Horizon Lines Concludes Puerto Rico Terminal Assets Sale
US cargo liner Horizon Lines has sold its San Juan, Puerto Rico container terminal assets and assigned its lease with the Puerto Rico Ports Authority to Luis Ayala Colon Sucrs.
The companies entered and executed the Asset Purchase Agreement effective March 11, 2015.
The Agreement follows Horizon Lines’ announcement on November 11, 2014 to cease providing liner service between the U.S. and Puerto Rico which occurred in early January 2015, and to terminate San Juan terminal services by the end of the first quarter of 2015.
Horizon Lines said it expects to incur restructuring charges between USD 90 million to USD 100 million related to terminating its Puerto Rico operations.
In 2012, Horizon operated four vessels on its Puerto Rico trade, but the company had been forced to remove two vessels from the Puerto Rico service due to prolonged falling demand and the need to cut costs.
The two vessels operated by Horizon Lines until January in the trade are both required to be dry-docked during 2015 at an estimated combined cost of USD 16-20 million, which was an additional reason to quit the service in addition to growing competition from other carriers.