Traveling through the sword to engage in military industry.

Chapter 320 Everyone Wants to Be the Boss
Magic City.

The four great families of Sheng Zhou and Liu Kang gathered together.

Sitting at a huge round table were the heads of the four major families and two blue-eyed, white-skinned foreigners.

"Welcome Mr. Williams and Mr. Freddy to the Magic City. I hope you two can spend a wonderful evening tonight." Sheng Huairen raised his glass with a smile, holding a glass of expensive wine from a European estate.

Welcome the boss of Elk Company to come to Shanghai to discuss business.

"Thank you, thank you Mr. Sheng and all the gentlemen for your warm hospitality. Today's food looks great. Let us enjoy it together. Cheers!" Williams also raised his glass in response.

This time they were discussing a big railway deal.

Linji Railway, a local railway from southwest Shandong to Jeju.

It runs through the main coal and iron producing areas of Qi and Lu, and the amount of goods transported is quite considerable.

However, government resources are now invested in the construction of trunk lines, and the construction of local railways is basically completed through local self-financing.

Driven by capital, the Railway Construction Committee, after listening to Ren Zhong's opinions and suggestions, conditionally opened the construction and operation of local railways to domestic and foreign capital.

In terms of price, the current national unified price is 4 cents per person per kilometer for passenger travel, and 1 cent per ton-kilometer for freight travel.

The four great families of Sheng, Zhou, Liu and Kang had a great influence in Shanghai. They jointly established the Jimin Railway Company. Each of the four families injected 1000 million yuan of original capital. After some struggle, they obtained the operating rights of the Linji Railway, a planned local railway line.

But to be honest, it is a bit too much for just the four of them. After all, the construction of a railway and the preparation of locomotives are not a small number.

Therefore, these four companies contacted foreign capital very early and looked for investment opportunities in the Elk Company, which sold steam locomotives. The two sides actually seemed to hit it off.

However, after sitting down at the negotiating table, the two sides were not so harmonious.

"No, we must obtain a 51% controlling stake. Apart from that, we will not accept any other option." Williams said loudly while slamming the table with a red face.

When it comes to discussing interests, I won't give in even a little.

When Williams talked about equity distribution, he actually wanted to gain control.

This is totally unacceptable to the four major parties.

"No, Mr. Williams, I think you have misunderstood a major premise. The basis of our cooperation is that we maintain controlling rights. Only on this basis do we have the need to have further discussions." Sheng Huairen would not give in.

In the eyes of these leading figures in Shanghai, if they cannot obtain controlling rights, everything will be tantamount to being led by the nose by others, which is also unacceptable to them.

It would be a huge effort for the four major companies to come together to invest such a huge amount of money, but this railway is of such high quality that a large amount of freight is carried along the route, and there are several large coal and iron mines.

按照现在引进的大男孩蒸汽机车头，客运方面挂载8节客运车厢可以跑出75公里时速；而货运方面，运煤和矿石的载重列车最大可以达到3600吨！列车速度还可以跑50公里到60公里的时速。

The designed mileage of Linji Railway is 250 kilometers. Theoretically, the full ticket price for a fully loaded passenger train is 10 yuan, and the 8 carriages have a fixed number of seats for 1024 people. So if a passenger train has an 8% occupancy rate, the gross income is 1 yuan. If it runs a round trip every day, the income is about 6 to 2 yuan.

As for freight, based on a fully loaded train of 3600 tons, running 10 hours a day, the daily revenue is 1 yuan. 8 steam locomotives are put into use, 20 for passenger transport and 2 for freight transport. Under ideal conditions, the gross freight income is about 18 yuan a day, which exceeds 35 million yuan a month.

In terms of investment, 20 locomotives plus train carriages will cost about 8000 million yuan. Based on the current construction estimate of 40 yuan per kilometer, the investment in railway construction will be 1 million yuan.

As a large-scale infrastructure project, the loan ratio they can get will not exceed 50%, which means that they have to invest at least 9000 million in capital to build the railway and trains.

This is just the hardware conditions. There will be a lot of labor for railway maintenance, train service and driving, loading and unloading workers, sales service personnel, etc. It will be at least 10 to people. Although the salary is cheap in this era, the average monthly salary is only a few dozen yuan, but the cost is more than yuan.

In terms of coal consumption, each train consumes about 18 tons of coal a day. Based on the current coal allocation price of 15 yuan per ton, the coal cost is over 16 yuan.

If water is added, the daily operation and maintenance of the steam locomotive will cost at least 20 yuan per month.

However, these are just small amounts of money. The bulk of the money is financial cost. The bank loan interest rate during this period was as high as over 25%. The interest on a loan of 9000 million would cost 2250 million a year, or 187.5 million per month in total. Adding to that the capital depreciation calculation, it would be less than 100 million a month, so the hard cost would be 350 million per month.

The gross profit is about 650 million, and after deducting taxes, the net profit is 400 million.

This is the ideal profit under fully loaded transport conditions. According to this calculation, there is hope of recovering the investment in 5 years. With a 20-year operating period, it can still make money for 15 years.

Of course, this calculation is quite rough. It will take more than two years to build a 250-kilometer-long railway. The interest on the loan invested during this construction period must also be calculated. For a 2 million railway construction loan, the interest for two years is 5000 million!
At least we need full load transportation conditions in the second half of the year to make up for the loss!

Therefore, if we make a conservative calculation, there is still hope of recovering the investment in more than 6 years.

This is already a very good business.

Therefore, in terms of equity, the first formal negotiation of the 4+1 meeting soon fell into a deadlock.

After Sheng Huairen persisted in the meeting for two hours without getting the other party to give in, he announced a recess.

Allow both parties time to calm down.

Also leave time for discussion.

"Old Sheng, this foreigner is not easy to deal with." Liu Zhongwu, who had a mustache, said to Sheng Huairen with a serious expression.

"Not only is he difficult to deal with, I think he has us in his grasp." Zhou Linqiang, the oldest man nearby, also sighed.

"I think we should change our strategy," Kang Qi, the current leader of the Kang family, blinked his eyes. "The Liming Power Research Institute is introducing diesel locomotives. We might as well use this to put pressure on that foreign guy Williams. If he's pushed to the limit, we'll use diesel locomotives instead of their steam locomotives."

"I think it's feasible. Mr. Kang's idea is reliable!" As soon as Kang Qi put forward his opinion, it immediately received everyone's response.

First update, please give me a monthly ticket

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(End of this chapter)