Canadian shipments of crude by rail are poised to surge next year, spurring investment in new export infrastructure.
Western Canadian rail loadings had already climbed as high as 411,000 barrels a day in November despite a week-long Canadian National Railway Co. worker strike that disrupted shipments. Now they’re set to reach 550,000 barrels a day, Alberta Premier Jason Kenney said earlier this month.
Calgary-based Gibson Energy Inc. became the latest company to announce new rail projects in response to the rising demand. The company on Wednesday said it plans to build a million barrels of new storage tanks at its Hardisty, Alberta, terminal, where it also plans to construct and operate a diluent recovery unit that will allow it to send more oil-sands crude by train. SunCoke Energy Inc. and Summit Terminaling are developing a rail terminal to deliver Canadian heavy crude to Louisiana refineries.
Rail has became critical to oil exporters after pipelines filled to capacity two years ago, causing prices to collapse and prompting Alberta’s government to impose limits on some oil production at the start of the year. With no new pipelines scheduled to be built before late next year and projects such as the Trans Mountain pipeline expansion facing legal challenges, exports by train have picked up.
Alberta has eased production limits, causing heavy Canadian crude’s discount to the U.S. benchmark to widen to more than US$20 a barrel this month. At that level, crude-by-rail shipments become more economic, encouraging more cargoes, according to John Zahary, chief executive officer of Altex Energy Ltd, a crude-by-rail terminal operator.
“I think probably the next few months will get busier as we get into next year and these movements increase,” he said.
Tense diplomatic relations may not impact trade, investment ties between India, Canada: Experts
NEW DELHI: The tense diplomatic relations between India and Canada are unlikely to impact trade and investments between the two countries as economic ties are driven by commercial considerations, according to experts. Both India and Canada trade in complementary products and do not compete on similar products.
“Hence, the trade relationship will continue to grow and not be affected by day-to-day events,” Global Trade Research Initiative (GTRI) Co-Founder Ajay Srivastava said.
Certain political developments have led to a pause in negotiations for a free trade agreement between the two countries.
On September 10, Prime Minister Narendra Modi conveyed to his Canadian counterpart Justin Trudeau India’s strong concerns about the continuing anti-India activities of extremist elements in Canada that were promoting secessionism, inciting violence against its diplomats and threatening the Indian community there.
India on Tuesday announced the expulsion of a Canadian diplomat hours after Canada asked an Indian official to leave that country, citing a “potential” Indian link to the killing of a Khalistani separatist leader in June.
Srivastava said these recent events are unlikely to affect the deep-rooted people-to-people connections, trade, and economic ties between the two nations.
Bilateral trade between India and Canada has grown significantly in recent years, reaching USD 8.16 billion in 2022-23.
India’s exports (USD 4.1 billion) to Canada include pharmaceuticals, gems and jewellery, textiles, and machinery, while Canada’s exports to India (USD 4.06 billion) include pulses, timber, pulp and paper, and mining products.
On investments, he said that Canadian pension funds will continue investing in India on grounds of India’s large market and good return on money invested.
Canadian pension funds, by the end of 2022, had invested over USD 45 billion in India, making it the fourth-largest recipient of Canadian FDI in the world.
The top sectors for Canadian pension fund investment in India include infrastructure, renewable energy, technology, and financial services.
Mumbai-based exporter and Chairman of Technocraft Industries Sharad Kumar Saraf said the present frosty relations between India and Canada are certainly a cause for concern.
“However, the bilateral trade is entirely driven by commercial considerations. Political turmoil is of a temporary nature and should not be a reason to affect trade relations,” Saraf said.
He added that even with China, India has acrimonious relations but bilateral trade continues to remain healthy.
“In fact, bilateral trade is an effective tool to improve political relations. India must make special efforts to increase our bilateral trade with Canada,” Saraf said.
India and Canada have a strong education partnership. There are over 200 educational partnerships between Indian and Canadian institutions.
In addition, over 3,19,000 Indian students are enrolled in Canadian institutions, making them the largest international student cohort in Canada, according to GTRI.
According to the Canadian Bureau for International Education (CBIE), Indian students contributed USD 4.9 billion to the Canadian economy in 2021.
Indian students are the largest international student group in Canada, accounting for 20 per cent of all international students in 2021.
Benefits of educational partnerships are mutual and hence the current situation may have no impact on the relationship, Srivastava said.
Apple supplier Foxconn aims to double India jobs and investment
Apple supplier Foxconn aims to double its workforce and investment in India by next year, a company executive said on Sunday.
Taiwan-based Foxconn, the world’s largest contract manufacturer of electronics, has rapidly expanded its presence in India by investing in manufacturing facilities in the south of the country as the company seeks to move away from China.
V Lee, Foxconn’s representative in India, in a LinkedIn post to mark Indian Prime Minister Narendra Modi’s 73rd birthday, said the company was “aiming for another doubling of employment, FDI (foreign direct investment), and business size in India” by this time next year.
He did not give more details.
Foxconn already has an iPhone factory employing 40,000 people in the state of Tamil Nadu.
In August, the state of Karnataka said the firm will invest US$600 million for two projects to make casing components for iPhones and chip-making equipment.
The company’s Chairman Liu Young-way said in an earnings briefing last month that he sees a lot of potential in India, adding: “several billion dollars in investment is only a beginning”.
Taiwan election: Foxconn’s Terry Gou taps star-powered running mate
Last month, Foxconn’s billionaire founder Terry Gou said he would run for the Taiwanese presidency in next year’s election, as an independent candidate.
He said the ruling and independence-leaning Democratic Progressive Party (DPP) was unable to offer a bright future for the island and left Foxconn’s board following his decision to run.
The firm operates the world’s largest iPhone plant, in the city of Zhengzhou in Henan province.
Foxconn to double workforce, investment in India by ‘this time next year’
Why is rent going up faster in Brampton than everywhere else in Canada? – CTV News Toronto
Weak Euro-Area PMI Data Suggest Economy Facing Contraction – Financial Post
Vote “No” to Unifor's sellout Ford Canada contract! Build rank-and-File committees to fight for a North America-wide strike against the Detroit Three! – WSWS
Silver investment demand jumped 12% in 2019
Search for life on Mars accelerates as new bodies of water found below planet’s surface
Iran anticipates renewed protests amid social media shutdown
Business24 hours ago
Morgan Stanley Says All Oil Signals Flashing Tightness
Media23 hours ago
The Supreme Court showdown over social media “censorship” and free speech online
Business20 hours ago
Unifor made no concessions bargaining with Ford: Lana Payne
News24 hours ago
Canada recall: Shimano bike cranksets removed over crash hazard
Real eState19 hours ago
Why experts say predictability is returning to Ontario’s real estate market
Media24 hours ago
FIRST READING: How Indian media is portraying Canada through all this (not well)
Real eState14 hours ago
Sales trend below average in qathet: real estate board
Art24 hours ago
You won’t find a more beautiful art tour in Alberta