4'gssonline.com/images/ren-refurbishment-may-june-2011.pdf · known ofall us companies in the...

4
'$.UII115"",\4'" A loader awaiting a new lease ofHfe at GSS Why buy new when you can buy rebuilt? t's a good question. The long-established philosophy ofbuying new GSE for a ramp operation has accrued plenty of adherents down the decades - but it's not the only way to go about ground handling. Do your market research, add up the doUars and cents and the cost of refurbished or rebuilt ramp vehicles may well surprise you. Zero Time is the buzzword here: in this respect, there are several companies able to offer the fleet buyer an item of GSE that is) to all intents and purposes) as good as new. Stripping the GSE down to the chassis or frame and then rebuilding it effectively gives you a brand new vehicle for a fraction of the cost of that in the shOl-vroom. And, as readers will see later in this feature) this idea is being taken up by airlines and handlers) too. We begin with Victory GSE) one of the best known of all US companies in the refurbishment arena. Amongst its wares are to be found dollies, push backs, air start units, stairs) ground power units) air conditioning units and baggage tractors. And when Victory's staff talk about Zero Time, it really is just that: the client receives an item of GSE that has one throu h totally renewed and rebuilt With a tow tractor, for example, that will entail taking the tug right back to the original frame and using that as a starting point. Once the GSE is properly stripped, then comes the task of repairing the body and frame as required. Typically it will be sandblasted before being prinled and painted. Next wiU come inspection of the axles: here overhaul may be deemed expedient or there could be a requirement for replacement parts, depending on condition and age. New seals are added before the assemblies are reattached to the frame or chassis. Engines, as may be surmised, are an important element in the whole. Once again) much depends on the condition of the unit: can it be rebuilt? Or will a new engine be preferable? Going for new may increase the cost of the project in the final analysis but at least the customer will have the benefit of the latest engine technology and in telms of this) a unit of GSE is no different from an automobile. Victory's Jamey EkerLing says that it may be necessary to work on the transfer case, accordin to model but in most situations a that department) wheel cylinders) master cylinder) brake shoes) hoses and brake Lines are all updated. Safety proviSion) as most readers know) can never be underestimated. The steering box is examined) a new radiator core supplied and a specially Lined fuel tank assembly is added to the equation. A new exhaust) dashboard and gauges foUow: and the package is rounded off with a re-wire. It goes Ivithout saying that tires) Lights and batteries are also replaced. And if the purchaser doesn't want to go to quite this extent) then a reconditioning service is also available, which whilst less comprehensive in scope) nonetheless results in an overhauled vehicle at a more competitive cost. Insofar as a reconditioned project is concerned) the body is repaired as and where required before being repainted. As would be expectad) this is somewhat more of a cosmetic operation compared to the above-mentioned process. The engine will therefore be subjected to a compression test and new parts fitted required. The transmission is checked) as is the wiring and relaysj gauges are also examined (and may be replaced)j the fuel tank and radiator are tested and the steering box is checked for precision. The overhaul extends to the track rod ends and kingpins as well as the gearbox) tires and engine belts. Finally) battery) seats and Lights are typically replaced. Al Gardner continues the story and relates that it is difficult to be exact when it comes to actual ratios of rebuilt GSE. "The precise percentages are hard to give in these financially challenging times. Some customers have a real need) some have budgetary issues of their own (what if? scenarios) for example) and some are trying to plan for the expansion of their operations. All of them have differing views as to what they believe are the true values of the products that they are interested in. "There has been more interest in our services since the recession started but this has not directly translated into sales, for all of the reasons given above. Most of the enquiries have resulted in the decision not to decide at this time. And the latter is most true in those areas that are not aircraft-related: in other words, other industrial applications. In most cases the cost of Zero Time refurbished equipment is between SO-60% of the cost of neWj in comparison) the cost of reconditioned equipment is between 40-S0% of the cost of new. " When it comes to the question of popularity ofGSE and the question of the age of a given item, it's hard to be precise. Because our customer base is more need driven and

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Page 1: 4'gssonline.com/images/REN-Refurbishment-May-June-2011.pdf · known ofall US companies in the refurbishment arena. Amongst its wares are to be found dollies, push backs, air start

'$.UII115"",\4'"

A loader awaiting a new lease ofHfe at GSS

Why buy new when you can buy rebuilt?

t's a good question. The long-established

philosophy ofbuying new GSE for a

ramp operation has accrued plenty of

adherents down the decades - but it's not the

only way to go about ground handling. Do

your market research, add up the doUars and

cents and the cost of refurbished or rebuilt

ramp vehicles may well surprise you.

Zero Time is the buzzword here: in this

respect, there are several companies able to

offer the fleet buyer an item of GSE that is) to

all intents and purposes) as good as new.

Stripping the GSE down to the chassis or

frame and then rebuilding it effectively gives

you a brand new vehicle for a fraction of the

cost of that in the shOl-vroom. And, as readers

will see later in this feature) this idea is being

taken up by airlines and handlers) too.

We begin with Victory GSE) one of the best

known ofall US companies in the

refurbishment arena. Amongst its wares are to

be found dollies, push backs, air start units, stairs)

ground power units) air conditioning units and

baggage tractors. And when Victory's staff talk

about Zero Time, it really is just that: the client

receives an item ofGSE that has one throu h

totally renewed and rebuilt With a tow tractor,

for example, that will entail taking the tug right

back to the original frame and using that as a

starting point.

Once the GSE is properly stripped, then

comes the task of repairing the body and frame

as required. Typically it will be sandblasted

before being prinled and painted. Next wiU

come inspection of the axles: here overhaul

may be deemed expedient or there could be a

requirement for replacement parts, depending

on condition and age. New seals are added

before the assemblies are reattached to the

frame or chassis.

Engines, as may be surmised, are an

important element in the whole. Once again)

much depends on the condition ofthe unit: can

it be rebuilt? Or will a new engine be preferable?

Going for new may increase the cost of the

project in the final analysis but at least the

customer will have the benefit of the latest

engine technology and in telms of this) a unit of

GSE is no different from an automobile.

Victory's Jamey EkerLing says that it may be

necessary to work on the transfer case,

accordin to model but in most situations a

that department) wheel cylinders) master

cylinder) brake shoes) hoses and brake Lines are

all updated. Safety proviSion) as most readers

know) can never be underestimated. The

steering box is examined) a new radiator core

supplied and a specially Lined fuel tank

assembly is added to the equation. A new

exhaust) dashboard and gauges foUow: and the

package is rounded off with a re-wire. It goes

Ivithout saying that tires) Lights and batteries

are also replaced. And if the purchaser doesn't

want to go to quite this extent) then a

reconditioning service is also available, which

whilst less comprehensive in scope)

nonetheless results in an overhauled vehicle at

a more competitive cost.

Insofar as a reconditioned project is

concerned) the body is repaired as and where

required before being repainted. As would be

expectad) this is somewhat more ofa cosmetic

operation compared to the above-mentioned

process. The engine will therefore be subjected

to a compression test and new parts fitted

whe~e required. The transmission is checked)

as is the wiring and relaysj gauges are also

examined (and may be replaced)j the fuel tank

and radiator are tested and the steering box is

checked for precision. The overhaul extends to

the track rod ends and kingpins as well as the

gearbox) tires and engine belts. Finally) battery)

seats and Lights are typically replaced.

Al Gardner continues the story and relates

that it is difficult to be exact when it comes to

actual ratios ofrebuilt GSE.

"The precise percentages are hard to give in

these financially challenging times. Some

customers have a real need) some have

budgetary issues of their own (what if?

scenarios) for example) and some are trying to

plan for the expansion of their operations. All

of them have differing views as to what they

believe are the true values of the products that

they are interested in.

"There has been more interest in our

services since the recession started but this

has not directly translated into sales, for all of

the reasons given above. Most of the

enquiries have resulted in the decision not to

decide at this time. And the latter is most true

in those areas that are not aircraft-related: in

other words, other industrial applications. In

most cases the cost ofZero Time refurbished

equipment is between SO-60% of the cost of

neWj in comparison) the cost of

reconditioned equipment is between 40-S0% of the cost of new.

"When it comes to the question of

popularity ofGSE and the question of the age

of a given item, it's hard to be precise. Because

our customer base is more need driven and

Donna
Highlight
Page 2: 4'gssonline.com/images/REN-Refurbishment-May-June-2011.pdf · known ofall US companies in the refurbishment arena. Amongst its wares are to be found dollies, push backs, air start

Mike Masterson and Scott Whitfill: breathing new life into old GSE

far more varieties ofequipment, it is very

difficult to point to a single answer.

"There is plenty of interest in baggage and

push back tractors, according to the

mechanics, but generally the most popular

models are the Clarks and the Tugs on the

small side, and Stewart & Stevenson on the

larger side. Also popular are the Hobart

GPUs and the same brand names in the

beltloader and other service vehicles. There

are always some unusual brands, like Budda

or PSI or Coleman that crop up. Age thus

becomes a factor, depending on what the

customer is used to uSing. Beltloaders

(whether Tug or Lantis or Nordco) usually

fall into this choice ofequipment.

"The length of time it takes to overhaul a

given piece ofequipment is usually a function

ofwhat is being done to that particular make

and model; Zero Time usually takes 60 days or

so, while reconditioning takes between 30 and

45 days.1his is without special requirements

on the part of the customer. Throughout the

refurbishment process there are all sorts of

update changes beyond the range ofcustomer

choice. For instance LED back-up, reverse, or

braking lights will be used because that is the

accepted standard product now. Or, the

customer may request an item, such as a

warning beacon, or a cab, or doors. We give

comprehensive warranties, too, with out work.

"Lastly, in this era ofglobalization, our marketplace has expanded and we have

customers in the Far East as well as throughout

the northern hemisphere - and we are working

to expand our distribution to the southern

hemisphere as well as the East:'

Next, a report from Ground Support

Specialists (or GSS), a GSE manufacturer

that is able to offer both reconditioned GSE

as well as a Zero Time option. According to

the enterprise's President, Rudy Yates, his

business can supply GSE in Just about any

format you'd ever require: new, used (and

sold "as is"), reconditioned or taken back to

its bare essentials and remanufactured. The

reconditioned market accounts for about

30% of GSS's work whilst the Zero Time

option is currently less popular, contributing

around 2% to the company's turnover. Rudy

declares that the last 18 months or so have

been quieter from the refurbishment

perspective, \.vith business interest in this

segment noticeably down.

"GSS's reconditioned equipment sells for

approximately 50% of the cost of new: Zero

Time varies according to the overall capital

value of the equipment," he explains.

What did he feel were the most popular

types of refurbished GSE currently selling?

And what age ( typically) was the GSE before it went through the workshop)

"The average age for small equipment, like

beltloaders and tugs, is ten years, while loaders

and de-icers are more in the range of 15 to 20

years. Before the economic downturn aircraft

loaders were more popular. The trend now,

though, is more towards beltloaders and tugs:'

And what about the reconditioning proces~

proper: how long would a tug take to go

through the workshop, for example? Rudy declares that the time taken in the

reconditioning operation is usually around

four to five weeks; and where Zero Time is

involved, that figure may take up to two

months.

When it comes to older equipment, did he

often upgrade - and did he also look at

offering alternative power plants in the GSP

"1his is almost always at the customer's

discretion. It also depends on where the unit is

going to be placed in service. In short, yes, we can and do convert the units to whatever the

customer wants. Following the rebuild we

issue a warranty: normally a major component

parts warranty is given for 90 to 180 days,

depending on the request:'

He concludes \.vith a caveat. "All equipment

brokers have a different definition of

refurbishment. It is very important for the

customer to require a specification of the work

performed so as not to pay for a rebuild and

only receive a paint job. Unfortunately, we've

seen this practice over and over again. 1his

magazine's readers should understand how

important this component of the purchase

really is prior to agreeing to buy. They should

understand in detail exactly what it is they are

purchasing:'

So/can you add new GSE to your fleet at 50% of the cost of new)

It may sound like a wild marketing claim but

actually it can be done. Take one very used

tractor or beltloader that is at least ten years old

and send it to the new WFS maintenance and

rebuild facility close to Phoeni.x, Arizona. Just

four weeks later you will be able to add back a

"new" unit to your fleet. Although the facility

has only been operating for under six months,

Scott Whitfill, WFS's Director of Maintenance,

is delighted \ovith the progress made in such a

short time.

"Mike and his team have made a great start

and have already completed seven Zero Time

rebuilds;' he enthuses. Nlike Masterson is the

Maintenance and Facility Manager heading up a dedicated team offive skilled engineers who

transform old, worn-out GSE into new. Within

the coming months the plan is to ship out one

unit a week and lvlike's engineering experience

has proved invaluable, as have his ten years of

service in the US Navy: this is clearly evident

in the way the operation is laid out and run.

At the time ofgoing to press, six bag tractors

and one beltloader had passed through this

specialised workshop that is located within the

confines ofPhoenix Mesa Gateway airport.

Securing the right location was critical to

getting this new operation up and running

quickly and, after looking at facilities in Ohio,

Detroit, Pittsburgh, Oklahoma, Kansas and

Texas, a chance remark made by someone

associated with Mesa Gateway airport made

the company aware ofideal premises ofaround

40,000 square feet, which included a spray

Donna
Highlight
Donna
Highlight
Donna
Highlight
Donna
Highlight
Page 3: 4'gssonline.com/images/REN-Refurbishment-May-June-2011.pdf · known ofall US companies in the refurbishment arena. Amongst its wares are to be found dollies, push backs, air start

shop that had previously been used by the

USAF and Boeing for the maintenance of

Apache helicopters. These facilities needed

very little work to get the operation started. In addition to the refurbishment operation, VvFS

is the sole handler there, working with

Allegiant and the Federal Correction Services.

Because of this it was familiar with the location

and securing the premises has also enabled the

company to carry out its own GSE

maintenance as weU as some third party

maintenance work. "We are prepared for more

third party work and feel confident that once

the word gets out regarding the job we are

doing on these units, other customers .vill

come to us. The great thing about our current

location is that we have plenty ofspace to

expand;' says Scott.

The team started with some Tug bag

tractors. Once in the workshop, everything is

stripped from the chassis, which is then sent

out to a local company for sandblasting.

Whilst the chassis is away, all the replacement

and exchange parts are gathered so that the

rebuild begins the moment the chassis is back

and has been painted on site. Every

opportunity is taken to upgrade the tractor,

including a new fuel-efficient reconditioned

engine and LED lights. Jasper Engines supplies

the reconditioned Ford 300 engines and

transmission units and an Affordable Fuel fuel

injection system is fitted to replace the original

carburettor unit. Savings on fuel are predicted

to be at least 20%, making this first step

upgrade very cost -effective as well as meeting

the existing Tier II requirements. But it is not

just the engine and transmission that gets

changed. The steering column, brake master

cylinder and servo, gear shift, radiator, the

wiring loom and instrumentation, together

with all working parts, are all replaced or

upgraded.

" \A,Te are prepared to replace everything,

right dovm to the original brake lines, but if they are 100% when tested, we will leave these

in place;' Mike told Ramp Equipment News. "All wheel rims are also being standardized to

16 inches, from 16.5 inches:' Finally, a new

locking "E" hitch is fitted, which is now a

standard fleet feature. The result is essentially a

new bag tractor that is even equipped with a

brand new set oforiginal operational and

warning stickers and a plaque that gives the

name ofthe engineer who did the rebuild, as

well as a record of the rebuild date. A wallet of

documents that is shipped back with the unit

also includes pictures ofthe tug when it first

entered the workshop.

"We believe that by including these pictures

and details of the rebuild, the ramp teams will

As good as new - and a lot cheaper, too

unit back to life and maybe will treat it

differently," explainS Scott. Only time will tell

on that one. As previously mentioned,

beltloaders are also going through the

workshop and getting tl1e same very thorough

treatment; and WFS is making sure that all

these loaders have emergency stops at all four

corners as standard, along with seat belts.

Given the growing industry interest in

refurbished GSE and the recent new entrants

to this market (such as American Airlines and

now \AlFS), as long as the price difference

between the refurbishment cost and a new

vehicle remains attractive, this business is set to

grow. Some manu facturers already offer a

sin1ilar back-to-base refurbishment service and

it will be interesting to see how they react in

the longer term to this potential threat to their

secondary business.

'The final word on this venture comes from

Adolfo Morales, Executive Vice President and

ChiefOperating Officer for WFS North

America, who notes that this endeavor helps

the company maximize efficiencies in its

equipment while at the same time improving

its green credentials.

"The refurbishment facility at Mesa reflects

where \AlFS is headed -looking at new

ventures and options that will result in more

efficient and environmentally-friendly

operating performance and opening up

potential new revenue streams," he

summarizes.

From handler to carrier: American Airlines'

Gary Bird, who is Director Ground Support

Equipment, has also been involved in the

refurbishment concept. For AA, the idea took

root back in May 2009, with the objective of

identifying ageing equipment that was

becoming costly to maintain but relatively easy

to rebuild. Gary's team takes in baggage tugs

that have become tired and effectively rebuilds

them to a Zero Time standard. Along the way

the tug can be customized to suit the client's

requirements. A chassis is sandblasted and

powder coated before being painted; the

Ford six-cylinder unit, and a heavy duty

radiator and fan are fitted for cooling purposes.

Transmission, fuel injection, brakes and wheels

complete the mechanical side of the equation.

As for the area ofelectrics, LED lights are

added and ancillary gauges, along with other

accessories, feature on the lists.

"We have a team of 16 mechanics who

produce around ten to 12 tractors weekly,"

Gary explains. "This covers the whole

operation, from teardown to build-up. To date

we have only focused on gas-powered bag

tractors; however, more equipment types are

currently being evaluated to determine the

financial justification:' By this Gary means that

his operation will look at the cost ofexecuting

a rebuild in-house and compare that to a third

party rebuild, taking into account the purchase

price ofa comparable new item.

Considering that the operation is only a

couple ofyears old, it has progressed well.

Since May 2009 a grand total of620 tractors

have been rebuilt under the AA banner; and the

si~1S are that this operation will run and run.

According to Gary, the process always goes

back to basics when it comes to a rebuild : zero

hours are the norm. That's perhaps not too

surprising when one considers the age of the GSE that we're talking about here: on average,

Gary's team sees bag tractors that are 20 or

more years old. Equally surprising, too, is the

quick turnaround ofa unit.

"Leaving aside the shot blasting and painting

stages, the total BOW time is 46 hours per unit.

Along the way we install several enhancements

and modifications, including things such as

LED lighting, electronic fuel injection and

electric cooling fans. We replace the gauges with

warning lights, too. Engines and transmissions

are completely rebuilt by a third party: to date

we've not tried replacing diesel engines with

alternative power plants, though:'

Did he ever come up against GSE that was

simply too poor or fatigued to be rebuilt?

"Some body parts can be beyond repair, such

as engine hoods or running boards. However,

at this point, we have an adequate parts

inventory to avoid having to purchase new

parts. Once a tug is completed, we're looking

at something that is around 50% of the cost of

a comparable new unit. Currently, we have a

steady flow ofGSE coming into the

workshops, although each unit needs to be

independently evaluated to ensure it makes

financial sense before we proceed with the

refurbishment process:'

In summary, then, if you are faced with

replacing GSE, then today gives you arguably

more choice than ever before. ifnothing else,

the Dotential savinI'S cert~inlv w~rr"nt ~

Page 4: 4'gssonline.com/images/REN-Refurbishment-May-June-2011.pdf · known ofall US companies in the refurbishment arena. Amongst its wares are to be found dollies, push backs, air start

shop that had previously been used by the

USAF and Boeing for the maintenance of

Apache helicopters. These facilities needed

very little work to get the operation started. In addition to the refurbishment operation, WFS

is the sole handler there, working wi th

Aliegian t and the Federal COlTection Services.

Because of this it was familiar with the location

and securing the premises has also enabled the

company to carry out its own GSE

maintenance as well as some third party

maintenance work. "We are prepared for more

third party work and feel confiden t that once

the word gets out regarding the job we are

doing on these units, other customers will

come to us. The great thing about our CUlTent

location is that we have plenty ofspace to

expand," says Scott.

The team started with some Tug bag

tractors. Once in the workshop, everything is

stripped from the chassis, wlUch is then sent

out to a local company for sandblasting.

Whilst the chassis is away, all the replacement

and exchange parts are gathered so that the

rebuild begins the moment the chassis is back

and has been painted on site. Every

opportunity is taken to upgrade the tractor,

including a new fuel-efficient reconditioned

engine and LED lights. Jasper Engines supplies

the reconditioned Ford 300 engines and

transmission units and an Affordable Fuel fuel

injection system is fitted to replace the original

carburettor unit. Savings on fuel are predicted

to be at least 20%, making this first step

upgrade very cost-effective as well as meeting

the existing Tier II requirements. But it is not

just the engine and transmission that gets

changed. The steering column, brake master

cylinder and servo, gear shift, radiator, the

wiring loom and instrumentation, together

'-'lith all working pa.rts, are all replaced or

upgraded.

"We are prepared to replace everything,

right down to the original brake lines, but if they are 100% when tested, we will leave these

in place," Mike told Ramp Equipment News. 'All wheel rims are also being standardized to

16 inches, from 16.5 inches:' Finally, a new

locking "E" hitch is fitted, which is now a

standard fleet feature. The result is essentially a

new bag tractor that is even equipped with a

brand new set oforiginal operational and

warning stickers and a plaque that gives the

name of the engineer who did the rebuild, as

well as a record of the rebuild date. A wallet of

documents that is slUpped back with the unit

also includes pictures of the tug when it first

entered the workshop.

"We believe that by including these pictures

and details of the rebuild, the ramp teams will

As good as new - and a lot cheaper, too

unit back to life and maybe will treat it

differently," explains Scott. Only time will tell

on that one. As previously mentioned,

beltloaders are also going through the

workshop and getting the same very thorough

treatmentj and \NFS is making sure that all

these loaders have emergency stops at all four

comers as standard, along with seat belts.

Given the growing industry interest in

refurbished GSE and the recent new entrants

to this market (such as American Airlines and

now \NFS), as long as the price difference

between the refurbishment cost and a new

vehicle remains attractive, this business is set to

grow. Some manufacturers already offer a

similar back-to-base refurbishment service and

it will be interesting to see how they react in

the longer term to this potential threat to their

secondary business.

The final word on this venture comes from

Adolfo Morales, Executive Vice President and

ChiefOperating Officer for WFS North

America, who notes tlut tlUs endeavor helps

the company maximize efficiencies in its

equipment while at the same time improving

its green credentials.

"The refurbishment facility at Mesa reflects

where \NFS is headed -looking at new

ventures and options that will result in more

efficient and environmentally-friendly

operating performance and opening up

potential new revenue streams," he

summarizes.

I

From handler to carrier: American Airlines'

Gary Bird, who is Director Ground Support

Equipment, has also been involved in the

refurbishment concept. For AA, the idea took

root back in May 2009, with the objective of

identifying ageing equipment that was

becoming costly to maintain but relatively easy

to rebuild. Gary's team takes in baggage tugs

that have become tired and effectively rebuilds

them to a Zero Time standard. Along the way

the tug can be customized to suit the client's

requirements. A chassis is sandblasted and

powder coated before being painted; the

Ford six-cylinder unit, and a heavy duty

radiator and fan are fitted for cooling purposes.

Transmission, fuel injection, brakes and wheels

complete the mechanical side of the equation.

As for the area ofelectrics, LED lights are

added and ancillary gauges, along with other

accessories, feature on the lists.

"We have a team of 16 mechanics who

produce around ten to 12 tractors weekly,"

Gary explains. "TIlls covers the whole

operation, from teardown to build-up. To date

we have only focused on gas-powered bag

tractorsj however, more equipment types are

currently being evaluated to determine the

financial justification:' By this Gary means that

his operation wiUlook at tl1e cost ofexecuting

a rebuild in-house and compare that to a third

party rebuild, taking into account the purchase

price ofa comparable new item.

. ,ConSidering that the operation is only a

couple ofyears old, it has progressed well .

Since May 2009 a grand total of620 tractors

have been rebuilt under the AA bannerj and the

~signs are that this operation willlun and run.

According to Gary, the process always goes

back to basics when it comes to a rebuild: zero

hours are the norm. That 's perhaps not too

surprising when one considers the age of the

GSE that we're talking about here: on average,

Gary's team sees bag tractors that are 20 or

more years old. Equally surprising, too, is the

quick turnaround ofa unit.

"Leaving aside the shot blasting and painting

stages, the total BOW time is 46 hours per unit.

Along the way we install several enhancements

and modifications, including things such as

LED lighting, electronic fuel injection and

electric cooling fans. We replace the gauges with

wanling lights, too. Engines and transmissions

are completely rebuilt by a third party: to date

we've not tried replaCing diesel engines with

alternative power plants, though:'

Did he ever come up against GSE that was

simply too poor or fatigued to be rebuilt?

"Some body parts can be beyond repair, such

as engine hoods or running boards. However,

at this point, we have an adequate parts

inventory to avoid having to purchase new

parts. Once a tug is completed, we're looking

at something that is around 50% of the cost of

a comparable new unit. CUlTently, we have a

steady flow ofGSE coming into the

workshops, although each unit needs to be

independently evaluated to ensure it makes

financial sense before we proceed with the

refurbishment process:'

In sununary, then, if you are faced with

replacing GSE, then today gives you arguably

more choice than ever before. Ifnothing else,

the Dotential savines certainlv warr~nt ~