IDA Universal

May/June 2014

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I DA U N I V E R S A L M ay -J u n e 2 0 1 4 48 enior fi gures from JCB, Caterpillar, CMC, and Case CE speak to PMV about the various benefi ts and chal- lenges involved in bringing Tier 4 engine technology to the Middle East. Driven by legislation in the U.S., Europe, and Japan, Tier 4 engines off er lower nitrogen oxide (NOx) and particulate matter (PM) emissions in a bid to help the environment and improve public health. How- ever, due to a lack of regulation and high-sulphur fuel, these engines will not reach the Middle East any time soon. Some of those working in the region will be unconcerned by this news. A er all, it could be argued that relaxed atti- tudes towards PMV regulation have allowed construction in the Middle East to fl ourish at a rate unmatched by the West during the last 15 years. Even so, there are a number of other factors to consider. In addition to lessen- ing the industry's impact on the environment and public health, tighter regulatory standards could help bring the latest equipment innovations to the region sooner. Moreover, the ability for manufacturers to roll out technologies on a global scale would help to reduce costs for end users, according to Chris Giorgianni, JCB's vice presi- dent for parts and service. "When manufacturers put two diff erent machines onto the assembly line – Tier 3 and Tier 4 – customers don't always reap the benefi ts associ- ated with economies of scale," he told PMV. "However, the ability to introduce Tier 4 technology to a particular region is also dependent on fuel quality. It would be nice to sell more Tier 4 machines worldwide, but the fuel quality is not there to support the engines. is represents one of the major challenges," Giorgianni added. Indeed, it is not merely a question of regulation. If the Middle East is to catch up with its Western counterparts, policy makers will have to push for a transition to fuel that is compatible with the latest technology. While such a move could lead to higher operating costs initially, Gior- gianni contends that the long- term benefi ts would outweigh the short-term inconveniences. "Here in the U.S., the EPA recognizes that signifi - cant numbers of premature deaths can be avoided with the enactment of these regula- tions. ere are major ben- efi ts to be gained in terms of human health," he said. Coupled with envi- ronmental concerns is the issue of fuel effi ciency. Doug Oberhelman, chairman and CEO of Caterpillar, believes that improvements in these areas represent two sides of the same coin. "Fuel effi ciency is a big deal to our customers, and it's a big deal to us," he explained. "It fi ts with Caterpillar values, including our newest value: sustainability. We've raised sustainability to a value on par with our four others: integrity, excellence, teamwork, and commitment. Sustainability is so important. We want to talk about the things that we've been doing for years, and then raise the bar even higher for the future." In Oberhelman's opinion, major OEMs such as Caterpil- lar have both the capacity and the responsibility to encourage a move towards a more sus- tainable construction sector. "What we've been trying to do for some time is to look towards those areas that are not headed for Tier 4 in the future, and not talking about Tier 4, and to get them to use low-sulphur diesel fuel," he told PMV. " at is really the driver of Tier 4. In the meantime, we're going to try to infl uence those governments to bring these requirements sooner. It's better for the environment, it's better for all of us, and it's certainly better for our industry. ere will be a fair amount of the world fi ve years from now that is still not at Tier 4 levels, but I think we have to keep plugging away to get our message out." As general manager of CMC – the UAE supplier for brands including Terex and Wacker Neuson – Joe Lahoud is acutely aware of how such a move would aff ect the Middle East's construction market. While he is confi dent that Tier 4 technology would benefi t end users in the long term, he believes that there would be little local appetite for such a move initially. " e economies of scale that would result from a single-tier format would be Is the Middle East Ready for Tier 4 Technology? S

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