Capital Equipment News May 2018

For informed decision-making MAY 2018

High production at lower cost per tonne

COMPACT EQUIPMENT: Reinforcing the compact strategy

ENGINES AT THE HEART OF EVERY APPLICATION PAGE 10

SAFETY PRODUCTS: Getting the better of mining fires

LIGHT DUTY TRUCK: Driving new trucking standards

HIGH PRODUCTION AT LOWER COST PER TONNE

CONSTRUCTION NEWS 31 Caterpillar launches new three multi- processor models 32 Bell announces important global investments MINING NEWS 34 Metso helps Ghana mine double valve lifespan 35 New Osborn innovation makes jaw crusher liner lifting safer 36 Kwatani's huge screen order TRANSPORT & LOGISTICS NEWS 37 It's all about the right fit 38 Premiere for Volvo Trucks' first all-electric truck MATERIALS HANDLING NEWS 39 New Potain components unveiled at Intermat AGRICULTURE NEWS 43 Wacker Neuson expands Northern Cape footprint COVER 4 High production at lower cost per tonne SAFETY PRODUCTS 6 Getting the better of mining fires ENGINES 10 At the heart of every application COMPACT EQUIPMENT 14 Reinforcing the compact strategy COMMERCIAL VEHICLES 18 Top of the pile LIGHT COMMERCIAL VEHICLES 22 Driving new trucking standards PROFILE 26 Road to eTrucks THOUGHT LEADERSHIP 28 So how does telematics actually work? CONTENTS Capital Equipment News is published monthly by Crown Publications Editor: Munesu Shoko capnews@crown.co.za Advertising manager: Elmarie Stonell elmaries@crown.co.za Design: Anoonashe Shumba Publisher: Karen Grant Deputy publisher: Wilhelm du Plessis Circulation: Karen Smith PO Box 140 Bedfordview 2008 Tel: (011) 622-4770 Fax: (011) 615-6108 www.crown.co.za Printed by Tandym Print The views expressed in this publication are not necessarily those of the editor or the publisher. FEATURES REGULARS Total circulation Q1 2018: 4 136

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EDITOR'S COMMENT

STATING THE CASE OF THE ELECTRIC REVOLUTION

I recently visited the Netherlands on a business trip, and one of the major talking points for me was that electric cars are fast becoming a common sight on the country’s roads. We would all agree that alternatively fuelled vehicles are an important part of reducing the global carbon footprint. European companies have put most of their focus on the e-mobility components of the charging infrastructure and services, which have always been the stumbling block as far as rolling out electric cars is concerned.

When looking at one of the e-mobility sectors, electric cars, figures show that their numbers have grown dramatically in the past year. The number of electric passenger cars on the road in the Netherlands amounted to approximately 115 000 in 2016, more than double the amount in 2014. Elsewhere, there are more than 90 000 electric and plug-in cars in the UK. construction equipment eventually follow. We have already seen some commercial truck launches from major OEMs and the revolution is set to continue unabated. For example, in July 2017, Daimler celebrated the start of production of its Fuso eCanter, said to be the world’s first all‑electric light-duty truck. Elsewhere, Volvo Trucks has introduced its first all-electric truck for commercial use – the Volvo FL Electric for urban distribution and refuse operations, among other applications. Sales and series production of the new model will start in Europe next year. As you will see in the Profile section of this edition of Capital Equipment News , the case for electric trucks is becoming more compelling globally and by 2025 the global light/medium/heavy-duty hybrid and full electric truck segments are expected to achieve annual sales of more than 2,25 million units. The market is currently about 61 000 units across the globe. From a construction equipment perspective, the electric revolution is also taking shape. In 2016, I attended Volvo Construction Equipment’s famous Volvo Days in Sweden, where the OEM demonstrated its EX2 – a fully electric compact excavator said to deliver zero emissions, 10 times higher efficiency, 10 times lower noise levels and reduced total cost of ownership than its diesel-powered counterparts. However, Volvo’s innovation is still a prototype and there is no set date for commercial rollout. Earlier this year, JCB announced it had It’s normally the case that where automobiles go, trucks, buses and

developed its first ever electric digger in response to customer demands for a zero emissions machine that can work indoors, underground and close to people in urban areas. The 1,9-t mini-excavator can be charged by simply plugging it into a standard 230 volt domestic electricity supply. Long term, it looks like the ownership costs of running hybrid and electric trucks and construction machines will be substantially lower. From a user perspective, of course the big gain will be lower diesel costs. But how much should the customer allocate for battery life and replacement? Or the maintenance of electric motors? In my conversation with a mobility expert from Frost & Sullivan, he alluded to the fact that policy and emission regulations form part of the legal and social agendas pushing for alternatives to combustion engines. But, from a cost-effectiveness point of view, how will electric trucks, for example, compare to their petroleum counterparts in terms of total cost of ownership for the end user? He reasons that right now, electric trucks won’t reach cost parity with their gasoline, diesel or NG counterparts, unless supported by incentives and subsidies. Depending on the truck segment, it is expected that electric trucks will make economic sense only post 2019 for LCVs (less than 6 t GVW), post 2022 for medium duty (MD) trucks (greater than 6 t to 16 t GVW), and post 2024 for heavy duty (HD) trucks (greater than 16 t GVW). Added to this is that battery costs and performance restrictions are the main reasons why eTrucks are still struggling to make a mark. Consequently, I am of the view that the arrival of electric, hybrid or even autonomous machines will undoubtedly drive down the total cost of ownership. However, these new forms of equipment won’t fundamentally change the complexity – or importance – of accurately calculating total cost of ownership.

Munesu Shoko – Editor

capnews@crown.co.za

@CapEquipNews

CAPITAL EQUIPMENT NEWS MAY 2018 2

COVER STORY

HIGH PRODUCTION AT LOWER COST PER TONNE Barloworld Equipment delivered the first three Cat 777E off-highway trucks in Africa to Exxaro Coal’s Leeuwpan mine in Mpumalanga, South Africa, in March 2017 and has since sold more than 70 units to customers across southern Africa.

T he Leeuwpan trucks, supplied with larger coal bodies for optimum pro- duction, were among the first Cat 777Es to come off the production line at Caterpillar’s off-highway truck manufac- turing facility in India. The mine has since taken delivery of three more Cat 777E trucks and further orders are anticipated. Nico Geldenhuys, Caterpillar certified sales professional at Barloworld Equipment Middelburg, was responsible for the first sale of the new model into Africa. “Leeuwpan is a long-term Barloworld Equipment customer and has a fleet of 12 Cat 777F trucks on site that have provided excellent reliability through the years,” he explains. “The new 777E trucks replaced competing 100 t capacity machines in line with the customer’s wish to standardise to Cat trucks.” “Leeuwpan is achieving average mechanical availabilities of 90% from its 777E fleet and the operators love the new ergonomically designed Cat comfort cab that helps prevent fatigue,” says Geldenhuys. The new model has been well received by the local market as the successor to the respected Cat 777D model. Among several other orders, Liviero Mining purchased 16 x 777Es from Barloworld Equipment in 2017 and the units are performing well on various coal mines in Mpumalanga. “We expect Liviero to start replacing its older 777D models with the new 777E in the near future,” says Geldenhuys. The Cat 777D model was launched in 1996 and has been a firm industry favourite for more than 20 years, largely due to its durability and reliability. The new Cat 777E provides several enhancements based on customer feedback around the world. In addition to the updated 777E, customers

also have the choice of the premium high spec 777G. Key improvements Customers can expect to achieve lower cost per tonne with the 777E through improvements in productivity, fuel economy, durability and maintenance costs. Geldenhuys explains that the new model offers the highest payload and best safety features in its class. “The Cat 777E trucks are well priced and offer the same C32 ACERT technology engines as the F series, as well as other interchangeable components,” he says. “The 777E, with the C32 ACERT Tier 2 engine, has a lower fuel burn rate than the Cat 777D’s 3508B engine. The 500-hour oil change intervals have doubled from the 250 hours specified on the 777D. The new truck also has the option of sealed wet brakes all round and not just at the rear,” adds Geldenhuys. “The more efficient design of the E series makes it 7 t lighter than competing trucks. It also comes standard with the technology to connect to Equipment Management Services (EMS) for improved machine management and maintenance. EMS gives Barloworld Equipment customers the ability to listen to their machines and make decisions about maintenance, parts and operator training,” he says. Fuel economy The Cat C32 engine provides 758 kW of gross power compared to 746 kW on the 3508B engine in the 777D model, delivering 5% savings in fuel. The Tier 2 rating of the C32 translates into lower emissions than the Tier 1 rating of the

The new 777E is the successor to the respected Cat 777D model.

previous 3508B engine. Several new features come standard or as options on the Cat 777E, further contributing to fuel savings. For example, an Auto Neutral Idle feature engages with idling in forward gear, placing the transmission in neutral to save fuel. Forward gear is reinstated when the controls are touched. The optional Engine Idle Shutdown feature automatically shuts the engine down to conserve fuel after a period of idling in the park position. The timing of the shutdown can be programmed according to conditions and requirements. Overload Speed Limiter can also be enabled for effective hauling of the target payload. A warning is issued when operating conditions exceed acceptable limits, prompting the operator to run the truck at its most efficient engine rpm and gear, again saving fuel as well as improving component and tyre life. The operator can also select an optional Economy Mode, which reduces engine power by 10%. Convenient servicing Servicing, the bugbear of mining equipment owners, is even more convenient in the 777E with engine oil changes extended to 500 hours and hydraulic filter life extended

CAPITAL EQUIPMENT NEWS MAY 2018 4

• The first three Cat 777E off-highway trucks in Africa were delivered by Barloworld Equipment to Exxaro Coal’s Leeuwpan mine in Mpumalanga, South Africa, in March 2017 • Since then, a total of 70 units has been sold in southern Africa • The efficient design of the E series makes it 7 t lighter than competing trucks in the 100 t size class • Customers can expect to achieve lower cost per tonne with the 777E through improvements in productivity, fuel economy, durability and maintenance costs

interface for Operator, Monitor, Payload, Service, Settings and Service mode. To help operators optimise productivity and prevent premature wear, the Truck Production Management System, incorporating strut pressure sensors and on-board computing, together with a scoreboard on the exterior of the truck, can be installed to indicate under- and overloading. Safety, as always, has been prioritised with a new industry-leading four-point access system that is stronger and wider, and joystick gearshift control with inbuilt parking brake control. Other safety features include delayed engine shutdown to allow system components to cool down, which also extends component life, and engine crank lock out to lock the engine and disable the starter during servicing. The durability of the Cat 777 series continues with a new truck frame design that excludes bumper extensions, increases the strength of the front bumper and improves the approach angle of the truck. Geldenhuys believes the 777E will quickly become entrenched in Barloworld Equipment’s markets. “We have several customers who own 777D trucks and want to expand or replace existing fleets with the E series. There are also new projects starting up that will need 100 t trucks. The Cat 777E provides excellent value for any hauling requirement,” concludes Geldenhuys. b

The 100 t Cat 777E is said to provide greater value for any hauling requirement.

to 1 000 hours. In addition to the ground level access to the electrical service centre and option of grouped grease points, a new optional fluid service centre is available with fluid level indicators on a keypad.

enhanced diagnostic capability and reduce downtime and operating costs.

Operator station The cab interior has been completely

redesigned to provide better visibility and comfort for operators. The operator station includes a new dashboard, gauge cluster and centre console, as well as a significantly larger advisor display as the main menu

The EMS technology can provide critical power train data, including

transmission shifting, engine speed and fuel consumption, to give service technicians

CAPITAL EQUIPMENT NEWS MAY 2018 5

SAFETY PRODUCTS

The DAFO system can be deployed on surface mining gear such as haulers.

Getting the better of mining fires

I t is no secret that the mining industry is under pressure. In the short term, rebounding commodity prices have offered some reprieve, but plenty challenges remain. Many existing mines are maturing, resulting in lower ore grades. This is exacerbated by ever-increasing operational expenses, especially considering the rising energy costs and the longer haul distances from the face to the processing plants as ore grades continue to deplete.

In a development that gives its mining customers a competitive and cost advantage, PDS specialist Booyco Electronics, has added the latest fire suppression technologies to its stable, becoming a one-stop shop for the mining sector’s health and safety equipment needs, writes Munesu Shoko.

Furthermore, at a time when mines are battling with increased fatalities due to the risks posed by unsafe mine faces, implementing safety systems is

no longer just about meeting legislative requirements. It is for this reason that single source alliances when it comes to the procurement of safety technologies –

CAPITAL EQUIPMENT NEWS MAY 2018 6

where one established supplier services all the health and safety needs from proximity detection systems (PDSs) to fire detection and suppression systems on trackless mobile machines (TMMs) – are more critical than ever. With that in mind, Booyco Electronics has added the DAFO range of vehicle fire protection and the FirePro line of aerosol- based extinguishing systems to its stable. Speaking to Capital Equipment News , MD Anton Lourens says effective fire detection and suppression systems are becoming a pressing issue for mines, especially on the back of new SANS 1911 standard set to be introduced by SABS. Leveraging its prominence in the local PDS industry, validated by the recent landmark 5 000 th installation since 2006, Booyco is one of the first few suppliers to market with fire suppression technologies that already meet the new SANS 1911 standard. Lourens says that SABS resolved to adopt SPCR 183 and SPCR 199 standards with its associated rigorous testing methods as established by the Research Institute of Sweden (RISE). “Systems with proven compliance to these standards are issued with the renowned “P” Mark and by extension all systems installed onto TMMs should be required to have “P” mark certification in adherence to SANS 1911.” “Dafo Forrex is one of only six systems that has achieved the “P” Mark and we would recommend that all end users consider only these systems as they have been tested under 11 real scenario fire conditions and were able to effectively extinguish fires,” he says. Non-compliant systems should not be considered as they may have been tested against much more lenient standards and have not been proven to be effective at combatting realistic fires. Lourens says that it is even advisable to consider replacing non-compliant systems with approved Dafo Forrex systems as human life should not be trifled with. First to market The introduction of the DAFO and FirePro systems sets Booyco Electronics as one of the pacesetters in offering the latest fire suppression technologies that already meet the soon-to-be adopted standards. Booyco Electronics entered into a preferred distributor agreement with Advanced Automation Systems (AAS), the exclusive supplier of DAFO’s vehicle fire protection systems and FirePro’s fire suppression systems late last year. “We signed a preferred supplier agreement with AAS during the third quarter of 2017. Offering fire suppression systems was a

Dafo Forrex is one of only six systems that has achieved the “P” Mark.

Booyco is one of the first few suppliers to market with fire suppression technologies that already meet the new SANS 1911 standard.

FirePro products are non-corrosive, non-conductive, non-toxic and environmentally friendly.

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Booyco Electronics has added the DAFO range of vehicle fire protection and the FirePro line of aerosol-based extinguish- ing systems to its stable

P

Systems with proven compliance to these standards are issued with the renowned “P” Mark

Booyco is one of the first few suppliers to market with fire suppression technologies that already meet the new SANS 1911 standard

Booyco Electronics has already supplied a couple of units to the mining industry, and the focus is initially on South Africa before rolling out into neighbouring countries

“The wet chemical fire suppression systems work effectively because the liquid spray hits a burning surface and quickly reacts to produce foam that cools the surface to prevent re-igniting of the fire.”

Anton Lourens, MD of Booyco Electonics

TALKING POINTS

CAPITAL EQUIPMENT NEWS MAY 2018 7

SAFETY PRODUCTS

natural extension for our business and adds value to our existing customer base in the mining and related industries,” says Lourens. It was only after an intensive due diligence that Booyco Electronics made the decision to enter into the distribution agreement. “We wanted to associate ourselves with high quality products, considering we have already built a strong reputation for ourselves in the mining industry. We opted for the DAFO and FirePro products mainly due to their reputation in the fire suppression space. They offer the very latest technologies that meet the up-to-date industry standards. We are convinced that the products are among the very best fire suppression technologies available in the market right now,” adds Lourens. Product range DAFO is a renowned name in the fire suppression industry. The Swedish- based manufacturer of fire suppression technologies has sold more than 100 000 systems to leading original equipment manufacturers such as Volvo Construction Equipment, Atlas Copco, Caterpillar, Scania, Sandvik, Komatsu, MAN and John Deere, among many others. The DAFO system can be deployed on load-haul dumpers, utility vehicles and other underground mining machines, as well as surface mining gear such as face shovels and haulers. It is also ideally suited for conveyors and other materials handling pieces of equipment. Fires in these vehicles often take hold very quickly and are hard to extinguish with a handheld extinguisher. A correctly dimensioned vehicle suppression system offers fast, effective protection that limits the consequences of the fire. DAFO’s wet chemical based system is engineered to restrain the chemical reaction of the fire, while effectively cooling the hot surface before creating a thick layer of foam to avert further re-ignition. Lourens explains that this is an important step forward from existing dry chemical powder-based fire suppression systems, which either extinguish by suffocation or by chemical inhibition, but still don’t address the issue of cooling, which is very important if the fire is to be completely extinguished with no room for a possible re-ignition. “The wet chemical fire suppression systems work effectively because the liquid spray hits a burning surface and quickly reacts to produce foam that cools the surface to prevent re- igniting of the fire,” explains Lourens. With installations across over 110

From a product perspective, Lourens says powder-based systems have their limitations. One of the downsides of this system is that due to machine vibration, the powder solidifies, and in case of a fire, it might not be in the right state to effectively put out a fire. “Another disadvantage is that once the machine has been extinguished using a powder- based system, it is out of service for a couple of days due to maintenance and cleaning requirements. With the wet system, there is no such maintenance required because there is no solidification and the machine can be up and running in a very short space of time,” says Lourens. Slow uptake Booyco Electronics has already supplied a couple of units to the mining industry, and the focus is initially on South Africa before rolling out into neighbouring countries. Lourens says there has been a slow uptake of the new fire suppression systems. “It’s mainly because it’s early days for us and it is not an area that we are well-known for,” he says. Lourens adds that many of Booyco’s existing customers already have systems in place, and current opportunity to offer its fire suppression technology is only when customers buy a new machine. He is of the view that several customers may only migrate to wet chemical fire suppression technologies once their existing systems have reached the end of their lifecycles. “Typically the lifespan of a fire suppression system is 2-3 years. As operations get to a point where they need to replace, it will be the best time to convert to a system that conforms to the new standards,” says Lourens. He adds that the migration from a powder-based system will also allow customers to have a system that has a 10-year lifecycle before it needs to be replaced, which is a significant improvement on the 2-3-year cycle on conventional systems. As a result of the new standard, Lourens believes that the market will soon be flooded by new entrants, but like in the PDS industry, he cautions that it’s important to deal with a reputable supplier that can offer a proven product that is well supported for effective technical and bottom line performance. “Traditionally there has been only two or three significant players in this industry. However, with new standards we have already seen a couple of new entrants. For us, our objective is to get about 30% of the market share in the next three to four years,” concludes Lourens. b

countries, FirePro Systems is a leading global provider of condensed aerosol fire extinguishing technology. Parallel to conventional ways, FirePro aerosol puts out fire by restraining the chemical chain reactions present in combustion on a molecular level, removing the flame-free radicals and extinguishing fire without depleting oxygen. The aerosol is stored as a solid substance with no form of pressure, giving it a prolonged life span with no maintenance requirements whatsoever. The FirePro products are also non-corrosive, non-conductive, non-toxic and environmentally friendly. “These systems can therefore protect enclosures of any volumetric size, from less than a cubic metre to thousands of cubic metres. This makes them suitable for a varied range of equipment such as motor control centres, electrical panels, substations, mini-substations, e-houses and electrical mining skids,” explains Lourens. Key advantages According to Lourens, Booyco Electronics’ decision to extend its product offering with fire detection and suppression systems is strategic in a number of ways. As a supplier of PDS technology to the mining industry for many years, Booyco Electronics understands the impact that safety products installed on a piece of equipment have on each other. “We have had incidents in the past where fire suppression service providers mistakenly tampered with our PDS systems when they are doing maintenance on their technologies. The same could have happened on our side as these systems are somehow linked to the same machine interface,” explains Lourens. He adds that it makes sense for customers to deal with a single supplier that is responsible and accountable for both the safety systems on a piece of equipment. “Having a direct and accountable individual servicing both PDS and fire technologies is a great value add for our customers from an uptime and cost saving point of view,” says Lourens. From a personnel point of view, Booyco Electronics has already employed a group of staff that specifically looks after the fire suppression systems, initially just to assist with installations. All the regional staff have undergone intensive training on the systems to be able to demonstrate the benefits to existing customers. However, the intent is to get existing PDS technicians to be able to support the new product as well.

CAPITAL EQUIPMENT NEWS MAY 2018 8

ENGINES

Scania engines are deployed across a variety of applications across Industrial, Marine and Power Generation sectors.

At the heart of every application Scania engines are at the heart of many industries globally, and have become standard in an array of applications. This, coupled with an engineering prowess that champions quality, reliability and total operating economy, as well as unparalleled backup support, allows Scania South Africa’s Engine Division to maintain a strong share of the local engine market, even in the face of challenging and slow market conditions. By Munesu Shoko

D espite an improved business sluggish. That the market hasn’t seen the best of times in recent years is no point of contention. Johan Lyons, General Manag- er Engines at Scania South Africa, concurs that the sluggish market conditions have also taken a toll on the overall local engine market. He is of the view that the volatile Rand has had a significant impact on the industry at large, with far-reach- ing implications on Scania SA’s export markets. However, he maintains that the Scania SA Engines division achieved positive growth in 2017, despite the tough trading conditions. Johan Louw, Industrial and Marine Engines Manager at Scania SA, also alludes to the challenging market confidence in the local market, the capital equipment market remains

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Principal to Scania’s engine business success is the company’s ability to offer an engine for every application

24 MODELS

There are 24 Scania engine models available for the local power generation market

CAPITAL EQUIPMENT NEWS MAY 2018 10

conditions, but maintains that Scania SA Engines has managed to maintain a strong share of the market. In fact, the company has powered through the tough times to record an above average market share growth from what it expected from such a slow and volatile market. Success factors There are many factors driving Scania SA Engines’ resilience, and principal to that is the company’s ability to offer an engine for every application. Scania engines are deployed across a variety of applications across Industrial, Marine and Power Generation sectors. From construction and agricultural applications, to port equipment and power stations, as well as special vehicles and machinery, Scania has an engine to suit any specific need. For every engine model – 9-, 13- and 16- ℓ – there is a complete line-up of power ratings to choose from. Between the two of them, Industrial and Power Generation sectors constitute 75% of Scania SA Engines business, according to Louw. Marine engines account for the remaining 25%. There are 43 industrial engines available for the southern African market. With three engine sizes (9-, 13- and 16- ℓ ), power ratings range from 202 to 566 kW. Scania’s industrial engines business largely hinges on strategic international OEM partnerships. Scania engines are found across different equipment ranges, from dump trucks, excavators, crushers, to drill rigs, mobile cranes and overheard gantries, to mention a few. “We have some strategic international agreements with some globally-renowned OEMs such as Terex and Doosan. Locally we do support those engines on behalf of the OEMs,” says Louw. “We have also recently signed an engine supply agreement with Kobelco Cranes at international level, and have since supplied our first engines to the Japanese OEM, further expanding the strategic OEM alliances.” In Power Generation, Lyons says Scania’s business is largely through OEMs. “We assist them to ensure that a right engine is fitted for the right application,” he says. Louw agrees, saying that almost 99% of Scania SA’s Engine business in Power Generation is through OEMs, where one of the largest customers in that regard is Diesel Electric Services, among many others. There are 24 Scania engine models available for the local power generation market. Power ratings start at 250 kVA up to 800 kVA for the diesel-powered range.

For every engine model – 9-, 13- and 16- ℓ – there is a complete line-up of power ratings to choose from.

“2017 was the year I took over to strategise the Engines Division’s trajectory, with particular focus on the Marine side of the business. Another area of attention was stock holding. The key initiative in that regard was to source and keep and right engines for the right applications.”

Johan Lyons, General Manager Engines at Scania South Africa

TALKING POINTS

43 MODELS

There are 43 industrial engine models available for the local market

Scania engines are deployed across a variety of applications across Industrial, Marine and Power Generation sectors

CAPITAL EQUIPMENT NEWS MAY 2018 11

COMPACT WHEEL LOADERS

for example, the railway engine export deal to Brazil. Scania boasts more than 1 900 service workshops across the world, available 365 days a year, thus ensuring high uptime and greater operating economy for customers. Uptime is a word of honour at Scania. The unique Scania modular concept with shared components and systems for all of its engines means higher parts availability, minimised waste and easy servicing for a single technician. In addition, a full 500 hours between oil changes and maintenance boosts uptime even further. Higher uptime equals better business, and ultimately, greater operating economy for customers. “We have a special understanding of the industry and we are well aware that uptime is a very important factor for our engine customers. With our strong sub- Saharan African footprint, we are able to keep the engines running in all corners of the region,” says Louw. Louw adds that a 95% parts stock availability is among the best parts support benchmarks in the industry. “This availability translates into tangible customer benefits. Proximity to service and rapid access to parts are very crucial in this line of business,” says Louw. Optimistic outlook Despite the slow market conditions, both Lyon and Louw are positive about the short to medium-term outlook of the local engine business. “We are very positive. The infrastructure shortcomings tend to drive our engine business” says Louw. “For example, power shortages are a real issue to contend with across the region and we are positioned to offer reliable power generation engine solutions. With water shortages across many areas of the region, due to recent drought conditions in areas such as the Western Cape, we have also seen an increase in demand for water pumping engines.” Lyon is positive that the Engine division will maintain steady growth in 2018, especially considering the current positive political situation in the country, which, to some extent, has ushered in the much-needed business confidence. He is, however, wary of the volatile local currency, which he feels may erode all the possible gains from the better business confidence. “A key focus area for Scania SA Engines division is to further grow our market share, through a very strong, globally renowned product, complemented by unmatched aftersales support capabilities from a very wide dealer network,” concludes Lyons. b

There are 24 Scania engine models available for the local power generation market. Power ratings start at 250 kVA up to 800 kVA for the diesel-powered range.

This is complemented by a gas engine range recently introduced locally last year. “We also have a small range of gas engines we introduced recently, with power ratings from 350 kVA to 460 kVA. There is a big move towards gas-powered engines, and as part of our total solutions approach, we have engines that speak directly to that very need,” says Louw, adding that there are three models available in the gas power generation range. The Scania Marine engine range starts at 220 hp, up to 1 200 hp. “Our Marine engines range goes up to 1 200 hp to accommodate the fishing industry,” says Lyon. There are 16 models available for the local market, though the range is much bigger than that for the global market, says Louw. This is complemented by a Marine gen set engine range with power ratings from 250 kVA to 600 kVA. Dedication is key A new, dedicated divisional structure for the Engines business in southern Africa implemented at the start of 2017, complemented by a capable management team boasting a combined total of 35 years of experience in this market segment, are also paying dividends. Last year, Lyons, who has a wealth of institutional knowledge at Scania SA, was appointed general manager of the newly- created dedicated Engines Division, in a role that he is closely supported by Cape Town-based Louw, who is the manager for Industrial and Marine Engines. Louw has been involved with Scania SA’s engine business for the past 20 years, since its inception locally. He is in charge of the sub-Saharan market at large. “2017 was the year I took over to strategise the Engines Division’s

trajectory, with particular focus on the Marine side of the business. The biggest achievement to date has been the signing of a partnership with a well-known marine OEM to supply and deliver engines and aftersales solutions to the marine industry,” says Lyon. “One of the other areas of attention was stock holding. The key initiative in that regard was to source and keep and right engines for the right applications.” Speaking of some recent flagship deals, Louw says Scania has recently supplied engines to some large export-based projects, which is proof of fruition of the growth initiatives put in place. “We have recently clinched a deal with a large, local railway company to supply engines for an export project into Brazil. This is a very positive development for us, as we seek to cast our net wider into export markets,” says Louw. Apart from sub-Saharan Africa, Scania SA’s Engines Division is also responsible for the islands of Madagascar and Mauritius. In one of the flagship deals, Louw tells Capital Equipment News that the engine maker recently clinched a deal to supply engines to one of the remotest volcanic islands in the South Atlantic Ocean, Tristan da Cunha. “We recently supplied our power generation engines for the island’s power station,” says Louw. Driving uptime A good product is only as good as its service. This is one of Scania’s very strong points. The Engine Division benefits from Scania’s wide service network across the region. The global Scania network also makes it possible for Scania SA to easily service and support its export engines,

CAPITAL EQUIPMENT NEWS MAY 2018 12

COMPACT EQUIPMENT

Smith Power Equipment has secured the exclusive distributorship of the full range of AUSA equipment in southern Africa.

Reinforcing the compact strategy As part of its one-stop shop approach to the provision of compact gear, Smith Power Equipment has signed an exclusive distributorship agreement with AUSA, allowing the local distributor to offer a full range of the Spanish OEM’s equipment in southern Africa, writes Munesu Shoko .

I n line with its compact approach, Smith Power Equipment used the recently-ended bauma CONEXPO AFRICA to present a range of new products from several new international partners, namely AUSA, Haulotte and Italian attachment manufacturer, Cangini. The new distributorship agreements with the internationally-renowned brands further reiterate the local distributor’s pioneering position in the local compact market. Bear in mind that the new ranges join an ever-growing and updated line of compact excavators from leading international manufacturer, Kubota, already distributed locally by Smith Power since 2014. Of interest to Capital Equipment News was the distribution agreement with AUSA, a leading Spanish OEM

renowned for its extensive range of dumpers, rough terrain forklifts and all-terrain telescopic handlers. The exclusive distribution agreement, which allows Smith Power to offer AUSA’s full range, was signed in September 2017. Tom Bloom, general manager for Construction Equipment at Smith Power Equipment, says a key deciding factor in opting for this gear is that it fits perfectly into the local distributor’s

compact strategy. Added to that is the fact that AUSA’s range of equipment is powered by Kubota engines, which are already distributed and supported by Smith Power locally. Mario Torres, regional manager for Africa at AUSA, tells Capital Equipment News that the Spanish OEM is excited to have partnered a well-established dealer of Smith Power Equipment’s stature. He is optimistic

CAPITAL EQUIPMENT NEWS MAY 2018 14

AUSA is a big name in the global dumper market and offers the most varied range in this market segment.

QUICK TAKE

Smith Power Equipment has entered into an exclusive distribution agreement with AUSA, a leading Spanish OEM

agriculture and industrial applications,” explains Bloom, adding that the wide line of off-road and semi-industrial models ranges from 2,5 t to 3,5 t. “We have a specific focus on three models. These are the D150, an entry level model with a 1,5 t load capacity, as well as the D250 (2,5 t) and the D350 (3,5 t). We have initially brought in the D250 and D350 models, and both units have already been sold. We have also imported two Tauralifts, and we are busy closing deals on these machines,” adds Bloom. AUSA is a big name in the global dumper market and offers the most varied range in this market segment. Bloom maintains that compact wheel dumpers are replacing smaller trucks on many construction sites. Due to their compact size, they are now the preferred solution to transport material in particularly difficult terrain and where space is at a premium. The dumper, together with a compact excavator, is a perfect combination for urban construction. The model range includes a rigid chassis dumper with a 1 500 kg payload, as well as the articulated dumpers from 2 500 to 3 500 kg. “There are 4WD, 2WD, mechanical, hydrostatic and torque converter transmissions available in combination with front loading and swivel unloading hoppers. We also have

Smith Power will offer three AUSA rough terrain forklift models offering load capacities from 1,5 t to 3,5 t

The AUSA dumper model range includes a rigid chassis dumper with a 1 500 kg payload, as well as the articulated dumpers from 2 500 to 3 500 kg

AUSA also offers one of the widest line of compact all-terrain telehandlers, with capacities from 1,5 to 2 t

Full range Bloom is mostly excited about AUSA’s range of rough terrain forklifts, which gives the company the much needed traction into arduous working conditions. “AUSA forklifts are versatile machines capable of handling heavy loads on rough and sloping terrain. This makes them suitable for construction, mining,

that the distributorship agreement will further boost AUSA’s business in Africa, a hub which already represents 8-10% of the Spanish OEM’s global business. AUSA has three previous distributors in the local market, but Torres believes Smith Power’s extensive footprint and dedicated compact strategy will be key to further growing the brand locally.

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COMPACT EQUIPMENT

AUSA forklifts are versatile machines capable of handling heavy loads on rough and sloping terrain.

September last year. “With Cangini, we are able to offer a wide range of attachments, from crusher buckets, winches, brackets, quick hitches, to screening buckets, grapples, wood grabs, mulchers, augurs, rippers, broom sweepers and pallet forks,” says Smith. Bloom says the attachment solutions can also be used for other manufacturers’ equipment to allow multi- brand equipment owners to maximise versatility on their different pieces of equipment. However, Bloom reiterates that the Cangini product is predominantly focused on compact equipment, from 14 t tool carries downwards. “We have previously sourced attachments from Cangini to supply to our customers over a number of years, but we have since tied up the exclusive distribution towards the end of last year.” Growing compact market Although the trend towards compact equipment is still very much in its infancy locally compared with international markets, Bloom is adamant that the future is compact and there are clear signs that the market is on a sustainable growth path. Bloom says the 100% sales growth year-on-year since it introduced its Kubota range of mini excavators is testimony that there is a steady uptake of this gear in the local market. However, he believes that education remains key if the market is to further grow locally. “We continue to educate our customers on the greater potential of this gear. Compact equipment is a trend that has been proven globally. Our strategy is to grow this market, through education and demonstration,” says Bloom. Bloom adds that Smith Power is working towards being a one-stop shop for all things compact, and the local distributor will carefully seek further distribution agreements with international suppliers to offer a full, but complementary compact range. “We are aggressive, but also cautious that we continuously offer our customers the best service, while experiencing growth,” adds Bloom. “We are fully aware of the importance of service and we continue to invest heavily in this area of our

Mario Torres (left), with Tom Bloom, at bauma CONEXPO AFRICA 2018.

available options for self-loading shovel, backhoe and sweeper,” explains Bloom. At the time of writing, Bloom expected the first models in the country in May. Meanwhile, AUSA also offers one of the widest line of compact all-terrain telehandlers, with capacities from 1,5 to 2 t. “The range has two models that are highly compact, designed to work in open spaces under very extreme conditions, as well as narrow semi-enclosed spaces with difficult access,” explains Bloom. “The versatility of the telescopic arm allows positioning at height, but also to the front, which makes the range ideal for handling materials on site.” More ranges Apart from AUSA, Smith has also added the Haulotte range of telehandlers to its stable. Haulotte offers three ranges – Compact, High Lift and Heavy Load. The range is said to have a special design focus on minimising operator fatigue through well-laid ergonomics. To allow its customers to further benefit from the versatility of its compact gear, Smith has also extended its product offering with the full range of Cangini attachments. The distributorship

agreement – to cover the whole of southern Africa – was concluded in

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We continue to educate our customers on the greater potential of this gear. Compact equipment is a trend that has been proven globally. Our strategy is to grow this market, through education and demonstration.

Smith Power has imported two Tauralifts, and the supplier is already busy closing deals on these machines.

business,” says Bloom. Smith Power recently opened a new branch in Cape Town in November last year. On March 1 this year, the company opened another branch in Nelspruit, Mpumalanga. The local compact specialist has also invested in additional support vehicles to look after its existing customers and dealers. Meanwhile, the appointment of Eugene Brown, a proven compact expert and former president of Wacker

Neuson’s sub-Saharan Africa business, to head up Smith Power’s sales division is a statement of intent to establish a compact empire in southern Africa. “One of our strengths is our footprint. We currently have over 50 dealers and branches throughout South Africa. We continuously work with our dealers and branches to provide customers with product, solutions and aftersales service,” concludes Bloom. b

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COMMERCIAL VEHICLES

Barloworld Isuzu Trucks Johannesburg is one of Isuzu Trucks South Africa’s flagship dealers, showcased by its Dealer of the Year award in 2017 and many other accolades in recent years.

Top of the pile The heart of any truck dealership is its aftersales capabilities. Based on that operating philosophy, Barloworld Isuzu Trucks Johannesburg’s successes over the years – heralded by the 2017 Isuzu Trucks Dealer of the Year award and a long-standing top sales volumes record – hinged on unparalleled aftersales service strategies that help consolidate sales, build customer relationships and maximise customer retention. By Munesu Shoko

A ftersales service is an important area of modern day business, especially in the commercial vehicles space, and the capital equipment sector at large. End users of this gear regard aftermarket service as a paramount factor in their buying decisions to ensure proper maintenance and maximum uptime of their purchased items. Successful commercial vehicle dealerships are well aware that customer relationships do not necessarily end with the conclusion of a transaction, but are maintained for a product’s entire lifecycle, and even beyond. Based on that understanding, award- winning Barloworld Isuzu Trucks Johannesburg has achieved some tangible successes over the years. Having set the benchmark as the first dealership

to exceed the 500-unit sales mark in Isuzu Trucks South Africa’s history back in 2013, the ultimate feather in its cap was winning the 2017 Isuzu Trucks South Africa’s Dealer of the Year award. Topping the tables The 2017 Dealer of Year award was the ultimate icing on the cake, following many years of other successes. Prior to last year’s top accolade, Barloworld Isuzu Trucks Johannesburg had been the runner up for the same award in 2013, 2014 and 2015. Apart from these accolades, the dealership has also set some benchmarks along the way. “In the history of Isuzu Trucks South Africa, we were the first dealer to exceed the 500-unit sales mark in 2013, setting us up for the Top

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QUICK TAKE

Barloworld Isuzu Trucks Johannesburg scooped three major awards at the 2017 Isuzu Trucks South Africa awards, namely Dealer of the Year, Top Sales Volume Dealer of the Year and Top Sales Manager of the Year awards

2011

2016

Of note is that Barloworld Isuzu Trucks Johannesburg has won the Best Isuzu Trucks Workshop in South Africa five times, in 2010, 2011, 2012, 2014 and 2016

500 UNITS

Barloworld Isuzu Trucks Johannesburg is the first dealership to exceed the 500-unit sales mark in Isuzu Trucks South Africa’s history back in 2013

The dealership’s key success factor is its unparalleled aftermarket service, showcased by some long-standing relationships dating back as far as 25 years ago

extra mile for its customers, offering an array of value adds, including night shift servicing (Monday to Friday); Saturday servicing; an on-site mobile service truck; and a 24-hour breakdown technician. “We have developed our state-of- the-art workshop to be a one-stop shop facility for all our customers’ service needs,” explains Gericke. “We have our own on-site brake machine, a wheel alignment machine and a total of 19 productive work bays. We have nine drive-through work bays capable of accommodating an interlink truck.” That, coupled with a team of highly experienced sales executives, forms part of the key success factors. “Our success is also driven by our understanding of our customers’ needs and the importance of total cost of ownership for them to run profitable businesses,” adds Gericke. Gericke adds that relationships are at the heart of the dealership’s operating model, based on the understanding that the trucking business is not just about selling trucks. He is of the view that buying decisions of this magnitude are beyond just brand names and transactions; they are more based on long-term relationships. “We strive to build long-lasting relationships with our customers, which in most cases results in them coming back to buy their next truck, buy parts from us and service their vehicles with us,” says Gericke. With his strong workshop background, having started as an apprentice in the same company, same dealership, some 25 years ago, Gericke understands the

“For me the workshop is a crucial arm of the business. We have some customers that I have known for the whole of my 25-year working career at Barloworld Isuzu trucks South Africa. It’s those relationships that keep the gears turning for us.”

Jacques Gericke, Dealer Principal at Barloworld Isuzu Trucks Johannesburg

TALKING POINTS

Heart of success Of note is that Barloworld Isuzu Trucks Johannesburg has won the Best Isuzu Trucks Workshop in South Africa five times. “Our facility was the number one Isuzu Trucks workshop in 2010, 2011, 2012, 2014 and 2016,” says Gericke, reiterating that the workshop is the cornerstone of the dealership’s aftermarket strategy, and has been at the centre of its success over the years. “The crux of our success is the customer support from our aftersales department, which is the workshop. In my opinion, the heart of a truck dealership is its aftersales division, which is pretty much the driving gear of crucial customer support,” says Gericke. With that in mind, Barloworld Isuzu Trucks Johannesburg’s workshop goes the

Sales Volumes Dealer award during that same year,” explains Jacques Gericke, Dealer Principal at Barloworld Isuzu Trucks Johannesburg. To date, only one other dealer has reached the 500-unit mark, back in 2016, but Barloworld Isuzu Trucks Johannesburg’s record for most sales remains unbeaten. Apart from the top prize in 2017, Gericke tells Capital Equipment News that Barloworld Isuzu Trucks Johannesburg went on to win the Top Sales Volume Dealer of the Year accolade last year, topping the charts with a total of 368 units, despite the tough market conditions in a year the South African truck market saw a 2,65% decline compared with 2016. This was complemented by the Top Sales Manager of the Year prize awarded to Cheryl Tamagnone, the dealership’s sales manager.

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