search.noResults

search.searching

dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
INDUSTRY REVIEWCIVIL ENGINEERING


Eurasian infrastructure programme, China set up the Asian Infrastructure Investment Bank (AIIB). China’s BRI tentacles have spread to


Africa, too. According to Deloitte, China’s influence on the sector is on the up, with one-third of all large projects awarded to Chinese engineering and construction contractors. Closer to China’s home territory in


Southeast Asia, the BRI has encountered numerous setbacks due to suspended, cancelled or scaled-down transport infrastructure projects in Malaysia, Singapore and Indonesia, where politicians – often newly elected – have said the project debt burdens are too high. Torbjörn Larisch, managing director of


Thailand-based FLS Projects, said China’s financing arrangements are putting off its smaller neighbours in the region. “China will fund projects through BRI


but there are strings attached, potentially exerting pressure and political control over these countries,” Larisch claimed. “Countries in Southeast Asia are getting increasingly critical of the supposedly cheap Chinese money coming in.” There is data to back this up, too, with


financial markets platform Dealogic reporting that Chinese banks dropped out of the top 20 infrastructure lenders in the region during the first-quarter of 2019. One major Southeast Asia transport


project well into its build is the 414 km China-Laos railway. The USD7 billion project is halfway complete, with the railway set to begin operating between Kunming and Vientiane in 2021.


Financing problems Less certain, however, is the next link in the line that will eventually connect Vientiane with Bangkok. According to Larisch, the project has stalled numerous times over financing. “The main point of contention has been


the project funding, because the Chinese want a rather high interest rate for their loans but the Thais are saying they can finance it domestically for a much cheaper price.” Indeed, Thailand appears to be in a better


position than its Association of South East Asian Nations (ASEAN) counterparts when it comes to financing projects, wi th Larisch highlighting the country’s strong banking system and high foreign currency reserves. Furthermore, he believes the country’s


recent election – which is expected to see the military government hold on to power – will provide much needed political stability and boost investor confidence.


106 May/June 2019


We have been informed the USA is starting up a new financing tool in direct competition to the old structures under the Overseas Private Investment Corporation.


– Ole Schmidt, DSV “The government has a 20-year national


development plan with a strong focus on infrastructure,” he explained. “And because of the geographic location, it will be a hub for transport infrastructure development in the region. There is a lot of emphasis on connectivity with other countries in the Mekong region – Cambodia, Laos, and especially Myanmar.” One major project on firmer ground


following the election is the military government’s favoured USD43 billion Eastern Economic Corridor (ECC). Scheduled for completion by 2021, the ambitious ECC project is designed to transform three of the country’s under-developed eastern provinces into major economic hubs, complete with new transport connections and industrial zones for heavy and light industries, as well as new cities, tourism, and innovation hubs. “They are t alking very serious money in


terms of infrastructure development – airports, roads and high-speed rail, it could be a real boom for Thailand,” added Larisch, noting that while domestic fabrication capabilities are strong, there will still be a need for plenty of heavy cargo imports. “The government is trying to bring certain


technologies to Thailand for these big projects. With the railways, for example, they are talking to companies like Siemens to move production of railcars and locomotives


to Thailand due to the numbers required. “But for now all this equipment is still


being imported so there is definitely going to be huge growth potential for all logistics companies in Thailand for that.” There is less civil infrastructure


development happening elsewhere in Southeast Asia, Larisch noted. He said many projects in Myanmar, for example, have struggled to get off the ground, despite the initial hype and enthusiasm ever since the country’s political reform and subsequent “opening up” of its economy to the world. Vietnam, on the other hand, is much


further ahead. Last year saw the export-led economy surge into the fastest growing economy in ASEAN with over 7 percent growth and record levels of exports and FDI. However, warning signs have emerged with the slow pace of infrastructure development potentially dragging down faster growth. Ho Chi Minh City’s only international airport, for example, is bursting at the seams, while the congested city’s first metro line is woefully delayed due to mismanaged financing and delays in paying the Japanese engineering and construction firm.


Australian focus For FLS Projects, only around a fifth of the forwarder’s Southeast Asia business is focused on civil infrastructure. However, the firm is much more active in Australia, where there is high demand for heavy cargoes built and shipped from ASEAN countries. “There is a lot of infrastructure work


going on now in Australia because the government is trying to offset the sluggish mining industry,” said Larisch. “And with all the immigration in Australia


there is a huge strain on the infrastructure, so they are massively trying to improve roads, railways, airports and seaports.” Released in April, the government’s


federal budget earmarked USD100 billion in infrastructure spending over the next decade, with new roads and railway upgrades dominating the agenda. According to Larisch, Australia’s free


trade agreement with ASEAN makes exporting project cargo and heavy equipment into the country more cost effective than domestic production. “There is not much manufacturing


capability any more in Australia, especially when comes to big steel fabrication. And because of its sheer size and domestic shipping costs, the logistics costs of bringing equipment from Asia is often cheaper than moving it domestically.”


HLPFI www.heavyliftpfi.com


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166