The US has long been the single largest market for terminal tractors, with Kalmar’s Ottawa brand the leader in sales numbers. Kalmar is facing a growing challenge from other suppliers, however, including Capacity, TICO and Terberg, which now has its eye on the US market.

Kalmar’s flagship machine is the Ottawa T2, the new design it launched in early 2014. T2 was specifically designed for North America, where there is a lot of focus on longevity and corrosion resistance. The largest section of the market is DC’s and logistics facilities, where the duty cycle is lighter than in port applications and the average age of a machine is higher. T2 features a new chassis with a formed open C-channel powder-coated rail design for better corrosion protection and accessibility for service.

The way the US market is structured, dealers are the main sales force for terminal tractors, and Kalmar’s network appears to have plenty of confidence in the T2. At its annual North American dealer meeting in Florida earlier in the year, dealers placed orders for 512 T2 machines, valued at close to €40M. These are machines ordered for stock and rental fleets in  anticipation of customer opportunities, and the 512 units was a significant increase on the 425 ordered at the same event in 2014.

Outside of the US, Kalmar recently made an important delivery of 36 machines with a GCW of 80t to Libra Terminals at the Port of Santos. The new tractors replace older fixed-wheel road tractors that were retired from road transport duties and do not have the same pulling power or acceleration as a dedicated shunting tractor in short, repeated cycles between the CY and the quay.

Productivity is estimated to increase by around 15% (five moves/crane hour) as a function of the Kalmar Ottawa tractors’ faster travel speed and their ability to haul a trailer with two loaded 20ft containers, which the road tractors were unable to do. Libra undertook training of around 200 drivers for this new equipment at its terminal in Rio de Janeiro, where similar
units are already in operation.

TICO challenge

In recent years TICO in particular has been ramping up production and shifting focus from producing for its own rental fleet to third-party sales. Randy Dennis, director of sales and marketing said production has increased from approximately 450 units in 2013 to 600 in 2014.

TICO is particularly strong on the US East Coast, where ports have experienced a surge in throughput over the last six months. On the fleet side of its business TICO has seen significant increases in truck utilisation, while the end-user sales side has received several large orders from ports and rail contractors.

In some notable cases (particularly at Virginia) ports have been scrambling for equipment to handle a surge in containers. Dennis said TICO has been able to meet all its customers’ delivery requirements, in some cases providing trucks from its own fleet to meet an immediate need until a new machine can be delivered.

While demand is strong, there does not seem to be the same level of interest in alternative fuels in the US market that there was five years ago. Dennis said the biggest issue is “the lack of a positive ROI” because of run times between refuelling, minimal savings on fuel itself today, and “almost no resale value” due to second owners having no access to alternative fuels. Alternative fuels is an area, however, that TICO continues to keep its eye on. Dennis said there is still interest in a DOT gasoline engine, but the cost of certification for a tractor application is a challenge that has to be overcome.

On the design side, TICO continues to follow its philosophy of tweaking what it regards as the most durable, reliable and easy to maintain machine in the market. In the past year it has made a major change in the heating and AC system, improved the reliability of the electrical system and made changes to reduce vibration. “We also engineered the Tier 4 final engine and at the same time changed the installation of the DOT to a common system which improved durability and simplified maintenance,” added Dennis.

Enter Sabre

Capacity Trucks, part of Allied Speciality Vehicles, has taken a different approach with Sabre, its next generation terminal tractor, launched earlier this year. Sabre will be Capacity’s flagship model in the 2×4 distribution, port and intermodal markets, with a 2×6 version available for heavier applications, such as steel mills. 

Sabre is a complete redesign, with a heavy emphasis on improving reliability and reducing maintenance. The frame is made from 110,000 PSI C-channel frame rails that are military-grade steel for extreme durability. Capacity claims the PSI rating is 100% more than its competitors.

When Capacity started the Sabre project, said Scott Lord, president of Capacity Trucks, it looked at everything from manufacturing to delivery, to identify how it could improve reliability. A lot of time was spent analysing the root causes of the top 30 warranty claims and trying to engineer these out of the machine.

One of the biggest warranty items was wiring issues. Sabre uses multiplex wiring, and the main module is now a sealed unit that has been moved to a location better protected from dirt and water. Capacity also changed the routing to avoid points where wiring failure was caused by rubbing against the frame, and connectors have been upgraded to mill-spec grade.

Capacity is promoting the Sabre as a significant advance in reliability and backs the frame with a 10-year warranty. To verify the ability of the machine to meet this, Capacity took Sabre to the Bosch proving grounds in Indiana. There it was put through intensive life-cycle testing under actual duty-cycle conditions. Working items like the cab door were subjected to 96,000 testing cycles to prove durability.

User friendly

Sabre has a number of new features designed to improve driver comfort and productivity. The slide ramp has been lowered by one inch to reduce the need for the driver to hand-crank trailers that are set too low, and the fifth wheel boom activation time has been improved by 30% to deliver faster coupling times. The cab features a new seat and an “exclusive synchronised seat and cab suspension tuning”. Capacity’s well known air-ride system is also available as an option.

For customers that operate machines in a lot of winter salt, particularly in the US northeast and Canada, Capacity offers a galvanised frame and boom. Lord added that the second Sabre prototype was built and tested with a galvanised frame and boom to make sure there were no issues. He expects galvanising will be required for 10-15% of production.

Working with its parent company Allied Specialty Vehicles, Capacity has also focused on serviceability with a concept it calls Access 360. Numerous checks can be performed from the ground and maintenance items like hydraulic cylinders and skid ramps have been designed for easy replacement. Fixed connection hoses for air and hydraulics have been replaced with quick connect fittings.

With regard to engines, Capacity continues to offer Cummins engines to suit the emissions standards required by different customers and in different applications, including off and on-road applications. These include the ISB EPA13 and QSBT3 in various horsepower options for use internationally and QSB T4 Final engines where required.

Other engine options at this stage are still under review, including a Caterpillar engine and the Cleantech natural gas engines from Power Solutions International in Chicago. Lord said before launching any new engine platform, Capacity needs to be satisfied the engines are suitable, and testing is planned for later this year. 

Terberg on the move

Netherlands-based Terberg is the biggest supplier of fifth wheel terminal tractors in EMEA and the second biggest worldwide after Kalmar. Most machines are built by Terberg Special Vehicles in Benschop, the biggest part of the privately owned Terberg Group. Around 95% of Benschop’s tractor output is exported, with Europe, apart from the Netherlands, accounting for more than 40%.

Terberg has forged strong relationships with well known third party distributors, many of which also represent other OEMs in the port market. These include NC Nielsen (Nordics), ZAO Konecranes (Russia), Manuport (Italy), Alfaland (Spain), Francetruck (France), Portunus (Turkey) and Motherwell Bridge (Malta).

In other markets, Terberg has its own affiliates – the UK and Ireland, Belgium, the three Germanspeaking countries, UAE and now also the USA. It also has a strong presence in SE Asia/Oceania through Terberg Tractors Malaysia (TTM), its manufacturing joint venture with Sime Darby Sdn Bhd (for a more detailed report on TTM, see WorldCargo News, February 2015, p32).

Terberg DTS (UK) originally emerged as an independent dealer from the ashes of Reliance-Mercury, but was subsequently acquired by Terberg Group. Terberg Tractors Belgium is run by Pieter Sanczuk, who worked on the Terberg account when it was part of Catracom’s portfolio. Inevitably, after Catracom was sold to Kalmar, things changed. 

Dubai-based Terberg Middle East was set up in 2009 and looks after most of Africa as well as the Middle East. To date, it has supplied more than 1,000 Dutchbuilt tractors and also has a healthy spare parts business. This affiliate is now run by Andrew Partridge, formerly with the Terberg DTS (UK), while Rob van Arkel, who set up the Dubai office, has gone to Miami to run the newest subsidiary, Terberg Tractors Americas. His job is to develop the Americas markets, where so far Terberg has had a limited presence.

Currently around 75 Terberg YT models are used in ports in Brazil, while in Canada Robert Transport has a number of YT units in use at distribution centres, including some customised 6×2 units. In Peru, some 4×4 RT machines were recently supplied to a steelworks to replace Terberg machines originally purchased in 1984. In the US, Terberg has done some direct business with Pasha Marine in Southern California, while Martec in New Jersey acquired some new and used RT units for its rental fleet before it was acquired by TAL.

One to watch

Terberg’s strategy in the USA, the biggest terminal tractor market in the world, will be interesting. Trying to second guess what Terberg is planning is difficult, but it probably will not try just to go headto-head on price in the volume markets with Kalmar, Capacity of Texas, TICO and Autocar, even if, for the moment at least, the euro has declined against the dollar.

One opportunity, said Terberg’s export director Frank Oerlemans, is that US EPA rules allow Terberg to supply up to 350 Tier 3 tractors in the first seven years after market entry, and it still has 3-4 years to supply machines with this less expensive engine platform.

However, while 350 is not a small number in itself, in relative terms in the US market it isn’t substantial and Terberg needs to make the most of its main differentiators. This includes a focus on heavy RT units and heavy trailers for demanding industrial applications. For example, it has supplied special 200t scrap bucket trailers for use with RT382 tractors (45t fifth wheel capacity) to a steelworks in Alabama.

It also has a successful LNG product (e.g. 40 YTs to Asyaport in Turkey) and has run up almost 30 orders for its new e-tractor, both of which could appeal to some of the large DC fleet operators in the US looking to augment their green credentials.

Russian business

As previously reported, Terberg is supplying Fenix, the private developer of the Russian Port of Bronka (Lomonosov), near St Petersburg, with 25 Terberg YT222 tractors and 25 Novatech trailers, for delivery by August. The YT222 is the largest of Terberg’s YT series, with a fifth-wheel capacity of up to 36t and a GCW of 90t.

One notable point is that Terberg YT (and TT standard) models are 4×2 machines. Terberg’s Russian distributor, ZAO Konecranes in St Petersburg, stated that although Russian ports traditionally opted for 4×4 drive for all their tractors, it is now generally accepted that 4×4 offers no real technical or operational advantage in winter conditions.

Modern container terminals have flat, paved surfaces and are well maintained, so the less expensive 4×2 tractors are adequate for the job. Similarly NLE in Novorossiysk has ordered 4×2 tractors this year.

The company stresses, however, that Russian operators are still ordering 4×4 drive for ro-ro operations. Fenix’s order for the ro-ro part of MMPK Bronka Phase 1 (five machines) is understood to be pending.

Terberg has traditionally had a strong presence in the Russian market, going back almost 40 years. It had a strong relationship with the Swiss-German company Planmarine, a successful trading firm with very good connections to state central purchasing agencies in the COMECON bloc. Planmarine bought machines from Terberg and sold them to COMECON customers; sometimes Planmarine was paid in hard currency and sometimes in commodities such as coal that were in demand in the West. In the postCOMECON environment, however, Terberg realised that it had to get closer to the customers.

Finally, as reported in last month’s edition of WorldCargo News, Terberg has launched, through its UK affiliate Terberg DTS, the DT183 model with the low entry cab specifically aimed at road trailer shunting and marshalling applications in DCs. The first machine was shown at the Commercial Vehicle 2015 Show at the NEC in Birmingham. 

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This complete item is approximately 2000 words in length, and appeared in the April 2015 issue of WorldCargo News, on page 21. To access this issue download the PDF here.