Business

Taking a Look at Colombia's Peace Deal Post Plebiscite

boz (James Bosworth, Southern Pulse CEO): Hi everyone

boz: On 2 October, a plebiscite on the Colombian government's peace process with the FARC failed by a very narrow margin. The government and FARC had already signed the agreement and the FARC were moving towards demobilization. The past three weeks since the referendum have been a flurry of activity as the government has worked to rescue the peace agreement and the “no” side lead by former President Uribe has tried to figure out how to manage their stunning upset victory.

We’re going to chat for the next half hour or so about the peace process after the no vote and what it means for Colombia’s future. Let me start with the first obvious question: Will Santos be able to save the peace process?

Boom or Bust: The Panama Canal Expansion

Despite the myriad of budget overruns and problems encountered during the construction of the US$5.4 billion Panama Canal Expansion, many hope the expanded canal will increase annual Canal revenue from US$2.6 billion to as much as US$16 billion (Fortune). This is especially true since Cosco Shipping Panama paid US$575,545 for its inaugural trip and Hong Kong-flagged MOL Benefactor (10,000 tea) paid US$829,468 — a US$1 million fee seems likely given the canal can handle higher capacity vessels. However, not only did the Expansion open two years late, it was inaugurated (26 June 2016) during a time when global commodities and shipping have taken a hit. Crawling global trade combined with potential safety and construction issues with the canal put the Canal’s revenue rates at risk.