Group Divisions

Over the years, the Trammo Group has evolved into a diversified commodities merchandising company both in terms of product mix and geographical business partner expansion. Trammo’s strategic diversification is one of the primary drivers behind our ability to re-invent the company successfully, day after day, year after year.

The Trammo Group’s global revenue amounted to USD 9.4 billion in 2015 (see footnote*), while global traded volumes totaled 63.8 million metric tons.

Services rendered by Trammo HQ

Chemicals Division

Trammo’s petrochemicals business was established in 1987 under the name “Trammochem.” Headquartered in Zurich, Switzerland, the Chemicals Division has trading offices in New York and Houston, USA; Shanghai, China; and Singapore. The Division’s sales and logistics personnel are active in all significant petrochemicals markets around the world. Major product categories include aromatics, olefins, and oxygenates. One of the key factors in its business success is its long-standing relationships with its suppliers and customers, which have been developed and nurtured for many years.

Over time, the Chemicals Division, like the other company divisions, has earned a reputation within the industry for reliable performance and first-class, value-added service. As all its products are marketed on a physical basis with no perfectly corresponding exchange contracts, hedging is achieved, when deemed appropriate, through the use of over-the-counter (OTC) pricing swaps with established commercial and financial counterparts.

The Chemicals Division has, as its cornerstone, long-term contracts with producers and consumers worldwide, across the range of its products. These relationships are supplemented with warehouse leases, both short- and long-term, and spot and time charters of vessels and barges to make deliveries. It has an exclusive off-take contract for propylene from Egypt Hydrocarbon Company (EHC).

Total annual sales volumes have increased substantially since start-up, from about 300,000 metric tons in 1988 to 5.6 million metric tons in 2015.

Trammo’s Chemicals Division is headed by Ashok Kishore, who joined the company in 1987 and is based in Zurich, Switzerland. He was appointed to the Board of Directors of Trammo, Inc. in 2012.

Revenue of Trammo's Chemicals Division (in USD million)

Revenue of Trammo's Chemicals Division (in USD million)
2008 2300
2009 1850
2010 3110
2011 4760
2012 5400
2013 6080
2014 6080
2015 4012

Sales volumes of Trammo's Chemicals Division (in '000 mt of product)

Sales volumes of Trammo's Chemicals Division (in '000 mt of product)
2008 2009 2010 2011 2012 2013 2014 2015
2700 2750 3540 4300 4400 4800 5000 5600

Commodities Division

Trammo's Commodities Division is headquartered in Tampa FL, USA and Zurich, Switzerland and has multiple offices around the world, which focus on maintaining regular, direct contact with key customers and suppliers. The Division manages a large portfolio of products that complement each other. It accounts for more than 75% of the Trammo Group's physical sales volume and over half of its revenue; its worldwide traded volume reached 29.2 million metric tons in calendar year 2015.

Trammo's ammonia activities put the group consistently among the world's leading independent transporters and marketers of anhydrous ammonia. Our experience in this product dates back to the early years of Transammonia, when we arranged our first international waterborne transportation of anhydrous ammonia. Trammo's international traded ammonia volume was close to 3 million metric tons in 2015 with a majority of the sales concluded with long-standing customers. This physical trading business typically utilizes vessels with capacities ranging from 8,000 to 40,000 metric tons operating under time or voyage charter arrangements. To support its transportation requirements, Trammo enters into long-term time charter agreements with international ship owners/operators for the use of their vessels over multiyear periods. Trammo employs between 8 and 10 gas carriers at all times and positions them in its strategic trading areas. Trammo is continuing to develop its domestic ammonia trading in the US and China with investments in logistic assets such as storage, trucks, rails and barges.

The United States, Northwest Europe, China, and Thailand are important distribution markets for the Commodities Division. In recent years, we have strengthened our logistics capabilities by expanding our storage network in these markets, bringing the number of locations where we hold leased warehouse space to approximately 35, for both liquid and solid fertilizers as well as sulfuric acid. Our wholly owned ammonia and UAN storage terminals in Meredosia, Illinois and Niota, Illinois (with a total NH3 capacity of 86,000 short tons and a total UAN capacity of 34,000 short tons) play a significant role in the success of our ammonia business. Trammo also leases space for ammonia in two other locations in the United States with a total capacity of 33,000 short tons, allowing direct access to regional river, rail or truck distribution markets. 

To support Trammo’s long-term strategies and provide additional tools for our market approach, we lease a range of transportation equipment, including approximately 650 railcars for the delivery of both dry and liquid fertilizers, sulfur, sulfuric acid and ammonia in the U.S. market. We also contract barges for the delivery of dry and liquid fertilizers via river systems; for our ammonia activities we lease fully refrigerated, inland waterway barge tows. In addition, Trammo owns several hundred tank cars, which transport molten sulfur from U.S. crude oil refineries to the East Coast, where sulfur is used in the production of phosphate fertilizers.

In 2003, Sudamericana de Metales and Transammonia established Trans Sud Limitada in Chile to focus on the import, export, and distribution of sulfuric acid in the region. The joint venture has a long-term lease agreement for the storage of sulfuric acid in the port of Mejillones, which enhances the logistics services that it is able to offer to its business partners. Trans Sud Limitada is an active participant in the mining industry in Peru and Chile.

In recent years, the Commodities Division has expanded into energy products, in particular petroleum coke and coal. Furthermore, technical grade ammonium nitrate was added to the product portfolio. During 2016, Egypt Hydrocarbon Company (EHC) is expected to start up production of technical grade ammonium nitrate (TGAN) at its plant in Ain Sokhna, Egypt. EHC has chosen Trammo as the sole supplier of its ammonia needs as well as the sole marketer of its TGAN, a key raw material in mining and civil construction work.

Trammo Bulk Carriers, a member of the Commodities Division, commenced its operations in 2010. It has established itself as a recognized time charter operator with a fleet of about 20 handysize and suprasize vessels. During 2015, Trammo Bulk Carriers transported 4.3 million metric tons of cargo, mainly fertilizers and grains. It has the ambition to further grow its operations, with continued focus on delivering high quality reliable service to support and benefit its customers worldwide. In a joint-venture with an established ship owner, Trammo owns an equity interest in three newly built vessels, m/v Trammo Stanton, m/v Trammo Baumann and m/v Trammo Independent. All three vessels are new eco-type handysize ships that fulfill the latest and future environmental standards.

Reflecting the growing economic importance of Asia and Africa, the Commodities Division has strengthened its foothold in these markets by establishing offices in Jakarta, Indonesia, in Dakar, Senegal, in Dar es Salaam, Tanzania, in Abidjan, Ivory Coast as well as Nanjing and Urumqi, China. The set-up of the Shanghai office is such that Trammo is able to develop its merchandising and trading activities in the Chinese market in local currency.

Finally, in September 2013 the Division expanded into soft commodities trading and merchandising by establishing a rice trading desk. The trading portfolio includes a large variety of different rice types, such as paddy rice, aromatic rice, brown rice, broken rice and many more. Rice sourcing is done in the main growing areas in Asia but also from the United States, South America and Europe. Trading in other soft commodities may follow.

Trammo’s Commodities Division is headed by Brent Hart, who has 42 years of experience in the industry. Brent Hart is based in Tampa FL, USA and Zurich, Switzerland.  He also serves on the Board of Directors of Trammo, Inc.

Revenue of Trammo's Commodities Division (in USD million)

Revenue of Trammo's Commodities Division (in USD million)
2008 7400
2009 3246
2010 4948
2011 6306
2012 6621
2013 5164
2014 5100
2015 4797

Sales volumes of Trammo's Commodities Division (in '000 mt of product):

Sales volumes of Trammo's Commodities Division (in '000 mt of product):
2008 2009 2010 2011 2012 2013 2014 2015
14625 15362 19776 19888 24969 28000 27300 29200

Gas Division

Trammo’s Gas Division comprises three different business areas:

The U.S. domestic LPG business is handled by the Gas Division headquarters in Houston, Texas. Propane accounts for the majority of the volume, but the Division also markets ethane, butane, isobutane, and natural gas. The business is mainly a spot market, structured around the storage caverns in Mont Belvieu, Texas, and Conway, Kansas. The LPG market is highly competitive. Primary trading counterparts include major international oil companies, financial institutions, commodity trading firms, and end users. Over the years, Trammo’s Gas Division has been able to establish itself as a market intermediary, providing trading support to commercial counterparts in need of both product supply as well as price stability. In this way, the Gas Division has been able to provide monthly product flows to a stable and reliable customer base.

Trammo’s first steps in international LPG merchandising date back to 1978, when Trammo Gas and Petrochemicals Ltd (TGP) was established and quickly became a key player, with a fleet of 22 chartered gas carriers. In 2005, Trammo exited the international LPG trade, but a subsidiary, Trammo Navigation Ltd., still has two VLGCs (Very Large Gas Carriers) under term charter contracts: LPGC BW Vision and LPGC BW Energy (formerly LPGC Dynamic Vision and LPGC Dynamic Energy, respectively), which are both currently sub-chartered.

Trammo’s wholly owned subsidiaries, Sea-3, Inc. and Sea-3 of Florida, Inc., own and operate propane import and wholesale distribution facilities with total storage capacity of more than 100,000 metric tons. Located on the Piscataqua River near Portsmouth, New Hampshire, and in the Port of Tampa, Florida, both terminals are capable of receiving or loading gas tankers with cargo capacities of up to 59,000 cubic meters. The Sea-3 terminals are two of only six active propane import terminals located on the East Coast of the United States.

The Gas Division and the two Sea-3 import terminals are managed by Trammo, Inc. in Houston, Texas. 

Revenue of Trammo's Gas Division (in USD million)

Revenue of Trammo's Gas Division (in USD million)
2008 3200
2009 1674
2010 1818
2011 1486
2012 892
2013 1230
2014 1173
2015 619

Sales volumes of Trammo's Gas Division (in '000 mt of product):

Sales volumes of Trammo's Gas Division (in '000 mt of product):
2008 2009 2010 2011 2012 2013 2014 2015
8886 8951 7779 7000 8000 9600 13200 29000

(*Footnote on Trammo Group's global revenue: Gas and Total Revenue figures have been increased by USD 507 million to include physical sales of our US LPG operation that would otherwise be eliminated in accordance with ASC 815.)