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Diplomat: US will continue to fund Angola's Lobito railway corridor despite cuts in spending
A U.S. Diplomat said that despite the aggressive spending cuts of President Donald Trump, the United States is committed to funding the Lobito Rail Corridor, which will help transport vital minerals from central Africa's copperbelt into the West. The U.S., through the International Development Finance Corporation (IDFC), set up in Trump's first year in office, has pledged $550 million in loan support for Lobito. Lobito is seen as a key component in countering Chinese control of copper and cobalt in the region. Trump's cuts in spending had caused concern for projects like Lobito, which plans to go to Angola and Zambia as well as the Democratic Republic of Congo. The U.S. James Story, the ambassador to Angola on Wednesday, tried to calm fears. Lobito Atlantic Railways executives, European diplomats and Angolan officials accompanied Story on a project tour in Angola. Story replied: "Not for the time being." When asked if the funding of the Lobito Corridor was in danger, Story responded: We are working on all the projects we have with DFC, Exim Bank and the DFC. Story stated that "we're not moving away from the project as some organisations claim." Angola awarded a 30-year concession for the Lobito corridor to a joint venture led by Trafigura and Mota-Engil, a construction giant, as well as independent rail operator Vecturis SA, in 2022. The first phase of this venture involves refurbishing a 1,300 km railway in Angola, and extending it to the mining heartland of the Democratic Republic of Congo. This will facilitate the export of copper and cobalt along the Atlantic coast. The second phase, currently under feasibility studies, would connect Zambia - Africa’s second largest producer of copper after the DRC. Francisco Franca, CEO of Lobito Atlantic Railways, who took part in the tour, stated that DFC financing contracts are "currently at the final stage". Franca stated that "in two to three months, we will have contracts signed. Then the international financing procedure will follow." Rosario Bento said that the Western governments, including the U.S., remain committed to the Lobito Corridor project. She said, "The United States is interested in the region. They are already receiving raw materials through the Lobito Corridor." "I do not see the United States as being disinterested by something that they already benefit from," she said. Reporting by Miguel Gomes, Writing by Nelson Banya, Editing by Olivia Kumwenda Mtambo and Andrew Heavens
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Maersk: Trump tariffs are bad for the global economy and trade
Maersk, a shipping company, said that on Thursday the tariffs announced on Wednesday by U.S. president Donald Trump are bad news for global trade and the economy. Trump's decision to slap 10% tariffs on the majority of goods imported into the United States as well as higher levies against dozens rivals and allies has intensified a trade war around world that could stoke inflation or halt growth. Maersk stated in a written statement that the tariff plan announced by U.S. officials was important, but in its current format, it is not good news for global trade, economic stability, or security. It is too early to predict with certainty how the situation will end up. It added. The second largest container shipping company in the world said that it expects customers to be more careful about their inventory levels. It also predicts a short-term spike in air freight orders for the U.S., before tariffs are implemented. (Reporting and editing by Terje Solsvik, Stine Jacobsen)
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The traders' union reports that Ukraine's main sunoil exports fell 20% y/y in March.
Ukraine, which is the largest sunflower oil exporter in the world, has reduced its exports of sunoil to 503,000 tons in March, down from 629,000 tonnes a year ago, according to the Ukrainian traders' union UGA. Analysts have stated that the union has not given a reason for this decrease, while some sunoil refineries have been forced to stop production and exports due to a spike in sunflower seed prices locally caused by a smaller crop. After a record-breaking 6.2 million tons of soybeans were harvested in 2024, refineries began processing the crop. UGA reported that soybean oil exports increased to 57,000 tonnes in March 2025, compared with 31,000 tons of March 2024. The Ukrainian UCAB agriculture business association stated earlier this year, that Ukraine's exports of sunoil could drop to 4,74 million tonnes in the 2024/25 seasons from 6,25 million tons during 2023/24 season as the sunseed crop fell to 11,00 tons from 14,00. UCAB reported this week that Ukraine's total agricultural exports for March increased 9.8% compared to the previous month, reaching 5.4 million metric tonnes. The report said that while all product categories showed growth, the biggest increase was seen in the oilseed processing products. (Reporting and editing by Shri Navaratnam.)
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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)
Heathrow boss criticized for his resilience after lawmakers investigate shutdown
Heathrow's boss was criticized for a 18-hour airport shutdown last month. An airline representative had said that he raised concerns days earlier about the hub’s resilience, and lawmakers were scrutinising the embarrassing incident.
The closure of the airport on March 21 was caused by a fire at a nearby substation, raising concerns about the resilience and safety of the national infrastructure. About 300,000 passengers were left stranded by the incident and airlines lost millions of pounds.
In an effort to learn from the past, members of Parliament quizzed Heathrow's chief executive, National Grid representatives, SSE, and airline representatives on Wednesday.
Nigel Wicking said that he expressed his concern to the Heathrow Airline Operators' Committee, which represents 90 airlines at the Heathrow hub, on March 15, 2015.
Wicking stated that he had warned Heathrow about his concerns regarding the substations. Wicking's concern was about resilience.
Two days prior to the fire, he raised concerns after one of Heathrow’s runways was left without lights for a brief period of time due to theft of cable.
Thomas Woldbye said that safety was Heathrow's main concern. Heathrow's CEO, Thomas Woldbye, said that safety was the main concern.
Wicking stated that the airport should and could have begun flights earlier.
He said: "I don't hear that there wasn't enough power to get into Heathrow." "I heard that it was taking time to get the power where it needed it to be at Heathrow." "10 hours was too long for me."
Woldbye stated that the contracts between airports and power suppliers included resilience. He said that building full resilience would cost a lot of money, around 1 billion pounds.
(source: Reuters)