LOS ANGELES, Feb. 23, 2011 /PRNewswire/ -- Trai Thien USA, Inc (OTC Bulletin Board: TRTH) announced that it is pursuing a strategy of acquiring and operating larger dry bulk shipping vessels in order to capture growing demand in the less competitive 4,000 – 8,000 DWT ("dead weight tonnage") cargo payload space within Southeast Asia, where operating margins are expected to remain strong. This strategy was initiated with the acquisition and launching of two 4,300 DWT vessels which increased the total capacity of the Company's fleet by 64% from 13,398 DWT to 21,998 DWT for the comparative third quarters 2009-10. Company management strongly believes that market demographics and trends, as well as its internal attributes, make the larger payload capacity segments the most potentially profitable for Trai Thien. The most recent quarterly financial filing, in part, showed an immediate positive impact from this strategy with third quarter revenues increasing 82% as compared to the previous year.
The acquisition of the new larger vessels will allow Trai Thien to increase maximum cargo capacity, average per ship capacity, as well as the number of nautical trips made during each quarter. For example, with the increase in the Company's fleet deadweight tonnage, Trai Thien was able to increase the number of nautical trips by 180%, from ten trips during the three months ended September 30, 2009 to 28 trips during the three months ended September 30, 2010. In line with the Company's strategy, Trai Thien has already committed more than $17 million in the form of pre-payments towards the purchase of six even larger 7,600 DWT vessels which, dependent on the Company's ability to successfully realize its need to arrange timely financing for the outstanding purchase balance due obligations, are planned for delivery in 2011 and 2012.
Khanh Nguyen, the Company's Chairman, stated, "The larger DWT vessels we recently acquired are expected to make larger contributions to Trai Thien's top-line revenues now that they are able to operate at their designed capacities. Strategically, we believe that these larger vessels will differentiate us from the competition in stepping-up to meet the growing demand for larger payload capacity on the part of small- and mid-sized suppliers and producers within our niche ASEAN region."
Trai Thien USA CEO, Haley Manchester, added, "Markets are constantly changing and strong companies interpret these dynamics and adjust their resources in such a way that they are better positioned to take advantage of opportunities than competitors. Anticipating that increased investment in the production capacity of small- and mid-sized companies within our operating region will drive the demand for correspondingly larger payload capacity, as a U.S. company, we are planning to capitalize on this opportunity by using our unique access to global capital markets in order to develop the necessary resources to invest in the reconfiguration of Trai Thien's fleet over the next two years with an emphasis on the larger DWT vessels. Competition within our niche market is characterized primarily by smaller, locally-held private operators with limited access to the financial resources required for substantial development in a capital intensive industry such as shipping."
Trai Thien USA is a dry bulk shipping company with offices in California and Vietnam. The Company specializes in providing ocean transportation services for raw material input items such as coal, ore, grain, lumber, cement, steel and fertilizer within the Southeast Asia region.
Safe Harbor Statement: Under The Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectation.
CONTACT: Jacob Nguyen of ProPublic Media, +1-310-740-3236, for Trai Thien USA
SOURCE Trai Thien USA, Inc