Category Archives: Logistics

It costs twice as much to export olive oil from Spain using China’s “One Belt, One Road” railway

Another report on the One Belt One Road initiative. I think the main point is not the facts so much as the background on how these routes get chosen. It points out clearly on the ground how economic ‘warfare’ is being conducted by China. The geopolitical aspects of their development initiative are paramount. China has a large market to sell, a lot of folks to keep working, and a lot of products that need to be sold abroad. The story gives examples of how leverage and negotiating power is used in transport discussions to advance the use of OBOR.

How is this different from an 18th or 19th century colonial power?  At least we are not having shooting wars over it … yet.

screenshot-qz.com 2016-07-06 08-03-36

Source: It costs twice as much to export olive oil from Spain using China’s “One Belt, One Road” railway — Quartz

‘Bizarre twist’ – HMM woos 2M Alliance

More about alliances!  Obviously there are not strong ties.

Speculation and debate continued today as to why Hyundai Merchant Marine has found itself in talks with Maersk and MSC

Source: ‘Bizarre twist’ as HMM changes tack and starts to woo 2M Alliance for membership – The Loadstar

The New Panama Canal: A Risky Bet

Outstanding long form research piece on the new Panama Canal locks.  Much of it is business as usual in the world of very large infrastructure projects; I’m reminded of San Francisco Bay Area’s struggles replacing and retrofitting several bridges to meet more resistant earthquake standards.  Cost overruns, failing concrete, poor design– all typical.

But a water shortage making ships lighten up before paying to use new locks that should let them carry full loads through?   And everyone knew in advance that more water would be needed?

Wonderful pictures, too, in this great story. We’ll see how it plays out.

  After a Spanish-led consortium won the right to build locks for bigger ships at a rock-bottom price, internal arguments soon gave way to larger problems.

Source: The New Panama Canal: A Risky Bet – The New York Times