Resource Tycoon Reborn
Chapter 637 Su Family Night Talk (Part 2)
Su Huandong did not continue to talk about this issue, and changed the topic: "This guy Mingyuan is in Brazil now. Someone from Argentina contacted him and put forward a suggestion. Mingyuan thought it was worth trying, so he specially made a call.
Call me back to ask, I want to hear your opinions."
"What suggestions?" Su Aiguo asked as the Su brothers looked at each other.
"The Argentinians want to use agricultural products in exchange for Longxing Construction Group to build and repair the existing railways for them. Mingyuan has learned about the current situation of the Argentine railways and estimates that after the entire project, the Argentine railway network may have one-third to two-half
As soon as there is such a demand. However, the current economic situation in Argentina is not optimistic. Although there is such a huge demand, the finances may not be able to support it." Su Huandong said, "I also asked someone to check Argentina's information today.
Basically it’s in line with what Mingyuan said.”
"Exchange agricultural products for railways?" Su Aiguo blinked and said after a while, "This is a good thing. It can promote our railway system to the world and alleviate our domestic steel surplus." He quickly calculated in his mind the three northeastern provinces.
Are there any companies in the country that can provide various materials to Longxing Construction Group? Although Liao Iron and Steel Group Company can also produce rails itself, building a railway is a quite complex project.
"What kind of railway do they need?" Su Aimin hesitated and said, "If I remember correctly, only a very small part of Argentina's current railway network is electrified railway." As the deputy minister of agriculture, he once
I have been to South America to inspect the local agricultural conditions, and I have some general knowledge of several countries in South America.
"Yes, although there are more than 30,000 kilometers of railways in Argentina, electrified railways only account for a relatively small part of them, and most of them are old-fashioned railways." Su Huandong nodded slightly, with a smile on his lips.
"So Mingyuan mentioned whether Argentina plans to still use old-style railways or transform them into electrified railways?" Su Aiguo frowned and asked, "The investment is very different. Dad, why do Argentines want Longxing Construction Group?
To be responsible for this project?"
"Hey, the quality of Longxing Construction Group's projects was in the spotlight this time during the May 28th Incident, and other companies may not accept their use of agricultural products to deduct construction costs." Su Huandong said, "These Argentinians, on the other hand, are
They are also good at picking people." The Su brothers immediately understood that the Fang family's companies were not only the Longxing Construction Group, but also the Carrefour Group, the third largest chain store in the world, and the Carrefour Group is now not only in
There are many stores in the country, and there are also many stores in many overseas countries. There are also many various food processing plants under the Carrefour Group. Although Argentina has a lot of agricultural products, they can be fully digested.
"And I took a look and found that not only Argentina now has a need for railway upgrading, but Brazil also has such a need." Su Huandong casually took out a piece of information and threw it to the Su brothers and said, "Take a look."
The Su brothers gathered together to read it. This was a medium-term plan to "prioritize investment in railway transportation infrastructure" proposed by the Brazilian government in 2007. Brazil's land area is larger than that of Argentina, with 800
With an area of more than 500,000 square kilometers, it is not much different even compared to the United States. However, its railway mileage is less than 30,000 kilometers, which is roughly the same as Japan's railway mileage and one-fourth of the United States' railway mileage.
?
The main force of transportation in Brazil is the road network, which accounts for more than 60% of the total cargo transportation. However, Brazil's road network is in dilapidated condition, and nearly 80% of the roads are in need of repair. It can be said that Brazil's economy
The development has been seriously hindered by the transportation link. In order to solve this problem, the Brazilian government has formulated a mid-term plan to "Prioritize Development of Railway Transport Infrastructure Investment" and plans to repair and upgrade the existing railway network structure. It is expected to invest in a railway network within five years.
Twelve billion reais.
"How much is 12 billion reais?" Su Aimin asked Su Aiguo softly, "I remember that the real is depreciating sharply now."
"Roughly two reals are equal to one dollar, that's the current situation." Su Huandong said.
"That means that even if the real exchange rate stabilizes, there will only be an investment of 1.2 billion U.S. dollars a year?" Su Aimin said in surprise, "Not even 10 billion Chinese dollars!"
"What? You still dislike the fact that steamed buns have no meat? It would be nice to have steamed buns in the past two years to keep you from going hungry!" Su Huandong scolded with a smile. Since there is no plan to launch a large-scale economic stimulus policy, on the one hand, tax cuts will help companies tide over the difficulties.
On the other hand, we need to help companies find markets.
"You mean... we are also trying to promote the exchange of agricultural products for railways in Brazil?" Su Aiguo asked.
"Yes, the problem of domestic overcapacity needs to be solved purely by ourselves. If it is too slow, it will easily cause social instability. If we can export this excess production capacity, it will naturally reduce our pressure. And these
The country is now facing an economic downturn and may be seriously affected by the global economic crisis. It is also a major producer of agricultural products. If agricultural products can be used in exchange for upgrading the domestic railway network, they would be more interested." Su Huandong said with a smile.
.
The Su brothers nodded in unison. Once the global economic crisis breaks out, the export of agricultural products from Brazil and Argentina will definitely be affected. Both countries are large agricultural countries. If a large amount of agricultural products cannot be sold in time, they will be stored.
It requires a lot of capital investment, and secondly, the quality of agricultural products will deteriorate if they are stored for a long time, affecting sales. If these agricultural products that are likely to be unsold can be replaced by the upgrading of the domestic railway network, for both countries,
Of course it's worth it.
"But this will cause some problems. The main place of consumption of these agricultural products can only be the mainland market, and the influx of a large amount of agricultural products into the domestic market will inevitably impact the domestic agricultural production. I want to know now, how can we
Let the domestic market smoothly accommodate and absorb these overseas agricultural products without causing a strong impact on the domestic agricultural product market!" Su Huandong looked at Su Aimin and said, "You are from the Ministry of Agriculture, so you must have a clear understanding of this. Return to the Ministry
Here, do a survey for me, remember, keep a low profile and a low profile!"
"I understand!" Su Aimin nodded solemnly. He was also very clear about the stakes. The prices in the domestic grain market have been relatively stable in recent years, but the prices of products such as fertilizers, seeds, and pesticides have varied.
With a relatively large increase, farmers' income growth has slowed down. If the country continues to import a large amount of agricultural products from Brazil and Argentina, the prices of agricultural products from the two countries, even including tariffs and freight, will be lower than domestic food prices.
Knowing that the government intends to expand food imports but does not compensate farmers accordingly, something is going to happen!
"Patriot, Mingyuan also told me that if the business with Argentina can be successful, Longxing Construction Group will try its best to favor companies from the three northeastern provinces when purchasing equipment, but the premise is that these companies must produce qualified products.
Come on. If you can't meet the standards, then there is no room for discussion." Su Huandong turned his eyes to the eldest son again and said.
"I understand!" Su Aiguo couldn't suppress the joy in his heart. Although this project in Argentina may not be large-scale, there is no room for choice in the three northeastern provinces today. No matter how small the mosquito is, it is still meat!
"But for such a big project, even Longxing Construction Group, the Argentine government and the Brazilian government may not easily agree to undertake it, not to mention how many hungry wolves are staring at the two pieces of fat and salivating.
So, we must give strong support to Mingyuan!" Su Huandong said, "In particular, we must not let our own people hold Mingyuan back."
Fang Mingyuan didn't know that the phone call he made to Su Huandong also contributed to a night talk at the Su family. He just felt that if there was a surplus of domestic steel products and they were introduced to the international market, they would face anti-dumping accusations from other countries' governments, and Argentina had been accused of anti-dumping for many years.
They are all important countries in anti-dumping against China, but if they are used as supporting import facilities for railway network repair projects, then the reason for the Argentine obstruction is invalid. Moreover, if this model can be implemented smoothly, it can also be used to
It is promoted in many countries in Latin America and even Africa.
Fang Mingyuan later collected some information about the construction of domestic railway networks in Argentina and Brazil. It turns out that the governments of both countries are making loud noises but not raining. The construction and renovation plans have been launched early, but very few have actually started to implement them.
Nowadays, with the subprime mortgage crisis becoming more and more influential, it is difficult for the two governments to maintain domestic financial and social stability, and it is even more impossible to spend large sums of money to promote railway construction. Although they can turn on the money printing press.
Printing money has serious consequences that the ruling parties of the two countries have to carefully consider. Therefore, although there are many companies from various countries that want to enter the railway engineering market of the two countries, few have actually won it.
The contract was signed. This gave Fang Mingyuan greater confidence in winning this project. Although the barter transaction model is very backward, it can still play an unexpected role in some specific periods. Now the most critical thing
In fact, how can the country allow this batch of agricultural products to enter the country without having a strong impact on the domestic agricultural product market? He does not want to find a new export direction for the excess production capacity of steel companies, but hit the domestic agricultural product market.
.(To be continued.) 8
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