Member Info for MikeGP

Foxy,... Yes.. home,.... 12 week lockdown,..... weak .. but much, much better. Thank you for asking!

Trust you are safe and well,.... although be careful,.. else the RSPCA might be after you!!
Best

"Off out to chase the cat with a pressure washer/foam canon combo’."
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Thank goodness one of us has come up with something useful to do today! :-)
Best

...it's going to be part of the road to recovery.
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Why do you think that low oil prices is bad for international travel?

Do you think that low oil prices is good or bad for the transport businesses,.. for airlines?

We get paid by the number of passengers flying,… and if flight prices are low,.. those numbers go up?

Do you think that low oil prices is good or bad for shipping companies?

Good or bad for manufacturing businesses?

Good or bad for the import and export of those goods?

Couple low oil prices with low interest rates, which are probably here for another decade, is that good or bad for business?

We are already seeing the first signs of lock down easing.

The recent export data from China is a good illustration, back to similar levels as at this time last year.

America is chomping at the bit.

Central European countries are beginning to move.

This period will end… and quite possibly much sooner than a lot of us expect.

And guess what,…. even when things do get moving,…. — what lessons will we have learned?

We will have learned that in the future,… we need to be ready, .. ready for the next pandemic,..vwhich will come.

We will have learned that we need to be prepared in advance,… with screening equipment and staff trained up and ready to go,… with procedures put in place to monitor and control screening at airports and ports.

If only we knew of a company who could help with that….. who has and is already supply millions of pounds of screening equipment…a month! Who has the ability to provide screening at ports,… and airports,.. who can offer training on and off site…..— the business opportunity for WSG to develop this market doesn’t just end when we beat C-Vid…. this opportunity and ‘new’ market is here forever.

Aiming,... .sorry I didn't address one of the points that you made.

Agreed,.. part of that increase 59% will absolutely be related to the slow start up/bedding in phase,... but it will also be due to the third berth coming online at the end of 2019 and attracting new business to the port,.. as per the link I posted.

Best

Best

A,..
Hi,... it is the daily average in 2019,... compared with the daily average in 2020,.. up to the time date that the RNS was issued. So Yes,.. we can....Because it is the daily average,.. it is a like for like comparison... and PROVIDING.... the rate of scanning remains as it was when they issued the RNS......than the average will remain the same. --

IF the increased capacity coming on line allows us to scan more containers, than we are currently scanning, than that figure will go up...---- if the C-Vid,...causes a reduction in scanning,.. that too will come in to play.

We are effectively having a debate about whether the new capacity that is going to come on line this year,.. will outstrip any reduction in container screening due to C-vid.( if there is a reduction)..... and where that leaves us.

We have started the year,... for pretty much all of the 1st quarter, scanning,... on average 59% more containers per day than we did in 2019.

That's what we know.

That is all we know... and by monitoring ship movements you can see that we are servicing ships at circa 10 a week.

Best.

"We are also pleased to report that container volumes and revenues relating to the project continue to increase with the daily averages so far in 2020 being a 59% increase on the 2019 daily average .."

Daily average,... compared with daily average...---- it makes no mention of annual comparison.. and clearly since we are being paid on containers scanned,... the 59% increase is the same for sales as container numbers.-- which in itself is interesting.... because if the amount we were being paid was on a sliding scale,... ie those wouldn't be the same.

If you use a bit a common sense,... if the same daily averaged continues for the whole of the year.... than the year will be up 59% on the previous year. So in your scenario.. it is definitely A,.. if it continues at the same rate,.. it could be A & B. Hope that helps.

If you not, suggest you contact Peter direct: p.fowler@wg-plc.com

BE,

I really fail to understand why you query that figure. It was a guess,.. or a forward looking estimate,..it was factual based upon the TEU's scanned up until that date. ... and if you consider that any average daily rate in 2019 will be skewed because of the slow ramp up at launch,.. and the fact that an additional berth came on line at the end of the year,... with ships being serviced rising from a start up rate 6 or 7 a week, to 10-13 a week. I fail to see why you have an issue with this?

The '59%" quote IS factual, as of the time of the RNS, dated 12th March.

It isn't a forward looking figure, albeit at that time they were anticipating a further increase, which would be driven by the additional berths coming online in 2020. ( both of which have /are being delivered ahead of schedule).

The very fact that they gave us that number,.. does at least give us some way of assessing the effect of the virus, on where we were in Mid-march,.. as we go forward. I agree that the impact from the virus probably won't show itself until Q2 and Q3.,.. by which time another AGM will be upon us and we will have plenty of opportunity to grill the BoD over the dodgy sandwiches,... assuming we aren't still in lock-down!!!

Best
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"We are also pleased to report that container volumes and revenues relating to the project continue to increase with the daily averages so far in 2020 being a 59% increase on the 2019 daily average and we expect volumes to increase further during 2020 as the port continues to expand and the third and fourth berths become operational."

https://www.lse.co.uk/rns/WSG/ghana-screening-project-update-i2jzrqf1b7lzjel.html

Some of the Chna stats... and source info.
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Exports from China dropped 6.6 percent year-on-year to USD 185.15 billion in March 2020, compared with market estimates of a 14.0 percent fall and after a 17.2 percent plunge in January-February combined, amid the coronavirus pandemic. Sales of unwrought aluminium and products fell 5 percent, but were still at their highest since May 2019. Meanwhile, exports of steel products increased 2.3 percent and those of rare earth jumped 19.2 percent, the largest annual advance since 2014, as the industry appeared to recover from the coronavirus outbreak. Among the biggest trade partners, exports fell to the US (-20.8 percent), Australia (-8.6 percent) and Japan (-1.4 percent), but rose to ASEAN (7.7 percent), Taiwan (4.0 percent) and South Korea (1.2 percent). Considering the first quarter of 2020, exports declined 13.3 percent from a year earlier.

https://tradingeconomics.com/china/exports

BE,

I'm not sure that you can't really make any direct comparison between global container traffic in a world recession over 15 years ago,.. and what will play out for Tema. Sure, you can generalise and say that if the whole world suffers in a recession then there will be some effect on Ghana too.

However, the current situation in Tema, has many 'localised' in play,... not least the major expansion creating a state of the art deep water berth which is arguably one of, if not the best in class, in this region. The current facilities bears no resemblance to the Tema of 11 years ago,.. or even 2 years ago. It is this redevelopment that is the primary driver of growth as completely new transportation routes have and are being attracted to the port.

In addition,.. a large amount of cargo handled through Tema is in transhipment and goes on to 'feed' into other land locked West African countries,.. who will still be heavily reliant ( perhaps, even more reliant ).. on the their TemaPort/supply chain remaining open.

We'll just have to see how it pans out, but i would suggest that things aren't necessarily as black and white as you suggest. My reading of the China situation is that their ports have been largely operational now for several weeks, albeit at lower capacity. There appears to be a large fall in Jan and Feb,.. but March has shown a strong bounce- to levels similar to March 2019- so year on year, no change....what that actually means for Tema,..is also anybodies guess.
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Just one of the above ... as one example..

"German-based transportation firm Hapag-Lloyd announced Meridian Port Services (MPS) Terminal 3 at Tema Port as its transhipment hub in West Africa. Tema Port was announced as the firm’s transhipment hub at a press conference held in Cape Town, according to a regional media report.

MPS Terminal 3 has enhanced Tema Port’s container storage, reefer facility, handling equipment capacity.

It marks the launch of a new shipment service to Africa. The new shipment service known as Middle East-India-Africa Express (MIIAX) had is first departure this month.

The MIIAX service will follow this rotational sequence from Jebel Ali to Mundra to Nhava Sheva to Colombo to La Réunion to Durban to Cape Town to Tema followed by Lagos and then back to Cape Town, Durban and Jebel Ali."

https://internationalfinance.com/tema-port-becomes-hapag-lloyds-transshipment-hub-west-africa/

Sir Swish,... the problem with a managed service are many... -- we can't afford to contract and train our own staff,.. and then send them all over the world,.. putting them up in accommodation etc.,... for what might be a relatively short term gig,.. ie less than 12months--- it just isn't doable.-- HOWEVER,.. we can supply the kit and online training for thousands of people from our headquarters in Banbury. -- a supply and install fee, pus a training fee. Job done.

Foxxy,

Agreed,.. you can't build a business on the strength of a pandemic. But likewise,... it's not consistent for some on here to preach doom on gloom, citing loss of revenues at Lunghi etc.,.. whilst at the same time failing to acknowledge the current 'new' income arising from the c-vid sales. Circa £1.5M in March alone... if those rates of sales continue for the next, even 2 or 3 months.... ie another £3-5M,... in for Q2... that is significant. Given the US government guidance issued overnight,.... getting America back to work,.. and the requirement for fever detection scanning at workplaces.... I can see sales remaining buoyant for the immediate future.

And as to long term sales of this equipment,.... well the cat is out of the bag now,... and IMHO,..some of type of screening is now here to stay would be my guess.

Surely we are due an update on the February in country meetings etc.,
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"In June 2019, we announced we were forming a 50.1% Group owned joint venture subsidiary, registered in Saudi Arabia, under the name Westminster Arabia. Our JV partners are Hazar International who, under their impressive Chairman, Sheikh Salman Bin Mohammed Bin Khalid Bin Hethlain, are strong and influential partners. An experienced business development team is now in place within the country and is already involved in several large-scale project opportunities in the Kingdom. One of several projects already being pursued in the Kingdom is Saudi ports and in 2019 at the request of the authorities we conducted detailed operational and vulnerability assessments at certain ports following which, the Westminster team are booked to meet with the port authorities in February 2020 for more detailed discussions regarding port security solutions."

Foxy,...

"Let me spin it for you. Lungi c£4m. Tema c£4m. "
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You can add £3.1M Tech sales to the above,.. for Q1 20 alone...(.. made up of the $2.1M already reported and the final payment of the Middle eastern contract that slipped in to Q1 of this year, $1.8M (?).. circa $3.9M USD.. so about £3.1M.)... given the rate of sales in March we could be over the £4M mark in tech sales. Granted margin is an unknown,... the last figure I believe I remember seeing was circa 12%... but I would imagine that is higher now, given the supply and demand situation?

Best

Guidelines just issued for opening up America,... in the Employers section,.. states that they must have measures in place to carry out temperature checks on Employees returning to work.

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"Guidelines for All Phases: Employers
Develop and implement appropriate policies, in accordance with Federal, State, and local regulations and guidance, and informed by industry best practices, regarding:
? Social distancing and protective equipment ? Temperature checks
? Testing, isolating, and contact tracing
? Sanitation
? Use and disinfection of common and high-traffic areas ? Business travel
Monitor workforce for indicative symptoms. Do not allow symptomatic people to physically return to work until cleared by a medical provider.
Develop and implement policies and procedures for workforce contact tracing following employee COVID+ test."

wpa5,

Absolutey.

And the good thing is,.... that this might have forced their hand in too providing 'on-line' training,..... but once it is up and running,.... it is a 'new'... revenue stream which they can actively promote and grow.
Best

Feeks,.. if that report is accurate and the works are all complete in May,..which it seems to imply ( so I assume that includes the 4th berth) than that is 6 months ahead of the previously reported December 2020 date.. ( which was, in turn ahead of the original completion date). So great is great news.

836k TEU ( 2018 ) x 5% increase up to Nov 2019

Where does that come from please?...and why haven't you included the 59% increase as per WSG RNS?

"...as even if the entire Chinese import contribution of 23% was 50% down it would equate to circa 8k crates per month for Jan & Feb """..

Please post your numbers.

Foxxy,... think chJ67...is referring to Big ears..09.03am

Vander,

You may well be right that the overall cargo in and out of Ghana will down down during this period,. it's probably true the world over. But at Tema, where we earn our money,... you have to balance that against the fact that we will be doubling the ports deep berth, state of the art, container handling facilities during the course of the year, with two more berths coming online.

With the government confirming that they consider keeping the Port operational as essential to the economy etc., it is possible that we will see an increase in TEU's volume through Tema? The 1st quarter of this year was substantially up on last year, 59% y/o/y.... and the company reporting that they expected further increases.

From RNS:

"We are also pleased to report that container volumes and revenues relating to the project continue to increase with the daily averages so far in 2020 being a 59% increase on the 2019 daily average and we expect volumes to increase further during 2020 as the port continues to expand and the third and fourth berths become operational."

Just over two weeks now until we get the financials for last year, which will show double digit growth for 2019 and hopefully an update on current operations, including C-Vid sales, which, over the past couple of months have become a significant part of sales revenue.

As 'testing' and 'monitoring' is likely to be an important part of the strategy going forward, in getting people back to work,..--- it's very easy to see how the use scanners fever detection scanners might being rolled out to businesses, checking for symptoms as staff enter premises etc.,. As lock-down is relaxed, I could see the government making something like that mandatory for businesses with high staff levels that wish to open?