HAMBURG SUD TO ACQUIRE CROWLEY’S SOUTH AMERICAN SERVICES

HAMBURG SUD TO ACQUIRE CROWLEY’S SOUTH AMERICAN SERVICES

   Hamburg Sud has reached agreement with Crowley Maritime Corp. to
purchase subsidiary Crowley American Transport’s South America liner
services.
   The deal covers Crowley’s services between the U.S. South Atlantic and Gulf
and the East and West coasts of South America and Venezuela. Crowley’s services between
the United States and Puerto Rico, the Caribbean and Central America are not included in
the acquisition.
   The lines expect to close the deal by Oct. 1.
   "Crowley American Transport is widely recognized as the premier carrier
in the trade, and we plan to continue to operate the services in the same successful
fashion under the well-reputed brand name of Crowley American Transport, said Joachim
Konrad, a Hamburg Sud executive board member.
   Hamburg-Sud will assume control of Crowley American Transport’s offices and
personnel in South America and those U.S. facilities and personnel that apply to Crowley’s
South America services.
   "The sale of our South America liner services to Hamburg Sud will
further strengthen CMC and allow for future investment, service innovation and
concentration of assets in our core service areas," said Tom Crowley Jr., chairman,
president and chief executive officer of Crowley Marine Transport.
   Crowley has been the service leader in U.S./South America, controlling
about 18 percent of northbound and southbound containerized volume last year. However,
rates in the trade have fallen about 30 percent in the past year.
   Hamburg Sud also owns Columbus Line and acquired Alianca Maritima Ltd. last
year — which, in turn, acquired Transroll Navagaceo S.A. and its
Europe/East Coast of South America service this past spring. These lines
provide services between the U.S. and the East and West coasts of South
America.