{"id":72929,"date":"2023-08-22T00:00:00","date_gmt":"2023-08-22T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2023\/08\/22\/today-brics-summit-kicks-off-egypt-eyes-two-shipping-lines-to-esa-countries\/"},"modified":"2023-08-22T00:00:00","modified_gmt":"2023-08-22T00:00:00","slug":"today-brics-summit-kicks-off-egypt-eyes-two-shipping-lines-to-esa-countries","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2023\/08\/22\/today-brics-summit-kicks-off-egypt-eyes-two-shipping-lines-to-esa-countries\/","title":{"rendered":"TODAY: Brics summit kicks off + Egypt eyes two shipping lines to ESA countries"},"content":{"rendered":"

Good morning, lovely people. <\/strong>It\u2019s a slow newsday as we near the midweek mark, with only a few regional updates worth noting \u2014 though there\u2019s a lot on the global front to dig your teeth into.<\/p>\n

THE BIG LOGISTICS STORY- <\/strong> Turkey could extend its railway by building 133 km of rail to link it to Iraq through the USD 17 bn <\/strong>Development Road Project<\/a><\/strong>. The plans \u2014 which were discussed during General Railway Company Director General Younis Al Kaabi\u2019s visit to Turkey \u2014 are a stepping stone to bilateral agreements set to be inked between the countries soon.<\/p>\n

^^ We have more details on this story and more in the news well, below.<\/p>\n

HAPPENING TODAY- <\/strong><\/p>\n

<\/a> Tropical storm Hilary has caused over 4.5k flight disruptions in the US<\/strong>, mainly for flights headed to or originating from California and nearby states, CNN<\/a> reports. Airports in Las Vegas and San Diego are among the most affected, with Harry Reid International in Las Vegas seeing over 300 flights canceled and San Diego International experiencing cancellations for around 40% of its arriving and departing flights. There have also been some delays at Denver and Phoenix international airports, as the impact of the storm expands. Worsening conditions have prompted California and Nevada\u2019s governors to declare states of emergency due to anticipated intense rainfall and flooding.<\/p>\n

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<\/a> The <\/strong> Brics summit kicks off today: <\/strong>Brics leaders are gathering for their 15th heads of state summit today, tomorrow and Thursday in Johannesburg, South Africa. South African President Cyril Ramaphosa, Chinese President Xi Jinping, Brazil's President Luiz Inacio Lula da Silva, and Indian Prime Minister Narendra Modi are expected to attend, Reuters<\/a> reports, while Putin is expected to take part virtually due to an International Criminal Court arrest warrant issued against him for alleged war crimes in Ukraine. The leaders are expected to discuss the expansion of Brics, the Brics bank, economic cooperation, and relations with non-member states.<\/p>\n

REMEMBER- Many regional states want in on Brics, and this could be their shot: <\/strong>Egypt<\/a>, the UAE, KSA<\/a>, Iran<\/a>, and Algeria<\/a> are all looking to join the alliance. Several countries could be invited into the organization during the summit, the Financial Times<\/a> quotes officials in the know as saying. Each of the five members have come out in support of enlarging the bloc, the most recent of which was South African President Cyril Ramaphosa, who said yesterday<\/a> that a bigger Brics will create \u201ca more balanced world order.\u201d More than 20 countries have formally applied to join the organization, he said.<\/p>\n

Is there a point to expanding membership without Saudi Arabia? <\/strong> The economic significance of adding new member countries to the Brics bloc would largely depend on Saudi Arabia's participation, economist Jim O\u2019Neill, known for coining the BRIC acronym, told Bloomberg<\/a>. Saudi Arabia's potential inclusion would hold substantial importance due to its strong ties with the US and its role as a major global oil producer, O\u2019Neill said, adding that this could also potentially lead to de-dollarization if oil begins to be sold in Brics\u2019 countries\u2019 local currencies. <\/p>\n

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WATCH THIS SPACE #1- <\/strong> Japan is <\/strong> prepping <\/strong> for a meeting of foreign ministers with <\/strong> GCC member states in early September in Saudi Arabia<\/strong>, Japan\u2019s Kyodo news agency<\/a> quotes diplomatic sources as saying. Japan\u2019s Foreign Minister Yoshimasa Hayashi is expected to attend the meeting and possibly visit Jordan and Egypt, sources told Kyodo. This comes amid Japan's efforts to strengthen its relations with the GCC countries to ensure energy supply, as it relies on the six GCC countries for more than 90% of its crude oil, Kyodo writes.<\/p>\n

<\/a> WATCH THIS SPACE #2- Europe is eyeing Iranian gas imports through Turkey: <\/strong>Several European states have engaged in discussions with Iran to import gas via Turkey, semi-official news agency Mehr<\/a> reports, citing Iranian Oil Minister Majid Chegeni. Iran is also in talks to export to Turkey, Oman and Russia, and is working to revive a contract with Pakistan. <\/p>\n

WATCH THIS SPACE #3 <\/strong> - Iran and Brazil plan to launch a direct <\/strong> shipping line <\/strong>between the two countries in the near future, Tasnim news agency<\/a> quotes head of the Trade Promotion Organization of Iran Mehdi Zeyghami as saying. Iran\u2019s first commercial envoy will also be deployed to Brazil soon, Zeyghami said, as the two countries look to bolster trade ties. <\/p>\n

<\/a> WATCH THIS SPACE #4- Egypt eyes two shipping lines to eastern + southern Africa: <\/strong>Egyptian Prime Minister Mostafa Madbouly called on export agencies and chambers of commerce to work on operating two regular shipping lines connecting Egypt with countries in east and south Africa,according to a cabinet statement<\/a>. The agencies and chambers should set up a meeting to coordinate with the transport and trade ministries to decide on the commodities the country can export to African countries, the statement said. <\/p>\n

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MARKET WATCH- <\/strong><\/p>\n

OOCL sees hope in the container shipping market this year, albeit not without uncertainties: <\/strong> The container shipping market is \u201cvery far from being in disaster territory,\u201d shipping giant Orient Overseas Container Line\u2019s (OOCL) said in its latest earnings release<\/a>. Contradictory market signals, however, make future projections harder, the company admits. \u201cThere are some indications that demand is improving and that shipping companies are behaving rationally in the face of fluctuating demand \u2014- all of this is reassuring,\u201d the company said, while adding that inflation, higher interest rates and economic uncertainties all still pose risks to its outlook. OOCL is not the first shipping giant to warn of murky times ahead, with Maersk<\/a> and Hapag-Lloyd<\/a> making similar warnings in recent weeks. <\/p>\n

The company reported an 80% fall in net income to USD 1.13 bn in 1H 2023<\/strong>, with revenues more than halving on a y-o-y basis during the period to reach USD 4.5 mn amid weakened consumer demand and a fall in freight rates, the company said.<\/p>\n

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CHECK OUT OUR AGENDA- <\/strong><\/p>\n

The Enterprise Finance Forum is taking place on 18-19 September at <\/strong> the St. Regis Hotel in Cairo. <\/strong> This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy. <\/p>\n

This is our first two-day event<\/strong>,which should give us plenty of time to dive into the nitty gritty of this industry we love. Our panels will see CEOs, bankers, investors and founders gather to discuss the future and trends shaping banking, finance, fintech and NBFS. <\/p>\n

Our full agenda will be out at month\u2019s end. Among the topics we\u2019ll be discussing: <\/strong><\/p>\n