Hertz appoints rental franchise for booming Mongolia
By Murray Pollok22 April 2013
Mongolia Equipment Rental Corp (MERC) has become the Hertz equipment rental franchise holder in Mongolia following an agreement between Hertz and MERC’s owner, US-based Consolidation Services Inc.
MERC will have the exclusive license to provide rental equipment in Mongolia using the Hertz Equipment brand, with the agreement starting on 1 July this year.
Michael Ussery, chairman of Consolidation Services and Hertz Equipment Mongolia, and a former US ambassador to Morocco, said Mongolia’s resource-led economy offered a huge opportunity for equipment rental; “We are delighted to join the Hertz global equipment rental network, giving us access to hundreds of equipment and tool manufacturing partners.
“This will enable us to provide a full array of equipment rental services to meet a variety of mining, construction, infrastructure development and other equipment rental needs."
Lois Boyd, group president of HERC, said Mongolia was “one of the most exciting new markets for the world's mining industry. With its double digit GDP growth (estimated at 15.74% by the IMF for 2013) and influx of foreign investments, the country is also experiencing a boom in construction and infrastructure development."
Consolidation Services was created in January 2007 and since then has concentrated on natural resources development in the US, owning oil wells and mineral rights in eastern Kentucky and Tennessee.
MERC’s CEO is Gary Kucher, who has a background in investment banking. From 2008 until 2012 he served as managing director of MB&A Capital in California, and he is a co-founder and still serves as senior managing director of the Mongolia Fund, a Mongolia focused private equity fund. He is also CEO of Consolidation Services Inc.
Mongolia has several players active in equipment rental. Wagner Asia Equipment, Caterpillar’s dealer in the country, operates several Cat Rental Stores and Mongolian-owned Newcom Mining Services has established an equipment rental business called Gobi Desert Rentals.