Capital Equipment News November 2017

For informed decision-making NOVEMBER 2017

BEYOND THE CALL OF DUTY

TRANSPORT: Tipping new payloads MINI EXCAVATORS: Gaining a strong foothold MANUFACTURING: Establishing local production capabilities

BUSINESS: ENABLING LOCAL ENTERPRISE DEVELOPMENT PAGE 18

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BEYOND THE CALL OF DUTY

TRANSPORT - FUTUROAD 2017 30 FAW's modern design on show at Futuroad 2017 31 Eqstra showcases new trailer for refrigerated goods 32 Tata unveils new range of light trucks TRANSPORT & LOGISTICS NEWS 33 Mercedes-Benz Trucks trains 200 commercial vehicle drivers 34 Best UD fleet drivers off to Japan CONSTRUCTION NEWS 35 Fleet renewal puts Burma Plant Hire on growth path 36 28 Komatsu graders for KZN Department of Transport 37 Mburg Mini Plant gets the better of tight working areas MINING NEWS 38 Capital-saving solutions for crushing and screening AGRICULTURE NEWS 40 Kubota mini excavators boost PlusNet's productivity COVER 4 Beyond the call of duty TRANSPORT 6 Tipping new payloads MINI EXCAVATORS 10 Gaining a strong foothold TRANSPORT 14 Plugging the product void BUSINESS 18 Enabling local enterprise development MANUFACTURING 22 Establishing local production capabilities THOUGHT LEADERSHIP 25 Why not all companies test for alcohol SCREENING 26 More than a means of separating and sizing materials TRANSPORT 29 Redefining the truck stop concept 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 Q2 2017: 3687

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EDITOR'S COMMENT

RELOOKING EQUIPMENT CHOICES

C hange, in any form, is often difficult. We know how challenging it can be to go through change, although the outcomes may be really awesome. Many businesses often find themselves resisting change, perhaps because of the perceived risk or uncertainty associated with it. That is the current scenario in the local mining and quarrying sectors, where, for a long time, there has been a rigid approach to hauling preferences, with yellow metal haulers al- ways gaining favour, mostly just because “this is what we have always used here”. Generally, tipper trucks have always been regarded as ideal for light duty applications such as re-handling of ore and hauling of material from the processing plants to

stockpiles, with some arduous applications such as hauling run of mine (ROM) material from the rock face to the processing plants deemed no-go areas for these solutions. But, it is worthwhile to note that massive yellow metal trucks at mining operations around the world may soon be replaced by bigger, yet lighter, faster vehicles as operations seek better economies of scale and protection against the commodity price shocks of recent years. In the area of haulage, a new generation of mining tippers is emerging to reflect increased on-site demands. Lighter vehicles with larger capacities, better fuel and tyre efficiency and reduced maintenance are gaining preference on global sites, but the change has been slow in coming to our recently visited. The decision to ditch its conventional yellow metal rigid dump trucks it had run for over 100 years to haul ROM material from the quarry face to the processing plants, in favour of Scania mining tippers, called for a complete mind- set shift. A few years down the line, management is revelling in the glory of the hard decision they took. The gains are just massive. Current utilisation of the vehicles is about 83%, which is way more than the 72% world benchmark. The operation is saving 20% on maintenance costs compared with the conventional range of haulers it used to run, among other several operational gains. In my conversation with management at this operation, I realised that mining companies understand implicitly that productivity carries a value, but are not armed with the right information to make informed choices on the risks/rewards involved. Scania South Africa is one of the OEMs that has been at the forefront of driving its mining tipper offering for the past few years. The OEM has been on a relentless educational campaign, making local mines and quarries aware of its cost- African operating environment. However, I was impressed by a South African limestone operation I

effective hauling solution. As you will see in this edition of Capital Equipment News, Scania’s momentum into mining is gathering pace with the recent introduction of the new Scania G460CB8x4EHZ mining tipper, which offers a significant 25% increase in payload to 40 t, bridging the payload gap between conventional tippers and their yellow metal counterparts. In another recent development that is a key indicator that we may be moving towards the tipper direction at local mines is Bell Equipment’s recent announcement that it is entering the southern African tipper truck market through a partnership with KAMAZ, a Russian-based industry leader in this market segment globally. Bell says after a long period of investigation, it is now ready to take the milestone step. Obviously, this is a decision informed by current and future market trends. Conventional thinking has always been an obstacle to identifying the most cost- effective ways and means for improvement. Continued innovation is key, especially in an environment where business expansion is very tentative and costs still need to be tightly controlled. However, though it is gradual, I am encouraged by the paradigm shift at local mines and quarries. A focus on overall equipment effectiveness is a very good example of a shift in the way of thinking and evaluation of what equipment performance indicators should be. Equipment effectiveness in an application is one key factor that should influence buying decisions, rather than the conventional “this is how we have always done it” approach. Bearing in mind that equipment performance is one of the key parameters influencing production costs, it should, therefore, be subject to constant surveillance and analysis aimed at improving it. I am of the view that, now more than ever, it is time to relook our hauling solutions, bearing in mind that transportation constitutes up to a third or more of any operation’s costs. b

Munesu Shoko – Editor

capnews@crown.co.za

@CapEquipNews

CAPITAL EQUIPMENT NEWS NOVEMBER 2017 2

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COVER STORY

BEYOND THE CALL OF DUTY Goscor Earth Moving, the official dealer of SANY’s earthmoving equipment in South Africa, has delivered four new machines to mining contractor, Exclusive Benefits Enterprises. The transaction is a landmark deal, not only due to its R7 million value, but most importantly because it’s Goscor’s first customised sale to the mining industry, which saw the supplier going beyond the call of duty to tailor the buckets of the machines to suit the customer’s taxing chrome handling application, writes Munesu Shoko .

I n a ground-breaking deal since becoming the official dealer of Chinese OEM SANY’s earthmoving equipment in South Africa, Goscor Earth Moving (GEM) has delivered four new machines, two hydraulic excava- tors and two front-end loaders, to Exclusive Benefits Enterprises, a junior, black-owned mining contractor based in the Witbank, Mpumalanga area. The two new SY335C ex- cavators and two SYL956H5 wheel loaders have been specifically acquired to work in a challenging chrome loading application at a mine in Palaborwa, Limpopo. Tebogo Makofane, owner of Exclusive Benefits, initially purchased a Bobcat S450 skid steer for one of his sweeping contracts at a mine from Lee Sampson, sales executive at GEM Witbank. When the fast-expanding mining contracting business clinched a big- ger contract for loading duties at a chrome mine, Makofane’s decision to opt for GEM’s SANY offering was largely influenced by the more than customer-supplier relationship he had forged with Sampson. For an uptime-conscious chrome handling application, Makofane was looking for more than excavators and wheel loaders. This is such a demanding contract, and its suc- cess hinges on both a dependable product that gets the job done with no unnecessary standing time, as well as reliable aftermar- ket support to keep the equipment running at all times. Landmark deal A positive customer-supplier relationship

begins with the supplier’s initiative to demonstrate their sensitivity to the customer’s needs. This is exactly what Sampson exhibited when he went the extra mile to understand Makofane’s operating conditions, his needs and came up with solutions. After extensive consultations, a R7 million deal was structured, and saw Exclusive Benefits ordering two 30-tonne SY335C excavators and two 5-tonne SYL956H5 wheel loaders. The transaction represents one of the major deals for GEM to date. “This is the first customised deal we have done for the mining industry. We have tailored the buckets of the machines for the customer to make them smaller than the standard ones to accommodate heavy chrome loads,” says Sampson. The buckets have been reduced from the standard 3,2 m³ size to 2,2 m³ on the wheel loaders. They have also been reinforced on the sides to be able to withstand the taxing nature of the chrome handling application. The decision to downsize the buckets was reached after considering the machines’ lifting and breakout capabilities versus the material density. “Machine capability estab- lishes how much lifting force the machine has for the bucket and payload at a given reach. Material density tells you how much a bucket load would weigh at ideal conditions of 100% fill,” explains Sampson. Due to the heavy nature of chrome, it was deemed proper to downscale the buckets, and GEM assumed the responsibility on

Key specs – Sany SYL956H5 Operating weight

17 100 kg 2,7-4 m³ 5 000 kg

Bucket capacity

Rated load

Rated power

164 kW/2 200 rpm

Maximum torque

1 000 Nm

behalf of the customer, a gesture that con- vinced Makofane that the equipment suppli- er was not only concerned about selling the machines, but was prepared to invest in the success of his business, too. Customisation matters Sampson reiterates that the conventional one-size-fits-all approach to selling

CAPITAL EQUIPMENT NEWS NOVEMBER 2017 4

ability to curb production costs only, but to- day it is more than just that, with customis- ation, the ability to tailor the product to suit customer needs, taking centre stage. “The total value proposition is the most important consideration in today’s buying decisions, all the way from product quality, price, financing through to service and maintenance,” says Sampson. Machines in detail The new SANY 956H5 wheel loader, recently introduced to the local market by GEM, is powered by a Cummins QSL8.9 engine, which ensures more power, high efficiency and large displacement. Its multipoint fuel injection allows for immediate throttle response, enhanced fuel efficiency and reduced noise. It features a customised DANA axis-shift transmission with electronic control system, which allows for automatic shifting. The solenoid valve and the logic control achieve a much smoother shifting and faster response for improved productivity. The loader also comes with a high-pres- sure load-sensitive hydraulic system, per- fectly matching speed and power, resulting in a 10%-15% energy saving. The 25 MPa high-pressure hydraulic system and main valve of large displacement achieve higher breakout and lifting force. The new SY335C hydraulic excavator, which also recently made its debut in South Africa through GEM, is a true testimony to SANY’s relentless focus on research and development. It is a radical upgrade of the previous 30 t excavator range. A big talking point is the latest Kawasaki large-torque swing mechanism employed, which increas- es rotary torque by 32% from the original 100,6 kN.M to 132.8 kN.M. The SY335C is powered by the 6HK1- XABEA-08-C2 Isuzu engine specifically customised for SANY. A quick circuit has been added to the arm oil cylinder circuit. When the arm oil cylinder is extended, the oil return circuit is cut off and hydraulic oil flows from the return circuit into the cylin- der via a check valve. The hydraulic oil in the arm cylinder rod end does not return to the tank but goes directly to the cylinder head end. The arm speed is increased as a result and fuel consumption is low under this condition. The auto deceleration system reduces fuel consumption by 5-10%. When an operation has been stopped for three seconds, the en- gine speed drops automatically to idling level and maintains the idling state, thus cutting down on unnecessary fuel consumption. “When the operation resumes by moving the control levers, the engine speed will increase to the set rpm within 0,1 second,” concludes Sampson. b

Key specs – Sany SY335C Overall weight

32 400 kg

HD bucket volume

1,5 m³

Quota power

190,5 kW/2 000 rpm

Bucket digging force

220 kN 165 kN

Arm digging force

equipment is a thing of the past. He reasons that in today’s operating conditions, an OEM, together with its dealer, must be in a position to customise their product as per customers’ requirements. He is of the view that customised solutions are required to suit the fast-changing and varied customer requirements. “It is no longer enough to create one machine and expect it to suit

the needs of all. Fleet owners have become more educated and demanding in terms of wanting machines suited to the kind of work and environment that they work in,” says Sampson. A recent McKinsey & Company report corroborates Sampson’s views, stating that in the past, the most competitive edge in construction and mining equipment was the

CAPITAL EQUIPMENT NEWS NOVEMBER 2017 5

TRANSPORT

Scania South Africa used the recently-ended Futuroad Expo Johannesburg 2017 to officially launch its G460CB8x4EHZ mining tipper in the local market.

TIPPING NEW PAYLOADS

The new Scania mining tipper – which made its grand South African debut at the recently-ended Futuroad 2017 – offers a significant 25% increase in payload to 40 t, a key value proposition for mining customers seeking to optimise their load-and-haul processes at the lowest total cost of ownership in challenging operating conditions, writes Munesu Shoko .

T he South African mining fraternity is facing tough challenges, and only a compelling strategy to implement cost-efficient solutions for optimised oper- ational excellence will keep mines in busi- ness. While rebounding commodity prices have offered some reprieve, policy and reg- ulatory uncertainty have frozen new invest- ment into the mining sector, putting the local mining industry under immense pressure. With that in mind, Scania’s new G460CB8x4EHZ mining tipper, which offers a significant 25% more payload than its predecessor, the G410CB8x4EHZ, has rolled off the production line to close the gap between conventional yellow metal haulers and existing tipper offerings. Raimo Lehtiö, MD of Scania South Africa, tells Capital Equipment News that, with its 40 t payload,

a significant increase on the G410CB8x4EHZ’s 32-34 t capacity, the new G460CB8x4EHZ mining tipper plugs the payload gap between conventional tipper trucks and their yellow metal counterparts. “The capacity is high enough for high production mining operations. With a 25% payload increase as the most prominent benefit, the new Scania heavy tipper offers high uptime, longer vehicle life, higher residual value and lower total cost of ownership,” says Lehtiö. Enter Scania G460 Lehtiö says Scania South Africa has chosen to introduce the new G460CB8x4EHZ mining tipper at a time when local mining operations really need to relook their hauling solutions to improve their cost per tonne indicators in

Key technical specs Axle configuration

8x4

Target payload

40 000 kg 58 000 kg

Gross vehicle weight

Front axle weight

2 x 11 000 kg

Bogie weight

36 000 kg

CAPITAL EQUIPMENT NEWS NOVEMBER 2017 6

Increased track width and lower bogie height make tipping both safer and more stable.

manager – Mining at Scania South Africa, says increased truck payload enables mining operations to consolidate loads and thus reduce the amount of vehicle movement required to distribute a given quantity of material on site. This can yield economic, safety and environmental benefits. “The biggest benefit of increased payload is that mines will need fewer trucks on site, which translates into fewer drivers as well, but more importantly, less operating costs related to maintenance of many trucks,” she says. The new tipper also benefits from a radical reinforcement of the vital components in the powertrain and suspension to enable sound durability and reliability. “Increased payload calls for a strengthened drivetrain, more horsepower (hp) and the necessary reinforcements to accommodate larger loads,” says Ruben Govender, key account manager – Mining at Scania South Africa. The new mining tipper is equipped with heavy-duty rear axles with cast-iron housings to stand the test of challenging, rough mining conditions. Both rear axles are equipped with shock absorbers to improve traction and comfort. In addition, the increased track width and lower bogie height make tipping both safer and more stable. Oil filter, drain plugs and brake chambers

KEY TALKING POINTS

A 25% payload increase is the major talking point

New mining tipper comes with a range of features that speak to increased vehicle safety

The vehicle benefits from a radical reinforcement of the vital components in the powertrain and suspension to enable sound durability and reliability

It can be specially tailored to meet any type of mining- specific demands

such difficult operating conditions. The new mining tipper headlined Scania’s exhibit at Futuroad Expo Johannesburg 2017 with its imposing, gigantic stature that cut a conspicuous figure among other offerings on show. Anders Friberg, general manager – Vehicle Sales & Export at Scania South Africa, says

with its excellent equipment-to-payload ratio and greatly improved technical availability, the new offering can be specially tailored to meet any type of mining-specific demands. The mining tipper’s 40 t payload is the most prominent improvement on the new offering compared with its predecessor. Charnie-Lee Adams-Kruger, key account

CAPITAL EQUIPMENT NEWS NOVEMBER 2017 7

TRANSPORT

A 25% payload increase is the most prominent benefit of the new Scania mining tipper.

Raimo Lehtiö, MD of Scania South Africa, says the new mining tipper plugs the payload gap between yellow metal haulers and existing tipper offerings.

are placed in well-protected positions. The Scania heavy tipper also benefits from a ladder type frame with C-profile side rails, which is roll-formed with a yield strength of 500 MPa. It also comes with reinforced front axles with excellent ground clearance. The progressive bump stops in the front suspension help absorb part of the load, relieving stress on the springs and frame. The cab structure comes with galvanised sheet steel panels, laminated windscreen and tough, hardened door windows to withstand severe impact of the rough conditions associated with mine pits. More features The new Scania mining tipper comes with a 12+2 speed range-splitter gearbox, with overdrive, two crawler gears and two reverse gears. The power take-off is mounted on the rear of the gearbox, designed for direct- mounted hydraulic pump. It comes with a servo pump with variable displacement which reduces temperature and stress on the steering gear. The Scania Opticruise provides accurate and smooth automated gear changing for reduced driver fatigue and improved productivity. Bearing in mind that safety is a key parameter in any mining environment, the new behemoth comes with a range of features that speak to increased vehicle safety. For example, yellow boarding steps and grab handles are available on request. Another safety feature, which also affects uptime and productivity, are the yellow wheel nut indicators showing when a wheel nut needs re-tightening. Every vehicle has to undergo service and maintenance, but it is always important that any downtime related to that be kept to the shortest possible time. The focus is evident through easy access to grease points and all major service points.

Adams-Kruger further argues that during the boom years mines had the luxury of acquiring equipment which was available rather than what they really needed. The downturn in commodity prices in recent years in particular has now led mining companies to take strong steps to improve productivity. She says many have stated publicly that productivity is top of their agenda and they are extolling the virtues of cutting capital spending. Friberg says although commodity prices have seen a slight recovery in 2017, investment in the mining sector in South Africa remains cautious. He reasons that continued innovation is key, especially in an environment where business expansion is very tentative and costs still need to be tightly controlled. As these pressures build, Govender says mines are relooking their equipment, especially their hauling solutions, bearing in mind that transportation constitutes up to a third or more of any operation’s costs. He is of the view that the future belongs to the “smaller and smarter” hauling solutions such as the Scania mining tipper, especially at a time when mines really need to seek ways to maximise hauling efficiencies and productivity to maintain, or even, improve their bottom lines. Govender believes a total mindset shift will see mines harness the benefits of the Scania mining tipper, ranging from lower capital investment, reduced maintenance costs, to lower fuel consumption and in- creased uptime. “The key value proposi- tion is the total operating economy, which manifests itself is less cost per tonne and increased return on investment. That’s ex- actly what mines are pushing for. It’s also the services around the vehicle that we can provide as we are well aware that uptime is very important for mining operations,” con- cludes Govender. b

New tyre specs are also available, bearing in mind the increased payload on the new tipper. 325/95R24 tyres – with a load capacity of 5 500 kg per tyre at maximum speed of 45,5 km/h and inflation pressure of 9,3 bar – can be fitted on all axles. However, if the workshop is restricted to handle inflation pressures below 9 bar, two other options are available: a load capacity of 5 250 kg per tyre at maximum speed of 45 km/h or a load capacity of 5 500 kg per tyre at maximum speed of 30 km/h. Alternatively, 375/90R22.5 tyres can be fitted on front axles. These have a load capacity of 5 500 kg per tyre at a maximum speed of 60 km/h with an 8,9 bar inflation pressure. Mindset shift While Govender agrees that local miners still need a complete paradigm shift when it comes to their selection of hauling gear, which still favours yellow metal solutions, mainly driven by the conventional “bigger is always better” mentality, he is of the view that, now more than ever, local mines are starting to look for ways to reduce the gap between earnings and operating costs. He is of the view that the conventional thinking has always been an obstacle to identifying the most cost-effective ways and means for improvement. However, he believes that mining companies understand implicitly that productivity carries a value, but are not armed with the right information to make informed choices on the risks/ rewards involved. Adams-Kruger says costs deferred or eliminated, as well as volume increases, have become the proxy for productivity gains, adding that in the current environment, there is little patience for a productivity dividend that might be six or 12 months in the making, let alone one that needs an outlay of substantial capital to get there.

CAPITAL EQUIPMENT NEWS NOVEMBER 2017 8

HOWGOOD IT IS WON’T SURPRISE YOU. HOWMUCH IT SAVES YOU WILL.

Only a truly efficient truck can be economical. That’s why ours are engineered to not only be the strongest but also the lightest they can be, to deliver the greatest payloads, fuel efficiency and uptime on the market.

So can you have a truck that’s as impressive in a quarry as it is on a spreadsheet? YES YOU CAN .

MINI EXCAVATORS

HPE Africa, the exclusive distributor of Hyundai Construction Equipment locally, boasts a fair share (in excess of 13%) of the mini excavator market.

GAINING A STRONG FOOTHOLD The African mini excavator market remains a very small segment of the continent’s overall construction equipment market, but all indications are that it has to grow. This is in line with global trends, with available data showing that the compact excavator sector is one of the most competitive areas of the global construction equipment market, worth an estimated US$5,85 billion annually, writes Munesu Shoko

KEY TALKING POINTS

Mini excavator segment is one of the most competitive areas of the global construction equipment market, worth an estimated US$5,85 billion annually

W ith almost 200 000 units sold worldwide each year, avail- able statistics suggest that the compact excavator market might be the single largest sector of the annual global 700 000-unit construction equipment mar- ket. The mini excavator, also known as the compact excavator, has earned an increas- ingly popular reputation in the developed world through its size and utility, especial- ly considering that most construction work in these markets is based on reconstruc-

tion of existing infrastructure, often calling for compact pieces of equipment that can navigate space constrained jobsites. But, what about the African market? We are a little bit late to the mini excavator party, but all indications are that this sector has to grow. Tom Bloom, general manager for Construction Equipment at Smith Power Equipment, the authorised distributor of the Kubota range of mini excavators in South Africa, predicts that the market for compact excavators in South Africa to be

CAPITAL EQUIPMENT NEWS NOVEMBER 2017 10

The new 8 t Kubota KX080-3S mini excavator offers high power performance to execute jobs that normally call for larger conventional machines.

About 200 000 mini excavator units sold worldwide each year

Market for compact excavators in South Africa predicted to be around 160 units per year

Urbanisation is one of the big drivers of compact gear in the African marketplace

Change in application is also another major driver of the compact excavator market, with more jobs in landscaping, sewage, trenching and cabling on the horizon

Growth drivers What are the major drivers? The first big driver of compact gear is urbanisation. As towns continue to grow, space is at a premium at many construction sites, hence the need for a smaller machine that can get the better of space constraints. According to the African Development Bank, the proportion of the world’s urban population is expected to increase to about 57% by 2050 from 47% by 2000. More than 90% of future population growth will be accounted

around 160 units per year. Bear in mind South Africa is the biggest equipment market on the continent, contributing almost half of the overall equipment sales every year. However, Bloom predicts this market will increase by almost 20% year- on-year moving forward. Lani van der Watt, marketing manager at High Power Equipment (HPE) Africa, the exclusive distributor for Hyundai Construction Equipment in South Africa, says there has been a significant

improvement in demand in the agricultural sector in recent months. “This might create some opportunity for the mini excavator sales to increase. However, the mind-set of the South African market players would also need to shift,” she says. According to Van der Watt, there were approximately in access of 75 mini excavators sold in South Africa in the first three quarters of 2017, and about 5% of those were exported to other African countries.

CAPITAL EQUIPMENT NEWS NOVEMBER 2017 11

EXCAVATORS

Bobcat’s new E85’s bucket digging force has been significantly increased to 61,8 kN, a 13% increase over the previous model.

Force 8, a local Yanmar compact excavator dealer, sees an apparent ongoing preference for smaller gear on African construction sites.

for by the large cities in the developing world. Africa has experienced the highest urban growth during the last 20 years at 3,5% per year. Projections indicate that between 2010 and 2025, some African cities will account for up to 85% of the population. As a result, urban infrastructure development projects like the construction of buildings will take centre stage. Increasing investment in the real estate market will result in the construction of high-rise buildings, which will in turn foster the demand for mini excavators in years to come. The second driver is the change in application. Away from mining and infrastructure where you need big- sized excavators, there are more jobs in applications such as landscaping, sewage, trenching and cabling. These applications are continuously growing and compact equipment becomes a big need. The key competitive edge of this range of mobile excavators is their versatility. They can be deployed into an assortment of applications, ranging from digging basements, burying downspout lines, installing electrical services, trenching service lines, to augering holes for trees. A go-anywhere machine is a boon on any site. Signs of growth Justin Nicoll, managing director of Force 8, the local supplier of the Yanmar range of compact excavators, says the compact excavator is fast growing as a tool of choice on South African construction sites. He is of the view that customers are benefitting from the versatility of small

buildings, can be craned quite easily and Yanmar’s smallest can even get in a regular lift for internal demolition jobs,” he says. Nicoll believes innovation is also key in this market segment. “Technology and productivity go hand in hand. The Yanmar product is well refined and not costly to operate. Reliability is crucial in order to meet production quotas and targets, and innovative products such as the Yanmar range increase uptime,” says Nicoll. For Force 8, the prime market drivers in this range are the Yanmar models in the 1 to 8 t size category, and the 5 t is said to be the most buoyant nationally. In terms of demand, Nicoll says a few years back, one compact unit was sold for every 20 units in the 20 t class and bigger. “In Europe it was the exact converse; 20 small units for every single large excavator sold. We are moving slowly towards the European ratio. So, I think the potential is massive.” Bloom is also upbeat about the prospects of growth for the mini excavator, and through education, he believes that local contractors are slowly, but surely grasping the potential benefits of the compact excavator. “Unfortunately, the ‘bigger is always better’ mentality still rules in South Africa. But, in challenging economic conditions, cost saving is very important. A compact excavator’s major benefits over most conventional solutions include fuel economy, lower capital outlay, ease of transportation compared with bigger options, as well as versatility,” reasons Bloom. “We also see a lot of urban construction going on locally, and often in confined working environments, and this is where the compact excavator excels.”

excavators and increased productivity on sites. “The compact excavator is fast becoming a tool of choice, having seen its abilities underestimated for a very long time,” argues Nicoll. “Compact excavators have an entire playbook of operations, all the way from demolition, brush cutting, augering, compaction to picking and placing with precision.” Nicoll believes mid-sized units such as the 8 t are even taking trenching work away from tried-and-tested TLBs, and argues that it is a matter of time before they upstage the TLB because of the comparative production speeds. Sectors with increased uptake of the compact excavator are pretty much evenly divided between construction and agriculture, according to Nicoll. “Applications are probably, in thirds, split between maintenance, site work and a very consistent call for demolition,” says Nicoll. Stephen McNeill of Bell Equipment says the trend towards mini excavators has been noticed locally, but it is still very much in its infancy compared with international markets. “However, we expect the trend to grow, and for this reason, we have introduced the Kobelco range of compact excavators, ranging from 1 to 4 t, to meet market requirements,” says McNeill, referring to Bell Equipment’s recent agreement for the exclusive distribution and support of the Kobelco range of excavators in southern Africa. Market drivers In terms of market drivers, Nicoll says the compact excavator is built to work in confined circumstances and has become an invaluable solution in those specific applications. “The machines get into

CAPITAL EQUIPMENT NEWS NOVEMBER 2017 12

Product offerings HPE Africa boasts a fair share (in excess of 13%) of the mini excavator market. “We have supplied mini excavators to customers in agriculture, construction and plant hire industries between January and August 2017,” says Van der Watt. HPE Africa supplies mini Hyundai excavators ranging from 3,5-8 t, namely the R35Z-9, R60-9S and R80-7 -7 800. With a 3,65 t operating weight, the R35Z-9’s boom swing function (80 x 400 mm) is designed for efficient work in congested residential and urban areas. The boom can be offset left or right within an operating range. Its short tail swing radius allows the operator to work in confined areas like close to buildings or roadways, and in urban areas. “The compact radius design provides easy and efficient operation in any space- limited working environments,” says Van der Watt. To further compete in a growing market, Bobcat recently added two new compact excavators in the 6-8 t weight range. The 6-tonne E62 and 8-tonne E85 reduced tail swing (RTS) models replace the previous E60 and E80 models, respectively. The latest generation excavators share many features and advances to maximise performance, versatility, operator comfort, durability, ease of maintenance and serviceability. Both excavators feature upgraded hydraulic systems resulting in higher pressures and flows, generating smoother and greater digging and lifting performances. The E62 compact excavator offers a 10% increase in the arm digging force to 28,7 kN and an 8% increase in the bucket digging force to 43,1 kN in the short arm version. In the E85 model, the bucket digging force has been significantly increased to 61,8 kN, a 13% increase over the previous model. The E62 and E85 models are standard equipped with primary and secondary auxiliary hydraulic lines offering both dual directional and proportional flow for increased versatility. A thumb control is integrated in the joysticks for better metering of the boom swing and the proportional auxiliary hydraulics. Latest on SPE’s arrival lounge is the new 8 t Kubota KX080- 3S. A key feature of the KX080-3S is its compact size that allows it to work in very tight spaces, but offering high power perfor- mance to execute a range of jobs that normally call for larger conventional machines. The machine comes with Kubota’s pio- neering 360 mm tight tail swing, and thanks to the contoured, tight tail design, the KX080-3S is said to be more stable and can work in areas where space is at a premium than conventional tail swing excavators. “With its compact size, the machine can still achieve a high level of industrial performance on space-constrained construction sites, making it a unique proposition for local contractors seeking substantial power on space-restrained urban sites,” says Bloom. Its compact size also makes it easier to transport between sites. With its 2 200 mm width, the Kubota KX080-3S is said to be lot narrower than competitive machines in the same size class. Versatility is another key benefit of this machine. While a range of attachments that can be fitted on this machine is very wide, it also comes with a high-capacity dozer blade, which removes the need for separate machines for a range of applications such as site preparation, digging and finish work. The machine also comes with a third-line hydraulic return function. “When working with one-way hydraulic attachments, such as a breaker or brush cutter, the standard third-line hydraulic system allows oil to flow directly back to the tank without running through the control valves. This translates into reduced oil contamination, less back pressure and increased oil flow efficiency,” concludes Bloom. b

CAPITAL EQUIPMENT NEWS NOVEMBER 2017 13

TRANSPORT

The new generation of Hino’s 500 Series trucks, ranging from 16 to 28 t, largely replaces some models in the current 500 Series, representing the first model change in 14 years.

NEW HINO 500 SERIES RANGE

• 1627 4x2 16-t LWB Freight Carrier • 1627 4x2 16-t LWB AT Freight Carrier • 1627 4x2 16-t Super-LWB Freight Carrier • 1627 4x2 16-t Super-LWB AT Freight Carrier • 1627 4x2 16-t Tipper • 2829 6x2 28-t LWB Freight Carrier • 2829 6x2 28-t LWB AT Freight Carrier • 2829 6x2 28-t Super-LWB Freight Carrier • 2829 6x2 28-t Super-LWB AT Freight Carrier • 2836 6x4 28-t Freight Carrier

Hino South Africa used the recently-ended Futuroad Expo Johannesburg 2017 to officially debut the new models of its 500 Series in South Africa, closing some crucial gaps in its existing product range, writes Munesu Shoko . PLUGGING THE PRODUCT VOID

• 2836 6x4 28-t Mixer • 2836 6x4 28-t Tipper

N ew products are mostly at the centre of every trade fair. Original equipment manufacturers (OEMs) often regard these platforms as their perfect launch pads for their new offerings. For Hino South Afri- ca, the recently-ended Futuroad Expo Johan- nesburg 2017, held from September 27-30, presented the ideal platform to showcase its newest additions to its 500 Series range. September also presented the perfect timing as the new range will go into production in Hino’s CKD assembly plant at Prospecton, Durban, in November 2017, after which it will be distributed to Hino’s network of 66 dealers in early 2018. Leslie Long, senior manager: Marketing and Demand Planning at Hino South Africa, tells Capital Equipment News that the

imminent arrival of the new Hino 500 Wide Cab models not only marks the first full mod- el change of the 500 Series in 14 years, but most importantly closes the two crucial gaps within its product range. Firstly, the new range gives Hino South Africa access into the 6x4 model market for the first time, allowing the Japanese truck maker to have a further grip on the local con- struction tipper and mixer market. Secondly, Hino has gone the full automatic route for the first time with some variants available with a choice of either a six-speed Allison 3000 or 3500 Series automatic transmission. Long notes a growing move towards automatic transmissions in commercial vehicles, and is excited to finally have a product that ad- dresses this growing market need.

CAPITAL EQUIPMENT NEWS NOVEMBER 2017 14

The new range includes 6x4 models, giving Hino South Africa a competitive edge in the construction tipper and mixer markets.

2829 Wide Cab, which expands the current 500 Series’ 6x2 range from one to four, also benefits from the introduction of automatic freight carrier variants. Long is mostly excited about the opportu- nity to bridge the automatic transmission gap in the Hino truck range in South Africa. He is of the view that automatic transmission is a game changer for the commercial vehicle in- dustry as it helps truck owners lower operat- ing costs and downtime, bearing in mind that the traditional manual transmission is more susceptible to wear-and-tear, especially to its clutch in the long run. He also believes the automatic transmission option can be crucial for markets such as South Africa where the level of driving skills is under pressure. “We realise that local fleet owners see the attrac- tion of these transmissions as well. The fully automatic transmission allows less skilled drivers to be productive without straining the truck,” says Long. The appeal of automatics goes far beyond driver preferences, with safety and fuel economy also topping the list. “Automatic transmission is also a large help with safety because the driver can stay focused on the road or the task at hand instead of shifting gears. Additionally, drivers do not get as fatigued with an automatic as they do with a manual or AMT since they do not have to shift gears all of the time.” Meanwhile, the introduction of the 2836 Wide Cab’s all new freight carrier, mixer and tipper variants, allows Hino to venture into the 6x4 segment of the extra heavy

A greater focus on driver comfort is showcased by the new cab which is considerably wider than that of the previous versions

There is now a choice of three engines, compared with only one engine on the previous Hino 500 models

New 6x4 models give Hino South Africa an edge in the construction tipper and mixer markets

New full automatic route opens new possibilities amid a growing trend towards automatic transmissions in commercial vehicles

QUICK TAKE

The new generation of Hino’s 500 Series trucks, ranging from 16 to 28 t, dubbed the Wide Cab range, largely replaces some mod- els in the current 500 Series, which have been sold locally for the past 14 years – only the 6 and 8 t models will continue unchanged. The new launches include the 16 t 1627 (4x2) freight carrier and construction models, the 28 t 2829 freight carrier models and the 28 t

2836 (6x4), offering freight carrier, mixer and tipper variants. Bridging the gap With the introduction of the new 1627 Wide Cab, the current 500 Series’ 4x2 range has been expanded from two to five models. Of note is the introduction of an automatic freight carrier model in this range. The new

CAPITAL EQUIPMENT NEWS NOVEMBER 2017 15

TRANSPORT

commercial vehicle (EHCV) market. It comes with an all-new Hino 9 speed manual transmission with Overdrive. With its 28 t gross vehicle mass, the 2836 is slightly lower than Hino’s current offering in the EHCV segment, the 700 Series. “The arrival of the 2836 is exciting for us as it opens up a new segment of the market where Hino last had a vehicle some 20 years ago,” says Long. “It opens up a new section of customers, both new and existing ones, as we previously didn’t have any 6x4 product to offer them in the past two decades.” Key features A host of choices abound on the new Hino 500 Series, including wheelbase options – long and super long on 4x2 and 6x2 models – as well as two suspension options – steel springs or airbags on 6x2 models – and the addition of three 6x4 models, available with on- or off-road cabs. The air suspension sys- tem provides height control of the truck for ease of loading and unloading. This is com- plemented by a remote control to make this operation convenient for the driver. There is now a choice of three engines, compared with only one engine on the previ- ous Hino 500 models, the 8-litre JO8 generat- ing 184 kW of power. The latest models can be powered by a choice of a JO8 Lo which pro- duces 191 kW of power and 794 Nm of torque; a JO8 Hi generating 206 kW of power and 883 Nm of torque; or the 11-litre P11 which puts out 257 kW of power and 1 275 Nm of torque. The changes equate to an improve- ment of 3,8% more power and 7,4% more torque on the JO8 Lo and 12% more power and 19,5% more torque on the JO8 Hi. Long says the new range is testament to Hino’s QDR (Quality, Durability and Reliabili- ty) approach with features such as the chas- sis frame – available on all models – now bolted together rather than riveted, with a hole pattern on the web surfaces for easy body mounting, and the frame rails are wider apart at the front to make space for the big- ger P11 engine. That also allows for a wider front axle, increasing load rating from 5,5 to 7,5 t and reducing the turning circle, while a new trunnion rear suspension also allows for a cross-differential locking system on 6x4 models. As the name Wide Cab suggests, the cab is considerably wider than that of the previ- ous versions. A large focus on driver comfort manifests itself in the form of semi-floating cab mountings on road models, while the three heavy-duty versions have full-floating cabs to improve ride comfort on rough ter- rain. This is complemented by a host of other standard features including an air suspension on the driver’s seat, a driver’s side airbag,

The new 2829 sees the current range of 6x2 models expand from one to four.

Hino has gone the full automatic route with some variants available with a choice of either a six- speed Allison 3000 or 3500 Series automatic transmission.

businesses have adopted a wait-and-see approach as they are careful not to spend much on capital goods with no certainty of what the near future holds,” says Long. Long says some of the big fleet owners report that their capacities are down and in such circumstances they find it difficult to justify new truck purchases. As a result, the market has seen a slight decline year- to-date, and there is a lot of stock on the market, making trading conditions extremely competitive for dealers. However, Long believes that despite the tough trading conditions, Hino is bucking the downward trend. He notes that quality, dura- bility and reliability attached to the brand is its key competitive edge, with a pool of very loyal customers keeping their faith in the brand, especially in such hard times where procurement decisions leave no room for er- ror. With the new 500 Series going on sale early in 2018, Long is optimistic that Hino will even challenge for a bigger share of the market next year. b

seatbelts with emergency locking retractor, improved headlight spread an adjustable hill-hold system for easier uphill starts, air- con, cruise control and an audio system. The dashboard layout has also been revised for improved ergonomics with both analogue and digital instrumentation. “Stepping into the cabin of the trucks, driv- ers can look forward to a much more comfort- able and ergonomic working environment. From enlarged cab steps to the driver seat with air suspension, the cab is developed with the comfort of the driver in mind,” says Long. Tough market conditions Speaking of current truck market condi- tions, Long says the market is bearing the full brunt of low business confidence in the country. He notes that official figures show that up to the end of August this year, the truck market was 3% down compared with the same period last year. “Operating con- ditions are very tough at this stage. Due to current political and economic uncertainty,

CAPITAL EQUIPMENT NEWS NOVEMBER 2017 16

BUSINESS

Caterpillar recently inaugurated its new 60 000 m² parts distribution centre in Kempton Park, near Johannesburg, South Africa.

ENABLING LOCAL ENTERPRISE DEVELOPMENT In one of its largest investments in Africa to date, Caterpillar has launched a record-breaking Equity Equivalent Investment Programme (EEIP) in conjunction with the South African Department of Trade and Industry, representing the largest ever EEIP initiative in South Africa, writes Munesu Shoko .

I n a clear demonstration of its long-term commitment to South Africa, Caterpillar has launched an Equity Equivalent In- vestment Programme with the Department of Trade and Industry (dti), which pledges to localise a cumulative R1,3 billion (about US$90 million) of component content over the next 10 years, representing the largest programme of this type in South Africa to date. The investment forms part of the pre-

viously announced plan of Caterpillar, its independent dealers and the Caterpillar Foundation to invest more than US$1 bil- lion in countries throughout Africa over five years. The EEIP is a dti initiative for multination- al companies that are unable to relinquish shareholding to contribute towards their Broad-Based Black Economic Empower- ment (B-BBEE) obligations. The dti’s Codes

CAPITAL EQUIPMENT NEWS NOVEMBER 2017 18

Zakieya Parker, Managing Director, Caterpillar Industries, speaking at the official launch of Caterpillar’s EEIP in Johannesburg, South Africa.

Dr Rob Davies, South Africa’s Minister of Trade and Industry, commended Caterpillar for its commitment to transformation in South Africa.

QUICK TAKE

2017

2021

R900m 2024

R1,3 billion 2027

R0.0

R500m

Caterpillar’s EEIP aims to localise a cumulative R1,3 billion (about US$90 million) of component content over the next 10 years

The investment is based on the 25% of the business value of Caterpillar’s South African operations

Caterpillar’s EEIP is expected to create about 3 900 direct and indirect jobs

The EEIP is a dti initiative for multinational companies that are unable to relinquish shareholding to contribute towards their B-BBEE obligations

of Good Practice require that all entities operating in South Africa make a contri- bution towards the objectives of B-BBEE. It is, however, acknowledged that there may exist multinationals, such as Caterpil- lar, that have global practices preventing them from complying with the ownership element of B-BBEE through the traditional sale of shares to black South Africans. In such instances, and provided that it can be proven that such entities don’t en- ter into any ownership arrangements in other countries globally, the B-BBEE codes make provision for the recognition of con- tributions in lieu of such sale of equity. Such contributions are referred to as Equi-

“The proposed programme is aimed at contributing towards product localisation to further capacitate the South African industrial base. The investment amount is R1,3 billion, based on the 25% of the busi- ness value of Caterpillar’s South African operations,” says Davies. Zakieya Parker, MD of Caterpillar In- dustries, said the 10-year investment will allow local, empowered South African sup- pliers to develop world-class capabilities and the capacity to plug into Caterpillar’s global supply chain, adding that this also opens up opportunities to regional and global markets. “Caterpillar welcomes the opportunity

ty Equivalent and are measurable against 25% of the value of operations in South Africa. Caterpillar applied for participation in the EEIP with the aim of empowering local and black-owned enterprises through en- terprise and supplier development. Speak- ing at the official launch of the historic empowerment deal on 4 October 2017, Rob Davies, Minister of Trade and Industry, said on 21 January 2016, Caterpillar Southern Africa was granted exemption from selling equity and was instead allowed to partici- pate in the EEIP. Caterpillar’s EEIP initiative becomes the 9 th of such empowerment deals already concluded in South Africa.

CAPITAL EQUIPMENT NEWS NOVEMBER 2017 19

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