Is the Smart Money Bailing on Northwest Coal Exports?

Sightline Daily | News & Views for a Sustainable Northwest, January 8, 2014
By Eric de Place

[This post is part of the research project: Northwest Coal Exports]

The news is everywhere: finance titan Goldman Sachs is selling off its stake in SSA Marine, the would-be coal exporter of Whatcom County. (To be precise, Goldman Sachs Infrastructure Partners, a subsidiary of the big firm, is selling its stake in FRS Capital Corp and Carrix, the parent companies that house SSA.) Many see the move as a major bet against the economic viability of Northwest coal export schemes.

Though it is important to remember that SSA Marine is a big company with a range of port terminal holdings around the globe, there is evidence for believing that the sale is connected to worries about coal.

As usual, Crosscut’s Floyd McKay has some of the best coverage:

Goldman Sachs last July posted a warning for investors that coal exports would decline in future years. Tuesday’s announcement prompted a prominent coal opponent, Crina Hoyer of ReSources for Sustainable Communities, to say, “Goldman Sachs’ stepping away from coal export is yet another sign from Wall Street that coal export is a losing investment.”

Just as interesting as Goldman bailing out is that a billionaire Mexican investor, Fernando Chico Pardo, is stepping up to buy the 49 percent equity stake Goldman is unloading. Pardo is a longtime partner of oligarch Carlos Slim, one of the richest people on earth and the dominant player in numerous economic sectors of Mexico.

Read more…

About coalfreegorge

Coal is rearing its head again the Columbia Gorge. The new threat comes in the form of proposals to export coal from Wyoming to coal-fired power plants in China. The coal would be transported via uncovered rail cars through the Columbia Gorge. Many Columbia Gorge Communities in Oregon and Washington support a coal-free world, beginning at home, in the heart of the Columbia River Gorge, recognizing the importance of people determining what materials are allowable for transport through their communities and watersheds. This blog exists to communicate and advocate for the public interest in issues pertaining to coal transport in the Columbia River Gorge, providing an online outlet for honest discussion and information. To inform and unite local citizens about the damaging effects of coal transport through our communities. To endorse positive and considerate dialogue with the aim of mutual understanding among diverse parties. CLEAN AIR HEALTHY COMMUNITIES NO COAL EXPORTS STOP COAL IN ITS TRACKS
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