NORDEN enters into long-term contract on transportation of road salt from Chile
27 Sep 2017
NORDEN has entered into a 10-year contract on transportation of road salt from Chile. The contract will be in force during the years 2020-2029 and covers the transportation of a total of 4-5 million tonnes of road salt to be loaded in Caleta Patillos 1,400 kilometres north of the Chilean capital Santiago and discharged primarily on the American East Coast in ports between Boston and Baltimore.
Road salt – or rock salt, which is its formal name – will be carried on Supramax vessels. The contract covers 8-10 voyages per year of 50,000 tonnes each. A voyage is expected to take approximately 30 days and the vessels will pass through the Panama Canal to get from the South American West Coast to US East Coast.
NORDEN’s counterpart is the Chilean company Empremar, which is the subsidiary of the world’s leading salt producer, K+S, which is a listed German company. K+S owns and operates salt mines in North and South America – including Chile – and in Europe, and the company has distribution centres in most parts of North America and sells salt in all parts of North and South America. K+S is today the largest supplier of road salt in North America.
Since 2000, NORDEN has transported more than 15 million tonnes of salt for Empremar from Chile to the USA. The new contract guarantees the long-term partnership with Empremar, when the current 10-year contract with Empremar expires in 2022.
“We are proud to extend our partnership with Empremar for another 10 years. This is not just fulfilling the ambition of strengthening our ties with highly respected partners, but also a contract with voyages that optimises NORDEN’s existing business. The new contract enables NORDEN to position vessels at the eastern coast of North America where they can be deployed to fulfil other long-term contracts carrying wood pellets to Europe.”, says Michael Boetius, Head of Period Tonnage & Industrial Bulk at NORDEN.
Commenting on the contract Thomas V. Labash, Senior Manager Logistics – North America, Empremar, says: “We are happy to have fixed another long-term COA with NORDEN, who is a very financially sound, socially and environmentally responsible company. Over the last 2 decades NORDEN has demonstrated an attitude of partnership and cooperation adjusting to our changing needs. NORDEN has a modern well-maintained fleet of ships, and they are updating their vessels on a continuing basis. NORDEN has an office in Annapolis, USA and with their support staff close at hand they can react to any operational or commercial issues in real time.”