NOTE E - UNCONSOLIDATED ENTITIES

Brattholmen Shipping Ltd

In 2014, we acquired a 30% interest in Brattholmen Shipping Ltd, which was organized to purchase and operate two Asphalt Tankers. We contributed to this entity $2.1 million in 2014. Both vessels were immediately employed on long-term bareboat charters.

Saltholmen Shipping Ltd

In November 2013, we acquired a 30% interest in Saltholmen Shipping Ltd, which was organized to purchase and operate two newbuilding Chemical Tankers which were delivered in the first quarter of 2014. We contributed to this entity $2.7 million in late 2013 and $5.8 million in early 2014. Both vessels were immediately employed on long-term bareboat charters. In late 2014 we received a dividend of $585,000.

Oslo Bulk, AS and Oslo Bulk Holding Pte Ltd

In December 2009, we acquired for $6.25 million a 25% investment in Oslo Bulk AS (“Oslo Bulk”) with which, in 2008, we contracted to build eight new Mini-Bulkers. All of the Mini-Bulkers were delivered and deployed as of July 2011. During 2010, we invested an additional $3.9 million in Oslo Bulk Holding Pte Ltd. (formerly “Tony Bulkers”), an affiliate of Oslo Bulk, for our 25% share of the installment payments for two additional new Mini-Bulkers, both of which were delivered and deployed as of July 2011. We paid approximately $1.6 million in January 2011 for our remaining share of installment payments associated with these two Mini-Bulkers. Additional investments of $750,000 and $250,000 were made in 2012 to Oslo Bulk and Oslo Bulk Holding Pte. Ltd., respectively. In December 2012, we contributed $500,000 towards our share of a bank guarantee to finance four Mini-Bulkers delivered in early 2013, which was subsequently released and replaced by a guarantee in February 2014. On July 1, 2013, a stock issuance to an unaffiliated co-investor caused our interest in six of the vessels to be reduced to 23.68%. In November 2013, we contributed $284,000 towards our share of a minimum value covenant. Additionally in 2013, we acquired a fifteenth and sixteenth vessel using our existing equity. These investments are accounted for under the equity method and our share of earnings or losses is reported in our consolidated statements of income, net of taxes. All sixteen of these Mini-Bulkers are managed by an affiliate of Oslo Bulk.

Terminal Management Company

In 2000, we acquired a 50% interest in TTG for $228,000, which operates a terminal in Coatzacoalcos, Mexico, utilized by our Rail-Ferry segment. During 2005, the other unaffiliated 50% owner of TTG acquired 1% of our 50% interest in TTG. As of December 31, 2014, we have a 49% interest in TTG. In 2006, TTG began making improvements to the terminal in Mexico to accommodate the second decks that were added to our two wholly owned vessels operating in our Rail-Ferry Segment during the first half of 2007. We funded 49% of the cost of the terminal improvements, of which 30% is a capital contribution and is reported as an investment in unconsolidated entities. The remaining 70% is a loan to TTG (see Note X -Transactions with Related Parties). No capital contributions were made during the years ended December 31, 2014 and 2013. The investment is accounted for under the equity method, and our share of earnings or losses is reported in our consolidated statements of income, net of taxes. In the table below, our portion of the results from our investment in TTG is included in Other. A dividend of approximately $290,000 was made to us by TTG during 2014. As of December 31, 2014 and 2013, TTG owed us approximately $1.7 million and $2.0 million, respectively (See Note X- Transactions with Related Parties).

Transloading and Storage Facility Company

In 2005, we acquired a 50% interest in RTI, which owns a transloading and storage facility that was used in our Rail-Ferry segment, for approximately $1.6 million. We purchased our shares from a former owner at a premium, which resulted in a difference of approximately $973,000 between our investment in RTI and the underlying equity in net assets of the subsidiary. Additional investments of approximately $386,000 were made in 2006. On December 20, 2011, we sold our 50% interest in RTI to the other 50% owner for $526,000 in cash and two promissory notes in the amount of approximately $1.8 million and $137,500, respectively. As of December 31, 2012, RTI owed us approximately $1.9 million. The sale of our 50% interest resulted in a loss of $967,000, which was recorded in the line item Loss (Gain) on Sale of investment at year end December 31, 2012. Interest income on both notes will be earned at a rate of 6% per year for five years. As of May 2013, the note receivable was collected in full.

The following table summarizes our equity in net income (loss) of unconsolidated entities for the years ended December 31, 2014, 2013, and 2012:


	Years Ended December 31,
(All Amounts in Thousands)		2014		2013		2012
Oslo Bulk, AS	$	-	$	(812)	$	1,010
Oslo Bulk Holding Pte, Ltd (formerly Tony Bulkers)		(469)		(774)		(935)
Terminales Transgolfo, S . A . D E C . V .		(193)		(75)		(290)
Saltholmen Shipping, Ltd		567		-		-
Brattholmen Shipping, Ltd		105		-		-
Total Equity in Net Income (Loss) of Unconsolidated Entities	$	10	$	(1,661)	$	(215)