The birth of the Hong Kong Island family

Time flies and it’s mid-May in a blink of an eye.

In the morning, Lin Zhichao was walking in the garden of No. 79 Deep Water Bay. He couldn't help but look up at the sky. It was cloudless and there was no sign of rain. From October last year to May this year, Hong Kong has not had a drop of rain for seven months. It seems that the drought in Hong Kong is inevitable.

Of course, for the wealthy, the impact of the drought is not so great. Apart from the suspension of the swimming pool, the Lin family has little impact. The domestic water is imported bottled water for direct use. It will not compete for the water resources of ordinary citizens, nor will it cause inconvenience due to excessive water conservation.

After a while, Lin Zhichao returned to the villa and had breakfast with his family.

"When will it rain? It's been seven months since the drought!" Tang Caiyun said worriedly.

Her natal family runs a textile factory, and now they need to be forced to reduce production!

Now not only residents are in short supply of water, but industrial water is also very short. Many factories need to reduce production or even stop production.

Lin Zhichao said: "Hong Kong has never experienced any storms and waves. This drought is just one, and it will pass. I guess, the only emergency is to get water from the Pearl River estuary in the mainland!"

Hong Kong has just added 400,000 new refugees, which is already in a state of load, and now it is in drought, and the only way to turn to the mainland is for help.

The water transportation project (Dongshen) is far away and cannot quench the near thirst. After all, it takes about two years from design to construction. The most urgent task is to use boats to fetch water from the Pearl River Estuary to solve the current difficulties.

In fact, as early as the early 1950s, some Hong Kong entrepreneurs wrote letters to high-level officials, hoping to solve the problem of water shortage in Hong Kong; but at that time, the mainland was willing to build a water supply project from eastern Guangdong to Hong Kong, but the Hong Kong government was unwilling. Because it involves political issues and construction costs.

In 1960, when the water shortage problem in Hong Kong became more and more serious, the newly appointed Governor of Hong Kong, Robert Parker, signed an agreement with the Guangdong Provincial Government: the British Hong Kong authorities purchased 5 billion gallons of fresh water from Eastern Guangdong every year.

This amount of water, on average, is only 7.5 cubic meters per year in the hands of every Hong Kong person, which is not even enough for living security; and don't forget, Hong Kong's textile industry is a big draw.

It seems like a simple "water supply", but it involves a contest between the British Hong Kong government and the mainland government. One side does not want Hong Kong to be too dependent on the other side and affect colonial rule;

Therefore, the British Hong Kong government also overhauled multiple reservoirs and launched a seawater desalination project - Wanyi Reservoir. But people are not as good as God, who knew that the drought has been so dry since 1962!

On the other hand, as long as Hong Kong asks for help, it will naturally not ignore it. After all, 95% of Hong Kong is Chinese; and Hong Kong has contributed a lot to the country during the peninsula war and the modernization process. How can we not help.

"If it is to fetch water from the Pearl River Estuary, will it require a lot of ships?" Xu Caiying asked.

If the Hong Kong government needs to charter a ship, it must not avoid "global shipping", after all, this is the largest ship owner in Hong Kong.

Lin Zhichao nodded and said, "That's natural! I just ordered the eight second-hand oil tankers that were knocked out to be cleaned up some time ago, and they haven't had time to sell them yet. If the Hong Kong government needs them, they can be sold at the cost price of fuel and labor costs." , Lease it to them! At this time, Hong Kong people should show solidarity and overcome difficulties together."

After all, it is a government project. Generally speaking, the profit will not be too high. After all, it needs to establish a good relationship with the Hong Kong government. And Lin Zhichao only wanted fuel and labor costs, and he also wanted to build a good relationship with the Hong Kong government. Originally, this batch of ships was also planned to be eliminated, but now they just come in handy.

After hearing Lin Zhichao's words, his wife and children immediately looked at their husband and father with admiration.

After breakfast, Lin Zhichao took the bus to work.

He had just returned to Hong Kong from overseas and did not expect that the drought would become more serious, but he was mentally prepared.

Two more days later.

Sure enough, a Hong Kong government official came to Global Shipping to inquire about chartering a ship. Lin Zhichao happened to be in the office, so he personally met with the three people.

"Chief Xu, the Hong Kong government suddenly increased the number of water transport vessels. Will the mainland increase the supply of fresh water?" Lin Zhichao asked curiously.

Chief Xu is a higher-level Chinese official in the Hong Kong government. He is a middle-aged man in his forties, wearing a pair of glasses and looking very educated.

Of course, for a person of Lin Zhichao's status, he naturally respects and respects him.

"Yes, Lin Sheng! This month, the Huaxia General Chamber of Commerce and the Hong Kong-Kowloon Trade Union went to the mainland to ask for help, so now we are allowed to send boats to the Pearl River to fetch water for free. Difficulty."

When these words were spoken, Section Chief Xu and others, who were colonial officials, could not help but be moved.

This is the truth when drinking water and remembering its source!

Lin Zhichao nodded and said, "Good! With this water, Hong Kong's factories will not shut down and affect Hong Kong's economy; Hong Kong citizens will not be inconvenient in life."

Section Chief Xu immediately said: "Lin Sheng, Hong Kong's fresh water resources are only reserved for more than 40 days, so even with these water resources, Hong Kong is still short of water. Therefore, the Hong Kong government has prepared a 'four-day water restriction' system. The ground provides drinking water every four days.”

Lin Zhichao nodded heavily, and said, "It seems that if we want to solve Hong Kong's fresh water problem once and for all, we have to build a pipeline to supply water from the mainland to Hong Kong, and the Hong Kong government has to invest in its own water system."

Chief Xu said: "Yes, what Mr. Lin said, if the mainland and British Hong Kong governments put aside their prejudices, it will be a blessing to the people of Hong Kong."

Lin Zhichao immediately took a high look at Section Chief Xu. He was indeed a man of culture and could spot the fishy nature of the water supply at a glance. And the perspective from which we stand is exactly what Hong Kong citizens think.

Later, Lin Zhichao said: "We happen to have 8 eliminated oil tankers, with a total tonnage of 130,000 tons, and they have been cleaned up. We planned to sell them. Since the Hong Kong government urgently needs water tankers, these tankers can be handed over to you for free. We only need to provide fuel and labor costs, and we don’t make a penny.”

When Section Chief Xu heard this, he was immediately overjoyed and said quickly: "Do you really mean what Mr. Lin said?"

Lin Zhichao said with a smile: "These ships were originally the products of the elimination of old ships by Global Shipping. They were either sold or prepared to be dismantled. Now they can be said to be used for waste. Let our management communicate with you later, and promise not to earn a penny from the Hong Kong government. .”

Chief Xu was overjoyed. This saved millions of Hong Kong dollars!

But it was normal for him to think about it. Lin Zhichao was well-known for his charity in Hong Kong. He supported the establishment and operation of Oxfam, served as the chairman of the preparatory committee of the Hong Kong Polytechnic and other public welfare activities.

After Section Chief Xu and others left, Lin Zhichao sighed: "The moonlight shines brightly on Hong Kong. There is no water and no food in the mountain ponds. My sister carries water and my grandmother goes to the Buddhist temple. I don't know how long there will be no water shortage."

Of course, although Hong Kong is short of water, its business and industry still have little impact.

After all, as factory owners, they have better access to water than ordinary people. After all, if there is a large-scale shutdown, the impact on Hong Kong's economy will be fatal. Sometimes orders are gone and never come back.

In fact, Hong Kong's economy has continued to grow by leaps and bounds in recent years, with an annual growth rate of more than 9%.

Last year, the GDP reached 8 billion Hong Kong dollars, with per capita income reaching over 2,400 Hong Kong dollars; total foreign trade reached 11.5 billion Hong Kong dollars, the Hong Kong government’s fiscal revenue was 1.05 billion, expenditures were 950 million, and there was still 100 million left.

"Boss, the British insurance company announced that all insurance premiums for second-hand ships will be increased by 30%!" Feng Yongfa hurried to Lin Zhichao's office to report.

Global Shipping has a total of 50 second-hand ships, and the annual insurance premium requires a lot of money. Now that it has been increased by 30%, the profit will be reduced a lot; because the rent has been finalized.

Lin Zhichao had anticipated this, so he naturally didn't panic.

"It's to be expected. We plan to replace all ships with new ones anyway, so we don't need to worry about the increase in insurance premiums in the next three to five years. What's more, with their size, there's no need to worry about the insurance premiums!" Lin Zhichao said easily.

As the deputy general manager, Feng Yongfa is responsible for internal management. In fact, he knows that his boss is a 'frugal' boss in terms of details, so he likes to settle small accounts.

Seeing how relaxed his boss was, he guessed that the boss might have met him a long time ago and eliminated many second-hand cargo ships.

"Well, that's true. We are also replacing second-hand ships anyway. The biggest impact this time is on the shipowners from Jiangsu and Zhejiang. They have many second-hand freighters."

Lin Zhichao said: "This actually forces everyone to build new ships. If we don't develop new ships, when will we be able to develop them?"

Feng Yongfa nodded. He knew that his boss had no sense of competition with Hong Kong shipowners, and they were not competitors at the same level.

He said: "An interesting thing happened recently in the Mainland regarding insurance!"

Lin Zhichao asked curiously: "What's the interesting story?"

He has never cared much about the affairs of the Mainland and avoided contact with the affairs of the Mainland. Anyway, he was not a person liked by the Mainland. It was not until 1978 that he stepped on the stage. After all, people's opinions are different; he was like this Capitalists also have a huge market.

Feng Yongfa said: "The mainland built a cargo ship of more than 10,000 tons, costing 1.2 million pounds!"

Lin Zhichao immediately interrupted: "So expensive? It's twice as expensive as the cost in Europe, let alone Japan!"

The UK only needs 700,000 pounds ($2 million) to build a cargo ship of more than 10,000 tons, while Japan only needs more than 500,000 pounds ($1.5 million).

Feng Yongfa said: "Yes! Many things need to be imported, so the cost is very expensive."

Lin Zhichao nodded and said, "Well, keep talking!"

Feng Yongfa said: "This cargo ship was carrying more than 10,000 tons of corn and ran aground when it was sailing to Japan! But fortunately it was insured for a total of 1.2 million pounds, of which the PICC shared 200,000 pounds, and the remaining 1 million was insured through Willis Company in London. The market carried out reinsurance. Therefore, we finally got back compensation of 1.04 million pounds, avoiding important losses to the country."

Lin Zhichao sighed: "Insurance has made a great contribution!"

Feng Yongfa said: "That's right! Without insurance, it would be a loss of nearly 20 million Hong Kong dollars. This is a huge loss for a country that is not rich."

Generally, there are two types of insurance: shipping insurance and war insurance. Although the mainland is blocked by the United States and others, it actually trades with European countries such as the United Kingdom and Japan. These countries do not completely listen to the United States, so they all trade privately. .

Therefore, mainland ships establish reinsurance business relationships with third countries through relationships with them, and their relationship with the London insurance market has not been interrupted since the founding of New China.

It can be said that even if the Yankees knocked down the ship, as long as the war insurance was insured, the British insurance company would still compensate. Therefore, some people even find it unbelievable that the British emperor would compensate for the attack by the American emperor.

Lin Zhichao said: "In two or three years, we will also start to risk war. Who knows if anything will happen in the Middle East!"

Feng Yongfa remained silent, thinking that the boss was very strange. He would take the risk of war if he remembered it, but not if he didn't. For example, starting in 1955, the boss allowed me to take out war risks, and when 1957 ended, I immediately saved this money again.

I haven't paid it for almost six years, and now I want to pay it in two or three years.

Of course Lin Zhichao had his own ideas. Why should he pay the unjust fees when he knew there was no impact from the war?

If the "Second Middle East War" occurred in 1956, he paid in 1955; if the "Third Middle East War" occurred in 1967, he paid in 1966; in 1980 when the Iran-Iraq War broke out, he paid in 1978.

In short, just pay one or two years in advance!

Originally, many shipowners were able to save on this insurance premium.

The sudden increase in insurance premiums for second-hand ships in the UK has had a great impact on Bao Yugang's fleet. He has just expanded to 40 second-hand cargo ships, reaching barely enough; and now the increase in insurance premiums means that his second-hand fleet Profits have been reduced a lot.

In the office, Bao Yugang was pacing back and forth thinking about the problem.

Last year, he wanted to build a 7,500-ton new ship with a total cost of 1 million US dollars. He wanted HSBC to provide a 75% loan, but was directly rejected by Sandus; HSBC only agreed to loan 40% and the remaining 600,000. US dollars need to be raised by oneself.

In Sandus’ view, there is no need for him to fully support the two ‘ship owners’ because:

First of all, HSBC is now personally involved in investing in shipping (Worldwide Shipping), and its investment is very large;

Secondly, Bao Yugang's business model is almost the same as Lin Zhichao. Although he admits that this model is very good, he knows that the Japanese shipping industry only recognizes Lin Zhichao now, not the rising star Bao Yugang.

Finally, HSBC supports a ‘shipping king’, which is enough in the shipping industry.

As a result, Bao Yugang returned disappointed, and the matter of building a new ship has been delayed again and again, and no action has been taken until now. After all, a 7,500-ton second-hand ship only costs US$150,000 to US$400,000 (depending on the age of the ship), which is much cheaper. In the case of insufficient funds, he still gave priority to investment in second-hand ships.

Bao Yugang calculated his family assets and found that there are currently 40 second-hand ships with a total load capacity of 420,000 tons. Although the debt is still 3 million US dollars, the annual profit is also 5 million US dollars.

"New ships must be built! From now on, freighters must build new ships!" Bao Yugang said through gritted teeth.

He quickly remembered what Lin Zhichao said last year: 'How can we develop without building new ships! ’.

Thinking of this, he no longer backed down and decided to ask Sandus to discuss cooperation again.

At the same time, he remembered the "tripartite agreement" shipbuilding method invented by Lin Zhichao, which allowed Japanese tenants to repay 80% of the shipbuilding payment to Japanese shipyards for them.

If the two modes are carried out simultaneously, the load capacity can exceed 1 million tons within five years.

The next day.

Sandus met Bao Yugang in the office. The two had known each other for a long time, so they had a certain personal relationship.

Bao Yugang once again put forward his idea and added: "Chairman Sandus, assuming I get a letter of credit from the Bank of Japan, it means that the contract can be guaranteed and there is almost no risk of repaying the debt. Therefore, I want to build new ships , your bank provides us with 75% of the loan.”

Sandus slowly picked up the tea cup, took a sip, and then said slowly: "I have understood this truth a long time ago, and you should understand! The reason why we do not grant 75% of the loan is because of the funds of our bank. I have invested a lot in shipping. I personally participated in shipping investment, so the funds for investing in shipping are limited. After all, eggs cannot be put in one basket. So, again, if you want to build a ship, all the conditions must be met. We can still only provide 40% of the loan, and you need to solve the remaining funds yourself. Moreover, it is only limited to one ship for the time being."

Personally participating in the investment instantly defeated Bao Yugang's defense line!

Others have invested personally, so why do they need to lend large amounts of money to ship owners?

The truth is self-evident!

Bao Yugang said unwillingly: "Since you are optimistic about shipping, why don't you support one more shipowner?"

His eyes were full of begging and unwillingness!

Sandus is essentially unsympathetic. He is a banker, and his relationship with Lin Zhichao is more of a bundle of interests.

Therefore, Bao Yugang's words did not impress him. Instead, Sandus gave a heavy blow and said: "It's very simple! Your model is just imitation. When Japan's major shipping customers all trust Global Shipping, you have lost the opportunity. In other words, the risk has increased a lot. At the same time, if we at HSBC strongly support you, we are also worried that you will compete for customers at low prices, which will ultimately affect the shipping industry that HSBC invests in. Therefore, I can give it to you in a business-like manner. loan!"

Bao Yugang also lost his temper and said, "Thank you for taking care of me!"

Sandus nodded and said: "Stable development is not necessarily a bad thing. You can develop from one second-hand ship to 40 second-hand ships in seven years. It is already very impressive! I am optimistic about your shipping career. You don't want to be discouraged!"

Bao Yugang nodded and said: "Thank you Sandus for your encouragement!" Then he asked curiously: "How many years did it take Mr. Lin to develop shipping to 40 ships?"

Sandus thought about it and said: "It should be three or four years ago! He is different from you. When he invested in shipping, he started with three large ships. It also happened to be a ship shortage in the Far East, so he developed very fast at that time. !”

Bao Yugang was immediately shocked. It took twice as long. The important thing is that he actually bought quite a few ships between 1959 and 1961. Those ships were all "to be scrapped", and the prices ranged from 60,000 to 200,000 US dollars. No wait. (End of chapter)