internationalJANUARY-FEBRUARY 2014 Vol 53 No 1 construction A KHL Group publication www.khl.com EXHIBITION ConExpo show guide P26 EQUIPMENT Drilling P51 REGION China P21 CompactsSECTORSES CTOR P39 ICON 01-02 2014 Front Cover.indd 1 24/01/2014 09:37:12 Full page.indd 1 23/01/2014 15:09:54 KHL OFFICES UNITED KINGDOM (HEAD OFFICE) Southfields, Southview Road, Wadhurst, East Sussex TN5 6TP, UK. Tel: +44 (0)1892 784088 Fax: +44 (0)1892 784086 www.khl.com COMMENT USA OFFICE KHL Group Americas LLC 3726 East Ember Glow Way, Phoenix, AZ 85050 USA t the start of March I will be packing my bags and heading to Tel: +1 480 659 0578 Las Vegas along with about 130,000 other people from around e-mail: [email protected] the world. This may sound like the preamble to some sort of SOUTH AMERICA OFFICE A KHL Group Américas LLC huge international Blackjack tournament, but the trip is actually for the Manquehue Norte 151, of 1108. Las Condes, Santiago, Chile ConExpo-Con/Agg exhibition, which kicks off on March 4. Tel: +56 2 2885 0321 As has been the case for 15 years or so, many of the new machines at e-mail: [email protected] the show are being launched in response to new exhaust emission laws CHINA OFFICE KHL Group China for off-highway diesel engines in the US, Europe and Japan. This time Room 768, Poly Plaza, No.14, South Dong Zhi Men Street, Dong Cheng District, around it is the US Tier 4 Final laws and their equivalents around the Beijing 100027, P.R. China. world that are the driver. Tel: +86 (0)10 6553 7678 e-mail: [email protected] They start to come into force this year, and the laws mean new construction machines in these parts of the world must be fitted with KHL SALES engines that are so clean that the exhaust gasses contain the same levels REPRESENTATIVES ADVERTISEMENT MANAGER and of pollutants as the air in many cities. A few engine manufacturers say BELGIUM/THE NETHERLANDS/INDIA that at Tier 4 Final levels their engines act as air cleaners in some places, Alister Williams, UK Head Office Tel: +44 (0)1892 786223 and they are not joking. e-mail: [email protected] Achieving such standards has been a long road for the industry. It has CORPORATE ACCOUNT MANAGER David Stowe, UK Head Office cost billions of Dollars for engine manufacturers to develop pollution Tel: +44 (0)1892 786217 control technologies – many of which have come from the on-highway e-mail: [email protected] GERMANY/AUSTRIA/SWITZERLAND/ sector – and adapt them to this industry. Then it has been the task EASTERN EUROPE of construction equipment manufacturers to keep redesigning their Simon Battersby, UK Head Office Tel: +44 (0)1892 786232 machines to accommodate these new engines with their additional bulk, e-mail: [email protected] different cooling requirements and ever more complex sub-systems. CHINA Cathy Yao But the key word in the current round of legislation is ‘Final’. For Tel: +86 10 6553 7678 the moment at least it is the last piece of legislation on the horizon for e-mail: [email protected] FRANCE engine emissions. The future may see further laws come into force. In Hamilton Pearman Europe for example, a Stage V is mooted. More generally there is a talk Tel: +33 1 45 93 08 58 e-mail: [email protected] around the world of new systems to limit the number of very small ITALY particles emitted by exhaust streams, as these are the most damaging to Fabio Potestà Tel: +39 010 570 4948 health. There may also be legislation on CO2 emissions for the industry e-mail: [email protected] to get to grips with at some point in the future. But none of these issues JAPAN Akiyoshi Ojima are imminent. Tel: +81 (0)3 3261 4591 So what will engine and equipment manufacturers do now their R&D e-mail: [email protected] departments are not so burdened with wave after wave of emissions KOREA CH Park laws? The first answer is that many will cut theirtheir R&D spendspend – it hashas Tel: +82 2 730 1234 e-mail: [email protected] been a long and expensive journey. NORDIC COUNTRIES The second answer is that they will startart to looklook at otherother areas. FuelFuel Peter Gilmore Tel: +44 (0)20 7834 5559 economy is an issue that is not likely to gogo away andand therethere may now bebe e-mail: [email protected] more resources available in the industry toto start tacklingtackling thisthis issue. More TURKEY efficient engines could be the result, as couldould alternativealternative approachesapproaches likelike Emre Apa Tel: +90 (0)532 324 36 16 hybrids and even machines with differentnt powerpower sources.sources. e-mail: [email protected] New more efficient powertrain and hydraulichydraulic systems may aalsolso bebe SPAIN Mike Posener an area of research. Another angle is to findfind ways ofof integrating allall thethe Tel: +353 86 043 1219 e-mail: [email protected] systems on a machine much more closely,y, whichwhich maymay alsoalso deliverdeliver betterbetter UK overall economy. Lynn Collett, UK Head Office These are just a few of the areas the industryustry couldcould start to headhead in nownow Tel: +44 (0)1892 786219 e-mail: [email protected] it is freed from the burden of exhaust emissionsmissions legislation.legislation. USA/CANADA Gary Hynes Tel: +1 312 929 3478 Fax: +1 312 624 8673 Chris Sleight e-mail: [email protected] CLASSIFIED SALES Editor Paul Watson, UK Head Office Tel: +44 (0)1892 786204 e-mail: [email protected] International Construction (USPS No: 021-895) is published monthly by KHL Group and distributed in the US by DSW, 75 Aberdeen Rd, Emigsville, PA 17318-0437. Periodicals postage paid at Emigsville, PA. Postmaster: send address changes to International Construction, PO Box 437, Emigsville PA 17318-0437. The paper in this magazine originates from timberr that is sourced from sustainable forests, managed to sstricttrict environmental, social, and economic standards. Thehe ISSN No: 0020-6415 manufacturing mill has both FSC & PEFC certification,tion, USPS No: 021-895 and also ISO9001 and ISO14001 accreditation. © Copyright KHL Group 2014 january-february 2014 internationalconstruction 3 ICON 01-02 2014 Comment CS.indd 3 24/01/2014 09:38:44 KOBELCO CRANES STRENGTH THROUGH EXPERIENCE Since 1930 KOBELCO G-Series • Up to 25% reduction in fuel consumption thanks to G-mode, 3 new Energy Saving Systems from KOBELCO: G-Engine, G-Winch and Auto-Idle-Stop • Ergonomic, luxurious, spacious cab with Joysticks • Euro Stage IIIB compliant Power Plant • Dual pump fl ow for clamshell, bucket or material handling* • Tractor-type crawlers with large variety in shoes* • Large, colour monitor with pictograms provides outstanding visibility and immediate comprehension of essential operating data • Innovative, low weight upper frame and body within 3m transport width • Over-swing preventative device* • Machine inclination sensor* • Counterweight detect system* • Unrivalled smooth operating comfort • High precision in positioning loads • Fast assembly and disassembly • Effi cient transport • Wet-type disk brakes for powerful, stable braking • Low maintenance • Wide, large-capacity winches improve spooling and extend wire rope life • Excellent reliability • Worldwide service * optional items KOBELCO G-Series for crane owners looking for increasing operating ratio, while reducing operating cost, instant access to smooth and effcient transport, increasing resale value, providing operators with even greater operating comfort, while saving the environment by consuming up to 25% less fuel and by lowering emissions, with upto 25% less CO2, 50% less NOx and 90% less particle emissions. For info please contact: [email protected] www.kobelco-cranes.com KobelcoFull page.indd CKE1100 1 G-Series ConExpo flash.indd 1 13/01/201423/01/2014 15:11:2415:10:29 JANUARY-FEBRUARY 2014 Vol.53 No.1 internationalJANUARY-FEBRUARY 2014 Vol 53 No 1 construction international A KHL Group publication www.khl.com construction OUTSIDE EXHIBITION ConExpo INSIDE show guide P26 International Construction , incorporating EQUIPMENT Drilling Construction Industry International and P51 REGION The compact China World Construction, is available free of NEWS 6 P21 charge on request to anyone who falls A dispute has arisen between the Panama Canal equipment sector within the controlled circulation criteria. Authority and he contracting consortium over US$ 1.6 comes under the Official publication date is the 15th of billion in cost overruns. spotlight on p. 39. SECTORSES CTOR each issue month. Compacts It is available to anyone who does not P39 meet the criteria at an annual subscription ICON 01-02 2014 Front Cover.indd 1 24/01/2014 09:37:12 rate of UK£185, US$295, €225. € BUSINESS 10 Single copies: UK£15, US$24, 18. Amec has made a US$ 3.2 billion cash and shares offer to acquire Foster Wheeler . WWW.KHL.COM 13 STAFF LIST President of Chinese construction equipment Editor manufacturer Liugong doesn’t hold back in one of the Chris Sleight BEng (Hons) latest additions to the Video Zone. e-mail: [email protected] direct tel: +44 (0)1892 786205 Deputy Editor 6 Helen Wright ICEF 15 e-mail: [email protected] direct tel: +44 (0)1892 786209 This year’s International Construction Economic Editorial Director Forum will take place in London with a full, but more Paul Marsden BSc streamlined programme. Editorial Team Lindsey Anderson, Clarise Arduz, Alex Dahm, Lindsay Gale, Sandy Guthrie, Laura Hatton, Cristián Peters, 15 Murray Pollok, D.Ann Shiffler, Anna Sun, Euan Youdale ECONOMIC OUTLOOK 17 Advertisement Manager Growth support policies are helping to drive the Alister Williams Chinese construction sector, but care will be needed not e-mail: [email protected] direct tel: +44 (0)1892 786223 to repeat the mistakes of the past.