Seanna

Fate of Bombardier Incs lone Canadian CSeries order rests on federal election

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MONTREAL — The fate of Bombardier Inc’s lone Canadian CSeries order appears to hinge on the results of Monday’s federal election.Porter Airlines, which placed a conditional order in 2013 for 12 of the 110- to 125-seat planes, hopes to get permission to fly it on a lengthened runway at the Billy Bishop Toronto City Airport.However, both the Liberals and NDP oppose amending an agreement with the city of Toronto and PortsToronto that would permit jets at the island airport even though CSeries testing suggests it’s the quietest commercial jet in its class that is currently available.If I were Bombardier, I wouldn’t count on those ordersThe Conservatives said they would “consider a proposal” from the city and port authority once a formal request is made. It said the government approved a passenger tunnel that was previously scrapped by the Liberals.“This highly popular airport is a vital economic driver in this city,” a party spokesman said Friday. “Liberals just don’t get it.”Polls suggest the Liberals hold a slight edge and could form a minority government. The head of a local community group opposed to jets at the airport believes the proposal is “dead” if either of the opposition parties are victorious.“If I were Bombardier, I wouldn’t count on those orders,” said CommunityAir chairman Brian Iler.He said the issue could be resolved quickly if the new government in Ottawa quickly announces its unwillingness to reopen the agreement.Crunch time for Bombardier Inc: 5 ways the company can raise cash and boost confidenceBombardier Inc’s CSeries development enters home stretch with testing over 90% completeBombardier Inc’s Airbus talks signal ‘the beginning of the end’ for CSeries, experts sayRegardless of the election, PortsToronto said it will continue to work on studies requested by Toronto City Council and deliver them early next year.Porter wouldn’t comment on the electoral impact on its CSeries order, but Bombardier says it’s not concerned about the order.“They’re going through the appropriate channels; we’re following the due process and we’ll see what results,” said spokeswoman Marianella de la Barrera.The potential loss of a Canadian order comes as Bombardier scrambles to find a partner for the aircraft, after approaching Airbus, that helps to address its financial challenges. The company has booked orders and commitments for 603 CSeries aircraft, including 243 firm orders.Porter’s conditional order is valued at US$870 million, rising to nearly US$2.1 billion if it exercises options for another 18 aircraft.Bombardier says it is pitching the plane to several airlines around the world, including, reportedly, Air Canada.Analyst David Tyerman of Canaccord Genuity isn’t counting on Porter getting a hold of the airplane because political developments are difficult to predict.“What they say now and what they do later could change but obviously (the opposition parties’ positions) would reinforce my view that I cannot count on this order,” he said in an interview.Montreal-based Bombardier said the commercial aircraft has undergone 90 per cent of the testing required to win certification this year before entering into service in the first half of 2016. read more

China says Hambantota Port has great potential for expansion

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In a statement released in Hong Kong it was announced that CMPort will agree to invest an amount of up to USD1,120.00 million (equivalent to approximately HKD8,736.00 million) into Hambantota Port and Hambantota port and marine-related activities, of which the total amount to be paid to SLPA for the acquisition of the 85% issued share capital of HIPG shall be USD973.658 million (equivalent to approximately HKD7,594.53 million) (and HIPG shall use a portion of such amount to acquire 58% issued share capital of HIPS) and the remaining USD146.342 million (equivalent to approximately HKD1,141.47 million) shall be deposited into a bank account in the name of the Company in Sri Lanka and will be utilised for such Hambantota port and marine-related activities as may be agreed with GOSL within one year from the final payment of capital injection in HIPG and the Company shall be entitled to repatriate any amounts in the bank account at the expiration of such one year period if no agreement has been reached with GOSL for the use of such funds. Pursuant to the Concession Agreement, SLPA and GOSL will grant (i) to HIPG, the sole and exclusive right to develop, operate and manage the Hambantota Port and (ii) to HIPS, the sole and exclusive right to develop, operate and manage the Common User Facilities, for the operation of the Hambantota Port. The term of the Concession Agreement shall commence on the Concession Agreement Effective Date of 99 years. During the first 15 years from the Concession Agreement Effective Date, SLPA and GOSL shall ensure that there shall be no, and shall not obtain any fresh tenders, granting any right to any third party, or discuss, negotiate or entering into any arrangement or agreement with any third party in relation to the development of any port/terminal development directly in competition with the port services and activities carried out at the Hambantota Port within 100 km perimeter from the periphery of the Hambantota Port. China says the Hambantota Port has great potential for future expansion, with its hinterland covering the South Asia and East Africa, and as a maritime hub in the region.The Board of China Merchants Port Holdings Company Limited announced in Hong Kong that, on 25th July 2017, CMPort, Sri Lanka Ports Authority (“SLPA”), the Government of the Democratic Socialist Republic of Sri Lanka (“GOSL”), Hambantota International Port Group (Private) Limited (“HIPG”) and Hambantota International Port Services Company (Private) Limited (“HIPS”) have agreed on the terms of the Concession Agreement in relation to the development, management and operation of the Hambantota Port. China Merchants Group Limited has rich experience and resources in implementing the “Port + Park + City” Model (e.g. Shekou, Zhangzhou). The significant landmass of the project (approximately 11.5km2 port area) gives leeway for the Company to implement and capitalize on the said model to add substantial value to the port operations and development. Furthermore, the Company has also entered into a cooperation framework agreement with China Harbour to explore possible future cooperation and joint development and operation in relation to the Hambantota Port and the industrial park adjacent to the Hambantota Port. As at the terms and conditions for such cooperation is yet to be finalise, the Company said it will further disclose when such cooperation materialises. (Colombo Gazette) “The Port of Hambantota is located on the Southern coast of Sri Lanka occupying a prime location within 10 nautical miles to the main shipping route from Asia to Europe and is also in a strategic position along the “Silk Road Economic Belt and the 21st Century Maritime Silk Road”. Hambantota Port is a comprehensive deep-water port, the Hambantota Port project is a project to develop a major industrial and service port with an attached industrial zone in the Port of Hambantota and it is currently expected that the project will comprise of three phases. With 10 berths in Phase 1 and 2, and quay length of up to 3,487 meters; the berths are specialized to handle containers, bulk cargos, general cargos, RO-RO cargos and liquid bulk. Water depth alongside the quay and navigation channel is -17 meters, which makes Hambantota Port a deep-water port capable of handling super-mega vessels. Hambantota Port has great potential for future expansion, with its hinterland covering the South Asian region, and as a maritime hub in the region,” China Merchants Port Holdings Company Limited said.CMPort has, in recent years, been actively exploring and, as and when deemed appropriate, capturing available opportunities overseas as the means to effectively add new growth drivers to its existing and sustainably growing ports business. Having already established a story of success in Port of Colombo through the development of the Colombo International Container Terminals Ltd., the addition of the Hambantota Port will provide the Company a platform to materialise synergies between the two major ports in Sri Lanka, unlocking the county’s potential to be a global maritime center. read more