New crane technology for Saudi Arabia

Saudi Arabia

Mohammed Al Naimi, CEO of ACT Group, talks to The Energy Year about the main variables affecting the provision of construction and maintenance equipment in Saudi Arabia and the feasibility of introducing electric cranes into the Saudi market. ACT Group is a consolidated trading company with services in manufacturing, mobile cranes and industrial cleaning.

What are the main variables affecting the provision of construction and maintenance equipment?
Serving A-plus customers comes with significant costs, which include obtaining ISO certification, meeting specific standards and maintaining a qualified workforce. In the coming years, smaller crane operators and rental companies will likely exit the market as they struggle to meet the stringent government standards.
Aramco, for instance, does not accept crane tracks that are older than five years. Cranes from 2017 and before cannot be used in an Aramco contract. Purchasing equipment and cranes is a substantial investment.
Similarly, for construction projects such as NEOM, competitors will eventually face difficulties in continuing due to the high standards required for equipment.
If smaller companies fail to upgrade, they risk being phased out of the market. However, we aim to support their presence because we recognise the kingdom’s potential for long-term mega-projects spanning 20 to 30 years. The market will open up for NEOM and other areas, attracting equipment providers from Egypt, Jordan and other regions, as Saudi Arabia currently faces a shortage of equipment.

How feasible is it to introduce electric cranes into the Saudi market?
In the coming years, we can expect the introduction of fully electric cranes as technology continues to advance. The infrastructure in Saudi Arabia is not yet prepared to support electric cars or equipment. With billions of dollars in government investments, plans are underway to develop an electric vehicle charging infrastructure.
The kingdom is experiencing a surge in the usage and demand for electric vehicles, and now the country is rolling out the infrastructure to keep up with demand. The move towards sustainable transport is changing the way people get behind the wheel across the kingdom.
Most crane manufacturers now focus on electric solutions. The structure of a crane is increasingly being designed for electric capabilities, while the track remains diesel-powered for tasks such as lifting and lowering loads. This transition towards electric cranes is projected to continue in the coming years, and the construction industry looks bright and electric.

How do Aramco open purchase orders work?
Aramco has given us an open purchase order (PO) worth USD 10 million, enabling us to engage in business with them at any given time. This arrangement allows us to promptly undertake jobs without the need for traditional bidding processes.
Aramco grants open POs to entities equipped with excellent machinery and advanced technology, which facilitates immediate access to services, such as crane exchanges. Aramco has been highly satisfied with our work, which is evident in the numerous certificates we have received for conducting full turnarounds and shutdowns, along with commendations from Shell.

What is ACT Group’s core business?
At ACT Group, our primary focus is the crane business, especially for heavy lifts. We provide equipment rentals for shutdowns and turnarounds in the oil and petrochemical industry. Our heavy transportation services utilise specially acquired equipment from Germany and the USA. While other companies opt for standard and basic equipment, we prioritise advanced technology-driven solutions.
Our equipment line-up includes the MK crane and a mobile tower crane. We are the authorised agent for WOLFFKRAN, a renowned German crane manufacturer. We facilitate their partnerships with SABIC.

What is the company’s experience providing direct maintenance services?
With our sister company ACIC [Arabian Consolidated Industrial Cleaning Service Co], we provide full shutdown and full turnaround services for petrochemical facilities. We are also certified to do welding and catalyst fabrication and replacement, and we provide hydro jetting services for cleaning, including crystal cleaning and offline cleaning. Our last project was at the SASREF [Saudi Aramco Jubail Refinery Company] plant in Jubail, where we had 3,600 workers for 45 days.

What are ACT’s priorities with respect to participating in rig-moving activities?
In recognition of the increasing number of onshore rigs in Saudi Arabia, we are establishing ACT Energy as a specialised division within the ACT Group. This division will handle rig moves. Our strategy aligns with Aramco, but we must first fulfil Aramco’s standards, which require five years of experience with Class-A customers, such as Saipem and SLB, to obtain direct approvals.
We have developed a robust strategy and possess state-of-the-art equipment, including tractor heads and specialised cranes for rig moves. It’s important to note that crane rigs adhere to different safety standards compared to photochemical rigs.
As part of our initiative, we are finalising a deal to acquire 50 six-by-four-trucks for transporting rigs with crane support from one location to another. While we already possess the necessary cranes, securing the trucks will further enhance our capabilities.

What is your strategy for increasing Saudisation levels across the company?
When we initially started the company, we did not have any Saudi personnel operating cranes. Today, however, approximately 20-30% of our workforce consists of Saudis. For our contracts with Aramco, an impressive 70% of our engineers are Saudis. They are responsible for handling electric and mechanical tasks related to forklifts.
Within ACT Cranes specifically, we have achieved a Saudisation rate of 25%. Across all ACT divisions, we have nearly 400 Saudi employees, with approximately 120-150 of them working specifically in the crane sector.

What are the key takeaways of ACT’s drive to introduce new technologies in the country?
We have had the opportunity to introduce new technologies to the market, and this was possible because of our clients’ trust and support.
The Saudi market is open and continuously evolving, with a growing demand for advanced technology. Keeping this in mind, we have established a partnership with a company that specialises in developing cutting-edge technologies for various types of equipment. As a result, we have been granted exclusive access to any new crane-related technology developed by this company. They send us the new technologies, allowing us to showcase these advances to our local and international customers. Through a mutual agreement, we share the costs.

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