IVECO, UD Trucks, GORICA Group and Goldhofer Transport Technology speak to James Morgan about the latest innovations within the Middle East’s long-haul transportation segment.
Commercial vehicles represent the backbone of most economies’ transport markets, but the Gulf – with its vast desert expanses and fledgling rail sector – is particularly dependent on lorry and body manufacturers to transport its goods from A to B.
Analysts from Future Market Insights (FMI) predict that the Middle East and North Africa’s (MENA) truck market will grow from its current value of approximately $6.57 billion to reach $8.55 billion by 2027, representing a solid compound annual growth rate (CAGR) of 3.4 percent during this period. Increased demand is also expected to be driven by contracts related to both recent and upcoming megaevents, such as Expo 2020 Dubai and FIFA World Cup Qatar 2022.
Whichever way you look at it, it seems the region’s long-haul transportation sector has plenty of potential. While Marco Torta, Area Manager – Middle East and Gulf at IVECO, concedes that commercial vehicle manufacturers were hit harder than most by Covid-19, he is optimistic about the region’s future trajectory.
“The segment of commercial trucks suffered a lot during the pandemic and original equipment manufacturers (OEMs) are now facing market uncertainty,” Torta tells Plant & Equipment. “However, we feel that Middle East economies are recovering very quickly due to the positive effect of the crude oil price, and IVECO is ready to strike back. Today, we are covering all the main corridors and key areas with our comprehensive network, which is capable of performing high-standard servicing on premises while delivering on-site assistance through mobile workshops.”
Mourad Hedna, Middle East, East and North Africa (MEENA) President at UD Trucks, is also buoyant about his company’s regional performance. “The Middle East continues to represent an important market for UD Trucks,” he says. “A number of factors have contributed to [our strong performance] during the past 12 months. UD Trucks’ capabilities and delivery of exceptional results for its customers have been well documented, and our partnerships with key importers across the Middle East have played a crucial role in our positive sales results.
“We have also introduced new Euro 5 versions of UD Trucks’ Quester and Croner models to the region, which demonstrates our preparedness for [regulatory changes] while allowing our forward-thinking customers to take action early. Along with increased demand in the market, these factors have helped UD Trucks to achieve a significant increase in sales across the Middle East during the past 12 months.”
Even the most advanced commercial vehicles are unable to reach their full potential without the support of similarly innovative trailer and truck-body manufacturers, which is why specialist firms are working to supply supplementary transport equipment to meet the region’s heavy-haulage requirements.
Domen Bockor, General Manager – Sales and Marketing at UAE-headquartered GORICA Group, says it is vital that those operating in this space keep pace with the region’s rapidly evolving transport landscape. “As a market leader in the Middle East and Africa’s truck-body and trailer industry, GORICA is witnessing growing demand within the perishable goods segment, with increased requirements for refrigerated units, stainless-steel tankers and aluminium bunkers,” he explains. “We are also seeing significant growth within the GCC’s waste management segment, where GORICA commands a 70 percent market share for garbage compactors, including rear and side loaders, bin washers and other waste-handling solutions.
“As a result, the last 12 months have been very positive, especially in the UAE, Saudi Arabia and African markets,” Bockor continues. “We are also encouraged by the fact that the construction industry is once again focusing on mega and giga projects in several Gulf states and parts of Africa.”
Despite signs of recovery, Dean Exner, Regional Director of Sales at Goldhofer Transport Technology, believes there is significant room for improvement when it comes to market activity. “The last 12 months have been quite challenging,” he explains. “The political situation in some parts of the Middle East is not especially helpful, and the region is clearly driven by price [at present]. Even so, we have secured some good orders from both existing and new customers.”
Given this backdrop, what are the primary focuses for those supplying trucks and trailers to the Middle East at present? Torta says that in the current climate, it is essential for OEMs to deliver value for money for their end users. “In the face of fierce competition, logistics operators are demanding optimised uptime, efficiency and productivity from their fleets,” he explains. “The new IVECO WAY heavy range – which includes the T-WAY off-road and S-WAY on-highway models – perfectly encapsulates these requirements, providing a complete package of features developed around the driver. By redesigning the cab from the ground up and developing a business model that covers the vehicle’s entire lifecycle, IVECO has seized every opportunity to deliver cost savings and productivity gains to maximise profitability for its Middle East customers.
“We have also been working to strengthen our light-range sales,” Torta continues. “Despite a challenging year [since the pandemic], we have registered an improvement of approximately 20 percent in sales with signs of recovery in most regional markets. Providing the economic situation maintains its pace during the remainder of 2022, we think volumes will fully recover in line with the region’s potential.”
Like GORICA, UD Trucks is working to capitalise on increased demand within the region’s waste management industry. “We’re currently witnessing an expansion within this sector, which has been driving demand for our models in markets such as Saudi Arabia, Qatar, Kuwait and the UAE,” Hedna explains. “This growth is partly due to the region’s rapid development and long-term plans such as Saudi Vision 2030. We therefore expect demand for trucks within the waste management space to continue growing over the longer term.”
When it comes to the trailer and truck-body segment, Bockor says that safety, capacity and improved productivity represent GORICA’s main focuses. “To meet market demand for low-weight solutions, we are constantly working to optimise our products by allowing our partners to carry more within regulatory limits. Our aluminium fuel tankers, for example, are manufactured in line with international safety and design standards such as ADR, ensuring that they adhere to local road traffic regulations and practices. One of the key advantages of these tankers is that they feature a shell thickness of 6.1mm, meaning they can operate effectively in the Middle East’s harsh environment where temperatures and humidity levels can reach more than 55°C and 80 percent, respectively.”
Goldhofer, meanwhile, is working to cater to requirements within the Middle East’s energy industry. “Demand for our units is currently highest within the oil, gas and wind turbine segments,” says Exner. “Our THP and PST trailer modules are therefore proving most popular. With this in mind, we will continue to work to produce superior-quality, reliable and cost-effective products, manufactured in Germany, for our Middle East customers.”
Challenges aside, it seems that the region’s long-haul transportation sector is continuing to recover from the impact of the pandemic, and companies such as IVECO, UD Trucks, GORICA and Goldhofer are working hard to ensure they are well placed to capitalise on any future demand. So, what trends do OEMs expect to emerge over the coming months and years?
“This has been a positive 12 months for us, and the outlook for the rest of 2022 looks promising,” says Hedna. “UD Trucks expects strong growth across the Middle East over the longer term, despite the challenges our industry is facing.”
Torta concludes: “We believe that the IVECO’s new heavy range, which exemplifies the achievements of our product innovation cycle, symbolises our reinvention in the region. The coming years will see a high frequency of regulatory challenges for the Middle East’s long-haul transport professionals, spanning emissions, safety and connectivity. When we decided to develop our new models, we knew we were building trucks for the next decade.”
