Posts Tagged ‘Singapore

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

20
Jul
11

Singapore Port Takes Show on the Road

Outside of Shipping, when you mention Singapore the first thing that comes to many people’s minds is a fruity drink or a tiny country on the tip of Malaysia, but rest assured there is nothing small about the way they do business. Singapore also sits at number 3 on the wealthiest nations per capita list and they know how to make money.

Singapore SlingSingapore Ports are Top Dog

The ports themselves are the busiest in the world, behind Shaghai’s and that exactly why they’re taking their show on  the road. The Jurong Port, one of the 7 ports in Singapore, is moving ahead with its first overseas management project. They are setting up a joint business venture to manage and operate 7 berths at the Rizhao port in Northeastern China.

The Rizhou port is in Shangdong 500 kilometers north of Shanghai. Rizhao Port, which is owned by the Rizhao Port Group, is a leading port for coal, ore, grain, wood chips, cement and liquefied petroleum products. In 2010, the port’s 44 berths handled a total of 220 million tons of cargo and, thus, was ranked the ninth top coastal port in China for bulk cargo by volume.

This marks the first time the operators of he Jurong Port have shared their management expertise with a foreign port. The Chinese have nothing to lose and everything to gain from this project. The Jurong Port, at the same time, can use this project as a stepping stone to showcase its skills to other foreign investors who are looking to beef up the clout of their port operations.

The Singapore port is ready to get to work. “Our goal is to work with our joint venture partner to make Rizhao Jurong Port Terminals a shining success story,” Jurong Port chief executive officer Matthew Chan said. “The joint venture is the first step in Jurong Port’s quest to become an international multi-purpose port investor and operator.”

End Result

As Chinese ports get busier and busier, it’s important that the foundation is set and sturdy. It only makes sense that the Chinese partner with the best.

My father once told me that if you want to be the best, you need to play with the best. He discouraged me from playing with others that weren’t as good, as their was no way they would push me to excel or teach me new things. My father must have spent some time in China.

From all the reports that are coming out it’s hard not to get interested in participating in the growth happening  bother in Asia and Africa. At Pacific Tycoon we manage assets (containers) that you own, lease them out, and pay you quarterly or even monthly. There’s big business over here, and we’d like to show you how you can participate. Jump on board today with Pacific Tycoon.

Image: ReadyMade

Source: CargoNewsAsia

22
Jan
11

President Hu Jintao Visits The United States

This week, Chinese President Hu Jintao visited several American cities. The two super powers have had a cool relationship, and this visit signals a significant warming of that relationship. If only for the mathematics of it, their improved relationship helps us all.

A couple of charts accompany this blog entry. They show the relative size the U.S. and Chinese economies. Clearly, they dominate the world’s economies. In fact, if the U.S. were a mere 1% larger, it would be as if we added a whole new economy the size of Singapore to the international marketplace.

Over the last few years, many of the largest economies on the chart have been stagnant in their growth. Even as Asian economies have enjoyed substantial growth, the lethargy of those large economies has held the world back from where it could be today.

We applaud both China and The United States for taking this step. We are anxious for the day we can report that all of the world’s economies are growing comfortably. We  hope that some day we will look upon the January 2011 visit of President Hu Jintao to America as the day the world’s economy started to grow again.




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