Strikes Hobble German Railways, Airports

An ODEG train arrives at the main train station during a nationwide strike called by Germany's train drivers union GDL over wage increases, in Berlin, Germany. REUTERS/Annegret Hilse Purchase Licensing Rights
An ODEG train arrives at the main train station during a nationwide strike called by Germany's train drivers union GDL over wage increases, in Berlin, Germany. REUTERS/Annegret Hilse Purchase Licensing Rights
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Strikes Hobble German Railways, Airports

An ODEG train arrives at the main train station during a nationwide strike called by Germany's train drivers union GDL over wage increases, in Berlin, Germany. REUTERS/Annegret Hilse Purchase Licensing Rights
An ODEG train arrives at the main train station during a nationwide strike called by Germany's train drivers union GDL over wage increases, in Berlin, Germany. REUTERS/Annegret Hilse Purchase Licensing Rights

Germany faced strikes on several fronts on Thursday, as train drivers and airport workers walked off the job, causing chaos for millions of travellers and adding to the country's economic woes at a time of looming recession.

The strikes are the latest in a wave of industrial actions to hit Germany, where high inflation and staff bottlenecks have soured wage negotiations in key parts of the transport sector, including national rail, air travel and public transport, Reuters reported.

Industry has warned about the costs of such strikes, after Europe's largest economy contracted by 0.3% in 2023 and the government warned of a weaker-than-expected recovery.

A one-day nationwide rail strike costs around 100 million euros ($107 million) in economic output, Michael Groemling, head of economic affairs at IW Koeln, told Reuters during GDL's last strike in late January.

Train drivers began a fifth round of strikes in a long-running dispute at 2 a.m. (0100 GMT), after a walkout in the cargo division started on Wednesday evening.

Also on strike were airline ground staff at Lufthansa (LHAG.DE), opens new tab and security staff at some airports. These included Germany's busiest Frankfurt hub, whose operator Fraport said 650 of Thursday's 1,750 planned flights had been cancelled.

The train drivers' walkout, set to last until Friday afternoon, marks the beginning of a series of strikes planned by GDL as it pushes for reduced working hours at full pay.

"The motivation is high to follow through with the conditions that we have set as GDL members," said train driver Philipp Grams at the picket line in Cologne.

Just one in five long-distance trains was running, rail operator Deutsche Bahn said, but passengers showed some understanding.

"I don't like it much, but if it makes a difference, if people want to change something, why not?" said Katerina Stepanenko, standing on the platform at Cologne's main station.

Deutsche Bahn has accused the union of refusing to compromise.

"The other side doesn't budge a millimetre from its maximum position," spokesperson Achim Stauss said.

Economy Minister Robert Habeck, however, said he had lost sympathy for the strikers.

"It must be possible to find a solution and not push your own interests so radically at the expense of other people; I no longer think that's right," he told broadcaster RTL/ntv.

The ADV airport association, meanwhile, warned that strikes in the aviation sector, which on Thursday took place in Hamburg, Duesseldorf and Frankfurt, were damaging Germany's reputation as a centre for business and tourism.

Lufthansa ground staff began a two-day strike on Thursday, and further woes were brewing for Germany's flag carrier after cabin crews voted on Wednesday for industrial action, with the UFO union assessing the next steps.

Reporting its annual results, Lufthansa warned that strikes were a factor that would lead to a higher-than-expected operating loss in the first three months of 2024.



Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)
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Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)

Saudi Arabia's non-oil exports reached an unprecedented SAR515 billion in 2024, marking the highest value in the Kingdom's history. This achievement represents a significant 13% increase compared to the previous year and an impressive growth of over 113% since the launch of Vision 2030.

The robust growth spanned all export sectors. Merchandise exports climbed to SAR217 billion (+4%), fueled by respective increases of 2% and 9% in petrochemical and non-petrochemical exports, reported the Saudi Press Agency on Saturday.

Re-exports surged to SAR90 billion, demonstrating a remarkable 205% growth since the inception of Vision 2030. Services exports also reached an all-time high of SAR207 billion, exhibiting a 14% year-on-year increase and a substantial 220% rise since Vision 2030's announcement.

Saudi Export Development Authority CEO Abdulrahman Althukair attributed this historic non-oil export performance to the Kingdom's sustained efforts in economic diversification and enhancing the competitiveness of national products.

He highlighted the authority's commitment to facilitating national companies' access to new markets and bolstering their export capabilities through comprehensive programs encompassing training, empowerment, promotion, and advisory services. This aligns with Vision 2030's goals to establish a thriving economy where non-oil exports are a key driver of sustainable growth.

In 2024, petrochemical commodity exports amounted to SAR149 billion, constituting 68% of total commodity exports, and registered a 2% increase in value and weight compared to the previous year.

Non-petrochemical commodity exports achieved a remarkable SAR69 billion (32% of total commodity exports), the highest value in recent years. This included record export figures for over 205 Saudi products, such as food and dairy products, minerals, and building materials. Fertilizer exports also demonstrated exceptional growth, with product weight reaching a historic peak in 2024, increasing by 5% year-on-year, and more than fivefold in value since the launch of Vision 2030.

The Kingdom's re-export sector also delivered a historic performance in 2024, reaching SAR90 billion, a 205% increase compared to 2016, a 42% rise year-on-year, and a 114% increase compared to 2019. This was primarily driven by the re-export of mobile phones, which reached a record value of SAR25 billion, more than doubling their 2023 value. The operation of the integrated logistics zone at King Khalid International Airport played a significant role in this remarkable growth by enhancing supply chain efficiency and facilitating re-export operations.

Machinery, automated devices, transportation equipment, and parts thereof constituted 84% of total re-exports in 2024. Re-exports of aircraft parts also experienced substantial growth, increasing from SAR1.6 billion in 2022 to over SAR2 billion in 2024.

In 2024, the Kingdom exported goods, re-exports, and services to over 180 countries, with 37 countries registering record import values, including the UAE, Bahrain, Iraq, Oman, Algeria, Spain, France, Poland, Libya, and Syria. Other countries, such as Indonesia, Thailand, Morocco, Pakistan, Nigeria, Germany, Greece, and Bulgaria, also achieved record import volumes.

Services exports reached a record SAR207 billion in 2024, marking a 14% year-on-year increase and a 220% rise since 2016. The travel and tourism sector was a key driver, increasing by 270% since 2016. In 2024, Saudi Arabia welcomed approximately 30 million international tourists, contributing to a 150% increase in travel exports compared to 2019, representing 74% of total service exports.

The Kingdom also recorded a 69% increase in international tourist numbers compared to pre-pandemic levels and a 148% increase in tourism revenues compared to 2019. Saudi Arabia led the G20 in tourist number growth, with a 73% growth rate during the first seven months of 2024 compared to the same period in 2019. The transportation sector contributed 12% of total service exports, achieving a 5% year-on-year growth.