People in Hong Kong create super chaebols

Chapter 415 Only HK$1 million is needed

In the 70s, the shipping market entered a long period of recession. Although there were brief rebounds and recoveries during this period, the downward trend did not substantially ease.

Freight rates were basically below transportation costs, and more than 1000 million deadweight tons of oil tankers were idle. Second-hand ship transactions saw both volume and price fall. For example, the price of a 1970-ton oil tanker built in 20 was approximately US$1973 million in 5200, but by 1977 It fell to US$500 million, a drop of 4% in less than 90 years.

Today, a 1970-ton cruise ship built in 20 can be purchased for only US$400 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 20-ton oil tanker was US$400 million, and Global Shipping Group was even US$300 million. Willing to sell.

300 million US dollars, how low is it?
Now, the exchange rate between US dollars and Hong Kong dollars is around 1:4.9. In other words, it only takes 1470 million Hong Kong dollars to buy a 8-ton second-hand oil tanker produced eight years ago.

When purchasing a new ship, you need to spend at least more than 1 million Hong Kong dollars before the shipbuilding ship can build you a 20-ton oil tanker.

Therefore, it is really cheap and cost-effective to buy second-hand oil tankers now.

Whether it’s a VLCC super-large tanker or a [-]-ton container ship, Sioux City plans to have it all.

This is a good opportunity to capture these ships at low cost.

"You don't need to buy many oil tankers for your own use. If you buy a few 5-ton oil tankers, a few 10-ton oil tankers, and a 20-ton oil tanker, it will basically be enough for Tianwen Petroleum Company to use. Calculating it like this, Within HK$5000 million, it 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, and that is enough. The most we can spend here is 3000 to [-] million Hong Kong dollars.

The rest is to recruit talents, build logistics parks, etc.

Therefore, the starting capital of HK$1 million 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 Su City's industries.

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 profitable. It does not need to invest too much money. When the logistics company develops in the future, it will naturally make money. Then the money earned can be invested in further development." Su Cheng thought for a while and nodded.

Li Yihui shook his head in his heart, feeling a little envious.

1 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, 1 million Hong Kong dollars is nothing more than a small amount.

But think about it, I am now working for the world's richest man, and I am also one of his important generals, so 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. With Dali Logistics Company The foundation has begun to develop, and it will be much smoother. We are now acquiring Dali Logistics Company at a small cost. We only need to bear this million in foreign debt, which is enough." 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.

When the logistics and shipping company is established, it will play a very good role in the development of Tianwen Petroleum Company.

"Okay, let's do this, and let you handle it next. After you convince Mr. Daniel Harry, I will tell Mr. Bao and ask them to 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 o'clock in the afternoon.

"Boss, why don't you 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, and then, under the leadership of Li Yihui, they visited the entire Tuen Mun oil base.

Sioux 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 a month and a half of debugging, it will be officially put into production. After the official production here, the second phase of the project can also start simultaneously." Li Yihui led Su City, he said while visiting.

"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, looked at the industrial park in front of him, and said deeply.

The Tuen Mun Petroleum Base is very large in area, and its overall planned refining capacity is also very strong. It can process 1000 million tons of crude oil, produce 200 million tons of ethylene products, and 300 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 Petroleum Base.

Therefore, phased construction and phased production are the most appropriate solutions.

For example, in up to two months, part of the production here will be officially started. At that time, the oil refinery here will be able to continuously refining. Together with the refinery on Lamma Island, it will be enough to meet the refueling needs of Hutchison Petroleum Company in Xiangjiang and Haojiang. The amount required for the station.

Then when the Tuen Mun oil base expands its 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)