Chapter 196 Railway
"Why, you also want to get involved in this industry?" Prince Karl Anton asked.
"That's not true. I mainly want to test the waters in the colony." Ernst didn't hide anything and said directly.
"I'm afraid this matter is a bit difficult to handle!" Prince Karl Anton said without hesitation, "Although I am optimistic about your talent in business, I am afraid that this matter will be difficult for you to make a profit!"
According to Prince Carl Anton's thinking, if the colony was used to make money, why would he come here?
"Uncle Carl, when I say test the water, I mean to build it only a short distance away. I don't mean to roll it out on a large scale in East Africa." Ernst said.
"That's not right! If you are just building for fun, there is no need to ask me! You can go directly to a Deutsche Bahn company and they should be able to start construction directly! And I believe that with your status, no one dares to Trick you." Prince Karl Anton said.
In the view of Prince Karl Anton, Ernst was now a great nobleman and a great capitalist in the German region. This configuration simply created an invincible golden body.
Moreover, Ernst also said that he wanted to test the waters. No open-minded Deutsche Bahn would offend a future prince and business tycoon for such a small benefit.
"Actually, Uncle Carl, I am actually also greedy for the railway market, but I also know that railways are different from those things I did before.
Railway technology is now very mature and the threshold is very high. The most important thing is that there are many railway companies in Germany. It is definitely thankless to enter directly now.
But I am optimistic about the future development of railways. If there are no opportunities now, it does not mean that there will be no opportunities in the future. The problem is that if there are opportunities in the future, we must be able to seize them, so I want to make arrangements in advance. " said Ernst.
"I probably understand what you mean! You really want to do this business now, but you are not optimistic about the recent market prospects, so you don't want to enter the market on a large scale. Instead, you want to start a smaller one to accumulate experience and prepare for the future. Is that what you mean?" Prince Karl Anton asked.
"Uncle Carl, this is exactly what I want to express, and I also have a purpose. As you know, I don't have any big business in East Africa. In fact, I just organize immigrants to farm there, so the commodity transportation in East Africa is mainly food. , timber and other bulk commodities.
These goods are big and bulky, but if they can't be shipped to Europe, it's a real loss-making business. I've made the colonies just hope that this little food and product can make some money.
But the transportation conditions in East Africa are the biggest obstacle to transporting these things. Take the rivers in East Africa as an example, none of them are continuous, and they flow directly from the plateau mountains to the coast, with only a hundred or ten kilometers of navigation conditions.
Water transportation was impassable, so I thought of railways. However, the cost of railways was too high. I had to experiment in East Africa before I could make up my mind to promote it. " said Ernst.
After hearing this, Prince Karl Anton thought for a while and asked: "I have a question. You see, the main industry in East Africa is agriculture, right? Agriculture is indeed very profitable on a large scale, but you transport food from East Africa to Europe , the cost of shipping is not small, and we have to face competition in food production from Germany, Hungary, France, and Tsarist Russia. Can we really make money?
And I heard from your father that you have to pay separate costs to bring in immigrants from outside without using the local indigenous people. This is another expense, so where is the profit point of this colony in East Africa? "
In fact, Prince Carl Anton knew that overseas colonies were very profitable. Otherwise, the British could become ocean overlords just by relying on that island?
But as an out-and-out old German Junker, Prince Carl Anton really doesn't know much about the management of overseas colonies.
After all, only Austria in the entire German region had experience, but later, the results were obvious, Austria's attempts failed.
In the past few decades, the European continent has been unstable. First, Napoleon stirred up troubles, then the Crimean War, then Prussia fought twice with Denmark, and finally fought a war with the Austrian Empire.
Everyone's thoughts are focused on the European continent, and the same is naturally true for the elder statesman Prince Carl Anton. However, Prince Constantine of Hechingen's recent voyage to East Africa has made Prince Carl Anton have a strong interest in the East African colony.
Unfortunately, Constantine had already gone to East Africa, so Prince Karl Anton simply asked Ernst.
"Uncle Carl, the East African colonies are a long-term business. You can't see the pros and cons at the moment. After all, the East African colonies are just leftovers that the great powers have not taken a fancy to. They have no particularly outstanding advantages. They are basically pure investments in the early stage, and ordinary people can't play with them at all.
So when I was running the East African colony, I never thought about making a profit, but tried to let him lose as little as possible.
Although food is not profitable, the quantity is large. This is also the advantage of the few colonies in East Africa. The land area is large enough.
Although it cannot be sold at a high price, the production costs in East Africa are also low. The land is ready, but it just needs to be developed. As for immigrants, we are only responsible for their shipping fees, food and clothing, and there is an abundance of cheap labor.
It is indeed unrealistic for East African colonies to make money now, but it may be possible in the future, but overseas risks are also high, so they offset each other.
However, setting up factories in Europe is definitely a profitable business right now, and the profits are high. " said Ernst.
In fact, the East African colonies can currently maintain a balance of payments and a slight surplus. After all, East Africa mainly relies on cash crops to make money, and the market in East Africa is not only Europe, but also includes North Africa and the Middle East.
It’s not that Ernst was hiding something. It was indeed very risky to develop colonies in this era. Ernst also took advantage of the loopholes and chose a good time and place.
"That's it! It seems that it is not easy to develop overseas. I am just curious, so I asked." Prince Carl Anton said.
"Uncle Carl, there are actually good places overseas, but those places have long been divided up by those maritime countries." Ernst said.
"Okay, let's not talk about this anymore! Let's continue talking about the railway! If you have any plans, just tell me directly and don't make all the twists and turns with me." Prince Karl Anton said.
"Uncle Carl, let me tell you the truth. I actually want to directly acquire a railway company. It doesn't need to be too big, but it must have construction experience. But after all, I am not from that circle and I don't know much about the tricks inside, so I came here. I want to find out the situation from you," Ernst said.
The German regional railways are developing rapidly, and there are many large and small companies. There are those who are practical, and there are naturally those who talk a lot.
Although Ernst is also a capitalist, he can operate in different fields. If he enters rashly, the other party may not dare to cheat him. Railways are one of the pillar industries of Germany. The energy of those people is not much weaker than Ernst, and they even have a closer relationship with the government. close.
Naturally, the fewer competitors in business, the better. A businessman with strong financial resources like Ernst would definitely attract attention when he entered the railway field.
And Ernst does not intend to make trouble with these people. To be honest, the fundamental reason why he wants to squeeze into this industry is to accumulate relevant technology and experience for East Africa.
Moreover, the railway market is in great shape now, but it will not be like this in the future. When the entire market is in dire straits, it will be the right time for Ernst to enter in a big way.