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Africa is Ready for Growth with Support from Trans-Ocean Transportation

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Africa is Ready for Growth with Support from Trans-Ocean Transportation

RTM Lines is a trans-ocean transportation company headquartered in Norwalk, Connecticut, with over 39 years of experience in the global ocean carrier business. As a respected ocean transportation provider, we are continually equipping clients with valuable information and insight related to the ocean transportation industry.  Recently, RTM Lines has invested time and research to better understand the growth of African infrastructure and resources; and how those factors affect opportunities for growth and development in the breakbulk and project cargo markets. Research shows Africa resources and opportunities in key locations such as the Democratic Republic of Congo, Ethiopia, and Northern Mozambique. 

“Right now, the Democratic Republic of Congo (DRC) is sitting on the world’s largest cobalt resource, however the ongoing political turmoil, makes it very difficult to access the cobalt,” said Richard Tiebel, RTM’s Executive Vice President. He states, “Africa is showing more exponential growth than any other continent. Right now, markets like Ethiopia have shown 8% GDP growth, per annum. Analyzation shows there are a number of factors within urbanization, ICT (Telecommunications), and the Extractives Industry (Oil, Gas, and Mining) driving this growth.” 

With an array of potential possibilities for growth in Africa in the coming years, RTM Lines recommends directing attention to trades and the international markets in Africa, specifically in the shipping and trading processes. The growth and opportunities available in the African market, have great potential for clients that develop and understand the Africa market. 

“In the next 4-5 years, city populations in Africa will double, which means the infrastructure will need development. This development will motivate the community to build infrastructure that supply power, water, sanitation, housing developments, and support to serve the new population in the area. Most governments couldn’t support fixed-line infrastructures, but Africa is going through an information, communication, and technological revolution. The private sector is supporting this revolution and allowing Africans to pursue business opportunities. Companies like Microsoft have been investing in some African tech sectors, to develop talent and to take Africa forward,” said Tiebel.

As the International Maritime Organization (IMO) 2020 regulation will soon go into effect, Tiebel shared his perspective on how Africa’s natural resources can positively influence the trans-ocean transportation industry. 

Mr. Tiebel states, “the gas in Northern Mozambique is the world’s 12th largest natural gas resource. A lot of infrastructure will be needed in order to get this gas because the town itself is very small and scarcely has roads to support it, no port, no airport, or even power and electricity. The town of Palma will literally be built up in order to access this gas resource offshore.” He continues, “the cost of the IMO regulatory change on the shipping industry is unknown, and though we know the IMO’s decision will impact refiners, producers, bunker suppliers, and more, Africa offers a variety of natural resources to emerge as a major beneficiary of this regulation. This supply of natural resources has the potential to help the trans-ocean transportation industry control the anticipated spike in fuel costs in 2020.” 

RTM Lines is committed to providing customers the information necessary to ship ocean cargo with confidence. Understanding the changes and regulations in these expanding and shifting markets is key to providing smooth transit for infrastructure, mining, and oil & gas project cargo. RTM Lines is both knowledgeable and competent in global operations. Port to port, RTM Lines strives to improve the global trade market and the quality of the ocean transportation industry.

KCS, Global Partners To Develop ‘Oil Train’ Terminal

Kansas City, MO – The Kansas City Southern Railway (KCS) is partnering with New England-based Global Partners LP to develop a unit train terminal in Port Arthur, Texas.

The waterborne terminal, which will be constructed on a 200-acre parcel leased from the KCS by Global Partners, will initially serve as a destination for heavy crude from Western Canada utilizing 340,000 barrels of initial storage capacity.

When fully operational with the commencement of unit train service, the terminal is expected to have an initial capacity of up to 2 unit trains per day.

Construction of the terminal is contingent upon Global Partner’s receipt of all necessary permits.

“The Port Arthur terminal represents a significant opportunity to capitalize on strong demand for the movement of Western Canadian crude initially to one of the world’s premier refining centers in the US Gulf Coast,” said KCS President and Chief Executive Officer David L. Starling.

“Through their established base in the Northeast, North Dakota, Western Canada and the Pacific Northwest, Global,” he said, “has built an outstanding reputation for the quality of its logistics and terminal operations.”

Headquartered in Kansas City, Missouri, Kansas City Southern has railroad investments in the US, Mexico and Panama. Its primary US holding is the Kansas City Southern Railway Company, serving the central and south central US.

Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, which provides ocean-to-ocean freight and passenger service along the Panama Canal.

The railway’s North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the US, Mexico and Canada.

Headquartered in Waltham, Massachusetts, Global Partners LP is a purchaser and seller of and logistics provider for domestic US- and Canadian-sourced crude oil and other products by rail across its “virtual pipeline” from the US Midwest and Canada the East and West Coasts for distribution to refiners and other customers.

The company owns, controls or has access to refined petroleum product and renewable fuel terminal networks throughout the US Northeast, and also distributes gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers in New England and New York.

With a portfolio of approximately 900 locations primarily in the Northeast, Global also distributes natural gas and propane, and serves as the independent owner, supplier and operator of gasoline stations and convenience stores across the country.

07/24/2014

Reports Call for End to US Petroleum Export Ban

Washington, DC – US consumers could see their energy bills shrink and more than one million jobs would be created if the government in Washington, DC ended its nearly four decades-old ban on crude oil exports, according to two reports published by the American Petroleum Institute (API) and the industry research firm IHS.

The API report forecasts “broad-based economic gains” if the oil ban were lifted, repeating its assertion that exporting oil would economically benefit not only oil-producing states but other states as well.

Eighteen US states could gain over 5,000 jobs each in 2020 from exports of US crude oil, said Kyle Isakower, the API’s vice president for regulatory and economic policy.

Most states, he added, “could see economic activity grow by hundreds of millions of dollars due to growing energy production and downward pressure on the prices at the pump, while the US is poised to become the world’s largest oil producer, and access to foreign customers will create economic opportunities across the country.” .

“When it comes to crude oil, the rewards of free trade are not limited to energy-producing states. New jobs, higher investment, and greater energy security from exports could benefit workers and consumers from Illinois to New York, especially in areas where consumer spending and manufacturing drive growth,” said Isakower.

In its own study released the same time as the API report, Colorado-headquartered IHS predicts an end to the export restrictions “could inject $746 billion in additional investment into the economy between 2016 and 2030, while increasing domestic oil production by an average of 1.2 million barrels more per day.”

The additional crude oil supply, the report said, “would lower gasoline prices by an annual average of 8 cents per gallon with the combined savings for US motorists during the 2016-2030 period translating into $265 billion compared to a situation where the restrictive trade policy remains in place.”

A boost to the US economy would be “rapid” and “accompanied by a surge of capital that could help depress gas prices in the longer term and lower the country’s own petroleum imports by nearly 1 million b/d in 2016 for a savings of more than $43 billion, it said.

The current US oil and gas boom “is a huge win for us, but it takes a little education” for drivers to appreciate the economic benefits of flooding global markets with American crude,” the API’s Isakower said. “The public will get behind crude exports when they see a benefit for themselves.”

Last year, the Council on Foreign Relations released its own report, which concluded that, “Removing all proscriptions on crude oil exports, except in extraordinary circumstances, will strengthen the US economy and promote the efficient development of the country’s energy sector.”

06/06/2014