Page 31: of Marine News Magazine (July 2017)

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COASTAL SHIPPING

Not surprisingly, Kirby also ordered two smaller ATBs, equipment trades on all three U.S. coasts.

pairing 6,000 HP tugs with 155,000 barrel capacity barg- Re? ecting the trend towards larger ATBs, privately held es. Meanwhile, the K-Sea ? eet is a mainstay of Kirby’s op- Bouchard Transportation is another Jones Act operator erations in the Northeastern seaboard trades. And, Kirby which has upsized. Recent tracks show these 250,000 ATB continues to invest in the ATB concept. units trading between Texas and the Lower Mississippi

Crowley Maritime operates ATB’s with cubic capacities River. Its smaller units trade actively along the East Coast.

that rival that of small tankers. A trio of large ATBs in the Meanwhile, Vane Brothers, active in the fuel trades

Crowley stable – the 750 series – with cargo carrying ca- along the U.S East Coast, also operates a pair of 145,000 pacities of 330,000 barrels, were built in the US Gulf at VT barrel ATBs. Vane, doubling down, also has three smaller

Halter and the tugs at Dakota Creek Industries. These units ATBs under construction, according to its internal Pipe- trade side by side with similarly sized conventional “MR” line publication.

product tankers. John Ara, Crowley’s Vice President of Sales Other important participants in the business include and Chartering, Petroleum and Chemical Transportation, U.S. Shipping Corp., Overseas Shipholding Group told MarineNews, “Because ATBs, with the exception of (OSG), Reinauer Transportation and Moran Towing &

Crowley’s 750 series, generally have smaller capacities than Transportation. Privately held U.S. Shipping Corpora- most tankers, these two types of vessels are utilized in differ- tion owns four modern ATB’s that haul re? ned products ent markets. Crowley’s 750 series ATBs are the only ones that and chemicals. The company’s CEO, Al Bergeron, told could potentially compete in the self-propelled tanker mar- MarineNews, “We operate a chemical ? eet of ATB’s and ket, but they are currently on charter to dedicated trades.” one chemical tanker using COA’s (Contracts of Affreight-

Crowley also operates two other classes of ATB’s – the ment) and spot market cargoes.” He stressed the differenc- 550 series (with barges of 155,000 barrel capacity) and the es between his company’s ATB parcel trades, as compared 650 series (with barges of 178,000 barrels capacity). Its to those of competitors which might haul a full barge load

Kirby ATB construction budgets (source: regulatory f lings)

Year ASSET ASSET 6,000 hp tug / 155,000 bbl barge 10,000 hp tug / 185,000 bbl barge … $19,201,000 for down payments on the Based on current commitments, steel prices and projected delivery schedules, 2014 construction of two 155,000 barrel articulated tank the Company’s 2014 capital expenditures … will be approximately … barge and 6000 horsepower tugboat units $45,000,000 in progress payments on the construction of the 185,000 barrel coastal articulated tank barge and tugboat unit.

… $33,030,000 for progress payments on the For 2015, cash generated and borrowings under the Company’s revolving 2015 construction of two 155,000 barrel coastal articulated credit facility were used for capital expenditures….including $74,442,000 tank barge and 6000 horsepower tugboat units for progress payments on the construction of two 185,000 barrel coastal articulated tank barge and 10000 horsepower tugboat units, $74,689,000 for progress payments on the For 2016, cash generated and borrowings under the Company’s revolving 2016 construction of two 155,000 barrel coastal ATBs credit facility were used for capital expenditures of …, including $14,884,000 in