Posts Tagged ‘Shipping container

01
Sep
11

Shipping Industry Rebound

There’s a lot of good news if you’re looking to make containers a part of your investment portfolio. Demand is Asia, most notably India, China, Singapore, are all rising. Development of these countries and those around them, is at record levels. In two separate reports we found this week, consumption in Asia is the main driving force behind the push from poverty to the acquisition of wealth and material goods that just a few years ago was a far stretch for many of the citizens of Asia. It’s amazing how fast things change in the world we live in today. Countries are pivoting quickly with the help of advanced technology, communications, and increased levels of education.

Containers

Industry in China is Growing

China Merchants Holdings, a diversified conglomerate with big investments in shipping and ports reported first half results earlier this week that were double the same period last year, thanks to a revaluation gain on its investment in Shanghai International Port Group and the appreciation of its office building in Sheung Wan, reported the South China morning Post.

The company also reiterated what we talked about last month about the moving of industry inland in search of cheaper labor. On the mainland, ports at Shenzhen West reported a 0.6 per cent fall in first-half container throughput due to a slowdown in exports in the Pearl River Delta, compared with 12.9 per cent growth on average in mainland ports.

“The slowdown in growth in Shenzhen is a long-term problem as the trend for factories to move out is irreversible, but Shenzhen still has a geographical advantage,” said Vice Chairman Li Jianhong.

Due to the influx of business moving inland, handling fees at Shenzhen port were frozen in the first half, compared with a five to eight per cent rise in handling fees in the Yangtze River Delta and an up-to-15 per cent rise in the Bohai Rim (also known as the Bohai Economic Rim or BER, which is the economic hinterland around Beijing and Tianjin).

This migration of business is rapidly developing the country and bringing new jobs to an unprecedented number of people in rural areas, who just a few years ago were moving to the coastal areas in search of work.

Growth is Driving India to Prosperity

In India the shipping industry is rosy, too.

The Indian shipping industry recorded an increase of over 20 per cent in business in the last financial year and in the first quarter of this year, which is expected to continue, said Shreyas Shipping Chief Financial Officer Vinay Kshirsagar.

Almost 90 percent of India’s trade by volume (70 per cent in terms of value)  is conducted by sea. With the largest merchant shipping fleet in the developing world, India’s maritime sector is set to grow to a size of $80 billion by 2020. The expected volume handled in 2020 would be approximately 1.7 billion tonnes.

While demand drivers like trade growth and geographical balance of trade (which determines the length of haul required) are very positive, the supply drivers like new ship building orders, scrapping of existing tonnage, etc, also indicate a good future for the Indian shipping and logistics sector. This is further given a boost by the privatization of ports and the strong thrust on infrastructure, said Nicky Mason, managing director, Informa India.

India is the world’s second most populous country and their consumption is rising along with their incomes. India is investing big money in its ports to calm inflation and keep the demand that is driving it up at bay. With big money being spent on ports and infrastructure, India will continue to be one of the biggest players in the region.

Growth in Asia is good for Container Owners

Owning containers is easy. Managing them is a different story. That’s what Pacific Tycoon does best. We are located in Hong Kong, in the heart of Asia, with the skill, experience, and knowledge to put your containers to work and start earning you a good income. It all boils down to the most simple of economic laws: supply and demand.

If there is sizeable demand for a product or service you can charge more. Demand in Asia is sky-rocketing and our containers owners are getting paid very well, to let us manage their investment. Contact us and let us show you how you can diversify your investments by owning containers and lease them to the very companies that supply the region with the necessary goods to do business.

Image: TopDealFinder

Source: HellenicShipping, CargoNewsAsia

31
Aug
11

Singapore Keeps Building

Singapore is home to the second busiest port in the world. Where there are goods coming in and out of a port, there’s sure to be a lot of other action going on. Last week to keep up with all the activity, Jurong Port, which is the largest terminal in Singapore announced it had awarded a big contract to help keep cement coming into the country. Cement’s for building. Building means expansion.

Singapore, Marina Bay Sands

Big Building Plans

According to recent figures released by the Building and Construction Authority of Singapore (BCA), building and construction contracts in 2Q11 grew by 10.6% year-on-year. Public contracts saw a near 2.5 times leap over the same period last year, showing a renewed political will to drive up infrastructure construction.

Jurong Port has awarded a $24.86 million contract to a joint venture led by McConnell Dowell to design, supply and install a new cement handling system.More than 90 per cent of the cement requirement of Singapore’s construction industry is imported through Jurong Port, so upgrading to increase efficiency only makes sense.

Singapore’s Importance

As far back as the 13th century, Singapore has been an important trade destination for Asia. What started out as a simple location to trade ceramics and spices to the surrounding area has blossomed into the worlds largest port.

Since Singapore has very little land to call its own and zero natural resources, their economic model is based on importing raw materials and the refining them (oil and wafer fabrication) or manufacturing products with them. The electronics and biomedical manufaturing sectors account for over 50% of Singapore’s manufacturing industry.

That economic model, which some have deemed the, Singapore model, serves them just fine. Singapore’s open trade economy and important position as a port serving shipping lines from Asia to the America’s has helped the economy grow at average rate of  over 8% since 1965.

Since the Singapore economy is so heavily dependent on exports and foreign trade, economic downturns in other countries severely effect the Singapore’s growth.  For example, after the dot-com crash and the subsequent recession that followed, GDP growth was -2% for the year of 2001 and just barely positive the next two. In 2004 , as things got better, the country swung around to a 8.5% increase n GDP. As things began picking up steam even more last year the country grew by over 17%.

Tourism and Service Industries

Since Singapore has billed itself as an Asian technology and financial power house, they also attract a lot of foreign money due to low taxes and a favorable business environment. The opening of 2 casinos in 2010 has already made Singapore the world’s second largest gambling destination behind Las Vegas.

Aaron Fischer of CLSA, expects the combined gaming revenues of both Singapore resorts to generate $5.1 billion in 2011, up from his previous estimate of $3.9 billion. Goldman Sachs also expects the sector could bring in $5 billion in 2011.

Pacific Tycoon is a leading container management company in Asia. Contact us and let us show you how you can make money from owning shipping containers.

Image: Archithings

Source: HellenicShipping, StockMarketReviews, StraitsTimes, BusinessInsider, USStateDept

30
Aug
11

All Eyes (including APM) on Asia

After the global crisis in 2008, many companies tightened the wallets and held back on investing in anything or anywhere. Despite the pull back, that resulted in a year where the Dow Jones Industrial Average lost 37%, shipping lines were still running and people still required the goods and services that they consume to go about their daily lives. In that year Pacific Tycoon made 23% for our container clients. Container companies are profiting handsomely from the boom in Asia.

Made in China

Good Results

The company announced last week that their profits for the first 6 months increased 6% over the same period last year. With forward thinking and confidence in emerging markets, APM has increased its holding’s in Asia and that has paid-off for them handsomely.

Specifically, in Asia, in the first half of the year new operations commenced at the recently completed 1.1 million TEU annual capacity deep-water Cai Mep International Terminal in Vietnam. APM also began operations in Liberia and the Republic of Georgia.

APM Terminals CEO Kim Fejfer, said “We achieved very good results for the first half fiscal year and our key business metrics continue to trend positively. I am delighted to see our client portfolio expanding, our new business activities performing well, opening new markets in line with our growth strategy. Our investment in new terminals continues to drive APM Terminals strong market leading position.”

More Investment Coming

“We are actively looking for investment opportunities in emerging Asian markets such as China, Vietnam, India and Indonesia,” said chief operating officer Martin Christiansen.

Expanding intra-Asia trade volume has been largely fuelled by China’s increasing appetite for imports and closer ties with the Association of Southeast Asian Nations (ASEAN), he said.

The Netherlands-based company owns stakes in 10 container terminals in China, which have not received further investment since 2009 because of the 2008 global financial recession.

The company sold its shares in the ports of Kaohsiung, Taiwan, in 2009 and Yantian, Guangdong province, in 2010 on the Shenzhen Stock Exchange to China Ocean Shipping (Group) Co (Cosco). APM Terminals plans to sell half of its 50 percent stake in Xiamen port to Xiamen International Port.

While stressing the Chinese market remains a priority, Christiansen admitted that there are some potential investment challenges in China, such as the rising costs of labour and property. But the valuation of ports is yet to offset rising costs, with nearly no increase in tariffs in recent years.

Most importantly, “the growth rate of China’s container volume in the future is expected to be lower than the past, particularly China’s export volume to mature markets such as the United States and the Europe”, Christiansen said.

The dwindling growth rate is partly attributable to rising costs and yuan appreciation, which are posing a threat to China’s reputation as the global manufacturing base. The country’s coastal cities, which support a variety of labour-intensive manufacturing sectors, have been particularly hard hit.

Some investors have shifted investments into neighbouring countries where the cost of labour is lower. In 2010, Vietnam replaced China as the largest production base for Nike Inc, prompting widespread concerns that China might lose its attractiveness as a global manufacturer.

Growth in Other Countries

The investment in the Cai Mep International Terminal in Vietnam, looks to be a good one. Last year GDP for the entire country of Vietnam was 6.7%, whereas in the Mekong River Delta that number was almost double at 12.2%. The region exported 6.8 million tonnes of rice in 2010, the highest volume so far. Ho Chi Minh is the business center of the country and growth from both foreign and local investment is increasing.

China is Difficult to Replace

“China’s vast manufacturing industry is difficult to replace. We do not see a big risk of a massive sourcing shift out of China in the near future,” Christiansen said. “China will remain one of the most important markets for us.”

For APM and Asia and the expanding countries in Africa, as well, China is an important piece of the puzzle. China is aware that wages and standards of living inside the country are climbing higher and higher. All of this puts pressure on the country to remain at a competitive advantage in terms of pricing for companies needing manufacturing solutions.

This is another reason the country is eagerly awaiting 2014, when the new set of Panama Canal locks are set to open. The larger Post-Panamax ships of today which carry twice (almost 3 times) the cargo and cut annual operating expenses in half are a much needed boost to China’s shipping industry.

Image: VNBrand

Source: CargoNewsAsia, VietnamBusiness, CargoNewsAsia2

29
Aug
11

DP World Shows How to Manage

Dubai based DP World is in a class to itself. The company operates 60 shipping terminals across 6 continents, of which container handling generates 80% of their revenue.  The first half of the year was a good one, profits up a whopping 36% over the same period a year ago. Things are looking bright for the mammoth company, despite further slowdowns in America and Europe. Developing nations continue to drive growth in shipping and demand world-wide.

Burj DubaiStanding Tall

Chief executive, Mohammed Sharaf, said: “DP World has had an excellent start to the year with gross volume growth 11 percent ahead of the prior period, improved revenue generation, a continued focus on cost management and improved terminal efficiencies resulting in EBITDA of $645 million and improved EBITDA margin ahead of expectations at 42.9 percent.’’

“Profit for the six month period before separately disclosed items was $281 million, close to profit levels last seen at our peak in 2008 as our container terminals have become more profitable following initiatives implemented as a result of the 2009 downturn.

“Our global portfolio, focused on both origin and destination cargo and in the emerging markets, is now more robust and better positioned to deliver profitable growth.’’

“We have continued to expand our global capacity, either through continued investment in new or existing terminals or through incremental investment focused on delivering greater efficiencies for our customers.

Smart Investing

According to The Day After Tomorrow: A Handbook on the Future of Economic Policy in the Developing World, almost half of global growth is coming from developing countries. As a group, it is projected that their economic size will surpass that of their developed peers in 2015.

“Developing countries have come to the global economy’s rescue,” said Otaviano Canuto, World Bank Vice President for Poverty Reduction and Economic Management (PREM),and co-editor of the book. “They are the new locomotives of growth which will move global growth forward while high-income countries remain stagnant.”

Further Projections

While the first half of the year was exceptionally strong, there are still some worries about just how much the looming economic slowdown in Europe and America will affect global demand, DP World CEO Sharaf doesn’t seem to be worried. “Historically the second half of the year has been stronger than the first half,’’ Sharaf said. “However, as we said in our update in July, there is uncertainty around the outlook for the global economy making it more challenging to forecast how global trade will develop in the second half of the year.

“The impact of this uncertainty has not, as yet, been reflected in the markets in which we operate and, with our focus on the more resilient emerging markets, we still expect to deliver full year results in line with expectations.”

The Future is Here

There’s more than one thing that a lot of the countries we have covered on the blog share. Aside from explosive growth, they also have very a low median age of population. There’s an interesting chart on Wikipedia that shows the median age of the countries of the world. Many of these Asian and African countries are climbing out of poverty on the backs of young, fresh, educated minds that are eager and willing to get a bigger piece of the pie for their families, both existing and planned.

The infrastructure that is being put in place now, for many of these nations will feed the growth of the populations. Economies will prosper. Trade will increase and demand will pull company profits along with it. Now is the time to look into the container industry. Pacific Tycoon is here to show you just how easy it can be. Let us guide you through the process.

Image: DubaiArchitecture

Source: DP World, BusinessJournal

25
Aug
11

Rotterdam Port Sees Huge Container Increase

Some are worried about the effects on global trade that the current European debt crisis and the American economy, which is teetering on the brink of a renewed recession, will have.  There are many reasons to be worried. The banks and governments in Europe have themselves in bind. Investors are fleeing the stock markets and fleeing toward safer investments like gold and other precious metals.

World Port Center, Wilhelminapier, RotterdamLooking Down on What’s Going on

Despite the worries that accompany the mess in the western world right now, there are many places in Asia that are booming. The largest port in Europe can confirm that.

Last week, the Port of Rotterdam posted what it said was a “good first half”. The first half of this year has brought with it, container traffic increases of 12.3% compared to the 1st half of 2010, to 61.8 Mt, and 9.7% in unit terms to 5.954M TEU.

Where’s the Growth Coming From?

We’ll give you one guess. “Container throughput remains above expectations,” said Rotterdam port authority, “thanks to new services especially to and from the Far East and South America, significant increases in transhipment, especially in Russia, and a steady recovery of intra-European traffic, with the United Kingdom and Ireland being the most important markets.”

Hans Smits CEO of the Port of Rotterdam had this to add:  ‘On the whole, throughput has maintained the high level of 2010. This also applies to investments from both the Port of Rotterdam Authority and companies. The growth in total throughput was hindered mainly by the loss in handling of oil products, which was very strong in the first quarter of 2010. Maintenance work to refineries was also relatively high. The 7 million tonnes decrease in the oil sector was almost entirely compensated by the more than double-digit growth of containers.”

Asian Benefits

From the growth in Rotterdam to the increase in milk consumption that is driving trade with New Zealand, Asia is taking over as the world’s leading consumer. Hiccups in the western world economies used to severely hinder trade. There’s no doubt that American consumption, which accounts for 70% of their GDP, has a huge influence on the world economies, yet the dependence of the other world economies on that consumption is getting less and less.

Developing nations in Asia, Africa, and the Middle East are quickly adding infrastructure and jobs. These investments are fueling consumer demand for goods and services that they envy in their western counterparts. Last year for example, Apple sold 47.5 million iPhones. 80% of those sales came from overseas. The average salary monthly salary in China is $273.

Despite the huge price tag of the iPhone and other consumer goods that consumers crave, they’re wiling to part with the cash to show off the fact that they own one. Materialism is a funny beast and it can grab even the most cash strapped individual and force them to do things they normally wouldn’t just to own that item that their friends have.

With development of many of the Asian countries just beginning, there doesn’t seem to be a slowdown in this area of the world any time soon. Let Pacific Tycoon show you how you can benefit from this growth.

Image: Dick Korevaar, Panoramio

Source: WorldCargoNews

24
Aug
11

New Zealand Growth Fueled by Asian Demand

The growth in Asia is a hot topic. It has been for years now. It’s evident everywhere, especially when you travel. More and more Asians are becoming affluent and buying designer clothes, expensive cars, and traveling to other countries. The amount of money being poured into these economies is staggering, from the investments in ports and infrastructure to the foreign businesses that are moving in and taking advantage of lower cost labor or chain stores and international brands that are coming in to grab a piece of the consumer action.

Tauranga, NZ

I read this past weekend a report of the New Zealand port of Tauranga. The first report that caught my eye was “Tauranga port sees record profit from cargo growth “. The port announced profits of 17% on the year ending June 30th. 

What’s driving the growth?

Trade volumes were up 12 per cent to 15.4 million tonnes, while container traffic increased 15 per cent to 590,506 20ft equivalent units (TEU).

Exports of logs were up 14.5 per cent to 4.4 million tonnes, kiwifruit was up 3.8 per cent to 757,000 tonnes and dairy was up 4.6 per cent to 588,000 tonnes.

“This trade included 78 per cent more international volume and more than three times the export volume of Port of Tauranga’s nearest competitor.” said John Parker, Chairman of the port. He also added”Despite the patchy economic recovery, we have enjoyed strong growth in trade volumes.”

Chief executive Mark Cairns said he was proud of the result. “I think it was a cracker year across all parts of the business and positive about the coming year, in particular around the container terminal side of the business.”

What does this have to do with Asia?

At the bottom of each of the articles I read was a small piece about the influence that Asian economies are having on the export business of New Zealand and neighboring exporters. And then there is this Bloomberg article, which reports that Chinese imports of New Zealand milk has jumped 500% since 2008.

Asian consumers are demanding more protein as incomes and nutrition levels rise, said Con Williams, rural economist at ANZ National Bank Ltd.

Other countries that recorded the largest growth in imports include India and Sudan. India’s imports of New Zealand dairy products more than doubled to NZ$162 million last year, according to government data. The value of Sudan imports jumped to NZ$114 million from NZ$39 million in 2008.

20 years ago the average westerner walking down the street towered over his Asian counter-parts. That has changed drastically in the last 20 years. One of the first beneficiaries of that change was Taiwan. Factories in Taiwan sprung up quickly 20 years ago and many have left the island in search of cheaper labor in China, but the effects are long-lasting.

20 years ago, what some people refer to as a healthy child with a little “baby fat” was an anomaly there. Those days are gone. Friends of mine are teachers in Taiwan and in a visit there last year, I witnessed the explosion first hand. A visit to a high school there showed me this unexpected surprise. Many of the kids there towered over me.

Higher standards of living

In his report in April of this year on the International Monetary Funds Economic Forum, economist Anoop Singh, Director of the IMF’s Asia and Pacific Department said, “Economic growth averaged 8.3 percent across the region in 2010, on the back of both strong exports and domestic demand. Asian exports, especially of high-tech products, have benefitted from higher global investment, and domestic consumption and investment from rising employment, abundant credit, and supportive macroeconomic policies.”

In regards to future growth, Mr. Singh had this to add, “Growth is likely to remain robust, averaging 7 percent in both 2011 and 2012 (compared to 4.5 percent global growth). China and India will remain in the lead, and their growth will increasingly benefit other economies in the region.”

At Pacific Tycoon, we’re located in the heart of Asia, serving the our clients and giving them a managed solution to their investable income. By owning containers and leasing them out to the companies that supply this region with the goods they are demanding. With the turbulence in the financial markets, many investors are looking for safer, more predictable ways to make money. Contact Pacific Tycoon and we’ll show you how you can begin earning 12% on your money.

Image: GoogleMaps

Source: NZHerald, CargoNewsAsia, SunLive, Bloomberg

23
Aug
11

Jordan Boasts a Robust Port

It seems like this is Middle East week on the P.T. Blog. Yesterday we reported on the boom in business going on in Oman. Today we shift our focus north-west, up the Red Sea to a corner of the Middle East, also called Levant ( which comprises Syria, Lebanon, Jordan, Israel, and the Palestinian territories). That’s a lot of ground to cover, but one port’s location puts it in prime real estate to just that and more.

Jordan Flag

Jordan’s Solid Port

Aqaba Port is becoming the docking place of choice for all shipping lines wishing to move cargo not just through Jordan but through the whole of the Levant and Iraq. With the rebuilding of Iraq under way, that’s no small task and the Port of Aqaba is sparing no expense making sure they get it right from the beginning.

The port was founded back in 2004 as part of a management contract between Aqaba Development Corporation (ADC) and APM Terminals Jordan. The concession agreement took place in September 2006 when a further 25-year joint development agreement was signed. Under the agreement, APM Terminals manages, operates and markets ACT and is responsible for the execution of the company’s ‘masterplan’. Over the past five years, the terminal has become a main liner facility, operating to international standards and playing a crucial role in the Jordanian economy.

Growth is Coming Fast

Back in 2006 the port’s gantry crane (cranes used to load shipping containers on ships) was a paltry 7 or 8 moves er crane/hour. That rate has jumped to 30 moves/crane/hour this year. Because if it’s location growth is coming fast.  Jordan and Aqaba specifically is located in a perfect spot to receive containers from most parts of the world that are destined for Jordan and the wider Middle East.

It is connected on weekly services from Africa, Europe, the Far East and the Indian subcontinent with a number of the world’s top shipping lines. Situated at the crossroads of 3 continents and 4 countries, Aqaba enjoys an attractive location in the heart of the Levant and caters to more than fifteen of the world’s top shipping lines.

Adding to the benefits is the fact that the water around the port is deep and therefore dredging is not a concern that other ports have the added expense of tackling.

A productive and profitable port take more than a blessed real estate and that’s another area that the Jordanian port shines in. Communications manager Ihab Alrawashdeh reiterates the other strengths. “We have excellent land transport connections for the rest of Jordan and into the Levant and Iraq, particularly in terms of road infrastructure,” in addition, Alrawashdeh said, “We are also directly connected to the rest of the logistics support areas such as the airport, so it is easy to deliver sea freight there, or bring air freight here. This is coupled with our international standards of operations and productivity.”

More Expansion

As of this year Phase 1 of the Port Project is completed and the next phase which will almost double the capacity of its berths to 1000 meters.

Aside from the investments in physical space, machinery, and services they are also pumping money into the most high-tech equipment. Productivity is key and to realize the master plan of being the leader in the region even small gains can put them ahead of the competition.

“When it comes to new technology, at the end of the day we are a port and there are only so many places where we can be cutting-edge. However, when those opportunities arise, we seize them. Our most recent investment has been in six new RTGs which are not only as advanced as possible in terms of technical capabilities, but they are also ‘eco-cranes’. This means that they emit much less CO2 than standard RTGs, but they still have very high productivity levels.” added Alrawashdeh.

At the End of the Day

Iraq is rebuilding after a long war and the Middle East is growing at a healthy rate. The Port of Aqaba is just the beginning of a long expansion of the potential in this region and the people who manage the port see this.  “Our final aim is for ACT to be a key transit hub for the Levant, especially Iraq,” he says. “This means that we are looking to double our total throughput and plans are already in place to achieve that. With our master plan and commercial strategy, I believe that this is something we will achieve within the next five years.”

Image: VirtualTourist

Source: ACT, BusinessExcellence, AqabaZone

22
Aug
11

Investment is Paying off in Oman

Just a few short years ago, the Port of Sohar was an ambitious project that was fighting a lot of competition in the Middle Eastern shipping business. After huge growth year after year, it’s starting to turn more heads than a cat walking model.

Oman

Official Directive

In line with the royal directives of His Majesty the Sultan, Port Sultan Qaboos will be converted from a commercial port to a full-fledged tourist port. During the implementation of this project, the Port of Sohar is proposed to receive additional container throughput of 350,000 TEUs, according to Sohar Industrial Port Company – the landlord-operator of the industrial port, reported the Times of Oman.

Facts and figures

In 2007 the port handled just 6,290 twenty-foot equivalent units. This year they are projected to handle of 100,000. With the addition of the traffic that will be rerouted from the Port Sultan Qaboos, that number is expected to jump to over 500,000 in the next year and a half.

The Port of Sohar is a 50:50 joint venture between the Government of Oman and the Port of Rotterdam and located 220km northwest of the capital Muscat. The industrial port is a deep-sea port and has grown tremendously in size and importance in only seven years since its start in 2004.

First Class

Like most things done, in the middle east, they’re done high-class and tech proficient. The Port of Sohar is no different. The ports development was initiated back in 1999 as part of the Oman Vision 2020. Because of the attractive position in respect to the Arabian Sea and the Indian Ocean, the initiative is seen as a primary attribute to spreading trade throughout both the country and boosting its clout with neighboring ports and countries.

On Thursday of last week it was reported in the Oman Daily Observer that the Sohar Industrial Port Company (SIPC), signed a deal for the establishment of “Port City”. The new $15.5 million project will be located in front of the port secured area, the complex will provide members of the user community, notably shipping agencies, freight forwarders, and other port and maritime service providers with a suitable and fully equipped base from which to conduct their business within Gateway Sohar.

“Any port attracts many different users and third parties, such as shipping agents, freight forwarders, and so on, as well as government agencies that handle customs, health, quarantine services, and so on. We believe a complex like this is a key requirement within the port area to serve these various users. It will be a hugely successful venture because it provides a comprehensive range of services and amenities, including shopping, fuel, and other services. This combination of services is a good factor in attracting parties, who are currently scattered or not present in Sohar, to take up space in this complex. We’d like to encourage specifically shipping and cargo handling agents, among others, to have their offices at Port City.” said Jamal T Aziz, CEO of Freezone Sohar.

Construction work on the project is expected to commence by December 1, 2011, with Phase 1 due to be commissioned by 2012-end. Phases 2 and 3 will be brought into operation by the end of 2014.

Phase 1 planned to be a “One Stop Service Building” which will house the front offices of relevant government departments and shipping agencies, allowing efficient document handling for the continuously increasing marine activities in Port of Sohar.

Along with the service building, phase one will also include a Superstation- a new concept filling station with a range of facilities for both trucks and drivers. It will feature a service station for trucks, coffee shop and shower facilities for drivers. This part of the project will be supervised by Oman Oil Marketing Company (omanoil).

J.O.B.S.

Subsequent phases of the project will offer space for businesses, such as banks, local retail and even a supermarket. With its high level of ambience and amenities, Port City will emerge as a landmark within the Port of Sohar, said Jamal Aziz, adding that the project is also expected to create a large number of jobs for local Omanis.

The port has obviously done some good planning. They are taking advantage of the increase in business by catering to their clients. In doing so, they’re creating jobs, making money, and keeping everyone happy and busy. An idle mind is the devils playground. It looks as though there’s no such thing at the Port of Sohar. Things there are going to be there busy for quite some time.

More jobs equal more money. More money equals more spending. More spending equals more goods and services coming in and going out of the country. Contact Pacific Tycoon. Let us show you how you can be part of this growth in Oman and the rest of Asia through container ownership.

Image:CTGroupTravel

Source: CargoNewsAsia, TimesOfOman, PortOfSohar, OmanDailyObserver, OmanInfo

19
Aug
11

India Gets Serious About Inflation

Demand is a funny creature. A healthy dose of it keeps the gears of the economy rolling smooth. Too much of it, drives up the cost of goods and services and can grind the wheels to a halt. Not enough demand and the same thing happens. Moderation is the key. It’s hard enough moderating your own personal vices yet alone those 1.2 billion people, in the world’s second most populous country. Despite the difficulties that come with managing that moderation, India is tackling the problem with a new round of planned investments in its port to the tune of US$60 billion dollars.

The Social Network

A Trillion is Cool!

In a line made famous by the movie based on Facebook, one of the lead characters told the young founder that a million isn’t cool. A billion is cool. If that’s true then the planned investment in Indian ports and other transportation outlets well surpasses that.

The $60 billion dollar investment in the ports is part of Prime Minister Manmohan Singh’s planned $1 trillion revamp of choked transport and power networks to achieve faster expansion.

The initiative must transcend a history of insufficient investment, which has left the world’s most populous democracy trailing a Chinese economy now more than three times larger.

“If there isn’t enough capacity, you lose time and it adds to cost,” said Leif Eskesen, an economist at HSBC Holdings Plc.

Companies Want Action

Thermax’s, a power equipment manufacturer, managing director M. S. Unnikrishnan says “It takes 45 days transportation for incoming cargo for me and similar time when I send it to my customers overseas.” He was also quoted as saying,  “The Chinese can possibly do it in seven days.”

This adds costs and reduces efficiency and India is taking action. The Indian government is relying partly on investment by companies such as DP World Ltd. and AP Moller-Maersk to lift capability at ports to 3.1 billion tonne by 2020 from 963 million tonne in 2010.

After implementation of the building this will enable greater imports of consumer good like, electronics, raw materials, and oil, which in turn dampens inflation by better feeding consumer demand. India has 13 major ports overseen by the central government and 187 smaller harbors that account for 90% of exports by volume. India imports more than it exports and thus had a trade deficit of almost $105 billion in the last fiscal year.

They Keep Coming

At 1.2 billion people and growing, India is the second most populous country in the world and that figure is only getting bigger. They are projected to capture the title of most populous, overtaking China by 2025. In reality, that’s not that far into the future and arrives just after the total of the ports investment money will be put into action by 2020. Perfect timing.

In the meantime, Pacific Tycoon is here to help you wade through the waters of container ownership and leasing that puts your money to work by leasing your containers to the world’s largest companies that are shipping to India, China and other fast growing economies in Asia. With the world financial markets and developed countries are suffering due to mismanaged debt, demand is Asia is pumping money into the hands of our container owners. Contact us and let us show you how easy a direct investment into the Asian economies can be.

Image: TheSocialNetwork

Source: HellenicShipping, Wikipedia

17
Aug
11

China All Over Top Container Port List

If you want to see where the developed world stands in today’s global economy, then take a look at the Top 20 ports list for 2011. There’s one in the top 10 that doesn’t belong to an Asian country. Rounding out the top 10 is, Rotterdam, the second largest city in the Netherlands and the largest port in Europe. Antwerp, Hamburg, L.A. and Long Beach are the only other non-Asian ports in the top 20.

Hong Kong PortString of Pearls, More and More Attractive

The Chinese Academy of Sciences recent research report says that container throughput in the Asian region is being fueled by strong Economic growth from China, India, and others in the region, including the Middle East.

Huang Anqiang, a senior member of a specialized economics team working for the centre said that China will likely prevail again in the year-end standing of top container ports. His team expects 10 of China’s container ports, including Hong Kong and Kaohsiung, to be in the world top 20 league this year, one more than in 2010.

“The transfer of the world manufacturing centre and slow economic growth in advanced economies will push down their ports down the ranking of top 20 global ports,” Huang said.

Most ports in the top 10 list will not be from advanced economies in 2011. This is in huge difference compared to the year 2000 when nine out of the top 10 were from developed countries, Huang said.

Apart from China, ports in Southeast Asia and the Middle East are picking up speed thanks to faster-growing regional economies and their locations on trunk shipping lines.

Singapore, which was displaced by Shanghai from the top position by a small margin last year, has continued its slow growth since the latter half of 2010. However, its ideal location, free port policy and increasing trade with Southeast Asian nations may shore up its volumes in the rest of 2011. The city state’s container volume for 2011 could exceed 29 million TEUs again but it will fall slightly short of the top mark expected to be achieved by Shanghai.

Malaysia’s Port Klang is turning its attention to container trade related to China and India, two of the world’s strongest growing economies. The strategy has paid off and it expects to report 8.8 to 10.7 percent container throughput growth for 2011. The Port of Tanjung Pelepas has tapped its potential for domestic as well as international trade to maintain a higher growth of at least 13.7 percent, which could place it 17th in the global rankings.

Top 20 container ports in 2011 (forecast)
Ranking, Port, Country

  1.  Shanghai, China
  2.  Singapore, Singapore
  3.  Hong Kong, Hong Kong
  4.  Shenzhen, China
  5.  Busan, China
  6.  Ningbo-Zhoushan, China
  7.  Qingdao, China
  8.  Guangzhou, China
  9.  Dubai, Dubai
  10.  Rotterdam, Netherlands
  11.  Tianjin, China
  12.  Kaohsiung, Taiwan
  13.  Port Klang, Malaysia
  14.  Antwerp, Belgium
  15.  Hamburg, Germany
  16.  Los Angeles, U.S.A.
  17.  Tanjung Pelepas, Malaysia
  18.  Long Beach, U.S.A.
  19.  Xiamen, China
  20.  Dalian, China
For comparison purposes, in the year 2000 Shanghai was number 6, Shenzhen was 11, Ningbo was 65, Qingdao was 24, Tianjin was 32. Shanghai and Shenzhen made respectfully good jumps up the list but Ningbo, Qingdao, and Tianjin come from the stratosphere smashing onto the chart this year. You can see more of the comparisons at RITA (Research and Innovation Technology Administration)

More Reasons

With 9 of the top 10 ports in Asia, you’ve got 9 very good reasons to look into direct investments in the container industry. Pacific Tycoon has the experience, knowledge and expertise to manage containers and pay you very well as you lease them to the very companies that supply the region with material goods needed for the ongoing expansion.

Source: CargoNewsAsia, ChineseAcademyOf Science



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