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Argentina's Railway Privatization Dreams Face a Long Road Ahead
Argentina, a global food supplier, is planning to boost its grain and mineral exports through privatization, and a modernization program of its railway network. Industry leaders claim that this will reduce freight costs in regions located far from ports by half. The first tender will be for the Belgrano Cargas, which runs the three biggest freight train lines in the country. The initiative, which will be launched in early 2019, could increase production of global commodities like soybeans and corn. It also includes copper and lithium. The project could also help transport sand from Vaca Muerta in Argentina's Southwest. The privatization of the network was part of Javier Milei’s plan to move struggling state-owned companies to private ownership and to attract investment in order to replenish depleted reserves after years of economic crises. LESS FREIGHT BY TRAIN THAN IN 1970 The railway system will face a huge challenge after decades of neglect. The volume of freight transported by train today is less than in 1970, despite the fact that agricultural production has almost doubled during the same time period, said Alejandro Nunez. Three lines, spanning nearly 8,000 km (5,000 miles), transport 7.5 million tonnes of cargo annually. 60% of that is agricultural products and derivatives. On some occasions, the trains are so slow on the dilapidated track that they can easily be hijacked. Derailments occur frequently. Further 11,000 km (6,800 mile) of line will be offered for tender. Currently, these lines are completely out of service. The majority of cargo is transported by road in Argentina. Rail freight accounts for only 5%, which is a tiny fraction compared to the 20% of cargo transported in Brazil or the 40% in the U.S. According to the Foreign Minister Pablo Quirno, improving the railways is vital for the government to achieve its goal of increasing annual exports to $100 billion within seven years. Argentina's total exports for this year are $71.5 billion. Privatization could help reduce the cost of transporting goods to and from the main ports in and around Rosario. According to Gustavo Idigoras of the grain export chamber CIARA CEC, transporting cargo from Salta in northern Argentina to Rosario costs more per ton than shipping it from Rosario directly to Vietnam. It will be expensive to upgrade the rails. Nunez estimated that an investment of $800 million was needed to upgrade infrastructure. Grupo Mexico transportes (GMXT), the company that operates Mexico's biggest rail network as well as several freight lines within the U.S. is a likely bidder, according to a source who has direct knowledge of the situation but declined to give their name. Source: GMXT will invest $3 billion if they win the tender due to the size of the upgrade required. According to local media, an agricultural consortium consisting of Bunge Global Inc., Cargill Inc. and Asociacion de Cooperativas Argentinas, as well as Aceitera General Deheza SA, has expressed interest in bidding. The companies' representatives declined to comment. EXPANDING FRONTIER Alfredo Sese is the technical secretary for the transportation commission of the Rosario Stock Exchange. He believes that lower freight costs can help to expand the agricultural frontier of the northern part of the country. Rosario is more than 300 km away from where at least half of Argentina’s agricultural production occurs. Sese estimates that a ton of goods transported by truck will cost between 7 and 9 cents per km, while rail transport costs less than five cents. A modernized railroad could be more beneficial to farms that are further away. The mining industry in Argentina could also be benefited. Argentina is the No. The country is the world's No. Roberto Cacciola is the president of Argentine Chamber of Mining Companies. He said that "the mining industry requires logistical solutions to allow it supply projects and move its production." (Reporting and additional reporting by Maximilian Heath, writing by Leila Mill, editing by Rosalba Gregorio and David Gregorio; Reporting by Lucila Sgal, Additional reporting by Maximilian Heath, Writing by Leila Mller
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Major Gulf markets decline ahead of Fed meeting
The major stock markets in the Gulf experienced a quiet Monday with little trading, despite expectations of a U.S. Federal Reserve rate cut in this week. After three months of steady growth, U.S. consumer expenditures rose modestly in September. This suggests that the economy lost momentum at the end third quarter due to a lacklustre job market and rising costs of living. The Fed's dovish comments have further fueled expectations for monetary ease. CME's FedWatch shows that markets have priced in an approximate 88% chance for a rate cut of 25 basis points at the Fed meeting this week. The Fed's position has implications for Gulf economies where most currencies are pegged with the U.S. Dollar, making it a stable anchor for regional currency. Saudi Arabia's benchmark index of stocks edged up 0.1%, thanks to a 0.3% increase in Saudi National Bank. The bank is the largest lender by assets. Saudi Aramco, the oil giant, was up 0.4%. The possibility of lower interest rates for Americans, coupled with geopolitical uncertainties that could limit supply from Russia and Venezuela, supported oil prices. Even after the recent recovery, crude prices are still near multi-month lows. This puts pressure on the fiscal accounts of oil-dependent Gulf countries through lower revenues. Dubai's benchmark index of stocks was flat. The index in Abu Dhabi fell 0.1%. Qatar Navigation retreated 1.3%, while the benchmark Qatari fell 0.2%.
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Pegasus, a Turkish airline, signs a 154-million euro deal with Smartwings and Czech Airlines.
Pegasus Airlines, a Turkish airline, announced on Monday that it had agreed to buy Czech Airlines and its subsidiary Smartwings for a total of 154 million Euros ($180 million). The deal is part of an expansion plan. In a KAP statement, Pegasus announced that it had reached an agreement with Prague City Air for the purchase of its stakes in CSA and Smartwings, as well as its subsidiaries. The debts of the two companies were included in the 154 million euro figure. Pegasus stated that the strategic investment would help to expand Pegasus's global reach and strengthen its presence in Europe. Pegasus' shares rose 3% on Monday in Istanbul. Pegasus stated that the completion of the deal depends on obtaining necessary approvals in Czech Republic and in other countries where Smartwings Group is active. The transaction should be completed in 2026. Smartwings is the largest leisure airline in the Czech Republic. It has air operator certificates in Czech Republic and Slovakia as well as Poland, Hungary and Czech Republic. The company offers 80 destinations across 20 countries. Smartwings' and Czech Airlines fleets have 47 aircraft. Smartwings is expected to generate around 1 billion euro in revenue by 2024. Pegasus operates 127 aircraft that fly to 158 destinations across 55 countries.
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Draft shows that the EU will intervene to solve power grid bottlenecks
According to documents seen by the, the European Union is planning to increase efforts to develop cross border energy infrastructure. The aim is to reduce costly bottlenecks and speed up construction of new grids. The EU has invested heavily in renewable energy that is low-cost, but the grid upgrades and expansions have not kept pace. Wind and solar power output are being curtailed in order to prevent overloading of networks, waste electricity, and increase costs for consumers. According to the draft proposal due to be published on Wednesday, to address this issue, the European Commission is developing a centralised EU Plan for cross-border electrical infrastructure, and working with grid operators and businesses to get projects underway. Lack of grid investment is a major factor in Europe's high electricity prices. These are up to three times higher than those in China or the U.S. This is a common complaint among industries who claim that these bills reduce their competitiveness. The draft document stated that "grid development can provide real added value to Europeans and save them money." The document said that investing five billion euro in grids could save eight billion euro on the cost of the entire power system. The draft states that outdated networks are driving up energy bills. If the EU does not act, grid constraints could force the EU to reduce renewable power production by as much as 310 terawatt-hours (TWh) in 2040. Official data shows that EU households consumed 691 terawatt hours (TWh) of electricity in 2023. The second draft of the EU legal proposal revealed that the Commission would propose changing EU laws to allow governments to exempt grid project from environmental impact assessments. This was based on long delays which can cause projects years of delay. Environmental permits would not be required for small-scale storage and renewable energy projects. A spokesperson for the Commission declined to comment. All changes to EU law would need approval from EU legislators and countries. The proposal also reduces the deadlines by which authorities must approve grid permits. This includes a limit of six months for new charging stations for electric vehicles. The move is designed to reduce the long delays experienced in some EU member states.
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German warship manufacturer TKMS warns of a possible fall in profit by 2026
TKMS, a German submarine and frigate manufacturer, gave a muted forecast for the fiscal year 2026. It highlighted its dependence on large orders and payment schedules which can sometimes span several years. The company, spun off in October from its parent Thyssenkrupp, is expecting an adjusted operating profit between 100 and 150 million euros (117 to 175 million dollars) for the fiscal year that ends in September 2026. This compares to 131 million in 2025. In a poll conducted by the company, analysts predicted an operating profit adjusted of 143 millions euros in 2026. TKMS is benefiting from a boom in demand for defense suppliers. This surge has been driven by a shift in U.S. policy, which puts greater pressure on Europe, to strengthen its own defences, against Russia that continues to wage war on Ukraine. The order backlog of TKMS has increased to 18.2 billion Euros at the end September - more that tripling in the last five years. Oliver Burkhard, CEO of TKMS, said that TKMS's business model is long-term and its order backlog robust. We continue to see great future potential." Reporting by Christoph Steitz, Editing by Sumana Nady and Ludwig Burger.
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India's Indigo continues to struggle as travel disruptions cause flight delays
IndiGo shares fell 4.8% Monday. They are on track for their worst session in over a month, and have now lost seven sessions. A staffing crisis caused mass cancellations of flights and travel disruptions. IndiGo, India’s largest airline based on market share, is suffering from its worst operational crisis. A pilot shortage compounded with inadequate planning of new rules for crew working hours led to thousands of cancellations in the last week. This left passengers stranded at airports, and forced the Indian government to step in to stop a sharp rise in air fares. The civil aviation regulator gave the company 24 hours on Sunday to explain its position and avoid regulatory action. SpiceJet shares rose 13.9%. IndiGo's shares fell 9% last week, their biggest weekly decline since June 2022 when an increase in COVID-19 cases impacted air travel demand.
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What are the differences between the militaries of Cambodia and Thailand?
Thailand's military has announced that it launched airstrikes along its disputed border, with Cambodia. Both countries had accused each other of violating a ceasefire mediated by U.S. president Donald Trump. Thailand suspended its de-escalation measure last month after a Thai army soldier was injured in the latest of a series of incidents that involved landmines, which Bangkok claims were laid by Cambodia. Cambodia denies the accusations. Budgets and Ground Personnel In 2024, Cambodia had a defense budget of $1.3billion and 124.300 active military personnel. The Armed Forces were formed in 1993 by merging the former Communist military of Cambodia with two other resistance arms. The largest of these is the Cambodian Army, which has around 75,000 soldiers and more than 200 battle tank, along with 480 pieces artillery. Thailand is classified by the U.S. as a major non NATO ally. It has a well-funded, large military with a budget of $5.73billion in 2024. There are also over 360,000 active members. The Thai army is composed of 245,000 soldiers, including 115,000 conscripts. It also has 400 battle tanks, more than 1,200 armored personnel carriers, and 2,600 artillery guns. The army's fleet includes passenger planes, Black Hawk helicopters (made in the USA) and unmanned aerial vehicle. Air Forces The Cambodian air force is composed of 1,500 personnel and a fleet that includes 10 transport aircrafts and 10 helicopters. The country does not have any fighter aircraft, but it has 16 multi-role rotorcraft including six Soviet Mi-17 helicopters and 10 Chinese Z-9 helicopters. Thailand's air force is one of the most well-equipped and best trained in Southeast Asia. It has an estimated 46,000 people, 112 combat aircraft including 28 F-16s, 11 Swedish Gripen fighters and dozens helicopters. NAVIES The Cambodian Navy has a total of 2,800 personnel including 1,500 naval soldiers, 13 patrol and coastal battle vessels, and one amphibious landcraft. Thailand's Navy is larger than most, with 70,000 members, including marines, naval aviation, coastal defense, and conscripts. The fleet consists of one aircraft carrier and seven frigates. There are also 68 patrol vessels and coastal combat ships. Thai naval forces also include amphibious landing ships that can hold hundreds of soldiers each, as well as 14 smaller landing craft. Thailand's Naval Aviation Division has its own fleet, including UAVs and helicopters. It also has a Marine Corps with 23,000 personnel and dozens of armed combat vehicles. (Compiled by Devjyot Ghoshal, edited by Michael Perry).
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Britain revamps its power grid to eliminate 'zombie projects'
The National Energy System Operator in Britain will give priority to grid connections for the most viable projects of power generation and energy storage as part of a massive overhaul. Britain's goal is to decarbonise the power sector largely by 2030. This will require connecting many more renewable energy plants, such as solar and wind, to the electrical grid. The government also stated that it wanted the country to be a "superpower" in artificial intelligence, which would require grid connections for data centres with high power consumption. The new system replaces the first-come-first-served model that created a line of over 700 gigawatts worth of projects waiting to be connected - more than four times what Britain needs in order to reach its clean energy targets for 2030. Kayte O'Neill said that the changes would reduce grid bottlenecks, by prioritising projects ready to build, and giving certainty as to when and where these projects can be connected. This will unlock billions of dollars in clean energy investments. The new process will allow projects that have planning permissions, land rights, and are aligned with the national energy goals to be connected faster. Approximately 3,000 grid connections were evaluated. 132 GW was identified as being crucial to meeting the Clean Power 2030 government target. A further 151 GW is needed by 2035. NESO announced that 99 GW more projects, including data centres, which require power from the grid will be given priority for connection. It said that more than 300 GW will not be advanced because they have failed to demonstrate readiness, or alignment with the national objectives. Ed Miliband, Britain's energy secretary, said that the government inherited a "broken system" whereby zombie projects were allowed by the government to block grid connections for viable project. NESO stated that the reforms are the result of months of collaboration among NESO and network operators, government officials, industry, Ofgem, and regulators. (Reporting by Susanna Twidale, Editing by Kirby Donovan).
IndiGo's meltdown brings India's airline industry into focus
Air India, SpiceJet and other airlines have come under the spotlight for introducing extra flights in response to a sudden increase in demand after IndiGo, a market leader cancelled flights due to sever crew shortages. This left thousands of passengers stranded.
Here's a look at Indian Airlines by Numbers:
INDIGO
IndiGo, India's largest airline with a market-share of 65% at the end September and a fleet of 417 aircraft.
There are more than 2,200 flights per day connecting 90 domestic and 41 foreign destinations.
AIR INDIA The Air India Group has a combined 302 aircraft fleet, including 115 for its budget airline Air India Express.
Air India is owned by India's Tata Group, and Singapore Airlines. It operates non-stop flights between 39 destinations on five continents.
AKASA AIR
Akasa, a relatively new airline in the Indian market, has a 5% share of the market, making it India’s third largest carrier. The airline has 30 aircraft. It also connects Indian cities with locations in the Middle East, including Jeddah and Riyadh.
SPICEJET
SpiceJet, a low-cost airline with a fleet of 19 operational aircraft at the end of September, had accumulated a 2.5% market share.
The majority of its flights are domestic, but it also flies to international destinations like Bangkok, Dubai, and Phuket.
In recent years, some airlines in India have filed for bankruptcy. This shows the challenges that this sector faces.
KINGFISHER AIRLINES
Kingfisher Airlines, founded by Vijay Mallya a business tycoon, once operated over 330 flights per day with a fleet 66 aircraft that connected 69 destinations both in India and abroad. After its license was suspended, the debt-ridden carrier ceased to operate in 2012.
JET AIRWAYS
Jet Airways, a former major Indian airline that operated a fleet containing 124 aircraft, connected over 65 destinations both in India and around the world, according to their website, was a major Indian carrier. The company suspended its operations in 2019 because of issues with securing crucial funds. Last year, the Supreme Court of India ordered that it be liquidated.
GO FIRST was once a major airline in India that offered budget flights. It operated a fleet consisting of 59 aircraft at the time it declared bankruptcy in May 2023. The airline connected 27 domestic cities and seven international ones, including Dubai and Phuket.
Go First has been ordered to be liquidated in January of this year.
(source: Reuters)