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Boskalis and SAAM begin joint towage operations in the Americas

Boskalis and SAAM begin joint towage operations in the Americas
Royal Boskalis Westminster (Boskalis) and Chile’s logistics company SAAM have announced that they have successfully created a joint harbour towage operation in Brazil, Mexico, Canada and Panama.

The intended partnership, which is between SMIT, a wholly owned subsidiary of Boskalis, and SAAM, was previously announced in September 2013 and all conditions to form the joint venture have now been fulfilled. SAAM, a former logistics subsidiary of CSAV, went public and separated from the Chilean shipping line in 2012.

The combined companies will operate under the name SAAM SMIT Towage (SST). The partnership consists of two underlying joint ventures, with a fleet of 100 tugboats, operating in more than 30 terminals in Brazil, Mexico, Canada and Panama. The total combined 2013 EBITDA of SST was $100,.The merger will generate synergies estimated at approximately $10m per year, to be fully captured in the next 24 months. Those synergies will mainly come from an increased fleet efficiency and cost savings, among others. As the operations are further integrated, sharing of best practices and market synergies are expected to generate additional value.

The geographic scope of the first joint venture covers the Brazilian towage market, where SMIT and SAAM already had operations. Boskalis and SAAM each hold a 50% share in this new joint venture. With a total of 42 tugboats, the combination is an important player in the growing market of Brazil, operating in major ports such as Rio Grande, Itajai, Santos and Salvador.

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