{"id":81126,"date":"2024-09-19T00:00:00","date_gmt":"2024-09-19T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/09\/19\/today-turkey-and-totalenergies-ink-a-10-year-lng-supply-agreement\/"},"modified":"2024-09-19T00:00:00","modified_gmt":"2024-09-19T00:00:00","slug":"today-turkey-and-totalenergies-ink-a-10-year-lng-supply-agreement","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/09\/19\/today-turkey-and-totalenergies-ink-a-10-year-lng-supply-agreement\/","title":{"rendered":"TODAY: Turkey and TotalEnergies ink a 10-year LNG supply agreement"},"content":{"rendered":"

Good morning, friends. <\/strong>We have a bumper issue as the week comes to a close with a lot of ground to cover, from LNG supply agreements to shipping and diplo updates to the latest on Deutsche Bahn\u2019s Schenker sale. Let\u2019s dive right in.<\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/strong><\/a><\/strong>#1- CVC asks Deutsche Bahn to reconsider: <\/strong>Financial investor CVC \u2014 part of a consortium backed by The Abu Dhabi Investment Authority and including Singapore\u2019s GIC \u2014 is urging Deutsche Bahn to reconsider its recent EUR 14.3 bn (USD 16 bn) sale<\/a> of logistics arm Schenker to Denmark's DSV, Reuters<\/a> reports, citing a letter it has seen. <\/p>\n

CVC said it\u2019s willing to discuss an increase in the equity value of its EUR 14 bn (USD 15.6 bn) offer<\/strong>, Bloomberg<\/a> reports, and question the calculations behind the transaction, writing \"... our offer is economically advantageous compared to the DSV offer, which is why we should have been awarded the contract for the acquisition of Schenker,\" according to Reuters.<\/p>\n

Deutsche Bahn isn\u2019t convinced: <\/strong>The company ran a thorough analysis and found the \u201cresult was clear\u201d DSV\u2019s offer was the best economically, Deutsche Bahn said in an emailed statement to Bloomberg.<\/p>\n

What\u2019s next:<\/strong> The agreement to sell to DSV still needs to be approved by Deutsche Bahn\u2019s board at a meeting on 27 September<\/p>\n

REMEMBER-<\/strong> The consortium vying for DB Schenker have reportedly sweetened the bid<\/a> last week with the addition of a EUR 1 bn guarantee to the German government in the event of an IPO, should the government stay on as an investor. <\/p>\n

<\/a>#1- <\/strong>Egypt draws up new investment and trade framework:<\/strong> The Egyptian Investment Ministry plans to launch a new investment and trade policy vision for 2024-2030 prioritizing manufacturing and strengthening exports, according to a statement<\/a>. The ministry is also working with the General Organization for Export and Import Control (GOEIC) to streamline trade and remove export barriers. <\/p>\n

IN OTHER EGYPT NEWS- Ferrum Egypt is drumming up financing for a silo factory:<\/strong> Ferrum Egypt<\/a> is in talks with Commercial International Bank, Banque Misr, the National Bank of Egypt, and First Abu Dhabi Bank to secure an EGP 1.8 bn loan to help fund its EGP 2.3 bn silo factory in East Port Said, Al Borsa<\/a> reports.<\/p>\n

Signoff still needed on advance purchasing agreement: <\/strong>Sources speaking to Al Borsa added that the cabinet is being asked to sign off on an advance purchase agreement that will see the Supply Ministry purchase 1.4 mn tons of storage space prior to completing bank financing procedures and beginning work on the site.<\/p>\n

Background:<\/strong> Ferrum Egypt and East Port Said Development signed the land allocation agreement for the silo design and manufacturing factory back in May<\/a>. The factory aims to produce for the domestic market during its first three years of operation, before moving to export silos to European and African markets thereafter, according to Al Borsa.<\/p>\n

<\/a>#2- <\/strong>Trafigura signs financing agreement to boost UAE exports: <\/strong>Singapore-based commodities company Trafigura has inked a two-year agreement for a USD 150 mn revolving credit facility with Etihad Credit Ins. and multiple UAE-based banks to boost UAE exports, according to a statement<\/a>. The agreement is being implemented in collaboration with Etihad Credit Ins. (ECI), the Abu Dhabi Exports Office, First Abu Dhabi Bank (FAB), and Natixis Corporate and Investment Banking.<\/p>\n

MARKET WATCH- <\/p>\n

#<\/strong>1 Oil prices fell in early morning trading after a larger-than-anticipated interest rate cut <\/strong>from the Fed<\/strong>, Reuters<\/a> reports. Brent crude futures for November dipped USD 0.34 to USD 73.31 a barrel at 00.15 GMT, while West Texas Intermediate (WTI) crude futures for October fell USD 0.42 to USD 70.49 a barrel. The US Federal Reserve voted to lower interest rates<\/a> by half a percentage point in its first rate cut since 2020 yesterday, bringing the benchmark federal funds rate to between 4.75% and 5%. In its statement on the decision, the Fed noted that the decision<\/a> reflects \u201cgreater confidence that inflation is moving sustainably toward 2%.\u201d <\/p>\n

#2 Baltic index dips again:<\/strong> The Baltic Exchange\u2019s dry bulk sea freight index \u2014 which tracks rates for the capesize, panamax, and supramax vessel segments \u2014 lost 0.6% to 1,890 points<\/a> on Wednesday. The capesize index dropped 2.1% to 3,024 points, recording a three-week low point. The panamax index rose nearly 2.5% to 1,502 points, reaching a one-month high. The smaller supramax index gained 4 points to 1,270 points.<\/p>\n

#3- Independent maritime research consultancy Drewry has launched a new Intra-Asia <\/strong>Container Index (IACI) this week<\/strong>, according to a statement<\/a>. The index will track spot container freight rates on 18 large Intra-Asia trade lanes to and from China, 3 North\/East Asian countries (Japan, South Korea and Taiwan), 5 South East Asian countries (Indonesia, Malaysia, Philippines, Thailand and Vietnam) and 2 South\/West Asia countries (India and the United Arab Emirates). Updates will be released every two weeks on Mondays.<\/p>\n

DATA POINT- <\/p>\n

#1- <\/strong>The air cargo market is projected to grow at a 5.80% compound annual growth <\/strong>rate (CAGR) between 2024 and 2031 to reach USD 217.4 bn<\/strong>, up from USD 138.69 bn in 2023, according to a report by global tech group SkyQuest<\/a>. Emerging tech innovations, rising consumer demand, and strategic partnerships are the key drivers of market growth. <\/p>\n

#2- The number of trucks crossing Saudi\u2019s borders through land ports rose 11.9% y-o-y <\/strong>in 1Q 2024 to 962.5k trucks<\/strong>, Aleqtisadiah<\/a> reports, citing data by the Zakat, Tax and Customs Authority. The number of outbound trucks was up 12.7% at 478.7k, while inbound trucks grew 17% at 483.9k. Al Batha (connecting to the UAE) and Al Haditha (connecting to Jordan) land ports accounted for the lion\u2019s share of all crossings, at 353.9k trucks and 115.8k trucks. <\/p>\n

#3- Saudi\u2019s ports saw a 14.6% y-o-y increase in container traffic in 2023,<\/strong> surpassing 5 mn TEUs, with 3.4 mn TEUs in imports and 2.2 mn TEUs in exports, according to the General Authority for Statistics\u2019 (Gastat) Maritime Transports Statistics 2023 report (pdf)<\/a>. Ship traffic was up 33.8% y-o-y at 19k vessels, with King Fahad Industrial Port in Yanbu leading the pack at 6.5k vessels. <\/p>\n

THE FINANCE FORUM- <\/p>\n

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

<\/a> Headlining the EnterpriseAM Finance Forum this year is Investment Minister Hassan El<\/strong> Khatib<\/strong>, 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