Caterpillar drives Belt and Road growth
With its innovative technologies, extensive dealership network and solid financial services, Caterpillar is campaigning for the Belt and Road Initiative and seeking to explore more business opportunities.
As the world’s leading manufacturer of construction and mining equipment, Caterpillar said it believes the initiative provides “unprecedented opportunities”, especially in infrastructure construction and energy projects.
The initiative, proposed by President Xi Jinping in 2013 to increase international cooperation via construction of the Silk Road Economic Belt and the 21st Century Maritime Silk Road, involves more than 60 percent of the global population and puts emphasis on connectivity between the countries and regions involved.
Data from the China International Contractors Association show that Chinese companies fulfilled engineering and construction contracts worth $159.4 billion worldwide in 2016, an increase of 3.5 percent from a year earlier.
The Belt and Road countries and regions contributed nearly $76 billion, close to half of the total and up 9.7 percent yearon-year.
With a host of infrastructure projects under way for facilitating trade, investment and people-to-people exchanges, Caterpillar offers its edge in innovation, services, products and technological solutions as an active participant in the initiative.
The company announced its “Age of Smart Iron” strategy last year to boost construction productivity. The digital technology strategy is based on insights and experiences gained through the company’s operations worldwide.
To date, some 500,000 of Caterpillar’s more than 3 million machines and engines in service around the world have become “smart”, connected assets, the largest group of its kind in the industry.
In close cooperation with builders and developers in Belt and Road countries and regions, Caterpillar provides smart machines and customized technological solutions, which translate into lower costs, higher productivity and safer and sustainable construction models.
Among its beneficiaries is Haicheng Construction Co, which was once contracted for a roadbed project for a section of a national highway running through a mountainous area in Sanming, Fujian province.
Using 11 Cat excavators, equipped with the company’s Cat Connect Grade technologies to combine digital design data, in-cab guidance and automatic machine control to help operators to hit target grade faster and with more consistent results, Haicheng reduced total construction time by 70 to 80 percent and saved more than 1,000 yuan ($145) daily in fuel consumption.
In North America, Caterpillar’s intelligent information processing systems enable its machines to increase productivity by 40 percent and improve fuel efficiency by 16 percent.
Global reach is another of Caterpillar’s trump cards. Its dealership network covers more than 180 countries, with some 3,500 sales and service outlets around the world.
The company boasts a steady relationship with its dealers, with the average cooperation period surpassing 50 years.
The global dealership and service network prompted China Road and Bridge Corp to decide to use Caterpillar machines in its contracted expressway upgrade project in Belarus in 2014.
Caterpillar China sent senior engineers to the Eastern European country to offer local users two weeks of training in operation and maintenance. The Caterpillar experts also collaborated with local dealers to improve their component inventory plans and ensure effective responsiveness to maintenance requirements.
“While products can be replicated, the solid relationships and trust that has been built up with our dealers cannot be easily reproduced,” said Chen Qihua, vice-president of Caterpillar and chairman of Caterpillar China.
Caterpillar Financial Services Corp, one arm of Caterpillar, offers a wide range of financing alternatives to customers, including those from Belt and Road markets. With offices and subsidiaries spanning the globe, the financial company has expanded its services to 98 countries. Its funding prowess works to facilitate the construction projects.
The Belt and Road Initiative provides fertile ground for Caterpillar’s further global expansion. With its expertise in technology, services and financing, Caterpillar is set to be a key participant and a driving force behind the highquality growth of the countries and regions involved in the initiative, the company said.