The GCC’s market segment for trucks and other commercial vehicles is being afflicted by ideological schizophrenia. On the one hand is the acceptance of pollution as a regional problem and the attempts of the various government to mitigate this by promoting low sulphur diesel — and in the UAE’s case, introducing charging stations for electric and hybrid vehicles. On the other is the low level of mandatory standards set by the GCC Standardisation Organization (GSO), and the natural unwillingness from parties within the industry to stick their necks out over the issue.
More recently, any opprobrium that might have arisen as a result of the World Bank’s report on ‘global development indicators’, which named the UAE as the world’s most polluted country, was surely drowned under the swell of discussion over the deregulation of fuel prices.
One man nevertheless speaking up for the mandatory adoption of Euro V emission standards for heavy vehicles is Dr Richard Brown, head of product management at MAN Truck & Bus ME, who notes: “It would be false to claim there are no cost implications for the purchase and operation of Euro V-compliant vehicles. There is indeed a purchase price difference, but in many countries there are also subsidies provided for transport operators to encourage the introduction of vehicles with lower emissions.
“With the introduction of low sulphur diesel, the UAE government has made a significant and ongoing investment into emission control, but expanding the legislation to mandate the use of Euro V-compliant vehicles would undoubtedly have a significant impact on air quality, assuming periodic testing of the vehicles and enforcement is also implemented.”
The active GSO standard, 144 (1991), currently demands emission standards that fall below Euro 1 for heavy duty vehicles in most pollutant categories, with the exception of Carbon Monoxide (CO), while petrol-powered light commercial vehicles must meet Euro 1 targets. There was a proposed change to the GSO standard in 2011 that would have held heavy diesel engines to the equivalent of Euro II, but the measure has not been enacted.
In this light, most manufacturers and dealers in the region are paragons of environmental virtue by comparison, proffering Euro III engines above and beyond the call of duty.
As a result, the regional benchmark is in practice being set by manufacturers, and Lars-Erik Forsbergh, president of Volvo Group ME, states: “We are using Euro III engines in line with the market regulations and requirements.”
It is not an exaggeration to say that the reality for many manufacturers is that they simply do not make vehicles of low enough quality to fall below Euro II or Euro III thresholds.
However, in the absence of government-mandated quality controls, the region’s top manufacturers are still pushing for efficacious developments wherever they can conceivably ensure customer uptake based on the cost benefits.
Volvo’s Forsbergh continues: “Our new range of commercial vehicles, launched in the Middle East in 2014, is the direct result of research and development into new technologies and more aerodynamic designs. These innovative solutions have a clear purpose: to help improve truck productivity and durability, and consequently customer efficiency and profitability.”
“In 2014, deliveries in the region rose by 24% compared with 2013, while and our parts sales rose by 27%. The UAE and Iraq contributed to our positive results in the region, increasing deliveries by 49% and 67%, respectively.”
For MAN, in spite of Dr Brown’s aspirations, he explains: “In Middle East we predominantly deliver vehicles of Euro II standard for the heavy transport sector and Euro III for light and medium weight categories — for distribution and municipal clients.
“Aggregating 2000-2015 sales, Euro II represented 80% of MAN deliveries to the Middle East.”
This may seem like a far cry indeed from a vision of Euro V, but it is a function of ens user hesitance over the increased costs associated with higher stage engine uptake.
Interestingly, fuel costs cannot be used as an objection to high stages, as comparing test bench results for Euro II and Euro IV 480hp engine variants, Dr Brown notes: “The fuel consumed is 188g/kWh – an identical value for both engines. Theoretically therefore, there is no difference in fuel consumption between the Euro II and Euro V variants (represented as a static value at one point of time) — although this does not provide a representation of the dynamic conditions of a vehicle in operation.”
However, Dr Brown adds that in operation the Euro V-compliant vehicles are only a “little more expensive” to run than low stage technology, and point outs that in contrast, “the increase of service interval periods will help to reduce the operating costs”.
Another example is that while MAN advocates the use of its performance additive MAN AdBlue for higher stage vehicles, Dr Brown says it is “relatively inexpensive”, while by comparison, oil consumption “could be reduced by up to 50% within the MAN maintenance network.”
Needless to say, a wide array of costs are involved in any vehicle operation. In trials of an LNG-powered Stralis, Iveco recently demonstrated with by increasing the length of the commercial freight vehicle from 16.5m to 18m transport efficiency improved by almost 10%.
In a similar vein, trailer type and design can play a significant role in overall efficiency.
At the recent launch of the Dubai-based Bion Group’s fifth-generation Hardox tipper trailers, one of the advantages touted was the aerodynamic design — for reduced air resistance, better performance and extra fuel efficiency.
The same is true in the case of the diverse range of trailers produced by Dubai’s Gorica Group, this year marking its 25th anniversary.
Domen Bockor, general manager for sales and marketing, notes that Gorica is seeing “a strong demand for general cargo semi-trailers, transit cement mixers and bulkers, and tankers”.
Despite the low oil prices Gorica’s oilfield and pressurised vessel programme is also doing well, alongside growth in its Krone Reefer refrigerated semi-trailers, which the group produces at a Danish factory acquired in 2013.
“Last but not least, municipality products like refuse collectors, vacuum tankers, hook lifts and skip loaders are on the rise as more municipality services are being outsourced to private cleaning companies,” adds Bockor.
Saudi Spring
Slightly more radical machinations are at work in Saudi Arabia, which already boasts Euro II regulations across the board, and where Bengt Schultz, GM for Jeddah-based Rolaco Equipment, notes: “It is expected that by 2018 [the country] will be shifting to Euro IV engines.”
He continues: “There is a strong demand for heavy trucks, which we are hoping to capitalise on in 2016, when we will roll out a range of UD trucks differentiated by their attractive cost.
“Our current highest spec is offered through our 4×2 Condor PKC model which has a gross vehicle weight (GVW) of 16.5t. Our new UD ‘Quester’ line-up, available from Q1 2016, will range from a 4×2 rigid truck with a GVW of 56t to a 6×4 tractor or semi-trailer truck with an impressive gross combined weight of 80t. UD is part of the Volvo Group and the Quester will ensure the highest safety measures in its class.
Schultz adds: “We have stood strong with Eicher and UD Trucks, the latter first being introduced into the Saudi market in the 1960s, securing a reputation for high performance.
“We see good demand across the Kingdom. Sure, the large projects in Riyadh and Jeddah drive demand, but demand in the other regions is being sustained at a good level.”
For Volvo proper, Forsbergh adds: “The Volvo FH has been Volvo Trucks’ flagship model for almost 20 years, accounting for more than 60% of total global sales, and the new Volvo FM is already set to achieve better results, having been named International Truck of the Year in 2014.
“We also see a strong potential in Egypt with all the planned major development projects.”
Contrasting performance with Euro V concerns, Dr Brown concludes: “There will continue to be resistance from operators over the cost implications of Euro V for operations — particularly as the increased complexity of the vehicles requires more skilled maintenance teams.”
He adds: “Pushing for a reduction in the pollutants from diesel engine vehicles for the sake of improved air quality is an emotive step.”
