| TRADE MANUFACTURING TRADE SERVICES / FINANCE AGRICULTURE TECHNOLOGY / TELECOMMUNICATIONS TRANSPORTATION / LOGISTICS ENTERTAINMENT / RETAIL / TRAVEL PEOPLE _______________________________________________________________ TRADE
WASHINGTON, DC � President Bush has approved legislation giving the following 38 Sub-Saharan African countries tariff preferences under the African Growth and Opportunity Act (AGOA): Benin; Botswana; Cameroon; Cape Verde; Central African Republic; Chad; Republic of the Congo; Cote d'Ivoire; Democratic Republic of the Congo; Djibouti; Eritrea; Ethiopia; Gabon; The Gambia; Ghana; Guinea; Guinea-Bissau; Kenya; Lesotho; Madagascar; Malawi; Mali; Mauritania; Mauritius; Mozambique; Namibia; Niger; Nigeria; Rwanda; Sao Tome and Principe; Senegal; Seychelles; Sierra Leone; South Africa; Swaziland; Tanzania; Uganda; and Zambia. As required by the legislation, the annual determination acknowledges countries that are making �continued progress� toward a market-based economy, the rule of law, free trade, economic policies that will reduce poverty, and protection of workers' rights. This year, the president has added The Gambia and The Democratic Republic of the Congo to the list of eligible countries. The Democratic Republic of Congo's AGOA benefits will be activated when it forms its transitional government, expected later this month.
PRETORIA � US Trade Representative Robert Zoellick and trade ministers of five
southern African nations -- Botswana, Lesotho, Namibia, South Africa and Swaziland -- agreed at a recent meeting in Pretoria, South Africa, on a roadmap for negotiating a free trade agreement among their countries. A joint statement issued by the US and the five member countries of the Southern African Customs Union (SACU) said a free trade agreement would build on the U.S. African Growth and Opportunity Act (AGOA), which grants qualifying African countries duty- and quota-free access to the US market for many products. The FTA would be the US� first in sub-Saharan Africa. Officials of the six countries plan to meet again later this month to advance discussions on the FTA negotiating process. Zoellick stopped in Pretoria for the meeting prior to traveling to Mauritius for the US Sub-Saharan African Trade and Economic Cooperation Forum.
WASHINGTON, DC � Senator Charles Grassley, incoming Chairman of the Senate Finance Committee, has met with the US India Political Action Committee (USINPAC), a national bipartisan political action committee advocating the cause of Indian American community. Lauding USINPAC's efforts in building bridges, Senator Grassley (R-Iowa) said that "USINPAC is performing an important role in informing and petitioning elected officials about issues facing the Indian American community." On bilateral trade, Senator Grassley said that the US has made concessions on trade issues with other countries in the past and is prepared to continue do so in the future. While the US is prepared to make sacrifices on global trade issues, as part of the leadership role that it plays, India, too, has to be prepared to make some sacrifices. It is in the interest of both countries to make such sacrifices and promote trade as a means to producing greater harmony in the world.
WASHINGTON, DC � The US Agency for International Development (USAID) is
providing seed money for a new volunteer program to address the crisis faced by small coffee farmers in Latin America and in nations elsewhere � such as in East Timor and the East African countries of Uganda, Burundi, and Ethiopia � which rely heavily on coffee for the majority of their export revenues. In a recent statement, USAID said it will work with the non-profit, California-based Coffee Quality Institute (CQI) to improve
the livelihoods of coffee farmers, workers, and entrepreneurs in developing countries and to establish a "Coffee Corps" to help ensure a reliable global supply of quality coffee. The �Coffee Corps� volunteers will develop projects to address the business needs of small coffee farmers. Potential projects may range from consulting on post-harvest processing improvements to environmental issues. The volunteers will be experts in the coffee industry who are willing to share their time and talent with coffee farmers and coffee communities. USAID will provide initial funding for the program, while CQI will pay for volunteers' travel and basic living costs during their assignments, which will typically run for about two weeks.
MEXICO CITY � The second round of negotiations for a free trade agreement between Mexico and Japan began in Mexico City recently after Luis Ernesto Derbez officially handed over the reigns of the Economic Ministry (SE) to Fernando Canales Clarinod. Between January and October of 2002, trade with Japan represented only 3.03% of Mexico�s total international trade. In the first ten months of last year Mexico�s exports and imports with Japan totaled $8.3 billion, a fraction of the $272.2 billion total. Derbez, in his conciliatory speech, said that the SE must continue working on important issues facing Mexico such as agriculture. Japan currently imports 62% of the food it consumes, which could be of enormous potential for Mexican farmers. In spite of previous talks between the two countries, an agreement has yet to be reached. So far, the negotiations have dealt mainly with technical issues; the substance of a possible agreement won�t be addressed until early summer when both nations present lists of the products they want to reduce tariffs on. At that time the two governments will decide how strict the rules governing a possible agreement should be. Japanese investment in Mexico since January,1994 totals $3.2 billion and represents 3.1% of the total foreign investment during that time frame.
HANOI � Fueled by booming private businesses and a wealthier population, vehicle sales in Vietnam reached a record 26,872 units in 2002, up 37.4% from the previous year, auto industry officials have said. Toyota remains the biggest seller, with 7,335 vehicles sold in 2002, compared with 5,759 vehicles sold in 2001, said a spokesman for the Vietnam Automobile Manufacturers Association. Ford Vietnam, however, led sales growth with a jump of 92.4%, with 3,685 units sold last year compared to 1,915 sold a year earlier. Mitsubishi sales rose 51.3% to 2,440, while Mercedes Benz saw its sales jump by 40%, with 2,622 vehicles last year. The trade group attributed the country's healthy economic growth -- the second highest in the region after China -- and an emerging private sector with the jump in sales. "Until three years ago, most of the vehicle buyers were state agencies and state-owned enterprises, but the situation has changed," it said. Currently, there are 540,000 vehicles on roads in Vietnam, and the government has plans to double that number by 2010. Late last year, foreign auto makers were stunned by a Ministry of Finance decision to double tariffs on imported car parts -- a move they said would have hiked up retail prices by 15% in the first year alone and cut sales by half. After an angry outcry by the auto industry, the ministry decided on Dec. 27 to indefinitely suspend the new tariff.
NEW DELHI � India will allow dual citizenship to people of its origin residing in some countries as Asia's third biggest economy seeks to attract investment from the 20 million people of Indian descent living worldwide. The government is working on legislation to this effect, Prime Minister Atal Behari Vajpayee said at a meeting of expatriate Indians in the capital. India wants to increase foreign direct investment to $10 billion a year from an average of $4 billion a year as it seeks to boost economic growth to an average of 8% in the next decade to halve poverty in the world's second-most populous nation. Tapping overseas Indians will help the country boost trade, seek more investments to build infrastructure such as roads, power plants and irrigation networks, and give local companies access to newer technologies and skills. The government had set up a committee under the chairmanship of L. M. Singhvi, a member of the upper house of Parliament, in January, 2001 to consider granting of dual citizenship. It is also planning compulsory insurance for Indian workers in the Middle East, the prime minister said.
WASHINGTON, DC � The US International Trade Commission (ITC) has ruled that imports of certain steel wire garment hangers from China are causing market disruptions affecting US producers. The Commission will recommend to President Bush and US Trade Representative Robert Zoellick by February 18 potential remedies under which domestic producers can obtain relief. The Commission voted 5-0 to make an affirmative determination in the case filed under Section 421 of US trade law. Section 421 was added by the US-China Relations Act of 2000, the legislation implementing the bilateral agreement related to China's accession to the World Trade Organization. Under the provision domestic producers can receive import relief if the ITC finds that Chinese products are being imported into the US in such quantities or under such
conditions as to cause, or threaten to cause, market disruption to the domestic producers of similar or directly competitive products. According to the statute, market disruption occurs when a rapid increase in imports is a significant cause of injury, or threat of injury, to a domestic industry. President Bush will make the final decision concerning whether to provide relief to US producers of steel wire hangers and the type
and duration of any such relief. Earlier in January, the President decided against providing such relief for domestic producers of certain electromechanical devices called
pedestal actuators, ending the first case filed under Section 421.The ITC had ruled that imports of the garment hangers from China caused market disruptions affecting domestic producers. Bush said, however, that providing import relief for the US industry would not be in the "national economic interest."
MANUFACTURING/ CONSTRUCTION
SAN DIEGO � Oscmar International Ltd., a subsidiary of Cubic Corp., has won a $46.6 million contract to provide the first transportable combat training system for the Australian Armed Forces. The contract was awarded recently by the Australian Department of Defense�s Defense Materiel Organization. The contract calls for Oscmar, in partnership with Cubic's Training System Division, to provide live simulation equipment, range instrumentation and information systems for the "Land 134" project, a company-level instrumented Combat Training Center (CTC). The advanced equipment will allow soldiers to cost-effectively train with advanced laser-based simulation and tracking technologies in the remotest areas throughout Australia. The Oscmar-Cubic equipment will provide range-instrumentation, position-location and communication networks for the CTC. These systems collect and analyze data in real-time from all exercise participants, and provide the multimedia tools needed for CTC staff to provide immediate feedback after the exercise.
TORONTO � Canada�s auto-parts exports to the US jumped to a record high last year and helped the country's manufacturers keep pace with rival Mexico, according to a recent Bank of Nova Scotia report. According to the report, Canadian parts makers boosted their exports to the US by 11% in the first 11 months of the year to a record $15.6 billion. The Bank based the study on data supplied by Statistics Canada. December figures were not available. Canada's auto trade surplus, which includes assemblies and parts, was $7.03 billion from January through November 2002, helping to reduce the country's deficit on auto parts to $13 billion last year from a peak of $15 billion in 1999. Canadian auto parts makers' market share in the North America assembly plants is almost 17% of the overall Canada-U.S. auto-parts shipments, up from 11% a decade ago. The increase is due to the cheaper Canadian dollar and lower wage and benefit costs, Gomes said. However, Canadian auto parts companies have also invested more than $6.5 billion over the past decade to improve productivity and expand production. Canadian suppliers boosted exports to the US by $1.3 billion last year, matching the increase by Mexican parts makers. Interestingly, every vehicle assembled in North America now contains almost $1,315 of Canadian-made parts, up 21% in the past four years and double the level of a decade ago. Industry officials predict a flat year in 2003 for auto production, before a downturn in 2004 as sales, spurred by aggressive market campaigns, dry up.
IRVINE � The Keith Companies, Inc., an engineering and consulting services company, has announced its acquisition of Universal Energy do Brasil Ltda. The acquisition was made by exercising an option which was originally included in the company's November 2001 acquisition of Universal Energy, Inc. (UEI). Universal Energy do Brasil was formed by UEI to focus on the Brazilian power industry and was recently awarded a service contract by Consorcio AGPO, a consortium of Brazilian companies, to provide commissioning and startup services for the UTE Norte Fluminense generation plant in Macae, Rio de Janeiro state, Brazil. When complete, the facility will produce an estimated 700 megawatts of electrical power � 1 megawatt provides enough electrical power to satisfy 500 to 1,000 average homes.
SAN JOSE � Photon Dynamics Inc., a maker of electronics testing equipment, has announced the resignation of CEO Vincent Sollitto and the naming Elwood Spedden, a member of its board, to replace him as the company reorganizes and gets out of the printed circuit board assembly inspection market to focus on developing and manufacturing flat-panel displays. The San Jose-based company's statement provided no other details on the decision. In December, the company cut its revenue projection for the fiscal first quarter, ended Dec. 31. The company was also expected to release its first-quarter earnings �in the near future,� according to an earlier statement.
TOKYO � Japanese car makers Honda Motor Co. and Toyota Motor Corp. are set to report healthy third-quarter earnings as brisk sales in the United States more than made up for soft demand at home. The fast-growing Asian car market is also expected to have driven profits in the October-December quarter, analysts said. The auto industry has been a rare bright spot in the domestic economy due to its heavy dependence on North America, where Japan's top makers have made big strides at the expense of local competitors. An average of five analysts' forecasts put Honda's third-quarter operating profit at $1.3 billion, up 0.8% from the year-earlier period when it grew 61%. But net profit was expected to jump an average 26%, with most analysts citing a sharp drop in costs to hedge against currency risks. Honda, which reports results under US accounting standards, had quadrupled its non-operating loss due to the ballooning of such spending with the introduction of a new accounting rule for derivative tools.
Analysts say Honda should continue to speed ahead in the US, its most profitable market, powered by the all-new Accord � a perennial strong seller � as well as the popular Pilot sport utility vehicle and Element light truck, unveiled in January. That, as well as growth in China and another profitable quarter in Europe, should more than offset stagnant demand at home, they said. The North American operations of both Honda and Toyota are based in Southern California.
TRADE SERVICES / FINANCE
BEIJING � The Industrial & Commercial Bank of China (ICBC), Bank of China and their two biggest rivals may receive a $40 billion bailout to help them clean up bad loans, the China Business Post has reported. Bad loans at Chinese banks are estimated to comprise about half their outstanding loans, the Beijing-based paper said, quoting an unidentified International Monetary Fund official. The nation's four biggest state-owned commercial banks, including China Construction Bank and Agricultural Bank of China, received $56.5 billion in state funds in 1999, as they shifted hundreds of millions of dollars in bad loans to asset management companies. Loans have continued to go bad since then, and many investors say banks will need another bailout, the paper said.
�It's almost impossible for the Big Four to rely on themselves to clean up all the bad loans and meet international capital adequacy ratio standards,� said Yang Qingli, a banking analyst at Guotai Junan Securities Co in Beijing. �The government may have to issue special bonds again to fund a further injection.� A People's Bank spokesman declined to comment on the report. China's government wants to prod its lenders to expand their capital, improve their financial strength and prepare for competition with foreign rivals such as HSBC Holdings Plc and Citigroup Inc as the nation opens its financial markets, the paper said. China's plan, meanwhile, to set up a new banking regulator by splitting up the central bank is no cure for piles of bad loans plaguing the sector, the China Securities Journal quoted economists as saying recently. Whether China should adopt a Western-style banking supervisory framework in an unprecedent reform has been a hot topic that, reportedly, will be at the top of the agenda of an upcoming central bank meeting.
HONG KONG � Chinese businesses and local governments must seek high-level official approval for borrowing from overseas lenders, the government announced Wednesday, warning that it would not be responsible for repaying such loans. The rules, issued Wednesday in state-run financial newspapers and due to take effect March 1, state that Chinese government and financial institutions, companies, institutions or social organizations need approval from the State Council, China's Cabinet, to borrow from foreign lenders or provide debt guarantees for foreign debts. The announcement came more than four years after GITIC, the investment arm of the Guangdong provincial government, collapsed in 1998, defaulting on more than $4.7 billion in debts to foreign and domestic institutions -- the country's largest-ever corporate failure -- after the central government refused to bail it out. Foreign debts were defined as borrowing from non-Chinese citizens or organizations in foreign currencies. Foreign lending has been crucial for China's economic development, but the GITIC default left many foreign bankers wary of lending to Chinese enterprises and local institutions. Liquidators said they eventually expect to repay about one-third of creditors' claims. A growing domestic bond market has created domestic sources for funds, but many have been pushing to resume overseas borrowing. The new rules clarify the government's regulatory role and the limits of its liability. The government reported last fall that as of June 30, China had registered foreign debt totaling US$144.41 billion, with government borrowing accounting for US$49.68 billion.
SANTA CLARA � ProActive Net Inc., developer of finance software for financial institutions, has said that eGlobal Technology Services, an Asia-Pacific eBusiness software and services firm, is deploying the company�s ProactiveNet software at Shinhan Life Insurance, South Korea's first online banking service. Shinhan is the first Korean bank to offer online services to its customers, including deposits, withdrawls, online stock trading and insurance services. ProactiveNet's solutions are marketed and supported by eGlobal through their 11 offices in Australia, China, Hong Kong, Indonesia, Korea, Malaysia, New Zealand, Singapore, Taiwan, and Thailand. ProactiveNet pricing typically starts at $25,000 based on the type and number of entities monitored.
AGRICULTURE
WASHINGTON, DC � Lawmakers are urging President George W. Bush to bring the issue of genetically modified food before the World Trade Organization, saying the ban against modified products is discriminatory, according to the Associated Press. Congressman Dennis Hastert (R-IL), who is speaker of the House of Representatives, said the European Union moratorium on genetically modified agriculture imports from the United States, in place since 1998, was costing American farmers nearly $300 million a year. "This is simply a non-tariff barrier based on politics and protectionism, not science," said the letter, also signed by Congressman Roy Blunt of Missouri, Agriculture Committee Chairman Bob Goodlatte of Virginia and Resources Committee Chairman Richard Pombo of California, and others. US Trade Representative Robert Zoellick earlier this month said the Bush administration was close to bringing a case before the World Trade Organization. He said the EU moratorium was a clear violation of WTO rules. American farm products have been genetically modified since the 1970s to make them more resistant to insects or disease. About two-thirds of US soybean production and almost one-third of the U.S. corn crop is genetically modified. European consumer groups have led the efforts to keep such products out of Europe, although American farm groups and farm-state lawmakers say that biotech products have repeatedly been proven to be safe for human consumption and pose no risk to the environment. The US also says the EU ban has impeded efforts to respond to the food crisis in Africa because some African countries have rejected American food aid, fearing that EU countries would no longer accept their own food exports if their crops become intermixed with genetically modified seeds.
MEXICO CITY � Mexico�s Economy Ministry said Wednesday that it has imposed a 98.8% emergency tariff on imports of US chicken thighs and drumsticks beyond the first 50,000 tons brought in duty-free in 2003. In a document published in the government's official gazette, the ministry said the provision will be in place for at least six months. Mexico's National Poultry Farmers' Union had requested the safeguard, which returns the chicken tariff to the 2001 level. Since Americans prefer white breast meat, Mexican producers said their US competitors have been dumping chicken thighs and drumsticks into the Mexican market. Under the North American Free Trade Agreement, imports of chicken from the US � the world's largest poultry producer � carry no tariff as of Jan. 1. Before NAFTA took effect in 1994, US chicken exports to Mexico carried a 260% tariff.
The NAFTA agreement allows members to create safeguards in the event that domestic industries are threatened by imports from another member. The Economy Ministry has also identified pork as a product that could merit a protective tariff. Mexico is the third-biggest export market for US chicken producers. The two largest US producers - Tyson Foods Inc. and Pilgrim's Pride Corp. - also have processing plants in Mexico. In a related development, Mexico's Agriculture Ministry has banned poultry and egg imports from California and Nevada, where the Newcastle virus has been detected. Newcastle is an extremely contagious and deadly disease for birds. However, scientists say it doesn't pose a threat to humans. The virus can survive for several weeks in warm and humid environments and indefinitely in frozen matter. Mexico has also barred poultry imports from Arizona, Idaho, Oregon and Utah until it determines whether the virus has spread to those states
BRUSSELS � The European Union head office has proposed reforms of its contentious $45 billion agricultural subsidy program, diverting money away from handouts based on production to payments aimed at promoting rural development and food quality. "This reform has one objective, making sense of farm subsidies for our farmers, consumers and taxpayers," said EU agriculture commissioner Franz Fischler. The plan aims to end the decades-old practice of subsidizing farmers based on output, which is widely criticized for encouraging wasteful overproduction regardless of market conditions. Instead, farmers will be given a single payment based on the size of their farm, rather than production levels, but Fischler made clear the plans "were not going to pay farmers for doing absolutely nothing." Subsidies will also be linked to farms meeting standards of food safety, environment protection and animal welfare. Direct payments to big farms will be scaled down gradually from 2007, with the aim of freeing up more money for rural development in the EU's poorest farming regions. Cuts will also be made in the fixed prices that the EU guarantees for products including cereals, milk and rice. Fischler said the reforms would make the system fairer and less wasteful, and strengthen the EU's hand in negotiations within the World Trade Organization where the subsidy program is a frequent target for criticism from competitors such as the United States and Canada. "We don't think it goes far enough. It isn't substantial enough," said Allen Johnson, the chief US agriculture negotiator in the WTO talks from Geneva. "The cuts in domestic support leave in place the great disparities that have existed... We don't accept that that is as far as Europe can go." Poor countries also attack the EU's Common Agriculture Policy, saying it unfairly harms their exports. Small farmers who receive less than $3,360 a year from EU coffers will not have their subsidies cut under the plan, but handouts to larger farms will be gradually reduced over seven years to 2013 with an eventual fall of almost one-fifth for the largest holdings.
WASHINGTON, DC � The Commerce Department has made a preliminary determination that imports of frozen catfish from Vietnam were dumped on the US market. In a recently published fact sheet the Department said it calculated the dumping margins range from 37.94 to 61.88%. Imposition of antidumping duties requires final affirmative determinations both from the Commerce Department that dumping occurred
and from the US International Trade Commission (USITC) that the imports injured or threatened US industry. The Commerce final determination is expected by June. In the meantime, the Customs Service has said it will collect a cash deposit or bond equal to the dumping margin on any such imports; it would return the money in the event of a negative determination. The Department calculated the dumping margins as follows for four mandatory Vietnamese respondents to its investigation: Agifish, 61.88%; Cataco, 41.06%; Nam Viet, 53.96%; and Vinh Hoan, 37.94%. A margin of 49.16% for six other
companies that voluntarily responded to the investigation questionnaire was also levied. All other such imports from Vietnam would be subject to a Vietnam-wide rate of 63.88%, the Department said. Commerce has made a preliminary ruling that "critical circumstances" pertains to imports from Nam Viet and imports subject to the Vietnam-wide rate. If Commerce and USITC make affirmative final rulings on critical circumstances, then antidumping duties would be imposed on those imports retroactively 90 days to October. The Commerce Department ruled that, for the purpose of US
anti-dumping laws, Vietnam was still a non-market economy. That means the Commerce investigation looks for prices in a surrogate market, not Vietnam's home prices, when calculating dumping margins. In January-November 2002 US imports of frozen catfish from Vietnam amounted to $55 million.
TECHNOLOGY - TELECOMMUNICATIONS
WASHINGTON, DC � US government and telecommunications company officials plan to travel to China February 20-22 to show off US technologies and services to top officials in Beijing. Companies participating in the trip include Motorola, Cisco Systems, Intel, and Verizon Communications, while Federal Communications Commissioner Michael Copps and Nancy Victory who heads the National Telecommunications and Information Administration, will represent the US government. Meetings are planned with China's Minister of the Information Industry, corporate executives and telecommunications authorities from some provinces, according to the Telecommunications Industry Association which is organizing the trip in cooperation with the US Commerce Department. Discussions will cover industry trends, foreign investment, regulations, high-speed Internet service and wireless development as well as information and network security. Some 30 companies are expected to make the trip, with 20 large companies paying $12,000 for the privilege and 10 smaller companies paying $6,000, plus travel and accommodations, the trade group said. Similar summits were held in 1997 and 1999.
BANGALORE � India will be the fastest-growing information technology market in the world this year, according to forecast US-based technology research firm Gartner Inc.
�The Indian domestic market is expected to grow between 25 and 30 per cent and will be the fastest-growing IT market in the world,� the company said in a recent statement released in Bangalore. �Wireless will be a key driver of continued growth in the Indian telecoms market, though rationalisation of licensing regulations and interconnectivity policies will be a strong factor affecting growth in the longer term,� it said. India's booming cellular telephone market is currently witnessing a bitter price war between new low-cost wireless operators and mobile companies, while both have blocked access to their networks by the other's subscribers, it added. Late last month, tens of thousands of cellular subscribers throughout India were in turn stopped from making calls to fixed-phone lines owned by state firms, which analysts said were working in tandem with the new low-cost mobile firms. Gartner said technology investments by India's federal and state governments and state-owned companies would drive domestic growth. It said the sustained global economic slowdown was working in India's favor, �making it hard for US enterprises to ignore the 'huge cost arbitrage' of India.� The industry, Gartner said, �will make slow but steady progress, with a few casualties due to unrealistic expectations of some Indian providers along the way.� The research firm said India would remain the undisputed leader as an 'offshore business process outsourcing' destination. Gartner predicted the Asia-Pacific � excluding Japan - would lead a global information technology recovery with sales of IT, communications products and services almost doubling from 5.8% in 2002 to 10% this year.
ALAMEDA � UTStarcom Inc., the Bay Area-based provider of wireless, wireline, and broadband access equipment, has launched of service for the first IP-based Personal Access System (iPAS) wireless system in Vietnam. According to the company, Vietnam Post and Telecommunications (VNPT), the largest telecommunications service provider in Vietnam, recently activated city-wide iPAS-based Cityphone Service in Hanoi last December, while Cityphone Service went on-line in late January in Ho Chi Minh City. The value of the contract for deploying iPAS in both cities is approximately $20 million. Following the initial rollouts, VNPT and Vietnam's Ministry of Communications anticipate deploying iPAS in multiple cities nationwide. Cityphone consists of two applications, fixed wireless telephone and local wireless mobile telephone, suited for local service in high-density population areas. In addition to initial voice and value-added voice services, such as voice mail and call forwarding, Cityphone will soon include other voice and data services such as SMS, MMS, music downloads, and even Internet access at download speeds of up to 64 Kbps.
OAKLAND � British American Tobacco, Fujitsu and Thrasys has selected AmberPoint Inc. to provide Web management management solutions for their enterprise-class Web services. The work will be provided through the AmberPoint Management Foundation. Web services management is essential to any enterprise Web services architecture. AmberPoint develops solutions for the technical challenges of deploying and maintaining complex Web services environments. It also enables organizations to reap the full business benefits of a flexible, standards-based application network. Last year, AmberPoint signed similar deals with North American energy company TransCanada, insurance giant MetLife, global IT solutions provider InSync Information Systems and an unspecified agency of the US government.
SAN JOSE � Mobile broadband provider Stratex Networks has inked an agreement with Jordan Mobile Telephone Services (JMTS) to upgrade its current Fastlink microwave infrastructure. Once the upgrade is completed, the newly installed Altium 155 terminals will be repositioned to other locations where upgrades to higher performance speeds are now required. The agreement includes services for the design, supply, installation, frequency planning, interference calculations and equipment testing as well as a five-year maintenance agreement for the new radio systems. Founded in 1995, JMTS was the first operator to introduce mobile phone services into Jordan. Since its inception, Fastlink has driven penetration, achieving a strong subscriber growth, with the number of users currently totaling more than 680,000.
TRANSPORTATION / LOGISTICS
WASHINGTON, DC � Sweden is the latest country to sign on to the US Customs Service�s Container security Initiative. Under the terms of a declaration the agency signed with its Swedish counterpart, US Customs agents will be stationed at the port of G�teborg (Gothenburg) to target and prescreen high-risk containers before they leave for US destinations. Initially, Customs obtained agreements to place its agents in the 20 world seaports handling largest volumes of container cargo heading for the United States. With the Swedish port as part of the CSI network, Customs has started expanding the program to all ports that ship substantial amounts of US-bound cargo.
Sweden joins Belgium, Canada, France, Germany, Hong Kong, Italy, Japan, South Korea, Malaysia, the Netherlands, Singapore, Spain and the United Kingdom, all, of which have signed agreements to cooperate with the CSI since it was created in November, 2001.
DUBAI � Emirates Airline, the Dubai-based carrier has set 2004 for start up of service to two US cities, New York April 1st and San Francisco in summer 2004. The new Middle East -Bay Area service had been scheduled to begin this coming fall, but, according to industry press reports, aircraft delivery and other schedule considerations impacted the final decision to delay the new service until next year.
SINGAPORE � Italian container carrier Lloyd Triestino has entered the North Atlantic trades with a new service linked to its participation in the pendulum weekly service linking ports in Asia, North America and North Europe. The new service connects the US West Coast to North Europe, via the Panama Canal and the US East Coast. February 1 marked the first eastbound sailing with the 4,229 TEU (twenty-foot equivalent units) Ever Royal, departing Los Angeles, bound for the Canal and thence to Charleston, Norfolk, New York, Antwerp, Bremerhaven, Thamesport, Rotterdam, and Le Havre. The westbound US rotation links New York, Norfolk, Charleston, and Los Angeles and Oakland via the Panama Canal.
FORT WORTH � The Burlington Northern and Santa Fe Railway Company (BNSF) and Mexico�s Ferrocarril Mexicano has improved their �Mexi-Modal� transborder intermodal service by significantly reducing transit times between major US and Canadian markets and Mexico. The new service builds a seamless North American transportation network initially targeted for freight moving between Guadalajara or Mexico City in Mexico, and major North American markets -- including Southern and Northern California, Chicago, Baltimore, Philadelphia, New York City and major Canadian markets -- through BNSF's El Paso, Texas, gateway. According to the BNSF, the enhanced intermodal service offers seven- or eight-day transit time between Los Angeles or Chicago to and from Mexico City and Guadalajara. Prices for the service can be found online at the BNSF Mexi-Modal web site located at www.bnsf.com/business/mexico/meximodal. The prices contain all components of the shipment in the price, including bridge crossing at El Paso, Texas and in-bond with Mexican Customs. The BNSF is one of the two major rail carriers offering intermodal service between California and the rest of the nation, Canada, and Mexico.
LONG BEACH � Matson Navigation Co.�s 2,000-TEU container ship, the Lihue, docked at Pier C recently marking the company�s first call at the Port of Long Beach and its first at the 70-acre C-60 terminal operated by SSA Terminals. San Francisco-based Matson, the leading ocean carrier between the US mainland and Hawaii, had previously called at the Port of Los Angeles for more than 80 years. Matson is set to move into offices at Pier C this month. The port is expanding the Pier C complex, redeveloping 11 acres of land to accommodate Matson�s automobile-shipping business. Matson�s relocation to Long Beach is the last in a recent series moves at the port�s container terminals. Last September, Korea�s Hanjin Shipping Company moved from Long Beach�s Pier A terminal to a new 375-acre Terminal Island facility � the port�s largest container terminal.
In December, SSAT Long Beach moved into the 170-acre Pier A terminal north of Terminal Island. Its key customers are Geneva, Switzerland, -based Mediterranean Shipping, which relocated from the Port of Los Angeles, and Zim Israeli Navigation Co., which moved from Pier C.
CHICAGO � United Airlines Cargo, Air Canada Cargo, and Northwest Airlines Cargo have unveiled their new joint Cargo Portal Services (CPS) operation. All freight forwarders are welcome to use the only Internet-based portal that allows them to more easily book and manage shipments through their lifecycles on these carriers, while reducing transaction costs. In mid-December, selected freight forwarders used the service to make the first test bookings directly onto the operational systems of the partner carriers. Since then, all final system and site details have been developed and tested further for quality control. The launch carriers are currently introducing CPS to their forwarder customers around the world and demonstrating its ease of use. CPS is available to forwarders free-of-charge. Interested forwarders should contact their Air Canada, Northwest or United sales representative and visit www.cargoportalservices.com.
HONG KONG � Hong Kong's government will decide on the time table and location for the construction of the Special Administrative Region�s tenth container terminal by the end of this year, according to its Ministry for Economic Development and Labour. During his recent policy address, Hong Kong Chief Executive Tung Chee-hwa said that
"feasibility studies on Container Terminal 10 � CT10 � will begin shortly," while construction on the Container Terminal 9 �is expected to come on stream later this year.� According to industry sources, the early addition of further capacity is likely to increase competition among present ports operators. Hutchison Whampoa Ltd. , which already owns and operates Hong Kong�s Container Terminals 4, 6 and 7, owns the right to develop and operate two of the six berths at CT9. It is also part of a joint venture that runs two berths at CT8. Citing concerns over the expansion in port capacity outpacing throughput growth, Hutchison Managing Director Canning Fok had said earlier that Hong Kong wouldn't need more container terminal capacity until 2016. However, the government is keen to boost cargo traffic through Hong Kong by building a logistic park on north Lantau Island. The government hasn�t said whether CT10 will be located at the SAR�s proposed logistics park or another nearby location.
ENTERTAINMENT /RETAIL/ TRAVEL
FRANKFURT � Lufthansa will expand its west coast offerings with the addition of daily nonstop service between Los Angeles and Munich, Germany, on March 31. With the addition of the new flight � designated Flight LH 453 � Lufthansa now offers more daily nonstop flights from Los Angeles to Europe than any other airline. To celebrate the start of Flight 453, Lufthansa is offering travelers a special introductory round-trip fare of $453. Tickets may be purchased between January 28 and February 7, 2003, and are valid for travel March 31 - May 29, 2003. Certain rules and restrictions apply. For tickets or further information call 800-645-3880 or visit www.lufthansa-usa.com. Flight LH 453 will depart Los Angeles daily at 3:40 pm and arrive approximately 11 1/2 hours later at 1:00 pm the next day. The return flight LH 452 to Los Angeles will depart Munich at 11:15 am and arrive in Los Angeles at 1:00 pm local time. A 235-seat Airbus A340-300 aircraft will serve on the route with service in First, Business and Economy classes. Lufthansa will continue its two daily flights from Los Angeles to Frankfurt, operated by Boeing 747-400 aircraft.
MARINA DEL REY � Online movie and video service developer CinemaNow Inc. has signed a deal to expand into Japan through a licensing and distribution pact with Media Design Institute Inc. and NTT Data Corp. Media Design, which has operations in both the US and Japan, will license films from CinemaNow and tailor them for the Japanese market. The films will then be distributed on the Web by Japanese computer systems integrator, NTT Data. Financial details were undisclosed. According to a company source, the venture had not yet decided on a name but that it would likely be co-branded between the local providers and CinemaNow. The service is expected to be up and running late this spring. CinemaNow, based in Marina Del Rey, provides the content and its digital rights management software, called PatchBay, that is integral to copyright protection and tracking downloads so filmmakers and movie studios get paid. It allows users to download movies from its Web site and watch them on a computer for a set price that generally ranges from $2.99 to $3.99 per movie, or for a new monthly subscription of $9.95. CinemaNow is majority-owned by Canadian filmmaker Lions Gate Entertainment and has both Microsoft Corp. and Blockbuster Inc. as minority partners.
LOS ANGELES � The music industry has vowed to step up its fight against fraud after losing more than $5 billion in sales to illegal CD piracy and Internet downloading last year. According to the Recording Industry Association of America (RIAA), losses linked to piracy were up almost 20%, or about $700 million to $800 million on the $4.3 billion value of illegally copied CDs and internet files in 2002. Several trade groups, lead by industry giants such as Universal, Sony, EMI, Warner Music and BMG, have joined with thousands of smaller independent labels to respond with new licensing deals for legitimate on-line services, while stepping up seizures of illegally produced CDs. Music industry analysts say global music sales fell almost 10% last year, reducing the retail value of the market to about $30 billion, its lowest level in almost a decade. The RIAA recently said it would cooperate with leading computer companies including Dell, Microsoft and Hewlett Packard to promote technologies that help protect copyright music sales. Last year, the IFPI, the trade group representing 1,500 European record companies, assisted authorities in closing down 55 illegal CD factories last year and seizing 34 million pirated CDs, while promoting legitimate on-line music services and urging governments to implement the new European directive on copyright protection.
PEOPLE
LOS ANGELES � Alpha Therapeutic Corp. has named Claude Miller as the company�s new President and CEO. In his new role, Miller will be responsible for the day-to-day operations of the company, while also focusing on strategic planning and future business development. Miller joined Alpha in 2000. His 20 years of experience in operations, quality assurance and regulatory affairs also includes positions at Johnson & Johnson, 3M and Genentech. Miller holds master's and bachelor's degrees in microbiology from California State University, Long Beach.
IRVINE � Dr. Gregory Clark has been named to the Board of Directors of SSP Solutions Inc., a provider of identity and information assurance products and services. In addition to a fourteen-year tenure with IBM, Clark has worked with such notable companies as 20th Century Fox, Fox Television, StarTV, JSkyB, BSkyB, SkyLatinAmerica, Foxtel, News Ltd, and News International. While with News Corporation, Clark was responsible for the technical implementation of a number of joint ventures between News Corporation and other entities such as MCI, Softbank, and China TV. Clark holds a PhD in physics from the Australian National University, and has earned a number of awards in science and technology, including the Pawsey Medal from the Australian Academy of Science.
LOS ANGELES � The Los Angeles Area Chamber of Commerce has named Mercury Air Group President & CEO Joseph A. Czyzyk to its Board of Directors. As a member of the Board of Directors of the 1,300-member group, Czyzyk brings over 30 years experience in the aviation industry, including his tenure as CEO and President of Mercury Air Group, a provider of aviation petroleum products, Fixed Base Operation services, air cargo services and transportation, and support services for international and domestic commercial airlines, general and government aircraft and specialized contract services for the US government.
SEATTLE � Joe Clark, Chairman and CEO of Aviation Partners Inc. recently announced the appointment of Michael Marino as the CEO of Aviation Partners Boeing (a joint venture between Aviation Partners, Inc. and the Boeing Company). Marino was formerly Vice President of Technical Services and Modifications for Boeing Commercial Aviation Services. Other senior Boeing management positions held by Marino include Manufacturing Leader for Commercial Aviation Services, and Director of Operations for the Boeing Long Beach division, where he had overall manufacturing responsibility for the MD-80, MD-90, MD-11 and 717 aircraft production programs.
LOS ANGELES � Hitco Carbon Composites Inc., an affiliate of the German based SGL Carbon Group, has named three new Vice Presidents.The company�s increased presence in the European Union will be headed by Joachim Hildemann, who will be based in Meitingen, Germany and will lead HITCO's marketing efforts in the EU. Steven Seid has been promoted to Vice President, Engineering for HITCO. Seid will be responsible for composite structures and advanced materials engineering across all of HITCO's product lines and will be based at the company�s headquarters in the Los Angeles suburb of Gardena. Also based in Gardena will be Randall C. Stout, who has joined the company as its new Vice President of Supply Chain Management. |
