Americas News
TransMontaigne-Morgan Stanley Florida Bunker Agreement to Expire
U.S. terminaling and transportation company TransMontaigne Partners L.P. [NYSE:TLP] (TransMontaigne) says it has extended its terminaling services agreements (TSAs) with Morgan Stanley Capital Group Inc. (Morgan Stanley), but the extension does not extend to its marine fuels storage.
The agreements with Morgan Stanley, which had been set to expire in 2014, cover TransMontaigne's Southeast and Florida-Midwest terminals.
TransMontaigne's Florida tanks dedicated to bunker fuels and its terminals in Mt. Vernon, Missouri and Rogers, Arkansas, known as the Razorback system, are not being renewed and will expire on May 31, 2014.
CEO Charles L. Dunlap said in an earnings call in May that Morgan Stanley had indicated that they would allow agreements concerning those assets to expire.
"So for both Florida bunkers and the Razorback system, we are currently pursuing negotiations with third-parties in efforts to make sure that we have this capacity committed well before the 2014 expiration date," he said.
The company has provided bunkering services in Florida for 85 years, according to its website.
The company also said it has extended its omnibus agreement with TransMontaigne Inc., under which a subsidiary of Transmontaigne Inc. handles all management and operational activities for TransMontaigne, which has no officers or employees of its own.
In December, TransMontaigne acquired a 42.5 percent ownership interest in the Battleground Oil Specialty Terminal Company LLC (BOSTCO) terminal project on the Houston Ship Channel.
