M-Real to Begin Shipping Into Philadelphia
NORWALK, Conn.—M-real U.S. Corp. signed a long-term contract with Penn Warehousing and Distribution, Inc. that will enable M-real to focus its North American distribution of paper and paperboard in the Port of Philadelphia for years to come.
Since February 2006, M-real’s North American operations have been based out of the Port of Baltimore, where it consolidated its shipping operations pursuant to a six-year agreement entered into with the Maryland Port Administration and BalTerm LLP. During its time in Baltimore, M-real experienced a productive working relationship with its partners and saw a doubling of local imports annually. But with the sale of its Graphic Papers division to Sappi Ltd. in December of 2008, M-real’s warehouse and logistics needs changed substantially, leading to a total re-evaluation of its North American logistics operations. Mindful of the need to continue to focus on cost savings in the current economic climate, and after much consideration of various possible locations, M-real determined that returning to its former port of entry in Philadelphia was the ideal solution, when taking into account geography, history of maritime operations, and the resources and accomodations provided by both Penn Warehousing and the Philadelphia Regional Port Authority. A new warehouse, recently completed by the Philadelphia Regional Port Authority, will be designated for shipping, receiving, and stocking M-real’s paper and paperboard.
“In considering our options going forward, and based upon our past experience with the first class operations and service of Penn Warehousing and the Port of Philadelphia, we are confident that this will be a win–win situation for all the parties involved,” says Jorma Sahlstedt, president of M-real U.S. Corp. “With our transition over to the Port of Philadelphia, M-real will reap the benefits of significant operational cost savings while obtaining a state-of-the-art warehouse facility, which will allow us continue our strategy of growth and remaining competitive.”