KUALA LUMPUR, Malaysia, Oct. 6, 2017 /PRNewswire/ -- Cirro Capital Limited, a Malaysian-based investment company targeting cross-region projects, as recently utilized approximately USD 5,000,000 to acquire a significant stake in a Malaysian oil palm plantation.
Cirro is one of many investment companies that have made the move to acquire CPO (Crude Palm Oil) productions resources in Southeast Asia. Indonesia and Malaysia, the two largest exporters of palm oil in the world, has seen more than 200 direct investments into production facilities since 2015, and in the same period, the price of CPO has risen from USD 400+ to USD 700+ per metric tonne.
The sharp escalation of prices is largely attributed to China's One Belt One Road project. The project held summits in 2015 and 2017 thereafter, and pooled together more than 70 countries and international organizations in an efforts to reconstruct the trades routes between East and West Asia via the Ancient Silk Road Economic Belt and 21st Century Maritime Silk Road.
This mega project comprises of numerous contracted develops, all requiring massive amounts of logistics support in the form of rail and road transportation. China, being the leading authority of the One Belt One Road initiative, has invested generously in these aspect, helping countries along the trade routes improve their infrastructure.
The fact that trains and transport vehicles run primarily in diesel, and that biodiesel derived from the refining of crude palm oil is the only renewable replacement for conventional diesel is the main reason the demand of palm oil has suddenly escalated.
CEO of Cirro Capital, Nicholas Chesson states in an interview, "We believe that the demand for CPO will continue to rise, as the Belt and Road initiative has only just begun, and will continue to require large amounts of renewable fuels over the next 15 to 25 years. With no alternative energy source available at the same speed and price, palm oil is just about the only option countries and companies can count on for now."
Cirro Capital is an investment company that targets Belt and Road related projects, or projects and assets that play a supportive role in the Belt and Road initiative, such as the supply of CPO to China.