Inland Pushboat Market Report

Transcription

Inland Pushboat Market Report - February 2014

Marcon International, Inc.
P.O. Box 1170, 9 NW Front Street, Suite 201
Coupeville, WA 98239 U.S.A.
Telephone (360) 678 8880
Fax (360) 678-8890
E Mail: [email protected]
http://www.marcon.com
Vessels and Barges for Sale or Charter Worldwide
February 2014
Inland Pushboat Market Report
Following is a breakdown of pushboats Marcon has available for sale worldwide. Most of these are typical U.S. inland
river units, although there are a few foreign pushboats listed from Europe, Latin America and Southeast Asia.
Horsepower Ranges
Jun 1996
Apr 1997
Jan 1998
Jan 1999
Jan 2000
Jan 2001
Feb 2002
Feb 2003
Feb 2004
Feb 2005
Feb 2006
Feb 2007
Feb 2008
Feb 2009
Feb 2010
Feb 2011
Feb 2012
May 2012
Aug 2012
Nov 2012
Feb 2013
May 2013
Aug 2013
Nov 2013
Feb 2014 - Worldwide
Feb 2014 – U.S.
Feb 2014 – Foreign
Avg. Age - Worldwide
Avg. Age – U.S.
Avg. Age – Foreign
For Charter - Worldwide
For Charter – U.S.
For Charter - Foreign
Under
1,000
75
60
66
58
73
61
48
57
39
33
26
22
20
17
33
37
31
29
26
26
31
29
27
32
31
27
4
1979
1980
1972
5
4
1
1,000 –
2,000
19
16
22
18
25
33
11
30
22
13
5
5
17
14
25
26
19
20
22
27
28
25
30
29
28
24
4
1977
1978
1972
11
7
4
Up Since Last Report
2,000 –
3,000
5
4
6
4
6
4
3
4
6
9
7
6
7
6
13
8
6
9
15
15
18
16
16
16
13
12
1
1968
1966
1991
6
2
4
3,000 –
4,000
10
12
12
8
7
7
3
14
7
7
4
4
5
4
10
6
4
6
4
7
8
10
9
9
6
5
1
1965
1960
1993
0
0
0
4,000 –
5,000
7
3
2
3
3
3
0
2
1
2
1
1
5
5
6
3
1
5
4
6
7
8
10
9
5
3
2
1979
1962
2005
0
0
0
5,000 –
6,000
6,000 –
7,000
5
2
2
0
1
0
0
0
0
0
0
0
0
0
0
0
4
4
2
4
4
3
3
3
1
1
0
1966
1966
0
Over
7,000
7
0
0
1
1
2
0
0
0
0
0
0
0
0
0
0
0
1
1
1
1
1
1
1
1
1
0
1969
1969
0
0
0
0
Total
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4
4
4
4
4
4
0
0
0
0
0
128
97
110
92
116
110
65
107
75
64
43
38
54
46
87
80
69
78
78
90
101
96
96
99
85
73
12
0
0
0
22
13
9
0
0
0
0
0
0
Down Since Last Report
Not included though in the list are those vessels, which are not officially on the market, but could be developed on a private and confidential basis.
Market Overview
Of the 12,705 vessels (excluding barges) Marcon currently tracks, 673 are inland river pushboats with 85 officially on
the market for sale (73 U.S. flag and 12 foreign flag). Fourteen of the boats with age listed were built within the last ten
years. 42 boats are forty-five years of age or older with the oldest listed built in 1939. This is counter-balanced by five
660-4,500BHP newbuildings that were scheduled for delivery in 2013. The first quarter of 2014 has offered good
results for the inland river market. Despite cold temperatures with icy conditions, utilization has been above average.
The sale and purchase market for pushboats and river barges remains stable with steady prices even for older
tonnage. There have recently been some mid-life barges offered for sale. It remains a good time to market medium
age barges and underutilized pushboats to take advantage of the current market with foreign buyers.
www.marcon.com
Details believed correct, not guaranteed. Offered subject to availability.
Inland Push Boat Market Report – February 2014
Breakdown by Built & BHP
Built
1939
1945
1949
1950
1952
1953
1955
1956
1957
1958
1960
1961
1962
1963
1964
1966
1967
1968
1969
1970
1972
1975
1978
1979
1980
1981
1982
1983
1986
1990
1991
1993
1997
1998
2005
2007
2008
2012
2013
Grand Total
<1000
1000-1999
2000-2999
3000-3999
4000-4999
5000-5999
6000-6999
Grand Total
1
1
1
1
1
1
2
2
1
1
1
1
1
1
1
1
1
1
2
1
1
1
1
1
1
1
1
1
1
1
2
2
2
1
1
1
1
1
1
1
1
1
1
2
1
2
2
3
2
1
1
1
1
1
1
1
1
1
1
4
2
1
2
1
31
2
28
1
13
6
1
5
1
1
1
1
1
1
3
2
1
3
4
3
3
2
3
2
1
4
2
1
4
1
3
2
1
1
4
4
4
1
3
1
1
1
1
1
4
2
1
2
5
85
Of the vessels listed for sale, CATs engines are most popular with
machinery in 23 vessels. These are followed by Cummins in 16,
General Motor / Detroit Diesels in 12, EMDs in 11, and nine with
other engine types. Naturally, most inland river pushboats we have
listed for sale are located in the U.S. with 72 vessels or 85%;
followed by 9 or 11% in Europe, one each in the Caribbean, Latin
America, Mediterranean and undisclosed location.
Actual sale prices of all vessels and barges sold by Marcon so far
in 2014 have averaged 93.67% of asking prices, compared to
2013’s 87.07%, 2012’s 81.79% and 2011’s average 93.03%.
Average asking prices and price indications have remained steady
since our last report. We continue to see a limited number of new
listings. The market outlook is stable and growing since our last
report. There are always a few vessels unofficially on the market,
so buyers should contact Marcon with specific requirements.
Marcon currently has 22 inland river pushboats listed for charter nine foreign and 13 in the U.S.
www.marcon.com
2
Grain Transportation Report
Second Annual Transportation Infrastructure Summit Highlights
Importance of Waterways to Agriculture - On February 20, the U.S. Chamber
of Commerce hosted its second annual Transportation Infrastructure Summit in
Washington, DC. Speakers at the event broadly represented government,
industry, and advocacy organizations, highlighting the role of transportation in the energy, manufacturing, agriculture,
retail, and healthcare sectors. Throughout the sessions, conversations addressed rail, roads, air, pipeline, waterway,
and public transport systems, but the focus of the agriculture session was centered on waterways.
Waterway Funding - A major theme echoed by speakers during the agriculture transportation session was that the
focus of waterway funding should be on maintaining the current infrastructure rather than building newer or bigger
infrastructure. Craig Philip, Ingram Barge Company, stated that the waterway infrastructure was designed with extra
capacity. According to Philip, as most locks have operated below their full capacity, this has had the effect of extending
their original 50-year lifespans. Philip suggested the barge industry would be better served to shift its focus from one of
lock expansion to one of lock maintenance. He said, although capacity expansion is needed in some areas, the overall
focus should be on preserving and repairing the current infrastructure to a standard of reliable operability.
Jim Hannon, U.S. Army Corps of Engineers, expressed that the focus on funding is changing. As the waterway
infrastructure ages, unscheduled outages have increased, raising the costs to shippers. To address this, the Corps
uses life-cycle asset management to identify and address where dollars are best spent. With its limited budget, the
Corps has focused its priority on preserving locks and dams, ensuring a reliable waterway system through
rehabilitation of critical components rather than the construction of new ones. In addition, Hannon remarked that the
Corps is looking into alternative methods of financing to bring in additional resources above appropriations.
Transportation Complements & Competition - A second major theme that emerged was how waterways are critical
to agriculture and freight transportation. Rick Calhoun, Cargo Carriers, Cargill Inc., summarized this theme by stating
it takes a combination of waterways, roads, and rail to create sufficient capacity and competition for moving agricultural
products to ports and markets. He said, if one component fails, commodity prices spike, profits vanish, and consumers
do not get the products they need. Philip agreed that it was unrealistic to think in terms of one transportation mode
versus another because almost everything carried by barge started or ended on a different mode. Mike Steenhoek,
Soy Transportation Coalition, brought up a different point related to interdependence of transportation modes. Using
the example of the Panama Canal, he explained how waterways and barges contribute to greater overall
transportation network efficiency by providing modal competition. After the Panama Canal expansion is complete, the
Soy Transportation Coalition estimates total grains and oilseeds transiting the canal will increase 30% by 2021.
Steenhoek indicated larger vessels will accommodate up to 13,300 additional tonnes, which will provide 35 cents per
bushel in savings to shippers. As these larger ships call on New Orleans, shippers moving product to New Orleans will
face wider margins. In turn, this will increase the draw or distance away from river transportation that barges can
compete with rail by 91 miles (from 70 to 161 miles). Currently, the Soy Transportation Coalition estimates that within
70 miles of a waterway, barge is the most economical option, but beyond 70 miles, rail is more economical. After the
Canal expansion, Steenhoek thinks the draw may expand to 111 miles if loading Panamax vessels or 161 miles if
loading small Capesize vessels in southern Louisiana. Further, as barges become a viable option over a wider area,
this should impact rail rates, making rates more competitive as railroads face barge competition in new areas. Thus,
Steenhoek concluded investment in waterways will ensure competitive transportation options for agricultural shippers.
International Competitiveness The third major theme from the agriculture session concerned how investments in
waterway and transportation infrastructure keep the U.S. competitive in world markets. Calhoun told the group that
despite new agricultural markets and developing uses for crops, transportation is still at the heart of agriculture. The
United States’ competitiveness in agricultural markets depends on the lower cost and reliability of its transportation
system, despite lower production costs of other countries. Calhoun emphasized that each additional dollar spent on
transportation is a dollar that does not go to the producer or is an additional dollar a foreign buyer must pay. Similarly,
Steenhoek noted productive farmland cannot be outsourced, so it has potential to provide a permanent competitive
advantage if the necessary investment is made in infrastructure. He stressed that competitiveness is not just “outinnovating,” but can also be “out-delivering.” However, Calhoun remarked the U.S. is falling behind China and Brazil in
terms of investment in waterway infrastructure. Steenhoek added that if Brazil is able to out-compete the U.S. in selling
soybeans, he hopes it will be because Brazil has done a remarkable job in updating its transportation infrastructure
and not because the United States has not made the necessary investments to its own infrastructure.
www.marcon.com
3
Conclusion The Transportation Infrastructure Summit highlighted the importance of transportation to agriculture and
the importance of reliable infrastructure to transportation. The agriculture transportation system is an interconnected
network of barge, rail, truck, and ocean vessels that together provide the necessary capacity to move agriculture
products to markets and exports. The network is optimized if all modes are strong enough to complement and compete
with one another. Agriculture exports play an important role in the U.S. balance of trade and will continue to do so with
a reliable transportation system. [email protected]
Waterborne Commerce Statistics Center Monthly Tonnage – Internal U.S. Waters
Under U.S. law, vessel operators must report domestic waterborne
commercial movements to the U.S. Army Corps of Engineers. 2013
was an up and down year for the inland river market with low and high
water levels and severe winter weather conditions to contend with
along with a fluctuating market for grain. In the end, shipments for all
commodities on internal U.S. waterways were off about 7.3% from
2012. February 2014’s 32.5 million short tons of commodities carried
on internal U.S. Waterways was down 2.99% from January’s 33.5
million tons and was the lower than February 2013’s tonnage of 35.5
million tons, which had been the lowest since February 2010’s 35.7
million tons. 15.6 million tons of petroleum and chemicals were carried
in February, up 4.00% from January’s 15.0 million tons but down
11.36% from February 2013’s record 17.6 million tons moved.
Even with the slow start this year due to ice conditions, the inland
marine transportation of petroleum and chemicals is expected to
grow in 2014. Owners are reporting their highest utilization rates
and revenues not seen in years as more and more crude oil from
shale is moved to refineries along with the probability of shipping
the millions of gallons of shale gas wastewater to storage and
reprocessing centers across the United States by barge vs. rail and
truck.11.1 million tons of Coal & Coke were hauled, the lowest
tonnage for February since before 2010. 1.87 million tons of Farm
and Food Products shipments were lower than January’s 2.64
million tons, but higher than February 2013’s 1.71 million tons.
According to the Lake Carriers’ Association, significant weather and ice delays and cancelled
cargos limited U.S.-flag cargo movement on the Great Lakes to just 7.1 million tons in December and
as a result, the fleet’s year-end total slipped to 89.2 million tons, a decrease of 0.4% compared to
2012. Iron ore cargos carried in U.S.-flag lakers totaled 43.9 million tons in 2013, a decrease of 3%
compared to 2012. Those cargoes represented 75.2% of all the iron ore moved on the system last
year. Through November, U.S.-flag ore cargos had been just slightly behind 2012’s pace, but the
brutal weather in December slashed shipments to just 4 million tons, a decrease of 21% compared to December 2012.
Coal cargos totaled 18.2 million tons in 2013, an increase of 3.7%, and 74% of all Lakes coal last year. The total would
have been higher, but several coal cargos were cancelled in December. The limestone trade in U.S. bottoms also
registered a slight increase over 2012. Shipments totaled 22.1 million tons, an increase of 1.5%, and the highest
volume since 2008. The 22.1 million tons also represent 80% of the Lakes stone trade. Shipments of cement, salt,
sand and grain were largely in line with 2012. Lake Carriers’ Association represents 17 American companies that
operate 57 U.S.-flag vessels on the Great Lakes that carry the raw materials that drive the nation’s economy: iron ore
and fluxstone for the steel industry, aggregate and cement for the construction industry, coal for power generation, as
well as salt, sand and grain. Collectively, these vessels can transport more than 115 million tons of cargo per year.
Great Lakes St. Lawrence Seaway System’s total calendar year 2013 cargo for Montreal
/ Lake Ontario and the Welland Canal was 37,055 thousand tons, down 5.12% from 2012
with grain (-2.84%), iron ore (-3.48%), coal (-3.08%), dry bulk (-12.07%) and general cargo
(-20.79%) all down. The only cargo showing an improvement over 2012 was liquid bulk up
395 thousand tonnes, or 11.96%, from 3,304 in 2012 to 3,699 thousand tons in 2013.
Total transits were down 4.48% from 4,083 to 3,900 this year.
www.marcon.com
4
The amount of freight carried by the for-hire transportation industry fell 2.8% in January from December, declining for
the second consecutive month, according to the U.S. Department of Transportation’s Bureau of Transportation
Statistics’ (BTS) Freight Transportation Services Index (TSI) released March 12th. The January 2014 index level
(113.6) was 19.8% above the April 2009 low during the most recent recession. BTS reported that the level of freight
shipments in January measured by the Freight TSI (113.6) was 3.5% below the all-time high level of 117.6 in
November 2013. BTS’ TSI records begin in 2000. The December index was revised to 116.8 from 116.5 in last
month’s release. Monthly numbers for all of 2013 were revised slightly. Numbers for previous years were also revised.
Beginning with the April release, BTS improved procedures and refined the TSI methodology. As a result there have
been minor changes in monthly numbers released previously. Documentation will be made available in the near future.
The Freight TSI measures the month-to-month changes in freight shipments by mode of transportation in tons and tonmiles, which are combined into one index. The index measures the
output of the for-hire freight transportation industry and consists of data
from for-hire trucking, rail, inland waterways, pipelines and air freight.
The index for each freight mode declined in January with the largest
decline in trucking. These declines took place during a period of severe
winter weather, which particularly hit the heavily populated parts of the
country. Severe weather can affect the demand for goods to ship as well
as the ability to move goods. The decline in freight TSI took place
despite increases in employment and personal income in January. The
Federal Reserve Board Industrial Production Index declined in January,
with the Construction sector leading the decline. The freight TSI declined
for the second month in a row, the first time it has fallen for two
consecutive months since October 2012. It is at its lowest point since April 2013 but remains higher than in any month
prior to March 2013, except for its previous high of December 2011. After dipping to 94.8 in April 2009, the index rose
by 19.8% in the succeeding 57 months. Freight shipments in January 2014 (113.6) were 19.8% higher than the recent
low in April 2009 during the recession (94.8). The January 2014 level is down 3.5% from the historic peak reached in
November 2013 (117.6). Freight shipments measured by the index were down 2.8%in January compared to the end of
2013. Freight shipments are up 15.2% in the five years from the recession level of January 2009 and are up 5.3% in
the 10 years from January 2004. January 2014 freight shipments were up 1.3% from January 2013.
The Association of American Railroads reported mixed U.S. rail traffic for the month of February 2014, with carload
volume decreasing and intermodal volume increasing compared with February 2013. Intermodal traffic in February
totaled 993,807 containers and trailers, up 1.1% (10,729 units) compared with February 2013, which represents the
biggest carload increases last month included grain, up 12.3% or 8,696 carloads, and grain mill products, up 10.1% or
3,645 carloads. Commodity categories with carload declines
last month included coal, down 3.5% or 15,571 carloads from
February 2013, and primary metal products, down 7.2% or
3,092 carloads. Excluding coal and grain, carloads were down
5,186 carloads or 0.9% in February 2014 over the same month
last year. “It would be nice to be able to separate out the
effects of the harsh winter on rail traffic, but we can’t do that.
We can probably expect improvements in the rail numbers in
the months ahead, assuming that the weather and the
economy cooperate,” said AAR Senior Vice President John T.
Gray. “In the meantime, crude oil has become a significant part
of the railroad business. Railroads know how important it is to
move crude oil safely, and they are committed to continually searching for ways to make this happen.” AAR today also
reported increased rail traffic for the week ending March 1, 2014. U.S. railroads originated 287,294 carloads last week,
up 1.4% compared with the same week last year, while intermodal volume for the week totaled 257,710 units, up 3.4%
compared with the same week last year. Total U.S. rail traffic for the week was 545,004 carloads and intermodal units,
up 2.3% compared with the same week last year. Four of the 10 carload commodity groups tracked on a weekly basis
posted increases compared with the same week in 2013, including: grain, with 19,746 carloads, up 14.3%, and
nonmetallic minerals and products, with 31,793 carloads, up 11.5%. The groups showing a decrease in weekly traffic
were led by metallic ores and metals, with 23,863 carloads, down 5.2%.
www.marcon.com
5
Bunker Prices Worldwide
As back in January, we are back in the “up and down, up
and down” yo-yo mode again for bunker prices, with rising
prices on top of weak charter rates cutting into profits –
especially for those trades where fuel make up 30 – 40%
of operational costs. MGO prices did manage to slide
0.36% in Fujairah to US$ 980.50 per metric tonne, while
increasing 2.1% in Houston to US$ 1,008.50 and up
slightly both in Rotterdam and Singapore to US$ 884.50
and US$ 915.00, respectively. Kirby Corporation’s average
253 towboats operating on inland waterways of the U.S.
average cost per gallon for fuel consumed during fourth
quarter 2013 was US$ 3.26 per gallon, compared to US$
3.11 per gallon during the third quarter and US$ 3.37/gal
during fourth quarter 2012. Year-on-Year the average price
per gallon of fuel consumed during 2013 (avg. 256 boats)
was US$ 3.21 down slightly from US$ 3.24 during 2012
(avg. 245 boats).
According to the Paris-based, International Energy Agency’s “Oil Market
Report”, oil prices edged higher in February with gains in WTI far outpacing ICE
Brent. WTI futures traded above $100/bbl for the first time in five months on
bitterly cold weather and strong refiner demand. Both benchmarks trended lower
again in early March ahead of planned refinery turnarounds, with WTI last trading
at $98.20/bbl and Brent at $108/bbl. Global supplies rose by 600 kb/d in February
to 92.81 mb/d, led by a 500kb/d jump in OPEC crude output. Total non-OPEC
supplies grew by 1.3mb/d in 2013 and are expected to increase by a further
1.7mb/d in 2014, the highest rate of growth since at least the early 1990s, driven
primarily by the U.S. and Canada. Russia, China and Brazil will contribute. The
U.S. Department of Energy said on 12 March that it would sell 5mb of crude from
the Strategic Petroleum Reserve to test capabilities of the reserve system
infrastructure. Deliveries are expected in April.
The U.S. Energy Information Administration reports that North Sea Brent crude oil spot price in February averaged
near $110/bbl for the eighth consecutive month, while West Texas Intermediate crude oil prices increased by $6/bbl
from the previous month to reach $101/bbl. Continued high refinery runs helped reduce inventories at the Cushing,
Oklahoma, storage hub to 32 million barrels, the
lowest level since February 2012, and helped
strengthen WTI prices. The discount of WTI crude oil
to Brent crude oil, which averaged more than $13/bbl
from November through January, fell to $8/bbl in
February. EIA expects the WTI discount to average
$10/bbl in 2014 and $11/bbl in 2015. EIA projects
world petroleum and other liquids supply to increase
by 1.3 million bbl/d in both 2014 and 2015, with most
of the growth coming from countries outside of
OPEC. The Americas, in particular the United States,
Canada, and Brazil, will account for much of this
growth. Projected world liquid fuels consumption
grows by an annual average of 1.2 million bbl/d in
2014 and 1.4 million bbl/d in 2015. Countries outside the Organization for Economic Cooperation and Development
(OECD), notably China, drive expected consumption growth. Non-OPEC supply growth contributes to an increase in
global surplus crude oil production capacity from an average of 2.1 million bbl/d in 2013 to 3.9 million bbl/d in 2015.
www.marcon.com
6
Shipyard News & Newbuildings
Following is a list of pushboats and towboats on order at U.S. shipyards per Marine Log and Colton Co. as of February
12, 2014. The list shows 39 boats on order, a one vessel increase since our last report in November. Per Marine Log,
there are eight boats on order for the U.S. Navy from the Canadian shipyard, Metalcraft Marine in Kingston, Ontario.
Vessel Type
Customer
Name
Description
Delivery
1,350 hp
2014
A&B Industries, Amelia LA
Towboat
Blessey Marine
Brenda Ann Cacioppo
Towboat
CLM Towing
Capt. Thomas Paul
Towboat
Devall Towing
Dahli Brooke
2014
1,800 hp
2014
Central Gulf SY, New Iberia LA
Towboat
Settoon Towing
2013
Towboat
Settoon Towing
2013
Eastern Shipbuilding, Panama City FL
Towboat
Florida Marine
2,600 hp
2013
Towboat
Florida Marine
2,600 hp
2013
Towboat
Florida Marine
2,600 hp
2013
Towboat
Florida Marine
2,600 hp
2013
Towboat
Florida Marine
2,600 hp
2013
155-ft.
13-Dec
13-May
Gulf Island, Houma LA
Towboat
Hunter Marine
Horizon Shipbuilding, Bayou La Batre AL
Pushboat
Corps of Engineers
114-ft.
Towboat
Florida Marine
120-ft.
13-Jul
Towboat
Florida Marine
120-ft.
13-Aug
Towboat
Canal Barge
74-ft.
12-Dec
Towboat
Canal Barge
74-ft.
14-Mar
Towboat
Florida Marine
140-ft.
13-Sep
Towboat
Florida Marine
140-ft.
13-Oct
NewSouth Marine, Greenville MS
Towboat
AEP River Ops.
2012
Towboat
AEP River Ops.
2012
Towboat
AEP River Ops.
2012
Nichols Boats, Greenville MS
Towboat
Magnolia Marine
Emily Davis
3,000 hp
Towboat
Magnolia Marine
Kathy Azlin
3,000 hp
14-Jun
Towboat
Magnolia Marine
Margaret Ann
3,000 hp
14-Dec
Towboat
JANTRAN
4,000 hp
14-Jul
Towboat
JANTRAN
4,000 hp
14-Dec
Towboat
Magnolia Marine
3,000 hp
2015
Deborah Miles
13-Dec
Raymond Assoc, Bayou La Batre AL
Towboat
Blessey Marine
2,000 hp
2013
Towboat
Carline Company
Cairo
2,000 hp
13-Sep
Towboat
SCF Marine
SCF Mariner
2,400 hp
2014
Towboat
SCF Marine
SCF Vision
2,400 hp
2014
Towboat
SCF Marine
SCF Safety Spirit
2,400 hp
2014
Towboat
SCF Marine
SCF Leader
2,400 hp
2014
Towboat
SCF Marine
SCF Endeavor
2,400 hp
2014
3,000 hp
2013
13-Mar
Sneed Shipbuilding, Orange TX
Towboat
Blessey Marine
Steiner Shipyard, Bayou La Batre AL
Towboat
Southern Towing
2,000 hp
Towboat
Southern Towing
2,000 hp
13-Apr
Towboat
Southern Towing
3,200 hp
13-Sep
Towboat
Southern Towing
3,200 hp
13-Dec
30 ft.
2012
Metalcraft Marine, Kingston, Ontario, Canada
Towboat
U.S. Navy
8 boats
www.marcon.com
7
Trinity Industries of Dallas, Texas, reported net income attributable to Trinity
stockholders of $112.8 million for the fourth quarter ended December 31, 2013.
Net income for the same quarter of 2012 was $71.3 million. Revenues for the
fourth quarter of 2013 increased 24% to $1.3 billion compared to revenues of
$1.0 billion for the same quarter of 2012. “I am pleased with our strong financial results for the fourth quarter and our
overall performance during 2013,” said Timothy R. Wallace, Trinity’s Chairman, CEO and President. “We achieved a
number of key financial milestones, reporting record revenues, net income and earnings per share for both the fourth
quarter and the full year. I am very proud of our people, whose capabilities and hard work enabled us to realign a
portion of our manufacturing capacity to serve customers for products in the oil, gas, and chemical industries. During
2013, we announced two transactions with institutional investors desiring to invest in a portfolio of leased railcars, RIV
2013, a $1 billion railcar investment partnership, and Element Financial, through a $2 billion program agreement. I
expect these transactions will continue to create value for the Company." Mr. Wallace added, “During 2014, we will
continue to invest resources to position our company to pursue opportunities for infrastructure-related products that
support the growing needs in the energy, chemical, transportation, and construction industries. We have a great deal
of positive momentum occurring within Trinity.” The Inland Barge Group reported revenues of $142.9 million
compared to revenues of $165.4 million in the fourth quarter of 2012. Operating profit for this
Group was $27.0 million in the fourth quarter of 2013 compared to $31.2 million in the fourth
quarter of 2012. The decrease in revenues and operating profit compared to last year was due
to lower delivery volumes and a change in product mix during the fourth quarter of 2013
compared to the same quarter last year. The Inland Barge Group received orders of $96.5
million during the quarter, and as of December 31, 2013 had a backlog of $429.6 million
compared to a backlog of $476.0 million as of September 30, 2013.
AEP River Operations of Chesterfield, Missouri is one of the many companies ordering newbuild
double hull inland tank barge tonnage. Historically operating in the dry cargo arena for some 41
years, the company took delivery of its first newbuild double-hull inland tank barge in January
2014. This is the first of 20 units which have reportedly been ordered by the company. Each AEP
barge will have a capacity of 11,000 barrels and measure 200’ long and 35’ wide, with external
frames, 6-pound press tank tops, vapor recovery and Tier III John Deere engines. "Entering the
liquid cargo market means we can offer our customers a more complete range of services," said
Keith Darling, president, AEP River Ops. "We are bringing the same commitment to safety and
environmental performance to the transport of liquid
products that we've offered for dry commodities for the
last 41 years.” AEP River Operations' liquid barge fleet is
being constructed by American Commercial Lines' shipyard unit Jeffboat,
Jeffersonville, Indiana. The shipyard has reopened a production line and has
been hiring additional workers to meet increasing tank barge demand.
According to Mr. Darling, the new liquid barges will exceed safety standards
commonly found on 10,000 barrel barges. AEP River Operations reportedly
began transporting liquid petroleum product as of 20th, February.
The Saigon Shipbuilding & Marine Industries One Member Co, Ltd. (Saigon
Shipmarin) has completed construction of a 60m by 11m LPG carrier. With capacity for
1,400m3 in two tanks the vessel’s hull has a 4-meter molded depth and a 2.6-meter
draft. Designed by a related company to Saigon Shipmarin, the vessel, to be named
“Faco”, is owned by the F.A. Joint Stock Company. Being built to the Vietnam
Register Rules and National Inland Regulations, the vessel will be classed for near
shore and river operations. A pair of Cummins
855 diesels delivering 400HP each provide propulsion power. Two Cumming
6C engines power 120kW generator sets. This is the first vessel built by the
yard to this design but it is anticipated that this may well be the first of a
growing class. Saigon Shipmarin is a member of SBIC (Shipbuilding Industry
Corporation) and is under the control of the Vietnam Ministry of Transport. The
yard, located at Ho Chi Minh City, operates as a new building and ship repair
facility. The yard’s products include OSVs, tugs boats, LPG tankers, and
passenger vessels. (Article and photos courtesy of Cummins Hotips #719 December 2013.)
www.marcon.com
8
Jensen Maritime, Crowley Maritime Corp.'s Seattle-based naval architecture and marine engineering company, has
been awarded a contract to design some of the first LNG bunker barges in the U.S. for LNG America LLC, a Houstonbased LNG fuel supply and distribution company. LNG America has an agreement in principle with Cheniere Energy
to secure LNG from the Sabine Pass LNG facility in Cameron Parish, Louisiana, and says it will have the capability to
distribute LNG in the greater U.S. Gulf Coast region by the end of 2015 and will expand to other regions as commercial
agreements are completed. LNG America will own or control the logistics infrastructure, including LNG bunker vessels,
tanker trucks, storage, and loading facilities, necessary to deliver highly reliable, cost competitive LNG to marine and
terrestrial customers. Currently no LNG bunkering barges are in operation in American waterways and these vessels
will be among the first to be developed and built, marking a significant
step in LNG America's build-out of LNG bunkering infrastructure along the
U.S. Gulf Coast and in delivering a new clean fuel to the maritime
industry. The vessels, which are expected to deliver in late 2015, have an
initial planned capacity of up to 3,000 cubic meters of LNG. Once in
operation, the bunker barges will serve the dual purpose of moving LNG
from LNG America's Louisiana supply source to coastal-based storage
and distribution terminals and in directly bunkering large ships. "Through
LNG America's LNG bunkering initiative, we plan to serve and facilitate
the growing marine demand for LNG," said Keith Meyer, CEO of LNG
America. "LNG America sees the demand for marine LNG to be robust as long as LNG can be made available to the
maritime industry on a reliable, dependable and cost-competitive basis. Our mission is to deliver competitively priced
LNG as fuel where needed, when needed and in the quantity needed." "The significance of this agreement is not only
incredible news for the marine industry, which struggles with whether to develop LNG infrastructure or vessels first, but
also for companies along the U.S. Gulf that hope to replace their traditional vessels with cleaner, more efficient LNGpowered ones," said Jensen's Johan Sperling, vice president. "We are thrilled to be working with LNG America in the
development of its marine infrastructure and also in providing a green fuel source to this important region. Jensen is on
the leading edge when it comes to LNG vessel design and we look forward to serving LNG America and other
customers with this valuable service." Jensen first produced prototype designs for LNG vessels in 2008. Additionally,
Jensen has developed designs for a 100’ x 40’ LNG tug and is working on several other prototype design LNG bunker
vessels, harbor tugs, ATBs, containerships and tankers, along with inland vessels for a variety of customers in the U.S.
LNG America was formed last July to develop LNG distribution infrastructure that serves not only the marine market
but the burgeoning use of LNG in the oil and gas, rail, mining and heavy-duty trucking markets as well. These markets
have emerged due to the fuel's price competitiveness resulting from the abundant U.S. natural gas reserves.
The last two months of 2013 saw the first vessels for the massive Hidrovias do
Brasil project taking shape. This project will ultimately see a large fleet of push
boats and barges in service, moving iron ore from Vale's Corumba mine, in SW
Brasil, 2,500km to tidewater near Buenos Aires. The Hidrovias contract calls for
the construction and operation of eight powerful river push boats and 144 hopper
barges. The barges will be operated in 4 x 4 convoys of 16 to transport the iron
ore in lots of approximately 40,000 tonnes per shipment down the waterway. The
operation will be a 24 hours per day, 11 months per year operation with minimum
downtime. This fleet of highly specialized push boats and barges have all been designed by Robert Allan Ltd. of
Vancouver, Canada, building on that company's extensive experience designing extreme shallow draft vessels for the
Canadian northland. The barges, each measuring 61 x 15 x 4.27m, are conventional hopper Mississippi style barges,
designed to maximum allowable convoy dimensions, and must carry the required 2,500T deadweight with limited draft
due to restricted under keel clearance. There is a combination of "box" shaped barges for mid-convoy and rake-ended
barges for the ends. A rigorous design exercise was required in order to minimize the steel weight in the barge
structure without sacrificing the strength required for this demanding service.
Finding a shipyard with the capacity to build and deliver 128 barges in the
required time frame was also a challenge, but investigations soon led to the
extensive facilities of ZPMC in China. One of the major attractions of this facility,
most noted for their extensive production of large container cranes, was the
availability of their own semi-submersible ocean transporter fleet which could be
used to deliver the barges. The photo shows the first shipment of 32 barges
arriving near Buenos Aires, ready for offloading. Robert Allan Ltd. provided
construction overseeing services for the barge fleet on behalf of the Owners.
www.marcon.com
9
The last batch of barges will also deliver a 54m x 25.2m 1,600MT floating dry
dock, also built at ZPMC and designed by Robert Allan Ltd., for use by
Hidrovias do Brasil in servicing their new fleet of push boats and barges. An
additional 16 barges are currently under local fabrication at CIE S.A. in
Asuncion, Paraguay. The push boats, designated as the RApide 4500 Class,
are limited to 2.1m draft in the dry season and 2.4m in the wet season.
Contract for construction of the eight push boats was awarded to Uzmar of
Turkey, and the first two vessel of class are currently completing Owner
acceptance trials. The biggest challenge in the design was the necessity to be
able to stop the entire convoy in less than 2.5 flotilla lengths when operating
fully laden and at full speed running downstream. Extensive analysis and
testing was performed to
ensure this capability, as well
as developing a suitable hull
form to meet pushing, braking
and maneuvering requirements, while achieving the fuel capacity,
draft restrictions and endurance required for the entire operation. Hull
form optimization studies and fuel consumption analyses were
performed, and Robert Allan Ltd. worked closely with major
equipment vendors to ensure the optimum propulsion system. CFD
analysis was performed to verify the fuel consumption model,
optimize hull form and efficiency, and to verify crash stop
requirements (image left).
Further scale model testing at the Vienna Model Basin was conducted to
verify results of the CFD analysis. These high-performance push boats,
measuring 46.5m x 16.5m x 4m, are propelled by a state of the art
diesel-electric propulsion system, with three main diesel generator sets
providing 3 x 1,710ekW of power to 3 x 1,600kW motors, each driving a
Schottel SRP 1215 Z-drive with nozzle modified for shallow draft
operation. The major electric components (AFE drives, propulsion
motors, generators, etc.) are ABB components, supplied by Elkon, while
the generator engines are three Wärtsilä 9L20, medium speed engines,
each producing 1,800bkW at 1,000RPM. These push boats will run on
HFO, with the ability to operate on MDO if needed. Each push boat has
a total fuel capacity of 500m3 of HFO and 30m3 of MDO, and a ballast
capacity of 400m3. The potable water capacity of 34m3 is supplemented
by two onboard flash evaporator units. The vessel is outfitted for a
maximum complement of 18 persons, with six single cabins and six
double cabins spread over two deckhouse levels. Above a large
wheelhouse with unobstructed 360° views allows operators excellent
visibility of the barge convoy ahead as well as supervising barge
connection work
taking place on the
raised forecastle
deck. On trials the push boat achieved bollard pull and free
running speed values exceeded contract requirements and as
might be expected, the maneuverability, with triple Z-drives was
exceptional. It is expected, in the Q1/2014, the first two push
boats will be loaded onto a heavy lift ship for the trans-Atlantic
voyage to Uruguay. The other six push boats will follow, with all
delivered to Uruguay by Q3/2015. Ore movements will start in
October 2014 to keep up with the global demand for iron ore.
(Article and images courtesy of Robert Allan Ltd.)
www.marcon.com
10
Recent Corporate News
Kinder Morgan recently reconfirmed its 2014 financial dividend and
distribution guidance for Kinder Morgan, Inc., Kinder Morgan Energy Partners,
L.P., Kinder Morgan Management, LLC and El Paso Pipeline Partners, L.P.,
and at KMP expects to generate distributable cash flow per unit nicely in
excess of its budget targets. Chairman and CEO Richard D. Kinder stated,
“2014 is off to a great start and the future outlook for the Kinder Morgan companies remains very bright. We have
identified approximately $14.8 billion in expansion and joint venture investments that we are confident will contribute to
our growth, and we are pursuing customer commitments for many more projects. Since our 2014 budget was
announced in early December of 2013, KMP has completed an approximately $962 million acquisition of crude oil
tankers that are engaged in marine transportation for U.S. domestic trade through the Jones Act, and Tennessee Gas
Pipeline completed a successful binding open season for incremental, north to south natural gas transportation
capacity totaling 500,000 dekatherms per day, which will move gas from the Marcellus and Utica shales to multiple
delivery points on the Gulf Coast.” Kinder Morgan owns and operates a large, diversified portfolio of primarily feebased energy assets across North America that historically have produced substantial cash flow in virtually all types of
market conditions. KMP expects to exceed its distributable cash flow per unit target primarily as a result of the positive
impact of the previously noted tanker acquisition, TGP’s incremental north to south firm transportation contracts, which
are expected to begin service in April 2014, and additional long-term contracts on its El Paso Natural Gas pipeline
system. “We continue to see exceptional growth opportunities across all of KMP’s business segments, including the
need for more midstream infrastructure to move and store oil, gas and liquids from the prolific shale plays in the United
States and the oil sands in Alberta, along with increasing demand for CO2. In particular, there seems to be strong and
growing demand for secure, long-term natural gas transportation capacity,” Kinder said.
Excelerate Energy has filed its formal application with the Federal Energy Regulatory
Commission (FERC) requesting authorization to construct, own, and operate the first
floating liquefied natural gas (FLNG) export facility in the U.S. “The filing represents a
major milestone and further strengthens project momentum as we head towards a
final approval,” stated Rob Bryngelson, President and CEO of Excelerate Energy, “We
continue to make strong progress on all fronts and hope to make a final investment
decision within the next 12 months.” Pending FERC approval, the facility is expected
to be operational in fourth quarter 2018. Excelerate Energy has been granted permission to export to free-trade
agreement (FTA) nations by the U.S. Department of Energy (DOE) and has filed for non-FTA approval in October
2012. Excelerate is fourth in order on the list of applicants the DOE is currently processing. Sited along the coast south
of Point Comfort, Texas, the facility will comprise of a permanently moored floating liquefaction storage and offloading
(FLSO) unit with 4.4 million tons per annum (MTPA) of production capacity and 250,000m3 of LNG storage, and a fully
integrated, on-shore gas processing plant. The facility will interconnect to the region’s existing pipeline system to
obtain natural gas and liquefy it onboard the unit. The project will be designed and permitted with the potential for
expansion and the addition of a second FLSO over time for a total production capacity of up to 10 MTPA.
The U.S. Department of Energy (DOE) February 11, 2014 issued a conditional
authorization that allows Sempra Energy subsidiary Cameron LNG to export
domestically produced liquefied natural gas from its proposed liquefaction facilities in
Hackberry, Louisiana to countries that do not have a free trade agreement with the U.S.
Subject to environmental review and final regulatory approval, authorization conditionally
approves Cameron LNG to export up to 12 million tons per annum (Mtpa), or approx. 1.7
billion cubic feet per day, of natural gas for 20 years commencing on the date of first
export. "Today's authorization by the DOE represents a critical milestone in the
development of our export facilities," said Debra L. Reed, chairman and CEO of Sempra
Energy. "Exporting natural gas will lead to the creation of thousands of new jobs and
economic growth here in the U.S. and enable our partners to deliver domestically produced natural gas to our allies
abroad and to the world marketplace." Cameron LNG also received notice on 10th January that the Federal Energy
Regulatory Commission issued the draft environmental impact statement to construct and operate the liquefaction
facilities. Cameron LNG is the first liquefaction project pending review before FERC to have reached this significant
milestone in the permitting process. "Our progress in permitting and financing our project, along with successful
execution of commercial and tolling agreements puts us on track to be one of the first LNG export projects under
construction in 2014 and in full commercial operation in 2019," said Octavio M.C. Simoes, president of Sempra LNG.
www.marcon.com
11
Kirby Corporation of Houston, Texas’ record net earnings attributable to Kirby for the
fourth quarter ended December 31, 2013 of $64.3 million, compared with $57.9 million for
the 2012 fourth quarter. Consolidated revenues for the 2013 fourth quarter were $568.4
million compared with $512.6 million reported for the 2012 fourth quarter. Joe Pyne,
Kirby’s Chairman and CEO, commented, “Our inland and coastal tank barge fleets
continued to maintain high equipment utilization levels and favorable pricing trends during
the fourth quarter, but our results were somewhat affected by high delay days associated
with winter weather conditions. Our land-based diesel engine services business remained challenged as excess
pressure pumping horsepower continued to impact that market. We do anticipate some improvement in the land-based
market later in 2014.”
Marine transportation revenues for the 2013 fourth quarter were $434.6 million compared with $381.0 million for the
2012 fourth quarter. Operating income for the 2013 fourth quarter was $107.8 million compared with $89.8 million for
the 2012 fourth quarter. The inland marine transportation petrochemical, black oil and refined products markets
remained consistently strong during the 2013 fourth quarter, in the 90% to 95% equipment utilization range, with
favorable pricing trends. Inland operations were negatively impacted by winter weather conditions during November
and December that resulted in increased delay days compared with the 2013 third quarter and 2012 fourth quarter.
The coastal marine transportation markets reflected continued strong equipment utilization in the 90% range with
favorable short-term and long-term contract renewals and higher spot contract pricing. Demand remained firm for the
regional distribution of refined products, crude oil and gas condensate, and the movement of petrochemicals. Progress
continued in expanding the coastal customer base to inland customers with coastal requirements. The coastal
operations were negatively impacted by market seasonality and winter weather conditions during November and
December. The marine transportation operating margin for the 2013 fourth quarter was 24.8% compared with 23.6%
for the 2012 fourth quarter.
Kirby Marine Transportation Performance Measurements
2013
Ton Miles (in millions)
Revenue/Ton Mile (cents/tm)
Towboats operated (average)
Delay Days
Avg. cost/gal. fuel consumed
Tank barges active
Coastwise & local tank barges
Coastwise dry cargo barges
Inland Bbl Cap.(mill) active
Coastwise & local tank barges Bbl Cap.
2011
2012
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
2,869
10
253
1,985
$3.26
861
72
8
17.3
6
2,904
9.9
256
1,289
$3.11
855
72
8
17.2
6
2,969
9.7
262
2,520
$3.22
863
79
8
17.3
6.2
3,012
9.3
256
2,049
$3.25
844
82
7
16.9
6.3
2,957
9.5
253
1,479
$3.37
841
81
8
16.7
6.3
2,791
9.8
246
1,244
$3.10
853
53
4
16.9
3.7
3,194
8.3
239
1,164
$3.35
818
57
4
16.4
3.9
3,282
8.1
242
2,471
$3.16
806
58
4
16
3.8
3,392
7.7
239
1,721
$3.14
819
59
4
16.2
3.8
3,552
7.6
244
1,111
$3.27
837
57
4
16.3
3.8
3,241
7.9
247
1,964
$3.25
837
3,229
7.2
230
1,981
$2.65
829
16.4
16.1
Ton Miles indicate fleet productivity by measuring the distance in miles a loaded tank barge is moved. Example: A typical 30,000 barrel tank
barge loaded with 3,300 tons of liquid cargo is moved 100 miles, thus generating 330,000 ton miles. Marine transportation revenues divided
(3)
by ton miles. Delay days measures lost time incurred by a tow (tow boat & tank barges) during transit including transit delays caused by
weather, lock congestion & other navigational factors.
Commenting on the 2014 first quarter and full year market outlook and guidance, Mr.
Pyne said, “Our earnings per share guidance for 2014 is $4.75 to $4.95 compared
with $4.44 for 2013 that included a $.20 per share credit to the United contingent
earnout liability. Our 2014 guidance assumes continued strong demand across all
marine transportation markets with equipment utilization levels remaining in the 90%
to 95% range with continued favorable pricing trends…. At the present time, we
believe the major factors between our high and low end 2014 guidance are our
coastal marine transportation market, its equipment utilization levels and pricing
trends….” Mr. Pyne continued, “Our 2014 capital spending guidance is currently in
the $200 to $210 million range, including approximately $45 million for the
construction of 37 inland tank barges and $45 million in progress payments on the
construction of an 185,000 barrel coastal articulated tank barge and tugboat unit
scheduled to be placed in service in mid-to-late 2015. The balance of $110 to $120
million is primarily capital upgrades and improvements to existing … facilities.”
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12
Seacor Holdings Inc.’s net income for fourth quarter ended December 31, 2013
was $8.4 million, compared to $30.3 million the preceding quarter ended September
30, 2013. Fourth quarter results included a reduction in gains on equipment sales,
costs and lost revenues associated with the drydocking of one of Seacor's tankers,
a seasonal reduction in liftboat fleet activities and equity losses relating to the
structural failure of an Argentinian terminal facility. These reductions were partially
offset by higher barge pool activity levels arising from the seasonal harvest.
2013
2012
2011
31-Dec
30-Sep
30-Jun
31-Mar
31-Dec
30-Sep
30-Jun
31-Mar
31-Dec
30-Sep
30-Jun
1,405
74
20
32
1
1,409
75
20
31
1
1,413
75
20
31
1
1,434
80
20
31
1
1,444
81
20
31
1
1,444
80
20
31
1
1,453
78
20
31
1
1,479
77
20
30
1
1,496
77
20
31
1
1,489
79
20
31
1
1,492
80
26
31
1
31-Mar
Fleet Count:
Inland river dry cargo barges
Inland river liquid tank barges
Inland river deck barges
Inland river towboats
Dry-cargo vessel
1,497
80
26
32
1
Inland River Services - Income from operations was $12.3 million on operating revenues of $65.4 million in the fourth
quarter compared with operating income of $4.8 million on operating revenues of $52.7 million in the preceding
quarter. Operating results from the dry cargo barge pool were $9.9 million higher primarily due to higher activity levels
as a result of the seasonal harvest in the fourth quarter. The increase was partially offset by a $1.2 million reduction in
operating results in the liquid unit tow and 10,000 barrel tank barge operations primarily due to out-of-service time and
costs associated with regulatory inspections for liquid tank barges. Operating results from terminal operations were
$0.8 million lower primarily due to lower throughput at Gateway Terminals. Shipping Services (formerly Marine
Transportation Services and Harbor and Offshore Towing Services) - Income from operations was $5.2 million on
operating revenues of $51.4 million in the fourth quarter compared with operating income of $10.1 million on operating
revenues of $48.2 million in the preceding quarter. Operating results for tanker operations were $6.4 million lower
primarily due to lower operating revenues of $1.3 million for 26 out-of-service days and higher operating expenses of
$4.8 million for drydocking. Seacor has not scheduled any product tanker drydockings in 2014. Operating results for
harbor towing and bunkering included an increase in harbor tug traffic of $1.8 million and lower drydocking expenses
of $1.0 million, offset by reduced gains on asset dispositions of $3.1 million. Operating results for liner and short sea
transportation were $1.3 million higher primarily due to a seasonal increase in cargo shipping demand.
As of December 31, 2013, Seacor's unfunded capital commitments were $547.0
million and included: 16 offshore support vessels for $112.7 million; 80 inland river
dry cargo barges for $40.2 million; six inland river tank barges for $4.7 million; five
inland river towboats for $4.7 million; three U.S.-flag product tankers for $374.1
million and other equipment and improvements for $10.6 million. Subsequent to
December 31, 2013, Seacor committed to purchase one U.S.-flag articulated tugbarge and additional equipment for a total of $94.1 million.
Touax reported consolidated revenue for 2013 was €349.3 million compared with
€358 million in 2012, down 2.4% (-1.9 % at constant exchange rates and excluding
changes in the consolidation perimeter). Sales rose by 3% due to syndications in
the 4th quarter in the Shipping Containers division, in spite of a fall in sales of
modular buildings and river barges compared with 2012. Sales of shipping
containers increased thanks to the dynamism of the market in a context of growth
in global flows. Business was up 14.8% in Q4 2013 compared with Q4 2012. River
Barges: The division’s revenue amounted to €23.8 million (down 7.9%) due to fewer
sales than in 2012. Leasing revenues continued to increase due to the bringing into
service of new barges in South America and in spite of the sale of barges in the USA.
Business in the Rhine basin suffered due to the difficult economic situation. Revenue
outside Europe represented 39% of the division's revenue at the end of December 2013.
The leasing business continues to develop in South America where Touax is the market
leader for river barge leasing. The business in Europe is slightly improving.
www.marcon.com
13
Martin Midstream Partners L.P.’s net loss for the fourth quarter of 2013 of $39.3 million,
compared to net income for the fourth quarter of 2012 of $7.2 million. Results for the fourth
quarter of 2013 were negatively impacted by the $54.1 million non-cash charge related to
Martin's share of an impairment of the Monroe Gas Storage Company LLC assets at Cardinal
Gas Storage Partners, LLC, an equity method investment of the Partnership. Net income from
continuing operations for the fourth quarter of 2012 was $9.7 million. Martin reported a net loss
from discontinued operations for the fourth quarter of 2012 of $2.5 million. Martin reported no
income from discontinued operations for the fourth quarter of 2013. Revenues for the fourth
quarter of 2013 were $482.0 million compared to $454.1 million for the fourth quarter of 2012.
Ruben Martin, President and CEO of Martin Midstream GP LLC, the general partner of Martin Midstream Partners,
said, "I am pleased with our performance in the fourth quarter of 2013 and the Partnership's recovery from our
seasonally weak third quarter…. Looking at our fourth quarter by segment, and starting with Terminalling and Storage,
in late November 2013, we put in service a newly constructed dock facility dedicated solely to our Corpus Christi Crude
Terminal and its customer. With the addition of our second docking system and related infrastructure, all of which was
completed ahead of schedule, we more than doubled our crude loading capacity. Additionally, as increased Eagle Ford
Shale crude oil production drives terminal throughput increases, we are well-positioned with additional tankage under
construction. Once fully completed in the second quarter of this year, we expect year over year cash flow from the
terminal to increase by over 25%. Partially offsetting the strong results surrounding our Corpus Christi assets were
lower than forecasted through-put at the Smackover refinery and weaker than forecasted lubricant sales within our
Martin Lubricants platform. However, we continue to view Martin Lubricants as a solid growth platform for the
Partnership and are currently exploring several growth initiatives.”
"Finally, our Marine Transportation segment posted solid performance during the fourth quarter and finished the year
ahead of the forecasted plan. Both our inland and offshore fleets had near full utilization. The inland fleet in particular
had one of its best quarters since 2010. As we forecasted, the incremental demand for liquids transportation
connected to shale play off-take was strong during 2013. Accordingly, the
Partnership has been able to rely on the stability of cash flow from the Marine
Transportation. For 2014, however, we are forecasting a slight reduction in cash flow
compared to 2013 for this segment. This is primarily attributed to a disproportionate
amount of regulatory dry-docking that will include our entire offshore marine fleet.
Looking ahead, we have multiple organic growth platforms and projects across our
business segments that should render continued near-term and long-term
distribution growth. Additionally, we continue to pursue accretive acquisitions."
Martin’s marine transportation revenues increased by 12% from $88.815 million
2012 to $99.510 million 2013. An $11.2 million increase in inland revenues is
primarily attributable to $8.4 million from the Talen's acquisition and $3.1 million from the Florida Marine Assets.
Revenue from offshore operations increased $0.4 million due to an increase in utilization. Ancillary revenue, primarily
fuel, decreased $1.0 million. Martin has a fleet of 54 inland marine tank barges, 29 inland push boats and four offshore
tug barge units that transport petroleum products and byproducts domestically, coastwise and along the inland
waterways system, and internationally, including the Caribbean, Central America, and South America. Martin has
invested significantly to modernize its fleet. As a result, the average age of its vessels is 19 years.
NuStar Energy’s fourth quarter net loss applicable to limited partners of $368.3
million compared to a net loss applicable to limited partners of $21.2 million
reported in the fourth quarter of 2012. Fourth quarter 2013 results include $403.6
million of adjustments, primarily non-cash charges associated with the write-down
of asset values and the value of goodwill assigned to several of the company’s
terminal facilities. Fourth quarter 2012 results included $41.5 million of expense items related primarily to hedge losses
recorded following NuStar’s decision to sell the San Antonio refinery in December 2012, as well as a handful of
cancelled capital projects. “Absent the impact of several non-cash adjustments, our fourth quarter 2013 results in both
our fee-based pipeline and storage segments were higher than last year’s fourth quarter,” said Barron. “The
completion of several internal growth projects in these segments contributed to the improved fourth quarter results. I
am also happy to note that our fuels marketing segment results were higher than last year’s fourth quarter as well.”
www.marcon.com
14
Ultrapetrol (Bahamas) Limited recorded total revenues for fourth quarter of 2013
of $99.0 million as compared with $86.3 million in the same period of 2012.
Adjusted net loss for the fourth quarter of 2013 was $(7.4) million, as compared
with net loss of $(13.4) million during the same period of 2012. Fourth quarter 2013
adjusted net loss excludes the effect of a $0.1 million gain for deferred taxes on
unrealized foreign exchange losses on U.S. dollar-denominated debt of Ultrapetrol’s Brazilian subsidiary in its Offshore
Supply Business and a $0.1 million gain related to the sale of dry barges which were subsequently leased back to
Ultrapetrol. Before adjusting for these effects, the recorded total net loss was $(7.2) million.
Felipe Menéndez, Ultrapetrol's President and Chief Executive Officer, stated, "Over the course of 2013, we
accomplished every objective that we had set for the year, enabling Ultrapetrol to further strengthen its balance sheet,
earnings power and future prospects. In terms of our balance sheet strength, we consolidated our financial position by
prepaying our $80.0 million 2017 convertible bond, placed a new $225.0 million note due 2021 and prepaid the
existing $180.0 million notes due 2014…." Mr. Menéndez continued, "In
2013, we achieved our goal of constructing 58 barges for third parties at our
yard (the largest third party yearly delivery so far) and, while we have
committed to further third party constructions in 2014, we also have a
robust plan to build barges for our own river fleet. Our River Business in
2013 experienced favorable climatic conditions, which led to normal crop
levels and increased volumes over those transported in 2012. We are
pleased that the average contracts of affreightment expiring in 2013 were
renewed at increased rates and that we successfully entered into new longterm agreements to time charter part of our fleet to Vale, which will stabilize
the future earnings of our river fleet and, together with our new iron ore transshipment facility, should contribute
significantly to our EBITDA. Our Ocean Segment produced a contribution to our gross profit of approximately $11.1
million in 2013, and the time charter rates for existing contracts were renewed at increased levels." Mr. Menéndez
concluded, "With most of our earlier investments already producing substantial results and a firm financial structure in
place, we are in a very strong position to capitalize on the growth opportunities that lie ahead."
The River Business volumes in the fourth quarter of 2013 remained practically unchanged as compared with the same
period of 2012. Fourth quarter 2013 River Business segment adjusted EBITDA was $0.4 million versus a loss of $(0.8)
million in the same period of 2012, representing a $1.2 million increase. Results for the fourth quarter of 2013
demonstrate the effect of a better cargo mix as well as the sale of a larger number of barges manufactured in
Ultrapetrol’s shipyard to third parties. According to the latest United States Department of Agriculture (USDA)
estimates, the soybean crop in Paraguay for 2013 was 8.3 million tons, which is 4.3 million tons, or 105% greater than
the USDA's estimate for the 2012 crop. Argentina, Brazil, Bolivia, Paraguay and
Uruguay are estimated to account for approximately 54% of world soybean
production in 2013, as compared to 30% in 1995. Ultrapetrol believes these figures
are a sign of the strength of the long-term growth prospects of the agricultural
sector along the Hidrovia, where the seeded area is expected to continue to grow,
fostered by the strong prices of soybean and other agricultural commodities. This
steady long-term growth trend represents an important demand driver for
Ultrapetrol's River Business. In addition, iron ore production in the three mines
connected with the river system has also increased substantially in the last
decade. As a result of this promising growth trajectory, Ultrapetrol has decided to
build two 6,000- and two 7,250BHP new, state-of the- art, shallow-drafted, heavy
fuel consuming pushboats to add to its fleet, the first of which is expected to enter
service in 2015. Notwithstanding its newbuild program for pushboats, Ultrapetrol has continued to install its new
engines that will convert a substantial portion of its line pushboats from diesel to heavy fuel consumption. The seventh
re-engined pushboat is expected to commence operation within the first half of 2014. This program has demonstrated
its potential to reduce fuel expense and to increase both tow size and navigation speed, which Ultrapetrol believes will
enhance its EBITDA margins in the future. During the fourth quarter of 2013, Ultrapetrol’s Punta Alvear barge-building
facility continued with the production of barges for third parties and has secured an order to build an additional set of
barges for a non-related third party. Including this order, as well as the barges built for Ultrapetrol’s own fleet, it
expects to have its yard fully contracted into the second quarter of 2014.
www.marcon.com
15
Featured Listings For Sale Direct from Owners
File: TP42132 Push Boat - 132.0' loa x 30.0' beam x 10.8' depth. Built in 1952 by Nashville
Bridge, TN. Rebuilt: 2012. U.S. flag. GRT: 369. Main Engines: 2 x CAT 3516BT Tier I total
4,000BHP. Last Overhauled: 2008. 2 - FP prop(s). Kort nozzle(s). Fresh overhaul. Genset(s):
2 - 99kW (new 2006). Air Conditioned. Galley. Steel hull push boat. Repowered / renovated
2006 and 2012. Good condition. U.S. Coast Guard sticker expires 2015. Keen Seller and
inviting offers. Contact Marcon for price guidance. U.S. Gulf Coast.
File: TP27100 Push Boat - 100.0' loa x 30.0' beam x 8.4' depth. Built in 1958 by
Superior Boat Works; Greenville. Rebuilt: 2006. U.S. flag. GRT: 292. FO: 34,954g. FW:
18,000g. Main Engines: 2 x EMD 12-645C total 2,400BHP. Last Overhaul: 2006. 2 - 70"
x 63" 4-blade/ea props. Genset(s): 2 - 100kW / Detroit. Quarters: 8 berths. Air
Conditioned. Shallow draft, twin screw pushboat. Two steering & four flanking rudders.
Height of eye 30'. Replaced wheels, rudders, bushings, shafts in July of 2006 at
docking. U.S. Coast Guard sticker exp. 2015. U.S. Gulf Coast.
File: TP24101 Push Boat - 100.0' loa x 30.0' beam x 9.6' depth. Built in 1969 by Superior Boat Works Inc. U.S. flag.
GRT: 323. Main Engines: 2 x CAT 3512 total 2,400BHP. M/E repowered in 1995. Inland towboat. May be developed
for sale, subject to availability. U.S. Gulf Coast.
File: TP18119 Push Boat - 118.1' loa x 30.2' beam x 6.33' loaded draft. Built in 1962
by Christof Ruthof; Mainz Kastel; Germany. France flag. Class: Navigation certificate
exp. 15 Dec 2015. Deadweight: 133mt. Light Disp.: 98mt. Winch: 6 coupling with wire 100kN strength. Main Engines: 2 x Cummins KTA-38-M1 total 1,800BHP. 2 - FP
prop(s). Kort nozzle(s). Two rudders behind each prop. Pump(s): 2 bilge. Genset(s): 1 50kVA / Cummins 4B3; 1 - 50kVA / Cummins 9DM. Firefighting: 5 portable
extinguishers. Elevating pilothouse. Eight person lifeboat. Europe.
File: TP14559 Push Boat - 59.0' loa x 19.5' beam x 8.2' depth. Built in 1990 by Aiple Marine;
Stillwater, MN. Rebuilt: 2002. U.S. flag. GRT: 77. Main Engines: 2 x CAT D348 total 1,450BHP.
Last Overhauled: 2002. 2 - FP prop(s). Rebuilt 01/2002 by Alsem Industries. Genset(s): 2 - 40kW /
GM3-71 (overhauled 2002). Quarters: 8. Galley. Totally rebuilt in 2002. Rewired. Upper Pilot
house. Height of eye = 40'. Make offer after inspection. U.S. Gulf Coast. Prompt.
File: TP10064 Push Boat - 64.5' loa x 19.2' beam x 7.0' depth x 5.50' light draft x 7.20' loaded
draft. Built in 1961 by J.F. Bellinger & Son; Jacksonville. Rebuilt: 1990. U.S. flag. GRT: 61. Class:
Drydocked & refurbished 2008. FO: 8,000g. Winch: 2 - barge wire winches. Line Pull: 40T. Wire
Capacity: 100' 3/4". Main Engines: 2 x CAT 3408 total 1,000BHP. Last Overhauled: 1981. 58"x 42"
bronze 4-blade prop(s) on 5" steel shaft(s). Speed about 11kn. Genset(s): Stbd 30kW / GM3-71;
Port 20kW / GM2-53 110/220vAC 60Hz. Quarters: 5 bunks / 2 cabins. Air Conditioned. Galley. "V"
bottom model bow w/ push knees. Working. Eye Level 22-23'. Keen seller. Call Marcon for price
ideas. U.S. Southeast. Prompt.
File: TP05035 Push Boat - 35.0' loa x 20.0' beam x 4.0' depth x 3.50' light draft x 4.00' loaded
draft. Built in 1998 by Triple C Fabricators. U.S. flag. GRT: 18. Main Engines: 2 x GM 8V71 total
460BHP. Steel Hull. Ready for inspection and delivery. Operational. Split hull design. Can be
completely disassembled for trucking. Call for price and/or charter rates. If employed, can
possibly be developed for sale following off hire. U.S. Southeast. Prompt.
See our website at www.marcon.com for the most recent inland river pushboat and barge listings. Call if
you do not see what you are looking for. Many other boats are listed on a non-published basis.
We are interested in receiving information on any vessels surplus to your requirements that may be available for sale or charter on either a published or private and
confidential basis. We are also interested in receiving press releases, news and comments about the industry on a regular basis for our market reports.
www.marcon.com
16

Inland Pushboat Market Report - February 2014

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