TransAtlantic Enters Partnership Agreement with [email protected] Shipping
Rederi AB TransAtlantic has entered into an agreement with [email protected] Shipping AB where TransAtlantic effectively outsources all the commercial activities of its Short Sea Bulk division, starting September 1, 2013. Additionally, the agreement sets the terms for the chartering out all of TransAtlantic’s short sea bulk vessels to [email protected] TransAtlantic will continue to have ownership of its current short sea bulk fleet and also continue the current charters of short sea bulk vessels. [email protected] will charter in these ships from TransAtlantic.
This partnership enables [email protected] to gain more scale and efficiencies than TransAtlantic and [email protected] have previously had separately. It effectively creates a Nordic top player in the Baltic short sea bulk market. This has obvious benefits for the customers of both TransAtlantic and [email protected]
TransAtlantic’s strategy is to become a more dominant player in key markets by focusing on the Baltic RoRo and Container segments. Entering into the agreement with [email protected] fits very well with this strategy and is part of TransAtlantic’s restructuring and repositioning program.
”Short Sea Bulk is no longer part of our core business. The agreement with [email protected] enables us to intensify our activities in our two key segments, RoRo and Container. At the same time, it removes around SEK 100 million of unprofitable quarterly revenue”, says Heléne Mellquist, President TransAtlantic Industrial Shipping division. ”Overall, this transaction should be accretive to the Industrial Shipping division’s earnings from day one.”
As a result of this partnership, TransAtlantic will make reductions in staffing in order to reflect the decreased commercial workload. This will affect around 20 people. Negotiations with the appropriate unions have been initiated.
TransAtlantic, August 23, 2013