Chapter 196 Railway
“What, you also want to get involved in this industry?” Prince Karl Anton asked.
“That’s not true, I mainly want to test the waters in the colony.” Ernst did not hide anything and said directly.
“I’m afraid this matter is a bit difficult to handle!” Prince Karl Anton said without hesitation, “Although I am optimistic about your talent in business, I am afraid that this matter will be difficult for you to make a profit! ”
According to Prince Karl Anton’s idea, if the colony is used to make money, why come here?
"Uncle Carl, when I say test the water, I mean to build it only a short distance away. I don't mean to roll it out on a large scale in East Africa." Ernst said.
"That's not right! If you are just building for fun, there is no need to ask me! You can go directly to a Deutsche Bahn company and they should be able to start construction directly! And I believe that with your No one dares to trick you about your identity," Prince Karl Anton said.
In the view of Prince Carl Anton, Ernst is now a great nobleman and a great capitalist in the German region. This configuration simply creates an invincible golden body.
And Ernst also said that he wanted to test the waters. No open-minded Deutsche Bahn would offend a future prince and business tycoon for such a small benefit.
“Actually, Uncle Carl, I am also greedy for the railway market, but I also know that railways are different from those things I did before.
Railway technology is now very mature and the threshold is very high. The most important thing is that there are many railway companies in Germany. It is definitely thankless to enter directly now.
But I am optimistic about the future development of railways. If there are no opportunities now, it does not mean that there will be no opportunities in the future. The problem is that if there are opportunities in the future, we must be able to seize them, so I want to make arrangements in advance. "Ernst said.
"I probably understand what you mean! You really want to start this business now, but you are not optimistic about the recent market prospects, so you don’t want to enter the market on a large scale. Instead, you want to start a smaller one to accumulate experience and prepare for the future. Is this what you mean? "Prince Carl Anton asked.
"Uncle Carl, this is exactly what I want to express, and I also have a purpose. You also know that I don't have any big business in East Africa. In fact, it is an organization. Immigrants go there to farm, so the commodity transportation in East Africa is mainly grain, timber and other bulk commodities.
These goods are stupid and bulky, but if they cannot be shipped to Europe, they are really losing money. I have made the colonies just hope that this little food and product can make some money.
But the transportation conditions in East Africa are the biggest obstacle to transporting these things. Take the rivers in East Africa as an example, none of them are continuous, and they flow directly from the plateau mountains to the coast, with only a hundred or ten kilometers of navigation conditions.
Water transportation was impassable, so I thought of railways. However, the cost of railways was too high. I had to experiment in East Africa before I could make up my mind to promote it. Ernst said.
After hearing this, Prince Carl Anton thought for a moment and asked: "I have a question. You see, the main industry in East Africa is agriculture, right?" Agriculture is indeed very profitable when the scale is large, but if you transport food from East Africa to Europe, the shipping costs are not small. You also have to face competition in food production from Germany, Hungary, France, and Tsarist Russia. Can you really make money?
And I heard from your father that you have to pay separate costs to introduce immigrants from outside without using the local indigenous people. This is another expense, so where is the profit point of this colony in East Africa? ”
Actually, Prince Karl Anton knows that overseas colonies are very profitable. Otherwise, the British can become the overlord of the ocean with that island?
But as an out-and-out old German Junker, Prince Carl Anton really doesn't know much about the management of overseas colonies.
After all, Austria was the only one in the entire German region that had experience, but later on, the results were obvious, Austria’s attempts failed.
In the past few decades, the European continent has been unstable. First, Napoleon stirred up troubles, then the Crimean War, then Prussia fought twice with Denmark, and finally fought a war with the Austrian Empire.
Everyone’s thoughts are focused on the European continent, and the same is naturally true for the elder statesman Prince Carl Anton. However, Prince Constantine of Hechingen recently went to East Africa to make Prince Carl Anton’s interest in the East African colony. Strong interest. Unfortunately, Constantine had already gone to East Africa, so Prince Karl Anton simply asked Ernst.
"Uncle Carl, the East African colonies are a long-term business. You can't tell whether it's good or bad at the moment. After all, the East African colonies are just scraps that the great powers didn't like. They don't have any particularly outstanding advantages. They are basically pure investment in the early stage, and ordinary people can't play with them at all. < br>
So when I was running the East African colony, I never thought about making a profit, but tried to make him lose less.
Although the food was not profitable, the quantity was large, which was also the case in the East African colony. The advantage of not having much private land is that the land area is large enough.
Although it cannot be sold at a high price, the production cost in East Africa is also low. The land is ready, but it needs to be developed, and we are only responsible for the resettlement. With shipping fees and food and clothing, there is abundant cheap labor.
It is indeed unrealistic to make money in the East African colonies. It is possible in the future, but the overseas risks are also high, so they cancel each other out.
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However, setting up factories in Europe is definitely a profitable business right now, and the profits are high. "Ernst said.
The East African colonies can actually maintain a balance of payments and a slight surplus. After all, East Africa mainly relies on cash crops to make money, and the market in East Africa is not only Europe, but also North Africa and the Middle East. .
It’s not that Ernst was hiding something, it was indeed very risky to develop colonies in this era. Ernst also took advantage of it and chose a good time and place.
“That’s it! It seems that it is not easy to develop overseas. I am just curious, so I asked. "Prince Carl Anton said.
"Uncle Carl, there are actually good places overseas, but those places have long been divided up by those maritime countries. ”said Ernst.
"Okay, let's not talk about this anymore! Let's continue talking about the railway! If you have any plans, just tell me directly and don't make all the twists and turns with me." Prince Karl Anton said.
"Uncle Carl, in that case, let me tell you frankly. I actually want to directly acquire a railway company. The scale does not need to be too large, but I must have construction experience. But after all, I am not a person in that circle. I don't know much about it. I know what’s going on here, so I came to you to find out what’s going on,” Ernst said.
The railways in the German region are developing rapidly, and there are many large and small companies. There are those who are practical, and there are naturally those who talk a lot.
Although Ernst is also a capitalist, he can operate in different fields. If he enters rashly, the other party may not dare to cheat him. Railways are one of the pillar industries of Germany, and the energy of those people is not much weaker than Ernst, and even The relationship with the government is also closer.
In business, the fewer competitors, the better. A businessman with strong financial resources like Ernst will definitely attract attention when he enters the railway field.
And Ernst does not intend to make trouble with these people. To be honest, the fundamental reason why he wants to squeeze into this industry is to accumulate relevant technology and experience for East Africa.
And the railway market is in great shape now, but it will not be like this in the future. When the whole market is in trouble, it will be the right time for Ernst to enter in a big way.
(End of this chapter)