Horizon Lines to save $12 million through reduced charter payments

By Caroline Salls

Pittsburgh, May 2 - Horizon Lines, Inc. has finalized an agreement with CSX Corp. to reduce charter payments on three vessels leased from CSX, according to a company news release.

Under the agreement, charter hire expense has been reduced by $3 million annually, retroactive to January 2011, through the January 2015 expiration of the charter.

Horizon Lines said the agreement represents a total savings of $12 million over the remaining life of the charter.

"We greatly appreciate the willingness of CSX to provide meaningful financial assistance as we work to refinance our debt and position Horizon Lines for long-term success," executive vice president and chief financial officer Michael T. Avara said in the release.

"As our former parent company, CSX remains a valued and very important business partner."

The three chartered vessels, the Horizon Anchorage, Horizon Tacoma and Horizon Kodiak, serve in the Alaska tradelane and were built in 1987, the release said.

Horizon Lines is a Charlotte, N.C.-based domestic ocean shipping and integrated logistics company.

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