Stolt-Nielsen Transportation Group and Transportación Maritima Mexicana Form Joint Venture
Stolt-Nielsen Transportation Group Ltd. (SNTG), a wholly-owned subsidiary of Stolt-Nielsen S.A. (Nasdaq: STLTF, STLBY; Oslo Stock Exchange: SNIB) and Transportación Maritima Mexicana, S.A. de C.V. (NYSE: TMM and TMM/A), a multi-modal transportation and logistics company, today announced an agreement to form a joint venture to develop parcel tanker services in the Gulf of Mexico and the Caribbean Sea.The parties have also agreed to enter into a Network Alliance agreement to develop their joint capabilities in logistics services.
The joint agreement includes the long-term bareboat charter of five SNTG vessels to the joint venture and the time charter of two vessels operated by Transportación Maritima Mexicana, totaling 77,000 deadweight tons. The joint venture, with its headquarters in Houston and a branch office in Mexico City, will be staffed by existing SNTG and TMM staff. The joint venture is expected to commence operations in the fourth quarter, after obtaining the necessary corporate and governmental approvals.
Samuel Cooperman, Chief Executive Officer of SNTG, said, This venture represents a significant development of our services in the region. The synergies realized through the combination of our businesses will provide benefits to customers by increasing flexibility, improving scheduling, and providing access to both companies extensive distribution networks.
Javier Segovia, President of TMM said, Establishing this joint venture to provide logistic service solutions in the important trades of the Gulf of Mexico and Caribbean basin will offer an efficient regional delivery network that ties in very well into our other intermodal operations and will result in improved service to our customer base.
Headquartered in Mexico City, TMM is Latin Americas largest multimodal transportation company. Through its branch offices and network of subsidiary companies, TMM provides a dynamic combination of ocean and land transportation services within Mexico. TMM also has a controlling interest in Transportación Ferroviaria Mexicana (TFM), which operates Mexicos northeast railway and carries over 40% of the countrys rail cargo.
Stolt-Nielsen Transportation Group Ltd., a subsidiary of Stolt-Nielsen S.A., together with its alliance partners, provides the worlds leading network of transportation and storage services for bulk liquid chemicals, acid, edible oils, and other specialty liquids. Through its logistics management systems, parcel tanker, tank container, terminal, rail, and barge services the company provides cost-effective solutions to meet the needs of its customers for single mode, multimodal, and full supply chain management services.
This news release contains forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Actual future results and trends could differ materially from those set forth in such statements due to various factors. Additional information concerning these factors is contained from time to time in the Company's U.S. SEC filings, including but not limited to the Company's report on Form 20-F for the year ended November 30, 1998. Copies of these filings may be obtained by contacting the Company or the U.S. SEC.
London, England and Mexico City - November 9, 1999
Contact:
William W.Galvin
USA (203) 618-800
Samira Ashraf
UK (171) 611-8963
www.stoltnielsen.com
