Rental Solutions & Services, a global provider of rental power, temporary cooling and mobile water desalination, predicts an increased in rental power demand. Robert Bagatsing, Group Marketing Manager, and Peter den Boogert, General Manager, Power Projects, talk about the future of the rental power industry.
Market Trends from 2011 to 2015
Robert Bagatsing, Group Marketing Manager of RSS, talks about market trends in the rental power industry.
Bagatsing says “There will be an increase in demand for power projects around the world, particularly in developing countries. An estimate of 30% increase in rental power demand is forecasted up to 2015.”
As the global economy is still devastated by the financial crisis, private power companies will still struggle to fund their permanent power plants.
“Therefore, there is still a high demand for rental power companies to fill-in the gaps,” according to Bagatsing.
In the Middle East, the demand is very high in several countries like Yemen, Iraq, Afghanistan, Kuwait, Qatar, UAE (Abu Dhabi, Dubai and Northern Emirates), Saudi Arabia, Oman according to Bagatsing. Africa rental power opportunities are in Nigeria, Ivory Coast, South
Africa, Kenya, Angola, Algeria, Egypt, Sudan, Congo Rep, Libya. Latin America will also consume more power due to high lack of power infrastructure.
Countries like Brazil, Argentina, Chile, Mexico and Venezuela are a great opportunity. There are also opportunities in the Asian region. India, Pakistan, Bangladesh, China, Philippines, Indonesia, Vietnam, Thailand will still demand for more power to continue its industrial growth.
Peter den Boogert, RSS GM Power Projects, compares rental power demand in Europe, the Middle East, Asia and Africa.
Boogert says “Europe is a declining rental power market because it is a mature market. But there are still opportunities in Europe, although not as huge as the new emerging markets.
There is a high demand in new emerging markets such as Middle East, Asia and Africa due to high economic activities but less investment in power infrastructure by the government. The economic activities of these new developing markets are increasing at a fast pace while their permanent power projects are delayed. There’s a huge demand for power but less supply from the utility providers."
Hire & Rental Market in the Middle East, UAE
According to Bagatsing, “The whole rental power industry worldwide will grow 30% due to utilities, construction, events, oil & gas, military and emergencies (natural disasters and manmade conflicts). Middle East, Africa, South America and South Asia will have the biggest share among the geographic market.”
RSS expects that Middle East will grow at 20% in 2011. Driving the growth would be utilities, oil & gas, construction, events and military projects. Iraq, Afghanistan, Saudi Arabia, UAE and Qatar will be the driving force in the rental power projects in the Middle East. These markets will have the most opportunities for rental power companies.
“RSS had a successful 2009 and we are forecasting a successful 2010 as well. In 2009, we expanded our operations to Jeddah, Riyadh, Dammam and opened our new offices in Al Khobar and Abu Dhabi,” Bagatsing added.
“In 2010, RSS opened its new office in Cyprus which will serve as a hub for the whole Mediterranean area. We also opened our Islamabad office to serve the market in Pakistan, and we have opened our Muscat office to serve the Oman and Yemen area. Our Qatar operation is significantly increasing while Dubai, Bahrain and Kuwait remain on a positive level. This year, RSS appointed (Peter den Boogert) as the general manager for global power projects who will look after international power project opportunities and strengthen that division of RSS.
RSS is still continually buying generators for its expansion plans and continually hiring the best people in the industry. RSS expansion plans have been supported by Lloyds Banking Group which was impressed by our financial results. As a whole, RSS had a tremendous growth last year and this year as well. I think 2011 is going to be an exciting year for rental power companies like RSS,” Bagatsing said.
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