Business

Thailand’s Military Governments Approval of the Kunming-Singapore Rail Line

Published

10 years ago

October 28, 2014

Bchcomber

China’s participation, both as a rail partner and a competitor for potential business, is on everybody’s mind. “But if you don’t have a link to southern China in the next 20 years, this will really be an enormous lost opportunity.”

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BANGKOK – Rail lines running north from Bangkok to Chiang Mai have become so decrepit that derailments occur regularly. But plans to upgrade are also sidetracked with high frequency.

So Asian transportation experts, and railway buffs everywhere, were surprised by the Thai military government’s sudden approval in July of a $23 billion plan to upgrade and expand rail lines and other infrastructure. Included were two lines that could revolutionize the region’s freight service, linking ports around Bangkok and in Singapore with China and onward to Europe.

Such a pan-Asian rail network has been on the drawing board for decades and is promised in several recent regional pacts. Some routes were mapped out more than a century ago as the British and French carved tracks through the jungle in an ambitious Great Game of Trains that was meant to boost trade among their colonial holdings in Asia and counter Russia’s Trans-Siberian railway.

Now a new game is under way, and China is the key player. “China has been eying routes from Yunnan to the coast for a long, long time,” says Chalongphob Sussangkarn, who has studied various freight and passenger routes for decades as an adviser to the Thai government. Ports in Singapore and Bangkok, he notes, are closer to China’s vast southwest region than China’s own eastern ports.

Southeast Asian ports also offer access to strategic shipping lines where much of the world’s oil is transported, as well as service to many of the world’s fastest-developing nations. Various routes from China have been pitched over the years, with the main options via reticent Laos or the more difficult terrain of Myanmar, which has a keener government.

The East Line will originate in Nanning, Guangxi Province on the Vietnamese border and connect through Bangkok, Kuala Lampur and Singapore.

China has pledged to finance either route. Last month China took the first step by approving an $11.4 billion plan to build two rail lines–one from near Yunnan’s provincial capital, Kunming, to the Laos border and the other from Dali in western Yunnan to the Myanmar border. No matter the alternative, after Laos or Myanmar the tracks must run through Thailand, the sole land bridge to Singapore. Malaysia and Singapore have already approved a high-speed line to be finished by 2020. The last domino could be Thailand.

The courts killed the last plan over questionable “rice for rails” funding–the Yingluck government allegedly planned to swap surplus rice for Chinese trains.

The plan approved by Thailand’s new rulers recalls a proposal by the elected government they dispatched in a coup in May. As before, major questions involve not only the route, equipment and whether the gauge of the track will match the Chinese lines. There is also concern about the massive investment and the ever looming shadow of China.

The courts killed the last plan over questionable “rice for rails” funding–the Yingluck government allegedly planned to swap surplus rice for Chinese trains. “China is eager to move forward and is offering financing as well as technology and its own equipment,” says one industry official close to the discussions. “But resistance is also high. There is a huge fear about a kind of new Chinese colonization.”

Chalongphob concedes that China’s participation, both as a rail partner and a competitor for potential business, is on everybody’s mind. “But if you don’t have a link to southern China in the next 20 years, this will really be an enormous lost opportunity.”

A Bangkok-bound train from Chiang Mai derailed in Lampang

Thailand has ample experience with lost railway opportunities. It was among Asia’s earliest exponents of rail: Its industry began rolling in 1890 with the formation of the Royal State Railways of Siam. Within 15 years lines were running north and south, and it became the State Railway of Thailand in 1951.

But typical of government-owned enterprises, modernization and maintenance failed to keep pace. Instead investment shifted to roads and the boom in private automobiles. The northern route from Bangkok to Nong Khai, on the Lao border, is one candidate for being extended to China; it’s among the more recent main lines but still over half a century old. The other main option north–Bangkok-Chiang Mai–dates to the 1920s; likewise the tracks running south to Malaysia.

With the government steadfastly refusing to raise the low passenger fares or divert more money from the budget, the system is starved of investment. Practically all trains run late and at a loss. Studies show that freight costs nearly twice as much to move in Thailand as in nearby countries, but cargo long ago shifted to faster, more dependable trucks. Thai trains carry passengers in mainly grungy third-class compartments. “Without aggressive and sustained support and restructuring, the Thailand railway system is likely to become irrelevant within ten years,” said the Asian Development Bank in a report last year.

The infrastructure package approved in July could halt the decline. Details have been sparse, though in the original announcement the government estimated that work would begin next year, with completion in six to eight years. Equipment-makers and transportation experts report that there have been no consultations, but officials were promising new details this month.

Officials from the State Railway of Thailand (SRT) wait for orders outside a train which was derailed before entering Bangkok station in Bangkok

Many view the big infrastructure package as the type of prestige project typically mounted by new governments. It’s also the kind of grand scheme that suits an authoritarian regime. China has ramped up its railways in just a few decades, becoming a genuine global powerhouse, exporting its own high-speed technology and boasting innovations such as a link to remote Tibet that pushed the limits of construction as the highest-altitude line in the world. “We’re definitely watching. This would be huge, if it happens,” says Kevin Smith, who has covered Thai trains for the industry magazine International Railway Journal and has seen previous proposals go nowhere. “We’ll believe it when we see it.”

Like many others, he scoffs at the enormous breadth of the transportation plan and its apparent contradictions. As announced the package has something for everyone: express trains to China and Singapore for exporters, urban rail expansion for traffic-weary Bangkok commuters and improvements of national highways for all. Besides the major lines to China that have gotten most of the attention, several other routes are mentioned, including tracks to neighboring Cambodia.

Experts say a viable blueprint should focus on an individual sector, such as passenger or freight service. The plan touts extensive electrification and double-tracking of rail lines. This would be huge; Thailand has 4,500 kilometers of rail, the vast majority of them single track. Adding dual carriages would boost speed and efficiency, but it’s expensive and more practical when the market is high-paying passenger lines in urban corridors.

For trains to China, cargo will be the priority, and upgrading existing tracks would seem to be the more logical plan. The government has already downplayed hopes of high-speed passenger lines, saying safety concerns will limit trains to speeds of 160 kilometers an hour, about half the norm of China’s high-speed trains. “The line will likely come down the corridor from Kunming toward Chiang Rai and then down through Chiang Mai to Bangkok, if it comes,” says railway consultant Greg Wood, who worked on the ADB’s 2013 train plan. “But in my view it will be very expensive, carry limited traffic and cost a lot to keep working. It will mainly serve the geopolitical interests of the Chinese government to link to Thailand, Malaysia and Singapore.”

Worries over procurement procedures are widespread, especially with China involved in discussions about the route as well as being potentially a supplier and financier. Both Lao and Myanmar officials have questioned China’s desire to fund lines through their countries, citing issues of repayment and land grants, among numerous concerns.

Thailand’s history of problems with projects of this scope is almost as ragged as its run-down trains. Corruption scandals have brought down many governments, and battling corruption is a major theme of the military junta that is now running the country. Hence, some see a discussion by the government last month about creating an agency to oversee the transportation plan as a good development. “The establishment of a railway department within the Ministry of Transport was one of my recommendations to take over control of the railway infrastructure,” says Wood. “That now seems to be happening. So it will be a useful first step.”

Chalongphob adds: “These railway projects are going to happen someday, there is no question about that. The question isn’t just when but how, and how it benefits not just Thailand but the other countries involved.”

By Ron Gluckman

Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

Published

2 months ago

October 8, 2024

Salman

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

Business

Old National Bank And Infosys Broaden Their Strategic Partnership.

Published

2 months ago

October 8, 2024

Salman

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

Business

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

Published

2 months ago

October 8, 2024

kiaragrace

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP