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China to UK rail link to revolutionize trade
by John Brian Shannon | January 4, 2017
The biggest boon to UK trade in this century has just arrived in London with astonishingly little fanfare.
China, the largest exporter on the planet, has just linked its rail system to the UK as part of its One Belt, One Road initiative to promote global trade.
“China launched its first freight service to the United Kingdom on New Year’s day, according to the China Railway Corporation.
The service runs from the Chinese city of Yiwu, in the country’s eastern Zhejiang province, to Barking in London. The journey lasts for an average of 18 days and more than 12,000 kilometers, according to a Chinese government website.
The route will “revolutionize the way freight is moved from China,” Mike White, director of its U.K.-based arm, Brunel Shipping, told CNBC via telephone.
He explained that freight transport by sea from China to the U.K. can take twice the time of the new rail link. Also, it offers the potential for “huge savings” on existing air routes.” — Justina Crabtree MSNBC
For China, the One Belt, One Road initiative will eventually surpass even Chairman Mao’s Great Leap Forward where 600 million people were lifted out of abject poverty in a herculean effort that lasted 40 years. China’s trade with Europe and the rest of Asia is about to leap forward by one order of magnitude, and every economy the rail line passes through will advance accordingly because of it.
UK – China trade will be revolutionized by China’s One Belt and One Road initiative first unveiled by Chinese leader Xi Jinping in 2013.
For the UK, there’s no excuse good enough (no, not even Brexit!) to miss the opportunity to become a major player in this global rail link. The Prime Minister should drop everything and phone President Xi Jinping to congratulate him on this vision that is EurAsia’s newest and most hope-filled reality.
UK government should purchase advertising rights TODAY on 20% of those rolling billboards
Theresa May should very politely but assertively ask for the rights to purchase advertising on at least 20% of the railcars that travel that rail line in the interests of promoting British tourism, British universities, British products, and to advertise the great development work that The Commonwealth does around the globe.
Let’s get the website URL’s painted on those railcars this month!
We can worry about adding fancy graphics, later.
And when people visit those sites let’s ensure that every language is available on the website, especially the languages that are spoken in the countries those railcars pass through. (Otherwise, what’s the point of advertising?)
Getting the UK Brand out there
Such railcars can be travelling billboards for the UK, with the message painted directly on the sides of rail tankers, boxcars, and other types of railcars. These travelling billboards will be seen by many millions of people every day of the year as they pass through cities, towns, and rural countrysides in 8 countries.
Instead of letting government departments and UK businesses approach China’s Yiwu Timex Industrial Investment Co. (the owner-operators of the rail service) in a piecemeal approach, this is the time for LEADERSHIP by a great Prime Minister!
“President Xi, I’ll take 20% of the boxcar advertising that travel along that route. Alright with you? Wonderful, here’s the money. I have the graphics specs for you now. We’d also like an option for a further 20% of your China-to-UK railcar advert space for our Commonwealth partners. Back to you in a week on that.”
THAT’S how you get things done! THAT’S how you Build a Better Britain!
China – UK trade. Instead of “Exporting is Great” it could just as easily read “Aston Martin cars are Great” or “UK Tourism is Great” or “British Universities are Great” along with the relevant website URL.
Here’s another example of a splashy graphic that could be painted on the sides of China-bound railcars that depart from the UK. Of course, the text on the railcars should be written in every language spoken along the rail route.
UK Tourism – Heritage is Great! And so is advertising on the side of China-bound railcars.
Even the railcar advertising from earlier generations was effective. The following photo shows a railcar that hauled wheat and legumes with 1970’s-era Canadian government advertising painted onto the side of the railcar.
Britain could purchase advertising space to promote British industry and tourism on the side of China to UK railcars. — Image courtesy of Bill Grandin
It’s great to be diplomatic, and it’s great to have G20 meetings — but it’s opportunities like this that can result in virtuous cycles (economic multipliers) that drive an economy forward.
It’s the sort of thing that’s so important you must push yourself into the lineup, instead of being a wallflower and letting every other country get the prime advertising space, first. And we know that’s not the way politicians usually proceed, but as Winston Churchill used to say, “If you can’t get something done yourself, hire the best to get it done for you.”
With the greatest respect Ms. Prime Minister, you don’t need permission from the EU, you don’t need permission from America, you don’t need permission from British MP’s, and you don’t need permission from British business; This must be your top priority everyday until January 20, 2017 when U.S. President-elect Donald Trump is sworn into office.
Boosting Britain’s GDP 5% in three easy steps
by John Brian Shannon | October 18, 2016
Opportunities as big as the sky abound regarding UK exports to developing nations that need everything, and needed it yesterday.
India with 1.5 billion people now and 2.2 billion by 2025, need massive upgrades to their electrical grid. Although India has made great strides in recent years, some 400 million people living in rural areas of the country have never had electricity.
Is Britain ready to export electricity grid expertise and grid components to India’s 400 million citizens who have never had electricity in their homes? Such opportunity with real benefits for both nations!
Filling that need over the next two decades will cost hundreds of billions of dollars (if the Americans do it) but that begs the question Why leave it to the U.S.A. alone?
Such an opportunity represents hundreds of billions pounds sterling if the UK takes on part of that project — with significant opportunities to earn revenue by financing such projects — financing which are likely to be guaranteed via some combination of Indian government bonds, World Bank funding, and IMF loans.
Not only that, of course. India has a growing middle class with real purchasing power that want to purchase quality cars and trucks, housewares, electronics, and just about any product manufactured in the UK.
Further, Indian corporations need access to world class financing and market exposure afforded by the London financial sector, and some of the world’s preeminent legal and architectural firms have an obvious role in helping India to become all that it can and should be.
GCC kingdoms are always searching for evermore high-end warplanes and civilian jetliners, and they are always quick with the money. And, especially nice, no bickering when it comes time to pay the bill.
The GCC has transformed in recent years due to massive expansion in the formerly sleepy fishing villages of Dubai, Abu Dhabi, and Ras Al Khaimah — turning them into thriving financial centres, replete with stunning architecture and residential communities.
In fact, some of the most famous buildings in the world are located in those three cities and were designed by world class architects based in London, engineered by the most advanced engineering firms in the world, along with a host of other services such as project management, financing and property management, many London-based.
In the GCC, it isn’t about whether they have the money, because they sure do. It’s about having a presence and being there to meet opportunities as they arise.
In places like Dubai, major projects are envisioned, mooted, and completed in less than four years. Which is about the amount of time it takes to get just a simple development proposal permit approved in some cities. The message there is; Don’t nap, or you’ll miss it.
Brazil. The country’s formerly strong economy has taken some shocks in recent years. Both economic and political shocks have caused damage to the Brazilian economy, but that also presents many opportunities for investor groups. Huge Brazilian conglomerates that are barely holding together for now could be a real bargain for investors with sterling to spare.
What is great about commodity based economies is that when the price rises, it doesn’t get any sweeter. And when commodity prices are low, it’s almost always a good time to buy stock in those companies, or just buy the whole company.
Sugar from Sugarcane – and Biofuel Made from Sugarcane
Companies like Cosan and Raizen have the advantage of selling their sugarcane in two very different markets.
If the price of sugar is high, then the twice-yearly sugarcane crop gets sold as sugar commodity, or as finished sugar product at the retail level.
But when sugar prices drop, those same corporations simply sell their sugarcane to the huge biofuel market in Brazil, where 92.9% of Brazil’s cars run on a minimum 22% biofuel blend (E20) as mandated by Brazilian law, with many cars burning 100% biofuel (E100) which significantly lowers vehicle emissions and respiratory related healthcare spending across Brazil’s largest cities.
Raízen, the joint biofuel venture between Royal Dutch Shell and Cosan Ltd. is the 3rd-largest energy company in Brazil. Image courtesy of Raízen.
“A life cycle assessment by the Yale School of Forestry on jatropha, one source of potential biofuels, estimated using it could reduce greenhouse gas emissions by up to 85% if former agro-pastoral land is used — or increase emissions by up to 60% if natural woodland is converted to use.
In addition, biofuels do not contain sulfur compounds and thus do not emit sulfur dioxide.” — Wikipedia Aviation Biofuel
Aviation Biofuels
With global aviation accounting for 2% of total anthropogenic (human-caused) CO2 emissions, now is the time for Britain to legislate 50/50 blends of biofuel and conventionally sourced petroleum aviation fuel. Many airlines are already doing exactly that. Notably, the US Navy is doing the same as part of it’s Great Green Fleet programme. Biofuels can also help to moderate jet fuel costs when conventional fuels skyrocket due to wild price swings.
By switching commercial aircraft to 50% biofuel blends, aviation related CO2 emissions would drop by half and respiratory illness healthcare spending would drop by billions.
Summary
What makes these three opportunities so tantalizing are the sheer numbers; India with 2.2 billion consumers by 2025, the GCC nations with their unquenchable thirst for the trappings of a wealthy society, and Brazil for it’s commodities, especially the sugar/biofuel synergy with the opportunity to cut global aviation emissions by half.
With the right vision, the right approach by the British government, and some dedicated effort and follow-up by HM government, it should prove to be a cakewalk to grow the British economy 5% by 2021 (separate from already planned growth) on the strength of those three opportunities alone.
Related Articles:
Read: Sweetening The Biofuel Sector: The History of Sugarcane Ethanol in Brazil
Read: Sugar-Cane Fuel Wins in Brazil as Cheap Ethanol Beats Gasoline
Read: Shell and Cosan invest $1 billion to boost Brazilian biofuels
Brexit: The Trigger for a New Atlantic Alliance
by John Brian Shannon | October 4, 2016
Britain, more than any other Atlantic Ocean nation, would benefit from an Atlantic Alliance free trade zone precisely because it is an island nation, and as such it depends on free trade and movement of goods in order to thrive to it’s full potential.
Since the Roman era Britain has enjoyed a historic presence in the Atlantic Ocean for good reason — island nations need regional trade to survive and international trade to thrive.
For Britain, there is no way forward without enhanced international trade. In principle, islands should always be the strongest proponents of international trade and international law for the very reason that they profoundly need the world to function that way.
Japan set a wonderful example for all island nations in the postwar era, but never moreso since the Arab Oil Embargo of 1973 when U.S. consumers suddenly decided to switch their gas-guzzler cars for lower priced and more fuel efficient Japanese cars.
Not only were millions of cars imported from Japan over the following years, but because the necessary technology to build cars was transferable to home and personal electronics, Japan received a double boost to it’s economy every day since the Arab Oil Embargo.
From one of the worst performing economies in the world in 1946 to it’s peak as the #2 global economy in the 1990’s — the Japanese economic miracle rode its high quality manufacturing base that catered to the needs of billions of consumers. By any standard it remains an impressive accomplishment.
And now it’s Britain’s turn to shine as the world’s next booming economy.
Although much has changed since the oil supply shocks of 1973, the world economy continues to grow, with developing nation consumers seeing comparatively massive increases in their disposable income, presenting a wonderful opportunity for a Britain suddenly freed from an overly bureaucratic political union.
Therefore, let us count the ways that an Atlantic Ocean trading alliance (a free trade zone, that I propose be restricted to nations that front the Atlantic Ocean) could benefit Britain and the other Atlantic nations.
Britain, more than any other Atlantic Ocean nation, would benefit from an Atlantic Alliance free trade zone precisely because it is an island. Atlantic Ocean map. Image courtesy of Geography.name
In the North Atlantic, we have the United States, Canada, Greenland, Iceland, Ireland, the United Kingdom, Norway, France, Spain and Portugal.
In Africa; Morocco, Western Sahara, Mauritania, Senegal, Gambia, Guinea-Bissau, Sierra Leone, Liberia, Côte d’Ivoire, Ghana, Togo, Benin, Nigeria, Cameroon, Equatorial Guinea, São Tomé and Príncipe, Gabon, Central African Republic, Democratic Republic of the Congo, Angola, Namibia, and South Africa, front the Atlantic Ocean.
And in South America, we have the South Atlantic nations of Argentina, Uruguay, and Brazil fronting directly onto the Atlantic Ocean — while French Guiana, Suriname, Guyana, Venezuela, Columbia, Panama, Honduras, Nicaragua, Belize, and Mexico and many island nations reside within the Caribbean Sea — which is of course, easily navigable to the open Atlantic Ocean.
All of these nations should receive a warm invitation to join such a trading block.
It is perhaps the best matchup of nations since the Bretton Woods Agreement of 1944. In the list of Atlantic and Caribbean nations, exist the most developed nations to the least developed, from the most overbuilt tourist locations to vastly underbuilt tourism markets, to the astonishing per capita petroleum and mineral resource base. Such opportunity abounds for those who pursue economic interdependence between Atlantic nations! From the most highly skilled labour to the cheapest labour, and among the highest cost real estate to the cheapest agricultural land in the world, everything that a developed or still developing nation needs can be easily found within this trading area.
The economic opportunities are uncountable, and they are sitting there untapped. At the moment, it’s a criminal waste of opportunity that must rank as a negative for every Atlantic nation whether developed or developing.
The obvious move here is for British Prime Minister Theresa May to voice strong support for an Atlantic free trade zone, contacting representatives of each country to find out what Britain offers, that can mesh with the needs of each Atlantic Alliance trading partner. And vice-versa.
Once some activity generates and some new trade begins to take shape, it would be wise to meet regularly to discuss standardization of regulations, whether shipping or other modes of transportation, financial, tourism, and other ways to work together. Even the baby-steps of working together to protect maritime shipping from at-sea piracy, or to form mutual aid groups designed to streamline hurricane or other natural disaster relief would demonstrate ways that Atlantic nations can work together for mutual benefit.
If the NAFTA model is used as the trading template, some of it’s terms could be adjusted to better suit the preferences of all Atlantic Alliance members, or it could be seen as the eventual goal for all members to reach at some point. At the very least it could be used as a reference point, a place to begin discussions.
By leading such an effort Britain would be well-placed — not to own the Alliance — but to offer it’s expertise and experience, so that the end result is a Win-Win for every nation involved. That is what makes for strong partnerships, and strong partnerships always make economic sense.
Letter to Britain 