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The Honolulu Advertiser
Posted on: Friday, March 28, 2008

Seattle bidder has big stake in Islands

By Greg Wiles

People in Hawai'i probably have never heard of Saltchuk Resources Inc., but most likely have heard of its stable of companies here.

The Seattle-based company takes its name from Chinook Jargon language meaning saltwater. It's businesses here include Young Brothers Ltd./Hawaiian Tug & Barge, Hawaii Fuel Network, Maui Petroleum and Minit Stop Stores, a chain of 11 shops on Maui and the Big Island.

"We love Hawai'i. We love the people, we love the culture," said Tim Engle, president of Saltchuk, a holding company focusing on cargo and transportation that was formed 25 years ago.

"This is an opportunity to further commit ourselves to Hawai'i."

Engle said Saltchuk was contacted by a New York investment bank a little more than a week ago asking if he was interested in a Hawai'i air cargo operation. The banker knew privately held Saltchuk already owned Northern Air Cargo, a cargo air carrier serving remote Alaskan communities, and had businesses in the Aloha State. Northern Air Cargo also operates 737-200 aircraft, the same type Aloha employs in its nighttime air cargo flights.

Engle said there appears to be little overlap in customer base among Young Brothers interisland barge operations and Aloha's air cargo business since the two carry different types of freight. Young Brothers carries shipments of large bulky items that generally aren't as time sensitive as the perishable items carried by Aloha's cargo jets.

"Having understood the air cargo business somewhat we thought this would be a good fit," Engle said in a telephone interview. "We like the future of Hawai'i."

He said the company, if successful with an auction bid, would preserve Aloha's service reputation while trying to maintain as many jobs as possible.

"Our goal is to ensure a smooth transition for both our employees and our customers."

Besides Northern Air Cargo, Saltchuk's Mainland holdings include Foss Maritime Co., Totem Ocean Trailer Express, American Cargo Transport and Constellation Maritime Co.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.