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CSAV Norasia on the chopping block

Article-CSAV Norasia on the chopping block

CSAV Norasia on the chopping block

Sao Paulo: Speculation is mounting that Chilean carrier CSAV may sell off its CSAV Norasia shipping line and other assets to help reduce costs and debts. Seatrade sources in both Valparaiso, the HQ for CSAV, and in Sao Paulo, Brazil, have confirmed that assets are up for sale "at the right price", even though a US$750m rescue and refinancing package has recently been put in place.
Hong Kong based Norasia is currently in the process of withdrawing from the Asia-North Europe trade after suspending its only service (the ANE service) in the market, due to over capacity and falling demand.
Also possibly up for sale is the Chilean carrier's Brazilian flag operation Companhia Libra de Navegacao (CLN), which downsized for the third time in a year at the beginning of April. It sacked half of its 30 commercial staff and moved the other half to Valparaiso.
An Asia shipping trade lane expert told SAO: "Norasia has been losing huge amounts of money on the very competitive Asia trade lanes to both the US and Europe and this is not sustainable. I would not be that surprised if they were up for sale but who would buy them and what would they get for their money?"
As well as CLN and CSAV Norasia - whose website has not had an update since last year - CSAV also has shares in fellow Chilean flag carrier CCNI, and its own profitable port operations company SAAM.
But the same source in Valparaiso said, "CSAV are very unlikely to sell such a profit source as SAAM, far more likely that they sell off CLN or Norasia." [30/04/09]

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