TBS International plc (NASDAQ: TBSI) announced its joint venture, Log.Star Navegacao S.A., obtained an operational license in Brazil to provide domestic shipping services. Lof.Star is a Brazilian flag shipping company that will concentrate on the movement of breakbulk, bulk parcels, heavy lift, general and project cargoes along Brazil's coastline and Amazon River basin. TBS owns 70% of the joint venture with the remaining 30% owned by Log-In Logistica Intermodal S/A (BOVESPA: LOGN3), a publicly-traded Brazilian logistics company with major shareholders including Vale and Petros (pension fund of Petrobras). TBS expects to use its international breakbulk shipping expertise to meet the growing demand of a Brazilian coastal and Amazon River domestic transportation service.
Joseph E. Royce, Chairman, Chief Executive Officer and President, commented, "We are very pleased to capitalize on our 15 year presence in Brazil and enter into a new market segment, building on our domestic market knowledge, our international breakbulk shipping expertise and our long standing customer relationships. Brazil's coastal trade accommodates an increasing volume of cargo, and the Brazilian economy has strong long-term fundamentals. We are pleased to have partnered with such well known and respected industry participants. We believe this new joint venture will position us to further increase our presence in Brazil, strengthen our operational base and provide additional future growth."