Tag Archives: Economy

Container Shipping: The Next 50-Years

A Comprehensive Study by McKinsey & Company, New York, The Worldwide Management Consulting Firm:

Link: Container-shipping-The-next-50-years.

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#LegalCorner: The Case of Stolen Containers & Delivery Order Against ‘To Order’ Bill of Lading in Antwerp. MSC-v-Glencore International AG

Worth reading by All Trade & Shipping People:

Highlights of the case: Highlights of Appeal Court Judgment

Full Judgment issued by Appeal Court: MSC-v-Glencore, Full Appeal Judgment

Libya: Libyan Cement Company (LCC) plans to reopen Hawari plants

 

Plans to rebuild and reopen the two cement factories in Benghazi’s Hawari district have been announced by the owners, the Libya Cement Company (LCC).

The plants closed in mid-2014 when fighting in the area between the Libyan National Army and militants started. For almost two years, the militants effectively controlled the area and it was not till April last year that the cement works were finally recaptured.

At a recent general meeting of LCC, held in Amman, Jordan, the chairman of its parent Joint Libyan Cement Company (JLCC), Ahmed Ben Halim, said that full priority was being given to getting the Benghazi plants operational again.

However, he acknowledged that this would not be easy given that the two factories were damaged in fighting in March-April 2016.

An LCC statement says that instigations have shown the damage to be significant and that extensive re-building will be necessary. It will take at least a year before they can return to production, during which time the site will have to be made safe, new machinery and parts brought in, new skilled construction workers found and necessary utilities such as electricity and gas restored.

Fortunately, the statement notes, management took out Political Violence Insurance with Lloyds of London in 2015. The insurers have now accepted claims as legitimate, it says, adding that these are likely to run into tens of millions of euros.

LCC also owns a third cement factory in Derna’s Fataieh area which, remarkably, managed to continue operating despite being in a war zone, first between Mujahideen and the so-called Islamic State and then between the mujahideen and the Libyan National Army. At the LCC general meeting, the CEO of LCC, Robert Soloman, paid credit to the staff of the Fataieh factory for keeping it going.

Meanwhile, Ben Halim has welcomed a decision by the Beida-based interim government to continue paying company staff, despite the fact their Benghazi cement factory being closed.

Earlier this month, the Thinni administration confirmed that it would continue paying a minimum salary of LD 459 a month to employees of a number of foreign-owned or run companies unable to operate because of the military situation.

In addition to LCC, these are the General Company for Textile and Clothing in Benghazi, the General Company for Electronics in Garyounis, Melkam Oil Company and the National Development Company for Construction.

LCC is 90-percent owned by the Joint Libyan Cement Company (JLCC), itself a joint venture between Asamar Libya and the Economic and Social Development Fund (ESDF). Asamer Libya was bought two years ago from the Austrian parent company, Asamer, by Libya Holdings Group, headed by Ben Halim.

LH 15.05.2017

Logistics: The Project of the Century in South America ?

Dozens of German companies including Siemens attended meetings in Bolivia this week to discuss building a coast-to-coast railway through Brazil, Bolivia and Peru that could speed up the export of corn and soybeans to Asia, German and Bolivian officials said on Wednesday.

The massive, $10 billion project would involve building a 3,700-kilometer (2,299-miles) rail line across the continent, linking the Atlantic and Pacific oceans, through mountains and jungles.

“This is the project of the century,” said Germany’s State Secretary of German Transport, Building and Urban Development Rainer Bomba.

Representatives from Brazil, Peru, Paraguay, Uruguay and Bolivia as well as Germany and Switzerland are still studying the feasibility of the train route, which would drastically shorten shipping routes from Brazil’s coast to Asian markets for key commodities.

Siemens, Europe’s top engineering group, participated in the meetings “to get more information about the project,” spokesman Dennis Hofmann said in an email.

“The project is at an early stage and questions have to be clarified,” he wrote.

The discussions, on Tuesday and Wednesday, come after a similar, Chinese-led project build a trans-South America railway ran into roadblocks late last year due to cost and environmental concerns.

Bolivian and German officials did not name other companies that attended the meetings, but Bomba said: “The presence of 40 German companies here demonstrates that Germany is not only in the planning phase, but also in the realization phase.”

Bolivia’s Public Works Minister Milton Claros told Reuters Bolivia and Germany had signed agreements for technical assistance and financing for the project. The ministry said the project would connect the Brazilian port of Santos to the Peruvian port of Ilo and had a preliminary cost estimate of $10 billion.

Brazil is expected to export 28 million tonnes of corn and 61 million tonnes of soybeans in the 2016/17 crop year according to the USDA. It is the world’s largest soybean exporter and second-largest corn exporter.

China and Peru agreed in 2015 to study a 3,000-mile-long railway through the Andes, but Peru balked when China estimated its cost at $60 billion. Peru’s President Pedro Pablo Kuczynski later said the rail should go through Bolivia.

Land-locked Bolivia has long pined for a corridor to the Pacific, blasting Chile for taking its coastline in a war in the late 19th century and maintaining its Navy on Lake Titicaca.

Brazil had also questioned the Chinese project and would likely back the Bolivian route, a member of the Brazilian delegation said.

“We identified problems in the reports made by the Chinese group. We communicated the points of disagreement to Chinese authorities and we are seeing how we can continue the studies,” said Joao Carlos Parkinson, coordinator of economic affairs at Brazil’s Foreign Ministry, who attended the meetings.

Brazil’s Ambassador to Bolivia Raymundo Santos said talks would continue.

“Our delegation confirmed Brazil’s interest in participating,” he said. “The political side has been resolved, but now the technical work has to move forward.”

Source: Reuters