CAPITAL EQUIPMENT NOV 2018

For informed decision-making NOVEMBER 2018

MOBILE CRANES: Gaining a lifting competitive edge

TRANSPORT SCANIA TIPS IN INCREASED EFFICIENCIES PAGE 12

COMPACT EXCAVATORS : Latest compact excavators on arrival lounges

LIFTING SAFETY : Unique fall protection challenges for mobile cranes

SANY SY500H DIGS IN

construction news 34 Cat Financial establishes Johannesburg office 35 HammeHead Portaburst to the rescue 36 Flexible financing solutions from Wacker Neuson mining news 37 Babcock and ZAC partnership a success story 38 New 740 GC expands Cat's articulated truck line-up Transport & Logistics NEWS 39 Commercial vehicle market bucks recession 40 Volvo Group invests in driver learnership programme cover 4 SANY SY500H digs in compact excavators 8 Latest compact excavators on arrival lounges transport 12 Scania tips in increased efficiencies contractor development 16 Partnerships for contractor development mobile cranes 20 Gaining a lifting competitive edge thought leadership 23 Five machine innovations promising to cut fuel emissions Lifting safety 24 Unique fall protection challenges for mobile cranes profile 28 Leading Bridgestone's renewal mission 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: Ano 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 Q2 2018: 4 271

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EDITOR'S COMMENT

TICKING THE RIGHT BOXES

H aving the right-sized fleet means estimating fleet equipment needed to meet production targets, since the main objective is to achieve the planned movement of ore within a set timeframe. To procure machinery is not a straightforward exercise; planning is essential to ensure that right equipment is obtained at the right time. To plan the acquisition you need to have consistent information about current equipment and market trends. It’s also important to have all the relevant info on performance rates, purchase price, total cost of ownership, ease of mobility and the necessary support from the supplier. This is especially true for the contract mining market. Productivity and efficiency of mining equipment are among the most

important factors that can contribute to their success, especially in tough trading conditions. Consequently, the recent trend in the global contract mining market is the immense preference for 100 t rigid haulers. Available industry figures show that the rigid hauler market is around 150-200 units per year in southern Africa. The 100 t market is by far the biggest seller, constituting about 50-60% of the region’s total rigid hauler market. This is not unique to southern Africa; the story is the same in the global market. The rigid hauler market is about 3 700 units per year in size globally, and the 100 t is by far the most popular range, followed by the 60 t range. The two sizes constitute in excess of 80% of the total market and they are truly a cut above the rest. It is in this context that we have seen several new rigid hauler launches in the 100 t size class this year. Both Volvo Construction Equipment (Volvo CE) and Liebherr have entered the 100 t rigid market for the first time, while Caterpillar also introduced its new 100 t unit recently. At the beginning of this year, Volvo CE announced its entrance into the rigid hauler market with its own Volvo brand of rigid haulers in the second quarter of 2018. The range comprises the 45-t R45D, 60-t R60D, 72-t R70D and the flagship 100-t R100E. The star of the line-up is the R100E, and it is for this reason that the model is the first to arrive in South Africa following Babcock’s recent official launch of the first unit last month. Elsewhere, following the completion of field operation trials in Austria, the first Liebherr T236 rigid hauler has arrived in South Africa. This is part of the pre-series units being rolled out to selected operations across the world to further validate the truck’s capabilities before its commercial launch. Liebherr Africa is entering the 100 t segment for the first time, armed with a model said to be the first diesel-electric truck in this size class. Barloworld Equipment, Caterpillar dealer in southern Africa, also launched

its Cat 777E recently. The new model has been well received by the local market as the successor to the respected Cat 777D model. The first three Cat 777E units in Africa went to Exxaro Coal’s Leeuwpan mine in Mpumalanga, in March 2017, and by May this year, more than 70 units had been sold to customers across southern Africa. Among these orders, it’s worthwhile noting that contract mining company, Liviero Mining purchased 16 x 777Es from Barloworld Equipment in 2017 and the units have been deployed on various coal mines in Mpumalanga. Barloworld expects Liviero to start replacing its older 777D models with the new 777E in the near future. The new 100 t offerings arrive at an opportune time for these suppliers and their principals. Industry figures show that the rigid hauler market in South Africa was in the 150-unit region back in 2015, and due to tough market conditions, the market lost half of its value in 2016, which was a very tough year for the local capital equipment sector at large. Last year, the market made a strong comeback to reach the 2015 levels, and the upward trend has continued into 2018. The market is currently being driven by the contract mining fraternity. If you look at the type of equipment this group of customers requires currently, it’s mainly 100 t excavators and 100 t dump trucks. Why 100 t? This size of hauler ticks all the right boxes for contract miners, but more importantly the mobility they require, given that their contracts are limited to 3-5 years at the moment. In mining, an important element to successfully complete projects is to ensure that you have the right-sized equipment for the job at hand. Planning of mining equipment is no frivolous task. At a strategic level, when looking to size an equipment fleet for surface mining projects, you need to consider several factors relating to equipment, including acquisition costs, operating costs, productivity, physical availability, utilisation and the condition of each mine. b

Munesu Shoko – Editor

capnews@crown.co.za

@CapEquipNews

CAPITAL EQUIPMENT NEWS NOVEMBER 2018 2

COVER STORY

Equipped with a 2,5 m³ bucket, it offers bucket digging force and arm digging force of 287 kN and 245 kN, respectively.

In a deal worth about R12-million, Goscor Earth Moving – the exclusive dealer for SANY’s range of earthmoving equipment in South Africa – has delivered the first three units of the new SANY SY500H mining excavator to mining and beneficiation company, Africa Mining Group, writes Munesu Shoko . SANY SY500H DIGS IN

G oscor Earth Moving (GEM) recently introduced the new 50-tonne SY500H excavator in the local market. It is the second-biggest model in SANY’s large excavator line-up, and forms part of the Chinese OEM’s mining range, which also comprises the 36-t SY365H and the recently-launched 75-t SY750H. Leading mining and beneficiation company, Africa Mining Group (AMG), has since taken delivery of the first three units to dig onto our shores. Scott Yuan, COO at AMG, tells Capital Equipment News that the units have already been deployed at the company’s Kathu, Northern Cape mining project. Joining AMG’s existing fleet of 10 excavators, 10 dump trucks and six front- end loaders, the three SY500H excavators will be deployed for the expansion of the existing mining area in order to increase monthly production. The R12-million deal was initiated in mid-August, and the machines were already on site by the end of September. The three units were ordered with no major special requirements, apart from the fact that they needed to be mine safety- compliant – reflective tape, fire extinguishers, safety grid over front window and orange beacon light.

Key considerations AMG is a mining and beneficiation company that focuses on investing,

level in the local market. Since GEM took over the distribution of SANY earthmoving equipment in South Africa, the range has gained significant traction in the local mining, construction and road-building industries. Yuan, who is of Chinese origin, but grew up in South Africa, is a mechanical engineer who understands the significance of a reliable and efficient piece of machine in achieving operational success, especially in tough mining conditions. “We did our research on the different brands available in the market and we found that the SANY machine comes at a very reasonable price, yet the performance is very competitive,” he says. Rudy Burger, GEM's branch manager at Kathu, says the SANY SY500H sets new levels of efficiency with its low running costs, facilitated by its affordable price, parts and increased fuel efficiency. Powered by an Isuzu engine delivering rated power of 300 kW @ 1 800 rpm, it has an operating weight of 49 500 kg. Equipped with a 2,5 m³ bucket, it offers bucket digging force and arm digging force of 287 kN and 245 kN, respectively. Through SANY’s independently-developed engine pump valve control technology, the average working efficiency of the excavator has increased by 7,5%. The machine also boasts a proprietary

prospecting, excavating and, above all, trading in Africa. “Our specialty is to implement efficient and effective mining and beneficiation techniques to ensure we extract maximum value out of the product; converting unsaleable low grade ore to a saleable product,” explains Yuan. The success of every mechanised mining project hinges on reliable and efficient equipment. Poor equipment efficiency (availability, utilisation, productivity and quality) can endanger the success of any project. With that in mind, AMG conducted its research before making its buying decision. At the top of its considerations were a number of operational parameters, but more importantly, efficiency, productivity, durability and reliability of service from the supplier. A high configuration digging machine, the SANY SY500H ticked all the right boxes for AMG. The machine is designed with customers’ return on investment in mind – with an array of features that speak to high efficiency, long operating life and high reliability. This is complemented by the unparalleled aftermarket support from GEM, which has taken the SANY brand to a whole new

CAPITAL EQUIPMENT NEWS NOVEMBER 2018 4

A high configuration digging machine, the SANY SY500H ticked all the right boxes for Africa Mining Group.

Through SANY’s independently- developed engine pump valve control technology, the average working efficiency of the excavator has increased by 7,5%.

KEY SPECS Model

SANY SY500H

Operating weight

49 500 kg 2,2-3,1 m³

Bucket capacity

Engine

Isuzu

Rated power

300 kW @ 1 800 rpm

Bucket digging force

287 kN 245 kN

Arm digging force

Dynamic Optimisation Matching Control System which perfectly matches the hydraulic system. The advanced control system not only boosts operating efficiency by 7,5%, but also reduces fuel consumption by 10%. In tough mining conditions synonymous with Africa, there is need to ensure that mining machines deployed are tough and durable enough to conquer the challenging terrain. The SY500H is said to make light work of tough mining conditions. Designed to meet the IIW International and AISC Japanese standards, the machine was subjected to a comprehensive test and verification process before its launch to ensure that every part works as it should, consequently ensuring greater machine reliability. Unparalleled aftermarket support Equipment effectiveness played a major role in influencing AMG’s buying decision, but Yuan also highlights that aftermarket support was a key area of consideration. “The service from SANY’s local agent, GEM, is excellent. Spares availability and the professionalism of the local service team also left a very good impression,” he says. “We have dealt with Goscor on its other products before and the support has always been on time and professional.”

QUICK TAKE

Leading mining and beneficiation company, Africa Mining Group, has become the first recipient of the first three SANY SY500H excavators in South Africa.

The deal is worth around R12-million.

The SANY SY500H is said to set new levels of efficiency with its low running costs – facilitated by its affordable price, parts and fuel efficiency.

Equipment effectiveness and aftermarket support played a major role in influencing AMG’s buying decision.

CAPITAL EQUIPMENT NEWS NOVEMBER 2018 5

COVER STORY

The three machines are already hard at work at AMG’s Kathu, Northern Cape mining project.

Key numbers 7,5% increased working efficiency 10% drop in average fuel consumption

Burger, who handed over the machines o AGM, has since assumed the role of branch manager at Kathu, effective October 25 – a development that speaks volumes on his professionalism and capabilities as cited by Yuan. “My role is to ensure that all departments within the branch – rental, machine sales, admin, workshops and parts – run efficiently and remain profitable in these difficult

times. We aim to grow the GEM business unit to become even bigger role players in our area. This can only be achieved by keeping our customers happy through unparalleled backup support that we promise them,” says Burger. Burger adds that in today’s operating conditions, equipment owners do more research before they make their buying decisions. They expect suppliers to meet their needs and respond to their problems

effectively and swiftly. This is even more so when it comes to big-ticket purchases and mission critical assets such as earthmoving equipment. “Customers not only prioritise the product, they expect the service they receive once they have bought the piece of equipment to be up to their expectations. The aftersales service plays a major role in the client’s decision to purchase,” concludes Burger. b

CAPITAL EQUIPMENT NEWS NOVEMBER 2018 6

COMPACT EXCAVATORS

Bell Equipment entered the compact excavator market for the first time this year with the launch of three Kobelco models.

Latest compact excavators on arrival lounges

As the compact excavator continues to dig for a sizeable share of the local yellow metal equipment market, several leading suppliers have recently introduced new offerings or updated models to the market, writes Munesu Shoko .

T he compact excavator is deemed the next ‘big’ piece of equipment in the global equip- ment market. However, the local market still remains small compared with its devel- oped counterparts. Despite the gradual uptake of the solution, local suppliers believe the compact excavator will eventually dig for a sizeable share of the market in the long term. There are several new launches from many of the active participants in the southern African compact excavator market. Bell Equipment entered the market for the first time with the introduction of its three models from its new excavator partner, Kobelco. Force 8 has also recently launched a new 10 t model from its principal, YANMAR, while HPE Africa, the local supplier of Hyundai Construction Equipment has seen constant improvements being made to its existing models.

CAPITAL EQUIPMENT NEWS NOVEMBER 2018 8

Force 8 recently into the very first 10-t YANMAR SV100 into the country.

Bell Equipment’s three models Bell Equipment first launched compact excavators in March 2018 with the introduction of three models at bauma CONEXPO AFRICA – the Kobelco SK55SRX (5,5 t), the Kobelco SK75SR (7,5 t) and the Kobelco SK135SR (13,5 t). “All the three models feature a short rear swing that reduces the turning radius for superior manoeuvrability in limited spaces, making them ideally suited to the compact construction, agriculture and forestry industries,” explains Stephen McNeill, Product Marketing Manager at Bell Equipment. The three compact excavators all share the same machine-efficient technology as their larger counterparts, enabling them to meet Kobelco’s design intent for greater performance capacity and improved cost efficiency while taking due care for the environment. “The machines feature Kobelco’s Intelligent Control System (ITCS), an advanced computerised system that provides comprehensive control of all functions, enabling them to respond to sudden changes in hydraulic load to ensure that the engine runs as efficiently as possible, with minimum wasted output,” says McNeill. A unique innovation on Kobelco’s SR machines is the proprietary Integrated Noise and Dust Reduction Cooling System (iNDr), comprising of an airtight engine compartment with a single, offset duct that connects the air intake to the exhaust outlet. The design, together with the generous use of insulation material, minimises engine noise, while the iNDr filter in the intake aperture prevents dust penetration, for a quieter, cleaner engine. It also supports the performance of the cooling unit and enhances ease of maintenance.

The top three industries where HPE Africa sees most demand are construction, plant hire and forestry/agriculture.

QUICK TAKE

Force 8 recently brought the very first 10-t YANMAR SV100 into the country. The first machine arrived in January this year and has already clocked over 1 000 working hours.

1 000 WORKING HOURS

Bell Equipment first launched compact excavators in March 2018 with the introduction of three models at bauma CONEXPO AFRICA – the Kobelco SK55SRX (5,5 t), the Kobelco SK75SR (7,5 t) and the Kobelco SK135SR (13,5 t).

Based on current market trends, Bell anticipates a steady increase in the market to follow in the footsteps of first-world countries where the TLB market is shrinking and the compact excavator market is growing.

HPE Africa first imported its Hyundai R60-9S model in 2013 and has been a major player in the southern African market for this class size since then.

CAPITAL EQUIPMENT NEWS NOVEMBER 2018 9

COMPACT EXCAVATORS

already clocked over 1 000 working hours. “Like all midi-sized YANMAR excavators, the SV100 features a hydraulic quick hitch coupler, air- conditioned cab, dozer blade, cylinder protection, steel tracks, hydraulic PTO (double acting), swing boom (180 degrees), fuel saving modes and a reduced rear tail swing, close to being zero,” explains Nicoll. Fuel efficiency is a key design focus area for the new YANMAR SV100. Fuel efficiency has improved due to the perfectly-matched hydraulic system, combined with features such as Eco Mode and Auto Deceleration. Switching to Eco Mode controls the engine speed for increased efficiency and greatly reduces fuel consumption. Switching the operating levers to neutral automatically drops the engine rpm and reduces both fuel consumption and noise. Continuous update HPE Africa first imported its Hyundai R60- 9S model in 2013 and has been a major player in the southern African market in this class since then. “We did not recently launch any new mini excavators, however there are constant improvements to the existing models,” explains Alex Ackron, MD of HPE Africa. HPE Africa supplies the Hyundai R35Z- 9, R60-9S and R80-7 mini excavators, which are backed by superior aftermarket support and preferential warranties. Major talking points are the X-leg centre frame and reinforced box section track frame which provide enhanced strength and longer service life to withstand tough working conditions. “In the R80-7 and R35Z-9, the hydraulic system is precision designed for fast operation with fine control capabilities,” explains Ackron. The R60-9S’s advanced hydraulic system includes an arm flow summation system, boom holding system and a swing parking brake for smooth control. The R35Z’s zero-tail swing allows the machine to work in confined areas where space is at a premium. Demand dynamics Speaking about the state of affairs in the compact excavator market, Nicoll says demand is consistently high for the company’s products. “The market is fairly quiet though for a variety of reasons construction is having a really tough ride nationally and currency woes are not

“We have made very good inroads into agriculture and this is now a significant component of our market. Our machines are ultra-compact and well suited to the confines of orchards and vineyards.”

Justin Nicoll, MD of Force 8

“Customers are looking for a more productive machine to replace the conventional TLB. Compact excavators present a good opportunity for plant hire as a versatile, light weight machine that is easily transportable and light on fuel.”

Stephen McNeill, Product Marketing Manager, Bell Equipment

“Mini excavators are ultimate tool carriers. They can work with special attachments such as trenchers, augers and forks, which adds to the versatility of the machines. Typical applications where they excel include digging holes, trenching, demolishing small structures, repairing sewer lines and landscaping,” says Ackron.

Alex Ackron, MD of HPE Africa

“The models feature two digging modes – H mode for heavy duty and higher performance and S mode for normal operations with lower fuel consumption. This promotes the philosophy of more work with less fuel,” says McNeill. “To further save fuel, and reduce emissions, the standard Auto-Idling-Stop feature (AIS) shuts down the engine automatically when the engine is on standby. The hour meter also stops to help retain the machine’s asset value.” The rectangular cabs are ROPS (Roll Over Protective Structure) compliant and have been designed to offer the operator

a quiet environment with a reclining seat, plenty of room and greater visibility. Large analogue gauges with large print displays and glare-reducing visors are easy to read regardless of working conditions. The machines also offer easy access and ground level maintenance for quick and efficient daily checks and routine servicing. Force 8’s new arrival Force 8 recently brought the very first 10-t YANMAR SV100 into the country. MD Justin Nicoll says the first machine arrived in January this year and has

CAPITAL EQUIPMENT NEWS NOVEMBER 2018 10

helping pricing either,” says Nicoll. Ackron notes that certain size categories have experienced a decrease in sales over the past year, while the 5,1-7,5 t class, which represents 60% of the market, has remained flat. The top three industries where HPE Africa sees most of its demand are construction, plant hire and forestry/agriculture. According to McNeill, from analysing market data over the past five years, the compact excavator market is experiencing steady growth. “Although the growth isn’t huge we see a good market for compact excavators, which are ideally suited to light construction, demolition, grave digging, agriculture and forestry applications. We have seen an increased number of these machines going into compact construction applications where space is a challenge,” says McNeill. When it comes to demand drivers, McNeill reasons that perhaps one of the biggest drivers is the favourable cost and higher productivity of a compact excavator compared with manual labour. “Customers are also looking for a more productive machine to replace the conventional TLB. Compact excavators present a good opportunity for plant hire as a versatile, light weight machine that is easily transportable and light on fuel. With zero tail swing, the compact excavator can operate in areas with space constraints unlike larger machines,” says McNeill. The same view is shared by Nicoll, who says labour laws are onerous on all contractors and mechanisation is an attractive option. “That’s a widely held point of view. Our products are sought after for their build quality and value for money which drives specific interest in our brand,” says Nicoll. “We have made very good inroads into agriculture and this is now a significant component of our market. Our machines are ultra-compact and well suited to the confines of orchards and vineyards.” Ackron is of the view that compact excavators appeal to the industry for many reasons, and among the key drivers is that they work well in confined spaces; there is increased need for mechanisation; call for smaller capital expenditure; offer excellent power-to-weight ratios; and the machines are fuel efficient and easy to transport from one site to another. “Mini excavators are ultimate tool carriers. They can work with special attachments such as trenchers, augers and forks, which adds to the versatility of the machines. Typical applications where they excel include digging holes, trenching, demolishing small structures, repairing sewer lines and landscaping,” says Ackron. In terms of uptake, McNeill says there is no specific industry that has taken the lead; Bell Equipment has evenly sold machines across construction, agriculture and forestry where they are said to be performing well in varied applications. “We have sold several of the 5,5 t machines. However, we are seeing interest in all three of our models with the 13,5 t machine having the potential to become the most popular model due to its suitability to the forestry and agriculture industries.” According to Ackron, the 5,1-7,5 t is the best-selling class in HPE Africa’s stable; the lightweight excavators have a small footprint and cause less damage to work surfaces, like grass and asphalt, making them ideal to work in gardens and parking areas. Nicoll says Force 8

has a remarkably linear demand between its models with no size outselling others. “It’s owing, most likely, to a spread of sectors that we sell equally into, with each having a preferred weight category,” says Nicoll. Market outlook Ackron says in the short term, he sees a decrease in sales mainly due to lower volumes across all capital equipment sold. This is as a result of the current economic and political influences. “In the long term we foresee an increase in mechanisation, which will result in sustainable growth of mini excavator demand,” says Ackron. Nicoll says excavators are Force 8’s core product and the company has always been optimistic about the future of the compact excavator market. “We have committed many years to developing our brand and supporting it appropriately. Sales volumes will certainly increase as the versatility of the product becomes increasingly apparent to existing and as-yet underdeveloped sectors of the market. We need some currency stability though as the premium brands are quite expensive at present. We also worry that there are possibly too many competitors for what is inarguably not a very big market by Asian or European standards,” reasons Nicoll. Based on current market trends, Bell anticipates a steady increase in the market to follow in the footsteps of First World countries where the TLB market is shrinking and the compact excavator market is growing. “There will always be a place for the TLB and the market will never fall away completely, but a dedicated excavator is still a more efficient machine in terms of productivity and performance, which is why we are seeing this shift towards the compact excavator,” concludes McNeil. b

CAPITAL EQUIPMENT NEWS NOVEMBER 2018 11

TRANSPORT

Equipped with 40 m³ side tipper interlink trailers, the Scania tippers are achieving 34-36 t of payload.

Scania tips in increased efficiencies

As part of its fleet expansion programme, leading Gauteng-based aggregates retailer, Sand Shifters, took delivery of 11 x G460CA6X4MSZ truck tractors from Scania at the start of this year. To date, it reports that the range has injected new levels of efficiency to its aggregate haulage business, writes Munesu Shoko .

S tarted by the Coleman family back in 1995, business is retail of aggregates and building materials. Over the years, we have established ourselves as leaders in the aggregate retail and haulage business,” explains MD Garth Greenwood. Over the past 23 years, Sand Shifters has built up strong relationships with all the big players in the quarrying sector. Sand Shifters has established itself as a leading aggregates retailer across Gauteng. “We started out with one owner-driven truck and today we operate a fleet of well over 50 units. Our core

Because of the volumes the company moves, it gets the benefit of good product pricing. “The real beauty of our business is that we are not area based. Our main operations happen across the whole Gauteng area. We collect material from over 40 different quarries, which allows us to be competitive across the whole province,” explains Greenwood. For a business of this nature, reliability, uptime and efficiency of the fleet are crucial operational parameters. Reliability means that customer orders are always delivered on time, while uptime ensures that the fleet is always on

CAPITAL EQUIPMENT NEWS NOVEMBER 2018 12

the move, delivering scheduled orders as planned. Efficiency means that the fleet is running cost-effectively. It is for these reasons that Sand Shifters opted to purchase a fleet of 11 x G460CA6X4MSZ truck tractors from Scania at the start of this year. The company further purchased two P410CB8x4MHZ brick carriers for its brick division. To date, Greenwood is mostly satisfied by the “new level of fuel efficiency” the Scania fleet has injected into the business. Rigorous testing Before the buying decision was made, a Scania truck was subjected to a rigorous three-week testing regime where it had to prove its capabilities against two other competitive brands. “It took a lot of testing to get to the decision. The tests were run stringently under rigorous operating conditions. When undertaking tests of this nature, the trucks have to be run on the same route, with the same payload and laden with exactly the same materials,” explains Greenwood. “The tests had to be run under controlled circumstances for us to get the correct results because the decision that we were going to make in terms of the brand we were going to purchase was a particularly expensive one which we couldn’t afford to bungle,” says Greenwood. Greenwood tells Capital Equipment News that Sand Shifters employs its own driver trainer who conducted the trials together with Scania representatives. Three experienced drivers were swapped around the three truck brands under tests. “Each driver was given the opportunity to drive each of the three vehicles under exactly same conditions. At the end, we were very satisfied with Scania’s results,” explains Greenwood. During the stringent three-week testing, Sand Shifters found that the fuel consumption of the Scania truck was considerably better than that of the nearest competitor. “We found that the Scania truck was 8-9% more fuel efficient than the nearest competitor. From that perspective, the Scania came out the best and that’s the reason we decided to purchase the 11 truck tractors,” says Greenwood. Trend analysis Being leaders in the aggregate supply and haulage industry, Greenwood says Sand Shifters believes that it should

“If there is a byword to summarise the experience, it is efficiency, and certainly for us it’s a new level of efficiency that has been introduced to our fleet. ”

Garth Greenwood, MD of Sand Shifters

“A 100 m per kilometre that you run cheaper than the competitor sounds trivial. However, if it’s a big fleet and you are able to achieve a 0,1 percent fuel saving, multiplied by the number of vehicles over a 12-month period, for example, the savings run into millions of rands.”

Coenie Kaufmann, sales representative at Scania South Africa

TALKING POINTS

QUICK TAKE

T

During testing, Sand Shifters found that the Scania truck was 8-9% more fuel efficient than the nearest competitor

The company moves between 180 000 and 200 000 tonnes of material per month

Sand Shifters covers upwards of 4-million km a year in its aggregate haulage operations

Sand Shifters purchased 11 Scania G460CA6X4MSZ truck tractors and two P410CB8x4MHZ brick carriers this year

CAPITAL EQUIPMENT NEWS NOVEMBER 2018 13

TRANSPORT

past that,” explains Greenwood. Coenie Kaufmann, sales representative at Scania South Africa, concurs, saying that the 0,1 percent difference or a 100 m per kilometre that you run cheaper than the competitor sounds trivial. “However, if you look at a big fleet, if you are conservative with a 0,1 percent fuel saving, multiplied by the number of vehicles over a 12-month period, for example, the savings run into millions of rands,” says Kaufmann. Technological prowess Fuel expense in owning and operating haulage trucks is a constant and accounts for a large chunk of total operating costs. With the unpredictable nature of fuel prices and fuel’s absolute necessity for fleet-driven operations, most owners have simply looked at how much fuel they are burning and paid the bill. Recently, technology has changed, and now with the addition of production data, they can look at their fuel efficiency (how they are using fuel) and know its impact to the bottom line. As capital equipment-driven businesses fight to reduce operational costs and maximise efficiencies, fleet management solutions can provide significant cost savings and operational efficiencies. Sand Shifters uses Scania’s Fleet Management System (FMS) and one thing Greenwood likes about the system is that it produces a particularly easy to read report. Previously, the downside of many fleet management devices was that fleet managers regarded this technology, and the big data that can be derived from it, as more than just a device that spits out a whole lot of information. “As the telematics game has moved on in the industry, fleet operators have so much data at their fingertips and we should be very careful of paralysis by analysis; having so much information which we don’t do anything about. I believe it’s important for fleet managers to get the right data out of the fleet management system that is relevant to their business,” says Greenwood. He tells Capital Equipment News that this is one of the areas where Scania has come out tops. “They have a very simple document that gets sent to us on a weekly basis, highlighting major issues like fuel consumption and driver behaviour, among others, and it’s simple to read so that it doesn’t require any tedious analysis. The information that we require as a fleet operator is there and we are able to make decisions quickly on the data provided,” concludes Greenwood. b

Sand Shifters purchased 11 Scania G460CA6X4MSZ truck tractors at the start of this year.

Sand Shifters employs its own driver trainer who conducted the trials together with Scania representatives.

Competitive industry Speaking about fuel consumption,

always partner with the best suppliers. Additionally, the company believes that, to remain competitive in challenging operating conditions, it should employ the best technologies in its business. “Our trucks and trailers are our biggest capex spend, so it’s critical for us to get our purchasing strategies right. Scania ticked all the right boxes for us,” says Greenwood. “As a company we looked at the trends in the industry. We looked at companies that run large, established transport businesses and there are certain brands that they trust in their stables. Once we looked at the trends, we decided to put up the Scania trucks up against its closest competitors and we ran rigorous trials,” adds Greenwood. “If there is a byword to summarise the experience, it is efficiency, and certainly for us it’s a new level of efficiency that has been introduced to our fleet. The major reason we bought from Scania, and why we will continue to buy more Scania trucks, is because of the level of efficiency they have added to our business,” asserts Greenwood.

Greenwood elaborates that this industry is very competitive and to run a sustainable business, there is need to ensure that you deploy the most efficient truck for the application at hand. Bear in mind that Sand Shifters covers upwards of 4-million km a year in its operations, moving between 180 000 and 200 000 tonnes of material per month. Equipped with 40 m³ side tipper interlink trailers, the Scania tippers are achieving 34-36 t of payload. Haul distances vary from as little as 5 km, all the way to 350 km one way, depending on contracts. Therefore, fuel consumption in Sand Shifters’ fleet is of critical importance. An 8-9% fuel efficiency translates into millions of rands per year. “We have found that the Scania trucks have returned favourable results, especially considering the ongoing fuel price increases. In today’s operating conditions, you need to know your cost per kilometre (CPK) down to the third decimal point. So, the old adage that every cent counts is no longer applicable. It’s not just the cent that counts, it’s even

CAPITAL EQUIPMENT NEWS NOVEMBER 2018 14

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CONTRACTOR DEVELOPMENT

Skhumbuzo Macozoma, CEO of SANRAL (left), and Emmy Leeka, CEO of Barloworld Equipment, celebrate the signing of the MoU between the two companies.

Partnerships for contractor development

A collaborative initiative between SANRAL and leading construction equipment suppliers – Bell Equipment, Barloworld Equipment and Wirtgen South Africa – will accelerate emerging contractor development by affording them better access to road construction machinery they need to execute major SANRAL-owned projects, writes Munesu Shoko .

Y ear after year, many small success of their businesses. Their major difficulty is often the lack of credit to purchase equipment to fulfil their contracts. Small businesses are often denied access to finance because of their limited operating history and low gross margins. This is exacerbated by the competitive nature of the construction sector where both large construction contractors enlist access to funding as one of their most formidable concerns threatening the immediate

and small companies are jostling for a share of the few and far between projects. In such a cutthroat trading environment, efficient equipment is the difference between success and stagnation. With that in mind, the South African National Road Agency Limited (SANRAL) has entered into strategic agreements with leading road construction equipment suppliers to help close the access to equipment gap for small to medium contractors. This will allow them to use their SANRAL-managed projects as

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collateral to buy the equipment the need to execute the projects. Bell MoU SANRAL’s agreement with Bell Equipment was the first to be announced in July this year. The national roads agency and Bell Equipment Sales South Africa Limited signed a Memorandum of Understanding (MoU) that will give CIDB-graded contractors access to earthmoving machinery which will enable them to participate more meaningfully in major construction projects. “Our primary objectives are to grow especially black contractors who can build businesses and create jobs,” says Skhumbuzo Macozoma, CEO of SANRAL. Macozoma says access to various types of construction equipment used in construction has been identified as one of the biggest hurdles facing black-owned and managed CIDB graded construction companies. “They often do not have the capital to purchase major machinery used for construction works, earthmoving and the grading of roads,” he says. The cooperation between SANRAL and Bell Equipment will help to promote fair competition in the construction and engineering sectors. Black-owned CIDB graded contractors will now get access to finance, leasing and rental options, training and maintenance services. Bell Equipment is a proudly South African company with a global footprint and more than six decades of experience in the manufacturing of equipment used in the construction industry. “Bell Equipment brings a vast understanding of the local construction and engineering sectors and share our commitment to the transformation of the industries,” says Macozoma. Bell Equipment sees this as an opportunity to position itself as a road construction equipment supplier of choice. “The partnership with SANRAL will enable us to grow our customer base and contribute greatly to the empowerment of emerging contractors in the industry,” says Bell chairman Gary Bell. “CIDB-graded contractors will now be able to purchase, rent or lease road construction equipment that will enable them to participate in major public sector construction where high standards of quality are required. Bell will also leverage its existing partnerships with the financial sector the construction and engineering sectors and attract new entrants,

Louw Kannemeyer, engineering executive at SANRAL (left), and Heinrich Schulengburg, MD of Wirtgen South Africa.

QUICK TAKE

SANRAL has entered into strategic agreements with some leading road construction equipment suppliers to help close the access to equipment gap for small to medium contractors.

SANRAL’s agreement with Bell Equipment was the first to be announced in July this year.

SANRAL followed the Bell MoU with another landmark agreement with Barloworld Equipment, the dealer for Cat earthmoving machines and Cat power systems in southern Africa.

On October 19, SANRAL signed a similar MoU with Wirtgen South Africa. The agreement will also afford small to medium construction contractors full access to the Wirtgen Group’s full suite of leading equipment brands, as well as financing, training and logistics.

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CONTRACTOR DEVELOPMENT

Executives from SANRAL and Wirtgen South Africa celebrate the signing of the MoU between the two companies.

to give black-owned and managed CIDB graded contractors access to financing,” adds Bell. Macozoma says the cooperation with Bell Equipment is a “trailblazing step for the South African construction industry.” It demonstrates SANRAL’s resolve to use its contracting and procurement processes to facilitate the growth of emerging contractors. Both Bell and SANRAL confirmed that they will host an information sharing session with black-owned and small businesses in construction to unpack how their collaboration will benefit them. Barloworld agreement SANRAL followed the Bell MoU with another landmark agreement with Barloworld Equipment, the dealer for Cat earthmoving machines and Cat power systems in southern Africa. The Cat dealership will also give black-owned enterprises greater access to equipment, financing and training, which will enable them to tender more effectively on road construction projects managed by SANRAL. The MoU, signed in Sandton on September 5, sets out future cooperation between SANRAL and Barloworld Equipment across a broad range of activities, including providing small contractors in the SANRAL supply chain access to

Barloworld and SANRAL executives after the signing of the MoU between the two companies.

Bell Equipment and SANRAL officials at the signing of the agreement between the OEM and the road authority.

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medium construction contractors full access to the Wirtgen Group’s full suite of leading equipment brands, as well as financing, training and logistics. “This is an important step in the broader national aim to transform the construction and engineering sectors and enable emerging black contractors, including enterprises owned by women and the youth, to participate more fully in major projects,” says Louw Kannemeyer, Engineering Executive at SANRAL. “Infrastructure development will be a major contributor to the efforts to attract investment to the country and was singled out at the recent Job Summit for its ability to create employment and stimulate economic activity. We are delighted that a global leader in construction such as Wirtgen is stepping up to fill major gaps in the industry that constrain the growth of smaller contractors and impose barriers on their ability to tender for major work packages,” adds Kannemeyer. Waylon Kukard, National Sales Manager at Wirtgen South Africa, says equipment is one of the major success factors for contractors in the execution of their projects. “If contractors are not well equipped, the country also faces the danger of sub-standard road infrastructure. The agreement will afford upcoming contractors greater access to all Wirtgen Group equipment brands, namely Wirtgen, Vögele, Hamm, Kleemann, Benninghoven and Ciber,” says Kukard. Through its leading brands, Wirtgen offers a wide range of equipment, all the way from rollers, bitumen spreaders, sweepers, milling machines, recyclers, slipform pavers, modular asphalt pavers, to mobile asphalt plants and crushers and screens. Emerging contractors will be able to purchase or lease the sophisticated machinery required to meet the high standards that are in place within the South African road construction environment. “This move will open new doors for Wirtgen to collaborate with small contractors by offering them access to finance, technical assistance, mentoring and logistical support. SANRAL and Wirtgen will also collaborate on issues such as training, supply chains and access to information about tendering processes,” says Kukard. “We are confident that these agreements will increase the number of participants across the value chain of the road construction sector and contribute to fair competition,” concludes Kannemeyer. b

Celebrating the Bell-SANRAL MoU are Skhumbuzo Macozoma, SANRAL CEO (left) and Duncan Mashika, MD of Bell Equipment Sales SA.

equipment, financing and training. “This will open up the industry to new participants and remove many of the barriers that prevent companies owned by black, women and youth entrepreneurs to compete effectively against the entrenched players in the construction sector,” says Macozoma. “Through our cooperation with Barloworld Equipment we are promoting the growth of black business and taking positive steps to support a sector with immense potential for growth and job creation,” adds Macozoma.” Emmy Leeka, CEO of Barloworld Equipment southern Africa, says this is an opportunity to contribute to the empowerment of emerging contractors in the construction industry. “We have built valuable partnerships with black-owned enterprises through the years and this initiative will take our activities to a higher level,” says Leeka. “This will enable us to deliver on our incubation and empowerment commitments and work with SANRAL towards the greater goal to transform the engineering and construction sectors,” says Vasco Santos, Executive Head: Construction, Rental & Used at Barloworld Equipment. Barloworld Equipment will set up structures which will enable contractors to benefit from options to lease or rent

equipment. The company will also offer training to owners, employees and maintenance staff. Together, SANRAL and Barloworld Equipment will promote partnerships in the fields of training, fleet management, marketing and communication. Macozoma says the partnership is proof that SANRAL’s efforts to transform the construction sector and promote fair competition are delivering results. “Lack of access to sophisticated machinery and equipment is a major barrier for small contractors and prevents them from participation in large construction tenders,” he says. “By working together with established companies and enterprises owned by women and the youth to participate on a level playing field,” adds Macozoma. “This step will, no doubt, have a ripple effect within the construction and engineering industries and also benefit job creation within local communities where smaller enterprises now become part of the supply chains on larger projects.” Enter Wirtgen On October 19, SANRAL signed a similar MoU with Wirtgen South Africa. The agreement will also afford small to companies, we can remove these barriers and enable black-owned

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MOBILE CRANES

Liebherr can supply an electronic interface for telemetry data on its LTM 1250-5.1 crane.

Gaining a lifting competitive edge There is a gradual uptake of telemetry technology in the global crane market compared with other capital equipment users. Considering the array of benefits the global positioning system-based technology offers, are crane users missing out on a potential competitive adavantage? By Munesu Shok o.

T elematics is a word that has grown in popularity over time and one of its core functions is to record information about vehicles or machinery and send, receive, process and store the data via telecommunications devices. Practical applications where telematics can help improve the efficiency of a fleet include monitoring the location, movements, status and behaviour of the vehicle via an on-board computer and monitoring the driver through in-cab video systems. Grant Fraser, commercial director at MiX Telematics (Africa), is of the view

that, with data being the new currency for businesses, telematics and the real- time usage of data is quickly moving from being optional to a requirement and will soon become an invaluable part of a business’ operations in order to gain a competitive edge and remain one step ahead in tough economic times. “While telematics was originally exclusively used by large enterprises,

today nearly any type of business can utilise telematics and use the

opportunities presented by the Internet of Things to elevate their business, reduce costs and simplify operations,” says Fraser.

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