CHARLOTTE, N.C., March 6, 2013 /PRNewswire/ -- Horizon Lines, Inc. (OTCQB: HRZL), one of the nation's leading domestic ocean shipping companies, today announced it will move its northeast terminal operations to Philadelphia, Pennsylvania, from Elizabeth, New Jersey, effective April 11, 2013.
After an extensive review of options and a detailed evaluation of other ports connecting the northeast to Puerto Rico, Horizon Lines chose the Port of Philadelphia to better serve its customers and improve cost efficiencies.
"The Port of Philadelphia's strategic location and terminal facilities are expected to produce a number of significant advantages for Horizon Lines customers in the Puerto Rico trade lane," said Richard Rodriguez, Vice President and General Manager, Puerto Rico. "These include fastest transit times, quickest turn times, a comprehensive intermodal network, expedited inspections, and improved warehousing and transloading capabilities. We also project that the move will yield long-term cost efficiencies for our Puerto Rico operation."
The first northbound sailing is expected to depart San Juan on April 7, 2013, arriving in Philadelphia on April 11, 2013. The first southbound sailing is expected to depart Philadelphia on April 11, 2013, arriving in San Juan on April 15, 2013.
Service schedules between Jacksonville, Florida, Houston, Texas and San Juan remain unchanged.
In association with the terminal relocation, the company expects to record a restructuring charge of approximately $6.0 million during the first half of 2013, primarily resulting from the estimated liability for withdrawal from the Port of Elizabeth's multiemployer pension plan, as well as other costs to move to Philadelphia.
Horizon Lines will continue to operate the largest vessels in the trade, serving Puerto Rico from the three most geographically diverse U.S. ports with the most extensive intermodal network across North America.
About Horizon Lines
Horizon Lines, Inc. is one of the nation's leading domestic ocean shipping companies and the only ocean cargo carrier serving all three noncontiguous domestic markets of Alaska, Hawaii and Puerto Rico from the continental United States. The company maintains a fleet of 14 fully Jones Act qualified vessels and operates five port terminals in Alaska, Hawaii and Puerto Rico. A trusted partner for many of the nation's leading retailers, manufacturers and U.S. government agencies, Horizon Lines provides reliable transportation services that leverage its unique combination of ocean transportation and inland distribution capabilities to deliver goods that are vital to the prosperity of the markets it serves. The company is based in Charlotte, NC, and its stock trades on the over-the-counter market under the symbol HRZL.
Forward Looking Statements
The information contained in this press release should be read in conjunction with our filings made with the Securities and Exchange Commission. This press release contains "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are those that do not relate solely to historical fact. They include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. Words such as, but not limited to, "will," "intend," "expect," "would," "could," "should," "may," and similar expressions or phrases identify forward-looking statements.
Factors that may cause expected results or anticipated events or circumstances discussed in this press release to not occur or to differ from expected results include: the reaction of our customers and business partners to our announcements and filings; work stoppages, strikes and other adverse union actions; volatility in fuel prices; changes in shipping volumes; our ability to maintain adequate liquidity to operate our business; our ability to make interest payments on our outstanding indebtedness; including those referred to herein; government investigations and legal proceedings; suspension or debarment by the federal government; failure to comply with safety and environmental protection and other governmental requirements; failure to comply with the terms of our probation; increased inspection procedures and tighter import and export controls; repeal or substantial amendment of the coastwise laws of the United States, also known as the Jones Act; catastrophic losses and other liabilities; the successful start-up of any Jones-Act competitor; failure to comply with the various ownership, citizenship, crewing, and U.S. build requirements dictated by the Jones Act; the arrest of our vessels by maritime claimants; severe weather and natural disasters; and the aging of our vessels and unexpected substantial dry-docking or repair costs for our vessels.
All forward-looking statements involve risk and uncertainties. In light of these risks and uncertainties, expected results or other anticipated events or circumstances discussed in this press release might not occur. The forward-looking statements included in the press release are made only as of the date they are made and the company undertakes no obligation to update any such statements, except as otherwise required by applicable law. See our disclosures entitled "Risk Factors" in our most recent periodic filing with the SEC for a more complete discussion of these risks and uncertainties and for other risks and uncertainties. Those factors and the other risk factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results. Consequently, there can be no assurance that actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences.
SOURCE Horizon Lines, Inc.