Major International Business Headlines Brief::: 27 June 2019
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Major International Business Headlines Brief::: 27 June 2019
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* Nigerian court adjourns tax case between MTN and attorney general
* Airtel Africa to price London listing at bottom of range - bookrunner
* Sibanye-Stillwater to sell 51% stake in Canadian PGM-copper project
* South Africa's PPC picks ex-Lafarge veteran van Wiljnen as CEO
* South Africa's 2019 maize crop to tick up marginally from previous
estimate
* Barrick stands firm, saying Acacia's mine plans need changes
* South Africa's Exxaro says Eskom woes to hit coal production
* Boeing suffers new 737 Max issue that could delay return
* Wayfair staff to walk out over sales to detention centres
* China suspends some Canadian pork imports as tensions rise
* Flat-pack home? Ikea moves in on UK housing
* Sharp fall in foreign investment in UK
* Caledonian Sleeper Highland service launch delayed
* Bonmarché seeks rescue bid after 'poor' sales
* £2bn rail upgrade proposal put forward for Midlands
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Nigerian court adjourns tax case between MTN and attorney general
LAGOS (Reuters) - A Nigerian judge on Wednesday adjourned until Oct. 29 a
case to resolve a $2 billion tax dispute between South African telecoms
company MTN Group and Nigeria’s attorney general.
The attorney general has demanded MTN pay the $2 billion in September. The
company has said the tax demand is without merit and the attorney general
has exceeded his powers in making the request.
Lawyers for the government requested the adjournment.
Nigeria is MTN’s biggest market, with 58 million users in 2018 and
accounting for a third of the South African firm’s core profit. But the
Nigerian business has faced challenges, ranging from the tax demand to a
fine over unregistered SIM cards.
MTN Nigeria, the company’s local unit, listed in Lagos in May in a 2
trillion naira ($6.5 billion) flotation and became the second-largest stock
on the bourse by market value.
The listing followed MTN Group’s agreement with Nigerian regulators to
settle most of its long-running disputes.
MTN said it would sell more shares to the public and increase local
ownership in MTN Nigeria once the tax row was resolved.
MTN agreed in December to make a $53 million payment to resolve a separate
dispute in Nigeria after the central bank ordered the company and its
lenders to bring back to Nigeria $8.1 billion it was alleged to have
repatriated using improperly issued paperwork between 2007 and 2008.
The settlement ended a four-month row that had hammered MTN’s share price in
Johannesburg.
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Airtel Africa to price London listing at bottom of range - bookrunner
(Reuters) - Airtel Africa Ltd’s planned initial public offering on the
London Stock Exchange is expected to price at 80 pence, the bottom end of
its indicated price range, one of the bookrunners handling the sale said.
Airtel Africa, a unit of India’s Bharti Airtel Ltd, last week set a price
range of 80 to 100 pence per share for its IPO, which is expected to raise
595 million pounds from the issuance of 595.2 million to 744 million new
shares.
The bookrunner, which said on Monday it had received indications of interest
worth about $200 million from pre-IPO investors, said it had further
investor orders of $100 million.
Sibanye-Stillwater to sell 51% stake in Canadian PGM-copper project
JOHANNESBURG (Reuters) - South Africa’s Sibanye-Stillwater is to sell a 51%
stake in its PGM-copper project in northern Ontario to Generation Mining Ltd
in a deal to further develop the asset, the previous miner said on
Wednesdaay.
Sibanye-Stillwater will receive 3.0 million Canadian dollars ($2.28 million)
in upfront proceeds and 11 million shares at 0.2714 Canadian dollars per
share in Generation Mining, equating to a 12.9% equity stake. In exchange,
the Canadian miner will have a 51% stake in the project adjacent to Lake
Superior and form a joint venture with Sibanye-Stillwater Canada.
Generation Mining, an exploration-focused company, will advance the project,
which Sibanye acquired in May 2017, and will conclude further studies on its
development, Sibanye-Stillwater said.
“We are pleased to enter into this agreement which unlocks immediate value
for the Group and ensures appropriate investment and focus on the Marathon
project, whilst we maintain our attention on our core US PGM operations,”
Sibanye-Stillwater Chief Executive Officer Neal Froneman said in the
statement.
Sibanye expects the deal to be completed by mid-July.
Generation Mining, which will be the operator of the joint venture, will
also have the right to earn an additional 29% interest within four years, by
making total cash expenditures of at least 10 million Canadian dollars and
delivering a preliminary economic assessment.
($1 = 1.3160 Canadian dollars)
South Africa's PPC picks ex-Lafarge veteran van Wiljnen as CEO
JOHANNESBURG (Reuters) - South African cement company PPC named
ex-LafargeHolcim veteran Roland van Wiljnen as its new chief executive on
Wednesday after a near seven-month search.
Van Wiljen, who will start as soon as he receives a work permit, takes over
at a tough time for PPC, which operates in six African countries, as a weak
local economy has left it dependent on growth in the rest of the continent.
PPC said the Dutchman has signed a four-year contract to replace John
Classen who retired in November. Obtaining a South African work permit for
van Wiljnen is a process which could take weeks or months.
Van Wiljnen, a former CEO of LafargeHolcim’s Philippines unit, worked in the
Swiss buildings company’s South African and Eastern European divisions
during his 17-year career there.
“He is an ideal appointment as he already has a detailed knowledge of the
cement sector. He is up-to-speed with our strategic imperatives and will
advance the process without any delays,” PPC chair Jabu Moleketi said in a
statement.
PPC, which was due to report its latest results on Wednesday but has
postponed their release until Friday, did not explain why it had taken so
long to find a replacement for Classen, but said it had conducted a global
search.
At its last half-year results in November, PPC’s earnings per share rose 11%
on strong growth in the rest of Africa which offset a weak performance in
its home market.
South Africa's 2019 maize crop to tick up marginally from previous estimate
JOHANNESBURG (Reuters) - South Africa is expected to harvest slightly more
maize in 2019 compared with the previous month’s forecast after higher
yellow maize yields in some provinces, the government’s Crop Estimates
Committee (CEC) said on Wednesday.
The CEC, which gave its fifth estimate for the 2018/2019 season, estimated
production to be up 0.3% at 10.933 million tonnes compared with the May
estimate which had projected that the harvest would be 10.900 million
tonnes.
The harvest is projected to consist of 5.488 million tonnes of the food
staple white maize and 5.445 million tonnes of yellow maize which is
primarily used for animal feed, said the CEC.
The CEC said yellow maize yields rose in Mpumalanga, Gauteng and North West
provinces.
The estimate for the 2018/2019 season is 12.6% less than the 12.510 million
tonnes harvested in the 2017/2018 season after dry weather condition delayed
plantings.
The harvest is 0.16% lower than projected by the Reuters survey of traders
and analysts, which pegged the harvest at 10.95 million tonnes.
Barrick stands firm, saying Acacia's mine plans need changes
(Reuters) - Barrick Gold Corp on Wednesday stuck to its offer to buy out
Acacia Mining, saying assumptions made by the smaller firm about its mine
plans were out of touch and changes were indeed needed.
Acacia said majority shareholder Barrick’s proposal undervalued its mine
plans and appears to have ignored the value of its exploration and
development assets.
Barrick, the world’s second largest gold miner, had valued Acacia’s assets
at $1.3 billion in its 2018 annual report but said last week that following
a review it concluded some of Acacia’s assumptions about its assets were not
supportable.
Barrick fired back on Wednesday that Acacia had not raised any points that
it was not already aware of.
Barrick’s proposal to take full control of Acacia to resolve a long-standing
tax dispute with Tanzania has drawn the ire of Acacia’s minority
shareholders, who may have the ultimate vote on a deal.
Barrick spun off Acacia in 2010, but maintains a 63.9% stake. Its proposal
last month followed two years of wrangling over a $190 billion Tanzanian tax
bill, which has since been reduced to $300 million.
Acacia disagreed with Barrick’s valuation and said a fair value buyout offer
from Barrick would be attractive. Barrick said on Wednesday its proposed
offer reflects the fair value of Acacia.
Acacia has said its life of mine plans have been formulated in line with
“industry standard methodology”, adding that it hosted Barrick
representatives for site visits during the first quarter of 2019 and gave
Barrick its draft life of mine plans.
South Africa's Exxaro says Eskom woes to hit coal production
JOHANNESBURG (Reuters) - South African miner Exxaro Resources expects its
coal production to fall by 5% by volume in the first half of 2019, mainly
due to reduced demand from struggling state-owned power utility Eskom, it
said on Wednesday.
It added it expects domestic coal demand and pricing to remain stable for
the remainder of the year, but does not see a recovery from the
international price/ demand situation.
Slowing economic growth in China is weighing on demand expectations for
thermal coal in the world’s biggest market for the fuel, while global moves
towards cleaner energy are compounding problems arising from a glut in
supply.
The supply-demand tandem is likely to keep prices for coal used in power
plants under pressure in coming months.
Exxaro Finance Director Riaan Koppeschaar said in a statement a contractual
agreement with Eskom would help mitigate the reduced volumes at home.
“China will continue to influence the supply/demand balance in the Pacific
with related potential price volatility,” he added.
Coal capital expenditure (capex) in 2019 is expected to be 9% lower than
guided in March, primarily because of delays with the Grootegeluk 6 plant
expansion project.
Delays in finalising approvals for Thabametsi coal-fired power plant and
lenders withdrawing their funding to old coal technology coal-fired power
stations also contributed to the lower capex spend forecast.
Exxaro is also feeling the impact of Group Five’s cash-flow problems which
resulted in the struggling construction firm being placed under “business
rescue”, similar to U.S. Chapter 11 bankruptcy protection in March.
During the first quarter, Exxaro was forced to terminate its contract with
now de-listed Group Five, who was responsible for parts of the Grootegeluk 6
expansion.
Responding to South Africa’s long-delayed carbon tax, which became law in
May, Exxaro said it would have a low impact on its organisation as its
relevant emissions were not significant.
Boeing suffers new 737 Max issue that could delay return
US regulators have uncovered a possible new flaw in Boeing's troubled 737
Max aircraft that is likely to push back test flights.
The Federal Aviation Administration (FAA) said it identified the "potential
risk" during simulator tests, but did not reveal specific details.
Boeing's top-selling aircraft was grounded in March after two crashes.
The company is upgrading the aircraft's anti-stall software, which is the
focus of crash investigators.
In a tweet, the FAA said: "On the most recent issue, the FAA's process is
designed to discover and highlight potential risks. The FAA recently found a
potential risk that Boeing must mitigate."
Last month, the FAA indicated that approval of Boeing's changes to the 737
Max could come in late June. That would have allowed test flights in early
July.
There were initial hopes among airlines that the 737 Max would be back in
the air during the summer, but that timetable was pushed back to late this
year even before the latest news.
Reuters, which first reported the new issue, said during an FAA pilot
simulation in which the stall-prevention system was activated, it took
longer than expected to recover the aircraft.
Other sources said the problem was linked to the aircraft's computing power
and whether the processor lacked enough capacity to keep up.
Boeing said "we are working closely with the FAA to safely return the Max to
service" and that it believed a software fix would address the problem.
But the FAA will be looking into whether it is a hardware issue.
If regulators are unsatisfied with the software fix, the microprocessor unit
would have to be replaced and the grounding could stretch on for months
longer than previously thought.
The loss of Ethiopian flight ET302 in March was the second fatal accident
involving a 737 Max in the space of five months. A near identical aircraft,
owned by the Indonesian carrier Lion Air, went down in the sea off Jakarta
in October 2018.
Preliminary reports into both accidents have suggested that they were
triggered by a flight control system deploying at the wrong time, due to a
faulty sensor.
The FAA has been criticised for its lack of oversight and the certification
process that cleared the Max to fly.
Earlier this month, Captain Chesley Sullenberger, whose landing of a
crippled aircraft on New York's Hudson River was turned into a Hollywood
film, told a Congressional hearing into the 737 Max that the "crashes are
demonstrable evidence that our current system of design and certification
has failed us".--BBC
Wayfair staff to walk out over sales to detention centres
Hundreds of US staff at furniture giant Wayfair have walked out after the
firm sold furnishings to border camps in Texas used to detain immigrants.
Employees gathered outside Wayfair's Boston HQ after more than 500 staff
signed a letter urging the firm to "cease all business with border camps".
Wayfair sold about $200,000 (£157,690) in bedroom furniture to a detention
centre for migrant children.
The Trump administration faces widespread criticism over the camps.
"We believe that the current actions of the United States and their
contractors at the Southern border do not represent an ethical business
partnership Wayfair should choose to be part of," staff wrote in the letter,
which was addressed to Wayfair's management.
"At Wayfair, we believe that 'everyone should live in a home that they
love'. Let's stay true to that message by taking a stand against the
reprehensible practice of separating families, which denies them any home at
all."
Almost 22,000 people have followed a Twitter account, @wayfairwalkout, set
up for the protest, and staff from other Wayfair sites across the country
have posted in a Facebook event asking how they can support the protest.
Some in the crowd carried signs with messages including "a cage is not a
home" and "a prison with a bed is still a prison".
'Standard practice'
On Tuesday, Wayfair wrote in a letter to employees, circulated by staff on
Twitter: "As a retailer, it is standard practice to fulfil orders for all
customers and we believe it is our business to sell to any customer who is
acting within the laws of the countries within which we operate.
"We believe all our stakeholders, employees, customers, investors and
suppliers included, are best served by our commitment to fulfil all orders.
This does not indicate support for the opinions or actions of the groups or
individuals who purchase from us."
There were reports that the company is donating $100,000 to the American Red
Cross. The company has yet to respond to a BBC request for comment.
Wayfair's shares fell 5.3% on Tuesday, but were up 1% on Wednesday.
Democratic presidential candidate Senator Elizabeth Warren has joined in the
conversation on social media.
She posted on Twitter: "I stand with hundreds of @Wayfair employees who are
planning to stage a walkout at their Boston headquarters tomorrow. The
safety and well-being of immigrant children is always worth fighting
for."--BBC
China suspends some Canadian pork imports as tensions rise
China has suspended some pork imports from Canada, adding to tensions
between the two countries.
The move comes after Chinese authorities found a banned feed additive in a
batch of pork products exported from Canada to China.
An investigation found that up to 188 health certificates attached to pork
exports to China had been forged.
China urged Canada to take "effective measures" to ensure the safety of food
sold to the Asian country.
China had "immediately suspended the import of pork products from the
relevant enterprises" after finding "ractopamine residues" in a batch of
goods sent from Canada, a statement from the Chinese embassy in Ottawa said.
"In order to protect the safety of Chinese consumers, China has taken urgent
preventive measures and requested the Canadian government to suspend the
issuance of certificates for meat exported to China since 25 June," the
statement said.
"We hope the Canadian side would attach great importance to this incident...
and take effective measures to ensure the safety of food exported to China
in a more responsible manner."
Soured relations
The move comes as political tensions between China and Canada have grown in
recent months following the arrest of Huawei executive Meng Wanzhou in
Vancouver.
Ms Meng is the Chinese firm's chief financial officer and its founder's
daughter.
Diplomatic relations between the two countries deteriorated after Ms Meng
was arrested in December for allegedly breaking US sanctions on Iran. She
faces extradition to the US.
Two Canadian citizens are thought to have been detained in China in
retaliation for the arrest.
Ms Meng meanwhile has filed a civil claim against Canada's government,
border agency and police for "serious breaches" of her civil rights.
The suspension of pork imports also comes as China struggles to contain
African swine fever, an incurable pig virus, which has spread rapidly since
last year.--BBC
Flat-pack home? Ikea moves in on UK housing
Ikea could be building homes in the UK after a council in the south of
England agreed to work with a developer owned by the flat-pack retailer.
Worthing Council is considering a deal with BoKlok, owned by Ikea and
construction company Skanska, to build up to 162 homes in the seaside town.
BoKlok's homes are factory-built and priced after calculating how much
owners can afford after the cost of living is taken into account.
It says it is expanding in the UK.
It appears to be the first development by BoKlok in the UK after a scheme in
Tyneside was launched in 2007 and appears to mark a new push into the UK.
BoKlok's website says: "We are expanding in the UK and are looking for land.
"Do you have a vacant plot that could accommodate a new sustainable
neighbourhood?"
BoKlok also distances itself from the flat-packs associated with Ikea: "It
is about a high-quality off-site manufacturing process that allows us to
assemble them quickly in a safe and sustainable environment, which we know
that both employees and customers appreciate."
The homes are believed to include an Ikea kitchen.
Under BoKlok's plan, Worthing would get 30% of the homes, which would be
used for social housing in areas where the council says there is a shortage
of homes and high house price inflation.
Worthing says the average local house price is 11 times the average salary,
compared with eight times nationally.
The remaining 70% of the properties would go to BoKlok, which has already
built 11,000 homes in Sweden, Finland and Norway.
BoKlok also plans "a much wider programme of development over the coming
years", according to a report drawn up for Worthing Council.
Councillor Kevin Jenkins, Worthing Council's executive member for
regeneration, said: "In this current market, it's extremely tough for local
people who are in full-time work to get on the housing market. This proposal
could change that, giving these hard-working individuals a genuine chance to
buy their own home without having to move out of the town."
Instead of selling land to the developer, the council would receive the
homes, lease the land for 125 years and receive ground rent, which should be
about 4% on the value of the land.
The council says this proposal produces 45 homes for its use, rather than 13
if a conventional model has been used.
Building could start next September and the "first homes dispatched,
delivered and erected" in January 2021.
A BoKlok spokesperson said it was a "sustainable, low-cost housing concept".
It was "now exploring the UK market for potential sites for BoKlok
developments, initially in the south and west of the country".
"However, we have nothing to confirm at this point in time," the
spokesperson said.--BBC
Sharp fall in foreign investment in UK
New figures from the Department for International Trade show that investment
in the UK by overseas firms has declined sharply in recent years.
The number of new projects in the UK fell 14% in 2018-19.
At the same time, there was a 24% fall in the number of jobs created.
In the previous financial year, 75,968 new jobs were created. But in the
financial year just ended, that number fell to 57,625, the lowest level for
seven years.
There was an even sharper drop in the number of existing jobs which have
been secured by further investment in the UK.
It would, however, be very difficult to realise that foreign direct
investment in the UK was declining from the Department for International
Trade's own news release about these figures.
Nowhere does it mention that investment is falling or fewer jobs being
created. Instead, it includes an analysis of which regions of the UK are
doing best, while pointing out that the UK remains the number one European
destination for foreign investment and is the number one destination in the
world for US investment.
Although that is all true, the UK is facing increasing competition from
countries such as Ireland, France and Germany, and the number of businesses
setting up sites here has been in decline since 2014-15, when almost 85,000
new jobs resulted.
Brexit uncertainty
These figures tie in well with data on investment in the UK by British
firms, which shows many are putting off spending decisions, a move that the
governor of the Bank of England, Mark Carney, blamed on continued
uncertainty over Brexit.
Also, while in the past many foreign firms such as Japanese carmakers, set
up shop in the UK to gain access to the EU's single market, it is now far
from certain that frictionless access to the rest of the EU will last beyond
31 October, when the UK is due to leave the EU.
There has, however, been an increase in the number of British businesses
bought by overseas firms, which rose by 8%.
That is probably down to a combination of factors. Many international firms
are listed on the UK stock exchange and so a high proportion of mergers and
acquisitions happen in the UK, even if they do not involve UK companies.
Meanwhile, the fall in the value of the pound has made it much cheaper for
foreign companies to buy things in the UK.--BBC
Caledonian Sleeper Highland service launch delayed
Caledonian Sleeper is to delay the launch of new trains on the Highland
service to support another route.
The trains - which feature carriages with double beds - are now not expected
be introduced until September on the route between London and Aberdeen,
Inverness and Fort William.
Instead, the carriages will be diverted to support the Lowland service
between London, Glasgow and Edinburgh.
Transport Scotland said the delay was "unacceptable" and penalties applied.
Sleeper trains are "hotels on wheels"
The new £150m fleet began running at the end of April.
It had been due to be rolled out on the Highland route over the coming
weeks.
'Tourist season'
However, Ryan Flaherty, Serco managing director of the Caledonian Sleeper,
said: "We are disappointed but it is undoubtedly the correct decision and
will allow us to improve the reliability and resilience of the Lowlander
fleet and maintain capacity on the Highland route.
"While we are keen to introduce our new trains on the Highland route as soon
as we can, our priority must be delivering a reliable service on the lowland
route and then make sure that each new carriage on the Highland route is
ready to welcome guests and deliver a true Caledonian Sleeper experience."
The company said passengers who had already booked to travel on a Highland
service from 7 July and who had booked one of the new accommodation options,
would be refunded the difference in cost.
A spokesman for Scotland's national transport agency, Transport Scotland,
said the timing of the delay was significant.
'Correct train faults'
He said: "The introduction of new trains often present significant
challenges, however, this latest delay is quite simply unacceptable.
"Given we are fast approaching the height of the tourist season, it is
disappointing that many customers are as yet unable to fully enjoy the
benefits of the new on-board facilities, particularly as bookings have
increased and feedback has been positive where the customer experience
reaches the standards we expect.
"While the Caledonian Sleeper team are working to correct train faults, the
manufacturer CAF's inability to supply sufficient suitable trains leaves no
other option than for service entry to be postponed.
"The Highlander service will continue to run with existing trains until this
is resolved."
Caledonian Sleeper said the delay would give CAF, the manufacturer, more
time to fulfil its responsibilities and complete work on the remaining new
carriages.
The fleet has been part funded by capital grants from Scottish ministers and
the UK government.--BBC
Bonmarché seeks rescue bid after 'poor' sales
Troubled fashion chain Bonmarché has warned that trading in the first
quarter has been "poor" and reversed its opposition to the £5.7m takeover
offer from UK billionaire Philip Day.
Its shares fell 26% as it blamed bad weather for its performance and said Mr
Day's offer was now more acceptable.
It warned that it was also possible that its losses could be greater than
the £5-£6m it was previously expecting.
The Yorkshire-based chain has 312 shops with clothing aimed at over-50s
women.
It employs 1,900 full-time equivalent people, but Edinburgh Woollen Mill
Group-owner Mr Day has previously warned he expects a "material reduction"
in headcount at the chain.
Through his Dubai-based investment vehicle, Spectre, Mr Day made a mandatory
takeover bid in April after buying a 52.4% stake in the retailer.
Bonmarché shares halve after sales slump
Bonmarché deal puts jobs and shops at risk
The offer is at 11.445p per share. After the trading update, the shares fell
26%, to a price just below that level.
The Bonmarché board had been holding out against the offer, saying its own
cost reduction programme would improve performance.
It said again that the offer "does not adequately reflect the potential
longer-term value of the business", but acknowledged its "poor" trading had
changed the picture.
"The increase in uncertainty that has developed, reflecting the trading and
financial position of the business during the first quarter of the financial
year, makes the certainty represented by the offer potentially more
attractive in the short term."
The terms of the offer are "now fair and reasonable", the company said.
It said the medium and long-term prospects for the Bonmarché business were
good, but it had been told by its auditors that unless trading improved by
the time of its results on 26 July, they might include a caveat in its
results about its ability to operate as "a going concern" in the long term.
Targeting the over-50s
If the deal goes ahead, it could reunite Bonmarché with Peacocks, which was
bought out of administration by Mr Day's Edinburgh Woollen Mill in 2012. At
the time, Bonmarché was kept out of the administration and bought by a
private equity firm before being floated on the stock market.
"Whether the Bonmarché brand is about to become another 'name' that
disappears from the High Street remains to be seen," said Emma-Lou
Montgomery, associate director at Fidelity's share dealing service.
Richard Hyman, independent retail analyst, said its problems reflected what
he regards as the difficult conditions on the High Street.
"We've got a retail recession in my opinion," said Mr Hyman. "The bottom
line is there are very few retailers out there performing as they planned."
Bonmarché also had issues of its own, he added: "They've got too many shops.
The main thing is, their demographic [over-50s women] can make do with
clothing they've already got."
Kate Ormrod, lead retail analyst at Global Data, said that Bonmarché should
have a captive audience for its products, especially after Marks & Spencer
had turned its focus on the family market.
"Their offer is clearly not resonating with shoppers," she said.--BBC
£2bn rail upgrade proposal put forward for Midlands
A proposal for £2bn of improvements to the rail network between the East and
West Midlands has been submitted to the government.
Midlands Connect said the plans would mean direct services between Coventry,
Leicester and Nottingham for the first time since 2004.
It said it would reduce the time it took to travel across the Midlands.
A campaign group said it had long called for the return of the Coventry to
Leicester connection.
The plans, which if they went ahead would be completed in phases between
2024 and 2033, have been submitted by Midlands Connect, the body behind
long-term transport plans for the region, in partnership with Network Rail
and with the backing of 47 partner organisations.
Midlands Connect said although rail use in the East Midlands had risen by
37% over the past decade, rail capacity had been unable to keep pace,
meaning slow, infrequent and unreliable services between the East and West
Midlands.
It said the upgrades would create space for an extra 24 passenger trains an
hour, 85,000 further seats a day in and out of Birmingham and an estimated
six million more journeys each year, in addition to generating an estimated
economic benefit of £649m a year by 2037.
As well as the direct services, there are plans for two extra trains per
hour to and from Derby and Leicester to Birmingham and one extra train per
hour to and from Nottingham and Birmingham.
The plans include £15m to £25m to be spent on freight loops and track
improvements in Leicester, £150m to £200m on improving the Leicester
Corridor to Birmingham and £15m to £25m on enhancements around Nottingham.
There would also be the reinstatement of a line under the West Coast Main
Line at Nuneaton, or construction of a flyover, to allow for the direct
services, the cost of which is estimated at £110m to £250m.
On the platform - Nicola Goodwin, BBC Hereford and Worcester
Passengers travelling from Birmingham New Street to Hereford on Tuesday
shared their views about the proposal.
One pregnant passenger, who makes the journey every day, said: "It would
make my life easier and give me more flexibility as travelling at 07:09 is
not always the most convenient when you're feeling not that great.
"An extra train would be fantastic. [Otherwise] I have to drive into
Birmingham and from a congestion point of view it's not a brilliant
solution."
Commuter Marcus Burn, who often travels on the train with his bike, said: "I
commute five days a week to Worcester and Kidderminster and have been doing
that for about four years now.
"On the morning one, it's full. Recently they've only been putting on about
three carriages in the morning so that's not ideal.
"Coming the other way it's a struggle sometimes to get on. It would ease the
congestion if they were going to put (more trains) on at peak times and
evenings would be really good."
Sir John Peace, chairman of Midlands Connect, said: "The Midlands Rail Hub
is a cost-effective, evidence-led plan to upgrade our Victorian
infrastructure to meet the demands of the future.
"These proposals capture the enormous economic potential of the Midlands,
with 320,000 new jobs estimated by 2030, mainly in professional services
firms who depend on good rail connectivity to attract skilled workers."
After submitting the plan to the Department of Transport, Midlands Connect
is now asking for £25m to create an outline business case, which would
detail the specifics of developing the scheme.
Colin Major, secretary of Rail Future, a volunteer-led organisation which
campaigns for better rail services, said: "In concept, I think it is good
news, of course we want more people to use rail - it is greener, more
environmentally friendly.
"We have been pressing for the Coventry-Leicester connection to be
reinstated because, we believe, it would be a good opportunity and there is
demand for the service."--BBC
INVESTORS DIARY 2019
Company
Event
Venue
Date & Time
Dawn Properties
AGM
Ophir Room, Monomotapa Hotel
27 June 2019, 10am
Unifreight
AGM
Royal Harare Golf Club
27 June 2019, 10am
African Sun
AGM
Ophir Room, Monomotapa Hotel
27 June 2019, 12pm
FMP
AGM
Palm Court, Meikles
27 June 2019, 12pm
MedTech
AGM
Boardroom, Stand 619, corner Shumba/Hacha Roads, Ruwa
27 June 2019, 2pm
FML
AGM
Palm Court, Meikles)
27 June 2019, 2:30pm
FBC
AGM
Royal Harare Golf Club
27 June 2019, 3pm
BAT
AGM
Head office, 1 Manchester Road, Southerton
28 June 2019, 10am
ZBFH
AGM
Boardroom, Ground Floor, 21 Natal Road, Avondale
28 June 2019, 10:30am
ZPI
AGM
206 Samora Machel Avenue East
28 June 2019, 2pm
ZHL
AGM
Aquarium Room, Crowne Plaza Monomotapa Hotel
30 June 2019, 10am
Edg Edgars
AGM
Edgars Training Auditorium, 1st Floor LAPF House, 8th Avenue/Jason Moyo St,
Bulawayo
11 July 2019, 9am
Companies under Cautionary
Bindura Nickel Corporation
Padenga Holdings
Delta Corporation
Meikles Limited
<mailto:info at bulls.co.zw>
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