NEWPORT, R.I., July 26, 2016 /PRNewswire/ -- Pangaea Logistics
Solutions, Ltd. ("Pangaea" or the "Company") (NASDAQ: PANL), a
global provider of comprehensive maritime logistics solutions,
today announced several recent developments in their business
activities including the addition of new vessels to its fleet and
new and expanded contracts of affreighment ("COAs").
First, the Company has bolstered its fleet with the addition of
two supramax vessels that it will manage technically and
commercially under a profit sharing arrangement with the owner, a
U.S. based investment fund. The vessels are the m/v Bulk
Power (ex m/v Fantastic) and the m/v Bulk
Progress (ex m/v Amazing), both of which were built from
2010-2011 in China. The vessels have been delivered and their
initial employment has been arranged. The Company expects this
arrangement to be accretive to earnings.
Commenting on the fleet expansion Ed
Coll, Chief Executive Officer of Pangaea Logistics
Solutions, noted "This arrangement allows Pangaea to grow its fleet
with modern, versatile vessels, thus expanding our business, on a
relatively low risk basis. Additionally, this continues our track
record of serving as a go-to partner in the maritime logistics
space for leading global financial institutions, which we view as a
key growth area for our business."
Additionally, Pangaea has amended a COA in the Gulf of Mexico that is scheduled to commence
in September. The contract, which is with a major European steel
company, has been increased from 400,000 metric tons per annum to
700,000 metric tons per annum for the coming year, with the
potential for the increase to continue for the remainder of
the five-year term of the COA. This COA will contribute
approximately $20 million in gross
revenue over the five-year period, and has the potential to produce
approximately $29 million in revenue
if amended for the full term.
The Company also announced a new logistics based COA wherein it
will provide for the transportation of approximately 3.5 million
tons of construction material to a major port on the United States' east coast. This contract
will commence in September and is expected to generate
approximately $29 million in gross
revenue over 14 months. The COA will be profitably serviced by four
ultramax vessels.
"We are extremely pleased to announce these two new pieces of
business that leverage our unmatched expertise in providing
solutions to unique logistics challenges," said Mr. Coll.
"They will not only contribute directly to our continued growth but
they will also serve as strong platforms for further expansion into
strategic geographic areas and new types of business for the
Company."
Finally, the Company announced the first arrival of the year
under its COA servicing the Baffinland iron mine above the Arctic
Circle in northern Canada, where
the Company has nine ice-class vessels scheduled to arrive this
year. "Our unmatched ice-class capabilities continue to
differentiate Pangaea from our competitors and we are thrilled to
be able to service the unique needs of this contract," Mr. Coll
concluded.
About Pangaea Logistics Solutions, Ltd.
Pangaea Logistics Solutions Ltd. provides logistics services to
a broad base of industrial customers who require the transportation
of a wide variety of dry bulk cargoes, including grains, pig iron,
hot briquetted iron, bauxite, alumina, cement clinker, dolomite,
and limestone. The Company addresses the transportation needs of
its customers with a comprehensive set of services and activities,
including cargo loading, cargo discharge, vessel chartering, and
voyage planning. Learn more at www.pangaeals.com.
CONTACT:
INVESTOR RELATIONS:
Prosek Partners
Thomas
Rozycki
Managing Director
(212) 279-3115 x208
trozycki@prosek.com
Josh Clarkson
Account Supervisor
(212) 279-3115 x259
jclarkson@prosek.com
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SOURCE Pangaea Logistics Solutions, Ltd.