VANCOUVER, B.C. – Specialty Liquid Transportation Corp. (the “Company”) is pleased to announce that it is evolving its business model and direction. Management is excited to report that the Company over the past six months has developed a vertical integration strategy for the direct acquisition, packaging and shipping of commodities to be purchased directly by the Company. The Company decision to change its business strategy permits targeting of higher gross and net profit opportunities available through direct purchase of specific raw commodities and use of the Company’s proprietary patented Flexitank for shipping. Use of the Flexitank for shipping results in cost savings of approximately $2,000-3,000 per container shipped over traditional shipping modalities at current shipping rates. The Company is actively taking steps to implement the change in business strategy including steps towards sourcing products suitable for direct purchase and Flexitank shipping, and arrangements for the sale and logistics of those owned products.
The initial market in which the Company will focus is bitumen from the Oil Sands of Alberta. The Company has previously shipped over 600 Bitumen filled Flexitanks using conventional shipping containers, successfully demonstrating the ability to ship Bitumen from Alberta to China. The Company has established agreements for the supply of Bitumen from several producers, for shipment to potential buyers in China, India and other areas within Southeast Asia. The Company has forwarded test samples of Bitumen to potential purchasers in China and India for testing. Subject to the completion of testing, purchase orders from these purchasers are expected to be involve significant quantities of bitumen. Testing is expected to be completed in the near future.
The direct purchase and Flexitank shipping business model requires additional capital. The Company is currently engaged with several parties whom have expressed strong interest in financing the new business opportunity.
“We are excited to advance our efforts to launch the vertical integration platform for the Company,” stated David Skriloff. “Based on current shipping rates and bitumen pricing, this new model would allow us to generate an estimated $10,000 in gross revenue per container of bitumen with $1,000-2,000 in operating profits, while still limiting any exposure that we might have to commodity price fluctuations.”
The Company further plans to expand this model into orange juice, both concentrate and not-from-concentrate markets, once the bitumen business is fully launched. The company is also evaluating other commodities to add to its growth strategy.
About Specialty Liquid Transportation Corp.
The Company manufactures high quality and safe bulk packing solutions for transport of non-hazardous liquid in the flexitank logistics industry. Its patented Big Red Flexitank and patent pending Liquiride™ customers to significantly reduce shipping costs, increase efficiency and minimize environmental impact.
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