With the world becoming a smaller place, with information spreading at sonic speed, with streamlining of payment channels and with brands becoming the standards, there is a tangent of EXPORTS, largely ignored by the Asset Recovery professionals across the board.
Current Scenario in GCC: An investor buys the material; in this case we are assuming it is super set of various kinds of materials, which is the case usually. This pile/bouquet of heterogeneous material is taken by aggregators who dismantle into sub-set of homogeneous material, passed on to metal processors, or exporters, then either exported or re-processed. Thus the value of assets is governed by the market value of constituent metals.
What asset recovery professionals employed by the organizations is missing the larger picture. There is a huge export potential of these assets. There are innumerable challenges but gains to be reaped are handsome enough to think and act out of the box.
A brief snapshot of the statistics is illustrated below.
Between 2013 and 2015, over 200 used Japanese truck cranes were exported to China. These were over-hauled and re-exported. The regional destination for these truck cranes was the Middle East taking two-thirds of them, followed by the markets of South East Asia.
Learning from USA and Mexico model.
US Commercial Services has made a trade of surplus assets between US and Mexico a focal point. According to 2010 report by Dan Crocker out of 150 billion USD worth of trade between Mexico and US, roughly 30 billion USD was the export of surplus assets to Mexico. Obviously there are far fewer bottlenecks between US and Mexico.
A parallel economy is thriving. The cross-border trade is already happening. Should organizations with considerable and regular supply of redundant assets, look for alternative channels for better recovery?
Next: SWOT Analysis of ‘Surplus Asset Disposal from GCC through Exports’