Chapter 415 Only HK$100 million is needed
In the 1970s, the shipping market entered a long period of recession and malaise. Although there were brief rebounds and recoveries during this period, the recession trend did not substantially ease.
Freight rates are basically below transportation costs. Oil tankers are idle with more than 10 million deadweight tons. Second-hand ship transactions have seen both volume and price fall. For example, the price of a 200,000-ton oil tanker built in 1970 was about 52 million in 1973. US dollars, but fell to US$5 million by 1977, a drop of 90% in less than 4 years.
Today, a 200,000-ton cruise ship built in 1970 can be purchased for only US$4 million!
When Sioux City chatted with the charter king before, the charter king was even willing to sell some ships at a price lower than the market price. For example, the market price of a 200,000-ton oil tanker was US$4 million. Global Shipping Group Even if it’s $3 million, I’m willing to sell it.
3 million US dollars, how low is it?
Currently, the exchange rate between US dollars and Hong Kong dollars is around 1 to 4.9. In other words, it only takes 14.7 million Hong Kong dollars to buy a 200,000-ton second-hand oil tanker produced eight years ago.
When purchasing a new ship, it will cost at least more than 100 million Hong Kong dollars before a shipbuilding ship can build you a 200,000-ton oil tanker.
Therefore, it is really cheap and cost-effective to buy second-hand oil tankers now.
Whether it is a VLCC ultra-large tanker or a 10,000-ton container ship, Sioux City plans to have it.
This is a good opportunity to capture these ships at low cost.
“For your own use, you don’t need to buy many tankers. Just buy a few 50,000-ton oil tankers, a few 100,000-ton oil tankers, and a 200,000-ton oil tanker, which is basically enough for Tianwen Oil Company. Okay, based on this calculation, less than 50 million Hong Kong dollars is more than enough.
As for second-hand aircraft, we only need to buy a few second-hand large ocean-going aircraft for the time being. It will only cost 20 to 30 million at most. Hong Kong dollars.
The rest is to recruit talents, build logistics parks, etc.
So, the starting capital of 100 million Hong Kong dollars is more than enough," Li Yihui said with a smile. >
Li Yihui obviously knew the situation of the second-hand market better than Su Cheng, so he smiled and calculated it for Su Cheng.
He also knows that the current shipping industry is not prosperous, so there is no need to spend too much money. The most important thing now is to have enough for the industries under Su City.
As for the development of external business, there is no need to be so anxious. At least once the own business is stabilized, the external business will naturally start to develop.
“Well, that’s true. When a logistics company is established, relying solely on its own internal business will be enough for the shipping company to be very nourished. It does not need to invest too much money. When the logistics company develops in the future, , naturally we can make money, and then we can just continue to invest the money we earn in development." Su Cheng thought for a while and nodded.
Li Yihui shook his head in his heart, feeling a little envious.
100 million Hong Kong dollars is a lot. There are many companies on the Hong Kong stock market alone that can reach hundreds of millions of Hong Kong dollars in market capitalization. However, in Su Cheng's eyes, 100 million Hong Kong dollars is nothing more than a small amount.
But think about it, I am now working for the richest man in the world, and I am also one of his important generals. I have a bright future.
Thinking of this, Li Yihui felt better.
“I suggest that Daniel Harry’s Dali Logistics Company be acquired. Although his current company is on the verge of bankruptcy and still owes millions of Hong Kong dollars in foreign debt, Dali Logistics Company has developed very well. , starting from the foundation of Dali Logistics Company, it can be much smoother. The cost of acquiring Dali Logistics Company is not high, and we only need to bear the millions of foreign debts," Li Yihui suggested.
“It’s up to you to decide this matter.” Su Cheng said nonchalantly.
He doesn't care about hundreds of millions of Hong Kong dollars, let alone millions of Hong Kong dollars. Moreover, Su Cheng feels that if this acquisition allows Mr. Daniel Harry to no longer be affected by foreign debt and can develop his logistics company wholeheartedly, then this million Hong Kong dollars will be well spent.
What's more, they have been developing for two years and already have a very complete business. In the future, Sioux City will also need to deploy a lot of industries in Singapore.
"In this way, I am more confident in persuading Mr. Daniel Harry to join us." Li Yihui smiled after hearing Su Cheng's words.
The establishment of other logistics and shipping companies will play a very good role in the development of Tianwen Petroleum Company.
"Okay, let's do this, and leave it to you to handle it. After you convince Mr. Daniel Harry, I will tell Mr. Bao and let them contact you to discuss the purchase of second-hand boats. , second-hand aircraft, I will find someone to find a channel for you when the time comes." Su Cheng stood up and said.
Looking at the time, it was already past one in the afternoon.
"Boss, why not have a meal here? I'll ask the kitchen to cook a few dishes for us separately." Li Yihui said with a smile.
"Okay, I'm a little hungry too." Su Cheng agreed.
Coming from China Electric Power, Sioux City hasn’t had lunch yet.
In the afternoon, the two had a simple meal in the canteen. Afterwards, under the leadership of Li Yihui, they visited the entire Tuen Mun oil base.
Su City has not paid attention to the construction progress here for a long time.
This time, Su Cheng found that the installation of the equipment was almost complete.
“In more than a month, the first phase of the project will be installed. After another month and a half of debugging, it will be officially put into production. After formal production here, the second phase of the project can also start simultaneously. "Li Yihui said while leading Su Cheng.
"Tianwen Oil Company depends on you. I have very high expectations for it. Don't let me down!" Su Cheng patted Li Yihui on the shoulder and looked at the industrial park in front of him with profound words. said.
The Tuen Mun Petroleum Base is very large in area, and its overall planned refining capacity is also very strong. It can process 10 million tons of crude oil, produce 2 million tons of ethylene products, and 3 million tons of aromatic products every year.
Such a large-scale plan cannot be completed in a short time, so it can only be constructed in phases. It will take at least three years to fully build the entire Tuen Mun Oil Base.
Therefore, phased construction and phased production are the most appropriate solutions.
For example, in two months at most, part of the production here will be officially started. By then, it will also be able to continuously refining oil. Together with the refinery on Lamma Island, it will be enough to meet the needs of Hutchison Petroleum Company. The amount required by gas stations in Xiangjiang and Haojiang.
Then when the Tuen Mun oil base expands production for the next time, the Nanyang Oil Refinery on Lamma Island can be officially retired.
At that time, Hong Kong Electric Group can discuss with Tianwen Petroleum Company to acquire the land of Nanyang Refinery to build a power plant.
(End of this chapter)