Capital Equipment News September 2019

For informed decision-making SEPTEMBER 2019

BLUEPRINT FOR LONG-HAUL SUCCESS

SKID STEERS: New skid range for emerging markets

EARTHMOVING EQUIPMENT: Expanding support footprint

5G NETWORK IS 5G THE KEY TO UNLOCKING MINING AUTONOMY? PAGE 20

DIGITALISATION IN MINING: Managing variability and enhancing productivity

BLUEPRINT FOR LONG-HAUL SUCCESS

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

FEATURES

THOUGHT LEADERSHIP

Publisher: Karen Grant

39 Driving sustainable performance, one load at a time 40 Dries Lottering on customer-centricity in the tyre industry

COMMENT 2 Adapt or die cover 4 Blueprint for long-haul success skid steers 8 New skid range for emerging markets earthmoving equipment 12 Expanding support footprint medium commercial vehicles 16 Gaining considerable ground 5g network 20 Is 5G the key to unlocking mining autonomy? digitalisation in mining 24 Managing variability and enhancing productivity interviews 32 Paul Douglas on Terex Trucks’ continuous journey of improvement 34 Kumeshan Naidu unpacks a new age of efficiency in mining

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.

NEWS

transport news 36 New FUSO models extend the range 37 Babcock's record sales for DAF trucks

Total circulation Q2 2019: 4 826

http://crown.co.za/capital-equipment-news

EDITOR'S COMMENT

ADAPT OR DIE

T he African mining industry is point is coal, which has seen a significant fall in prices this year. To give an idea, the price dropped to US$72,01 a tonne in June, said to be the weakest in two years and down 40% from its seven-year peak of US$119,74 in July last year. Market sources believe thermal coal prices appear poised for a sharp drop that could seriously squeeze producer profit margins, especially for high-cost mining companies. Several thermal coal producers facing high-cost structures are in Africa, and could be among those vulnerable to lower prices. Looking ahead, many existing mines are maturing, leading to the extraction of lower ore grades and longer haul distances from the mine face to the processing plants; ore-body-replacement rates are in decline; and new-mine-development times are increasing. Additionally, according to McKinsey & Company, global mining operations are as much as 28% less productive today than a decade ago – and that’s after adjusting for declining ore grades. So, how can the industry survive the tough cycle? To respond to these challenges, the mining industry has shifted its focus to improving productivity by “sweating” existing assets, but this strategy is not a long-term solution. As you will see in this edition of Capital Equipment News , achieving a breakthrough on productivity performance demands rethinking how mining works – experts believe that digitalisation is the answer to the current woes. How can digital innovation improve mining productivity? There are several digital technologies that have long been in the works and are now available and affordable enough to become operational under pressure. In the short term, falling commodity prices are squeezing cash flow. A case in

at scale across the mining industry. Their applications include building a more comprehensive understanding of the resource base, optimising material and equipment flow, improving anticipation of failures, increasing mechanisation through automation and monitoring performance in real time. Some of these technologies are not necessarily new to the industry. They have been applied at mines for years, but a major drawback is that they have been deployed in isolation. Alone, each of the technologies has potential; together, they represent a fundamental shift in both potential safety and productivity outcomes. There are several clusters of digital technologies that can help mines in their quest to improve productivity. For example, the South African market is being driven by asset reliability and prediction technology. This has become critical as operations seek to prevent unplanned downtime. Mines operate at high costs and one hour of lost production has a large impact. Globally, there are four key digital technology areas that are receiving attention from industry – computation power, data analytics, human-machine- interface and robotics. These are key enablers in unlocking value in a way that would have previously been cost inefficient or just plain difficult or risky – this is especially true when integrated holistically across the mining value chain. Mining has traditionally been slow to adopt new technologies due to the scale and complexity of its operations. However, the operating environment presently forces business to adapt or die. The rate at which changes need to happen in mining businesses is faster than it has ever been. Fortunately, technology is not only available, but is increasingly becoming more affordable to enable digital transformation.

Munesu Shoko – Editor

capnews@crown.co.za

@CapEquipNews

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CAPITAL EQUIPMENT NEWS SEPTEMBER 2019 2

COVER STORY

A new Scania NTG R560 is proving to be the blueprint for the long-term success of a Rustenburg-based long-haul fleet operator, MJ Energy. The NTG R560 strikes a healthy balance between power, productivity and fuel efficiency, three key parameters that have influenced the company’s decision to standardise its entire long-haul fleet with the new model, writes Munesu Shoko. BLUEPRINT FOR LONG-HAUL SUCCESS

MJ Energy took delivery of its Scania NTG R560 in July this year.

H aving started as a tipper truck contractor in 2008 – at the height of the global economic meltdown – running some second-hand tippers at mines in the Rustenburg area, MJ Energy survived the tide of one of the toughest business cycles in history to establish a sustainable trucking business. In 2015, the company broadened its horizons with the addition of a long-haul fleet to its transport services portfolio. That year, the company bought its first Scania G460, and never looked back. Today, the fleet has grown to six Scania units, and counting – comprising three G460 and two R580 units, as well as the newest member of the family, the NTG R560 purchased this year following the introduction of the new range locally. Manny Fernandes, owner of MJ Energy, tells Capital Equipment News t hat the Scania fleet runs between Rustenburg and Durban, hauling boxed chrome from the mining province to the Durban harbour. Return loads from Durban vary from hardware to general groceries, among others. In a very short space of time, the NTG R560 has proved to be the blueprint for the long-term success of MJ Energy’s long-haul transport business due to its operating economy, based on driver comfort, power, productivity and most

importantly, lower fuel consumption. “This is a super truck for this sort of application. I am in the process of trading in the three G460 units for three NTG R560 trucks,” says Fernandes. What makes it tick? Everyone who is in the long haul transport business in South Africa will concur that the Durban route is a roller coaster characterised by undulating, winding roads, following the steep topography. The R560 is proving to be the ideal truck for the given terrain. According to Fernandes, the Scania V8 truck flattens the road, with seemingly endless torque, maintaining momentum whatever the load or terrain. “There are several reasons why we want to standardise the fleet with the NTG R560. Firstly, it’s the performance of the truck, and secondly, the productivity that stems from both driver comfort and performance. More importantly, it’s the amazing fuel consumption figures that we have recorded thus far,” he says. In terms of performance, Coenie Kaufmann, sales representative at Scania South Africa, explains that R560 is powered by a 16-litre V8 Scania engine delivering 560 hp, allowing the truck to discharge more than enough power to conquer the tough terrain. On the other hand, the old generation G460 comes with

a 13-litre straight six engine, delivering 460 hp. “The extra power on the NTG R560 means that the truck can easily negotiate the tough terrain with full loads. In terms of time, we have seen time savings of up to an hour travelling between Rustenburg and Durban, mainly because the truck has the power and performance to take on the undulating road,” says Fernandes. From a fuel consumption point of view, Fernandes reports that the diesel consumption on the Durban route with a tautliner trailer unit is considerably lower on the NTG R560 than with the old generation model – and even surpasses OEM projections. When it launched the NTG, Scania promised up to 5% better fuel efficiency compared with the previous range. “We have seen up to 12% fuel savings on our R560 compared with the old generation truck. This is a significant saving, which equates to the instalment on the truck,” he says. Increased productivity For years, Scania has been championing its operating economy approach with great results for fleet owners. According to Kaufmann, there are three cornerstones of operating economy: the driver, the vehicle and the services behind them. These are all areas of focus on the new NTG R560. From a driver perspective,

CAPITAL EQUIPMENT NEWS SEPTEMBER 2019 4

Juanette and Manny Fernandes of MJ Energy.

MJ Energy took delivery of its Scania NTG R560 in July this year

The NTG R560 joins an existing fleet of five other Scania units – three G460 and two R580 models

The new R560 is offering fuel savings of up to 12% compared with the old generation model

The NTG R560 is powered by a 16-litre V8 Scania engine delivering 560 hp.

Kaufmann says the new R560 offers greater driver comfort, which is another key feature at the centre of MJ Energy’s increased productivity and the subsequent decision to standardise the fleet with the new model. “The R-series is the pinnacle of design

Due to the truck’s power and performance, which allows it to make light work of the tough topography along the Rustenburg-Durban route, MJ Energy reports time savings of up to an hour per trip

QUICK TAKE

CAPITAL EQUIPMENT NEWS SEPTEMBER 2019 5

COVER STORY

The new NTG R560 comes with a spacious cab for increased driver comfort.

for demanding drivers. It offers class- leading comfort, visibility and control. You can also specify desired equipment levels and an array of extras,” says Kaufmann. Based on Scania’s understanding that a comfortable driver is a productive one, the R560 comes with a spacious cab. Customers can opt for either a double bunker or a single sleeper. MJ Energy opted for a single bunker and replaced the second sleeper with extra storage, which offers increased luxury for the driver. “Driver comfort is an important factor in increased productivity. For example, the NTG R-Series comes with a refrigerator on board. Our drivers no longer need to stop on the way to grab their refreshments, which is a key factor in early arrivals,” says Fernandes, adding that it’s such small matters that have vast impact on overall profitability of a transport business. Support matters A good product is one thing, and being able to offer unparalleled aftersales support to keep the wheels turning is quite another. Fernandes is of the view that “no other company” matches Scania from a service perspective. For him, it’s

the whole service experience, all the way from sales and financing, to insurance and aftersales. For all the different services he may require, in Kaufmann, he has a single point of contact at Scania South Africa. “If you want peace of mind in the long-haul transport business, just go with Scania,” says Fernandes. “They go the extra mile. As a forward thinking company, they understand that their business thrives when transporters keep the wheels turning. The service is just out of this world.” Scania’s total solutions approach is a turn-on for Fernandes. For example, he has already purchased five of his Scania trucks using Scania’s in-house finance facility. “I have found that Scania’s financial services provide flexible financing to suit my business plan and budget. Their trade-in and buy-back options also help keep our fleet operationally effective, at a lower cost,” says Fernandes, adding that going forward he will only use Scania Finance for his new truck purchases. Apart from Scania Finance, Fernandes also finds great value in Scania Fleet Management Services. The technology allows him to make decisions based on

facts. As a cunning businessman, he understands that the key to operational efficiency lies in the ability to transform real-time operational and logistical data into valuable, actionable information which impacts his entire business. “With Scania’s fleet management portal, I am able to monitor vehicle performance, fuel consumption, loading and unloading, driver behaviour, safety follow-ups and route planning – helping me improve efficiency and reducing overall maintenance costs,” says Fernandes. From an aftersales support perspective, Fernandes believes that Scania’s wide branch network is the key to keeping truckers on the road. The quick response times in case of breakdowns help reduce truck downtime. “For these reasons, it will be very hard to convince me to buy any other truck brand,” he declares. “To keep our customers’ productivity high and their fuel expenditure low, Scania constantly strives to improve its trucks and services. By constantly refining the three cornerstones of fuel economy – vehicle, driver and services – we are able to help our customers like MJ Energy thrive,” concludes Kaufmann. b

CAPITAL EQUIPMENT NEWS SEPTEMBER 2019 6

SKID STEERS

The new compact loaders from Manitou group – the Manitou 1340R and the Gehl R134 – were launched at the company’s Stronger Together event in Phuket, Thailand, earlier this year.

New skid range for emerging markets

The Manitou group has expanded its product portfolio for developing markets with the launch of a new skid steer model – the Manitou-branded 1340R / Gehl branded R134. The new compact loader is specifically adapted to the needs of emerging markets, with versatility, increased performance, simplicity and safety being the key design focus areas. By Munesu Shoko .

E arlier this year, the Manitou group used its Europe and Africa. The new skid steer – comimg in the form of a Manitou 1340R and Gehl R134 – is said to respond to fleet owner and operator needs in these markets – with a special design focus on increased versatility, productivity, safety, reliability, simplicity and, more importantly, lower total cost of ownership. Michel Denis, president and CEO of Manitou group, considers markets such as China, India, Australia, Russia, Asia and Africa as strategic. He believes that construction activity in these developing markets will drive the compact loader market for many years to come. “Skid steer users in developing markets have certain expectations from their machines, and chief among them are simplicity, productivity, safety, reliability and cost efficiency, all of which are addressed by the new Manitou 1340R / Gehl R134 compact loader,” says Denis. Laurent Bonnaure, Manitou group’s executive vice president – Global Sales & Marketing, says with the Stronger Together event attended by Capital Equipment News in Phuket, Thailand, to unveil its new compact loader specifically designed for emerging markets – Asia, the Middle East, Eastern

solutions adapted for emerging markets, the Manitou group hopes to enhance its development in these high- potential geographic zones. “The skid steer market is projected to grow eightfold in the next 10 years to 50 000 units per year. Of this figure, the APAC and MEA regions will account for 10 000 units per annum,” he says. “The growth of the skid steer market will be largely driven by spending on infrastructure development, including railways, roadways and buildings in emerging countries such as China, India and South Africa,” says Bonnaure. He reasons that with higher GDP growth rates, higher household incomes and with generally younger populations, African economies will also begin to play an ever more important role in the global economy. Construction activity will gain pace as cities battle to catch up with the ever growing population. “With the new compact loader model, we assure operators on site of many hours of use. They thus benefit from a machine that is versatile, high-performance, easy to control and offer optimised maintenance, thanks to high-quality components,” explains Rick Alton, president of the Compact Equipment Product Division.

CAPITAL EQUIPMENT NEWS SEPTEMBER 2019 8

KEY SPECS Models Manitou 1340R Gehl R134

Lifting height

Capacity Max. dump height

Power

Transmission

3,58 m

608 kg

2,2 m

49 hp 145 Nm

The new range can easily enter and leave basements or parking lots, saving movement time and increasing user productivity.

With restricted dimensions – 1,3 m wide and 1,9 m high – the compact loaders can easily get the better of tight spaces on building construction sites.

Model in detail Philippe Bisson, Manitou group’s development director for the construction line, says the new model comes at a time when the 600 kg compact loader segment constitutes a significant part of the segment’s annual global volume. “The R134 / 1340R model is mainly aimed at the Middle East and Africa, India and Australia, which together make up more than 70% of the sector. We expect a significant increase in demand for compact loaders, and trends recently observed in the market make us optimistic about the future of the compact loader in those regions,” he says. Equipped with a 49 hp engine and a torque converter transmission, the model provides a lifting height of 3,58 m for a maximum load capacity of 608 kg. Offering restricted dimensions – 1,3 m wide and 1,9 m high – the compact loader easily move in tight areas often found on building construction sites. It can also easily enter and leave basements or parking lots, saving movement time and increasing user productivity. With versatility in mind, Manitou group offers the new compact loader with a large choice of attachments, such as buckets, sweepers and breakers, among others. “They can do multiple jobs on the same site, eliminating the need for different equipment, which is a major plus for our customers in emerging markets,” says Alton. The model is also ideally suited for road construction, particularly for filling dump

QUICK TAKE

The Manitou group has expanded its product portfolio for emerging markets with the launch of a new skid steer model – the Manitou 1340R / Gehl R134

50 000 UNITS PER YEAR

The global skid steer market is projected to grow eightfold in the next 10 years, to 50 000 units per year

The APAC and MEA regions will account for 10 000 units, while China alone will be home to 5 000 units a year

10 000 UNITS AND 5 000

UNITS A YEAR

3,58 M

The model provides a lifting height of 3,58 m for a maximum load capacity of 608 kg

LOAD CAPACITY OF 608 KG

CAPITAL EQUIPMENT NEWS SEPTEMBER 2019 9

SKID STEERS

trucks, thanks to its 2,2 m dump height, with a turning radius of just 1,75 m. With safety in mind, the new loader complies with the FOPS/ROPS standards and is equipped with a handrail and safety belt. The Manitou group’s expertise can also be seen in the quality of components. With a boom and chassis made of very high-resistance steel, operators can count on a durable, reliable loader, even in difficult climactic or environmental conditions. The controls inside the cab are ergonomic to allow the operator to learn the ropes easily, thus ensuring better productivity. Maintenance is also optimised with easy access to daily maintenance locations, thereby speeding up recurring inspections. Meeting local market needs Steve Ryder, who recently assumed his new role as MD at Manitou Southern Africa, says one of his key focus areas is to get the Manitou subsidiary to step up its business into the construction market. “A key enabler will be the new products recently introduced to the market, including the Manitou branded backhoe loader, telehandlers and skid steers, which speak directly to the needs of the local construction market.” “My immediate focus is to up Manitou’s stakes in construction and with the arrival of the new solutions, we are able to expand into new product areas. We launched our Manitou-branded backhoe loader last year and we are starting to make significant progress with the product. With the new Manitou-branded skid steer, which I expect to be available in South Africa during the last quarter of this year, we will further increase our foothold into the construction market,” he says. Ryder says Manitou’s reputation for providing simple, reliable machines is its key competitive edge in this overtraded, but lucrative market. “More importantly is the way we support and service our customers, because the product is just one part of the equation in terms of the total solution. We have experienced and capable dealers across the market area to support our customers. As part of our total solutions approach, we also offer our own in-house finance. The total package approach allows us to better service our customers,” says Ryder. “Another strong point for us is that we are not new to the targeted markets with our skid steer range; the customers we are targeting with these solutions are our existing clientele. We are already selling them our telescopic handlers, and the backhoe loader and the skid steer are great additions to the portfolio,” concludes Ryder. b

“Skid steer users in developing markets have certain expectations from their machines, and chief among them are simplicity, productivity, safety, reliability and cost efficiency, all of which are addressed by the new Manitou 1340R / Gehl R134 model.”

Michel Denis, president and CEO of Manitou group

“The growth of the skid steer market will be largely driven by spending on infrastructure development, including railways, roadways and buildings in emerging countries such as China, India and South Africa.”

Laurent Bonnaure, Manitou group’s executive vice president – Global Sales & Marketing

“One of my immediate targets is to get Manitou Southern Africa to step up its business into the construction market. A key enabler will be the new products recently introduced to market, including the Manitou branded backhoe loader, telehandlers and skid steers, which speak directly to the needs of the local construction market.”

Steve Ryder, MD Manitou Southern Africa

“With the new compact loader, we assure operators on site of many hours of use. They thus benefit from a machine that is versatile, easy to control and offers optimised maintenance.”

Rick Alton, president of the Compact Equipment Product Division

TALKING POINTS

CAPITAL EQUIPMENT NEWS SEPTEMBER 2019 10

EARTHMOVING EQUIPMENT

A Hidromek HMK62SS mini-TLB from Maximum Equipment’s newly-opened KZN branch enroute to a customer.

Expanding support footprint

E very equipment brand is as good as its support. With that in mind, Maximum Equipment is extending its support footprint for its Hidromek excavators and backhoe loaders in South Africa. Vaughan Ellis, MD of Maximum Equipment, tells Capital Equipment News t hat as the Hidromek brand continues to gain traction in the market, Maximum Equipment will match the growth with relevant infrastructure to better support customers in all regions of the country. Ellis says it is critical to have a good footprint around the country, which reassures customers in every strategic region that that the supplier is committed to providing unparalleled support. “KwaZulu- Natal is an important market area for us and we already have a large population of machines operating in the area,” says Ellis. “The region represents 50% of our sales currently, which justifies the investment in a new branch.” The facility Maximum Equipment’s new Durban branch opened its doors on March 1 this year. Located in Shakas Rock, Umhlali, the 250 m² facility offers sales, field service and parts to

Maximum Equipment, the sole distributor of the Hidromek range of excavators and TLBs in South Africa, has expanded its support footprint in the country with the opening of a new branch in Durban, KwaZulu-Natal, writes Munesu Shoko .

CAPITAL EQUIPMENT NEWS SEPTEMBER 2019 12

Ralph Correia of Dargle Plant Hire (left) takes delivery of the Hidromek HMK 220 LC excavator from Dave Khaled of Maximum Equipment.

QUICK TAKE Maximum Equipment has opened a new branch in Durban, KwaZulu, Natal

Located in Shakas Rock, Umhlali, the 250 m² offers sales, field service and parts to customers operating in the KwaZulu-Natal region

KwaZulu-Natal represents 50% of Maximum Equipment’s sales, which justifies the investment in a new branch

customers operating in the KwaZulu- Natal region. “The facility is situated in a business park, but we also have a yard for machine display alongside the N2 northbound highway,” explains Dave Khaled, operations director at Maximum Equipment. Khaled, who is in charge of the new branch, recently relocated back to KZN from Gauteng after being away for 18 years. He was born and schooled in KZN, where he also spent much of his early working career, which gives him a better understanding of the KZN business approach. Khaled says investing in the KZN branch was a necessity for Maximum Equipment. “North coast and the surrounding areas needed a branch, both from a demand and machine support perspective,” he says. Construction, civils and to a lesser extent plant hire, are the major drivers of the market

The branch targets to double its sales in the KZN region this year

“KwaZulu-Natal is an important market area for us and we already have a large population of machines operating in the area. The region represents 50% of our sales currently, which justifies the investment in a new branch.”

Vaughan Ellis, MD of Maximum Equipment

TALKING POINT

CAPITAL EQUIPMENT NEWS SEPTEMBER 2019 13

EARTHMOVING EQUIPMENT

Hidromek HMK 220 LC excavator. Start to Finish Construction also recently bought a Hidromek HMK 102B Alpha backhoe loader out of the KZN facility, while Multi Group Plant Hire took delivery of the Hidromek HMK 220 LC excavator and the Hidromek HMK 102B Alpha backhoe loader. Other early recipients include Star of Life Construction, which bought the HMK 62SS mini-TLB, DCS Commercial from Kwa Dukuza, which took delivery of a Hidromek HMK 102B Alpha backhoe loader fitted with a quick coupler and a Maximum MXB 6X hydraulic hammer and CVC Africa, which purchased a new Hidromek HMK62SS mini-TLB. Gravis Sabelo, owner of Start to Finish Construction, whose company is involved in building and civil works, says the Hidromek HMK 102B Alpha is performing beyond expectations across several applications it is deployed to undertake on sites, including earthmoving and digging. To ensure uninterrupted operation and peace of mind, Start to Finish has taken a service contract with Maximum Equipment, which will be serviced by the KZN branch. “The backhoe loader’s 1,2 m 3 high-capacity loading bucket provides advanced level of loading performance. Thanks to the bucket geometry, effective use of bucket capacity is guaranteed,” says Sabelo. Multi Group Plant Hire has deployed its newly-acquired HMK 220 LC excavator and the Hidromek HMK 102B Alpha backhoe loader on its civil contracts. The excavator is mainly used for bulk earthworks and earthmoving, while the TLB is deployed to dig and load trucks on site. Highlighting some of the reasons why the company opted for these machines, Jason Simons of Multi Group Plant Hire, says Hidromek’s ALPHA Series backhoe loader comes with greater weight distribution and wide stabilisers, which 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,” says Simons. Simons also highlights that the Hidromek HMK 220 LC excavator pushes the 20 t class envelope with a 1,2 m 3 bucket and an array of standard features that set it as the ultimate tool carrier. This is a fully-spec’d machine that has a special design focus on increased versatility through its ability to carry a full range of attachments. Standard hammer lines and an in-line filter – features that normally come as optional extras on

Gravis Sabelo, owner of Start to Finish Construction, recently took delivery of Hidromek HMK 102B Alpha TLB.

Andrew Slevin (left) of Westwood Plant Hire takes delivery of his Hidromek HMK 102B Alpha backhoe loader from Dave Khaled of Maximum Equipment.

for Maximum Equipment at the moment. This is complemented by the residential and business estates currently under development in the area. Apart from the Hidromek range of excavators and TLBs, the KZN branch also distributes and supports a range of attach- ment brands supplied by the company in South Africa. “We have a full line of attachments and a solution for every need. We can cater for all our customers’ applications, all the way from materials handling, through to civils construction and mining,” says Ellis. In Komac and Torpedo, Maximum Equip- ment has a full range of Korean-made hydraulic breakers that can meet a wide range of customers’ needs. “We also sup- ply our own Maximum vibro ripper attach- ment, which is a product out of Korea we have branded ourselves,” says Ellis. This is a heavy duty hydraulically activated ripper tooth which uses centrifugal force generated by eccentric axis rotation which penetrates and breaks material faster and more efficiently than hydraulic hammers.

The Maximum excavator-mounted rock drill, the EX-Drill series is said to provide customers with economical and efficient performance with multiple functions and wide working range using hydraulic excavator power only. The machine is spe- cifically used for drilling bushing holes, rock bolt holes in the rock mass for the purpose of removing rock at mine sites, quarries and construction sites. “We also supply a range of crusher buckets, rotary cutters and compactors from Simex, an Italian manufacturer. Their range of cutting heads are ideal for trench- ing in hard and compact ground, concrete or rock wall profiling, quarrying, demolition and dredging,” adds Khaled. Early recipients Several customers in the KwaZulu-Natal region have already taken deliveries of their new Hidromek equipment from the new branch. Westwood Plant Hire is one of the recipients of the Hidromek HMK 102B Alpha backhoe loader, while Dargle Plant Hire took delivery of the 23 t

CAPITAL EQUIPMENT NEWS SEPTEMBER 2019 14

motivator, which ensures peace of mind for every equipment owner. To the future As Maximum Equipment continues to establish the Hidromek brand in the local market, the company is aiming to further grow its footprint. Ellis says next in line is Cape Town, with a branch scheduled to be up and running by October this year. Commenting on the current state of the market in the country, Ellis is optimistic that the market will rebound despite the current challenging trading conditions. “The yellow metal equipment market has been contracting over the past three years, but we are starting to see a reversal of that trend. We believe that the market will improve significantly in the next five years. We see a bright future for Maximum Equipment and Hidromek in South Africa,” says Ellis. Commenting on the state of affairs in the KwaZulu-Natal area, Khaled says Durban Central and Western areas are slow at the moment, and demand is coming from north of Umdloti up to Richards Bay. “Despite the tough nature of the market, the region remains one of our key markets. We aim to adouble our sales in the region from our KZN branch this year,” concludes Khaled. b

Raleshaba Moeng (right) of CVC Africa takes delivery of the new Hidromek HMK62SS mini-TLB from Dave Khaled of Maximum Equipment.

competitive brands – are testimony to the machine’s ultimate tool carrier ability. Simons is also very happy with the support provided by Maximum Equipment’s Durban branch. “Our machines are serviced once every month. The support from Maximum Equipment has been very good thus far,” he says. Dargle Plant Hire took delivery of its Hidromek HMK 220 LC excavator in June this year, which is being used in general civils and forestry applications, according to director Chris Correia. Commenting on the new acquisition, Correia says the Hidromek is definitely a premium machine that is perfectly suited for all the company’s taxing applications. “The Hidromek is definitely a major brand and we have had quite a lot of interest and enqui- ries from our clientele. One of the biggest features that appeals to me is the electronic start-up sequence which locks the operator out of control until the computer has run the engine and pumps through its warm up procedure,” says Correia.

Correia is also full of praise of Maximum Equipment’s support. “Maximum Equipment has provided us with personalised and excellent service, which is quite difficult for any other big supplier to match. They also keep specific stock of replacement and service parts specifically for us at their closest branch to our main office and also do regular checks on us,” he adds. “ Furthermore, we have been so impressed with the fuel usage stats we are getting from the Hidromek HMK 220 LC. We really couldn’t believe how light the machine’s fuel burn was and we thought that the specific site it started on had factors that contributed to this, but we have been pleasantly surprised at all subsequent sites that the machine has been deployed. It had continued to show surprisingly low fuel usage while delivering excellent performance,” adds Correia. Elsewhere, CVC Africa has taken delivery of its new Hidromek HMK62SS mini-TLB. It specialises in enterprise and supplier development, helping start-up companies in various fields, including construction and engineering, find their feet in the industry by providing both equip- ment and training. Partner Raleshaba Moeng says this programme, the company has had over 400 companies on its books over the past three years, and some 80 entities are currently going through the programme. The Hidromek HMK62SS mini-TLB will be primarily used for training purposes. “Due to its compact size, the machine is ideal for our training programme. We opted for the Hidromek because we wanted a reliable piece of equipment. The warranty was also a key consideration in our buying decision, given that the machine will change a lot of hands during training,” says Raleshaba, adding that Maximum Equipment’s support footprint was also a key

CAPITAL EQUIPMENT NEWS SEPTEMBER 2019 15

MEDIUM COMMERCIAL VEHICLES

Gaining considerable ground

Armed with a simple, well-priced and rugged product that is complemented by good aftersales support regimes, "value" truck makers are slowly, but surely, gaining considerable ground in the medium commercial vehicle market in South Africa. A case in point is Powerstar with its FT range, which strikes a healthy balance between quality, price and effective backup support, writes Munesu Shoko .

T he medium commercial vehicle segment is a tightly contested market in South Africa. Japanese manufacturers are traditionally known to be the leaders in this market segment, with many years of dominance. In recent years, Chinese manufacturers have started to challenge for a share of the market with a product that has continuously evolved over the years. Improved build quality and better aftermarket footprints are some of the key pillars of growth. The simple, rugged product directly speaks to the needs of the “value” driven customer seeking reliability at a lower price point. Last year, Powerstar, supplied locally by Ever Star Industries (ESI), became the latest Chinese original equipment manufacturer to enter the fiercely contested South African medium commercial vehicle segment following its joint venture with Foton. The venture allowed ESI to offer vehicles in the 4 t, 5 t, 7 t and 8 t segment for the very first time.

CAPITAL EQUIPMENT NEWS SEPTEMBER 2019 16

A year later, Rodney Selesnick, senior head: Sales and Marketing at ESI, tells Capital Equipment News that the FT range has fared very well during its first year in the market. “By December 2019, we should be well on target to have sold some 300 units since the introduction in mid-2018,” he says.“We have done fairly well during our debut year with the FT product range. We initially, in 2018, launched the first two units – the FT3 (3,5 t chassis) and FT5 (5 t chassis) last year, and followed that up with the FT8 (6,5-7 t chassis) earlier this year,” says Selesnick. “We were initially sceptical about the uptake of the FT8, but we have actually sold out our initial stock, surpassing our expectations.” A key competitive edge is the robust, but competitively priced product that comes with no extra “bells and whistles”, yet it it meets all expectation. Selesnick believes that there is definitely an appetite for a right-priced, but properly supported truck in this market segment. With that balance, the same recipe which has seen Powerstar becoming a dominant force in the construction vehicle segment of the local extra heavy commercial vehicle market, ESI believes it is properly armed to rival the dominance of the Japanese offering, which obviously has a large piece of the pie in the medium commercial vehicle market. “We are very happy with our first year numbers. We have definitely brought in a product that is, first of all, priced right, and secondly, has the ability to deliver the same job as well as its Japanese competitors. We have also allocated the product to specialist dealers to sell and service it. The selected dealers are not only trained technicians in their own right, but they are properly trained and certified by the original component suppliers, Cummins, ZF and Webco,” he says. Product quality From a product perspective, the Powerstar FT range is in the same high-quality technology bracket as the other Powerstar products. The range is powered by Cummins engines and is driven by ZF drivetrains. Several Chinese truck manufacturers have over the years leveraged the Cummins and ZF componentry as their competitive edge. However, Selesnick argues that while some of the competitor trucks are powered by Cummins and are surely driven by ZF transmissions, the warranty is not carried by the local Cummins and ZF entities; it is actually carried by OEMs in China. A key competitive edge of the Powerstar FT range is that support of these components is done

Ever Star Industries launched the Powerstar FT range last year, allowing the company to offer a medium commercial vehicle for the first time.

“We are very happy with our first year numbers. We have definitely brought in a product that is, first of all, priced right, and secondly, has the ability to deliver the job as well as its Japanese competitors.”

Rodney Selesnick, senior head: Sales and Marketing at Ever Star Industries

TALKING POINT

Equipped with a simple, well-priced and rugged product that is complemented by good aftersales support regimes, "value" truck makers are challenging for a sizeable share of the medium commercial vehicle market in South Africa

The simple, rugged product directly speaks to the needs of the “value” driven customer seeking reliability at a lower price point

Last year, Powerstar, supplied locally by Ever Star Industries, became the latest Chinese OEM to enter the fiercely contested South African medium commercial vehicle segment following its joint venture with Foton

The Powerstar FT range has fared very well during its first year in the market, and ESI expects to meet on its 300- unit target by December this year

QUICK TAKE

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MEDIUM COMMERCIAL VEHICLES

been prioritised to ensure that all products are supported in line with OEM expectations throughout the dealer network,” says Selesnick. Key challenges While the product is seemingly proving itself, there are several challenges that Selesnick believes are holding back the market. Top among them is the general tough nature of the economy in South Africa, which has had an adverse impact on the truck market at large. To give an idea, Selesnick refers to the declining trend of the medium commercial vehicle market between 2017 and 2019. Looking at the equivalent of the FT3 segment, a market that was about 1 500 units per year in its heydays, has since shrunk to 1 000 units per annum. Another challenge, according to Selesnick, is the general disdain that the Chinese product has been viewed with over the years. “The challenge of bringing a new Chinese product is that the market has previously been infested by a lot of ‘fly by nights’ and customers are very wary of that, given that South Africa is a mature buying market. It takes time to dispel the negative sentiment by proving that the product can actually do what you say it does, and proving that you can offer the necessary backup support,” he says. While this product speaks directly to the new, upcoming fleet owner, Selesnick says a big challenge for this group of customers is lack of financing, especially considering that banks’ appetite for risk is low during tough economic cycles. “We see a lot of new fleet owners trying to establish themselves, but the stumbling block is that while they may have the acumen to do business, being able to finance the product isn’t easy in this economic climate,” says Selesnick. Selesnick believes that the government can play a bigger role in helping these SMMEs find the traction they need in a merciless trading environment. For example, he believes that the transport department can encourage ways to put new commercial vehicle fleet owners on the road, probably by engaging banks to see if there is room to help these entities get finance to buy the trucks they need. “For me, transport is not just about policing of the road, it’s about creating opportunities for new trucks to be licensed, thus more revenue for the government. Licensing of vehicles and trucks is a huge income generator for the government and I think it’s time the government prioritises the commercial part of the transport industry more,” concludes Selesnick. b

The Powerstar FT product range offers the same high-quality technology bracket as the other Powerstar ranges.

locally by Cummins and ZF themselves, and the local arms of these companies were actually part of the testing and approval process of the truck before its introduction in the local market. “The reliability of the trucks has also been very high. During the period we have offered the product, we have measured the warranty claim rate, which is a good yardstick of the truck’s reliability, and it has been excessively low,” says Selesnick. Judging from the feedback from customers, Selesnick says the truck’s fuel consumption statistics have also been very good. This is definitely a key parameter for cash strapped truck owners who are already feeling the pinch of a tough economy. The truck is powered by a Euro III engine, which is not far behind the rest of the pack in this market segment. In fact, some of the Japanese manufacturers are said to be still running a Euro II spec. “The FT product is not at the bottom end of the value market, it is a mid-tier offering that fits just under the Japanese product. The new products that we will soon launch in the market will start to rival the Japanese closely in terms of the specification and quality, but obviously the price point will change. However, when the client base has trust in the brand and has seen the value in the original pricing, they will see value in the next generation despite the change in the price point,” says Selesnick. From a technology point of view, Selesnick says the medium commercial vehicle segment by its very nature is not

high-tech driven market, except for the advent of the automated transmission (AMT) that has over the years become a major trend. “My view is that AMT is actually reaching its saturation point in this market segment. It had its buzz time, and I think that long haul is a segment of the market that enjoys it most but the costs associated with it are prohibitive, especially for the medium commercial vehicle sector,” he says. He adds that the AMT drives the price point of the truck beyond the affordability reach of most emerging truck owners, who are the key target market of this range. Support matters Having a good product is one thing, and being able to offer crucial backup and parts support once the product is operational in the field, is quite another. Based on a clear understanding of this notion, ESI has over the years invested in a strong dealer network across the region, complemented by its financial strength to keep a sizeable inventory of parts to better service its customers operating in the market. “The Powerstar FT build quality at our Pietermaritzburg plant, as well as the aftermarket parts and service regime, are key factors in the early growth of the range. In support of the new Powerstar FT range, we realigned and strengthened our dealer footprint with some significant names that joined our distributor family. The new dealers are financially strong and culturally in-sync with ESI’s values. Training has also

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5G NETWORK

Is 5G the key to unlocking mining autonomy?

T he adoption of fifth generation network, better known as 5G, will drive new expectations for an always-on, high performing network and services, which will enable many organisations to embrace automation. This is especially true for an industry like mining, where automation will allow operations to take people out of harm’s way, given the industry’s quest for Zero Harm by 2020. Equally important will be the increased uptime, considering the industry’s drive for improved productivity against a background of depleting ores. As with its predecessor 4G, 5G was developed in a direct response to the growing number of mobile devices seeking an internet connection; however, today it’s no longer just about connected phones or tablets. The rise of 5G coincides with the explosion of connected devices and systems associated with the Internet of Things (IoT).

As industrial collaborations in the development of fifth generation network continue apace, will 5G unlock the mining industry’s quest for zero accidents

and zero unplanned stops through automation? By Munesu Shoko.

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QUICK TAKE

The rise of 5G coincides with the explosion of connected devices and systems associated with the Internet of Things

Today’s mining vehicles all bring with them large amounts of data. Processing the high volumes of data, at a faster speed, requires new antennas, new devices and new applications for wireless data

In addition to more processing power, 5G promises speeds 10 times faster than those of 4G

Today’s mining vehicles all bring with them large amounts of data. Processing these high volumes of data, at a faster speed, will require new antennas, new devices and new applications for wireless data. No matter what the setup looks like, the influx of additional data – which will need to be processed in real-time – is driving the need for a faster network. In addition to more processing power, 5G promises speeds 10 times faster than those of 4G. It is for this reason that the industry is investigating how the fifth generation technology can operate successfully on an industrial scale. By investigating the use of remote-controlled machines over 5G for

Telecommunications company Ericsson installed a 5G mast at the Technology Centre in Eskilstuna, Sweden, in March to allow Volvo CE to test remote- controlled machines with extremely short response times over the next two years A test autonomous beCloud network using 5G technologies, working in conjunction with the LTE- Advanced Pro network, has been deployed at the BELAZ plant in Belarus. This is a prototype of the future 5G network

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5G NETWORK

The BELAZ robotic dump trucks are the key element of the Intelligent Mine project.

dangerous applications like mining, Volvo CE believes it is moving closer to fulfilling its ambitions to deliver zero emissions, zero accidents and zero unplanned stoppages. Meanwhile, BELAZ unmanned dump trucks, which are among the biggest in the world, have begun working at a test site in the town of Zhodino in Belarus using 5G. The test zone has been created by infrastructure operator beCloud, in partnership with BELAZ and VIST Group (part of ZYFRA Group). Key partnerships As the industry continues to test 5G technology to assess its capabilities for effective application, will this unlock the key to mining automation? Telecommunications company Ericsson installed a 5G mast at the Technology Centre in Eskilstuna, Sweden, in March to allow Volvo CE to test remote-controlled machines with extremely short response times over the next two years. Launched in partnership with operator Telia, this was Sweden’s first 5G network for industrial use. At the Technology Centre Volvo CE is currently testing a ‘tele-op’ L180H wheel loader prototype for standard tasks like filling the bucket with gravel and loading a hauler. Volvo’s HX2 autonomous, battery-electric load carrier is also being tested on 5G. The wheel loader runs in a 25 ha arena designed to mimic the real conditions of a mine site with a number of physical barriers, uphill and downhill tracks and rough terrain. It is operated from a simulator located inside a tent 100 m

away behind a concrete wall. “At the moment, the simulator is only near the track to adjust the conditions. There really is no reason that the machine couldn’t be located much further afield,” says Calle Skillsäter, Volvo CE’s technical specialist for Connected Machines. “The testing is in an early phase and the network is continuously improving so it is hard to communicate any results this early. However, what we can see is that the bandwidth is very impressive,” he adds. The 5G research came out of the 2017 Industrial Mobile Communication in Mining (PIMM) project, a collaboration between Volvo CE, Telia, Ericsson, RISE SCI, ABB, Lulea University and Bolinden. The project placed a Volvo wheel loader 400 m below ground in the Bolinder Kankberg mine, which was successfully controlled using wireless 4G. “This project showed us the real potential for remote operation,” says Skillsäter. “By eliminating the potential safety hazards and downtime associated with operations like mining, we can move closer to fulfilling our ambitions to deliver zero emissions, zero accidents and zero unplanned stops.” Elsewhere, a test autonomous beCloud network using fifth generation technologies, working in conjunction with the LTE-Advanced Pro network, has been deployed at the BELAZ plant in Belarus. This is a prototype of the future 5G network. Sets of equipment that meet the technical specifications of the 5G standard have been installed on two heavy trucks – a pit dump truck and a

loader. The standard technologies used (New Radio and LTE-Advanced Pro) have enabled VIST Group technicians to test unmanned vehicle control, as well as the operation of dump trucks in robot mode (the Intelligent Mine project). Why 5G? Today’s remote control technology provides a delay which makes it very difficult to control a machine with any speed or precision, but 5G will provide a more reliable connection – as good as real time. “The technology will benefit many applications but especially mining,” says Skillsäter. “Mining can be dangerous – either for people operating the machines in remote locations or because of the fumes that are released after blasting rock. But if we can remove people from the site, then we are reducing the risk of accidents entirely.” “You will also have the capability to operate several operations and sites from one central location – increasing productivity,” adds Skillsäter. For autonomous vehicles, a system that scans and analyses the nuances of the geological situation should transmit information with a minimal delay time. The beCloud specialists working with BELAZ have now managed to reduce the response time of the equipment to 10-11 milliseconds, which is less than the time achieved in the 4G network but more than expected in future 5G networks. beCloud experts are continuing to fine-tune the equipment and optimise communication channels to achieve the best performance.

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