Weekly News Summary For October 29–November 4, 2007:
President Bush has until November 3 to sign the Water Resources Development Act of 2007 or veto the legislation that landed on his desk October 23. If the president does not sign or veto the measure within the 10 days that he’s allowed to make a decision, the bill will become law automatically.
The arrival of the bill at the White House was announced by Rep. Richard Baker (R-La.), ranking member of the House Water Resources and Environment Subcommittee.
“While the partisan theatrics that delayed getting this important bill to the president were unfortunate and unnecessary, today’s progress means that Louisiana is one step closer to securing over $3 billion for historic investments in coastal restoration, flood control and hurricane protection projects,” Baker said. “Despite the president’s veto threat, I stand committed to ensuring that WRDA is enacted expeditiously.”
Keeping their fingers crossed, advocates of the bill recalled that Bush had warned of his opposition to the $20 billion bill, “because the conference version of H.R. 1495 significantly exceeds the cost of either the House or Senate bill and contains other unacceptable provisions.”…
Kinder Morgan River Terminals has filed suit against the Fort Smith (Ark.) Port Authority, after the authority dismissed Kinder Morgan and named Five Rivers Distribution the operator of the port.
The termination is effective November 1, said Rick Parrish, chairman of the port authority.
Kinder Morgan River Terminals filed the suit to “preserve their rights as terminal operators,” said Kinder Morgan spokeswoman Emily Thompson.
The company had the option to operate at Fort Smith Port Authority through 2031, she said.
“The city ignored repeated requests to discuss the matter and resolve the issue,” Thompson said.
The port claims Kinder Morgan was in breach of contract for not paying on time and failing to provide an audited financial statement, according to Parrish.
“We declared them in breach of contract and terminated them,” Parrish said….
Canal Barge Company Inc., New Orleans, La., last week announced that it has acquired and is operating the inland marine fleet of ConocoPhillips, based in Sulphur, La. The transaction was finalized October 11.
Included in the acquisition were seven towboats and 14 tank barges that operate primarily on the Gulf Intracoastal Waterway. The towboats are the Choctaw, Coushatta, Innovator, Integrity, Lake Charles, Liberty and Spirit. They range from 1,500 to 2,000 hp. The barges are all double-skinned inland tank barges, ranging in capacity from 16,000 to 30,000 barrrels.
Canal will charter all of the equipment back to ConocoPhillips for its exclusive long-term use.
Canal also said it has made offers of employment to ConocoPhillips personnel assigned to the vessels. After integrating the ConocoPhillips operation, Canal will have more than 450 vessel- and shore-based employees and offices in New Orleans, Belle Chasse, and Sulphur, La.; Channahon, Ill.; and Houston, Texas….
In an effort to “reduce the burden on the towing industry and the Coast Guard,” the National Maritime Center (NMC) announced it will begin approving Designated Examiner credentials for a period of five years instead of the current two years.
The change will apply to all original approvals and renewals of previously granted approvals after November 1. The change will not affect the expiration date of existing approvals.
The change in wheelhouse licensing procedures begun in 2001, requiring an apprentice wheelman to operate under direct supervision of a licensed mariner for a period of time while the apprentice performs towing-related tasks, much akin to a “learner’s permit” for drivers of motor vehicles.
Designated Examiners observe apprentices performing vessel tasks and maneuvers. The examiner signs off on a TOAR (Towing Endorsement Assessment Record) booklet only after personally observing the task being performed….
On his desk in his wood-paneled office in Houston’s Post Oak area is a golf ball with the presidential seal on it. One of George Thomas’ most prized possessions, it was presented to him on the golf course by former President George H.W. Bush, who had played Thomas’ ball by mistake after hitting his own into the wrong fairway. When confronted, President Bush offered up the ball with his apologies.
Now that a brand new towboat carries his name, though, the golf ball may have to take a less lofty spot on his list. Higman Marine Services christened the mv. George H. Thomas in his honor September 12. He is president of the company.
The 1,800 hp. boat measures 72 by 30 feet, and was built in Bourg, La., by Intracoastal Iron Works.
Before becoming involved with Higman, Thomas was senior vice president-worldwide operations at The Offshore Company (now Transworld Offshore, the largest marine drilling contractor in the world) and president of Salen Group, an offshore drilling contractor….
Kirby Corporation announced record net earnings for the third quarter of $34.4 million, or 64 cents per share, compared with net earnings of 25.9 million, or 48 cents per share, for the 2006 third quarter.
Consolidated revenues for the 2007 third quarter were a record $302.6 million, an increase of 14 percent over the $264.6 million reported for the 2006 third quarter.
“Our record third quarter results mark the 15th consecutive quarter that our earnings exceeded the same quarter of the previous year,” said Joe Pyne, Kirby’s president and chief executive officer. “Our marine transportation demand fundamentals remain the best we have seen since the early 1980s, with our fleet of tank barges and towboats essentially fully utilized. Pricing for our services continues to trend upward.
“Our diesel engine services segment continues to benefit from strong service activity and direct parts sales in the majority of its markets, as well as from the accretive acquisitions during 2006 and 2007, including the acquisition of Saunders Engine and Equipment Company Inc. on July 20 for $12.4 million in cash, subject to working capital adjustments.”…
American Commercial Lines Inc. reported last week revenues and net income for the third quarter declined from 2006 levels.
Revenues for the quarter, which ended September 30, were $258.4 million, a 3 percent decrease compared with $266.6 million for the third quarter of 2006. Net income for the quarter was $15.9 million or 30 cents per diluted share, compared to net income of $28.4 million or 45 cents per diluted share for the third quarter of 2006.
The company said that revenues for the nine months ending September 30 were $747.8 million, a 10.6 percent increase compared with the $676.7 million for the similar period of 2006. Net income for that period, however, was 20.7 million, or 35 cents per diluted share, compared to net income of $57.3 million or 91 cents per diluted share for the first nine months of 2006. Results for the first nine months of 2007 included after-tax debt retirement expenses totaling $15.3 million on the retirement of the company’s 9.5 percent senior notes and the company’s previous revolving credit facility which reduced earnings per share by 26 cents….
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