It is a lot of fun seeing
various outlets on the Internet where interesting matters are revealed. Clearly, I look for situations that have an
impact on the area where I live. That is only normal as far as I am concerned
and allows me to write stories about them.
However, I also find other situations in other areas that intrigue me and
I do want to reveal those to you, dear reader.
In addition, I like to
provide my point of view when doing an article about a story that I have read.
Of course, I do not expect that every reader of my Blogs will agree with me but
that is okay too. Who knows, I might be
able to convince those whose opinion differs that they may want to think about a
different point of view and maybe even consider changing their
perspective.
Here are some articles that
I have seen and about which I hope you will find of interest as
well.
LACK OF
ENERGY
No, I am not talking about
my physical condition.
Rather, I am talking about
what is going on in the energy business in Canada as well as other countries
these days. I have to admit that I never expected this:
"Worldwide Gas Glut Claims
Latest, $27 Billion Victim in Canada
A $27 billion energy
project in Canada just became the latest casualty of a worldwide glut of natural
gas.
Malaysia’s Petroliam Nasional Bhd abandoned on Tuesday its plans
for the Pacific Northwest LNG terminal, a plant that would’ve liquefied Canada’s
gas and sent the fuel by tanker from the western shores of British Columbia to
markets in Asia. Petronas cited market conditions in its
decision.
Pacific Northwest LNG now
joins a growing list of projects that have been killed in recent months by
plummeting LNG prices throwing the economics of export terminals from Australia
to Russia to Mozambique into question. Prices have crashed as increasing volumes
of gas from Australia and America’s shale formations hit the water, inundating
the market with so much supply that analysts say demand may not catch up until
the next decade…
"There is simply too much
LNG export capacity planned in North America, and cancellations, especially of
Canadian projects, are likely to continue."
(Bloomberg, July 26, 2017)
Here is a rather negative
attitude as set out in that article:
"LNG is now a global market
that is going on everywhere else on the planet,” said Rafi Tahmazian, a fund
manager at Canoe Financial in Calgary. “Canada missed out on that
opportunity."
And I just saw this which
is very disturbing for our economic future for this industry:
"Five years ago, there were
more than a dozen LNG projects proposed for the B.C. coast. Now, only two large
plans remain, one spearheaded by Royal Dutch Shell, the other by Chevron. Both
have been delayed and their futures remain uncertain." (Kate MacNamara, CBC.ca, July 28, 2017)
FEDEX
Here is another disturbing
story that I just read:
"FedEx closing all retail
office stores in Canada
Shipping giant FedEx has
quietly moved to close retail office stores in all Canadian cities putting more
than 214 people out of work and ending three decades of doing business in the
country.
FedEx will continue to ship
within Canada, but its copy and office supply stores will close Aug. 18."
(CBC.ca, July 21, 2017)
Of course, FedEx will still
be carrying on business in Canada but closing all of those shops and putting so
many people out of work has to be very troubling. The question has to be why is all of this
happening. No answer provided so far
other than this generalized comment:
"the decision was made
after assessing current and future business prospects."
PELISSIER PARKING GARAGE
PRICING
What a ridiculous situation
we are seeing! How can there possibly be
such a huge problem when another much more massive project seems to be working
perfectly:
"Construction of Windsor’s
new $43.9-million city hall is on budget and on schedule for occupancy in May
2018, city engineer Mark Winterton said Tuesday.
“Everything is going very
well for an extremely complicated project,” said Winterton, who said the
project, which started a year ago, is starting to look like a building." (Brian Cross, Windsor Star, July 11, 2017)
Well, that is sort of
correct when one considers this:
"Staff have been very
reluctant to allow for any extra costs on the project, he said, because the cost
for demolition of the old city hall — located directly north — is still not
tendered, yet it’s included in the total $43.9-million price. They want to make
sure there’s still money left for the demolition once the new building is
finished.
“There’s not a lot of bells
and whistles on this project,” Winterton said. “Things that need to get done get
done, but things that are the nice-to-haves we’ve been very diligent
deferring.”
If you want to have some
fun, dear reader, go back and take a look at all of the stories written about
the cost of making changes in the Pelissier Parking Garage. The City's estimated cost for doing so was to
be around $507,000. The lowest cost that came in was $888,000 in a bid to get
the project while 3 other bids that came in at over a million
dollars!
Here is what is so absurd
about the way that the City was doing business and why pricing and tendering
seem so completely out of reality:
"Mayor Drew Dilkens says
the administration knew the cost would be higher than $500,000 because an
engineering firm set it at $650,00 in April.
Dilkens says the actual
cost to the city may not be that high."
(Peter Langille, AM 800 News, July 24, 2017)
"Not that high!" Just wait
until you see another article about what the cost might actually be now after
some negotiations but here is another article about what that $507,000 is
from:
"Councillors Chris Holt and
Rino Bortolin also raised concerns, with Holt arguing council had been given a
"bum number" and Bortolin calling the bids a "complete game
changer."
But Dilkens said the
$507,000 figure was calculated five years ago and added city administration has
been working with the low bidder to search for ways to "value engineer and
remove costs." (CBC News, July 26, 2017)
After some negotiations,
here is what the new price would be:
"The latest report, which
will be discussed at Tuesday night's council meeting, indicates costs increased
because of rising construction costs, additional aesthetic features and a
tighter deadline to have the work done to accommodate the new University of
Windsor downtown campuses.
Staff have since met with
the lowest bidder, Elmara Construction Co. Limited, and found ways to whittle
the cost down to $723,500." (CBC News, July 28, 2017)
With the cost still
substantially higher than what it was expected to be at first, it should be
interesting to see what Council will do.
WHAT WILL WINDSOR HAVE TO
OFFER TO TRY TO GET A NEW DEAL
How much can it cost these
days to be the "winner" to get a new project started in one's
area?
I will let you decide, dear
reader, if this type of an approach should be done or not in order to be
successful. Sure, it will cost Windsor taxpayers money but does the Windsor City
Government have to act this way in order to compete against other areas who are
trying to get a plant built:
"Windsor offers land deal
to woo German auto parts supplier
Windsor city council upped the ante in its bid to convince a
major German auto parts supplier to expand its manufacturing operations in the
region.
The politicians agreed
Friday afternoon to offer up a piece of land for an attractive price aimed at
sweetening the deal and making Windsor a more appealing option than two other
communities vying for the same deal.
Mayor Drew Dilkens flew to
Germany earlier this month, flanked by officials from the region's economic
development corporation, in yet another attempt to woo victory. If successful,
he says the deal could create an estimated 300 jobs." (CBC News, July 28, 2017)
Will Windsor still have to
put up even more money before this ends if it wants to win the contract?
Alternatively, has it no chance at all at being successful but is merely being
used to get the other potential sites to increase their offers!
Here is one
reason why its position may not be all that powerful:
"Other regions are offering
plenty of incentives, such as free land, which Dilkens has said he is not
prepared to offer."