international
construction
may 2014
WORLDNEWS
TANZANIA
TheWorld Bank
has approved funding of US$ 300
million to support the Government of
Tanzania’s efforts to support upgrades
to theDar es Saalam-Isaka section
of the East African Central Corridor
– relaying rail tracks, building new
intermodal terminals and repairing or
reconstructing bridges.
HUNGARY
The Hungarian
constructionmarket is forecast to
grow+10% in 2014, according to
market research firm PMR, with
civil engineering and non-residential
construction seen asmost likely
to drive the industry up till 2019.
Following a year-on-year drop of
almost -9% in 2012, construction
output recovered in 2013, growing by
approximately+10%.
UKRAINE
The European Bank
for Reconstruction&Development
(EBRD) has approved
€
350million
(US$ 485million) in financing for
Ukraine. Some
€
200million (US$ 277
million) will support rehabilitation of
road approaches to the capital, Kiev,
including sections of M05 Kiev-Odessa
andM01 Kiev-Chernigiv roads. A
further
€
150million (US$ 208million)
will support a financial framework
facility to help Ukrainian companies.
BURUNDI
TheWorld Bank has
approved a US$ 100million grant to
the Republic of Burundi to finance
a 48MW hydropower project. The
fundswill support construction of two
run-of-the-river hydro stations – one
on the Jiji River and the other on the
Mulembwe River, located about 5
km apart. The Jiji is a tributary of the
Mulembwe. On the Jiji, plans are for a
13.5m high concrete damwhile a14
m dam is planned for theMulembwe.
PAKISTAN
The AsianDevelopment
Bank (ADB) has approved a US$ 400
million loan to support the government
of Pakistan’s National Power Policy.
The policy aims to increase the
country’s electricity generation to 26.8
GW, encourage public and private
investment, and import electricity
from India, Iran and Central Asian
states. The fundswill support energy
efficiency, transmission, distribution,
cross-border natural gas pipelines,
power generation, and renewable
energy projects.
HIGHLIGHTS
GLOBAL
Equipment sales to
grow+5% in2014
Despite two years of declines, China remains the
biggest constructionmachinerymarket in the
world in unit terms
S
ales of construction equipment in China, Europe, India, Japan and
NorthAmerica are set to grow+5% inunit terms this year, according
to specialist consultantOff-HighwayResearch.All fivekey regions are
expected to see increased equipment sales this year, with Japan leading the
way inpercentage terms.The last time all five grewwas 2004.
The industry fell -1% in 2013, with sales in these territories totalling
713,363machines.This year is expected to seemore than747,000pieces of
construction equipment sold in these fivemajormarkets.
Despite two years of declines, China remains the biggest construction
machinery market in the world in unit terms, with 301,200 pieces of
equipment sold last year.Off-HighwayResearch forecasts a +1.5% increase
in volumes in 2014 to 305,605 machines. Despite the turnaround in
China’s fortunes, themarketwill still bewell below its stimulus-drivenpeak
of 487,642 units in 2011.
A more compelling good-news story is North America, where Off-
Highway Research expects a fifth consecutive year of growth in 2014. A
+5.7% increase in unit sales is expected to take the equipment market to
162,660machines.
Western European markets are set for a similar improvement this year,
following a two-year dip. Sales are expected to increase +4.5% in 2014 to
116,416machines.
Japanmeanwhile is expected to see afifth consecutive year of double-digit
growth, with sales rising +12% in 2014 to 101,718machines.This would
be the highest themarket has been for some 20 years.
Finally, equipment sales in India are expected to return to growth in2014
after two years of declines.The market is forecast to rise +8.4% to 60,655
machines.
6
CNH Industrial CEO Richard
Tobin has assumed responsibility
as brand president for Case
Construction Equipment andNew
HollandConstructionEquipment.
Mr Tobin takes over from
Mario Gasparri, the
former president of
CNH’s construction
equipment businesses,
who will remain with
the company and take
over responsibilities
for all of CNH
Industrial’s operations
in South Africa. Mr
Gasparri had been head of the
CNH construction equipment
business since April 2012.
Mr Tobin previously held the
positions of group chief operating
officer of Fiat Industrial and CEO
of CNH. The two
companies, both of
which were controlled
by Fiat, were merged
last year to formCNH
Industrial. He joined
CNH in 2010 as chief
financial officer.
Richard Tobin
ITALY
Change at the top for CNH
construction
SOUTHKOREA
Canal ruling
South
Korea’s
competition
authority,
the
Fair
Trade
Commission (FTC), has fined nine
construction companies a total of
KRW99.1billion (US$94million)
for price collusion and bid rigging
on the country’s canal construction
project.
The scandal has many parallels
with the Four Rivers Restoration
project, also a pet scheme of
former President Lee Myung-bak,
where many of the same chaebols
(conglomerates) colluded on price.
Prior to his 2008 – 2013 term in
office,, Mr Lee was chairman and
CEO of Hyundai Engineering &
Construction (E&C) in the 1970s
and 1980s, one of the companies
named in both scandals.
Four companies will face fines
in excess of KRW 10 billion (US$
9.5 million) – Daewoo E&C,
SK E&C, Daelim Industrial
and Hyundai E&C, while lesser
penalties are being imposed on
Samsung C&T, Hyundai Amco,
GS E&C, Hyundai Development,
Dong-A Industrial, Dongbu and
Halla E&C.
Five unnamed senior executives
from among these companies are
also expected to facepenalties.They
are said to havemet in a restaurant
in 2009 to discuss bids and the
division of work on the project
through collusion on bids.
