We're building a super chaebol in Hong Kong

In the 1970s, the shipping market entered a long period of decline and stagnation. Although there were brief periods of recovery, the downward trend did not substantially improve.

Freight rates were generally below transportation costs. More than 10 million deadweight tons of oil tankers were idle, and both the quantity and price of second-hand ships plummeted. For example, a 200,000-ton oil tanker built in 1970 was priced at approximately $52 million in 1973, but by 1977, it had fallen to $5 million, a decrease of 90% in less than four years.

Now, a 200,000-ton cruise ship built in 1970 can be bought for just $4 million!

When Su Cheng previously chatted with the 'Charter King,' the Charter King was even willing to sell some of his ships at prices lower than the market price. For example, a 200,000-ton oil tanker might have a market price of $4 million, but Global Shipping Group was willing to sell it for as little as $3 million.

How low is $3 million?

Currently, the exchange rate between the US dollar and the Hong Kong dollar is about 1 to 4.9. That is to say, you only need HK$14.7 million to acquire an eight-year-old, 200,000-ton second-hand oil tanker.

To buy a new ship of the same size would have cost at least HK$100 million to have a shipyard build you a 200,000-ton oil tanker.

Therefore, buying second-hand oil tankers now is really cheap and cost-effective.

Su Cheng plans to acquire both VLCC supertankers and 10,000-ton container freighters.

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

"For our own use, Tianwen Petroleum Company doesn't need to buy too many oil tankers. A few 50,000-ton oil tankers, a few 100,000-ton oil tankers, and one 200,000-ton oil tanker should be enough. This should cost no more than HK$50 million.

As for second-hand aircraft, we only need to buy a few second-hand long-range large aircraft for the time being, which will cost at most HK$20 to 30 million.

The rest will be used to recruit talent, develop logistics parks, and so on.

Therefore, an initial capital of HK$100 million is more than enough," Li Yihui said with a smile.

Li Yihui clearly understood the second-hand market better than Su Cheng and began to calculate for him with a smile.

He also knew that the shipping industry was currently sluggish, so there was no need to spend money to buy too much. The most important thing now was to have enough for Su Cheng's industries to use.

As for developing external business, there was no need to rush. At least wait until the company's own business was stable, and then external business could naturally begin to develop.

"Yes, you're right. Once the logistics company is established, relying solely on our internal business will be enough for the shipping company to be very profitable. There's indeed no need to invest too much capital. When the logistics business develops in the future, we can reinvest the profits to continue development," Su Cheng thought for a moment and nodded.

Li Yihui shook his head inwardly, feeling a little envious.

HK$100 million was not a small amount. Among the companies listed on the Hong Kong Stock Exchange, only a handful had a market value of over HK$100 million. However, in Su Cheng's eyes, HK$100 million was just a small sum.

But thinking about it, he was now working for this world's richest man and was one of his key generals, so the future was promising.

Thinking of this, Li Yihui's mood improved.

"I suggest acquiring Daniel Harry's Dali Logistics Company. Although his company is on the verge of bankruptcy and owes hundreds of thousands of Hong Kong dollars in debt, Dali Logistics Company has developed very well. Starting development from Dali Logistics Company's foundation will be much smoother. Acquiring Dali Logistics Company now won't cost much. We only need to assume this million-dollar debt, and that's enough," Li Yihui suggested.

"You decide on this matter," Su Cheng said indifferently.

He didn't care about HK$100 million, let alone a million Hong Kong dollars.

Moreover, Su Cheng felt that if this acquisition allowed Mr. Daniel Harry to no longer be affected by external debt and focus wholeheartedly on developing the logistics company for him, then this million Hong Kong dollars would be very well spent.

What's more, they had already been developing for two years and had a very complete business. Su Cheng would also need to establish many industries in Singapore in the future.

"In that case, I am even more confident in persuading Mr. Daniel Harry to join us," Li Yihui said with a smile upon hearing Su Cheng's words.

Once the logistics and shipping company was established, it would greatly promote the development of Tianwen Petroleum Company.

"Alright, let's do it this way. I'll leave this to you. After you persuade Mr. Daniel Harry, I'll tell Mr. Bao to have them contact you to discuss the purchase of second-hand ships. I'll also find someone to find channels for second-hand aircraft for you," Su Cheng stood up and said.

Looking at the time, it was already past one in the afternoon.

"Boss, why not have a meal here? I'll have the kitchen prepare a few dishes for us separately," Li Yihui said with a smile.

"Okay, I'm a little hungry too," Su Cheng agreed.

Su Cheng hadn't had lunch since coming over from China Power.

In the afternoon, the two had a simple meal in the cafeteria. Afterward, under Li Yihui's leadership, they toured the entire Tuen Mun oil base.

Su Cheng hadn't paid attention to the construction progress here for a long time.

This time, Su Cheng discovered that the installation of equipment was basically coming to an end.

"In another month or so, the first phase of the project will be installed. After debugging for half a month, it can be officially put into production. After it is officially put into production, the second phase of the project can also start simultaneously," Li Yihui said as he led Su Cheng around.

"Tianwen Petroleum Company is counting on you. I have very high expectations for it. Don't let me down!" Su Cheng patted Li Yihui on the shoulder, looking at the industrial park in front of him, and said earnestly.

The area of the Tuen Mun oil base is very large, and the overall planned refining capacity is also very strong, with the ability to process 10 million tons of crude oil, produce 2 million tons of ethylene products, and 3 million tons of aromatics products annually.

Such a large-scale plan cannot be completed in a short period of time, so it can only be constructed in phases. It will take at least three years to fully build the entire Tuen Mun oil base.

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

For example, in at most two months, partial production can officially begin here. At that time, it will also be able to continuously refine oil, which, together with the refinery on Lamma Island, will be sufficient to meet the needs of He Ji Petroleum Company's gas stations in Hong Kong and Macau.

Then, when the Tuen Mun oil base expands again, the Nanyang Refinery on Lamma Island can officially retire.

At that time, Hong Kong Electric Group can discuss with Tianwen Petroleum Company the acquisition of the land of the Nanyang Refinery to build a power plant.