Page 8: of Maritime Reporter Magazine (February 1992)

Barge Industry

Very Optimistic

As Rates Rise

The barge industry is extremely optimistic about 1992, as the combi- nation of strong coal exports and a better-than-expected grain harvest kept demand for equipment high and pushed rates up dramatically in the second half of 1991.

Spokesmen for Ingram Barge Co.,

Nashville, Tenn., and Ohio River

Companies, both major inland river coal haulers, anticipate 1992 will be a better year than 1991, based on the strong second half of this year.

Craig Philip, senior vice president,

Ingram Barge Co., said, "We haven't seen this kind of run-up in recent years.

The trade generally believes that the strength oftheexportcoalmarketpulled everything up."

Operating about 1,500 barges on thenation'sinlandriversystem,Ingram

Barge gets about two-thirds of its rev- enue from hauling dry bulk and one- third from hauling liquid bulk cargoes.

The Nashville company handles about 30 percent of the export coal shipped on the rivers.

According to Fred Raskin, Ohio

River Companies, 1991 has been an excellent year for coal exports, and he expects next year to be even better. "We'll have maybe a record next year on [coal] exports," stated Mr.

Raskin. Low-sulfur coal originat- ing in Montana and Wyoming, as well as West Virginia's Kahawha

River Valley, is shipped to termi- nals on the Mississippi River near

St. Louis, where it is then barged to

Gulf ports.

A large percentage of the export market consisted of steam coal be- ing shipped to European utilities. "The European market, in gen- eral, is looking very strong," said

Mr. Philip. He also said French and Italian buyers have also been in the U.S. market.

The rise in coal exports has tight- ened the supply of barges, and brought demand more in balance with supply.

Mr. Philip believes that, because of the equipment supply situation, commitments for barges will be made earlier in 1992. In addition, he also predicted that rates for next year will be up about $1 per ton, or 15 percent higher then they have been.

McDermott Awarded

Exxon's 'Zinc' Contract

McDermott Marine Construction has received a contract from Exxon

Company for the installation of three pipelines, two umbilicals and a tem- plate in the Mississippi Canyon area.

The 6.1-mile flowlines will link the 'Alabaster' platform at Mississippi

Canyon Block 397 to the ten-slot 'Zinc' subsea template at Mississippi

Canyon Block 355.

McDermott pre-installed the piles for the Zinc project in 1991.

Installation will take place in two phases. Phase 1 will occur during the summer of 1992 with the laying of pipelines by McDermott's combi- nation barge DB 28 from the Ala- baster site in 468'WD to the Zinc site in 1,500'WD.

Phase 2 will follow in Fall, 1992 using McDermott's DB 50 to install the template and two umbilicals.

Flowline tie-in will use the J-Tube method at the Alabaster site and the pipeline deflection method at the

Zinc site.

Lykes Charters Four

Multi-Purpose Vessels

Lykes Bros. Steamship Co., Inc. has entered into an agreement with

First International Leasing Corpo- ration to time charter four multi- purpose vessels, two for an 8-year term and two for a 7-year term. At the same time, Alfred C. Toepfer

Schiffahrtsgesellschaft m.b.H., of

Hamburg, Germany, has been ap- pointed by First International Leas- ing Corporation to manage the ves- sels on their behalf.

The first two vessels will be re- named the Doctor Lykes and the

Joseph Lykes, and will enter the

Lykes fleet in mid February 1992.

Lykes will take delivery of the re- maining two vessels in early 1993.

Maritime Reporter/Engineering News

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