Weekly News Summary For August 3 - August 9, 2009:
In line with previously announced expectations, American Commercial Lines Inc. reported reduced revenues and profits for the second quarter of 2009. Declines in its higher-margin metals and petroleum-products cargoes hammered profits, even as grain volumes increased (but at lower rates) along with cash flow.
North-south cargo imbalances also meant more dead-head trips with empty barges. The company lost $3.8 million in the second quarter, compared with a net profit of $3.7 million in the second quarter of 2008.
In response, ACL refinanced its debt and cut costs. Among the cost-cutting measures were layoffs of about 10 percent of its manufacturing workforce at its Jeffboat barge-building facility. The move came after other cost-cutting measures. ACL froze salaries last year, and closed a Houston office in February.
Revenues for the quarter that ended June 30 were down 30.4 percent compared to the same period in 2008—$224.7 million vs. $322.7 million for the same period last year. In the second quarter, an average of 79 boats were active, as opposed to 95 in the same period of 2008, ACL president and chief executive officer Michael Ryan said in a July 29 conference call on the earnings report.…
In a recessionary environment, Kirby Corporation announced on July 29 second-quarter earnings of $33.7 million, or 63 cents per share, compared with $40.3 million, or 74 cents per share, at the same time a year ago.
Despite decreased demand, the marine transportation division’s operating margin improved to 24.4 percent for the second quarter, compared with 22 percent for 2008’s second quarter.
For the first six months of 2009, earnings were $61.7 million, ($1.15 per share), compared with $77 million ($1.42 per share) for the first half of 2008.
Kirby’s president and chief executive officer, Joe Pyne, commented, “The decline in our marine transportation and diesel engine services reflects a difficult economic environment. Our 2009 first quarter actions focused on early retirements, staff reductions, cost reductions and efficiency initiatives.”
The shoreside staffs of the marine transportation and diesel engine services segments were reduced by about 6 percent. All officer and management salaries were frozen at 2008 levels, and the company laid up towboats and tank barges.
Kirby attributed the improved margins to their cost reduction and efficiency measure, improved operating conditions on the rivers, and a reduction in insurance claims. Pyne said more favorable operating conditions, especially on the Ohio River contributed to a 40 percent reduction in delay days over last year. “But of course, these conditions also drive down barge utilization numbers,” he noted.…
Washington, D.C. — The Office of the Assistant Secretary of the Army for Civil Works has proposed legislation that the administration said was designed to improve the way the country raises the revenue needed to cover the non-federal share of the capital costs of inland and intracoastal waterways projects.
In a letter to House Speaker Nancy Pelosi, Terrence C. Salt, acting assistant secretary of the Army, said the proposed legislation would authorize a lock usage fee, which over time would replace the current fuel tax for those waterways. The proposal is in direct opposition to waterways industry leaders who are firmly against the imposition of a lockage fee.
On most of those waterways, commercial users now pay an excise tax of 20 cents per gallon on diesel fuel, which is deposited in the Inland Waterways Trust Fund. The money finances half of most of the costs that the Army Corps of Engineers incurs to construct, replace, expand and rehabilitate the locks and dams on the waterways. Salt said that waterway users now pay a total of about $85 million per year. The annual receipts now cover less than 10 percent of the total cost of supporting commercial navigation on the waterways, Salt added.…
A well-known, established river services company wants to enter the green energy game. McGinnis Inc. of South Point, Ohio, filed for permits to anchor up to 11 barges at points along the Ohio River to hold submerged turbines to generate electricity, the Louisville Courier-Journal reported July 23.
The barges would be anchored below dams, including one just below the McAlpine dam in Louisville, Ky.. Company president Bruce McGinnis applied for preliminary permits from the Federal Energy Regulatory Commission (FERC), the federal body responsible for regulating such projects. The permits would give the company three years to conduct feasibility studies on each site. Several of the site proposals are open to public comment through August 24.
FERC has held similar hearings on other proposals to generate power from river turbines, including proposals to anchor turbines to the bottom of the Mississippi River at more than 65 sites (see WJ, May 18, 2009).
McGinnis’ proposal is different. In his vision, ten turbines, each about seven feet wide, would be mounted along the sides of a barge that would be anchored to the river bottom with steel poles. The barges could be moved to take advantage of shifting currents, although they would be sited away from channels. Electric current would be transmitted by an insulated high-voltage line to the onshore power grid. Each barge would generate enough current to power about 260 homes.…
It was Easter weekend, in 1969, when Crescent River pilot Kenneth H. Scarborough boarded the mv. Union Faith, not knowing it would be his last voyage.
As the ship approached the bridge in New Orleans, a tow cut across his bow. Unable to stop, the Union Faith sliced a barge in half, dumping its load of No. 6 oil into the Mississippi River and instantly bursting into a huge fireball.
As the Union Faith drifted downriver, Capt. Scarborough was last seen racing through the flames toward the bow, where he was able to release both anchors. His heroic actions cost him his life, but probably saved much of the New Orleans waterfront from a devastating fire.
The anchors held the ship in midstream until it listed and finally sank, where it still lies to this day. An additional 25 crewmen died in the fire.
Recognizing his actions, the Board of Commissioners of the Port of New Orleans named its new patrol boat the Capt. Kenneth H. Scarborough at its monthly meeting on July 16. Christening ceremonies were held following the meeting.…
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