Oct
6
2011
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Venezuela’s Infrastructure Crumbles as Nationalizations Continue on the Rise

Engines falling off of jet planes, commuter trains colliding, jacuzzi-size holes in the middle of main roads – those are but a few examples of the perils Venezuelans face when traveling in and out of the country. As the Chávez government continues to nationalize the remaining private companies in the transportation industry, the outlook for Venezuela’s already-crippled infrastructure does not look promising.

Transportation-related accidents are up across-the-board in Venezuela, causing delays and endangering the Venezuelan people no matter how they choose to travel. Frequent air travelers were alarmed to learn that a DC-9 belonging to Aeropostal, a state-owned Venezuelan airline lost both of its engines during a recent landing in Puerto Ordaz. The incident should not come as surprise to anyone. After all, Venezuela has reportedly the most obsolete air fleet in the Americas.  In the month of September alone, there were 33 aviation scares.

Nobody is safe in Venezuela, neither by air or land. Three days after the Puerto Ordaz near-disaster, three Caracas commuter trains collided, killing a driver and injuring dozens of passengers. Two days earlier, traffic heading into the city of Maracaibo was held up for hours after a metal joint between two sections of a long bridge over Lake Maracaibo fell into the waters below. To add insult to injury, potholes in Venezuela’s roads have become so large that local reporters have drummed up a new term to describe them – “mega-holes.” Some of these holes are large enough to swallow an entire vehicle.

True to form, Mr. Chávez has responded to the infrastructure crisis by doing what he does best – ordering more expropriations.  The recent takeover of Conferry is the latest instance of an expropriation frenzy which experts see as “part of the problem, rather than the solution.” Chávez has even “centralized” control of many public services, which were once run by Venezuela’s local governments. As the government bureaucracy swells, public services become unreliable and dangerous. In the past 10 years, for example, the Caracas metro has been riddled by breakdowns, overcrowding, and lengthy delays.

While Mr. Chávez’s 21st Century Socialism continues to crumble, Venezuelans may increasingly choose to just stay home.

 
Sep
30
2011
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In Case You Missed It… Articles Roundup Week of 9/30/11

In this week’s roundup… Settlement talks between U.S. companies and Chávez government over expropriated assets are unlikely, as two more American firms file arbitration claims against Venezuela before the World Bank’s International Center for Settlement of Investment Disputes (ICSID); Meanwhile, the Venezuelan government announces yet another expropriation; Chávez strikes out with Major League Baseball; Venezuela’s prisons are among the most dangerous in the continent; and Chávez tries to silence rumors about his health in his usual flair.

Venezuela Again Rejects Oil Settlement Talks, The Wall Street Journal

Venezuelan Oil Minister Rafael Ramirez on Tuesday rejected talk that his government was planning to settle with companies like Exxon Mobil Corp. and ConocoPhillips outside of official arbitration proceedings for compensation for projects nationalized by President Hugo Chavez nearly four years ago.

Helmerich Sues Venezuela Over Seized Drilling Rigs, The Wall Street Journal

Helmerich & Payne  Inc. has filed a lawsuit against Venezuela over the 2010 government takeover of 11 drilling rigs belonging to the Oklahoma-based oil-services company.

Owens Illinois hits Venezuela with arbitration claim, Reuters

U.S. bottle maker Owens Illinois (OI.N) has filed a claim for arbitration against Venezuela at a World Bank tribunal after President Hugo Chavez nationalized its operations in October last year.

US glass container maker Owens-Illinois seeks arbitration in Venezuela expropriation dispute, The Washington Post

U.S.-based glass container manufacturer Owens-Illinois Inc. said Wednesday it is seeking international arbitration in a dispute with Venezuela over the expropriation of two factories in the South American nation.

Chavez orders nationalization of ferry company, The Associated Press

President Hugo Chavez has ordered the nationalization of Venezuela’s largest ferry company. Chavez says the company, Conferrys, has failed to upgrade its vessels, causing delays and poor service from the eastern city of Puerto La Cruz to Margarita Island.

Venezuela gov’t strikes out with big league, Reuters

Baseball and President Hugo Chavez are both popular in Venezuela, but uncertainty about his policies is prompting major league teams to stop investing here while developing their Dominican Republic training camps.

Guillen says he’s no fan of Chavez, The Associated Press via The Sacramento Bee

Ninety minutes into Ozzie Guillen’s first media session as manager of the Florida Marlins, the subject turned to politics – specifically, fellow countryman Hugo Chavez.

Venezuela’s Prison Chief Says No New Facilities Needed, The Wall Street Journal

The head of Venezuela’s recently created prison ministry, which was formed earlier this year in the wake of a bloody inmate riot at a notoriously overcrowded facility, said in an interview published Tuesday that building more prisons is not necessary. “

Hugo Chávez tries to silence health rumors with his usual flair, The Christian Science Monitor

Hugo Chávez assembled reporters to his palace and played ball, after a Miami-based newspaper suggested the spirited Venezuelan President was on his last legs.

 

 
Sep
29
2011
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ICYMI… Hugo Chavez in hospital ‘for kidney failure’

Hugo Chavez in hospital ‘for kidney failure’

The Telegraph

September 29, 2011

The leftist, staunchly anti-US stalwart Chavez went into the Military Hospital in Caracas on Tuesday morning, the report on the newspaper’s website said, citing anonymous sources with knowledge of the case.

“He was in fairly serious overall condition,” a source told the Miami-based Spanish-language daily. “When he arrived, he was in quite serious shape and that is why he was brought in for emergency care.”

Venezuela’s Information Minister Andres Izarra appeared to deny the report in a posting on the micro-blogging website Twitter.

“Those who should be admitted are the journalists of the Nuevo Herald, except into a madhouse (instead of a hospital),” Izarra tweeted, without providing further details.

On Sunday, Chavez sought to assure Venezuelans he was healthy, telling them that cancer-fighting chemotherapy treatment has not left him with any debilitating side effects.

Click here to read more.