Singapore to build Changi’s mega Terminal 5 in 1H 2025

Singapore to break ground on Changi’s T5 mega airport terminal next year: Singapore is set to begin construction of Changi Airport’s new mega Terminal 5 in the first half of 2025 to help boost passenger capacity to 50 mn annually and serve more than 200 destinations, Bloomberg reports, citing statements by Prime Minister Lawrence Wong. Changi Airport, which is the busiest travel hub in Southeast Asia, handled almost 60 mn passengers last year as travel demand picked up. Passenger traffic in 1H 2024 at the airport recovered to reach almost 100% of pre-pandemic levels, Wong said. The expansion plans for Terminal 5 were previously announced over a decade ago, but the project was halted for over two years due to the pandemic.

Other neighbors are copying: Global passenger traffic, which is expected to double by 2042 to almost 20 bn, is driving other cities to expand their handling capacities, according to d ata by Airports Council International. Vietnam is building a new airport near Ho Chi Minh City that is able to accommodate 100 mn passengers, while Hong Kong is allocating more than USD 18 bn to expand its international hub. “Some have announced plans for mega airports that can handle more than 100 million passengers a year,” Wong said. “So they are narrowing the gap with Singapore.”

Europe’s air safety regulator ordered inspections on some Airbus A350-1000 engines as a precautionary measure after an engine caught fire on a Cathay Pacific jet last week, Reuters reported on Friday. "This action is a precautionary measure, based on the information received from the initial investigation of the recent Cathay Pacific serious incident and on the airline’s findings in its own subsequent inspections," the European Union Aviation Safety Agency (EASA) Executive Director Florian Guillermet said. They gave airlines between three and 30 days to carry out visual checks and measurements on the fuel hoses, and called for removal of parts if they were found damaged.

ICYMI- Several Asian Airbus A350 operators said last week that they were carrying out inspections on the aircrafts’ Rolls-Royce engines after Cathay Pacific found that 15 of its planes required fuel line repairs. Rolls-Royce has not issued an official mandate for fleet-wide inspections of the engine type. The problem reportedly surfaced on a Zurich-bound flight several minutes after take-off from Hong Kong, forcing the plane to turn back and land 75 minutes after departure.

Potential US port strike seems likely: The US East Coast ports union — the International Longshoremen's Association (ILA) union — have voiced support for a potential strike on 1 October, CNBC reported on Thursday. The strike could impact some 43% of all

all US imports with bns of USD lost in trade monthly. The US trade deficit in goods and services increased 7.9% to USD 78.8 bn in July 2024, driven by a surge in imports of goods as companies attempt to secure supplies ahead of the news.

What we know: The union and the US Maritime Alliance employer group reached an impasse over the establishment of a new contract, after a two-day meeting of the union’s wage committee concluded in a stalemate. The US Maritime Alliance said they remain committed and prepared to relaunch negotiations with the ILA to develop a new master contract in an effort to avoid a strike.

Russia bumps 2024 oil and gas export revenues: Russia has boosted its forecast for the oil and gas export sales by USD 17.4 bn to reach 239.9 million metric tons, Reuters reported on Friday, citing a document it has seen. Russian crude oil exports are seen increasing from 238.3 mn tons in 2023. The document shows the average price of Russian oil sold for exports rising to USD 70 per barrel, up USD 5 estimates in April. It also showed a revision upwards for natural gas prices sold in Europe and China.

A boost in earnings: A USD 240 bn revenue from oil and gas exports in 2024 means a USD 13 bn increase from last year, according to Reuters. The forecast for 2025 was also raised to USD 236.5 bn from an earlier forecast of USD 226.2 bn.

YET- Russian oil production is seen easing to 521.3 mn tons this year from 529.6 mn tons last year, down 1.7 mn tons from the previous estimate. Oil output forecasts for 2025 were also revised downwards, with production seen inching down to 518.6 mn tons.