Singapore : More ERP gantries, higher ERP rates, road tax cuts

More ERP gantries, higher ERP rates, and halving the annual vehicle growth rate to 1.5% - these are some of the main announcements by Transport Minister Raymond Lim in the final instalment of changes under the land transport review. But the bitter pill of more ERP was accompanied by some sweeteners, such as a permanent 15% cut in road tax for all vehicles and a multi-billion dollar improvement programme for expressways.

Singapore has the same problem faced by many other growing cities in the world - an insatiable appetite for cars, leading to congestion and possible gridlock. Singapore transport officials said congestion has climbed 25% since 1999. So, ERP coverage will be expanded, where 16 more gantries will be activated this year, adding to the current 55.

channelnewsasia.com :

The government will spend S$14 billion to improve Singapore's road infrastructure over the coming years. The go-ahead has been given for the new North-South Expressway, which will cost some S$7-8 billion and be ready by 2020. The 21-kilometre expressway will link Woodlands and Yishun in the north to the East Coast Parkway. It will run somewhat parallel to the Central Expressway, thereby relieving traffic from the heavily-used CTE. The S$2.5 billion Marina Coastal Expressway, linking the eastern and western parts to Marina Bay, will be ready by 2013. Then there is the widening of the Central and Tampines Expressways, which will be completed by 2011. When completed, the CTE will have four lanes on either side.

This is a rather comprehensive (and expensive) plan. The road and rail improvements together add up to a whopping $34 billion worth of infrastructure expenditure by the Singapore government. Now that's fiscal stimulus. Next, can we have some semblance of an energy security plan to run all these cars and trains beyond the global oil peak in 2010?

Fed slashes rates another half a point to blunt economic slowdown

news.yahoo.com :

The Federal Reserve cut US interest rates by a hefty half-percentage point on Wednesday [30 Jan 2008] as part of an ongoing aggressive effort to halt a sharp slowdown in an economy hit by a housing slump and a credit crunch. The Fed's action takes the bellwether federal funds rate to 3%, the lowest since June 2005, and comes just eight days after the central bank slashed rates by three-quarters of a point.

The cumulative 1.25 percentage point reduction in the interbank overnight rate in less than two weeks ranks among the most abrupt rate-cutting sprees in the modern history of the U.S. central bank. The Fed said its rate-cutting campaign, which has brought borrowing costs down from 5.25% in five steps dating to mid-September, should help thwart the risk of recession, but it left the door open to future moves.

- The markets have already priced in a Fed cut of 50 basis points, so they were overall flat or slightly down. Gold shot up to a new record high of $942.20 before settling back to $920+ which appears to be the current consolidation range.

China to build 97 new airports by 2020

energybulletin.net -> afp.com :

China announced plans Saturday [26 Jan 2008] to build nearly 100 new airports by 2020 to cater for soaring demand. The proposals will mean eight out of every ten residents will live within 100 kilometres (60 miles) of an airport within 12 years, the General Administration of Civil Aviation said. It put the cost of building the 97 new airports at 450 billion yuan ($61.6 billion).

- 2020 will be 10 years after ASPO's projected global peak oil date of 2010. What are all these planes going to run on, biofuel? I think not! And what about all the metal that they are going to be made from? Somewhere along the line there will be a collision between demand and reality.

Yahoo to lay off 1000 workers

news.yahoo.com :

Yahoo's financial funk deepened at the end of 2007, prompting the slumping Internet icon to draw up plans to lay off as many as 1,000 workers. Yahoo disclosed the upcoming 7% reduction in its 14,300-employee work force Tuesday [29 Jan 2008] while reviewing a 23% drop in fourth-quarter profit and a cautious 2008 outlook.

The bad news sent Yahoo shares skidding to their lowest levels in more than four years. Yahoo shares dropped $2.09, or more than 10%, in extended trading Tuesday. The company's market value has plunged more than 50% since the end of 2005, wiping out $35 billion in shareholder wealth. Yahoo CEO Jerry Yang warned of looming "headwinds," indicating that the company's tortuous turnaround efforts aren't likely to pay off this year. The mass firings represent Yang's most dramatic move yet.

(2008-01-31 12:45:38 SGT) [Biz] Permalink

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