A boat sits atop a building in Otsuchi, Japan, after earthquake and tsunami which devastated a vast area of the country.
A boat sits atop a building in Otsuchi, Japan, after earthquake and tsunami which devastated a vast area of the country.

Japan faces its next huge chore: cleaning up after the quake



Where do you even start? Do you start by carting away the Chokai Maru, the 45-metre ship that was lifted over a pier and slammed into a house in the Japanese port town of Higashimatsushina? Do you start with the thousands of destroyed cars scattered like discarded toys in the city of Sendai? With the broken windows and the doorless refrigerators and the endless remnants of so many lives that clutter the canals?

In the first days after the tsunami slammed into Japan's north-east coast on March 11, killing more than 10,000 people, it seemed callous to worry about the cleanup. The filth paled beside the tragedy. Now, nearly two weeks later, hundreds of communities are finally turning to the monumental task ahead.

The mess looks endless in Japan, and hauling it away seems unimaginable. The cost? No one really knows, though the crisis is emerging as the world's most expensive natural disaster on record, with Japanese officials saying losses could total up to 25 trillion yen (Dh1.1 trillion). The World Bank says reconstruction could take five years.

So there's nothing to do but start.

Mayumi Hatanaka began with the knee-high mud that had flooded into her little seafood restaurant in the small seaside city of Shiogama.

"It's been four days, and we've been working, working," she said, standing beneath a sign that promised food "Straight From The Fishery To You."

She and her daughter were scraping the muck down their driveway and into the street. The thick, dark goo looked almost volcanic. Workers hired by the city used a gargantuan lorry-mounted vacuum, normally used for well-drilling, to hose it up. The noise of the pump and the sucking splutter of the hose nearly drowned out her voice, and she had to shout to be heard.

Simply carving out an aisle in the restaurant took three days, Ms Hatanaka said, so she has no idea when she'll be able to reopen. "I think we'll never finish," she said, only briefly willing to set aside her shovel before getting back to work.

Much of the official cleanup effort so far has been to support rescue teams. Soldiers and city crews have cleared streets of debris so rescuers can get through, and some buildings have been pulled apart in search of survivors.

Now, with little chance left of finding anyone still alive, the concern is to avoid accidentally clearing away corpses with the debris.

Takashi Takayama is a city official in Higashimatsushima, a port town badly smashed by the tsunami, leaving nearly 700 people dead. He said the city, where the Chokai Maru ship was thrown ashore, is still cleaning up from a big earthquake in 2003, and still paying the bill for that earthquake as well.

"I don't know how long it will take," he said. "The last time it was just parts of houses that were destroyed. Now it's the whole house. So I don't know how we'll do it."

With city workers desperately overworked, officials turned to a local association of construction companies to help. Those private contractors helped clear the roads and have started piling up debris in small hills, soon to be small mountains, on city land near the port.

Japan is a country where separating trash into its various components is almost sacrosanct: there are the burnables, the food items, the array of different recyclables. Takayama is already dreading the arguments when disaster-weary residents refuse to categorise their rubbish properly.

"Sorting everything out will be the first challenge," he said.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Sunday's results:

  • UAE beat Malaysia by eight wickets
  • Nepal beat Singapore by four wickets
  • Oman v Hong Kong, no result

Tuesday fixtures:

  • Malaysia v Singapore
  • UAE v Oman
  • Nepal v Hong Kong
Company Profile

Founders: Tamara Hachem and Yazid Erman
Based: Dubai
Launched: September 2019
Sector: health technology
Stage: seed
Investors: Oman Technology Fund, angel investor and grants from Sharjah's Sheraa and Ma'an Abu Dhabi

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Favourite place to go to in the UAE: The desert sand dunes, just after some rain

Who inspires you: Anybody with new and smart ideas, challenging questions, an open mind and a positive attitude

Where would you like to retire: Most probably in my home country, Hungary, but with frequent returns to the UAE

Favorite book: A book by Transilvanian author, Albert Wass, entitled ‘Sword and Reap’ (Kard es Kasza) - not really known internationally

Favourite subjects in school: Mathematics and science

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Manchester City 3 (Gundogan 18', Foden 21', De Bruyne 34')

Man of the match: Ilkay Gundogan (Man City)

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Cyber crime - This includes fraud, impersonation, scams and deepfake technology, tactics that are increasingly targeting infrastructure and exploiting human vulnerabilities.
Cyber terrorism - Social media platforms are used to spread radical ideologies, misinformation and disinformation, often with the aim of disrupting critical infrastructure such as power grids.
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5.10pm: Continous
5.45pm: Raging Torrent
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Etihad Airways flies from Abu Dhabi to Kuala Lumpur, from about Dh3,600. Air Asia currently flies from Kuala Lumpur to Terengganu, with Berjaya Hotels & Resorts planning to launch direct chartered flights to Redang Island in the near future. Rooms at The Taaras Beach and Spa Resort start from 680RM (Dh597).

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UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final

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