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MBS Blog » 2008 » November » 28
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Archive for November 28th, 2008

Building for the Future

Friday, November 28th, 2008

You have to admire the Chinese.  As the article below from “The Shanghai Daily” (www.shanghaidaily.com)  notes: where some see crisis…others see opportunity. The Chinese obviously do. Perhaps it is natural in a 5,000 year old civilization to take the long view? Building skyscrapers during a recession sounds illogical to some-those who must find tenants to occupy the space for example- but it does reflect confidence in the future, as well as inspire it. 

There was a time when Americans had this perspective. During the darkest days of the Great Depression in the 1930s, some of the greatest and tallest structures in America were built, including the Hoover Dam and the iconic Empire State Building. You would think that this spirit would be present in the midst of the current economic situation, but sadly it has not appeared yet.

Interestingly, a few of my Chinese friends told me after September 11th, 2001 that if America did not re-build the World Trade Center, higher and better than before, then that would portend America’s decline.

Defying the downturn, city builds even higher

WHERE some see crisis, others see opportunity.

Three months after opening the world’s second-tallest skyscraper, Shanghai is about to start construction of an even taller building - in the face of an economic slowdown and falling property prices.

Construction on the 632-meter Shanghai Tower, expected to cost 14.8 billion yuan (US$2.17 billion), will begin in Pudong’s Lujiazui financial district tomorrow, developers said yesterday.

Gu Jianping, general manager of Shanghai Tower Construction and Development Co, said that by starting work in an economic downturn, construction materials would be cheaper. He also predicted that by the time the 121-floor, glass-and-steel tower is opened, China’s economy is likely to be soaring again.

“Launching construction at this time will help boost Shanghai’s confidence in fighting the financial crisis,” he told a news conference.

The tower, which will comprise offices, retail space, a super-five-star hotel and cultural facilities, will be part of a triangle of tall buildings. The recently opened World Financial Center, at 492 meters, is now the world’s second-tallest building. Its neighbor, the Jin Mao Tower, rises 420.5 meters above the Shanghai skyline.

The new skyscraper will surpass the height of the 501-meter-high Taipei 101 in Taiwan, but the world’s-tallest title will go to the Burj Dubai, now under construction in the United Arab Emirates. The Burj is expected to be roughly 800 meters tall, though its exact height has been kept secret.

The Shanghai Tower is scheduled to open partially in 2012 when the top floor is finished and go into full operation two years later. 

The tower’s pinnacle will feature the world’s highest non-enclosed observation deck. And the building’s high-tech office space is expected to help boost Shanghai’s financial industry.

WHERE some see crisis, others see opportunity.

Three months after opening the world’s second-tallest skyscraper, Shanghai is about to start construction of an even taller building - in the face of an economic slowdown and falling property prices.

Construction on the 632-meter Shanghai Tower, expected to cost 14.8 billion yuan (US$2.17 billion), will begin in Pudong’s Lujiazui financial district tomorrow, developers said yesterday.

Gu Jianping, general manager of Shanghai Tower Construction and Development Co, said that by starting work in an economic downturn, construction materials would be cheaper. He also predicted that by the time the 121-floor, glass-and-steel tower is opened, China’s economy is likely to be soaring again.

“Launching construction at this time will help boost Shanghai’s confidence in fighting the financial crisis,” he told a news conference.

The tower, which will comprise offices, retail space, a super-five-star hotel and cultural facilities, will be part of a triangle of tall buildings. The recently opened World Financial Center, at 492 meters, is now the world’s second-tallest building. Its neighbor, the Jin Mao Tower, rises 420.5 meters above the Shanghai skyline.

The new skyscraper will surpass the height of the 501-meter-high Taipei 101 in Taiwan, but the world’s-tallest title will go to the Burj Dubai, now under construction in the United Arab Emirates. The Burj is expected to be roughly 800 meters tall, though its exact height has been kept secret.

The Shanghai Tower is scheduled to open partially in 2012 when the top floor is finished and go into full operation two years later. 

The tower’s pinnacle will feature the world’s highest non-enclosed observation deck. And the building’s high-tech office space is expected to help boost Shanghai’s financial industry.

Anton Olff

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Hold the Imports!!

Friday, November 28th, 2008

Spoke with a good friend a few days ago whom is a customs broker here in Odessa.  She stated that business overall has declined precipitously over the last several months. She emphasized that container traffic at the busiest port of Ukraine has slowed to a trickle. This is borne out by anecdotes of others we have contacted whom are connected with trade and logistics services. 

Here is a story from www.kommersant.com regarding wine imports and Russia.  It is a fair indication of the reduction of trade worldwide. 

Import Wine Piled Up at Customs Warehouses

“The global financial turmoil has broken up preparation for New Year festivities. Thousands of unpaid bottles are still at the customs terminals, while the supplies shed 2.5 fold to 3 fold on year in October and November. But the analysts foresee no shortage, as the demand for alcohol is going down as well. 

The importers don’t take wine from the customs storage facilities, confirmed Artur Baranovsky, who is the director of DNT terminal in Latvia that annually handles over 1,000 vans with wine imported to Russia. Each van carries 16,000 bottles. His words echoed Alexander Arbuzov, head of the Moscow terminal in Solntsevo that services wine supplies from CIS.

Baranovsky said the usual practice is that the terminal’s handling surges 2.5 fold to 3 fold in October and November on supplies timed to New Year festivities. This year, however, the turnover matches the summer indicators, which traditionally suffer from the import decline. 

According to Federal Customs Service, some 207 million liters of wine were delivered to Russia in January through October. Russia produced 430 million liters over the period, according to official statistics. Even the cheapest import wine costs 1.5 fold to 2 fold more than the wine of local make, so the market shares are relatively equal in terms of money. 

The wine imports shed to 20.4 million liters in October from 21.3 million liters in September, showed the data of Federal Customs Service. But the trend was quite the opposite past year, when the supplies grew by October, up to to 20.1 million liters vs the 18.8 million liters imported in September. 

Nowadays, however, even big importers slashed the supplies by 1.5 fold to 2.5 fold. The imports of Moro, for instance, lowered from 2.9 million liters to 2.5 million liters. What’s more, the importers not only tend to order fewer new brands but they even return the already paid ones, abandoning the planned future supplies”

Anton Olff

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