Weekly News Summary For April 10-16, 2006:
ACL Names Flagship For Norb Whitlock
Credited by senior managers of American Commercial Lines (ACL) with having guided the company’s barge line unit through its recent restructuring, W.N. “Norb” Whitlock beamed as his wife ably christened the towboat named in his honor March 27 in Louisville, Ky. The boat was formerly the Lily M. Friedman. It is now named Norb Whitlock.
“There are many people who had a role in getting the company to this position, but clearly they were led by Norb Whitlock and I have no doubt that (the future of this company) is in good hands with Norb at the wheel,” said Mark Holden, president and chief executive officer, at the renaming ceremony.
Forbes Magazine, among the nation’s leading business publications, last month selected ACL as one of the nation’s top five IPOs for 2005. The company emerged from Chapter 11 reorganization in January 2005, just less than two years after filing for protection, and went public in October.
“Last year we made a little over $100 million in earnings before interest, taxes, depreciation and amortization (EBITDA) and that was when we were just out of bankruptcy. There’s still a lot of work to be done,” Holden said in describing ACL’s successful emergence. “Next year, in ’07, we think we’ll make $190-200 million in EBITDA, so we’ll double our earnings.
“I think that’s important from an industry perspective because it allows us to invest in our people and equipment. We’re the (lowest cost) mode of transportation in this country by far and will only (remain so) if we can sustain ourselves, make money and continue to invest in equipment and people.”
ACL spent $16 million on its equipment in 2004, $35 million in 2005 and this year will invest $80 million, he said.
“One of the people who recognizes this more than most is Norb. During his work prior to 2003, really steering us through the bankruptcy and now out, he did the ‘heavy lifting,’ as we like to say, that put us in this position today. So, although I’ve said it many times before, Norb, thank you for your leadership,” Holden said.
Two former American Commercial Lines executives—Michael Hagan and Jim Wolff—as a part of Tell City Marine Contractors LLC, are looking to bring barge building back to Tell City.
The $18 million project, which could employ up to 150 people, locate at the former Maxon Marine site, which closed in July 1993. The property is now owned by the city, which has leased the property to Perry County Port Authority.
Hagan said the site selection was almost an obvious one.
“It’s kind of like the response to why you climb a mountain,” he said. “Because it is there. The barge industry is doing well for a variety of reasons right now. We recognized it as a viable business location. All the infrastructure was in place. Right now, the area is only used for cargo transfer.”
The Tell City common council recently offered a 90-day lease to Tell City Marine Contractors LLC. Richard Neumann, vice president and chief executive officer, said everyone is working diligently to ensure an agreement is reached.
“We are very optimistic and hopeful,” said Neumann. “There are several things that need to be worked out, such as the relocation of the existing port.”
When Coast Guard Captain Frank Paskewich travels, he said he is often asked, “Wow, where did you guys come from?” when discussing the amazing rescue efforts of the Coast Guard during Hurricanes Katrina and Rita, storms he said resulted in damage of “Biblical proportions.”
“That’s what we do,” the leader of Sector New Orleans explains. “That’s who we are and what we train for.”
Capt. Paskewich was installed as Commander of the newly organized Sector New Orleans 11 days before Hurricane Katrina hit. Three weeks later Hurricane Rita devastated the Louisiana/Texas boarder.
“People world-wide got a glimpse of what the Coast Guard does when we are in action,” he told some 100 active, reserve and Auxiliary Coast Guard personnel who gathered at Station New Orleans for a ceremony to acknowledge the efforts of the Auxiliary members during the devastating hurricanes last summer.
“During the two storms and their aftermath, the Coast Guard rescued 33,000 persons and handled 10 major oil spills including the largest in the United States since the Exxon Valdez,” Capt. Paskewich said, adding virtually all the roadways were blocked with debris but “we had to get the job done.”
Electromechanical Research Laboratories Inc., New Albany, Ind., also known as ERL Commercial Marine Inc., recently purchased Law Valve Repair, Houston, Texas.
The new name for the Houston location is Law Valve of Texas. It will continue to provide the same service and repairs to the tank barge industry, but now it will also be used to store ERL inventory, which includes tank barge equipment as well as other marine products. The Houston-based office, with eight experienced employees and a machine shop, is located within one of the major hubs for the liquid cargo industry and is within 10 minutes of four shipyards.
Frank Meyer will be the general manager and Debra Davis his assistant. The office address is 13702 Force St., Houston, Texas, and the office phone number is 713, 453-0413.
“We are confident that the Law Valve of Texas operation is a good fit for our company and we feel certain that the Houston location will allow us to better serve our customers on the Gulf Coast,” said Todd Marshall, ERL plant manager.
American Electric Power’s Ohio River docks recently entered into multiple contracts with Serodino Inc., Chattanooga, Tenn., to construct several specialty barges.
Two T-barges used in mooring loaded barges were ordered by Black & Veatch Engineers to be delivered to the Kyger Creek plant at Cheshire, Ohio, and to the Cardinal Plant near Wheeling, W. Va.
Southern Marine Construction has ordered another T-barge to be installed as part of their dock project at the Mountaineer Plant near New Haven, W.Va.
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