The Tribune

Tropical Shipping, one of the major carriers serving Nassau and the Bahamas, is being sold for $220 million to a Seattle-based transportation provider.

“We are very pleased to have identified Saltchuk as a well-qualified strategic owner of Tropical Shipping. We are confident that becoming a member of the Saltchuk family, with their deep roots in the transportation, logistics and maritime industries, will guarantee a continued bright future for Tropical Shipping and its employees and valued customers,” said Andrew W. Evans, executive vice-president and chief financial officer for AGL Resources, the vendor.

“We have consistently noted that AGL Resources’ strategic focus is on owning and operating regulated natural gas utilities and related assets. While we have been responsible stewards of Tropical Shipping for the duration of our ownership, and have worked diligently to successfully increase profitability over the last two years, we have deliberately sought a more strategic owner for these assets.”

The deal has obvious synergies for Saltchuk, which already serves shipping routes to Puerto Rico via its Sea Star Line.

It has provided this service for 15 years, and Tropical Shipping gives it routes to the rest of the Bahamas and the Caribbean.

Tropical Shipping is a transporter of dry and refrigerated containerised cargo, and provides scheduled logistics services to and from the US and Canada, to 25 ports in the Bahamas and Caribbean, including scheduled inter-island services between Caribbean ports.

It, along with Mediterranean Shipping Company (MSC), is one of the main carriers serving the Arawak Cay port. Tropical’s sale is expected to conclude in 90 days.

Saltchuk is one of the US’s leading freight transportation and distribution companies. Founded in 1982, Saltchuk is based in Seattle and is a second-generation family business.

Tropical will be Saltchuk’s fifth transportation business unit of international shipping, joining its domestic shipping, tug and barge, air cargo and trucking businesses.