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Chapter 233: Turning Over a New Leaf (3)

Translator: None Editor: Eastman

“Mr. President. This is not a mere dream. You’d be able to request a technical tie-up from the Korean train producer in exchange for a train trade.”

“Coming from your mouth, Mr. Lee, I’m intrigued by it. The problem is Russia. The Russian government will try to monopolize the train car trade.”

“I understand that Russian products are sturdy but their trains tend to break down easily. Russian producers will also admit that too. Why don’t you plan a conference so you can compare different products’ price and performance? I’ve been to an international railway exposition in Istanbul not long ago and it was accepted well by the international public.”

As Youngho asserted his opinion, the president could not hide his feelings. Youngho did not miss that.

“I also confirmed that local production is possible. Then Azerbaijan will be able to foster local technicians and technology transfer would naturally follow along. There is a local factory in Turkey already, so there’s a high possibility that Azerbaijan will have one too. Since it’s a huge problem to transport trains from overseas, the producer will be intrigued to build a local factory. As for Russia, it won’t reject our request if we say that we’ll take care of our own trains that will be operated in the local routes.”

“That’s right. What is made in Baku are our trains. You’re suggesting something big here. I’ll ask the Minister of Transport to examine the foreign producer’s technical skills.”

Excited by the president’s approval, Youngho had to hold himself from jumping up from his seat.

“Mr. President. That Korean producer produces not only trains but also tanks for Korean military since it’s also a defense company. I’d like you to keep that in mind for your decision.”

As he walked out from the presidential palace after slipping crucial information to the president, his steps were light.

Youngho had already had an agreement with the Korean company, H Rotem.

When he went to Istanbul for wine distribution, he came across H Rotem’s local factory. When he compared the company’s train prices with German G company’s trains and it seemed that H Rotem had better prices, so he had contacted H Rotem.

Although Youngho did not have an official title of being a managing underwriter of the railroad project, H Rotem could easily confirm that he was involved in the private consortium. Trusting his reputation in Baku, the company actively negotiated Youngho’s agency commission for Azerbaijan’s train deal.

Youngho had no reason to refuse the company’s offer as it suggested a high commission for each train car sold.

H Rotem estimated that Azerbaijan would use about at least 300 train cars for the intercontinental railway. The number of cars was a project that required local factory production.

It seemed that his visit to the presidential palace earned the whole city’s attention.

The major reason for his visit this time was to give this year’s wine to the president and high officials since Zeynep Wine was the official liquor for Azerbaijan’s state banquet. Since the dictator-like president’s authority was unimaginable in the country, it was a huge deal for officials that Youngho had a private meeting with the president.

Hearing the news, Sevan even visited Youngho in Zeynep Farm with an excuse that he came to visit his relatives. The purpose of Sevan’s visit was to find out whether Youngho had talked about him with the president.

Youngho did not say a single word about the railway project since he could not freely talk about what happened in the presidential palace and moreover, it was related to his business interests. Although Sevan was like a distant cousin now to him, it would be silly of him to give out any business information since it would eventually leak.

H Rotem’s staffs from Korea visited Baku.

Because the railroad project was worth about 300 billion in Korean won, the company proactively engaged to seal the deal. Another reason for the company’s aggressive involvement in the project was that Youngho had told its staffs that they would possibly be able to make their foray into Kazakhstan as well in the future.

Kazakhstan was twelve times bigger than the size of the Korean Peninsula and railroads were intertwined like a cobweb. Based on the statistical data that the old train cars that would be replaced were more than 200 in number a year, Youngho had induced the company staffs into investing in Azerbaijan’s railroad project.

The staffs of H Rotem stayed at Arirang Hotel in Baku until the day they returned home. They could have stayed in another hotel but their gesture showed their intelligence capabilities since they must have found out that Youngho was the owner of the hotel.

While they were staying in Baku, Youngho showed them around Zeynep Farm. When they arrived at the farm, a light airplane was landing at the farm and everyone seemed to be surprised to see an airplane. It was understandable since it was hard to imagine a farm with its own airfield in Korea. As Youngho told them that the plane had just come back from Kazakhstan, they were astounded by it. Although he did not intend it, it somehow happened.

The staffs had already researched about Youngho and whom he had married. Therefore, they all politely behaved around Youngho’s family and it was quite surprising. Being a world-class company that exported cars to many nations, the company was indeed different from many others.

“Mr. Lee. We could negotiate well with the Azerbaijani government all because of you. Thank you. I heard that you’ve even had a private meeting with the president of our company.”

“It’s nothing to thank for. I’ve also invested in the railroad project and I was looking for high performing trains with competitive prices. One more thing, I invited all of you here because I plan to install a railroad on my farm in Kazakhstan. I wanted to get some advice from experts.”

“How big is your farm that you’re thinking about running a train?”

“It’s about two-thirds of the size of Seoul, so it’ll be more efficient to install a railway rather than constructing roads for cars. I just wanted to hear if this is a reasonable idea.”

At the size of the farm, H Rotem’s staffs could not close their mouths in amazement.

“It’s hard to imagine a farm with such huge area.”

“I originally planned to do wheat farming but I just started engaging in stock-farming due to water deficiency. The site is too vast and I heard that the train was more efficient than using cars. Would it cost a lot?”

“We majorly deal with producing train cars but we could investigate the validity. I’d like to look around the farm sometime.”

“Then, would you like to go see it tomorrow?”

The next day, everyone gathered in front of his Cessna airplane at Zeynep Farm’s airfield.

As he told everyone to carry a parachute before boarding, all of the staffs’ faces turned pale. For the next few minutes, he had to convince everyone that his light airplane was safe. Although they nodded and got on board, they still did not seem to relax. They must have been regretting to agree to come with Youngho.

When Youngho sat in the pilot’s seat, some even let out groans. Next to him was Ilkwon whose face turned weird as he held in his laughter.

The staffs were stunned to see Youngho to take the cockpit since they had thought that there would be a professional pilot.

As the plane took off and the altitude was stabilized, everyone looked down. The plane was already flying over the Caspian Sea. They got even frightened by looking at the sea since parachutes could not save them if they fell to the sea.

“Gentlemen. You can relax. My airplane is safer than a jumbo jet. Even if we make an emergency landing, you won’t have to worry since it is equipped with a safety device.”

This was better not said. Youngho’s remark nearly knocked people out of shape.

The area of Arirang Farm was bigger than what the staffs had imagined and they were all astounded by it. They said that the orbital train would be more economical but they would not recommend it now since there was not a lot of transportation of goods. It was certainly efficient to install railroads and run a train than making roads for cars and the most effective place for a railroad would be between the farm and the wharf.

Youngho was satisfied to hear a positive response. Expecting that the farm would make regular profits from farming and ranching by next year, he planned to start the construction of the railroad and run the train by then.

This year’s wheat yields that were to be transported were about 1,500 tons and a grain truck would have to have more than fifty round trips for such amount. It was not reasonable to buy more trucks that would only be used around the fall.

If the farm produced more regular yields in the future, it could produce up to 16,000 tons of wheat. It was nonsense to move them on trucks. A train was a better choice by far.

Youngho did not show Arirang Farm to the staffs of H Rotem without a secret reason.

It was hard to imagine Kazakhstan’s vastness without seeing it with one’s own eyes. He wanted to show them that the country’s unlimited potential for railroad development. Besides, if the company could take over Kazakhstan’s railroad, they would be able to make a stepping stone to expand its business to other countries in Central Asia such as Kyrgyzstan, Uzbekistan, and Turkmenistan.

Since China was taking over the country’s economy at a tremendous speed, Youngho wanted the country to have technical skills so it could oppose China. Many countries in Central Asia did not have their own railway because they did not have the technology.

As Youngho made a huge speech about the need for collaboration to build a factory in Kazakhstan, H Rotem’s staffs applauded him.

“Mr. Lee. Our company had already investigated the market here but we did not have a chance to start our business here. Since the Kazakh president is actively attracting foreign corporations and investments, we’ll confirm the establishment of a factory as soon as possible.”

“You don’t have to worry about the factory’s site. I’ll also ask the president for other support measures.”

Since the factory could be built anywhere near the Arirang Farm’s wharf, Youngho assured them not to worry about it. It was the best location since any products from the factory could be distributed on large vessels. Also, there was more than enough manpower on Arirang Farm who could work in the factory.

“Then, there is no reason for us to hesitate. We’ll make an arrangement in our return schedule to meet the Kazakh officials before we leave if necessary.”

Having investigated the country’s market already, the vice-president was eager to start the business in Kazakhstan. Youngho also added words to drive a wedge in for his decision.

“You must already know about how much iron is being produced in this country. I’m saying that there is plenty of resources that your company is looking for. I also have an open-air mine to myself.”

Hearing Youngho’s words, Kim Joo-hyuk, the vice president, opened his eyes widely.

He remembered the chairman’s will to seek raw materials and mineral resources. The chairman had promised to give a promotion to anyone who closes a deal for mineral resources. Kim Joo-hyuk wanted to put up a good show for his business trip.

Raw materials were quite expensive and securing them meant that the company would be able to gain high price competitiveness for its products. He was ready to dance if he could secure raw materials now. He could even become a president if he could seal the deal this time.

“Mr. Lee. I give you my word for the establishment of a local factory for train cars in Kazakhstan. In exchange for that, could you help us secure raw materials?”

“Are you certain, Mr. Kim?”

“I can assure you that but about the raw materials...”

“Great. I will get you as much amount as you want. I swear it by Arirang Farm’s name.”