Chapter 451: Heavy Note
The domestic real estate market is booming, and local governments can get a huge amount of land transfer money from it.
In addition to the construction of infrastructure such as road pipe networks, communications, water and electricity, subways, and ring viaducts, a large number of public facilities such as schools, hospitals, libraries, gymnasiums, transportation hubs, and office buildings of municipal institutions have also been built.
Two thousand years later, in just eight or nine years in China, we can see that the old urban areas in various places are constantly being transformed, and new urban areas are also taking shape rapidly.
However, the new towns of Conero Newport City and Conero Lake Industrial Park do not have any commercial housing sales at all, and several residential areas that have been built are mainly rented out to enterprises in the park as staff dormitories.
Even if a local employee applies to buy a house, it is basically sold at cost price plus a small profit.
In the early stage, in order to attract more enterprises to settle in, the transfer of industrial land and taxes and fees are given as much as possible.
Newport City, Conero Lake Industrial Park and Huwan Processing Park have to undertake a large amount of public infrastructure construction only by relying on the transfer of industrial and commercial land at very low prices and meager tax sharing, and there is no possibility of making a profit in just seven or eight years.
Cao Mo wants to promote the merger of the three parks in the near future, and a new unified plan is already being made, and the scale of construction and investment attraction will be expanded in the future.
It is difficult to increase the land transfer fee and tax sharing income in a short period of time, but if the construction scale is to be increased as soon as possible, more funds need to be invested.
Xingang City does not see the possibility of profitability in the short term, so it is necessary to reduce the financial cost of interest as much as possible, and the financing can only be based on direct capital injection, and cannot be too much consideration of the loan money that needs to be repaid with interest.
Another way is to let the large and medium-sized enterprises with profitability in the park undertake part of the construction of public facilities as much as possible.
That's why Cao Mocai advocated that Volkov Petrochemical Group buy the thermal power station and sewage treatment plant for operation, and take care of the next expansion tasks, which will save the park about $100 million in construction funds over the next three years.
Of course, Cao Mo is not maliciously trying to delay the profit expectations of the Volkov Petrochemical Group.
Petroleum refining and the production of chemical raw materials require a large amount of steam supply, and it is also the largest sewage treatment scale of the Volkov Petrochemical Group. In the past, Taihua led the construction of the south bank of the south bank of Conero, in order to reduce the investment in the refinery as much as possible, and wanted to obtain as much financial subsidies as possible, so that the two public works were undertaken by Newport City, but now they are only adjusted.
After the construction of thermal power stations and sewage treatment plants, in addition to their own more stable operation, they can also provide charging services for other enterprises in the park, and can also obtain stable income, without worrying about losses.
The next plan of West Africa United Cement is to invest 100 million US dollars to undertake the construction and operation of high-standard communication and Internet infrastructure projects around Lake Conero, which is a big hole.
The enterprises introduced in the park are mainly in the primary processing industry, and have very low requirements for communication and Internet infrastructure, and it is impossible to pay a high price to purchase high-standard communication and Internet services.
West Africa United Cement undertakes the investment of the Internet communication company, not only is it difficult to recover the initial investment, and it may continue to paste a lot of operating expenses every year, but the construction specifications along the shore of Lake Conero should be appropriately improved, and these investments cannot be saved.
It is also necessary for West Africa United Cement and Vovkov Petrochemical Group to undertake the construction of these key public facilities, so that the park can concentrate funds to build a 100,000-ton container terminal and the new Huashang Mall by the end of next year.
However, Cao Mo's intentions, Dong Chengpeng and Guo Jiancheng will not understand.
In their eyes, Cao Mo was using his position as a major shareholder and actual controller to constantly squeeze Huamao and force them to retreat in spite of difficulties, while Huang Hebin saw that Cao Mo was powerful and had licked it like a dog, completely forgetting that it was only under Huamao's recommendation that he was able to return to Draculamo.
Dong Chengpeng has just arrived, and it is impossible to quarrel with Huang Hebin.
And all this mentioned by Huang Hebin, he has no right to make any decisions, and he still needs to inform Han Shaorong to see how Han Shaorong makes the final decision.
The next day, Dong Chengpeng rushed to Catro non-stop, and after meeting with Liang Yuan and the management team of Catro Iron and Steel Plant, he set off for Boso accompanied by Liang Yuan and Guo Jian.
From Draculamo to Catelo, the capital of Oyo State, the road conditions are relatively good, Dong Chengpeng already feels panicked, but taking an off-road vehicle into the road from Catro to Boso, which has been run over beyond recognition by heavy-duty minecarts, can be regarded as a truly profound understanding of Africa's backward infrastructure construction.
Dong Chengpeng, who got out of the car and vomited wildly after getting out of the car, turned pale, and only then did he understand why the transportation cost of transporting iron ore from Boso to the furnace of the Catro Iron and Steel Plant was so high.
Ryan Fortis, who was in charge of negotiating the acquisition of the Boesau Iron Ore Mine, and the negotiation team with Lekki Mining, were also in Bousso.
"Mr. Dong, your face is very bad, what's wrong, are you not feeling well after arriving in Africa?" Ryan Fortis looked at Dong Chengpeng with concern, he was now counting on the rapid advancement of the stall in his hand, but he didn't want Huamao's newly appointed representative to fall ill at this juncture.
"It's a bit ......bumpy on the road" Dong Chengpeng hasn't been abroad much over the years, and his spoken English is a little poor, but he can have a stunned conversation.
Now the parties have basically reached an agreement on Lekki Mining's acquisition of the Boso iron ore mine and the agreement with the director of the Catro Iron and Steel Plant.
After Sturgeon's partnership with Cao Mo was made public, Bardinay Savi Jr., who was teased, was furious and agreed to help coordinate the termination of the contract between the Catro Iron Works and the Mangba Iron Mine, and the board members of the Evans Foundation also agreed that Lekki Mining would push forward the construction of the Bosso-Catro railway as soon as possible, as long as Huamao and Xingang were involved.
This is also the reason why Ryan Fortis urged Liang Yuan and Guo Jian to bring Dong Chengpeng to Bosuo for a meeting as soon as possible.
After the completion of the Boso-Catro railway, the closer the annual traffic is to the design size, not only the lower the transportation cost will be amortized, but the faster the railway itself will be able to recoup its investment.
The Catro steel plant is currently designed to have a capacity of only 800,000 tons, which corresponds to 1.3 million to 1.5 million tons of refined iron ore demand, while a slow-speed freight railway usually needs 20 to 30 million tons a year to reach full capacity.
The annual production capacity of the Catro Iron and Steel Plant needs to be increased to 2 million tons, and the annual production of refined iron ore of the Boiso Iron Mine needs to be increased to more than 3.5 million tons to ensure that the Boso-Catro Railway can initially play its due economic value.
This is also the plan that the Catro Iron Works and the Boiso Iron Mine had when they first started to develop more than 20 years ago, but they have not been advanced for more than 20 years.
Ryan Fortis is now pushing for a revival of this solution, so that the Boesau-Catro steel complex, a steel-industrial complex, has the same status as the Tianyue family in the state of Oyo.
Of course, compared to the previous one, which only required a long-term supply agreement to get the Catro steel plant up and running, the new plan would require a total of $1.2 billion in additional investment.
Sitting down and listening to Ryan Fortis talk about the new plan, Dong Chengpeng felt a faint pain in his head.
When he saw Huang Hebin yesterday, Huamao was faced with the situation of adding $75 million to the Volkov Petrochemical Group, and Dong Chengpeng knew that Han Shaorong was not in a very good mood during this time, and when he talked on the phone last night, there was no matter of increasing the capital of the Ferkov Petrochemical Group for the time being.
He didn't expect to run non-stop today, and there was a bigger pit, waiting for Hua Mao to jump in.
In order to persuade Yu Jinjie and other shareholders of the new steel union to agree to sign the long-term agreement first, it took a lot of effort, I heard that the management of the new steel union almost fell out, and now it is about to promote a larger scale of investment so soon, how can the new steel union follow up with its eyes closed?
The Evans Foundation's copper-gold mine in the Usan River was put on the spot, and as Tianyue's roots in the Gulf of Guinea deepened, they were bound to have violent conflicts of interest in more areas.
The Evans Foundation is now thinking about suppressing and restricting the development and influence of Tianyue in the Gulf of Guinea in many ways, in addition to the past feud, but also to prepare for the future.
And the personal grievances between Han Shaorong and the Cao family directly determined the endless contradiction between Huamao and Tianyue.
However, is it necessary for the new steel union to come up with valuable cash flow to increase its bets in Africa?
Xinganglian was initially willing to invest in the Catro Iron and Steel Plant, but it still valued the Mangba iron ore, hoping that one day the refined iron ore produced by Mangba could be transported back to the steel mills of the New Ganglian in China through a giant ore ship, so as to get rid of the shadow of the current international iron ore supply controlled by the three major mining giants.
Now that they have agreed to temporarily terminate their cooperation with Mangba Iron Mine and sign a long-term agreement with Bosuo Iron Mine, Xinganglian has gone against its original intention - not to mention the board of directors of Xinganglian, and the management of Xinganglian is also resistant to the long-term agreement, and it is hard to imagine that they will support the new plan.
If the new steel union refuses to make additional investment, they still want to force the new plan, and the only feasible thing is for Huamao and Evans Foundation to share this huge investment.
Dong Chengpeng is very suspicious that Han Shaorong will add such a heavy bet in Africa because of his grudge with the Cao family!
"What, Mr. Dong thinks the new plan is not feasible?" Ryan Fortis asked as he stared at Dong Chengpeng's locked brow.
"It can't be said that it is not feasible......" Dong Chengpeng's spoken language was a little poor, and he was even more hesitant.
Kanem and the entire Gulf of Guinea region have huge oil revenues, but the industrial base is too poor, the demand for primary industrial products is quite strong, and the gap between supply and demand is large, which also makes the profit margins of many industries very attractive and attractive.
The rapid rise of Conero Cement in just a few years is a vivid example of what makes you want to plug your eyes.
Because the merger case involves dozens of large and small investors, the final plan is not a secret at all, and Guo Jian is not too incompetent, and he still makes the terms of the merger of West Africa United Cement generally clear.
In just five years, Cao Mo's wholly-owned Tianyue Investment has accumulated nearly $200 million in dividends from Conero Cement, and this merger transaction, in addition to retaining the equity valued at about $600 million, also received a total of $500 million in equity transfer compensation from other investors, including cash and equity assets.
This is the huge amount of wealth that Cao Mo has grabbed from the cement market in the Gulf of Guinea in just five years.
Cao Mo's reduction of his stake in West Africa United Cement, but taking the opportunity to expand his actual stake in the Volkov Petrochemical Group, undoubtedly saw the huge demand gap for fuel oil and primary chemical industry raw materials in the Gulf of Guinea region, so he will not stop promoting the construction of a new refinery in Cotonou, Benin.
Even though the global economy is still at a low ebb at this time, from the market in the Gulf of Guinea region, as the only large steel enterprise in the region, the annual production capacity of Catro Steel Plant has increased to two million tons, and the profit margin is huge.
The problem is that if the new steel union retreats, who will control such a huge industrial complex?
Dong Chengpeng has been investing in industries for many years, and he still knows very well that for an enterprise to operate well, the role of the operation and management team is too important, even more important than the industry market environment.
The miracle that Cao Mo created in Kanem, can others definitely replicate it?
To be honest, if the new steel union is willing to make additional heavy bets, and the new steel industry complex is dominated by the new steel industry complex from beginning to end, Dong Chengpeng still prefers that Huamao can participate, but if the new steel union retreats, the risk will be difficult to control.
Dong Chengpeng couldn't refute or attack Ryan Fortis and Liang Yuan's beautiful vision for the future, he stayed in the Bosso Iron Mine for two days, and when he returned to Draculamo, he talked to Han Shaorong on the phone and told Han Shaorong about his preliminary understanding of Kanem, the new plan proposed by Ryan Fortis and his views on the new plan.
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There is no such thing as an airtight wall.
Ryan Fortis's new plan will not be able to prevent the news from leaking out if it is discussed within the New Steel Union, Huamao, the Evans Foundation and Lekki Mining.
Although Lekki Mining's acquisition of the Boesau iron ore mine and the signing of a long-term agreement with the Catro steel plant involved the construction of the Boesau-Catro railway, it was a non-binding vision.
Even if all parties have extremely optimistic expectations for the Gulf of Guinea steel market, it is almost appropriate to wait for the Catelo steel plant to operate stably for three or four years and stabilize the production, sales system and local relations.
Ryan Fortes' new plan is to immediately promote the construction of the Boso-Catro railway, the second phase of the Catro steel plant and the construction of a larger concentrator at the Boesau iron ore mine.
The two are not the same thing at all.
"I'm looking forward to them making it!" said Brahm, as he had heard the news.
“...... Don't be so bad!"
Cao Mo jokingly said this, but in fact, like Brahm, he still particularly expects Huamao, Xinganglian and the Evans Foundation to promote the development of this steel industrial complex.
Ryan Fortis and Liang Yuan had the illusion that he was able to cover the sky on the shores of Lake Conero and in Oyo by virtue of the Governor of Oyo, Blake and the Sika family, the Felician family, and the Rupert family.
In fact, this is the usual method of the Evans Foundation, bribing and co-opting local elites and dignitaries, and exploiting local resources in a predatory manner, so as to accumulate huge wealth.
Their thinking inertia did not change, and they saw that the Blake family, the Felician family, and Sika were too deeply tied to Tianyue's interests, and other large and small chieftain families also had more or less interest exchanges with Tianyue, which doomed their previous simple and crude bribery and bribery methods to be ineffective in Oyo State, so they couldn't wait to use new means to share Tianyue's momentum in Oyo State.
In fact, Cao Mo didn't care about this at all.
What if the influence of the Evans Foundation in Oyo State is equal to that of Tianyue?
Tianyue has never thought about where to cover the sky with one hand, and all kinds of means and calculations that can see the light or cannot be seen in the past are just to check and balance others, and not to be bullied by others by means outside the market.
Tianyue's roots in Oyo have been completely consolidated, and the merger of West African United Cement has further penetrated into the political and business circles of Kanem.
More pragmatically, the construction of the Boiso Iron Mine-Catelo Iron and Steel Plant, an industrial complex, can objectively significantly reduce the price of steel in Kanem, and reduce the construction and operating costs of Cornello Newport City and many enterprises.
On the other hand, once the construction of the large industrial complex of the Boiso Iron Mine-Catelo Steel Plant starts, it will immediately boost the demand of the cement market in the Gulf of Guinea, which is good for the earnings of West African United Cement in the coming years.
What is more important is that the construction of the Boso Iron Mine-Catro Iron and Steel Complex is really started, especially the construction of the Boso-Catro railway, which will have a profound impact on the domestic situation in Akva.
Under the mediation of the Saviyi family, the Mangba Iron Mine should be able to terminate the contract with the Catro Iron Works very neatly.
The actual impact of this on the Mangba iron ore mine is actually not great.
The refined iron ore produced by Mangba is mainly supplied to steel enterprises in Northwest Africa and Southwest Africa, but once the Boso-Catro railway is completed, Boso Iron Ore will actually open up the bottle strength for transit and export through Draculamo Port, which constitutes a direct competition for Mangba Iron Ore.
Ryan Fortis, Liang Yuan, and the top members of the Evans Foundation's Board of Trustees ignored this, or they knew in their hearts how it would affect the Mamba Iron Mine, but they simply ignored it.
After all, they believe from the bottom of their hearts that the Saweiyi family is still the dictatorship of Akwa.
The reality has long since changed......
Brahm and the others expected Huamao and the Evans Foundation to make a big deal about the Boso iron ore mine, so they wanted to divide and win over the stakeholders closely related to Akwa and the Mangba iron ore mine, and add an extra weight to the balance on their side.
"I heard that the new steel union may not step on this pit," Yang Deshan said, "far from it, the new steel union sent to the Catelo steel plant operation team, the original plan is to train the local workforce, just leave a few people here to keep an eye on the team, other income is not very high middle management, engineers, are still thinking about going back." However, the Catelo Iron and Steel Plant has not been able to operate successfully to this day, and there have even been incidents of Chinese employees being beaten and threatened by miners...... For a long time, the development focus of the new steel union is in China, and in the past two years, it is planned to build a high-quality steel production base in Chonghai - without the participation of the new steel union, they seem to be a little unable to play!"
"Grandma's, if Dong Chengpeng and Liang Yuan, these turtle grandsons, know that we are so worried about them, what will they think? Forget it, let's not worry about them, what tricks they can play, let's watch, the key is to do our own thing first," Cao Mo patted his ass and stood up, and said, "I will return to China for a few days, and maybe I can have the opportunity to explore the tone of Xinganglian and Huamao......