Category Archives: Strategy

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

Posted on July 6, 2016 by | Comments Off on 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

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Posted in Logistics, Strategy, Supply Chains

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The New Panama Canal: A Risky Bet

Posted on June 23, 2016 by | Comments Off on 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

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Posted in Logistics, Ports, Shipping, Strategy, Supply Chains

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Great Masquerade of Shipping – Posidonia 2016

Posted on June 17, 2016 by | Comments Off on Great Masquerade of Shipping – Posidonia 2016

I did not go but, having attended lots of conferences, I can get down with the author! It’s hard times in shipping, and that brings out the stress. read the article itself!

This has always been true in big business:

Shipping sees massive deals concerning the movement of millions of barrels of oil on behemoth ships can be made over a third pint of beer at the local pub.

Source: The Great Masquerade of Shipping at Posidonia 2016 – The Barrel Blog

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Posted in Logistics, Shipping, Strategy

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