By Karen E. Thuermer, AJOTB. W. (Bill) Franks, CEO and President, The CrossGlobe Group, headquartered in Glen Allen, VA, is feeling optimistic. Not only does he believe the market for pulp and certain paper products is going to rebound; he is convinced his company is well positioned to service the increased demand. Like other businesses, break bulk has been down 20 to 30 percent during this global economic recession. “But we believe the break bulk business is going to dramatically change over the next 18 to 24 months, especially that coming from South America,” Franks says. CrossGlobe is positioning itself to make certain it has the facilities to handle those increases. CrossGlobe, which was founded in 1951 as Lydall Transport, Ltd, is a supplier of distribution and transportation services to producers of specialized break bulk products such as paper and other forest products, base metals, beverages, and other goods and commodities. Its services include warehousing, truckload hauling, drayage, and customized value-added services. Currently, it has operations in Monson, MA; Newport News, VA; Portsmouth, VA; Pasadena, Texas; Savannah, GA; and Port Elizabeth, NJ. Exports encompass 60 percent of CrossGlobe’s business, with many of those exports going to Europe, China, South America, and Mexico. “The Far East business is driven by one of our customers,” he says. “It’s one of their largest markets. But we are also seeing new opportunities for Europe.” Franks mentions Italy in particular. Research Indicators Already, research indicates a surge of imports to China, with price improvements beginning in the second half of 2009. Researchers say the worldwide pulp market will also rise throughout the next decade. Franks contends that the greatest growth opportunities exist on the import side. South America is projected to exhibit the fastest growth, he says. One reason is planted forests there grow faster than anywhere else in the world and yields of eucalyptus plantations are at least 10 to 20 times higher than native hardwood forest in the Nordic region, a traditional wood pulp producing area. But pulp machines are also coming on line over the next three years in South America, adding significant tonnage to world market, including North America. Researchers project that new, large scale factories will increase pulp capacity throughout the next decade. Franks reveals that most of the new pulp machines are planned for Brazil, with Uruguay also being cited for a plant. “Each machine will produce somewhere in the neighborhood of 1.5 million tons of wood pulp a year,” he says. “We think markets will see 3 million to 5 million tons of product over the next four years.” Eldorado Celulose is planning a pulp mill to be built in the Brazilian state of Mato Grosso do Sul. Other intelligence reports point to possible projects that include 12 million tons to start up by 2015. However, no confirmed major new pulp lines are scheduled for start-up in the region before 2013. One forecast shows market pulp capacity growth will average 5.7 percent annually between 2010 and 2014, hitting roughly 21 million tons in 2014. Strategic Planning Franks is positioning CrossGlobe for the market expansion. CrossGlobe already operates from 450,000+ square feet of distribution space within the Port of Virginia at their Newport News Marine Terminal (NNMT) and Portsmouth locations. The Virginia Port Authority (VPA) and Virginia International Terminals (VIT) have publically announced their commitment to diversify to bring more break bulk and bulk commodities to the port. VPA officials reveal that NNMT is seeing break bulk lines call there after a couple of tough years. In addition, CrossGlobe also has plans for a 200,000 square foot building that would expand its facilities within the Port of Virginia over nine months to a year. “That would give the company added capacity by the end 2011 just when pulp markets should be beginning their expansion,” Franks