Volvo’s articulated haulers are continuing to prove popular in South Africa’s mining industry – so much so that the A40G, the backbone of the range, can now boast the lion’s share of the market for machines in its class. According to David Vaughan, Managing Director of Babcock’s Equipment business, the excellent sales figures for the articulated haulers are all the more remarkable given that the mining industry remains quiet and that this in turn has impacted the demand for mining equipment.
Babcock has represented Volvo Construction Equipment (Volvo CE) in Southern Africa since 2000 and over that period has been highly successful in putting the brand on the map. Over 700 of the A40G and its sister machine, the AG45, have been put into the field, with most of the demand coming from the mining and quarrying industries. The haulers have had a particularly enthusiastic reception from mining contractors and plant hirers operating in the coalfields on the highveld, who are now served by a state-of-the-art Babcock branch that opened in Middelburg in 2016 and which offers full rebuild facilities for Volvo owners.
The L350H, Volvo CE’s biggest wheel loader, working at Steyn Diamante’s Schutsekama alluvial diamond mine.
Volvo CE has recently updated the G-Series range, with the new features including cruise control, downhill speed control and the new OptiShift function, which enables fast and smooth directional change. The new features, combined with the unique Volvo steering, excellent suspension, low noise levels, space and visibility, all contribute to reducing operator fatigue for increased productivity.
While the A40G, which has a 39-tonne payload, is by far the most popular machine in the Volvo articulated hauler line-up, a more recent introduction, the 55-tonne (61-short ton) capacity A60H, has proved to be a winner. It was only launched in South Africa in May 2017 but already 60 units have been sold. Most have been purchased by South African customers but a significant number have also gone to Namibia and the Zambian Copperbelt.
“We always expected the A60H, which is the biggest true articulated hauler in the world, to do well but we’ve nevertheless been surprised at just how well it’s done,” says Vaughan. “In retrospect, it’s clear that the mining industry was waiting for an articulated machine with the ability to replace less versatile rigid trucks in applications where relatively high volumes of material have to be moved. The feedback we’ve had from customers has been extremely positive and they particularly appreciate the fact that the A60H can work in pits in wet or ‘sticky’ underfoot conditions that would challenge any rigid truck.”
He adds that there is significant local and international demand for used Volvo articulated haulers. “We find that many of our local customers are selling their machines themselves rather than trading in and are getting very good prices, often in hard currencies. This in part reflects the durability of the haulers, which have a reputation for absorbing operating hours very well.”
The articulated haulers are the biggest sellers in the range of Volvo CE equipment available from Babcock but there is also a brisk demand for Volvo’s wheel loaders and crawler excavators. The haulers, loaders and excavators are all known for their superb fuel efficiency and this is one of the major selling points of the Volvo CE range. Also worth pointing out is that there is a high degree of commonality between the machines in terms of spares and componentry.
The most popular wheel loaders with mining customers are the L150, the L180, the L220 and the top-of-the-range L350H, a machine with an operating weight of 50 to 55 tonnes (depending on the configuration). In all, Babcock has sold over 700 of its heavier Volvo wheel loaders – from the L150 up – into the local market, with the L150 in particular having built-up a loyal following. A 25-tonne machine, it is widely used in coal-handling, stockyard and furnace applications and one customer recently purchased 20 in a single order.
When it comes to the crawler excavator line-up, the best sellers for mining applications are the EC480D in the 50-tonne class and the EC750D in the 70-tonne class. “These have both been winners for us, particularly the EC750D, which is the perfect match for the Volvo A40G hauler,” notes Vaughan. “The newest model in the range is the EC950E, which is a 90-tonne machine ranking as the largest crawler excavator ever produced by Volvo CE. With over 424 kN of breakout force, it delivers amazing productivity in even the most demanding mining environments. The market, of course, for excavators of this size is limited but sales have nevertheless been very pleasing, with 16 units having been purchased since the launch just over two years ago.”
Many customers have a wide variety of Volvo machines in their fleets, typical examples being alluvial diamond miner Steyn Diamante and emerging mining contractor Lomeza Mining Services. Steyn operates two L350H loaders, three A60H haulers, three A35 haulers and four EC480 excavators (and has also purchased three 100-ton capacity R100Es, Volvo CE’s first Volvo-branded rigid trucks) while Lomeza has 18 Babcock-supplied machines in its fleet, including three A60Hs and one EC950E.
“We find that we have a great deal of repeat business, which is testimony to the quality and performance of the Volvo CE machines,” says Vaughan. “It’s also testimony to the in-depth aftermarket backup that Babcock provides through its extensive network of branches and agents in the Southern African region. We believe the service we provide is second to none and customer surveys confirm this.”
Babcock’s aftermarket business also encompasses machines not sourced from the company. “We’re working with an Indian company in the far north of Mozambique, for example, maintaining a fleet of 14 EC480s which it brought into the country,” says Vaughan. “We’re also expecting to look after a fleet of Volvo low-profile loaders in Botswana that an Australian mining contractor is bringing into the country for a large underground project.”
Contributing to the excellent growth being shown by Babcock’s equipment business are the financial solutions that can be provided to customers through Volvo Financial Services (VFS), which launched locally in November 2017. What sets VFS apart from traditional credit lenders is its innovative approach to the financing of Volvo equipment with its solutions including down payments to reduce monthly payments, accelerated payments, fixed and floating interest rates for enhanced finance control, step payments for customers who want to build equity faster, and straight, balloon or seasonal amortisations, all tailored to a client’s business cycle.
“Financing equipment purchases can be difficult,” says Vaughan. “This is particularly the case for start-ups, including emerging contractors, but even companies that are well established with a long history of profitable trading can be challenged. We fully understand the problems they face. Working hand in hand with VFS, we can invariably come up with affordable solutions that enable customers to invest with confidence in Volvo’s machines.”
Looking to 2020, Vaughan says Babcock is optimistic about prospects. “We have not yet really seen the long-awaited revival of mining but our sales remain buoyant and we have some good opportunities in the pipeline. The Volvo CE range has really taken off in Southern Africa and we believe we will continue to increase our market share. We’re not predicting any sales records but certainly we see steady, sustained growth ahead.”
