Transport Infrastructure

Cargill and BTG Pactual Commodities, as well as a consortium consisting of Louis Dreyfus, Brazilian grain trader Amaggi and the Louis Dreyfus Group have been awarded rights to operate 3 terminals in Paranagua Port on Wednesday. The competitive auction that involved multiple bidders highlights the importance to improve Brazilian logistics within the context of the global trader's war. The companies bid a total of 855 million reais (about 151 million dollars) at an auction held by the Sao Paulo Stock Exchange for the right to operate three different Paranagua zones for 35 years. Global grain traders are preparing to meet...

The Shanghai Futures Exchange's (ShFE) copper inventories declined this week. This is the second consecutive week that there were double-digit withdrawals. Traders say it could lead to a spike in imports and prices. Copper inventories in the ShFE On Wednesday, the number of 89,307 metric tons fell by 27,446 tonnes, or 23.5%, from Friday. The 32% drop in the previous week was the biggest percentage decline ever. Four traders said they expected withdrawals to raise prices for ShFE Copper, a critical metal for China's vast industrial sector. They also expect more metal to be brought into the exchange warehouses. This...

As part of a tax reform package under consideration, the U.S. House Republicans propose $15 billion for new funding to reform air traffic control and a $200 new fee on electric vehicles. Sam Graves will present his proposal to the House Transportation and Infrastructure Committee, which is headed by him. The proposal calls for new funding up to 2029, including for the replacement of aging infrastructure such as air traffic towers, radars and telecommunications systems as well as for $1 billion in air traffic controller hiring. Joe Biden, the then-president of the United States at that time, proposed in March...

Calculations based on official sources and data showed that Kazakhstan increased its oil exports from January to March by 7%, to 19.51 million metric tonnes (1.63 millions barrels per day), thanks to an increase in supply via the Caspian Pipeline. The oil output and exports of Kazakhstan, a country that ranks among the top 10 oil producers, are in the spotlight. This is because the Central Asian nation has exceeded the quotas set by the OPEC+ group, which has angered several members, including Saudi Arabia. The Caspian Pipeline Consortium exports oil via the Black Sea from Kazakhstan. Drone attacks have...

Mexico is expanding its largest seaport as it bets on global trade and positive economic growth despite the grim outlook caused by U.S. president Donald Trump's tariff wars. According to the Mexican Navy which operates the facility, the Mexican Government aims to turn the Port of Manzanillo, on Mexico's Pacific Coast, into the busiest port in Latin America. It will be able to process 10 million 20-foot containers (6.1-meter-long) and can handle up to 10,000,000 cargoes. In 2024, it will be the largest port in Mexico and the third-largest in Latin America. It will handle nearly 4 million 20 foot...

The maritime consultancy Drewry stated on Thursday that they expect the global container port volumes to drop by 1% due to U.S. Trade Policies. This would be the third decline in container shipping demand globally since London-based Drewry started recording this data in 1979. Container volumes dropped 8.4% in 2009 during the global financial crises and 0.9% when the COVID Pandemic was declared in 2020. The new Trump policy includes tariffs blanket of 10% on most goods and 145% on those from China. China and other countries have retaliated with tariffs against U.S. products. The consultancy stated in a presentation...

The shares of railroad operator Union Pacific fell 3.5% on Thursday in premarket trading after missing Wall Street expectations for the first-quarter revenue and profit. This was due to weak automotive shipments as well as a lower fuel surcharge. Omaha, Nebraska based company stated that its volumes were being pressured by economic insecurity and a weaker demand for coal. Union Pacific is struggling with a lower demand for coal as customers switch to natural gas, which is cheaper. This trend is expected change, however, after U.S. president Donald Trump signed an executive order last month to increase coal production. Norfolk...

Trading documents revealed that Venezuela will export a new medium blend of crude oil this month. This is part of a strategy to prevent a collapse in its revenue-generating sales of oil once the licenses of the U.S. sanctioned OPEC members expire next month. Washington revoked a few licenses in March that it had issued in the past to partners and customers of Venezuelan state company PDVSA for cargoes of Venezuelan oil bound for Spain Italy India and the U.S. The U.S. Treasury Department has given the companies until May 27, to complete their operations in Venezuela and ship all...

The U.S. Supreme Court refused on Monday to hear the freight rail giant CSX’s bid to revive an antitrust suit accusing Norfolk Southern of restricting illegally access to a major East Coast terminal in Virginia. CSX lost hundreds of millions in profits. The Justices rejected an appeal from CSX against a ruling by a lower court last year that said the Jacksonville, Florida based company had sued too late and missed a four-year window for bringing claims under U.S. Antitrust Law. CSX argued that the statute of limitation should not apply to its lawsuit. CSX filed a lawsuit against Norfolk...

Malaysia Aviation Group (Malaysia Airlines' parent company) reported on Thursday a net income of 54 million Ringgit ($12.24million) for the 2024 financial period. Malaysia Airlines is still struggling to recover two deadly disasters In 2014, the airline temporarily reduced its capacity by 18% last year after it was You can find out more about it here The Malaysian civil aviation authority found several safety and maintenance problems. Izham Ismail, MAG's managing director, told a press briefing that despite the capacity cuts the passenger traffic remained strong in the premium segment. Both the passengers and the cargo segments had higher load...

CSX, the railroad operator, reported revenue and profit for its first quarter below Wall Street expectations on Wednesday. Gains in intermodal revenue were offset by a drop in coal revenue as well as a fuel surcharge. The demand for coal has been hindered by the switch to natural gas, which is cheaper. However, this trend will change now that President Donald Trump signed an executive order earlier this month to increase coal production. In a press release, CEO Joe Hinrichs stated that "CSX experienced operational challenges at the beginning of the year which contributed to results in the first quarter...

Port of Corpus Christi reported on Wednesday that it had recorded the highest first quarter ever for freight movements through its shipping channel by 2025. This was due to increased oil and LNG shipments. For the first time, the port and its clients moved more than 50 million tonnes of cargo through the Corpus Christi Ship Channel. The Port of Corpus Christi, the third largest port in the United States in terms of total waterborne tons, is strategically located on the western side of the Gulf of Mexico and serves as a major gateway for international and domestic maritime trade....

Three traders reported that the freight rates for ESPO blend crude shipped from Russia's port of Kozmino into China in April fell to their lowest level since mid-January due to increased availability of tankers. The lower rates will mean that Russian exporters spend less money on freight and get more oil for their money. The freight rates for the route are now around $2-3 million per cargo for April loadings, down from $4-5 million in February and March. This is because more non-sanctioned tanks have entered the ESPO marketplace. Calculations based on data from three trading sources revealed that the...

Reports citing four traders indicate that copper inventories at the Shanghai Futures Exchange will continue to fall this week. This would be a continuation of the steep drop, and could trigger a price spike. Traders said that the surge in prices for ShFE copper, an important metal used by China's massive manufacturing sector, would attract more metal into the exchange warehouses. This will make a complete depletion of the stock unlikely. Yangshan copper premium is already tightening up. It is a measure of China's appetite to import copper. On Monday, it was at $93 per ton, its highest level since...

Sri Lanka's energy minister announced on Friday that the country will begin work on plans next month to create an energy hub in collaboration with India and United Arab Emirates. The nation is looking to leverage its strategic position to cement a return from the financial crisis. The three signed the deal during the visit of India's PM Narendra Modi to the island this month. He was the first world leader to visit since Anura Kumara dissanayake became president last September. Dissanayake was elected with promises of stability, after the worst financial crises in decades three year ago caused runaway...

Cofco International, The building is constructing its biggest export port Terminal in the World in Brazil said Tuesday that China's state run food group is hiring dozens of people in South America's farm powerhouse. The move highlights the importance of Brazil for the company in the midst of an escalating trade war between the United States of America and China. This tends to increase sales of agricultural products such as soybeans from South American to Asian nations. Cofco's hiring spree in Brazil also comes as U.S.-headquartered competitors like Archer-Daniels-Midland Co and Cargill cut costs and headcount worldwide. Cofco responded to...

According to an agreement reviewed by, China and Vietnam agreed to begin feasibility studies on two new lines during Chinese President Xi Jinping’s visit to Hanoi last week. Both neighbours have been talking about upgrading two railways built by France more than 100 years ago and developing a third direct connection along their adjacent coast. In response to growing concern over U.S. Tariffs, Xi urged Vietnam Monday to strengthen its supply chains. Components made in China are often assembled before they are exported in the north of Vietnam. To Lam, Vietnam's top leader, said that the construction of three railways...

Bloomberg News, citing sources familiar with the situation, reported that Gianluigi Aponte, an Italian billionaire, is the main investor in a group looking to purchase 43 ports from the conglomerate CK Hutchison. Bloomberg reported that the Terminal Investment Ltd. (TIL) of the Aponte family, which according to their website manages a portfolio of diverse container terminals, will become the sole owner of the ports after the deal has been completed. Two of the ports in Panama would then be controlled by BlackRock Inc. BlackRock Global Infrastructure Partners, a subsidiary of BlackRock, will own 51% and TIL the remainder of the...

The Santos Port Authority in Brazil, which manages the largest southern hemisphere port, has said that the port's draft will be deepened in order to attract larger ships in coming years. Beto Mendes (director of port operations) said that the goal is to increase the draft from 16 to 17 meters by 2031. Attracting larger ships would allow Brazil's commercial ties to be strengthened with partners like China, who is currently in a trade conflict with the United States. Mendes stated during a presentation that "we need to be ready." Santos will see an increase in shipping volumes as a...

On Wednesday, U.S. president Donald Trump signed an Executive Order aimed at revitalizing U.S. Shipbuilding and reducing China’s grip on global shipping. For years, Republican and Democratic U.S. legislators have warned of China's increasing dominance in the seas as well as the diminishing U.S. navy readiness. The order instructs the U.S. trade representative to proceed with a plan, which includes charging U.S. docking fees for any ship in a fleet of vessels that are Chinese-built or Chinese flagged. Allies will also be encouraged to follow suit. The Department of Homeland Security is also required to enforce the collection of Harbor...

The Panamanian authorities are auditing a contract that was signed by CK Hutchison, a Hong Kong-based company, and it has stated on Wednesday that the company invested $1.7 billion into two ports near the Panama Canal. This is more than the contract stipulated. Panama Ports Company, in which CK Hutchison holds a 90% stake and has a 25-year concession to operate the Balboa & Cristobal Ports was renewed in 2021. In January, the Panamanian government began an audit of this contract. This could complicate matters. high-profile deal A group led by the U.S. investment company BlackRock has acquired the majority...

Six sources claim that the Trump administration may soften its proposed fee for China-linked vessels visiting U.S. port after receiving a lot of negative feedback. The industries said it could be financially devastating. Six sources familiar with the issue said that the six changes being considered include a delayed implementation as well as new fee structures aimed at reducing the cost of visiting Chinese vessels. Sources asked to remain anonymous due to the sensitive nature of the subject. The White House, and the Office of the U.S. Trade Representative(USTR), the government agency involved in the draft of the proposal, have...

Data from trade sources and calculations show that oil loadings in Russia's western port over the period April 1-15 will fall by 125,000 barrels a day (bpd), compared to the same period last March, to around 1.86 million bpd. Calculations showed that the daily decline in exports and transits of Urals, KEBCO, and Siberian Light grades of oil from Primorsk to Ust-Luga, Novorossiisk and Novorossiisk during the first 15 April days will be 6%. As some refineries are undergoing repairs following drone attacks in March and February, Russia's oil output in April may fall below the March level. This means...

The Panama Comptroller's General Office will sue officials who approved the renewal of a port concession for 25 years to a company headed by CK Hutchison. This is because a major audit of the contract should be finished soon. Panama Ports Company, a company owned by Hong Kong's CK Hutchison, has renewed its contract with the Balboa & Cristobal Ports near the Panama Canal until 2021. Panamanian officials began the audit process in January. In March, a group led U.S. investment company BlackRock announced a deal worth $22.8 billion to purchase the majority of CK Hutchison’s global ports business, including...