Chapter 194: Railway
"Why, you want to get involved in this industry too?" Prince Karl Anton asked.
"Not really, it's mainly to test the waters in the colony." Ernst didn't hide it either, and said directly.
"I'm afraid this is a little difficult to do!" Prince Karl Anton said without thinking, "Although I am optimistic about your talent for business, I am afraid that this matter will be difficult for you to make a profit!" ”
According to Prince Karl Anton's idea, what would the colony do if it was used to lose money?
"Uncle Carl, when I say test the water, I mean to build only a short distance, and I don't mean to spread it out on a large scale in East Africa." Ernst said.
"That's not right! If you're just building and playing, you don't need to ask me at all! You go directly to a German railway company, and they should be able to start work directly! And I'm sure that no one in your capacity would dare to trick you. Prince Karl Anton said.
In the eyes of Prince Karl Anton, Ernst is now a great nobleman and a big capitalist in Germany, and this configuration is simply an invincible golden body.
Moreover, Ernst also said that he would test the waters, and no blind Deutsche Bahn would offend a future prince and business tycoon for such a small benefit.
"Actually, Uncle Carl, I'm also coveting the railroad market, but I also know that the railroad is different from what I used to do.
The railway technology is now very mature, the threshold is very high, the most important thing is that there are many railway companies in the German region, and now it must be thankless to enter directly.
But I am optimistic about the future development of the railway, there is no opportunity now, it does not mean that there is no opportunity in the future, the problem is that there will be opportunities in the future, and we must be able to grasp it, so I want to lay out it in advance. Ernst said.
"I kind of see what you mean! You really want to do this business now, but you are not optimistic about the market prospects in the near future, so you don't want to enter the market on a large scale, but want to get a smaller one first, accumulate experience and prepare for the future, right? Prince Karl Anton asked.
"Uncle Karl, this is exactly what I want to express, and I also have a purpose, as you know, I don't have any big business in East Africa, in fact, I am organizing immigrants to farm there, so the commodity transportation in East Africa is mainly grain, timber and other bulk commodities.
These goods are stupid and stupid, but if they can't be shipped to Europe, it will be a real loss-making business, and I will make the colonies count on this little grain and material production capacity to return some blood.
However, the transportation conditions of East Africa are the biggest obstacle to the transportation of these things, and in the case of East Africa, there is no coherent river, and it flows directly from the highlands and mountains to the coast, and the navigation conditions are only 100 kilometers.
Water transportation was not working, so I thought of the railway, but the cost of the railway is too high, and I have to experiment in East Africa before I can make up my mind to promote it. Ernst said.
After hearing this, Prince Karl Anton thought for a moment and asked, "I have a question, you see that the main industry in East Africa is agriculture, right?" The scale is large, and agriculture is indeed very profitable, but if you transport grain from East Africa to Europe, the cost of shipping is not small, and you have to face the competition of Germany, Hungary, France, and Tsarist Russia for grain production, can you really make money?
And I heard your father say that you have to pay the cost alone, bringing in immigrants from outside, not the local natives, which is another expense, so where is the profit point of this colony in East Africa? ”
In fact, Prince Karl Anton knew that overseas colonies were very profitable, otherwise the British would have become the hegemon of the seas with that island?
As an authentic old German Juncker, Prince Karl Anton really didn't know much about the operation of overseas colonies.
After all, Austria had experience in the entire German region, but it turned out that Austria's attempts failed.
In recent decades, the European continent was not at peace, first Napoleon stirred up the storm, then the Crimean War, then Prussia fought two more battles with Denmark, and finally fought with the Austrian Empire.
Everyone's minds were focused on the European continent, and so was the old statesman Prince Carl Anton, but the recent trip to East Africa by Prince Konstantin of Heixingen made Prince Karl Anton interested in the colony of East Africa.
It's a pity that Konstantin has already gone to East Africa, so Prince Karl Anton simply asked Ernst.
"Uncle Carl, the East African colony is a long-term business, and it is not good or bad at the moment, after all, the East African colony is just a leftover material that the great powers do not look at, and there are no particularly outstanding advantages.
So when I was running the East African colony, I didn't think that he would be profitable, but I tried to make him lose as little as possible.
Although the grain is not profitable, it is in large quantities, which is also the advantage of the few East African colonies, and the land area is large enough.
Although it can't be sold at a high price, the cost of production in East Africa is also low, the land is ready-made, but it needs to be developed, and the immigrants are only responsible for their ship fares, food and clothing, and there is abundant cheap labor.
It is indeed unrealistic for the East African colonies to make money now, but it is possible in the future, but the risks overseas are also high, so they cancel each other out.
However, setting up a factory in Europe at the moment is definitely a profitable business with high profits. Ernst said.
In fact, the East African colonies are now able to make even payments, and there is a slight surplus, after all, East Africa mainly makes money from cash crops, and the market in East Africa is not only Europe, but also North Africa and the Middle East.
It's not that Ernst is hiding his own money, it is indeed very risky to develop colonies in this era, and Ernst also took advantage of the loophole and picked a good time and a good place.
"That's it! It seems that it is not easy to develop overseas, and I am just curious, so I asked. Prince Karl Anton said.
"Uncle Carl, in fact, there are good places overseas, but that kind of place has long been scraped up by those maritime countries." Ernst said.
"Alright, let's not talk about that! Let's move on to the railway! If you have any plans, just say it, don't go all the way around with me. Prince Karl Anton said.
"Uncle Carl, since that's the case, I'll say it bluntly, I actually want to directly buy a railway company, the scale doesn't need to be too big, but I must have construction experience, but after all, I'm not a person in that circle, and I don't know much about the cats in it, so I came to you to find out about the situation." Ernst said.
The railways in Germany are developing rapidly, and there are many large and small companies, some of them are practical, and naturally there are also those who are full of trains.
Although Ernst is also a capitalist, he can operate in different fields, and if he enters rashly, the other party may not dare to pit himself, and the railway is one of the pillar industries of Germany, and the energy of those people is not much weaker than that of Ernst, and even the relationship with the government is closer.
Business naturally means that the fewer competitors the better, and a businessman with deep pockets like Ernst would certainly attract attention when he entered the railway sector.
And Ernst didn't want to get along with these people, to be honest, the fundamental reason why he wanted to squeeze into this industry was to accumulate relevant technology and experience for East Africa.
Moreover, the railway market is in a good form now, but this will not be the case in the future, and when the whole market is full of mourning, it is the time for Ernst to enter in a big way.
(End of chapter)