Trinity Industries to Construct Tank Barges for Kirby

Tuesday, May 06, 2003
Kirby Corporation has signed a contract with Trinity Industries, Inc. for the construction of 16 double-hull, 30,000 barrel capacity, inland black oil tank barges. Kirby plans to take delivery of seven of the tank barges in 2003 and nine in the first half of 2004. The total purchase price of the 16 barges is approximately $29 million, with an estimated $12.6 million to be expended in 2003 and $16.4 million in 2004. Under the terms of the contract, Kirby has an option for the construction of 16 additional 30,000 barrel capacity black oil tank barges. In October 2002, Kirby entered into a barge management agreement with Coastal Towing, Inc. ("Coastal") to manage 54 black oil tank barges owned by Coastal, along with the 66 barges Kirby operates in its black oil fleet. Over the next three years, a number of barges in the combined Kirby/Coastal black oil fleet will be retired and replaced with new tank barges. Under the management agreement, Coastal has the right to maintain their same capacity share of the combined fleet by building replacement barges as older barges are retired. Joe Pyne, Kirby's President and Chief Executive Officer, commented, "Kirby is currently in discussions with Coastal to determine whether Coastal intends to exercise its right to replace the Coastal capacity to be retired. Under the barge management agreement, Coastal has the right to purchase a portion of the 16 tank barges. If Coastal chooses not to exercise its right to purchase its share, Kirby will purchase the tank barges that Coastal chooses not to purchase. The black oil market is a market in which Kirby has a strong position and one that should perform well in the future. Given current market conditions, it is our intention to build barges that will maintain our current market share in this important market." Financing of the construction of the tank barges to be owned by Kirby will be through operating cash flows and available credit under Kirby's revolving credit facility.
Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

Contracts

Wärtsilä to Begin Building LNG Terminal in January

Wärtsilä has been given full notice to proceed (NTP) from Manga LNG Oy for the supply of a liquefied natural gas (LNG) import terminal in Tornio, Northern Finland.

Polarcus Awarded 3D Project Off West Africa

Polarcus Limited has signed a letter of intent with Perenco Oil & Gas Gabon S.A. for a 3D marine seismic acquisition project offshore West Africa.   The project,

Boskalis, VolkerWessels Win Offshore Wind Farm Work

Royal Boskalis Westminster N.V., in partnership with Volker Stevin International (VolkerWessels), has been awarded a contract by Iberdrola Renewables Offshore Deutschland

 
 
Maritime Contracts Maritime Security Maritime Standards Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1438 sec (7 req/sec)