Universal Bioenergy In Negotiations With Firms To Transport Coal To Asia And European Markets
IRVINE, Calif., April 3, 2013 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc., (OTCMarkets:UBRG), a publicly traded independent diversified energy company, that markets natural gas, petroleum and coal, announced its management team for its international coal division are in negotiations with several companies to arrange the logistics and transportation for the sales of coal to its customers in Asia and Europe.
The Company and its transportation consultants are negotiating terms and pricing with several railroad companies to ship the coal from the load-out facilities at the mines and transport it to the various seaport terminals. It takes about 104 railroad coal cars to ship 50,000 tons of coal. With an estimated 200,000 to 300,000 tons of coal sales per month, the Company will need 416 to 624 coal cars per month to ship the coal. The Company is also negotiating to secure terminal space at several seaports throughout the country. The coal will be shipped by rail to the ports and loaded onto the shipping vessels, then shipped to the final destination overseas.
Universal's President Vince M. Guest states, "Our marketing team and consultants are moving expeditiously to finalize the logistics and transportation to ship our coal to the foreign markets. 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 $18 to $27 million in additional monthly revenues and an estimated $2 to $3 million per month in gross profit."
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