Norden Secures 9-Year Transport Contract in Canada
- Business & Finance
Danish shipping company Dampskibsselskabet Norden A/S has inked a 9-year contract to transport a total of 3.5 million tons of wood pellets from Vancouver and Prince Rupert in Western Canada to Europe starting from 2018.
Signed with Canada’s wood pellets manufacturer Pinnacle Renewable Energy Inc, the contract would be undertaken by Supramax vessels in 8 trips a year, with each trip expected to take 65 days.
“The contract with Pinnacle provides us with an opportunity to achieve two things: First, the contract ensures that our vessels return with cargo from the Pacific to the Atlantic Ocean – a route where traditionally there is less cargo to transport. Secondly, the contract cements our already strong position in the biomass market, in which we have built up considerable experience and expertise,” Michael Boetius, Vice President and head of the Industrial Bulk in Dry Cargo at Norden, said.
The deal comes only a week after the shipping firm clinched a 10-year contract to transport 20-24 million tons of coal to a power plant on Luzon Island, the Philippines.
Expected to start in the first quarter of 2017, the deal was signed with the Philippine energy company GNPower Mariveles Coal Plant Ltd. Co.
Although the company did not disclose the financial terms of the coal transportation contact, it said that it represents “the largest contract in the history of NORDEN.”