Universal Bioenergy preparing for international export

CALIFORNIA-based resource producer Universal Bioenergy is in talks with several companies to arrange the logistics of shipping coal to its customers in Asia and Europe.
Universal Bioenergy preparing for international export Universal Bioenergy preparing for international export Universal Bioenergy preparing for international export Universal Bioenergy preparing for international export Universal Bioenergy preparing for international export

The Universal Bioenergy headquarters.

Staff Reporter

The company said its transport consultants were negotiating terms and pricing with several rail companies and shipping ports throughout the country to secure contracts for the transportation of its coal to overseas customers.

Universal has estimated that with 200,000 to 300,000 tons of coal sales per month, the company would need 416 to 624 coal cars per month.

Universal’s president, Vince M. Guest, said it was important that Universal found the right transporters.

“Our marketing team and consultants are moving expeditiously to finalize the logistics and transportation to ship our coal to the foreign markets,” Guest said.

“Two major factors influence the sales price of coal. One is the price of coal at the mine, which includes the mines operating costs and quality of the coal. The other major factor is the cost of transporting the coal from the mine to the final point of use.”

“So it's very important for us to secure the required railroad shipping and port terminal space to meet the needs of these customers. At an estimated $90.00 per ton, this could generate an estimated $US18 to $27 million in additional monthly revenues and an estimated $2 to $3 million per month in gross profit."

The company, which signed a $US64.8 million export deal for China and West Africa last October – just months after it spread its wings into the electric power segment – said the move would generate millions of dollars in additional revenue as well as produce higher margins and potential profits.

“The new [export] division will take advantage of the growing demand for coal in countries whose economies and infrastructure are experiencing high growth, have a greater demand for energy, electric power and coal to produce electricity and to manufacture steel,” a Universal official said earlier in the year.

The company has previously stated that it would be would targeting countries such as China, India, South Korea, Mexico and some European countries, including Germany, England, Ireland and Poland.

It has not specified where the companies it is currently negotiating with are located.

In addition to coal, the publicly held independent produces and markets natural gas, petroleum and propane.

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