My absurd experiences in North America over the years

The trip to Toledo went somewhat smoothly, which was a bit unexpected.

The day after Li Fu arrived in Toledo, his meetings with NS and the Port Authority concluded smoothly, and the process was more like a celebration party than a business meeting.

Both parties had a clear desire to cooperate, and they quickly reached a consensus on the core terms.

NS offered a shipping quote slightly below the standard rate, and a verbal agreement was finalized on the same day.

In September 2010, NS opened the "Heartland Corridor," which allows for double-decker container shipping, saving approximately $500 in shipping costs per container.

At that time, the market price for a 40-foot container from the West Coast to Toledo was around $3000.

Forrest Capital's logistics hub, NS offered a 22% discount as a major client committed to providing long-term, stable freight volumes.

Generally speaking, large-scale projects can get a discount of 15%-25% on the standard rate.

22% is quite a good deal.

However, this offer comes with a condition: Forrest Capital must sign a contract that lasts for twenty years.

The last few miles of dedicated line connecting to the main line are very expensive, and NS is willing to cover 30% of the cost, provided that Forrest Capital provides a 20-year long-term freight commitment.

The port authority provided a long-term lease framework for 1500 feet of shoreline in the North Wharf area at an annual rent of US$100 million.

To demonstrate its sincerity, the port authority can offer a rent-free period for the first year, followed by a 30% discount on the standard rate for the first five years.

That means the total amount for the first six years was $350 million.

However, they also have a prerequisite.

The lease must be for at least thirty years.

If Li Fu hadn't known beforehand that 30-year long-term leases were the industry norm for such large-scale infrastructure investments, he would have been shocked.

Of course, the rental fee is not the only cost. There are also other fees such as berthing fees, dock usage fees, and port charges, which can be described as quite numerous.

However, the port authority has offered various discounts on these fees in previous years.

Both sides are doing their best to cooperate with Li Fu, hoping to expedite the project's implementation.

This is not surprising. Li Fu's initial idea was correct: factional struggles are for the big shots at the top; local governments and private companies always prioritize their own interests.

NS is a privately owned enterprise that aims to make a profit, while the port authority uses performance as its standard.

Once Li Fu's logistics hub is completed, it can bring in 400 million in revenue for the port authority every year, and NS will be even more impressive, starting at least 1 million.

In comparison, the federal and state government funding amounts to very little more than a pittance by the time it reaches their level.

Only a fool wouldn't welcome it!

The next morning, Li Fu had already arranged for Thompson to book his flight back to New York to sign a cooperation agreement with Jackson.

On the Toledo side, Maurice and his legal team can handle the details of the contract.

Just before they were about to leave, the mayor's assistant suddenly came to their door, inviting Li Fu to the city hall on behalf of the mayor.

The current mayor of Toledo is Michael Bell, an independent who previously served as the city's fire chief for many years.

Since taking office in January of this year, he has been constrained by the $48 million fiscal deficit left by his predecessor.

Forrest Capital's plan to build a large logistics hub in Toledo is a godsend for him.

Despite the tight schedule, Li Fu agreed, considering the importance of local government support.

At 2:40 p.m., he walked into a slightly worn oval-shaped conference room in the city hall.

Bell was already inside, sitting at the head of the long table with an open folder in front of him. When he saw Li Fu come in, he closed the folder, walked around the long table, and took the initiative to greet him warmly with a handshake.

For him, his future political achievements depend on the young people in front of him.

"Mr. Li, please sit down and wait two minutes," he said, explaining that he still had some official business to attend to.

Li Fu nodded and then sat down on one side of the long table.

A moment later, the meeting room door was pushed open again, and two more people walked in. Neither of them looked like government officials.

Leading the way was a burly man in gray overalls with the UAW logo printed on the back. Underneath his open jacket was a plaid shirt with a slightly wrinkled collar. His strong hands hung limply at his sides, and he walked with a slight gust of wind.

Another person followed behind him; he was thin, wearing a dark gray suit and metal-framed glasses, and walked at a leisurely pace.

The two sat down opposite Li Fu, the wooden chairs making a slight creak. After sitting down, they both looked at Li Fu, seemingly wanting to confirm his identity.

Bell finished signing the folder in front of him, leaned back in his chair, and said, "Let me introduce you. This is the famous Li Fu, Mr. Li, CEO of Forrest Capital. You must be familiar with him."

After confirming that the person opposite them was Li Fu, the two men stood up and shook hands across the long table.

Despite having seen the photos, they were still surprised to find that Li Fu was actually so young; they found it hard to believe.

"This is Jim Larsen, chairman of UAW Local 12. He oversees the workers at the four UAW factories in Toledo," Bell introduced them as they shook hands. "And this is Thomas Alfred, editor of the Toledo Blade."

The three exchanged a few polite words and then sat down again.

After everyone had arrived, Bell got down to business, "Mr. Li's investment in Toledo is quite substantial. Today, let's get to know each other first. I hope that we can all work together to get the project off the ground and operational as soon as possible."

Larsen leaned his chair forward slightly, rested his elbows on the table, and spoke in a loud voice as if he were used to it. "Mr. Li, I heard that your logistics hub needs 1,500 to 2,000 long-term positions. Is that true?"

Li Fu nodded. "A conservative estimate would be this many. The construction period might require another three thousand construction workers. Can you help me find that many people?"

He knew all too well the importance of labor unions in America.

The other party may be trying to get some kind of promise from him, such as guaranteeing workers' treatment or giving priority to locals.

Li Fuben invested to boost local employment and improve people's livelihoods, which is of course not a problem. As for the union's other operations, he neither wants to interfere nor ask about them.

This organization has both advantages and disadvantages.

"Three thousand? Of course," Larsen said, somewhat surprised, but immediately said no problem.

Bell turned to his left. "Thomas, is there anything you need to know?"

The Blade has been in Ohio for over 170 years and is the region’s most popular media outlet, holding a significant position in Toledo.

Historically, it has influenced the city’s development through in-depth reporting, and in 2004 it won the Pulitzer Prize for Investigative Reporting for its series of reports exposing the atrocities committed by the U.S. Army’s “Tiger Force” in the Vietnam War.

Today, The Blade still manages to expose problems through investigative reporting, and its editorials and viewpoints profoundly influence public opinion and the local political agenda.

Li Fulai had learned about this beforehand, so he took it very seriously.

Alfred crossed his fingers on the table, paused for a moment, and then slowly spoke, "Mr. Li, I don't have any specific questions to ask, but I hope your investment isn't just for show. We will report this matter truthfully."

As a veteran media professional, he has seen too many companies come to Toledo, making grand pronouncements that they will bring jobs and establish a foothold in the city, only to leave nothing behind in the end.

Daofeng Daily is an extremely localized media outlet, deeply intertwined with local development.

Therefore, even if someone like Li Fu were to invest, Alfred was not so optimistic.

The mayor's move was intended to allow them to familiarize themselves with the project first, so that they could cooperate as much as possible in the future implementation, construction, and operation of the project. He was willing to do this.

But he wasn't sure how long Forrest Capital would stay.

"Perhaps you are not aware, but I generally didn't inquire about the specific details of project coordination before, whether it was an investment of tens of millions or hundreds of millions..."

Li Fu decided to reassure the other party, "You saw it this time, I came to negotiate in person, personally inspected the site, and personally sat down with you to discuss things. Yesterday, I just reached a 20-year cooperation agreement with NS and finalized a 30-year contract with the Port Authority. We are not here for the next few years, but for the next few decades."

These words surprised not only Larsen and Alfred, but also Mayor Bell, though he was soon overjoyed; this was a rare and massive project.

In other words, this is also a very impressive political achievement.

"Then I'd like to wish us a pleasant cooperation in the future, and for Toledo's economy to take off," Bell stood up and shook hands with Li Fu again. "Toledo will remember this historic day."

Outside the window, the wind from the lake was blowing across the square in front of the city hall, making the flags that had been hanging there for a long time flutter in the wind.

This former industrial hub is about to enter a new era.

……

Thousands of miles away in New York, Goldman Sachs is holding an emergency closed-door meeting with four senior executives from its investment banking division, who are also members of the company's top management committee.

They are Salomon, co-head of the investment banking division; Weinberg; Dale, co-chairman of the investment banking division; and Sykes, co-head of global mergers and acquisitions.

Their meeting was simply because of the recent big moves by Li Fu and JPMorgan Chase.

"According to reliable sources, their investment this time may exceed 10 billion, with JPMorgan Chase accounting for no less than 30%. The project they are investing in should be a regional logistics hub located in the Great Lakes Rust Belt," Dell briefly explained.

"Investing so much in rust belts is unprecedented, isn't it?" Solomon felt there shouldn't be anything to worry about.

What kind of business prospects does that place have? It can't support such a large investment.

"We don't evaluate whether a project is successful or not, we only look at the investors. Has Li Fu ever failed? He bought Big Machine Records when Taylor was still unknown. Now it seems to be the most successful investment in the record market, right?" Dale looked at Solomon.

"Take Hacksaw Ridge for example. Gal Gadot, who was previously considered just a pretty face, found her niche immediately. In just a few months, she earned critical acclaim for MGM and injected fresh blood into the company. Could any of you have predicted that? I remember someone saying a few months ago that her foray into the entertainment industry was destined to fail, but that's not the case at all!"

He told his colleagues at the meeting to stop thinking about any other projects and just focus on Li Fu.

The other party is a polymath, regardless of whether they are investing outside their field.

"So what can we do?" Weinberg shrugged. They were just an investment bank, a financial institution, not an entity like Amazon or Apple.

Getting involved in businesses like logistics hubs is clearly unrealistic.

"But we can't just do nothing, can we?" Sykes said in a very serious tone. "If JPMorgan Chase continues to push its investment banking business, we will be left far behind. We have to do something."

Strictly speaking, Goldman Sachs and JPMorgan Chase are not in the same league, but they have always been rivals of the same caliber in the investment banking field.

Goldman Sachs is even a leader in some business segments.

However, with the emergence of Li Fu, they began to lag behind JPMorgan Chase in traditional M&A business.

To this day, they still can't understand why Li Fu's investment scope is so wide. Every collaboration between JPMorgan Chase and him not only earns real money, but also continuously wins him a good reputation in the industry.

If this continues, Goldman Sachs will lose its advantage in its areas of expertise.

"How about investing in other logistics companies to seize these businesses?" Solomon tentatively suggested.

Since Li Fu always succeeds, it means that these business segments have sufficient commercial prospects, and directly investing in other logistics companies to seize business may be feasible.

Dell shook his head. "Let alone logistics companies, even Amazon might not have as much cash flow as him. If we invest, others might not be willing to take the risk, especially with JPMorgan Chase providing him with financing."

"What else can we do?" Weinberg shrugged again.

He felt that holding such meetings was meaningless; constantly preventing others from succeeding instead of improving oneself would inevitably lead to defeating one's opponents.

Dale glanced at him, wanting to retort, but ultimately held back.

"I've heard some rumors from Congress," Sykes said in a low voice. "Many members of Congress and high-ranking officials are very dissatisfied with Li Fu and suspect that he is deliberately sabotaging the President's cabinet's strategic plans. He will definitely face congressional scrutiny after the midterm elections."

Goldman Sachs has extremely extensive connections within government departments, and it has long been jokingly referred to as the "Whampoa Military Academy of American politics" by some in China, while the American public calls it Government Sachs.

This extensive network of connections stems primarily from America's unique revolving door mechanism between government and business, where Goldman Sachs executives frequently switch roles with government officials.

Goldman Sachs considers it a tradition and an honor for its employees to serve in government, transforming them from company CEOs or senior executives into high-ranking Treasury officials, Federal Reserve officials, and sometimes even Treasury Secretaries or Federal Reserve Governors.

After leaving office, the high-ranking official rejoined Goldman Sachs, using his connections and experience to serve the company.

It's perfectly normal for executives at Sykes' level to have inside information about Congress; sometimes Goldman Sachs can even change congressional resolutions through political lobbying.

"Then let's wait a bit longer," Solomon said, vividly recalling their failure last winter. "Let that young man continue pushing these projects, and when he's under scrutiny, we'll deliver the fatal blow. Taking over the projects then will be a natural progression, won't it?"

When their eyes met, all four of them, except Weinberg, smiled.

They didn't believe that such a large project could be handled so meticulously; no one could withstand such scrutiny.