Specialists from IVECO, UD Trucks and Scania speak to Domenica Smithies about demand for long-haul transportation in the Middle East, and how their brands are performing.
When it comes to hauling goods over long distances, few modes of transportation can compete with the traditional truck. These reliable workhorses have been keeping us stocked up on essentials since the late 1800s and, thanks to a plethora of innovations concerning efficiency, safety and productivity, they continue to find themselves in perennial demand.
According to Precision Business Insights, the value of the Middle East and North Africa’s (MENA) freight trucking market is on course to top $35 billion within the next five years, representing an impressive compound annual growth rate (CAGR) of 10% during the period 2022-28. Given this market was valued at approximately $20 billion in 2021, you don’t need to be an economist to see that demand for these machines is accelerating rapidly.
But are we seeing evidence of this growth on the ground? Are truck manufacturers’ order books already expanding in the Middle East? Mourad Hedna, President of UD Trucks MEENA, certainly seems satisfied with current levels of demand. “I’m pleased to say that it has been a really positive year for UD Trucks,” he tells Plant & Equipment. “We’ve recorded a strong performance in the Middle East over the past year, witnessing growth in terms of both market presence and customer satisfaction.
“Regional demand for our reliable and efficient transport solutions has been key to our company’s achievements; our commitment to delivering high-quality trucks and our reputation for excellent aftersales support are well known among our customers,” Hedna continues. “We couldn’t have achieved any of this without our team’s dedication and efforts, which have played a crucial role in exceeding customer expectations and driving positive results in the Middle East market.”
Scania Middle East & Central Asia FZE is also enjoying a buoyant period, according to Hans Wising, the manufacturer’s Regional Sales Director. “We have had a very good 12 months,” he explains. “The markets are returning to normal after the pandemic, and even exceeding pre-Covid levels in some cases. We see healthy growth across the region, but especially in Saudi Arabia. We are witnessing increased confidence from our customers and a willingness to invest in new transport capacity.”
Shahram Falati, Business Director at IVECO Africa & Middle East, agrees, noting: “Overall, compared to last year, 2023 has been a good and prosperous year in terms of order intake.
Despite supply chain difficulties, we have managed all our deliveries in the best way possible, meeting our customers’ needs and expectations.”
Encouragingly, it seems that requirements for long-haul transportation solutions are increasing across the board. “When it comes to long-haul transportation, it is difficult to identify one specific sector that is driving demand. It is more of a general increase in economic activity and trade,” says Scania’s Wising. “It varies from market to market, but the construction sector is driving general levels of demand, and megaprojects in Saudi Arabia are generating additional business.”
Falati says the breadth of IVECO’s offering is a major advantage in such an active market. “We are one of the few original equipment manufacturers to cover all segments, from on-road to off-road, offering tailor-made solutions for all types of requirements. Our diverse product line-up includes light, medium and heavy ranges. In the Middle East, sectors such as logistics and transport, construction, oil and gas, and municipalities are all driving demand at present.”
UD Trucks’ Hedna agrees that overall demand is high, but notes pronounced activity in one particular segment. “We are observing notable growth in the waste management industry, leading to increased demand for our trucks in key markets such as Saudi Arabia, Qatar, Kuwait and the UAE,” he says. “This sector’s expansion is primarily down to rapid development in the region, and key initiatives such as Saudi Vision 2030.”
So, which models are currently proving most popular among Middle East fleet operators? Falati notes that IVECO’s larger models are particularly sought after across the region at present. “Our heavy-duty trucks are well suited to typical requirements in the Middle East, especially since the launch of the new IVECO Way heavy range in December 2021,” he explains. “This range comprises the IVECO S-Way and IVECO T-Way.
“The S-Way is an on-highway truck – the ideal business solution for fleet owners and the perfect travel companion for drivers,” Falati continues. “Thanks to its new design, it is able to achieve superior aerodynamic performance, which results in outstanding fuel efficiency and notable cost savings. The T-Way, meanwhile, is equipped to take on the toughest missions in extreme conditions. It features state-of-the-art technological solutions that maximise productivity, payload capacity, safety, and driver comfort.”
“Our two most popular models are the Quester and Croner, both of which are available with either Euro 3 or Euro 5 engines,” says UD Trucks’ Hedna. “The latest Quester Euro 5 model benefits from ESCOT automated manual transmission, reduced weight and an optimised driveline. The Croner, meanwhile, is available with Allison Transmission and also in three models – the MKE, LKE and PKE – along with a range of wheelbase options, offering up to 21 different configurations.”
Scania takes an altogether different approach to meeting customer requirements in the Middle East, according to Wising. “We have no actual models as we have a philosophy of tailor-making our trucks for each and every customer and application,” he explains. “This modular concept allows Scania trucks to be optimised for each operation.
“We do, however, have some standard optimised specifications for certain applications in the Middle East,” Wising continues. “One popular and great-performing truck is the XT version of our 6×4 tractor unit, which is ideal for pulling tip semitrailers and other heavy-duty semitrailer operations over both long and short distances. XT stands for ‘Extra Tough’, and our customers can apply this version to almost any configuration of Scania truck. It includes extra-robust and reliable features, such as a 150mm protruding steel bumper, skid plate, headlamp protection, high air intake, rugged side-view mirrors and more.”
So, what does the future hold for long-distance transportation specialists operating in the Middle East? Falati says IVECO is looking to capitalise on opportunities across the region.
“Saudi Arabia is leading growth in the Middle East thanks to several ongoing megaprojects,” he explains. “However, we are also seeing strong levels of demand in countries such as Oman, Kuwait and the UAE. IVECO’s objective is to offer the perfect vehicle for each customer’s needs and demands in every country in the region.”
“Halfway into 2023, we see this as the best year since 2016 in terms of volume and market demand,” says Scania’s Wising. “We expect this to continue throughout this year and into 2024. Our customers are requesting more from us and our partners, in terms of both physical products and services to maximise their total operating economy.”
UD Trucks’ Hedna concludes: “Demand for long-haul transportation solutions is likely to remain strong in the Middle East, driven by sectors such as construction, oil and gas, logistics, and transportation. Additionally, we expect to see an increased focus on sustainability and emission-reduction measures, with stricter regulations potentially impacting the industry.”
Greener transportation
As Gulf nations continue to tighten emissions regulations with a view to minimising the environmental impact of long-haul transportation activities, brands such as IVECO, UD Trucks and Scania are investing significantly in the production of more sustainable vehicles.
“IVECO is committed to paving the way for the decarbonisation of transport,” says Falati, noting that the manufacturer has been developing alternative drive systems for more than three decades. “With constant attention to innovation and to the development of new technologies, we are pioneering natural gas and alternative traction vehicle solutions with the potential to achieve carbon-negative emissions.”
Commenting on UD Trucks’ sustainable activities, Hedna says: “We have recently introduced the Euro 5 range in line with our long-term plan to achieve a ‘Better Life’. Our aim is to establish ourselves as a frontrunner in sustainability within our sector. By transitioning to Euro 5 standards ahead of schedule in countries such as Qatar and the UAE, UD Trucks has taken a proactive approach to minimising its carbon footprint. This is all part of our wider commitment to environmental responsibility through sustainable transportation practices.”
Scania’s Wising adds: “We are ready to support the introduction of stricter emissions regulations in the Middle East with Euro 3, 4, 5 and 6-compliant engines. An added feature is that almost all Scania’s diesel units can run on any blend of biodiesel, and we can also provide vehicles that can be powered by liquefied or compressed natural gas, as well as biogas.”