InvestorsHub Logo
Followers 137
Posts 41656
Boards Moderated 7
Alias Born 01/05/2004

Re: None

Monday, 09/19/2005 9:35:31 AM

Monday, September 19, 2005 9:35:31 AM

Post# of 17
TransGlobal Logistics, Inc. Announces Expansion of Freight Forwarding and Brokerage Operations in US
Monday September 19, 9:00 am ET
Company to Immediately Open Offices in Fort Lauderdale and Los Angeles

NAPLES, Fla.--(BUSINESS WIRE)--Sept. 19, 2005-- TransGlobal Logistics, Inc. (OTC:TLGI - News; http://www.transglobl.com), today announced that it is expanding its freight forwarding, freight brokerage and logistics operations throughout the United States, with the immediate opening of logistics and cargo brokerage offices at Fort Lauderdale International Airport in Fort Lauderdale, Florida and at Los Angeles International Airport in Los Angeles. The company will expand its operations to Houston, Chicago, and several other major U.S. cites after the first of the year. The company is presently hiring experienced top-level executives to open these offices and commence sales operations in order to prepare for the launch of the first cargo flights by the Company in November 2005.

The Company is also expanding its cargo logistics, freight forwarding and brokerage operations in Panama through the funding of expansion capital into the present operations of P&L Logistica, a 14-year-old cargo logistics operation in Panama, which the Company recently acquired. The expansion plans for P&L Logistica include the addition of sales and marketing personnel, and the integration of more focused maritime cargo logistics operations with the triangulation of services in The Bahamas and South Florida. Based upon those expansion plans, the Company projects that it will increase the gross annual revenues of P&L Logistica from its present rate of $600,000 per annum to about $1.5 Million per annum, with profits increasing from $80,000 per annum currently to approximately $200,000. The Company is also in serious negotiations to acquire a larger freight forwarding company in Panama that specializes in maritime, land and airline cargo. The addition of the existing revenue level of this prospective acquisition could result in this cargo network producing $4.0 to 5.0 Million in revenues per annum for TGL, with annual profits of approximately $1 Million.

Mr. Gus Cervera, President and CEO of Trans Global in describing the Company's expansion strategy stated: "We had hoped to acquire a similar company in the United States, to merge with P&L Logistica, with the Panama offices handling south to north traffic and the United States entity handling north to south traffic. However, after reviewing several candidates, we have decided that the valuations being placed on the companies that are available for acquisition exceed the price that generates the return on equity that the Company should achieve. We decided that these proposed U.S. based acquisitions were too dilutive to our shareholders to pursue at this time. Therefore, we have elected to establish our own U.S. based offices and are signing leases this week for the opening of our Fort Lauderdale International Airport and Los Angeles International Airport freight forwarding operations. The Company has identified two teams of experienced professionals with detailed knowledge of their respective local markets to head these operations. These teams have over 70 combined years in the freight forwarding and brokerage industry, and we expect them to have an immediate impact on the freight bookings of these new offices. In October and November, we will be placing more than sufficient cargo with third party carriers from our freight forwarding operations in Panama and the United States to assure full utilization of the available space on our first cargo route when TGL's Air Cargo affiliate PIA Express begins flight operations in November. Cargo demand in the region currently exceeds the uplift capacity, and as a result of the passing of the CAFTA treaty, demand will continue to expand. Our two new offices will enable The Company to support this demand for uplift capacity when we begin flight operations. This expansion is part of our vertical and horizontal growth strategy to be able to handle the logistics of our cargo customers, while simultaneously acting as the air carrier for a substantial number of their cargo shipments."

The management of the Company will be discussing its current operations and its immediate expansion plans in a conference call with the brokerage and investment community, which will be held this Wednesday, September 21, 2005 at 4:15 PM.

Interested parties may hear the conference call by telephone.

To hear the conference call as it takes place:

Call 1-800-434-1335 in the United States or Canada or;
Call 1-404-920-6620 in the Atlanta Area or Internationally
Pin Code: 467111

Exclusive:

For Expedited Entry into the Conference, please register via this link for your Direct Access 800 number

http://www.AccuConference.com/TLGI

To hear a recording of the call (available for 30 days immediately following the conference call):

Call 1-800-977-8002 in the United States or Canada or;
Call 1-404-920-6650 in the Atlanta Area or Internationally
Pin Code: Press the star (*) key then 467111

ABOUT TRANSGLOBAL LOGISTICS, INC.:

TransGlobal Logistics (OTC:TLGI - News; www.transglobl.com) is a Florida based holding company focused on the establishment of a regionally-dominant inter-modal transportation group that is consolidating and combining a number of existing transportation and travel companies in order to provide transportation services under a single management umbrella. Through elimination of redundant administrative costs, and by maximizing the business synergies between its subsidiaries, TransGlobal will be able to create an organization that is more efficient and profitable than the sum of the individual components. By combining both management and transportation infrastructure in one organization, TransGlobal will be able through its acquisition strategy to vertically and horizontally integrate the necessary services required for the movement of people and cargo throughout the region.

invest at your own risk, based on your own due diligence, at your own risk tolerance

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.