Hertz and APR Energy partner in Saudi Arabia
By Murray Pollok15 May 2013
Hertz Equipment Rental Corp’s joint venture in Saudi Arabia has signed a partnership with power rental company APR Energy to provide “large scale power solutions” in Saudi Arabia.
APR Energy will offer Hertz Dayim Equipment Rental power expertise and a fleet of diesel and natural gas reciprocating engines and dual-fuel turbines. The move will give Hertz immediate access to a large power rental market. Hertz said Saudi planned to increase generating capacity from 55 GW to 120 GW by 2020 in order to meet rising demand.
For APR, the partnership expands its operations in the Middle East. It opening a regional hub in Dubai last year and has won projects in Oman and Yemen, and earlier this year signed a 250 MW contract for mobile gas turbines in Libya.
Chairman of Hertz Dayim Equipment Rental Ltd, HRH Prince Khalid bin Bandar bin Sultan, said the demand for demand for power was outstripping supply and that there was a big market for power rental; “APR Energy is a global leader in fast-track power generations solutions, and their line of business has significant synergies with our existing equipment rental business in Saudi.
“It is a strategic step for our business towards providing a one stop solution to the utility, construction and industrial sector in Saudi for all their equipment and power needs."
Lois Boyd, group president, HERC said: "With APR Energy's leading-edge power solutions, our customers will have access to cost-efficient, reliable electricity, on a fast-track basis, along with dedicated project management support."
John Campion, APR’s CEO, said; “Saudi Arabia is a high priority market for APR Energy, and is a key part of our growth strategy for the Middle East. Hertz Dayim Equipment Rental, together with its established operations and strong connections in the Saudi Arabia, gives us a strong partner with whom we can very quickly access this important market."
Hertz said Saudi Arabia has the fifth largest natural gas reserves in the world, but has not fully utilised its natural gas potential, providing opportunities for gas reciprocating engine and dual-fuel turbine generators.
Hertz Dayim Equipment Rental is a joint venture between Hertz Equipment Rental Corporation and Saudi Arabia based Dayim Systems. Hertz Dayim Equipment Rental has been operating in the Kingdom of Saudi Arabia since January 2011 and last year accounted for approximately 1% of HERC’s revenues, equivalent to around US$14 million.
Hertz Dayim operates one location in Dammam, and has plans to expand into Jeddah and Riyadh in 2013.