All over the globe major projects have been approved, reviewed, engineered and await the green light to begin construction. The problem is financing. When will the financial institutions be ready to invest? By George Lauriat, AJOT Like Friday night commuters queued five deep waiting for a train home, major projects worldwide have been backed up, awaiting financing. For the last four years the Project Cargo business has been languid, as financing has yet to catch up with engineering. Major projects that engineering-wise have been ready for years have yet to break ground. It’s a situation made all the more difficult by the global credit crunch and pressure on sovereign funds. In Europe the never ending Greek financial crisis has sent shock waves throughout the Continent. Italy’s difficulties are also well documented, as are those in France, Portugal, Spain and Ireland. It is little better in North America, where the S&P downgraded the US bonds, and a do-nothing Congress marks time until the 2012 November Presidential elections. Investment in Putin’s Russia is a crapshoot until the political winds can be ascertained. And there is little joy looking to Asia, as China’s own strategy focuses on internal development, while turmoil in the Middle East continues unabated with the distinct possibility of a clash in the Straits of Hormuz between the West and Iran. In waters so muddied by turmoil, it is difficult to see change, even when the change is right upon us. But there are signs that the worst may be behind and that 2012 may be remembered as the beginning of the upswing. One reason for such optimism is that there are a lot of major projects moving forward – perhaps not at a break neck pace – that could accelerate with only a moderate improvement in political and economic conditions. A spokesperson for Rickmers Line, a steamship line specializing in project cargo movements, said, “We think the prospects for 2012-2013 are looking good. In view of current oil price levels, we expect the oil and gas sector in particular to pick up with projects during the years to come. In general, we are noticing an increase in activities in both India and the Middle East, which is why we have substantially expanded and modernized our fleet for these regions in 2011.”

 Brian Majeurus, Vice President of Specialty Networks and manager of the WCAPN, the project cargo network with the WCA Family of Logistics Networks, said that his membership for the most part felt there would be a 5%-15% increase in business in 2012, observing that in terms of shipping cycles there seems to be a beginning of an upturn. It’s worth noting, that many in the business feel that project cargo recovery will begin in the Middle East with the oil and gas sectors, as project investment is returning with higher energy prices. Post-Arab Spring reconstructionPerhaps the region where the upswing will begin with reconstruction projects is in Libya. Even before the death of Libyan dictator Omar Gaddafi in late October of 2011, plans for rebuilding damaged oil and gas infrastructure as well as other economic assets were already underway. Western powers, such as Italy, France and the United Kingdom, had already paved the way for engineering companies to bid on projects. For example, in October, the UK Export Finance increased its risk capacity for Libya to £375 million – up from the £150 million made available immediately after hostilities ended in September 2011. The main hurtle was removing the sanctions imposed on Libya during the struggle. In early January the sanctions were lifted, and SEKO Logistics Libya, noted, “This will give us great opportunities for trade.” Capt. Khalid Sherwi, SEKO Libya’s, General Manager, said, “The resumption of logistics activities in Libya is a sign that the country has undertaken large steps towards transition. ” “This will give us great opportunities for trade.” Adding, “The resumption of logistics activities in Libya is a sign that the country has undertaken large steps towards transition.” Tur