected 20 000 attending – the trade fair reflected a sense of renewed optimism and highlighted the opportunities in the industry, despite

recent economic challenges. Speaking at the official opening of the show, Petra Kaiser, senior director of International Exhibitions & Events at the Association of Equipment Manufacturers (AEM), highlighted that sub-Saharan Africa is just coming out of a challenging business cycle, but the mood is getting better across the region. Kaiser noted that US construction equipment suppliers had seen a 20% growth in sales into Africa in the first three quarters of 2017, compared with the same period in 2016, a key indicator that the region’s economy had turned the corner. She was also encouraged by the prospects of growth this year, noting that reports project that the sub-Saharan African construction equipment market will grow to a total value of US$88,6- billion this year, a figure expected to increase to US$95-1-billion next year. I have always maintained that the state of the supply chain is always an accurate measure of of the health of the larger sector it supports. In construction, yellow metal equipment sales are a true reflection of what is happening on the ground. For example, depressed machinery sales obviously mean that infrastructure spending is down, while a vibrant equipment industry indicates that construction has picked up. Following a tough period between 2014 and 2016, the World Bank notes that economic growth in sub-Saharan Africa is recovering, supported by modestly rising commodity prices, strengthening external demand and ending drought conditions in a number of countries. Growth in the region is forecast to pick up from 2,6% in 2017 to 3,2% in 2018. Contrary to the general sentiment that construction activity is slowing down in the region, Deloitte notes that investment in infrastructure development remains resilient, based on Africa’s understanding that infrastructure serves to foster competition, innovation and productivity.

According to Deloitte, a total of 286 construction projects valued at US$50- million and above had broken ground by 1 June 2016 across Africa. These have a collective value of US$324-billion. With 85 projects, southern Africa – which includes Angola, Botswana, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Zambia and Zimbabwe – has 29,7% of all projects in Africa. With a total of US$93,4-billion, the projects represent 28,9% in value of all projects on the continent. South Africa remains the powerhouse of the region, accounting for 48,2% of the projects in southern Africa, followed by Angola with 12,9%, and Mozambique and Zambia with 10,6% each. The uptick in construction and mining activity in South Africa is already starting to translate into increased business activity for the supply chain. Recent figures released by the Construction and Mining Equipment Suppliers’ Association (CONMESA) show that 5 614 new units were sold during 2017, representing a substantial 18,3% increase compared with 2016. The 2017 market rebound brought to an end a three-year downward cycle, during which the market shrunk from 7 250 units in 2013 to 4 747 in 2016. The figures for the four quarters of 2017 averaged approximately 1 400 units per quarter, which is a notable improvement over the 1 180 units per quarter averaged in 2016. Having spoken to several exhibitors at bauma CONEXPO AFRICA, I am optimistic that the positive mood will continue into 2018. There is general consensus that we have already reached the bottom end of the downward cycle in 2016, and things can only get better from now onwards. Machine deals clinched during the show, as you will see in several articles in this edition of Capital Equipment News , may be a reflection that equipment owners are ready to invest in new assets again.

Munesu Shoko – Editor

capnews@crown.co.za

@CapEquipNews

CAPITAL EQUIPMENT NEWS MARCH 2018 2

COVER STORY

MAXIMUM DEPENDABILITY ACROSS APPLICATIONS

With an array of features aimed at lower fuel consumption, higher productivity and better cycle times, the improved 51 t Doosan DX520LCA has a special design focus on increased uptime and lower total cost of ownership.

T he Doosan DX520LCA crawler excava- tor, designed for dependable operation in tough conditions, comes with advanced features for increased productivity and lower operational costs. The machine copes efficiently in diverse applications, including construction, pipe laying, mining and quarrying, mass excavation and general contracting. New features of the Doosan DX520LCA – which include increased traction force, greater bucket digging forces and in- creased swing torque – ensure improved performance and faster cycle times. “Other design advancements comprise the large, sturdy undercarriage and counter- weight which provide extra stability; a high performance mechanical injection engine for fuel efficiency; and advanced technology for optimum power manage- ment and easy maintenance,” explains Darrel Holton, MD, DISA Equipment (Pty) Limited, trading as Doosan, part of Invicta Holdings Limited. The DX520LCA is powered by a Doosan Tier II 6-cylinder air-to-air intercooler engine that delivers 238 kW (318 hp) @ 2 000 rpm, with sound fuel economy. A large fan size, with improved air, hydraulic oil and fuel filter efficiency, enhances cooling performance, thus reducing fuel consumption. The e-EPOS system (Electronic Power Optimising System) ensures economy and smoothness of operation, by providing a synchronised communication link between the engine’s electronic control unit and the hydraulic system, to ensure power is delivered exactly as required. Advantages of the new user-friendly e-POS system include ease of operation, availability of power through three select- able user modes for optimum efficiency under all conditions. This includes an

automatic auto-idle mode for maximum fuel efficiency. Regulation and precise control of the flow rate required by the machine is standard and a self-diagnosis function enables technical problems to be resolved quickly. Machine settings and maintenance data are clearly displayed on a new user-friendly LCD colour monitor. The machine comes with an advanced hydraulic circuit design which separates the oil flows for the travel and boom function to ensure precise and safe oper- ation when handling loads during travel. Circuits for the boom, arm and bucket are optimised for smooth control during combination work. Key capacities The DX520LCA is said to have the widest standard variable undercarriage in this class size – 3,9 m extended and 3,34 m retracted. The heavy-duty X-shaped undercarriage has an integrated track spring and idler, as well as a durable box section track frame and self-lubricating sealed links. All welded structures are designed to limit stresses. The hydraulic track adjuster has a shock absorbing tension mechanism. The series has a maximum digging force of 30,8 t and a side lifting capacity of 17,7 t at 6 m reach and 3 m height. Traction force has been improved with a drawbar pull of 37,6 t. More features The DX520LCA series has been designed for easy access to all components for quick maintenance procedures and to prevent contamination to the surrounding environment. New design features incorporate the latest ergonomics for improved safety and greater comfort, ensuring operators work

in conditions conducive to high produc- tivity. A spacious, all-weather sound-sup- pressed cab offers a clear, all-round view and effective air conditioning. An adjust- able seat, with an optional air suspension system, reduces vibrations and enhances comfort. The control panel is conveniently positioned for easy use and is simple to read. For improved safety, there are large handrails and a wide step with anti-slip plates, right and left rear view mirrors, a travel alarm and safety glass. Holton says Doosan construction equip- ment – which includes track, wheel and mini excavators, articulated dump trucks, as well as wheel loaders and various attachments – has been designed to cope efficiently and safely in Africa’s harsh operating conditions. “Doosan offers its extensive customer base a technical advisory, repair, mainte- nance and spare parts service, through a national network of branches and careful- ly selected distributors,” says Holton.

CAPITAL EQUIPMENT NEWS MARCH 2018 4

KEY TALKING POINTS

5% more fuel efficient than the previous model

Auto idle can save 90% fuel than in operation

Relief Cutoff technology saves between 20-30% of fuel consumption in heavy applications

Improved heavy duty boom and stick – 20% increased thickness on the side plate and 15% on the bottom

DISA to the fore DISA Equipment is part of the Capital Equipment Group (CEG) of Invicta Holdings Limited. DISA Equipment distributes and supports Doosan’s earthmoving equipment – excavators, wheel loaders and ADTs, as well as Everdigm impact hammers. The Doosan brand is known for dependable performance in Africa’s harsh operating conditions. Doosan earthmoving equipment maintains its strong position in a highly competitive sector, through an enviable reputation for environmentally-friendly, fuel efficient engines, a robust chas- sis structure, quality components and advanced features for easy serviceability that reduce downtime. Doosan’s commitment to meeting local market requirements and conditions includes the purpose designed A series built to maximise operational perfor- mance and productivity, while maintain- ing the low cost of ownership. Doosan machines can be seen hard at

work on various sites throughout South Africa, including industrial, construction, civil engineering, agricultural, forestry, mining and quarrying environments. The Korean build promise Doosan, which has been manufacturing heavy earthmoving equipment in South Korea for over 40 years, makes a significant investment in an ongoing development programme, using advanced technology to manufacture robust machines, with the latest features for optimum productivity, efficient running costs and low emissions. The use of durable, high performance ma- terials, combined with advanced computer assisted design techniques, including Finite Element Analysis (FEA), improves design features of every new series. All materials and components are tested under the most extreme conditions. Operator safety, precise control and com- fort are key to product advancement. The re-design of ergonomics has improved all-

round visibility for increased safety during operation and has also enhanced comfort for the operator, minimising fatigue. Easy access to all components, including the engine oil filter, radiators and grease in- lets, enables quick maintenance procedures and prevents contamination to the sur- rounding environment. Doosan earthmoving equipment is compatible with a wide range of attachments. Doosan’s stringent international quality certification gives the local market assurance of the finest machine designs and high- quality manufacturing standards for optimum productivity, cost efficient operation, as well as the reliability of every machine and safety and comfort for the operator. The Doosan team works closely with its broad customer base, to ensure product and parts availability and optimum performance, even in the toughest operating conditions. Field tests confirm that every machine adheres to stringent quality and safety standards and meets precise application requirements. b

CAPITAL EQUIPMENT NEWS MARCH 2018 5

BAUMA CONEXPO AFRICA REVIEW – EARTHMOVING EQUIPMENT

On an upward trajectory Key investments into aftermarket support capabilities have seen Ever Star Industries turn around the fortunes of the Shantui brand since taking over the local dealership some three years ago. Testimony to the success of the customer-centric approach is the recent global excellence award from Shantui, while eight machine sales during bauma CONEXPO AFRICA reflect the brand’s upward trajectory in southern Africa. By Munesu Shoko

H aving a good product is one thing, and being able to offer crucial backup and parts support once the particular product is operational in the field, is quite another. Based on a clear understanding of this notion, in 2014, Shantui abandoned its subsidiary approach in southern Africa and appointed Ever Star Industries (ESI), the local distributor of Powerstar trucks in the region, as its authorised dealer. The move allowed the brand to leverage ESI's strong 15-dealer network across the region, complemented

by the distributor’s financial strength to keep a sizeable inventory of parts to better service Shantui customers operating across the region. Three-and-a-half years later, the move has already paid strong dividends, according to Dirk Poley, national sales manager – Yellow Equipment at ESI. Speaking to Capital Equipment News at the recently-ended bauma CONEXPO AFRICA, Poley pointed out that a strong share of the local bulldozer market, growing customer satisfaction, a recent bronze award from Shantui in China

and increasing machine sales, are key indicators that Shantui is on an upward trajectory in the local market. Poley also reiterates that the recent success at bauma CONEXPO AFRICA 2018 reflects the hard work ESI has put in reviving the fortunes of the Chinese brand in the local market. “We concluded a total of eight deals during the show, and this reflects the level of confidence local southern African customers have in the brand,” says Poley. “A total of eight machines were sold at the show. These included three SD16 dozers and three

CAPITAL EQUIPMENT NEWS MARCH 2018 6 ITAL EQUIPMENT NEWS MARCH 2018

Dirk Poley, national sales manager – Shantui Yellow Equipment at Ever Star Industries “A total of eight machines were sold and these included three SD16 dozers and three SG21-3 graders sold to local South African customers, as well as two SD22W dozers purchased by a Democratic Republic of Congo customer.” invested significantly in this area. For example, one of the first things we did was to invest into a massive parts stockholding of about R80-million. We also have five chief technicians supporting our network of 15 well-supported dealerships,” says Poley. The interventions have steered the brand to a strong market standing. ESI was recently awarded a Global Bronze Medal for high sales at a Shantui dealership conference held in China. This was in recognition of the strides the local distributor has made in increasing sales and customer satisfaction in southern Africa. Positive outlook David Gao, chief operating officer Shantui at Ever Star Industries, is optimistic that the yellow metal equipment market will build on last year’s uptick to record higher growth this year. According to figures released by the Construction and Mining Equipment Suppliers’ Association (CONMESA), earthmoving and mining equipment sales moved strongly upwards during 2017 to break a three-year downward cycle that had gripped the industry since the second quarter of 2014. CONMESA figures show that 5 614 new units were sold during 2017, representing a healthy 18,3% increase over the 2016 results. Until then the decline in sales had seen the number of units sold dwindle from 7 250 units in 2013 to a low of 4 747 in 2016. A new political era in South Africa and Zimbabwe has ushered in a new wave of business confidence and Gao is optimistic that, together with a rebounding mining sector, this will have a positive impact on the overall growth of the equipment sector. “We have already seen that 2018 is signalling to be a year of significant growth for the industry. Since January this year we have already sold about 35 machines, which is a key reflector that there is an upward sales trend in the local market. Our success at bauma CONEXPO AFRICA is also testimony to the good times ahead. We are confident of better economic prospects in South Africa and southern Africa at large this year,” concludes Gao. b

QUICK TAKE

Since taking over the dealership of Shantui over three years ago, Everstar Industries has improved the aftermarket support of the brand

The company has an R80-million parts stockholding to support customers in southern Africa

The company recorded great success at bauma CONEXPO AFRICA 2018, selling eight Shantui machines and two Powerstar trucks

A recent bronze medal award from Shantui in China and increasing machine sales are indicators that Shantui is on an upward trajectory in the local market

SG21-3 graders sold to local South African customers, as well as two SD22W dozers sold to a customer from the Democratic Republic of Congo.”

600 units operating in the field. Despite a strong reputation, a lacklustre support structure didn’t do the brand any favours before ESI assumed the support duties in 2014. Poley admits that it took the Chinese OEMs some time to understand that aftermarket support is a key business driver in export markets, contrary to their approach in their Chinese domestic market. He reasons that local customers rank parts and service support high up the list of key influencers of their buying decisions. “When we took over the dealership, we already knew that the quality of the product was never a point of contention, but a lot needed to be done from an aftermarket point of view,” says Poley. “During the past three years, we have had a greater focus on boosting our aftermarket support structures for the brand. We have

Aftermarket is key Poley says when ESI took over the distribution and support duties of the

Shantui brand, the supplier had its work cut out. That the Shantui brand, especially its dozer range, was already rated highly in the local market, is no exaggeration. Shantui is regarded the bulldozer king in China, holding about 60% share of the domestic Chinese dozer market. Back in 2010, it went on to become the largest producer of bulldozers by volume on a global scale, making over 10 000 units that year, representing two in five crawler- type dozers produced in the world. The next largest producer by number of units was Caterpillar. At present, Shantui’s annual production capacity exceeds 15 000 dozers. In a 200-unit per year South African dozer market, Shantui holds between 5% and 10% share of the market. Despite the dominance of premium OEMs in this market segment, Shantui is the third biggest supplier of dozers by volume in South Africa, behind Caterpillar and Komatsu. Since its arrival in southern Africa back in 2010, the Chinese construction equipment maker has well over

CAPITAL EQUIPMENT NEWS MARCH 2018 7

BAUMA REVIEW – CONSTRUCTION VEHICLES

Scania South Africa used bauma CONEXPO AFRICA 2018 to showcase its wide range of vehicles that can cater for a broad range of construction applications.

Meeting construction’s multiple needs

Construction, by its nature, is very challenging. Managing the sequencing of the multi-disciplined applications, even in the smallest of projects, is no mean feat. Consequently, when it comes to construction vehicles, dealing with a supplier that can address any problem statement optimally and service construction vehicle needs across board is more critical than ever. With that in mind, Scania South Africa used bauma CONEXPO AFRICA 2018 to exhibit its wide application approach to construction with a range of vehicles that caters for the different needs of the market, writes Munesu Shoko.

M aximum uptime is the goal for every construction crew. It allows construction com- panies to execute their jobs within the often stringent timelines, giving them the ability to bid for the next job, take more work and earn more profit. A variety of construction vehicles running between applications is often a common scene on construction sites. However, managing an array of construction vehicle suppliers can often pull construction site managers’ attention away from their core duties on site. Therefore, single source alliances when it comes to the procurement of construction vehicles – where one firm services all the

application needs – can help construction firms gain a competitive and cost advantage. With its wide range of vehicles that can cater for a broad range of construction applications, Scania South Africa used bauma CONEXPO AFRICA – the continent’s largest trade fair for construction machinery, building material machines, mining machines and construction vehicles – to showcase its integrated and wide application approach to offer optimal solutions for construction companies. “In light of the economic comeback and a positive market feeling in southern Africa, bauma CONEXPO AFRICA

CAPITAL EQUIPMENT NEWS MARCH 2018 8

only about a third of its total 15-vehicle offering in this market segment. Anchored by the flagship Scania G460CB8x4EHZ twin-cylinder mining tipper, the line-up also included the Scania P410CB8x4MHZ brick carrier with a crane; the Scania P410CB8x4MHZ 15 m³ construction tipper; the Scania P360CB6x4EHZ 12 m³ semi- rock tipper; the Scania P360CB6x4EHZ 16 000 ℓ water tanker; and the Scania P310CB6x4MSZ 6 m³ drum mixer. Important sector According to Naude, the construction segment has always been an important sector for Scania, but was never a key focus area locally. However, since the reintroduction of a dedicated Construction Division in 2015 to specifically look after its construction vehicle range locally, Scania South Africa reports an impressive growth in this segment. “Since the reintroduction of the Scania Construction range back in 2015, we have been growing 50% year-on-year. We closed 2017 with a sizeable share of the local construction vehicle market, which we aim to double in 2018,” says Naude. While its wide product offering is obviously one of the success factors, Naude reasons that the ability to offer the best possible vehicle tailored to an individual customer’s needs is Scania’s key competitive edge. “Although sales numbers are the traditional measure of success, for us it’s more about customer satisfaction. It is that ability to know our customers’ businesses and operations that counts, and being able to provide a tailor-made solution to meet their specific operational needs,” he says. Lehtiö concurs that construction, by its very nature, is a demanding sector, and the flexibility to address the wide range of customer needs is a key requirement for an OEM to be regarded as a market leader in this market segment. “You must be able to meet the short delivery lead times because most of the construction work is project-based and customers ought to place their vehicle orders when they are awarded the contracts. They ought to place those orders with an expectation to take delivery of the vehicles immediately to start their jobs,” reasons Lehtiö. He adds that it is very important to have a strong network of bodybuilding partners who are ready to invest in readily-available vehicles, especially for those standard specifications such as tippers and concrete mixers. This allows the supplier to meet the often short and strict lead times for construction customers. “The OEM, together with its

QUICK TAKE

market share

Scania South Africa aims to double its construction market share in 2018

With a total of 15 construction vehicles on offer, Scania South Africa caters for a wide range of construction vehicle needs

At bauma CONEXPO AFRICA, Scania demonstrated its construction muscle with a total of six construction vehicles on display

Since the reintroduction of the Scania Construction range back in 2015, Scania South Africa has been growing 50% year-on- year in this segment

50%

50%

2015 REINTRODUCTION

2018

STILL GROWING

Raimo Lehtiö, MD of Scania South Africa

“We have a big application approach to cater for the different needs of the construction segment, all the way from tippers and concrete mixers, to brick and crane carriers.”

Theuns Naude, Segment Manager, Construction/Public and Special at Scania South Africa “In light of the economic comeback and a positive market feeling in southern Africa, bauma CONEXPO AFRICA presented a perfect platform for Scania South Africa to showcase our solution-based construction and mining vehicles.”

presented a perfect platform for Scania South Africa to showcase our solution- based construction and mining vehicles,” says Theuns Naude, Segment Manager, Construction/Public and Special at Scania South Africa. “We have a big application approach to cater for the different needs of the

construction segment, all the way from tippers and concrete mixers, to brick and crane carriers,” explains Raimo Lehtiö, MD of Scania South Africa. At bauma CONEXPO AFRICA, which took place at the Johannesburg Expo Centre from March 13 to 16, Scania exhibited a line-up of six vehicles, which represents

CAPITAL EQUIPMENT NEWS MARCH 2018 9

BAUMA REVIEW – CONSTRUCTION VEHICLES

“We are looking at partnering a couple of bodybuilders for our readily-made construction vehicles approach. Time is money in construction and we believe this approach will significantly help our customers with quick delivery times once the order is placed,” says Letio. Positive outlook With several key indicators pointing towards a favourable busin ess climate, including the new political developments in a number of southern African countries (South Africa, Zimbabwe and Angola), improved mining activity and renewed business confidence, Naude is optimistic that governments will make massive investments into infrastructure projects this year, and Scania is ready to offer its customers the solutions they need. “The outlook for construction looks positive in South Africa and southern Africa at large. Drought conditions have put a damper on construction projects in some regions, such as the Western Cape, but a greater focus on water infrastructure projects, such as dams, purifying plants and water reservoirs, has opened up a different leg of construction activity,” says Naude. “With an election coming up next year in South Africa, the government is also seemingly intending to spend a bit more money on infrastructure development projects. There is already talk of a new highway in Gauteng, not to mention the maintenance and upgrades to existing road infrastructure.” The Scania team recently travelled to Zimbabwe, and both Lehtiö and Naude are encouraged by the new political dispensation. The new government has identified infrastructure development as a key enabler for economic growth, and renewed efforts to kick-start the dualisation of the Beit Bridge-Harare highway is testimony to the key focus on implementing the planned construction projects. Lehtiö also reasons that due to the challenging economic conditions in the past few years, construction contractors have stalled their fleet replacement programmes, choosing to sweat existing assets. With a bit of positivity and better business confidence, buoyed by the projected steady flow of some

Scania offers a broad range of construction vehicles, including tippers, readymix concrete mixers and water tankers, as well as a wide offering of special vehicles such as brick carriers and mobile crane carriers.

Scania is looking at a complete vehicle approach, aimed at common industry specifications such as tippers and mixers.

network of bodybuilding partners, must have the flexibility and ability to invest in a standing inventory of ready vehicles,” says Lehtiö. Lehtiö argues that only OEMs with that sort of capability ought to be preferred suppliers in the construction industry. “Construction is a no-go area, especially when a company doesn’t have that sort of financial strength and resilience to build up the much-needed service structure for such an uptime- driven sector,” says Letio.

tankers, as well as a wide offering of special vehicles such as brick carriers and mobile crane carriers. Lehtiö says it is in the special applications where the OEM has embarked on creating strong partnerships with a network of established and professional body builders to be able to tailor the products to meet the specific needs of customers. Regarding its complete vehicle programme, which is still under consideration and aimed at those common specifications in the industry, such as tippers and mixers, Scania is looking at working with a network of bodybuilders eager to partner the OEM in this approach.

construction work, construction companies may be encouraged to embark on the much-needed fleet

replacement programmes this year. “The political side of things is very important for renewed business confidence, and this will likely play a major role in companies investing in new assets again,” concludes Lehtiö. b

Strong cooperation Scania offers a broad range of

construction vehicles, including tippers, readymix concrete mixers and water

CAPITAL EQUIPMENT NEWS MARCH 2018 10

BAUMA CONEXPO AFRICA REVIEW – HEAVY COMMERCIAL VEHICLES

IVECO’s new generation Eurocargo range has been launched in South Africa.

Grand entrance for award- winning heavies IVECO South Africa used bauma CONEXPO AFRICA 2018 to display its award-winning new generation Eurocargo heavy commercial vehicle range for the first time at a public event in South Africa. Key design focus areas of the new range are increased payload and driver comfort, writes Munesu Shoko.

H aving made its debut at a closed in-house function dubbed Iveco in Action late last year, the new generation of the IVECO Eurocargo range was showcased at a public event for the first time in the local market at bauma CONEXPO AFRICA. Available models for the local market comprise the ML 140 E22, the ML 160 E24, the ML 180 E28 freight carriers, the ML 180 E24K tipper, as well as the ML

150 E24WS 4x4, all powered by a Euro 3 engine. While the range is making its official South African debut, it has already made its mark on the international stage, having clinched the International Truck of the Year award in 2016. The International Truck of the Year award is judged by a group of 25 senior commercial vehicle journalists, representing 25 magazines throughout Europe. The award is presented to a truck

CAPITAL EQUIPMENT NEWS MARCH 2018 12

with the previous range,” explains Elvis Mutseura, product marketing manager at Iveco South Africa. “This means that from a legal payload capacity point of view, we have significantly increased the payloads simply by optimising the wheelbases.” For example, with an 8,5 m tautliner body, the larger ML 180 E28 4x2 model, with its 18 t GVM and a 6 210 mm wheelbase, can legally carry a payload of 8,5 t. The ML 160 E24 4x2 model, which was on display at bauma CONEXPO AFRICA, with its 16 t GVM and a 5 670 mm wheelbase, was carrying a 17 t Palfinger crane, with a 6,5 m body behind the cab, but it could still carry a 6,5 t payload. With a 6 m³ tipper body, the ML 180 E24 tipper can legally carry a payload of 7,5 t. “Increased payload is one of the most effective ways of improving freight efficiency. It allows trucks to carry more freight and reduce the number of trips, and ultimately the cost of running the truck through less fuel consumption and maintenance costs,” says Mutseura. There are various transmission options available for the new range, including manual, automated transmission (AMT) and full automatic. However, the full automatic transmission choice is only available for the ML 180 E28 freight carrier, while the rest are available in either manual or AMT. special attention to driver comfort, one of the key design focus areas for Iveco when it comes to its commercial vehicle ranges. “Iveco always has a special focus on the driver. Driver comfort has always been one of the OEM’s main engineering topics in its commercial vehicles,” explains Mutseura. There are eight cab derivatives, including a day cab and sleeper cab available with two roof heights to accommodate either one or two bunks, as well as a seven-seat crew cab (six, plus driver) catering for the municipal/fire sector. Inside, the brand new electro-welded fabric design seats have been upgraded and there is a new air-suspended driver’s seat, available with a fully adjustable backrest, height-adjustable seat belt and air conditioning. “There are also plenty of compartments and pockets for storing objects and documents. The central console has two 0,5-litre bottle holders, a 12 V plug and a compressed air line, in addition to special Driver comfort The new Eurocargo range also pays

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Iveco’s Eurocargo range was showcased at a public event for the first time in South Africa at bauma CONEXPO AFRICA

The range won the International Truck of the Year award in 2016

The new range comes in gross vehicle masses ranging from 14 t to 18 t for the local market

14 T TO 18 T

Payload capacities have been increased by optimising the wheelbases

Elvis Mutseura, product marketing manager at Iveco South Africa.

“Increased payload is one of the most effective ways of improving freight efficiency. It allows trucks to carry more freight and reduce the number of trips, and ultimately the cost of running the truck through less fuel consumption and maintenance costs.”

which has made the greatest contribution to road transport efficiency based on several main criteria, including technical innovation, comfort, safety, driveability, fuel economy, environmental footprint and total cost of ownership. Optimised wheelbases One of the main reasons the Eurocargo has made its name on the international scene has been because of the wide

number of variants. The new range is no exception, with gross vehicle masses (GVM) ranging from 10 t to 18 t, with a choice of 15 wheelbases. However in South Africa the range is available from 14 t to 18 t. The wheelbases range from 3 960 mm to 6 570 mm, catering for various body lengths and types. “We have optimised the wheelbases for the local market, which is a major improvement compared

CAPITAL EQUIPMENT NEWS MARCH 2018 13

BAUMA CONEXPO AFRICA REVIEW – HEAVY COMMERCIAL VEHICLES

compartments for cards and a hanging rail,” says Mutseura. The new Eurocargo is pre-configured for integration with most smartphones, tablets and GPS navigation systems as well as an optional Iveco UTP telematics box, which allows remote data collection and fleet management services. Systems can be structured to allow communication flow between driver and the back office and can include tools to improve fuel efficiency, such as the ‘driver coach’, which supports drivers in improving their performance in real time. Mutseura reiterates the significance of driver comfort in commercial vehicles, saying it contributes significantly to the health and wellness of drivers. He is of the view that in Africa, generally the truck buyer and the driver are two different people and in many instances little attention is paid to the need for driver comfort when buying decisions are made. “As a result of the long days on the road, exposed to many sources of vibration, truck drivers’ most complaints are typically a mixture of muscle and/or lower back pains. So, from the point of view of the driver, a further improvement of cabin comfort is clearly required. This is exactly what we have done with this range,” explains Mutseura. “The impact of driver discomfort in commercial vehicles is huge. It reduces performance levels, which impacts fuel consumption and consequently the total cost of running the vehicle.” better year economically in South Africa, with business confidence much higher than it has ever been for the past five years, Mutseura is cautiously optimistic about the growth of the truck market this year. He notes that the current year has started much slower than anticipated, and projections are that the market will only see some slight growth. “It has been a slow start to the year. Although the business confidence is seemingly much higher, the positive sentiment hasn’t translated into truck sales yet. However, we are optimistic that we will start to see real growth in the commercial vehicle market going into 2019,” concludes Mutseura. b Cautiously optimistic While key indicators point towards a

The Eurocargo won the International Truck of the Year award in 2016.

IVECO has significantly increased the payloads of the range by optimising the wheelbases.

The range made its first public appearance in the local market at the recently- ended bauma CONEXPO AFRICA.

CAPITAL EQUIPMENT NEWS MARCH 2018 14

BAUMA CONEXPO AFRICA REVIEW – EARTHMOVING EQUIPMENT

Hidromek and Maximum Equipment used the show to officially launch the upgraded Hidromek HMK 220 LC and the new 39 t HMK 370 LC HD crawler excavators.

Deal-centric BC Africa for Maximum Equipment

The recently-ended bauma CONEXPO AFRICA was a big success for Maximum Equipment and its principal, Hidromek. Not only did the Hidromek stand attract a strong visitor turnout, but several deals were also concluded during the show. By Munesu Shoko

W hen exhibiting at trade manufacturers (OEMs) and their dealers are mostly looking forward to interacting with their existing and potential customers, generate leads, parade their new offerings and, more importantly, promote their brands. For Hidromek and its local dealer, Maximum Equipment, the recently-ended bauma CONEXPO AFRICA – which took shows like buma CONEXPO AFRICA, original equipment

place at the Johannesburg Expo Centre in South Africa from March 13 to 16, 2018 – surpassed expectations with two Hidromek excavator sales and four TLB deals clinched during the show, according to Vaughan Ellis, MD of Maximum Equipment. Hidromek and Maximum Equipment used the show to officially launch the upgraded Hidromek HMK 220 LC and the new 39 t HMK 370 LC HD crawler excavators. The HMK 220 LC is said

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to push the 20 t class envelope with a special design focus on increased versatility through its ability to carry a full range of attachments, increased bucket capacity of 1,2 m³ and an industry-leading operating weight of 22 300 kg, said to be the heaviest in this class size. The HMK 370 LC HD, which comes in at 39 t of operating capacity and a 2,2 m bucket capacity, becomes the largest Hidromek excavator model currently supplied by Maximum Equipment in the local market. A range of new design features on the new Hidromek excavators appealed to two existing customers, with one purchasing the upgraded HMK 220 LC, while the other took delivery of the new 39 t HMK 370 LC HD. HMK 370 LC HD deal During the handover ceremony at the Hidromek stand at bauma CONEXPO AFRICA, Owen Nelson, owner of Kego Mining, took delivery of the HMK 370 LC HD. To be deployed in a mining application, the excavator will be fitted with Maximum Equipment’s VR40 Vibro Ripper attachment. The Maximum Vibro Ripper is said to be an alternative to a traditional hydraulic breaker, offering over three times the production compared with a conventional breaker. Key to Nelson’s buying decision was the new HMK 370 LC HD’s ability to work with a range of attachments. This was complemented by his preference for a single source alliance when it comes to the procurement of equipment, where one supplier services all the needs. Maximum Equipment ticked this box – apart from being the sole distributor of the Hidromek excavator range locally, the company also supplies a wide range of attachments. “The HMK 370 LC HD is a mining spec’d machine. It comes fully specified with hammer lines and an in-line filter as standard, making it the ultimate tool carrier,” says Ellis. “Apart from standard hammer lines and an in-line filter, the Hidromek machine is the only excavator on the market that comes with a total of nine spot lights, a reverse camera, factory-fitted beacon light and a cab guard, as standard. These features are often optional extras on competitive machines.” This is the second Hidromek excavator for Kego Mining, having taken delivery of its first unit, the HMK 300, from Maximum Equipment some two years ago. Fitted with a VR30 Maximum Vibro Ripper attachment, the machine has already clocked in excess of 5 000 hours, and counting.

Kego Mining took delivery of the new HMK 370 LC HD at bauma CONEXPO AFRICA. From left to right: Marco Fiumi; Vaughan Ellis (MD Maximum Equipment); Owen Nelson (Owner Kego Mining); Jacques Roux; and Jaco.

Vaughan Ellis, MD of Maximum Equipment

“The HM 102 B Alpha’s telescopic arm has a digging depth of up to 5,8 m, which is a big advantage in deep excavations and applications that call for a long reach.”

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TWO SOLD

Maximum Equipment sold two Hidromek excavators at bauma CONEXPO AFRICA

The two excavators were supplied with two different attachments from Maximum Equipment

Hidromek used the show to officially announce that Maximum Equipment has taken over the distribution of its backhoe loader range

FOUR SOLD

Maximum Equipment sold a total of four Hidromek TLBs during the show

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BAUMA CONEXPO AFRICA REVIEW – EARTHMOVING EQUIPMENT

Maximum Equipment has also taken over the distribution of the Hidromek backhoe loader range in the local market.

HMK 220 LC deal Wepex Geotechnical was the recipient of the new Hidromek HMK 220 LC at the show, the second Hidromek excavator the company has bought from Maximum Equipment. Servaas Fick, owner of Wepex Geotechnical, took delivery of his first machine – the HMK 300 – barely six months ago and has been impressed by the performance to date, which has prompted the decision to boost the fleet with a new HMK 220 LC. The HMK 300 was purchased together with a Fine Technology EX400 rock driller supplied locally by Maximum Equipment. It is being 220 LC will be fitted with a quick hitch system and a Komac TOR 26 hammer, also supplied locally by Maximum Equipment. It will be deployed at a housing development project, where it will break rock and load trucks in a bulk earthworks application. Just like its HMK 370 LC HD counterpart, the HMK 220 LC is fully spec’d with an array of standard features such as hammer lines, an in-line filter, cab guard and reverse camera. Another feature that sets this machine apart from the competition is that it comes with a 1,2 m³ bucket, compared with the usual 0,8-1 m³ synonymous with the 20 t excavator range. As part of Hidromek’s focus on used for drilling at a local mine. Wepex Geotechnical’s new HMK

CONEXPO AFRICA, with three units sold during the show. “The machine provides customers with a mini but reliable and strong machine even in the toughest conditions. A single HMK 62SS can tackle jobs that normally call for two different machines, such as a mini excavator and a mini loader,” says Ellis. The compact size of the machine, the ability to turn 360 degrees on its own axis, a banana boom on the backhoe, standard additional auxiliary hydraulic lines, make HMK 62SS ideal for urban construction sites and agricultural applications where space is often limited. Meanwhile, an HM 102 B Alpha backhoe loader was sold to a Bloemfontein farmer at the show. “The backhoe loader’s 6-in-1 loading bucket with a 1,1 m³ capacity provides advanced level of loading performance. Thanks to the bucket geometry that is designed carefully, effective use of bucket capacity is guaranteed,” explains Ellis. The ALPHA Series comes with greater weight distribution and wide stabilisers provide safer excavation in uneven terrain. The machine also comes with an additional hydraulic line as standard for hydraulic breaker and attachment use. “The HM 102 B Alpha’s telescopic arm has a digging depth of up to 5,8 m, which is a big advantage in deep excavations and applications that call for a long reach,” concludes Ellis. b

producing a reinforced heavy duty machine, the HMK 220 LC comes with an X-shape box type sub-frame said to offer greater resistance against bending forces and vibration stress because it homogeneously distributes the stress exposed on it. Meanwhile, the lower rollers are connected to the sub-frame by pentagon shape fittings, enhancing the strength of the frame and its lifetime, too. The standard long track undercarriage maximises the balance of the machine by providing a durable platform for the machine to work on. Two roller housings on each track keep track chains in straight direction and therefore prevent corrosion of lower rollers. Growing relationship bauma CONEXPO AFRICA also presented Hidromek and Maximum Equipment with a great platform to announce the expansion of their relationship. Apart from excavators, Maximum Equipment has also become the distributor of Hidromek’s range of backhoe loaders in the local market. The range was previously distributed by Hitachi Construction Machinery Southern Africa, and comprises the larger HMK 102B Alpha and the compact HMK 62SS mini-TLB. The new Hidromek HMK 62SS is said to have generated a lot of interest at bauma

CAPITAL EQUIPMENT NEWS MARCH 2018 18

BAUMA CONEXPO AFRICA REVIEW – BACKHOE LOADERS

Mahindra South Africa used bauma CONEXPO AFRICA to launch its EarthMaster backhoe loader into the local market.

Leveraging its strong automotive network in southern Africa, with over 40 000 vehicles sold since its inception in October 2004, Mahindra South Africa, a fully-owned subsidiary of Mahindra & Mahindra of India, has expanded into the local construction equipment market with the launch of its EarthMaster backhoe loader. It will challenge for a share of the entry-level tier of the highly- contested local backhoe loader market. By Munesu Shoko New digger on the block

M ahindra South Africa used bauma CONEXPO AFRICA 2018 to expand its product reach in the local market with the launch of its new backhoe loader, the EarthMaster. The backhoe loader, popularly known as the TLB in local circles, remains the most prominent piece of equipment in South Africa and southern Africa at large. Together with the skid-steer, the two solutions constitute almost half of the annual sales of a 5 000-6 000 unit construction equipment market. The TLB is regarded as the workhorse of the local industry and with its versatility, it’s a unit that affords small and upcoming contractors the much- needed stepping stone into the construction contracting business. However, it is also worthwhile to note that this is an overtraded market with close to 20 suppliers jostling for a share of the market and the dominance of some premium makers such as JCB and Caterpillar in this segment is just hard to beat. This is exacerbated by the shift towards other seemingly cost-effective solutions such as the compact excavator and the compact loader in some of the traditional applications where the TLB has always been regarded as the ultimate solution.

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The Mahindra EarthMaster backhoe loader made its official debut at bauma CONEXPO AFRICA

It is an entry-level backhoe suited for smaller and upcoming contractors

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cost-effective, reliable and rugged solution for this group of customers. At a time when cash is tight, the new EarthMaster is competitively priced and affordable than most of the premium offerings in this segment. Key features A key feature of the EarthMaster, according to Avinash Jha, Export & Business Planning manager at Mahindra & Mahindra in India, is its banana boom, which offers 7% more reach compared with the conventional straight boom stick. “The banana boom is designed with minimum welding points to increase strength and durability. As an individual component, the banana boom can take up to 60 kN force, making it one of the strongest booms in this segment,” says Jha. He adds that the banana shape gives the machine 15% more dig depth at 4,22 m compared with other backhoe loaders with the traditional straight boom. “The banana boom achieves a higher dig depth without compromising on the end forces and utilisation of the high pressure,” explains Jha. “The boom is designed to support hydraulic system pressures as high as 250 bars, which is one of the highest among competitive offerings in this class size.” Powered by a turbo-charged, intercooled Mahindra DITEC diesel engine delivering 80 hp, the EarthMaster is said to offer best- in-class fuel efficiency. Mahindra claims to be the biggest tractor supplier by volume in the world, and leveraging its tractor engine technology, the EarthMaster is said to consume only 4,5 ℓ of fuel per hour, representing a 10% saving compared with comparable machines in this class size. With better technology and design enhancements, Mahindra has been able to significantly lower lubricant refilling requirements with extended service intervals, thus reducing overall machine maintenance costs. The machine takes 50 ℓ of hydraulic oil, with 2 000-hour change intervals, while the rear axle oil (17,1 ℓ ) has a change interval of 1 500 hours. The 9,1 ℓ of front axle oil is after every 1 500 hours, while the engine oil (13 ℓ ) is changeable after every 500 hours and transmission oil (12 ℓ ) after every 1 000 hours. “The machine comes with a standard 1,1 m³ 6-in-1 loader bucket for increased versatility, with a 0,27 m³ backhoe bucket. It is designed to take up in excess of 16 attachments from Mahindra, including a dozer blade, coal bucket, jib crane, square hole bucket, forklift and a ditch cleaning bucket, to mention a few,” concludes Jha. b

A key feature of the EarthMaster is its banana boom, which offers 7% more reach compared with the conventional straight boom stick.

ever deeper into these communities as we accelerate our drive to offer value-for-money products and services to local customers,” says Bapat. Already exporting its vehicles into other regional countries such as Botswana, Zimbabwe, Zambia, Swaziland and Namibia, Mahindra South Africa has achieved significant growth since its establishment in October 2004, with about 40 000 vehicles already operating in the field. However, the OEM is fully aware that it may not be able to leverage its existing automotive footprint to support its construction equipment. “To be able to offer the right support to our backhoe loader customers, we are already at an advanced stage of discussions with one of the renowned companies in South Africa to take the distribution and support responsibilities of this range,” says Nair. A key competitive edge of the EarthMaster backhoe loader is that it is targeted at the entry-level tier of the local construction fraternity. With the South African government’s focus on growing small and upcoming construction contractors, especially supported by the rollout of smaller lots of construction projects, Nair says the EarthMaster offers a

Perfect timing Despite the overtraded nature of the market, Pavan Nair, GM New Business Development at Mahindra South Africa, is optimistic that the timing of the launch is perfect, with the market signalling strong growth prospects following an end to a three-year downward cycle in 2017. “South Africa, and several other southern African countries are set to enjoy a favourable economic spell this year, and we are convinced that this is the perfect time for us to explore new business units,” he says. Apart from seemingly favourable market conditions, Avinash Bapat, CFO at Mahindra South Africa, tells Capital Equipment News that the company’s knowledge of the market will also play a huge factor in the quick growth of its construction division. Mahindra SA is celebrating its 14 th year in South Africa and already has an established network of dealers in all nine provinces of the country, housed in comprehensive facilities that handle sales, service and spare parts. “With 60 dealerships, in cities and towns across southern Africa, Mahindra has a growing regional footprint that is moving

Mahindra South Africa is in negotiations to appoint a dealer for its construction range

A unique feature is its banana boom, which offers 7% more reach compared with the conventional straight boom stick

The EarthMaster is powered by the Mahindra DITEC diesel engine said to consume only 4,5 ℓ of fuel per hour, representing a 10% saving compared with comparable machines in this class size

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