Business
Category

A commuter rail network for Jeddah

Comments (1) Business, Featured, Middle East

jeddah metro

Saudi officials hope the network, to begin operation in 2020, will ease congestion in the nation’s second largest city.

An extensive rail network, a critical piece of a plan to reduce severe traffic congestion in Saudi Arabia’s commercial capital, is expected to begin operation in 2020.

The $12 billion Jeddah network will have four lines – a Blue Line with 19 stations, including the airport, a Green Line with 12 stations, a Red Line with 24 stations, and an Orange Line with 30 stations.

In all, the network will comprise about 150 kilometers of track and will include construction of a road-rail suspension bridge over Obhur Creek. The network will connect to the Haramain high-speed rail station for travel outside the city.

Jeddah, a port city on the Red Sea, is Saudi Arabia’s second largest city after the capital, Riyadh. Jeddah also is a gateway to the holy sites of Mecca and Medina.

Traffic congestion plagues city

The train network is the central element of a larger plan by Saudi officials to ease major automobile traffic congestion in the city of 3.4 million people by 2030.

Traffic in the city has been described as “nightmarish,” and commuters are plagued with poor road design, lack of traffic officers, and drivers who do not follow traffic rules.

One goal for the Jeddah transportation plan is to increase from 12 percent to 50 percent the city population living within a 10-minute walk of public transportation.

Osama Abdouh, executive director of the government-backed Jeddah Metro Company, which is managing the project, said the project will “provide the best and most suitable types and choices for public transportation” for Jeddah residents and visitors.

At the same time, it will reduce traffic congestion and pollution in the city, Abdouh said.

Traffic in Jeddah

Traffic in Jeddah

Bus network, tram and ferries also planned

The Jeddah Public Transit Program also envisions a bus network, cycle networks and marine ferries along with a tramway on the Corniche coastal resort area.

The Saudi Council of Ministers approved the $12 billion transportation plan for Jeddah in 2013. Abdouh said the exact cost is to be determined as plans firm up.

Several contractors are already at work developing plans and designs.

The British architecture firm Foster + Partners was awarded a contract to develop the architecture for the master plan. Aeocom Tecnology Corp., based in the United States, is providing support for the planning and design phase, while a French company, Systra, is providing the engineering designs.

Bids to be sought

Later this year, the Jeddah Metro Company will seek bids a variety of contractors to supply trains and equipment, communications, passenger information, fare collection and train control systems, automatic train supervision, an operations center and depot buildings as well as mechanical, electrical, ventilation, cooling and plumbing systems.

Abdouh said the project expects to ask for bids for many aspects of the project in the second quarter of 2016, once the designs are completed.

The project is also in the process of acquiring approximately 150 pieces of property needed to develop the network in Jeddah.

The Saudi capital, Riyadh, is also getting a rail system. A six-line network with 178 kilometers of track and 85 stations is expected to be completed in 2018.

The projects are going ahead despite economic struggles in Saudi Arabia. Tumbling global oil prices have forced the Saudi government to dip into reserves.

The 2016 budget cuts government spending by nearly 14 percent from 2015 levels, but the country is still expected to have a budget shortfall of 13 percent of gross domestic product this year.

Meanwhile, development of railways is surging in the Middle East and Northern Africa. One 2014 estimate said rail and metro that were under way or planned in the Middle East totaled more than $200 billion and would cover more than 36,000 kilometers.

Read more

South Africa’s rand flat ahead of U.S. jobs data

Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – South Africa’s rand weakened slightly early on Friday, pausing a rally that has seen the unit trade below the crucial 16 rand per dollar mark for three straight sessions as global risk appetite has improved.

Stocks were set to open flat at 0700 GMT, with the JSE securities exchange’s Top-40 futures index slipping 0.1 percent.

By 0645 the rand was flat at 15.8995 per dollar, easing off its firmest level in one month after statements from the United States Federal Reserve this week suggested interest rates there would remain lower for longer.

Government bonds were also firmer, with the benchmark paper due in 2026 shedding 2 basis points to 9.115 percent.

Traders said currency moves would be limited ahead of the U.S. non-farm payrolls data due later in the session.

“Markets are still deciding on a consensus view for how many U.S. rate hikes we will see this year, and a weak jobs report could put the impetus back in the hands of doves,” said research house NKC African Economics in a note.

Recently weak U.S. economic data, and dovish comments from New York Federal Reserve President William Dudley, have led investors to pare bets on a steady pace of Fed rate increases.

 

(Reporting by Mfuneko Toyana; Editing by Ed Stoddard)

Read more

Nigeria to issue 90 bil naira bonds on Feb 10

Comments (0) Africa, Business, Latest Updates from Reuters

LAGOS (Reuters) – Nigeria plans to raise 90 billion naira ($452.26 million) worth in local currency denominated bond at an auction on Feb. 10, the second of such this year, the Debt Management Office (DMO) said on Thursday.

The debt office said it will sell 40 billion naira in paper maturing in 2020 and 50 billion naira in the debt maturing in 2026, using the Dutch Auction System, in which the price is lowered until the bond is bought.

Both debt notes are reopening of the previously issued bond.

Nigeria is planning to borrow as much as $5 billion to help fund its budget deficit due to the plunge in oil, which has also sent the naira NGN=D1 currency into a tailspin.

It expects a deficit of 3 trillion naira ($15 billion) in 2016, up from an initial 2.2 trillion naira ($11 billion) estimate.

Nigeria’s total debt rose to 12.60 trillion naira ($65.42 billion) as of December 2015, up from 11.2 trillion naira in 2014. [nL8N15I3J3]

 

($1 = 199 naira)

 

(Reporting by Oludare Mayowa Editing by Jeremy Gaunt)

Read more

South Africa must admit national drought crisis to help farmers

Comments (0) Africa, Business, Latest Updates from Reuters

PRETORIA (Reuters) – South Africa must formally declare a national disaster for the government to release relief funds to help farmers through the worst drought in a century, the country’s largest grain producer group said on Wednesday.

While higher than expected January plantings saw Grain SA reduce its 2016 maize imports figure to 3.8 million tonnes from 5 million tonnes previously, late seeding has put young plants at high risk from extreme weather over their growth cycle.

With five out of nine provinces labelled disaster zones due to drought, the country now needs to acknowledge the situation nationally as farmers are starting to capitulate, Grain SA Chief Executive Jannie de Villiers told Reuters.

“Our Minister of Agriculture is well informed but I think we need leadership to declare it a disaster so that the process can be triggered,” he said.

The Agriculture Ministry did not immediately respond to request for comment by email and phone.

Should a national disaster be declared, emergency relief funds would be released from the National Treasury to eligible farmers. However, any funding would probably come too late to secure the future of farmers on the brink of going bankrupt or selling their holdings, De Villiers said.

The Mpumalanga, Limpopo, KwaZulu-Natal, Free State and North West provinces have been declared disaster zones for agriculture as a blistering drought sucks moisture from the soil and dam levels fall, causing a delay in planting crops for the crucial southern hemisphere summer season.

The South African Weather service said last week the El Nino weather pattern which triggered the historic drought is expected to persist, toughening the situation for farmers who scrambled to plant crops when rains started.

Farmers of cattle, sheep and goats have been urged by the government to cut the sizes of their herds as the drought has scorched grazing land and the 2016 maize harvest is expected to fall 25 percent from last year to 7.44 million tonnes.

Industry sources say food prices may rise 20 percent or more this year, putting upward pressure on overall inflation, which rose to 5.2 percent in December from 4.8 percent in November.

The most traded July white maize contract closed 1.6 percent higher at 4,943 rand a tonne on Wednesday. White maize for delivery in March is trading near record highs above 5,000 rand a tonne.

De Villiers also signalled trouble ahead for the subsequent crop season, saying farmers would struggle to obtain crop finance after this year’s disaster and restrictions on insurance for lost income.

“Can the farmers plant again if they don’t have crop finance? If they can’t pay their debt the farmers are not going to plant next year even if its raining.”

 

(By Zandi Shabalala. Reporting by Veronica Brown and Zandi Shabalala; editing by James Macharia and David Clarke)

Read more

El Sewedy Electric unit in $484.5 mil Angola power stations deal

Comments (0) Business, Latest Updates from Reuters, Middle East

CAIRO (Reuters) – A subsidiary of El Sewedy Electric has signed a $484.5 million contract to build three power stations in Angola but the deal is “not yet in effect”, the Egyptian firm said in a bourse statement on Wednesday.

The contract between subsidiary El Sewedy Power and the Angolan government is subject to approval by Angola’s president and a specialised court, it said.

“The contract involves supplying, building, operating, financing and maintaining the stations. The project will be done during 2016 but the contract is not yet in effect and is suspended on certain conditions, including the president’s approval,” it said.

 

(Reporting by Asma Alsharif; editing by Jason Neely)

Read more

South Africa’s private sector activity still in negative territory

Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG, Feb 3 (Reuters) – Activity in South Africa’s private sector remained in decline at the start of 2016, a survey showed on Wednesday, with employment, new orders and output all falling since December.

The Standard Bank Purchasing Managers’ Index (PMI), compiled by Markit, edged up to 49.6 in January from 49.1 a month before, but remained below the 50 mark that separates expansion from contraction.

“While the weak rand helped exports to stabilise, it also exerted some upward pressure on input costs, resulting in the steepest increase in overall input costs for five months,” Markit said. South Africa’s rand slid about 25 percent against the dollar last year, weighed down by a dim outlook for Africa’s most developed economy and slowing growth in China, a key consumer of local commodities. Investors are also worried about the prospect of undue political interference in economic policy after President Jacob Zuma suddenly fired the finance minister in December.

Read more

Kumba Iron Ore sees 2015 profit plunging as supply glut persists

Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – South Africa’s Kumba Iron Ore said on Tuesday it expected full-year earnings to December 2015 plunge as much as 67 percent as it battled slumping prices for the steel-making ingredient.

The unit of Anglo American said headline earnings per share (EPS) are expected to fall by between 65 percent and 67 percent to 11.45 rand and 12.05 rand.

Kumba is due to release its full-year results on Feb. 9.

Headline EPS is the main gauge of profit in South Africa and strips out certain one-off items.

Iron ore prices fell about 35 percent in 2015 due to a supply glut and growth concerns in top consumer China, forcing Kumba to cut jobs and restructure its main mine, Sishen.

Kumba took a 6 billion rand ($374 million) writedown charge in 2015 for the reconfiguring of the Sishen mine.

Its shares initially fell as much as 8 percent before recouping losses to close 3.1 percent higher at 37.51 rand.

“The market had expected that there will be some write off. It is good that Kumba is taking the medicine it needs and focusing on cutting costs,” said Sanlam Private Wealth portfolio manager Greg Katzenellenbogen.

The world’s largest producer of iron ore, Vale SA, said on Thursday it would recommend to its board that no dividend be paid to shareholders this year because of the slump in commodity prices.

($1 = 16.0535 rand)

 

(Reporting by Zandi Shabalala and Thekiso Anthony Lefifi; Editing by Tiisetso Motsoeneng and David Evans)

Read more

Eskom names short-term suppliers for Arnot coal-fired plant

Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – South Africa’s Eskom will use coal from Glencore, South32 and five other suppliers to power the Arnot power station, including Exxaro Resources with whom it did not renew a 40-year contract in December, the utility’s spokesman said in a Twitter post on Tuesday.

The short-term supply agreements are separate from the list of bidders for the new long-term contract, the outcome of which Eskom said it will announce before the end of the first quarter of this year.

Eskom listed lesser-known Tegeta, Keaton Energy, Hlagisa Mining and Umsimbithi Mining as the other short-term suppliers to the 2,100 MW Arnot plant.

 

(Reporting by TJ Strydom; editing by Jason Neely)

Read more

Sasol to start drilling in new Mozambique oil and gas fields

Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – South Africa’s Sasol has received the green light from Mozambique to develop more oil and gas fields in the southern African state, the company said on Monday, without disclosing how much the project will cost.

Mozambique is sitting on huge gas reserves and developing liquefied natural gas export projects is expected to bring tens of billions of dollars to the impoverished state.

The petrochemicals giant, which makes 40 percent of its revenue from oil, said the project, about 600 km (372 miles) north of the capital Maputo, will be rolled out in stages. The first phase will include an oil, liquefied petroleum gas and gas project adjacent to its Pande and Temane fields.

Natural gas from Pande and Temane fields, in which Sasol holds a majority stake, is currently produced and processed at a central facility before being transported on an 865 km pipeline to gas markets in Mozambique and South Africa.

Sasol President and Chief Executive David Constable said the project was a “major milestone in further developing natural resources, which will significantly benefit Southern Africa.”

Gas projects being developed by Italy’s Eni and U.S. energy firm Anadarko will be given the final go-ahead by the end of this year, the state-run National Hydrocarbon Company (ENH) said on Sunday.

 

(Reporting by Peroshni Govender; Editing by James Macharia)

Read more

Ugandan inflation eases to 7.6% year-on-year in January

Comments (0) Africa, Business, Latest Updates from Reuters

KAMPALA (Reuters) – Uganda’s inflation eased to 7.6 percent year-on-year in January from a revised 8.4 percent a month earlier, helped by a slowdown in food inflation, the statistics office said on Monday.

The Uganda Bureau of Statistics (UBOS) said annual food inflation had slowed to 12.7 percent in January, from 13.8 percent in December.

Core inflation – which excludes food, fuel, electricity and metered water – decreased to 7.1 percent in January from 7.6 percent in December, UBOS said in a news conference.

On a monthly basis, headline prices rose 0.1 percent in January after rising 0.2 percent in December.

David Bagambe, a trader at Diamond Trust Bank, said that, despite the decrease in inflation, the central bank was unlikely to start easing its policy stance because it needed to maintain high yields on its debt instruments to manage liquidity.

“For now, the central bank is more concerned about the huge amount of liquidity in the system than the small changes in inflation,” he said.

 

 

 

 

(Reporting by Elias Biryabarema; Editing by Kevin Liffey)

 

Read more