{"id":81056,"date":"2024-09-17T00:00:00","date_gmt":"2024-09-17T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/09\/17\/today-omans-diba-lima-khasab-road-project-gets-a-financing-boost-more-omani-lng-pegged-for-export\/"},"modified":"2024-09-17T00:00:00","modified_gmt":"2024-09-17T00:00:00","slug":"today-omans-diba-lima-khasab-road-project-gets-a-financing-boost-more-omani-lng-pegged-for-export","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/09\/17\/today-omans-diba-lima-khasab-road-project-gets-a-financing-boost-more-omani-lng-pegged-for-export\/","title":{"rendered":"TODAY: Oman\u2019s Diba-Lima-Khasab road project gets a financing boost + More Omani LNG pegged for export"},"content":{"rendered":"

Good morning, folks. <\/strong>It\u2019s a busy news day for Oman with road project financing and LNG exports lined up for the sultanate. We also have the latest on that high-delegation meeting between Egypt and Saudi, along with the most recent developments from the Boeing strike\u2026<\/p>\n

<\/a>THE BIG STORY ABROAD- <\/strong>Boeing strike continues as company considers furloughs:<\/strong> Boeing is implementing a hiring freeze and considering furloughs as the aviation giant scrambles to cut costs as a 30k strong strike enters its fifth day. \"This strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future,\" CFO Brian West told employees in a letter on Monday. Boeing will also stop issuing supplier purchase orders for the company\u2019s 737, 767 and 777 programs in a bid to contain the fallout as it scrambles to preserve the company\u2019s credit rating. The last Boeing strike in 2008 cost the company USD 1.2 bn<\/a>, and this strike could prove to be as costly if it continues for months.<\/p>\n

Talks are set to resume today:<\/strong> Union leaders are set to meet today with federal mediators and Boeing to resume talks over a labor contract, with workers pushing for an improved wage offer from Boeing and the reinstatement of a defined-benefit pension eliminated 10 years ago.<\/p>\n

ICYMI- <\/strong>Over 30k Boeing workers at the company\u2019s US West Coast factory went on strike on Friday<\/a> after rejecting a contract proposal demanding higher wages. \u201cI can go for six weeks, eight weeks, but it's up to Boeing management to decide when they want to offer a fair deal,\u201d engineer in the 737 MAX factory Thinh Tan was quoted as saying by Reuters.<\/p>\n

The story continues to get coverage in the int\u2019l press: <\/strong>Reuters<\/a> | Bloomberg<\/a> | Financial Times<\/a> | CNN<\/a> | BBC<\/a> | The Guardian<\/a> | CNBC<\/a> <\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a>#1- A successful Egypt-Saudi meeting:<\/strong> Saudi Crown Prince Mohammed bin Salman said he has directed Saudi\u2019s Public Investment Fund (PIF) to direct USD 5 bn in investments into Egypt as part of the \u201cfirst phase\u201d of a larger program of investment, according to a cabinet statement<\/a>. A timeline of when we can expect to see the funds or what areas they will target were not disclosed.<\/p>\n

ICYMI-<\/strong> Egyptian Prime Minister Moustafa Madbouly touched down in Riyadh<\/a> on Sunday alongside Egypt\u2019s Finance Minister Ahmed Kouchouk and Egypt\u2019s Investment Minister Hassan El Khatib for talks with their Saudi counterparts aimed at strengthening trade and investment between the two countries.<\/p>\n

Issues are being ironed out: <\/strong>Madbouly reported the majority of approximately 90 problems identified by Saudi investors have already been sorted out<\/a>. The 14 remaining issues will be solved by the end of the year, he added.<\/p>\n

A bilateral investment agreement is incoming: <\/strong>The Agreement on Promotion and Mutual Protection of Investments between the two countries, which aims to help protect Saudi investors as Egypt looks to double their investments in the country, will be put into effect in two months or less after both sides sort out the necessary legislative and regulatory issues.<\/p>\n

#2- Jordan chamber blindsided by EV taxes: <\/strong>Jordan\u2019s Council of Ministers' decision to lower a tax on gasoline vehicles and progressively increase taxes on EVs is \u201cunjustified\u201d, head of the Jordan and Amman Chambers of Commerce Khalil Al-Haj Tawfiq told Al Mamlaka<\/a>. Khalil called it an \u201cunfair decision that will lead to a state of paralysis in the freezone and the automobile sector,\u201d while the council maintains the special tax on EVs remains lower than other hybrid models. EVs priced under JOD 10k will be exempt, the council added. <\/p>\n

<\/a>#3- <\/strong>Daimler Truck<\/strong> to produce new series of eActros Mercedes-Benz trucks:<\/strong> Commercial vehicle manufacturer Daimler Truck<\/a> will start producing a new series of its first fully battery-electric heavy truck eActros 600 using Mercedes-Benz\u2019s assembly line in November, Reuters<\/a> reports. The company did not disclose the purchase price of the battery-electric truck, only that it was x2.5 higher than its diesel powered counterpart. <\/p>\n

The details:<\/strong> The truck has three battery packs<\/a> with a total capacity of c.621 kWh, each at 207 kWh. It will have a range of 500 km on a single battery charge while carrying 22 tons of cargo. Daimler Truck received 2k orders for the eActros 600 after sales began in late 2023. <\/p>\n

Daimler is working in the region: <\/strong>UAE renewables giant Masdar inked an agreement with Daimler to explore supplying liquid green hydrogen to power fuel cell rig trucks in Europe by 2030 back in January<\/a>. The agreement could potentially \u201cenable a significant reduction of CO2-emissions in road freight transport in Europe,\u201d while supporting \u201cthe UAE\u2019s ambition to become a leader in the low-carbon hydrogen market by 2031,\u201d Masdar CEO Mohamed Jameel Al Ramahi said at the time.<\/p>\n

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MARKET WATCH- <\/p>\n

#1- <\/strong>Oil prices continued rising in early morning trading <\/strong>on the back of concern regarding <\/strong>US output and lower crude stockpiles due to Hurricane Francine<\/strong>, Reuters<\/a> reports. Brent crude futures for November rose USD 0.16 to USD 72.91 a barrel, while West Texas Intermediate (WTI) crude futures for October gained USD 0.34 selling at USD 70.43 a barrel.<\/p>\n

UBS adjusts oil price forecast: <\/strong>UBS lowered forecasts for oil prices for 2024 due to a poor global demand outlook driven by a weakening Chinese economy, Reuters<\/a> reports. The bank cut its price view for Brent and West Texas Intermediate (WTI) crude by USD 4 to USD 80 and USD 76 per barrel respectively, and decreased its global demand growth by 0.1 mn barrels per day.<\/p>\n

Not the first to cut forecasts: <\/strong>Opec lowered its forecast for global oil demand growth in 2024 last week<\/a> and trimmed expectations for 2025, marking its second consecutive downward revision. <\/p>\n

#2- <\/strong>Baltic index <\/strong>bounces back slightly: <\/strong>The Baltic Exchange\u2019s dry bulk sea freight index \u2014 which tracks rates for the capesize, panamax, and supramax vessel segments \u2014 rose 0.3% to 1,896 points<\/a> on Monday, snapping a two-day streak of decreases. The capesize index inched up 0.3% to 3,097 points, while the panamax index rose 1% to 1,442 points. The smaller supramax index added one point settling in at 1,265 points.<\/p>\n

DATA POINT- <\/p>\n

Egypt\u2019s wheat imports increased 30% y-o-y in 1H 2024 to USD 2.3 bn<\/strong>, according to data from state statistics agency Capmas. During the same period, the nation\u2019s total imports increased 2.7% to USD 41.8 bn.<\/p>\n

ICYMI:<\/strong> Egypt has been looking into importing wheat<\/a> from Mexico, Zimbabwe, Sweden, and Turkey<\/a> to diversify its sources and its exporter portfolio in 2025 and 2026. Egyptian state grain buyer General Authority for Supply Commodities purchased 280k tons<\/a> of wheat in a tender in August.<\/p>\n

PSA-<\/p>\n

CMA CGM issues new overweight surcharge<\/strong>:<\/strong> French shipping firm CMA CGM has issued a new overweight surcharge (OWS) on dry cargo from the Middle East Gulf and Indian Subcontinent to the South American East Coast until further notice, according to a statement<\/a>. The OWS will be issued at a rate of USD 500 per 20 ft Dry Container.<\/p>\n

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THE FINANCE FORUM- <\/p>\n

We\u2019re a week away from this year\u2019s<\/strong> EnterpriseAM Finance Forum<\/strong>, taking place on Tuesday, 24 September. <\/p>\n

Headlining the EnterpriseAM Finance Forum: <\/strong>We\u2019ll be joined for the first time on stage by a senior government official, who\u2019s joining us to outline a vision for where we\u2019re going as a community and as an economy. The keynote interview will get underway at 9am sharp, and you won\u2019t want to miss our exclusive networking breakfast from 8am.<\/p>\n

Among the topics on the agenda<\/strong>, which you can view here<\/a>:<\/p>\n