November 1, 2006
Trailer Bridge wins military contract
Trailer Bridge, Inc. (NASDAQ: TRBR) reports that the Department of the Army's Military Traffic Management Command has named it the low cost carrier for a significant number of cargo origin points in the just completed MTMC cargo bid for freight moving between the U.S. mainland and Puerto Rico.
Trailer Bridge will begin moving MTMC freight on December 1, 2006 under a one-year contract, with two further one-year options exercisable by MTMC. Based upon historical volumes, Trailer Bridge expects incremental additional revenue of approximately $3 million annually.
Trailer Bridge, which uses a tug/barge system and which says it previously handled "negligible amounts" of this freight, says it is expected to replace a self-propelled operator as the primary military carrier between the mainland and Puerto Rico.
"We're pleased with this news and believe it underscores the value our freight system offers to an array of shippers. The consistent volume we will see from this new large shipper fits well with our system and plans," said Ralph W. Heim, President and Chief Operating Officer.