Boost to CE Demand: Soon Work to Start on Mumbai Trans Harbour Link Project as JICA Clears Rs 7,910 Cr.

Soon the huge amount of construction equipment would require for the construction of Rs 17,750 crore Mumbai Trans Harbour Link (MTHL) project, as the work on India’s longest sea bridge project would soon hit the ground as Japan International Cooperation Agency (JICA) has recently cleared the first tranche of Rs. 7,910 crore, which is about 45% of the total cost of the project.

On 31st March, Japan International Cooperation Agency (JICA) and the Mumbai Metropolitan Region Development Authority (MMRDA) signed an agreement, in New Delhi, for the disbursement of the first tranche of Rs. 7,910 crore for MTHL project. The JICA has agreed to fund 85% of the total project cost of Rs. 17,843 crore.

The agreement was signed by Mr. Sakamoto, Chief Representative of JICA and Mr. U.P.S. Madan, Metropolitan Commissioner, MMRDA. The MMRDA is the nodal agency for implementing this project.

The consortium of AECOM-DAR-PADECO-T.Y. Lin have been appointed as general consultants for the project in which JICA has committed to fund 85% of the cost.

While commenting the loan agreement, Mr. Madan said, “This is a big boost to the Mumbai Trans Harbour Link as we have already shortlisted contractors, who have been issued Request for Proposal for the execution of the project.”

The MMRDA had invited tenders for the MTHL project and already shortlisted consortium of contractors for its three different packages. This 22km MTHL project is divided into 3 packages, the first two packages comprise the construction of 16.5km sea bridge component and a package for 5.5km long portions on land.

The authority shortlisted 7 consortium companies each for first two packages and 15 for the third package.

The last date for submitting the RFP (Request for Proposal) documents was April 5, 2017, the names of the final bidders are expected by the end of April or in May. The work on this project will kick-off soon after the final bidders will be selected, as the required fund is already cleared by the international investment banker JICA.

As JICA agreed to fund 85% of the MTHL project, the rest 15% fund for the project is to be managed by the state government, In MMRDA Budget-2017-18, the provision of Rs. 1,200-crore has paved way for the speedy implementation of this project.

The 22km-long Sea Bridge will be a six-lane (three lanes each way) with a width of 27 metres, will connect Sewri in Mumbai with Nhava in Navi Mumbai. The MTHL Project will give easy and fast connectivity between Navi Mumbai and Mumbai, International airport in Navi Mumbai, and provide the convenient gateway to Pune Expressway and further to Southern India.

This large infrastructure project would further generate the demand for various types of construction equipment in the Mumbai region. Heavy equipment like Excavators, bulldozers, asphalt mixers, different types of cranes, material handling equipment, fabrication equipment, Backhoe loaders, Motor graders, and others will see the demand during the construction period. The project will give a boost to both CE and rental market in the region.

The project is expected to be completed by 2021.

Source: Information has been obtained from MMRDA, JICA

Advertisements

Another Boost To CE Industry, Cabinet Approves Rs 4500 Crore To Revive 50 Regional Airports

The Union cabinet on Monday has approved a proposal to spend Rs 4,500 crore for the revival and development of 50 un-served or under-served airports and airstrips in the country. The move would boost the Indian aviation sector and increase the regional connectivity.
As per the official statement, around 15 airports or airstrips will be revived during financial year 2017-18 and 2018-19 each, while remaining 20 airports or airstrips would be revived during FY2019-20.
The revival of these un-served or under-served airports and airstrips will connect small cities or towns on commencement of the operation of flights. The move will further boost the economic development in these areas and also create employments and related infrastructure in the surrounding areas.
“The Revival of airstrips/airports will be ‘demand driven’, depending upon firm commitment from airline operators as well as from the State Governments for providing various concessions as Airports will be developed without insisting on financial viability,” said the government in a statement.
During Union Budget 2016-17 Finance Minister Mr. Arun Jaitley had announced for making adequate provisions for revival of un-served and underserved airports in the country.
The huge investment of Rs 4,500 crore would further boost the Indian construction equipment industry, which is entirely depends on the infrastructure investment in the country, thus the CE manufacturers will continue to witness the remarkable sales growth for another year. Last year, as a result of the investment in infrastructure projects, especially in road sectors, the demand of construction equipment grew after a gap of four years.
The government had already announced the investment of Rs 3.96 lakh crore in the budget 2017-18 for the development and modernizations of roads, railways and ports sector. The government is committed to spread new railways lines of 3,500 km and allocated Rs 64,900 crore for the development of highways in the next fiscal, the investment would further drive the sales of road building equipment in 2017 after remarkable sales growth in 2016.
In budget 2017-18, the government alone allocated Rs 2.41 lakh crore for the transportation sector. The Indian government is mainly betting to improve urban transport infrastructure to meet the need of rising urban population in the country. Currently, various Metro rail projects are under way in cities Like Mumbai, Pune, Nagpur, Hyderabad, Chennai, Lucknow, Ahmedabad, Kochi, Kanpur, Noida, Navi Mumbai and others and other metro rail projects are under the planning stage.
Various research reports are also optimistic for the Indian construction equipment market and project positive sales growth on the back of government investment in infrastructure projects.

These Reasons Hold Value in Used Construction Equipment

The used construction equipment market is quite promising ahead in India as many people started realizing the need of using second-hand construction equipment in order to reduce their project cost.  The used construction machinery is having various other advantages which considered at the time of purchase.

The prime reason to prefer used machine is pricing. Contractors purchase the second-hand machines only to reduce their overall project costs. The other benefits which can consider at the planning stage are as follows:

Avoid depreciation
When you buy the used construction equipment means you are buying it in depreciated value. Usually, the price of construction machinery can depreciate around 20 to 40 percent in the very first year depending on the condition of the machine. As you have purchased the machine in depreciated value, its resale value will hold for a longer period and potential loss in selling used equipment is less compared to selling new equipment.
Maintenance holds value for long
As we said above, the potential loss in selling used equipment is less compared to selling new equipment. The real value of any used construction machinery entirely depends on its maintenance. As long as we maintain it, the resale value of your machine will be high and anytime in the near future, it can be sold to price close to it was purchased.
Technology Concern
Many construction equipment manufacturers started coming up with machines with the latest technology. However, it is one of the facts that technology in heavy construction equipment does not change rapidly, so there is no issue or any disadvantage of using three to four years old machines for the project.
Low cost of ownership
With the purchase of the used construction machine, you can be the owner of the machine at a low cost. Many contractors require the specific equipment for specialized work on the site, in that condition owner can manage to purchase the second-hand machine at a low price and it also gives the flexibility to upload it after the use without any major loss.

Avoid long order with new
Many times, people have a long waiting list when looking for a certain type of new heavy construction equipment. But construction projects always get delayed due to various other reasons. Thus, contractors do not want to wait for long for the delivery of the new machine, and it can be fulfilled with the purchase of the second-hand machine.  With the emergence of online portals like www.equipmentonestop.com, the buying any types of used construction machine in India has become quite easy.

Looking for Used JCB Backhoe Loaders, This Website Equips You With Varieties of Models

A Backhoe loader is one of the most versatile heavy construction equipment, mainly used in urban engineering and small construction projects. Contractors use it for diverse construction works such as building small houses, fixing urban roads, small demolition, digging holes, laying pipes, breaking asphalt, setting up drainage system, transport heavy items, and others.

Various reports suggest that the demand of Backhoe loader in India is on rising and expected to continue for the over next few years. In India, JCB is the market leader in the Backhoe Loader for more than three decades. Therefore, JCB’s Backhoe Loaders are often the first choice for many contractors. Due to its brand value and quality products, its resale value is also very high as compared to other brands.

We have noticed many individuals and civil contractors specifically inquire to http://www.equipmentonestop.com (the leading website for buying and selling used construction equipment) for second-hand JCB Backhoe Loaders and we successfully met the requirement of people visited the portal.
Currently the portal is having two famous JCB models,  JCB 3DX Backhoe Loader and JCB 432ZX in various cities like Mumbai, Pune, Thane, Hyderabad, Bengaluru, Jaipur, New Delhi, Haryana, Raipur, Chittorgarh, Bhilai, Hassan (Karnataka), Gandhidham (Gujarat), Jaipur (JCB 432ZX ) Tonk, Bharatpur, and Bhilwara (Rajasthan).  The range of these two models varies between Rs 4.75 lakh and 32 lakh depending on the make year, maintenance history, and current condition of the machines.
We also allow buyers to further negotiate with sellers where you are convinced it’s a great deal.
Previously, people have bought different other JCB models through the portal in various states.
If you are also looking for any specific model of JCB’s Backhoe Loaders in your city, please visit the website to search your favourite model. In case, if you are from some remote part of the country, we still provide the model which meets your project requirement using our wide range of dealers’ network.
The best part of buying the used Backhoe Loaders from this portal is, it gives you the ease to access different JCB’s models at a time, and it gives you the flexibility to choose the model which suits your project.
You can also log on to www.equipmentonestop.com to purchase used Backhoe Loaders from other brands.

Points to Remember When Buying Used Concrete Pumps

At the construction site, Concrete Pump is one of the most crucial construction equipment. The machine is specially used for transferring liquid concrete by pumping for accurate pouring concrete where it is required.  The Concrete Pump is very effective and economical machine for all types of construction projects from small to large residential and commercial construction project.

There are three major advantages of using the Concrete Pump; one is, increasing the concrete pouring speed as we know the speed is a crucial aspect of construction projects.  Second – it ensures higher accuracy and quality in concrete pouring irrespective of using any types of concrete pump, and third- this machine requires less manpower, using it requires fewer labours than conventional methods of concrete placement. It also helps in reducing the labour cost of projects.
It not only gives the higher accuracy and quality in concrete pouring, but also provides perfect concrete pumping results with zero material wastage.
Primarily there are two types of Concrete Pumps, The Boom or Truck Mounted Pumps and Line or Trailer-mounted Pump. The Boom Concrete Pump is attached to a truck or longer units are on semi-trailers, it is also called truck-mounted boom pump. These concrete pumps are mostly used in large construction projects as they are capable of pumping the high volume of concrete in less time.
Line Pump requires steel or flexible rubber hoses to be manually attached to the machine. Here the machine usually pumps concrete at lower volume than a Boom concrete pump, it is mainly used for applications that require smaller volume pumping like sidewalks, swimming pools, and small houses concrete slabs.
Both concrete pumps have their specific application at the sites, therefore it is important to pick up right concrete pump by considering your requirement.
Buying the New concrete pumps is always worthy as it gives better and smooth production, especially if you are buying it from a well-known brand such as Schwing Stetter, Putzmeister Greaves, and others.  But people are very confused investing in used concrete pumps or any other used construction machines, so having the idea of ‘Do’ and ‘Don’t’ at the time of buying used concrete pumps, will prevent you to invest in mediocre concrete pumps which will further consume your money in servicing and repairing.

Remember these points when looking for a used concrete pump

  • Buy it from trusted sellers.
  • Buy machine checked by an expert.
  • The Boom Pumps and Line pumps have different applications; ensure you are buying the pumps which suit your application.
  • Always remember purchasing wrong machine can cost you more money (in servicing, repairing), Ensure, when was the last Boom inspection
  • Ask owner, when he changed the Hydraulic oil last time.
  • Ask for the service record of the pump from the owner .
  • Ensure the differential cylinders are in good shape.
  • Personally inspect the machine when it buys from an online player (www.equipmentonestop.com) .
  • Even buying the second-hand concrete pumps, ensure you give preference to Brand, as the brand has always higher resale value.
  • Ensure machine is not too old; give preference to less older machine.

Forklift Market is Expected to Reach USD 51 Billion by 2022: Report

The global Forklift market is projected to touch USD 51 billion by 2022, growing at a compound annual growth rate (CAGR) of 6.6% during the forecast period, and Asia-Pacific region is expected to continue its dominance in the global forklift market,  said a report published by market research firm Allied Market Research.

As per the report, the sale of forklift is anticipated to grow due to the rise of Automotive and Food industries, both the sectors are likely to drive the market growth.

“Japan, China, and India are the major economies in Asia-Pacific that contribute to the adoption of forklift trucks. In addition, China’s fast-growing e-commerce sector drives the demand for electric forklift trucks such as LMH’s newly developed pallet stacker. Moreover, stringent government regulations related to carbon emissions in Japan and China and rise in adoption of electric forklift truck are expected to fuel the electric forklift truck market growth in the future,” said Ms. Komal Sharma, Research Analyst, Automotive and Transportation at Allied Market Research.

She further added, “Food industries and logistics are identified as lucrative targets for investment in this market, which are expected to rise with the highest market share owing to increase in adoption of forklift trucks.”

According to the report, the forklift market would witness notable growth in future due to competitive advantages of electric models forklift, like high efficiency, eco-friendly nature, and low operation cost as compared to other forklift trucks. The IC engine enabled forklift is expected to grow at CAGR of 5.8%

Looking at the product type, the forklift market is bifurcated into warehouse model lift trucks and counterbalance forklift trucks, as per the report, the warehouse forklift is projected to touch USD 14 billion by 2022 at the highest CAGR of 7.4%, whereas counterbalance forklift will continue to be the largest revenue generator.

Looking at the geographical growth of the Forklift market, Asia-Pacific continues to maintain its dominance ahead as well, its revenue likely to reach USD 25 billion by 2022 from USD 15 billion in 2015. Europe and North America are the second and third leading regions respectively followed by LAMEA (Latin America, Middle East, and Africa).

Major players in forklift market are Toyota, Mitsubishi, Komatsu, Kion, Crown Equipment, Jungheinrich, Hyster-Yale, UniCarriers, Hangcha, and Anhui Forklift Truck Group, said the report.

As a part of the business strategy, these companies will launch new products and expand their business operations in emerging countries.

Increasing Practice of Leasing Construction Equipment to Reduce Project Costs Will Drive CE Rental Market: PMR

The construction equipment rental market is expected to witness the robust growth in next 10 years on the back of the increasing practice of leasing construction equipment across the World including India,  said a report. The companies across the world prefer the renting option to reduce project costs.

An abstract of a report titled ‘Construction Equipment Rental Market: Global Industry Analysis and Forecast 2016-2016’ published by Persistence Market Research said that practice of leasing heavy construction equipment has proven to be beneficial for all sizes of the companies across the world which would result into boosting the rental market during the forecast period.

The report observed that construction equipment rental market will majorly get benefit from investments in the sectors like transport, housing, energy, and power. With such high level of investments in these sectors, the construction companies are expected to prefer the renting option as to reduce their overall project costs.

“This is a cost effective approach as in doing so they face lower maintenance costs and fewer technical charges. Adding to that, transportation, operation and servicing requirements are reduced many folds. Both these factors fuel demand for the construction equipment rental market in the coming future,” said the report.

The other reasons which would drive CE rental market during the period are; renting reduce operating expenses and evade tax, insurance, licensing, interest on loans, storage cost, and others which usually come with purchasing new machines. These expenses can be saved by renting the construction equipment.

The inclusion of a varied range of advanced construction equipment in rental fleets is expected to drive the rental market in all the major markets in the world. The other key reasons which would fuel the construction equipment rental market during the forecast period are strict regulations, increasing ownership cost and financial constraints.

On the other hand, the major obstruction for the demand for renting construction equipment during forecast period would be fluctuating fuel prices, expenditure of picking up and delivering machinery, especially when the contractor is working in remote areas.

According to the report, the demand for advanced and eco-friendly machinery will rise, and low maintenance machinery is expected to castaway conventional equipment during the forecast period.

The study is very bullish on Asia pacific region, the region is expected to dominate the construction equipment rental market over the forecast period. India and China are expected to offer better opportunities due to rising population and urbanization, and the growth in IT sector will further push the construction equipment rental market.

China’s Leading Construction Equipment Company XCMG to Invest Over Rs. 1,000 cr to Set up Manufacturing Facility in India

China’s leading construction equipment maker and World’s 5th largest construction Machinery Company, Xuzhou Construction Machinery Group (XCMG) China has announced on Thursday that it will invest USD 150 million to build its first manufacturing plant in India in a partnership with SCHWING Stetter India (a concrete equipment manufacturing company).
From the new manufacturing plant, the company would produce construction and material handling machines. With this facility, the company eyes substantial market share in India and also plans to export neighboring countries.
Commenting on this investment, Mr. Wang Min, Group Chairman of XCMG China said, “We have been eyeing the robust Indian market for the past few years, because of the vast potential it possesses. Moreover, our strategic partnership with Schwing Stetter who is already a pioneer in the Indian construction space is extremely valuable to us at this key juncture. We are sure that our products will reach the right audience in the Indian market through this partnership.”
XCMG China planning to produce its ‘Made in India’ products within a time frame of one year, however, the company is yet to finalise the location to set up the manufacturing plant. It is looking for the place near Chennai.
The strong management capabilities of SCHWING Stetter will help XCMG to meet their growth targets and expectations in the Indian market as well, said the company in a joint-statement.
Mr. Anand Sundaresan, Chairman, Schwing Stetter Sales & Services India said, “We are happy to be associated with XCMG to grow our businesses in the Indian market. Aligning with the Make-in-India initiative, our new facility will now manufacture Construction equipment and material handling products, thus enabling us to widen our product range. Our extensive reach across India, will help us build brand XCMG in the country.”
Soon a technical team from China will visit India to explore the products which can be made from XCMG’s new facility in India.
The move has inspired by the current boom in Indian construction equipment industry. The industry has performed well in 2016 after a gap of over four years. Recently, Mr. Sundaresan told EOS in an interview that Indian Construction Equipment Industry is in revival stage registering a growth of over 30% in the first half of 2016-17 compared to the same period last year.
Currently, in association with Schwing Stetter India, XCMG sells equipment like Excavators, Motor Graders, and Wheel Loaders in India.
The world’s 5th largest construction machinery company offers a combination of high quality construction machinery products and services and provides the customers with all-around systematic solutions. The products include Excavators, Loaders, Mining equipment, Road Machinery, Bridge construction equipment, Concrete machinery, Heavy-duty trucks, Forklift Truck, Cranes and different other products.
XCMG products are being exported to 159 countries and regions around the world, which makes it China’s one of the biggest construction machinery exporters.
SCHWING Stetter (India) manufactures concrete batching plants, concrete mixers, concrete pumps, concrete placing booms, tower cranes, self-loading mixers and recycling plants.
SCHWING Stetter India is a 100% subsidiary of $1-Billion SCHWING Group based in Germany, which is a part of XCMG group.
Source: Information has been obtained from XCMG & SCHWING Stetter India

Country’s Longest Sea Bridge, Rs 17,750 cr Mumbai Trans Harbour Link Project at Final Bid Stage

The Mumbai Metropolitan Region Development Authority (MMRDA) has shortlisted 29 companies, including infrastructure giants China Railway Major Bridge Engineering, Larsen & Toubro (L&T), Tata Projects, Italian Thai Development Public Co., HCC for the final stage of bidding for most awaited 22-km long Mumbai Trans Harbour Link (MTHL) Project.
The Mumbai Trans Harbour Link will be India’s longest sea bridge, which is to be constructed at the cost of Rs 17,750 crore and the project will connect Sewri in Mumbai with Nhava in Navi Mumbai.  Out of total 22-km long project, 16.5km section will be constructed over the sea and a 5.5km long portion on land.
The 22km MTHLproject is divided into 3 packages, the first two packages comprise the construction of 16.5km sea bridge component. Therefore MMRDA shortlisted 7 companies each for first two packages and 15 contractors for the third package for the construction 5.5km long portion on land.
The seven contractors  which are shortlisted for Package-1 running from Sewri up to 10.38-km – are following consortium:  AFCONS Infrastructure-FLUOR Australia-Shapoorji Pallonji;  Daweoo Engineering & Construction-Tata Projects;  Gayatri Projects-China Railway Major Bridge Engineering Group; HCC-SK Engineering & Construction; IL&FS Transportation Networks -SP Singla Constructions; ITD Cementation-Simplex Infrastructures; Italian Thai Development Public-Sumitomo Mitsui Construction; and Larsen & Toubro-IHI Infrastructure.
The following  consortium has been shortlisted for Package-2 running from step 10.38-km up to step 18.187 km- are consortium of AFCONS Infrastructure-FLUOR Australia-Shapoorji Pallonji;  Daweoo Engineering & Construction-Tata Projects;  Gayatri Projects-China Railway Major Bridge Engineering Group; HCC -SK Engineering & Construction;  IL&FS Engineering -Ranjit Buildcon; ITD Cementation India-Simplex Infrastructures -Italian Thai Development Public -Sumitomo Mitsui Construction, and Larsen & Toubro-IHI Infrastructure.
Further, the 15 companies shortlisted for Package-3 running from step 18.187 up to Chirle- are: consortium consisting of AFCONS Infrastructure-FLUOR Australia -Shapoorji Pallonji; Gayatri Projects-China Railway Major Bridge Engineering Group; HCC-SK Engineering & Construction; IL&FS Engineering & Construction -IL&FS Transportation Networks; ITD Cementation India -Thakur Infraprojects- JM Mhatre Infra; JMC Infraprojects (India)- China Railway Construction Bridge Engineering Bureau Group; Obrascon Huarte Lain-Constructora of Mexico; Ranjit Buildcon-Royal Infra Engineering; Soma Enterprises -China Harbour Engineering;
The following companies also shortlisted for package-3 are:  J. Kumar Infraprojects; Larsen & Toubro; Navayuga Engineering; NCC; Simplex Infrastructures, and SP Singla Constructions.
The last date for submitting the RFP (Request for Proposal) documents is April 5, 2017, after MMRDA, the nodal agency for MTHL Project will take another 15-20 days to select the winning bids. The names of the final bidders are expected to come either in last week of April or in May.
Japan International Cooperation Agency (JICA) has agreed to fund around 80% of the Rs 17,750 crore for the construction of 22km MTHL Project. The central government has become the guarantor for the loan of JICA, the rest 20% will be managed by the state government.
Once it completed, MTHL Project will provide direct access to Navi Mumbai, New International Airport and will also provide the convenient gateway to Pune Expressway and further to Southern India.
The project would require a huge amount of construction equipment during the construction period.  Equipment such as Excavators, Backhoe loaders, Motor graders, Cranes, different other types of Earth moving and material handling machinery will see the demand in Mumbai. There are different other urban infrastructure projects have approved in the metropolis, which would further generate demand for new as well as used construction equipment in coming years. Even the CE rental services will also pick up the demand as many contractors may prefer to hire different types of assets for the particular project.
Source: Information has been obtained from MMRDA & media reports