Updated: Redwood Holdings Announces Plan To Acquire Canal Barge Company

Redwood Holdings, which acquired Marquette Transportation Company last year, has announced plans to acquire Canal Barge Company.

The acquisition of Canal Barge and all its subsidiaries, which include Illinois Marine Towing and the IMT-Lemont Shipyard, Canal Terminal Company, Canal Analytical & Environmental Services and Pelican Marine Services in Houston, will be structured through a newly formed holding company controlled by Redwood.

Canal Barge will join Marquette Transportation under the same holding company, but they will maintain independent identities. Each company will remain focused on the safe execution of its business in support of its customer partners, Canal Barge Company told The Waterways Journal. Canal Barge Company will maintain its headquarters office in New Orleans, La., and Marquette will maintain its headquarters office in Paducah, Ky.

Over time, “The Canal Barge and Marquette teams will work together to capitalize on the strengths and expertise of each organization, creating opportunities for employees and expanding their combined service capabilities,” the company said.

“We are extremely excited to partner with Redwood and Marquette to grow our businesses together,” said H. Merritt Lane III, president, CEO and chairman of the board of Canal Barge Company. “Redwood is the ideal long-term home to continue the legacy of the CBC family and to provide opportunities to our mariners and shore-based employees. We are excited about this next chapter for our business and believe that Canal Barge will be well-positioned to provide the highest quality service to our customers and find additional areas of growth.”

Under the terms of the acquisition, Merritt Lane will become CEO of the holding company while also continuing in his roles at Canal Barge Company. David Lane will continue as executive vice president of Canal Barge. John Eckstein, Marquette’s executive chairman, will serve as executive chairman of the holding company. Damon Judd, president and CEO of Marquette Transportation, will oversee operations at Marquette and will become president of the holding company.

“The Marquette Transportation team is proud to welcome Canal Barge as a sister company through shared Redwood ownership,” Judd said. “With complementary services and shared values, this partnership strengthens our ability to expand the breadth and depth of our services across the diverse range of markets that we each serve. Canal Barge has an outstanding reputation and is a great fit for our people and our customers. The combined passion, experience and dedication of our mariners and shore-based teams will drive our joint success.”

While both leaders in the inland, Jones Act market, Canal Barge and Marquette bring diverse strengths to the new holding company. Canal Barge is one of the country’s largest liquid cargo carriers and a leading provider of marine transportation, logistics, terminaling and harbor services, while Marquette is a leading provider of barge towing services for the dry cargo and liquid cargo markets, with river, Gulf and offshore segments. The acquisition will make Redwood one of the largest owners of towboats and barges in the country.

“The Canal Barge team has built an industry leading business over 90-plus years exemplifying values consistent with both Redwood and Marquette,” said Ryan Mostrom, partner at Redwood Holdings. “We are excited to carry on the legacy of Canal Barge, with a continued focus on safety and customer service.

“Redwood is committed to long-term growth for our employees,” Mostrom continued. “We believe that both Canal Barge and Marquette are unique companies with common commitments to safety, exceptional talent, deep customer partnerships, strong people-oriented cultures and outstanding prospects for growth. We are committed to creating the leading platform in Jones Act marine transportation and logistical solutions.”

The transaction is expected to close in the late third quarter of this year, subject to customary closing conditions, including regulatory approvals.

More About Canal Barge Company

Canal Barge was founded in 1933 by Joseph Merrick Jones, originally with one barge and a capital investment of $10,000 in the middle of the Great Depression, Lane said in the “President’s Message” section of the company website.

Company achievements in the early years include operating the first all-welded steel tank barge to haul fuel along the Gulf Intracoastal Waterway in 1933 and constructing the mv. Bull Calf in 1939, a revolutionary towboat that became the model for landing craft used in World War II.

In 1947, Canal Barge developed the industry’s first integrated tank barge tow to minimize resistance and drag. In 1947, the company pioneered the first integrated tow and towboat dedicated to carrying sensitive liquid chemicals and lubricating oil from the Gulf Coast to Chicago, Ill.

Canal Barge Company faced what Merritt Lane has called “its greatest test” during Hurricane Katrina, returning to New Orleans after about 100 days of remote operations. The company went on to acquire the ConocoPhillps inland marine operation in 2007 and Illinois Marine Towing in 2008.

Throughout the years, the company has continued to grow and diversify through acquisition and internal expansion. In addition to moving cargo between the Gulf Coast and mid-America, Canal Barge Company now has an oceangoing deck barge fleet and has made calls on all coasts of the U.S. as well as foreign port calls in the Caribbean, Central America and South America and across the Atlantic Ocean, according to the website.

It is now considered one of the most diverse marine transportation companies in the industry, with more than 900 tank, hopper and deck barges, 49 towboats, a state-of-the-art liquid bulk terminal and the largest independent towing and fleeting service on the Illinois River.

The company reported it has 947 employees, in total.

More About Marquette Transportation

Ray Eckstein founded what is now the River division of Marquette Transportation Company in 1978 in Cassville, Wis. Over the years, Marquette joined forces with two other family-owned businesses, Eckstein Marine Services and HLC Tugs, to create its Gulf-Inland and Offshore divisions.

During the 1990s, Ray Eckstein named his son, John Eckstein, president of Marquette. John later succeeded his father as CEO. One of John’s early decisions was to relocate Marquette’s headquarters from Cassville to Paducah in 1991. All personnel in Cassville were offered jobs in Paducah, and many made the move. During John’s leadership of Marquette, the company reinvested to improve the operational efficency of its fleet and expanded its ability to service its customer partners through the growth of its linehaul barge towing system, including developing a fleet of large horsepower boats.

Today, Marquette Transportation is a leading provider of marine transportation solutions across America’s waterways. Marquette’s teams align around a purpose to “Conquer Every Mile” and Marquette’s commitment to “Conquer Harm” to people, equipment and the environment. With more than 1,700 mariners and a shoreside team, Marquette’s crews operate more than 130 towboats and tugboats across the Mississippi River System, Gulf Intracoastal Waterway and coastwise/offshore markets.

In February 2025, Marquette announced a $5 million expansion of its Paducah facility, including a new training center, warehouse and additional office space. The investment reflects its ongoing commitment to its people and operations.

Featured Photo: Canal Barge Company’s H. Merritt Lane III (left) and Marquette’s Damon Judd.