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BNSF claims its freight train has derailed in Arkansas after a storm
The United States BNSF Railway said on Wednesday that it received a preliminary report about a derailment of a train near Bay, a city in Arkansas' northeastern region. This area was also hit by tornadoes and storms earlier in the day. BNSF didn't specify the cause of the derailment but stated that the incident occurred around 6:50 p.m. on Wednesday. The railroad group stated that the mainline was affected by the derailment, and an estimate time for the reopening of the track has not been determined. On Wednesday, tornadoes tore across the central and southern United States, destroying houses and businesses as well as power lines and trees. CNN reported that the severe storms affected multiple cities, including Bay, in Craighead County, Arkansas. County administrator Brandon Shrader was cited by CNN. BNSF declined to comment on a request made outside of regular business hours. (Reporting and editing by Janane Vekatraman in Bengaluru. Shubham Kalya, Bengaluru)
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BNSF claims its freight train has derailed in Arkansas after a storm
BNSF Railway in the United States said on Wednesday that it received a preliminary report about a derailment of a train near Bay, a city in Arkansas' northeastern region. The area was also hit by tornadoes and storms earlier in the day. BNSF didn't specify the cause of the derailment but stated that the incident occurred around 6:50 p.m. on Wednesday. The railroad group stated that the mainline was affected by the derailment, and an estimate time for the reopening of the track has not been determined. On Wednesday, tornadoes tore across the central and southern United States, destroying houses and businesses as well as power lines and trees. CNN reported that the severe storms affected multiple cities, including Bay, in Craighead County, Arkansas. County administrator Brandon Shrader was cited by CNN. BNSF declined to comment on a request made outside of regular business hours. (Reporting and editing by Janane Vekatraman in Bengaluru. Shubham Kalya, Bengaluru)
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Can Panama cause a snag in BlackRock's port deal?
BlackRock may face another obstacle in its bid to gain control of two ports near the Panama Canal, once Central America releases an audit regarding a 25-year contract granted to Hong Kong's CK Hutchison. Sources told us last week that the final signature on the deal, which is part of a larger $22.8 billion transaction involving over 40 ports across 23 countries and a BlackRock group, will be delayed due to growing criticism in China. BlackRock and CK Hutchison announced the deal last month, stating that they expected definitive documentation to be signed no later than April 2. Panama's government has requested documents from CK Hutchison - a conglomerate that combines telecoms and retail - owned by Li Ka-shing - to conduct an audit of the concession. Panama's Maritime Authority asked BlackRock and CK Hutchison for details about their deal. This must be approved by Panama. Panama Ports Company operates the Balboa Port and Cristobal Ports at either end the Panama Canal. What could the audit find? In January, the Comptroller General's office announced that Panama ports audit would be "the most significant" in a series reviews of Panama's key infrastructure concessions. Anel Flores, the Comptroller General's office, said last week results would be expected within a few days or weeks. Flores has criticized past audits including the one conducted before CK Hutchison’s concession was renewed 2021. He said they were limited to confirming operational goals. He said in an earlier statement that "we'll start a serious, strong audit of these books and the company." Flores also complained of the 'poor return' on the contract for Panama, and the slow delivery from CK Hutchison of the documents requested. In February, Panama’s Attorney General issued a binding opinion stating that the port contract is unconstitutional. Panama's Supreme Court has the final say on this. Lawyers and experts said that if the Comptroller General found irregularities in the renewal of the concession or the Supreme Court declared the contract unconstitutional, then the concession could revoked. This would complicate the BlackRock-CK Hutchison agreement and create grounds for international arbitrage, they added. WOULD TRUMP'S PRESSURE BE EASED BY THE DEAL? The U.S. president Donald Trump has praised the BlackRock-CK Hutchison agreement, whereas China and pro Beijing voices have criticized the deal. This brings the Panamanian port and the companies involved into the U.S. - China trade war. Any obstacles to the deal could lead Trump to become more aggressive in his policy toward the canal. Since taking office as president in January, Trump's threats to control places that he believes could better serve U.S. interest, such as the Panama Canal or Greenland, have increased. The ports do not form part of the canal. The ports are not part of the canal. However, American politicians and officials have claimed that CK Hutchison’s control over them, as well as other concessions made to Chinese companies in Panama, poses a threat to the operation of the canal. CK Hutchison said that the sale of ports was purely a commercial transaction and had no political significance. Panama claims that the canal operates in a safe and fair manner, providing equal access to all vessels. WHAT IS THE VIEW FROM CHINA? Pro-Beijing publications have published a number of articles criticizing CK's Hutchison deal. They describe it as a betrayal to China and a "perfect collaboration" with U.S. strategies to contain China. The pressure placed on CK Hutchison has heightened concerns that Hong Kong’s position as a financial center will erode even further in the face of geopolitical tensions. What is in it for Blackrockk? BlackRock has recently invested in infrastructure and this purchase gives the fund manager an excellent position in a key global trade center. Chinese state media reported that the deal could allow BlackRock to control 10.4% of container throughput worldwide, making it third in the world. It has been said that the deal will help BlackRock CEO Larry Fink gain political capital among Republicans who have in some states restricted or banned BlackRock's management of retirement or treasury fund due to its policies on corporate governance, environmental, social, and ethical (ESG). After Trump's praise of the BlackRock deal, some Republicans reconsidered their bans. Reporting by Elida Moroooo in Panama City; Marianna Parraga, in Houston; Clare Jim, in Hong Kong; Lewis Jackson, in Beijing; Ross Kerber, in Boston; Bo Erickson, in Washington; Writing and editing by Christian Plumb, Nick Zieminski;
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Financial Times - April 3
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch their accuracy. Headlines - Denmark's Maersk buys Panama Canal railway Deutsche Bank's asset management manager fined 25 Million Euros over greenwashing scandal Steve Buck is named as the new Chief Financial Officer of Thames Water Greencore signs 1.2 billion pound deal with Bakkavor, a UK rival in the ready-meal market View the full article Canadian Pacific Kansas City and Lanco Group, based in the United States, have sold the Panama Canal Railway Company (PCRC) to a Danish Maersk unit. Maersk is one of the largest container shipping groups in the world. German prosecutors fined DWS asset manager 25 million euros (27.30 millions dollars) after a long investigation found the firm guilty for greenwashing or misleading statements about their environmental and social investment credentials. Thames Water, Britain's largest water provider, has appointed former British Gas finance director Steve Buck to its position of chief financial officer. Buck will help implement the turnaround plan for the company that is heavily in debt. Greencore, a British convenience food company, has agreed to purchase Bakkavor for 1.2 billion pounds (1.57 billion dollars) in order to create the largest manufacturer of convenience foods in Britain.
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Exclusive: Canada's Trans Mountain Pipeline lowers its forecasts of the amount of oil that it will ship
Documents filed by Trans Mountain Oil Pipeline's operator reveal that the company has revised its forecasts of how much oil will flow through the system in the next three-year period, due to the fact that the pipeline is being used less than anticipated. Trans Mountain's lower forecasts filed with Canada Energy Regulator by Trans Mountain last month were not previously reported. Analysts said that the lower forecasts show oil companies' unwillingness to pay the higher tolls Trans Mountain, owned by the government, has charged customers to transport oil via the newly expanded pipeline. The pipeline is not using 20% of its capacity, reserved for spot shipments, because the shipping costs are much higher than those on the Enbridge Mainline, North America's largest crude pipeline, which transports oil from Western Canada to Eastern Canada and U.S. Midwest markets. These lower estimates raise doubts about the Trans Mountain Pipeline's ability generate revenue and attract private sector buyers. Ottawa has stated that it will eventually sell the pipeline. The lower expected usage is also a sign of the difficulty in diversifying Canadian oil imports from the U.S. which purchases 90% of Canadian crude. Trans Mountain is Canada’s only east-west operating pipeline, and its only outlet for Asia and markets outside the U.S. Analysts and Trans Mountain themselves have stated that business could quickly improve if U.S. president Donald Trump slaps a tariff on Canadian oil. In May 2024, the expanded pipeline of 890,000 barrels per day (bpd), which runs from Alberta up to Canada's Pacific Coast coast, will begin service. Trans Mountain predicted that the pipeline would be used 96% of the time in 2025, which is its first year of operation, and this was as recent as November. The latest documents don't show the pickup the pipeline operator anticipated. Trans Mountain shipped only 18,500 barrels per day (bpd) of spot cargoes in its first eight-month period, as opposed to the forecast 30,600. Total utilization for 2024 was 77%, far below the forecasted 83%. According to the new forecasts, pipelines will be 84% full by this year, 88% in 2026, and 92% in 2027. It is now expected that the pipeline will not reach 96% utilization before 2028. Trans Mountain's spokesperson told an email sent to Tuesday that spot shipments are dependent on factors such as Canadian crude production, differentials in crude oil prices at global hub markets, and rates for marine freight. Analysts pointed to massive budget overruns in construction and the fact that Trans Mountain raised its tolls for customers last spring. The total construction cost was C$34 billion. This is nearly five times the 2017 estimate. Trans Mountain will bear approximately 70% of the cost overruns, but the remaining third - more than $9 billion - is considered to be "uncapped costs", which increases tolls according to a formula that was agreed upon by shippers and approved more than 10 years ago by the Canada Energy Regulator. Trans Mountain estimated that contracted shippers would pay more than twice as much in 2017. Spot shippers are charged even higher toll rates. Canadian Natural Resources Ltd. and Cenovus Energy, two of the largest contracted shippers, have resisted. This year, a regulatory hearing will be held to determine if the toll increases are fair. 'PROBLEM with Pipelines' Trans Mountain's main competitor, Enbridge Mainline, which transports crude oil to the U.S. Midwest, and eastern Canada offers 100% spot-capacity. The tolls on this line are about half of Trans Mountain's. In an email sent on Tuesday, Enbridge's spokesperson stated that the demand for space along the Mainline from shippers has been greater than the supply "for the majority of months" since Trans Mountain opened. Rory Johnston is an energy analyst who founded the Commodity Context Newsletter. He said that Trans Mountain's revised estimates show that shipping via the pipeline has become "too costly" for certain oil producers. Johnston stated that "this is the fundamental issue with pipelines and why it is so hard to get private actors into this space any more." Richard Masson is a former CEO of Alberta Petroleum Marketing Commission and executive fellow at University of Calgary School of Public Policy. Uncertainty remained about whether oil would be included as part of President Donald Trump’s announcements on tariffs, expected to take place Wednesday. Masson stated that Trans Mountain volumes could change at a moment's notice if conditions in the U.S. change. Trans Mountain has also reduced its revenue forecasts for the next three year as a result. Trans Mountain's revenue forecasts for 2025 have been reduced from an earlier estimate of $3.0 Billion to $2.7 Billion, $2.9 Billion from an estimate of $3.1Billion for 2026 and $3.0Billion for 2027. (Reporting and editing by Caroline Stauffer, David Gregorio, and Amanda Stephenson)
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US regulator suspends Colonial Pipeline’s proposed changes in fuel shipping terms
The Federal Energy Regulatory Commission has issued an order suspending Colonial Pipeline's proposed fuel shipping terms changes for seven months. Colonial Pipeline requested FERC approval last month in order to stop shipping gasoline of different grades at the same rate and reduce the number of grades that it transports on the pipeline. A filing shows that the regulator accepted and suspended for seven months the revised tariff record to reflect modifications proposed. The regulator will conduct a paper-based hearing to examine the concerns raised by Colonial Pipeline, fuel shippers and other stakeholders. Exxon Mobil and Chevron Corp, as well as BP Plc, filed protests with the regulator. They cited potential harm to consumers and shippers in order to increase Colonial profits. Colonial dismissed the arguments and said they were driven by protesting shippers who focused on their own economy. It claimed that the proposed changes would allow it to ship an additional 10,000 barrels of gasoline per day on its main pipeline which is almost always full. This will benefit both shippers as well as consumers. Colonial Pipeline has not responded to the request for comment. Reporting by Nicole Jao, New York
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Denmark's Maersk buys Panama Canal Railway Company
Canadian Pacific Kansas City announced on Wednesday that it and U.S. based Lanco Group sold the Panama Canal Railway Company, to a Danish unit of Maersk, one of world's largest container shippers. The Canadian Railway Company did not disclose the terms of the agreement, but said that it would allow them to focus on their core assets in Canada and the U.S. Keith Svendsen said that the acquisition was "an attractive infrastructure investment for our core services, intermodal container movements" in the region. The Panama Railway Company, a joint-venture between Canadian Pacific and Lanco Group units, provides rail-based passenger and freight services along the canal. Last year, it posted revenue of $77 millions. The deal is made at a moment when the administration of U.S. president Donald Trump has threatened to seize the canal, which was built by the United States in 1999 and returned to Panama. This threat stems from allegations that foreign influence, particularly China, is increasing. Hong Kong's CK Hutchison agreed last month to sell key port near the Panama Canal, to a group headed by BlackRock. This had helped ease some of Trump's pressure. The deal that was originally scheduled to be signed by this week is now expected be delayed due to China's criticism. Reporting by Aishwarya Jain, Bengaluru. Editing by Leroy Leo
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Kuwait cuts power as demand exceeds capacity
Kuwait, an oil-rich country, cut off electricity temporarily in certain industrial and agricultural zones on Wednesday due to a surge in demand caused by the hot weather. This was outstripping power plant generating capacity which had been limited because of maintenance. Kuwait, which is a member of the Organization of Petroleum Exporting Countries (OPEC), resorted last summer to load-shedding, for the first time since years, due to an increase in demand, urbanization and delays with plant maintenance. According to posts on X by the Ministry of Electricity, Wednesday's power outages lasted for less than two hours. The temperature has risen about 10 degrees in the last week, reaching a maximum of 38 degrees Celsius (100,4degF) Wednesday. The summer temperatures in the Gulf often exceed 50 degrees Celsius. The ministry has asked residents to reduce electricity consumption in general, and particularly between 11:00 am and 05:00 pm (0800 and 1440 GMT). Last summer, Kuwait imported electricity from Gulf Cooperation Council Interconnection Authority (GCCIA), a grid interconnected between Gulf countries. Kuwait Petroleum Corporation and QatarEnergy signed a contract in August to import 3,000,000 tons of liquefied gas per year to meet the rising demand for electricity generation. As part of its efforts to avoid an even longer-term power shortage, the country signed a framework with China last week to develop renewable energy with a total capacity of 3,500 megawatts. (Reporting and editing by Yousef Sabah and Joe Bavier; Reporting by Ahmed Hagagy)
Kremlin: Russia and US to study the outcome of discussions on Ukraine in Riyadh
The Kremlin announced on Tuesday that Washington and Moscow are analyzing the outcome of U.S.-Russian discussions in Saudi Arabia. However, it did not provide any details about the talks, which both sides claimed would be focused on a possible naval ceasefire between Russia Ukraine.
Russian and U.S. delegations met in Riyadh, Saudi Arabia on Monday. According to a source cited by Ukraine's Suspilne national broadcaster, Ukrainian and U.S. representatives will meet in the Saudi capital Tuesday.
Washington described Monday's discussions as an important step in President Donald Trump’s efforts to end the conflict. Ukraine and its European Allies are worried that Trump may seal a deal that would give in to Russian demands, and undermine their security.
Dmitry Peskov, Kremlin spokesperson, said that the Russian and U.S. delegations, which had investigated the feasibility of an agreement on safety of ships at the Black Sea, and other matters, had returned to their respective capitals.
"You'll see, these are technical negotiations that go into great detail. The content of these discussions will not be made public, therefore, it is a given. Peskov said to reporters that this was not what they should have expected.
"Secondly, and I repeat, the reports to the capitals are being analysed now." Then, and only then, will it be possible for us to discuss some understandings.
He denied that a meeting between Russia, the United States, and Ukraine was being discussed.
Peskov also said that there were no immediate plans to have a second conversation between Russian president Vladimir Putin and U.S. president Donald Trump. However, a new conversation could be arranged quickly if necessary.
Trump and Putin met last week. The Russian leader rejected a U.S. proposal for a 30-day ceasefire, but agreed to an attack moratorium against Ukrainian energy infrastructure. Ukraine is willing to participate in a limited ceasefire on energy if the agreement is documented properly.
OVERNIGHT ATTACK
Three years after Russia's army invaded Ukraine, fighting continues in Saudi Arabia. Ukraine's Air Force said that Russia launched 139 drones as well as an Iskander M ballistic missile in an overnight attack which injured two people and damaged storage in the Kyiv area.
Andrii Sybiha, Ukrainian Foreign Minister, said that Russia should stop what he called their war against civilians and not make "false statements about peace."
Russia has accused the Ukrainian military deliberately targeting two Russian reporters who were killed, along with their driver and another three people in an east Ukraine artillery attack. Kyiv is yet to make a comment about the incident. The U.S. is pushing for a 30-day ceasefire to pave the road for peace talks.
Putin demanded, as part of any peace agreement, that Ukraine abandon its hopes of joining NATO, and completely withdraw from the four areas claimed by Moscow. Ukraine has rejected territorial concessions.
On Sunday, Ukrainian officials met with U.S. officials at the Saudi Arabian Embassy. They were not present for Monday's discussions. White House sources said that progress is being made in Riyadh and an "announcement" should be expected "in the very near future."
Trump, who campaigned for president in 2016 on a promise to resolve the conflict quickly listed on Monday other issues that he claimed were on the table.
We're currently talking about the territory. He said, "We're talking lines of demarcation and power.
The White House said the initial goal of the Saudi discussions is to secure an agreement on a maritime truce for the Black Sea that would allow free shipping.
Since 2023, maritime battles are a relatively limited aspect of the war. After Ukrainian attacks forced Moscow to move their navy away from contested waters and allow Ukraine to reopen its ports and resume exports, this has allowed for a relative reduction in naval battles. (Reporting and Writing by Dmitry Antonov; Editing by Timothy Heritage).
(source: Reuters)