West Coast Economy set to rise, Thanks to Oil
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West Coast Economy set to rise, Thanks to Oil
Oil Storage is on the rise. The place to be is right here on the West Coast. Not since the 1970s has South Africa seen such a substantial increase in Oil storage facilities and linked foreign investment. After the environmental impact studies were completed the building process was allowed to begin. Whispers of economic development have been looming ever since, but no-one has quite felt the benefit of it all yet, except maybe the building contractors.
But as we have seen in the past like with other the big industries like steel & iron ore, the economic growth does follow. Today thousands of people and businesses from Langebaan, Saldanha, Vredenburg and beyond rely on the economic ripple. We must be patient, but it is also good to prepare. We can see the roads are being widened in preparation for a West Coast Economic Boom. By mid 2019 many cornerstone projects are set to be completed.
This is an extract from the Fin24 article Africa’s hidden oil hub near Cape Town booms after making millions for traders earlier this year:
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“Saldanha could have turned into a white elephant, but it held an unforeseen commercial potential. When a price structure known as contango emerged in the oil market, traders were able to lock in profits by storing crude for future delivery to buyers elsewhere. This happened in 2009 and again four years ago, when companies from Mercuria Energy Group to Vitol Group used the site.
While those opportunities have evaporated as oil rebounded, the strategic importance of the shipping route around the Cape of Good Hope has grown.