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 | Global Air Cargo Advisory Group issues statement on security |
December 21, 2010 - MEMBERS of the newly formed Global Air Cargo Advisory Group (GACAG) that groups together industry bodies TIACA, IATA, FIATA and GSF, say that recent events have raised the importance of security protocols, especially risk assessment.
A joint statement issued by GACAG said the group will focus its efforts on enhancing the security of the air cargo supply chain in a manner that results in the "minimum possible disruption" to the flow of commerce.
The group said, "This will require a global push by the air cargo industry and the relevant authorities to improve risk assessment, tighten standard air cargo supply chain processes, develop viable technology for the air cargo environment and improve compliance."
Listing out a series of principles, GACAG said a comprehensive Air Cargo Supply Chain Security solution should be built around a multi-layered set of actions guided by the "risk-based" concept. It said consistent with ICAO Annex 17, member states should introduce supply chain security programmes established on common principles and platforms, such as those contained within Regulated Agent and Known Consignor programmes.
To facilitate integrated supply chain transportation, GACAG said member states should be encouraged to mutually recognise quality supply chain security programmes introduced by partner member states.
In addition, enhanced data intelligence, leveraging standardized electronic advance cargo information and consistent with the WCO Safe Framework of Standards, "should underpin secure supply chain solutions to target high-risk cargo."
It said, "Cargo security should be viewed on a holistic basis incorporating general cargo, express cargo, mail and baggage shipped as cargo, encompassing both freighter and combination aircraft."
It went on to say: "Because our members operate in all countries and territories around the world, we are acutely aware that global harmonization of air cargo security procedures is essential, and we urge that best practices be adopted as soon as possible."
GACAG members said in the statement that they also endorse the following recommendations, and will support actions that embody them: government-industry co-operation should be a fundamental principle of cargo security decision-making and lines of communication must remain open at all times.
"Supply chain security should be at the heart of any regulatory approach; governments should establish mechanisms to mutually recognize comparable supply chain security regimes by their trading partners;
"ICAO should be the global focal point for collaboration on cargo screening requirements and both governments and industry should be part of the ongoing dialogue;
"ICAO should set global definitions and standards for air cargo security, including the definition of what constitutes 'higher risk cargo,' and must do so on an expedited basis;
"National and regional regulators should adopt ICAO definitions and standards on an urgent timetable; protocols for transferred cargo should take into account screening that was performed prior to the original flight; industry and government should follow the international standard set by the World Customs Organisation on advance cargo information to facilitate risk-assessment; and industry and government should jointly develop and endorse a standard electronic cargo security declaration process and its associated paper layout."
Shipping Gazette - Daily Shipping News
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Food Safety Bill Passes Congress |
Substantial majority approves bill with controversial small farm exemption
December 22, 2010 - The House on Tuesday passed legislation by a 215-144 margin that will give the Food and Drug Administration greater authority over the food chain.
The bill gives the FDA authority for the first time to recall contaminated food, and forbids food importers from trading with foreign processors that don't meet FDA standards. The bill now goes to the president for signing.
The Senate on Sunday passed the House version of the Food Safety Modernization Act by substituting its own language in the bill. The parliamentary maneuver avoids a constitutional showdown with the House over the imposition of user fees that were only in the Senate version.
The Constitution stipulates that any revenue bill originates in the House, so senators effectively made their bill a House bill, which the House is expect to adopt.
While the food industry generally praises FDA's new authority, it vigorously opposed an amendment added to the bill by Senators Jon Tester, D-Mont., and Kay Hagen, D-N.C. that exempts small farms from the agency's jurisdiction.
The United Fresh Produce Association said it had mixed feelings about the bill. "United Fresh is confident that the Food Safety Modernization Act will do much good; it is, after all, the first overhaul of the food safety system in seven decades. However, the House and the Senate have both missed an opportunity to engage with one another to remedy the loopholes created by the Tester/Hagan amendment," the trade group said in a statement.
Journal of Commerce
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Cathay Pacific, pilots union strike tentative pay deal |
December 21, 2010 - (HONG KONG) Cathay Pacific and its pilots union have reached a tentative pay deal, a company spokeswoman said yesterday, averting possible labour action over the busy holiday period.
The Hong Kong-based carrier's pilots must still vote in favour of the deal which union negotiators endorsed after negotiations last week.
'The talks were professional and courteous with some understandable differences in perception, but we did get to a point where it was feasible to place an offer on the table,' the company spokeswoman told AFP.
John Findlay, head of the Hong Kong Aircrew Officers Association, told AFP that the new pay deal, if approved, would apply to all of the airline's 2,400 pilots, including 1,850 union members.
Voting would likely take place over the next few weeks, he said. 'Clearly we don't want this sitting around forever,' Mr Findlay added.
Neither the company nor the union would comment on details of the offer, which local media have said was lower than what the pilots demanded. The labour campaign would have seen pilots refuse to work beyond their scheduled shifts, leading to possible flight delays, reports said.
The union had been demanding a 30 per cent pay raise over four years, reports also said.
Cathay pilots make between HK$33,000 (S$5,590) and HK$144,000 a month depending on seniority, while foreign-hired staff also receive school-fee allowances and a housing subsidy as high as HK$60,000 a month, the South China Morning Post has reported.
In November, Cathay said that it expected to nearly triple its full-year profit to HK$12.5 billion as it bounces back from the global financial crisis.
AFP
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 | Thailand ends 8-month state of emergency in Bangkok |
December 22, 2010 - (BANGKOK) Thailand's government agreed yesterday to lift an eight-month state of emergency in Bangkok, citing an improved political climate and a less confrontational approach by anti-government 'red shirt' protesters.
If the government foresees a resurgence of violence, it can turn to a less harsh security law, the Internal Security Act (ISA), which is in place and allows the authorities to impose measures such as curfews and bans on gatherings.
'The cabinet evaluated the current situation and found that the movement by protesters is more peaceful, lawful and largely symbolic,' said Supachai Jaisamut, a government spokesman.
The state of emergency was declared in Bangkok and surrounding provinces on April 7 after demonstrators occupying Bangkok's commercial heart broke into the grounds of parliament.
It was extended to other provinces, including many red shirt strongholds, in an effort to control the protest movement, which was finally put down by the military in May.
In all, 91 people died during the protests and more than 1,800 people were wounded in the country's worst political violence in modern times. The lifting of the decree in the last four provinces including Bangkok will be effective from today.
Rights groups and anti-government protesters complained the decree violated human rights and accused the authorities of abusing it to stifle political opposition and free speech.
The Centre for the Resolution of the Emergency Situation, a body set up to manage the state of emergency, had insisted the decree was necessary because the situation was volatile.
It granted security forces broad powers and allowed arrest, searches and surveillance without warrants, media censorship and detention without charge for up to 30 days.
Gatherings of more than five people were in theory banned although the red shirts have held several peaceful rallies since May, the latest on Sunday attracting more than 10,000 people in central Bangkok.
In place of the decree, the government will use the ISA, which does not automatically ban gatherings, but still allows the authorities to impose curfews and declare areas off-limits among other provisions. Unlike the emergency decree, it does not allow detention without court approval.
The lifting of the decree came five days after the first meeting between Prime Minister Abhisit Vejjajiva and acting red shirt leader Thida Thavornseth to discuss bail for the movement's leaders and more than 100 others detained since May.
Reuters
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 | Hapag-Lloyd drops out of Brazil/U.S. Gulf loop |
December 15, 2010 - Hapag-Lloyd said last week it is dropping out of a loop it jointly operates with Mediterranean Shipping Co. between Brazil and the U.S. Gulf Coast.
The service, which the German line dubs BX2 and MSC calls String 2, has operated with seven vessels (four from MSC, two from Hapag-Lloyd and one unallocated) with an average capacity of 3,158 TEUs, according to American Shipper affiliate ComPair Data.
Hapag-Lloyd said the service will be phased out as of Dec. 24, but it's not immediately clear whether MSC will continue operating the service on its own or with a new service partner. MSC didn't immediately return an American Shipper request for comment.
The rotation for the String 2/BX2 loop is Veracruz, Altamira, Houston, New Orleans, Caucedo, Puerto Cabello, Suape, Vitoria, Navegantes, Santos, Rio de Janeiro, Salvador, Pecem, Caucedo and Veracruz. Hapag-Lloyd said it will provide service between U.S. Gulf, Gulf of Mexico and Brazil ports via its GS1 service, which it jointly operates with CSAV and Libra-Montemar. That service, according to ComPair Data, is operated with seven vessels (five from Hapag-Lloyd and one each from CSAV and Libra-Montemar) with an average capacity of 4,228 TEUs. Maersk Line is a slot buyer.
The GS1 rotation is Veracruz, Altamira, Houston, New Orleans, Caucedo, Suape, Buenos Aires, Montevideo, Rio Grande, Navegantes, Santos, Rio de Janeiro, Caucedo and Veracruz.
American Shipper
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 | Seattle clean drayage rules queued |
December 15, 2010 - New clean truck rules are due to go into effect Jan. 1 for drayage vehicles operating at the Port of Seattle, the port reminded in a notice this week. The Clean Truck Program guidelines require drivers to drive trucks with model year 1994 or newer engines, be registered in the port's Drayage Truck Registry, and display a "Green Gateway" sticker on the driver's side door.
"The program was designed to support the goals of the Northwest Ports Clean Air Strategy, which aims to lower emissions from all sectors of maritime operations," the port said. "So far, over 4,000 trucks and nearly 800 trucking companies/truck owners are registered in the Drayage Truck Registry."
Since the program began in 2009, more than 250 trucks have been scrapped.
The port set up an online program earlier this year aimed at registering newer, cleaner drayage trucks that access its container terminals. Registration can be done online or in person at the Port of Seattle's Drayage Truck Registry office, Terminal 5 CFS Building, 3443 West Marginal Way SW.
Drayage trucks with engines older than model-year 1994 may be eligible for a $5,000 "bounty" through the ScRAPS Program (Scrappage and Retrofits for Air in Puget Sound). For information, contact Cascade Sierra Solutions at (206) 988-8893.
American Shipper
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 | US, EU agree on pact to create jobs, boost trade |
December 20, 2010 - (WASHINGTON) Top US and European Union (EU) officials have agreed to work together to create jobs by promoting innovation and preventing new trade barriers in areas like smart grid technology and electric cars.
The United States and the 27 countries of the EU produce more than half of the world's gross domestic product (GDP), but have lost some economic clout in recent years to faster-growing countries like China, India, and Brazil.
'In the current economic climate, it is evident that the EU and the US should give a renewed focus to their transatlantic trade relationship to restore growth,' European trade commissioner Karel De Gucht said after the annual US-EU TransAtlantic Economic Council meeting on Friday.
Two-way trade in goods and services between the United States and the EU already tops more than US$1 trillion per year, and each side has about US$1.5 trillion of investment in each other's economy.
But 'there are areas where we can work more closely together to help further integrate the two economies and to ensure we are taking full advantages of our synergies', White House international economics adviser Michael Froman said.
A recent study estimated that getting rid of half of the regulatory and other non-tariff barriers between the United States and the EU would boost the EU's annual GDP by about US$160 billion, while the United States would gain about US$54 billion.
The two sides on Friday agreed to a set of regulatory principles and to focus future work on a number of priorities, such as energy efficiency, e-health, nutritional labelling, electric vehicles, and related infrastructure.
They signed a pact to promote a common approach to electronic health records, an area where the United States is expected to invest about US$20 billion in coming years.
They also launched a Web portal to help small- and medium-sized enterprises in the United States and the EU protect their intellectual property rights from pirates and counterfeiters.
Mr Froman also said the United States and the EU agreed there is an opportunity in 2011 to make progress in the nine-year- old Doha round of world trade talks, and that each side wants a better deal than is now on the table.
Mr De Gucht warned last Thursday the talks could finally die of negotiating fatigue if they are not finished soon.
He repeated that concern on Friday, and said it was the EU's view that a framework reached in July 2008 did not represent a final agreement and much more work needed to be done.
Reuters
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Reliability becoming more important to shippers than cost |
And carriers are begining to take the issue more seriously, claims analyst
December 22, 2010 - Shippers believe reliability will be more important than cost when moving cargo across the world next year, according to IFW readers.
Of almost 250 readers who took part in our latest poll, 58% think reliability will become more important than cost as a major factor when choosing how to ship cargo.
Last month, Drewry analyst Simon Heaney told IFW that he shipping industry had improved its reliability over the year.
But he added: "The industry should not spend too much time patting itself on the back. There is a long way to go - but it is encouraging to see increases [in reliability] on a quarter-on-quarter basis.
"The major shipping lines are really starting to see reliability as a big issue, and they are taking the matter more seriously than previously, which is also encouraging."
He added that service patterns were becoming more stable, making it easier for the shipping lines to hit their schedules.
In the third quarter of the year, on the main east-west trades, transpacific carriers achieved a 64% reliability rate, compared with 54% in the second quarter, Asia-Europe 66%, (54%), and transatlantic 66% (79%).
IFW
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 | Over the worst? ask European operators |
Weather situation improving, but losses could be substantial December 22, 2010 - Transport chaos continued across north-western Europe yesterday with major air, road and rail hubs suffering from congestion and delays.
Some 3,000 flights have been cancelled across Europe every day since last Friday, according to Eurocontrol, the European air traffic supervisory body.
Road and rail operators are also expected to suffer heavy losses, John Manners-Bell, Chief Analyst at Transport Intelligence told IFW.
"For transport operators focused on the consumer/retail sector, it will be difficult to make up any revenue lost due to the weather."
Although the second runway at London Heathrow re-opened late yesterday, operations are not expected to return to normal until tomorrow.
Paris Charles de Gaulle and Brussels Airport in Belgium also suffered multiple delays yesterday, while in Germany, Frankfurt-Hahn Airport was hit by further heavy, unexpected snowfalls causing a total shutdown early in the day.
However, the weather is expected to improve across large swathes of Europe today, offering some respite. "All three runways at Frankfurt Airport are now clear of snow and ice," said a spokesperson for airport operator Fraport.
Lufthansa Cargo said it expected operational improvements later in the week, and Robert van de Weg, Senior VP for Sales at freight operator Cargolux, also told IFW the outlook for operations was improving.
"Our entire fleet is at full swing again. [Yesterday] afternoon our last diverted aircraft came back from Frankfurt-Hahn, where we got stuck due to lack of de-icing fluid," he said.
Manners-Bell said the chaos of the last five days had not been all bad news for transport operators.
"Many clients will be tempted to choose higher-yielding premium services in an effort to ensure delivery pre-Christmas," he said.
"Specialist emergency logistics providers also do well, delivering JIT consignments when clients' normal services fail." IFW
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 | Weather travel chaos: UK airports and rail lines resume service |
Christmas traffic back on the move after mass air and rail cancellations, and milder weather on the way December 22, 2010 - After almost a week of disruption, cancellations and delay, Britain's transport network was today beginning to shrug off the heavy snow and arctic conditions that have brought misery to thousands of travellers in the run-up to Christmas.
To the relief of millions hoping to get away, forecasters have also predicted that the next few days will be very cold but relatively snow-free.
Heathrow airport, which had been one of the biggest casualties of the weather, operated around two-thirds of its arrivals and departures today, after five days of delays that left thousands stranded at its terminals. But it stressed that passengers should not expect an immediate return to normality.
Other airports, which appear to have coped better with the crisis, said they, too, were working to get things up and running as usual. Gatwick and Luton were open for business, but they warned there would continue to be some disruption as a knock-on effect of the cancellations and delays. Liverpool John Lennon and Manchester airports were operating normally, as was East Midlands airport, which had only one cancelled flight - to Dublin, because of poor weather in Ireland. Bristol and Birmingham airports said most of their flights were operating as normal.
Edinburgh and Glasgow airports were operating, although the former warned passengers to expect some delays and cancellations. All airports advised customers to check with their airline to see whether their flight was operating.
A spokesman for the Association of British Travel Agents said that the situation was steadily improving:. "The travel industry is very pleased that both Heathrow and Gatwick are returning to normal service. However, there will still be some delays and cancellations due to the many aircraft being out of position."
British Airways said it hoped to operate its full longhaul departure schedule from Heathrow tomorrow and on Friday. It will operate a normal schedule at Gatwick and London City airports.
Things were also looking up for thousands of Eurostar passengers, some of whom had spent two days queueing outside St Pancras station.
The cross-Channel company said it was operating around 90% of its service, although some trains were delayed by up to two hours.
"The station is pretty much back to normal in terms of checking in," said a spokesman.
"There is virtually no queue in the station and we are carrying people to their final destination."
The rest of the rail system was working to get people on the move again after yesterday's suspension of East Coast services from King's Cross.
A Network Rail spokesman said that 70% of trains were running on time across the todayUK yesterday.
"It is an improvement," he said. "Things are running better today. There are still some amended timetables in place and disrupted services.
"We will be working hard with the train operators to run the best service and monitor the weather closely and will be taking appropriate steps to keep the infrastructure operational."
However, despite the less cold conditions, many rail services were delayed and some were cancelled, among them some Virgin Trains services from London to Birmingham and Manchester.
On the roads, a series of accidents and heavy traffic led to congestion on a number of major routes, including the M25, the M1 through Hertfordshire and the M6.
The improving travel news coincided with weather forecasters predicting relatively mild weather over Christmas. The Met Office said it expected tomorrow to be very cold but dry across southern Britain, with a few snow showers across the north and east.
"Friday will be a very cold but mainly dry day for many parts of the UK except for some snow showers along the eastern coast of England and the south-east," said a spokesman. "Christmas Day looks similar, but should be drier for most parts of the UK. It will be very cold by day, with temperatures below freezing for many. The only exceptions are the far south-east and East Anglia, which might catch a snow shower, but it will be a light covering." The Guardian UK
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 | Better Freight Through Chemicals |
Rail trends soften with winter chill, but demand for industrial commodities is still running solid
December 20, 2010 - Winter may be chilling overall freight traffic, especially as the push toward Christmas retail sales winds down, but there's plenty of strength left in rail shipments.
Take the bulk carload figures for major North American railroads - Class I and a few regional lines - for the week ending Dec. 4. The Association of American Railroads said the 393,935 carloads those railroads picked up were the most since Oct. 16.
Some of that volume is rebound business from the week earlier, when the U.S. Thanksgiving holiday cut sharply into freight traffic. But the types of cargoes suggest more than a one-week rebound was taking place and that industrial demand was still strong.
The big railroads hauled 49,675 carloads of chemicals in the Nov. 28-Dec. 4 period, more than any other week of 2010. The 23,371 carloads of metal ores originated was the most since Sept. 11, and they loaded more semifinished metals and motor vehicles than any week since October.
The robust demand in industrial commodities suggests underlying strength in factory activity, particularly in the types of products that need metals or plastics spun from chemicals.
Several of the commodities also are showing gains over the levels of two years ago after a slow upturn earlier in 2010 that left demand in core industrial goods behind 2008. The latest AAR monthly report for November shows chemical loads for the month exceeding 2008 levels by 12.2 percent and metallic ores up 20.9 percent over the same month two years ago.
Intermodal volume is another source of surprising strength even though that business has been ebbing from its autumn peak. The major railroads across the continent picked up 290,674 containers and trailers in the Dec. 4 week, for some apparent catch-up after a sharp holiday week falloff. Yet the box numbers also show a solid undercurrent: Before intermodal began to scale its seasonal peak for the rail industry in late July, there hadn't been a single week when volume topped 282,000 loads. Since then, however, only holiday weeks have taken new shipment volume below 290,000. Overall rail volume in the fourth quarter is running slightly ahead of third quarter levels, in contrast with what investment analyst John Larkin of Stifel Nicolaus said is an average 1.5 percent sequential drop in the final three months over the past seven years. "We attribute this to favorable volumes of heavier carload freight and a more moderate decline in intermodal volume" than normal, he said.
Rail trends soften with winter chill, but demand for industrial commodities is still running solid
Journal of Commerce
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 | Hauliers caught in 'a perfect storm' of rising costs |
Diesel hikes a threat to jobs and consumer prices, says RHA
December 16, 2010 - UK hauliers have seen the cost of diesel increase 4% in just a fortnight, according to a survey by the Road Haulage Association (RHA).
The pre-VAT price has risen by 3.8p (US$0.60) to £1.04.
Jack Semple, the RHA's Director of Policy, has urged the government to "stop adding to the tax burden."
"The issue for government is to consider whether it can afford to go on adding to the economy's business taxes with further diesel duty increases in the new year and then again in April. The UK already has the highest diesel duty rate in the EU by far," he said.
"We are almost back to the all-time peak level of 2008."
He added: "Diesel accounts for one-third of a haulier's costs and these increases threaten the viability of firms that have been caught in a perfect storm of rising prices, reduced credit terms and a credit squeeze - often made worse by customers taking longer to pay their bills.
"On top of all that, in the past couple of weeks, many hauliers have faced an additional business risk: greatly reduced productivity and increased costs resulting from appalling problems on the roads.
"Transport buyers must recognise that they can only squeeze their hauliers so far. They have to pay sustainable haulage rates that cover cost increases if their hauliers are to maintain an efficient and responsive service."
And he warned: "Prices in the shops will inevitable rise as a result of these increases."
IFW
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 | Driver shortage approaches crisis point |
UK needs 100,000 truck drivers
December 15, 2010 - The number of qualified HGV drivers in England has fallen to an all-time low, according to the Office of National Statistics.
The statistics estimate the UK has a shortage of around 100,000 drivers.
In Liverpool, the number of HGV driver vacancies has risen by a staggering 288% in the last 12 months, while in Southampton the list a staggering 138%.
Other areas which have experienced a major increase in driver vacancies are Birmingham (up 90%) and Warrington (up 73%).
On a national scale, vacancies grew by 130% in October.
James Mallick, Operations Manager at Top Gear Recruitment, said: "If 100 drivers knocked on our office door today, they would receive immediate work - that's how desperate the industry is for experienced drivers.
"With demand significantly outstripping supply, there's real concern that something has to change quickly. As a result, we're launching an ambitious drive to try and bolster the region's workforce and redress the balance."
As part of the compaign, Top Gear is offering free driver training to anyone who works with the company. It's also one of a small number of leading agencies spearheading the Driver Certificate of Professional Competence (CPC) scheme, a course which aims to improve the road safety and fuel efficiency of vocational drivers in Britain.
Top Gear has set up its own training academy and sends all drivers on the relevant course to ensure they meet current legislation.
IFW
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EU Rolls Out Plans to Strengthen Plant Safety Legislation |
December 22, 2010 - The European Commission has issued draft legislation to strengthen the rules on the control of major accidents involving hazardous chemicals. Proposed changes to the so-called Seveso II Directive include clarifications to the law and updates for a series of provisions including the introduction of stricter inspection standards and improvements to the quality of information available to the public in the event of an accident.
The new Directive, with the backing of the European member states and the European Parliament, should be introduced from June 1, 2015. The legislation applies to about 10,000 industrial establishments in the EU.
The other amendments to the law are technical modifications including simplifications to reduce unnecessary administrative burdens. The revision should maintain and improve current levels of protection without significantly affecting costs, the commission says.
"The Seveso II Directive has been instrumental in reducing the likelihood and consequences of chemical accidents," says environment commissioner Janez Potočnik. "However, such accidents still occur and can often have devastating effects. We cannot compromise with safety. This is why the proposed new rules will further strengthen legislation in this area and ensure the necessary high levels of protection."
The review was prompted by the adoption of rules to align the EU classification system to the United Nations Globally Harmonised System. It will ensure that the same hazards are described and labelled in the same way all around the world.
The proposed directive follows a review process that included stakeholder consultation and various studies on the effectiveness of existing rules and the impact of possible options for improvements.. ChemicalWeek
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 | China, Pakistan sign deals: minister |
December 18, 2010 - ISLAMABAD - CHINA and Pakistan signed around US$30 billion (S$39 billion) worth of deals on Friday, boosting trade and investment as Wen Jiabao became the first Chinese premier in five years to visit the nuclear-armed state.
Pakistan, on the front line of the US war on Al-Qaeda and battling a Taleban insurgency in its north-west, considers China its closest foreign ally and treated Mr Wen and a massive business delegation to a red-carpet welcome.
The two countries signed 13 agreements and a memorandum of understanding in fields including energy, rail transport, reconstruction, agriculture and culture, Information minister Qamar Zaman Kaira told reporters.
'China will provide assistance in 36 projects in Pakistan to be completed in five years,' he said. 'Basically this is a five-year development plan.'
He said US$14 billion will come through a joint economic cooperation group, US$5 billion in other business agreements, while deals worth another US$10 billion are expected to be concluded at a business leaders' meeting on Saturday.
'Overall the Chinese investment is expected to be around US$30 billion,' he said. Although the deals are vitally important to the moribund Pakistani economy, they pale into comparison with Mr Wen's agreement in Pakistan's arch rival India on Thursday where the two countries agreed to double bilateral trade to US$100 billion by 2015.
AFP
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