Pangaea Makes Strategic Acquisition of Port and Terminal Operations
Dry bulk cargo operator Pangaea Logistics Solutions is moving forward with its strategy to expand its complimentary logistics operations. The company reported on May 1 that it has entered into an agreement with Host Terminals, a subsidiary of T. Parker Host, to acquire port and terminal operations at three U.S. ports that are part of its strategic plan to leverage existing business relationships for the growth of the company. Pangaea looks to increase its stevedoring and terminal operations to become a comprehensive maritime logistics solutions provider.
Pangaea entered into a definitive agreement to acquire marine port terminal operations in Port Everglades/Ft. Lauderdale and Port of Palm Beach, Florida, and Port of Baltimore, Maryland from Host. Under the terms of the agreement, Pangaea will acquire all onshore assets, licenses, and business operations related to the acquired Host terminal operations for a total purchase price under $10 million.
"This strategic investment demonstrates our continued focus on developing a vertically integrated shipping and logistics business of scale, one that provides end-to-end supply chain solutions for our customers," stated Mark Filanowski, Chief Executive Officer of Pangaea Logistics Solutions. "Our cargo-centric strategy leverages our established competency within dry bulk shipping, together with the logistics requirements of our customers, allowing us to extend the service relationship beyond the ocean-going vessel. This acquisition will serve to increase our onshore service capabilities in two strategically located ports where we previously had no logistics operations."
Host reports it has been operating in South Florida for a decade with a footprint in Port Everglades since 2012. They had grown to become the largest stevedore of dry bulk, breakbulk, and project cargo in South Florida. The sale hits with the company strategy which has seen it recently driving growth in Louisiana.
Pangaea provides seaborne dry bulk logistics and transportation services for a broad range of cargoes, including grains, coal, iron ore, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. During 2022, the Company operated 26 vessels that were wholly-owned or partially-owned through joint ventures with a strategy that calls for a fleet total of 45 to 60 vessels that are owned or chartered-in on a short-term basis. The fleet transports approximately 23 million tons of cargo annually, averaging approximately 49 vessels in service daily in 2022 and 55 during 2021.
The business strategy includes a focus on contracted freight services including expanding capacity and flexibility by renewing its owned fleet and investing in ice class niche. They have also been highlighting opportunities to investors for customized and complete logistics solutions within targeted dry bulk trades.
Pangaea currently operates terminals and performs stevedoring services in four ports in North America, with operations in Massachusetts and Delaware. With the acquisition of the four operations from Host, Pangaea expands its North American terminal network to include the mid-Atlantic and southeastern United States. The acquisition provides Pangaea with additional dry bulk distribution capabilities within growing commerce centers while augmenting its integrated ocean freight and shoreside solutions offering.
The acquisition is subject to regulatory review and customary closing conditions. The company expects to close the acquisition during the second quarter of 2023.