President Bush signs Marine Highway Legislation
On Dec. 19, 2007, President George W. Bush signed into law the Energy Independence and Security Act of 2007, which contains provisions establishing a formal marine highway program within the federal government. Under the new law, marine highway or "short sea" transportation refers to the carriage by vessel of cargo in containers, loaded on the vessel by cranes or by means of wheeled technology. Specifically, the new law requires the establishment of a program and the designation of transportation projects to mitigate landside congestion. The program will encourage the development and expansion of vessels, shippers, port and landside infrastructure, and marine transportation strategies by state and local governments.
K-Sea Announces 2Q Results
K-Sea Transportation Partners L.P. reported earnings for its predecessor, K-Sea Transportation LLC and subsidiaries, for the three and six month periods ended December 31, 2003. On January 14, 2004, the business of K-Sea Transportation LLC and its subsidiaries was contributed to K-Sea Transportation Partners L.P. in connection with the initial public offering of common units representing limited partnership interests in K-Sea Transportation Partners L.P. For the three months ended December 31, 2003, net income was $0.2 million, compared to $0.4 million for the three months ended December 31, 2002. The decrease of $0.2 million resulted from a decrease of $0.4 million in operating income, partially offset by reduced interest expense.
Vessels: K-Sea Acquires ITB Unit
K-Sea Transportation Partners has acquired the 140,000 barrel capacity double-hulled barge S/R New York and the 8,000 horsepower tugboat S/R Everett. This integrated tug barge unit, built in 2000, had been leased by SeaRiver Maritime, Inc., a subsidiary of Exxon Mobil Corporation, from a financial institution. The purchase price of $34 million was financed using available cash and $25 million in borrowings under a new term loan. The new equipment will begin working immediately and is expected to be accretive to K-Sea's distributable cash flow. K-Sea has also signed a new multi-year contract with SeaRiver to utilize the unit in Exxon Mobil's petroleum products transportation in the Northeast United States. The barge has been renamed DBL 140 and the tugboat has been renamed Lincoln Sea.
WFW Advises BPM on Navigazione Refinancing
International law firm Watson Farley & Williams (WFW) advised Banca Popolare di Milano S.p.A. (BPM) regarding a US$28.8m loan facility granted to L.G.R. di Navigazione and secured by, inter alia, mortgages over two medium range ice class tankers, the “Cenito” and “Posillipo”. Founded in 1865 by future Italian Prime Minister Luigi Luzzatti, BPM was Italy’s second co-operative bank. It merged with Banco Populare on 1 January 2017, to form Banco BPM, Italy’s third largest retail and corporate banking conglomerate. Naples-headquartered L.G.R.
K-Sea Prices IPO
K-Sea Transportation Partners L.P. (NYSE: KSP) announced today that it has priced its previously announced public offering of 3.5 million common units representing limited partner interests at $39.50 per unit. The offering is scheduled to close on September 26, 2007. K-Sea has also granted the underwriters a 30-day option to purchase a maximum of 525,000 additional common units to cover over-allotments. K-Sea intends to use the proceeds of the offering to repay indebtedness.
AWO Elects New Chair & Vice Chair
The members of the American Waterways Operators (AWO), the national trade association for the American tugboat, towboat and barge industry, elected Timothy J. Casey as Chairman and George Foster as Vice Chairman on Friday, April 3 during the AWO Spring Convention in Washington. Casey is President & CEO of K-Sea Transportation Corp., headquartered in East Brunswick, New Jersey, and served as vice chairman for the past year. Foster is President of JB Marine Service, Inc., headquartered in St. Louis. In his remarks to the AWO Board of Directors following his election as chairman, Mr.
K-Sea Signs Barge Contract Extension
K-Sea Transportation Partners LP, said it signed a $40m contract extension for barge construction with the manufacturing arm of American Commercial Lines. The company said the construction of four 50,000 barrel tank barges will begin in first quarter of 2009, with delivery of the first vessel scheduled for December of that year. The three other vessels will be completed in three month increments after that, K-Sea said. The contract extends the barge construction agreement through 2010. Source: AP
America’s Marine Highways Program Expands
On April 7, U.S. Transportation Secretary Ray LaHood unveiled a new initiative to move more cargo on the water rather than on crowded U.S. highways. Under the America’s Marine Highway program, the Department’s Maritime Administration (MARAD) will help identify rivers and coastal routes that could carry cargo efficiently, bypassing congested roads around busy ports and reducing greenhouse gases. “For too long, we’ve overlooked the economic and environmental benefits that our waterways and domestic seaports offer as a means of moving freight in this country,” said Secretary LaHood, speaking to transportation professionals at the 7th Annual North American Marine Highways and Logistics Conference in Baltimore, MD. “Moving goods on the water has many advantages: It reduces air pollution.
Provisions of the Energy Independence and Security Act of 2007 Implemented
The Maritime Administration (MarAd) issued a final rule implementing provisions of the Energy Independence and Security Act of 2007 and amending the definition of Agreement Vessel under the Capital Construction Fund. Among other things, amendment incorporates into the term Agreement Vessel those US vessels engaged in the Short Sea Transportation Trade, as defined by the Act. The changes come into effect immediately. Source: HK Law
K-Sea Completes Acquisition of Smith Maritime and Sirius Maritime
K-Sea Transportation Partners L.P. has completed the acquisition of Smith Maritime, Ltd. of Honolulu, Hawaii and Sirius Maritime, LLC of Seattle, Wash. President and CEO Timothy J. Casey said: “We are very excited about welcoming the Smith and Sirius operating teams to K-Sea. This acquisition immediately increases our barrel-carrying capacity by 770,000 barrels, or 22% of our capacity of 3.5 million barrels at June 30, 2007. In addition, our ongoing vessel newbuilding program, under which we have ten new tank barges under construction, will add 524,000 barrels over the next three and one-half years. “These transactions strengthen our operations on the West Coast and also expand our geographical presence to Hawaii, thus providing a further platform for future growth.
Bollinger Delivers Barge to K-Sea
DBL 28 the 1st in a series of eight OPA’90 compliant, Lakes, Bays & Sounds, ABS and USCG certified tank barges delivered from Bollinger to K-Sea Transportation for use in harbor service in ports on the Northeast U. S. Coast. Bollinger Marine Fabricators, LLC, (BMF) Amelia, La., a Bollinger Shipyards, Inc. company, has delivered the DBL 28, a double hull, oil tank barge built to meet the requirements of the Oil Pollution Act of 1990 (OPA’90), to K-Sea Transportation Partners L.P, Staten Island, N.Y. Following the delivery of the DBL 28, Bollinger announced the signing of four sister ships. Terms of the contract were not disclosed. The 28,000 BBL capacity DBL 28 measures 297.6-feet in length, with a 54-foot beam and 13-foot depth.
Neptune Lines Appoints Agent in Arabian Gulf
Maritime and logistics service provider Inchcape Shipping Services (ISS) has been appointed agent for Neptune Lines’ new Arabian Gulf short sea car transportation service in Kuwait, Iraq and Qatar. As agents for Neptune Lines in these three countries, ISS will provide full port agency, vessel husbandry and liner services, as well as vehicle documentation, on the new Arabian Gulf short sea service. The vessel Neptune Ploes, which can accommodate up to 750 units at a time, is connecting eight countries and ports across the Arabian Gulf on its new…
Vancover Shipyards and Washington Marine Sign Contract with Acomarin
Vancouver Shipyards together with their parent corporation Washington Marine Group has signed a contract with Acomarin Engineering to purchase their JAK-400 Pushpin® ATB coupling system. Much research went into the decision as to which ATB coupling system would best fit their needs. Acomarin’s JAK-400 Pushpin® coupling system is one of the lightest ATB coupling systems on the market making it an easy retro fit to any tugboat and barge. Acomarin was also able to offer the fastest delivery time by supplying the complete system in less than 8 weeks. Both of these reasons were important factors in the decision for Washington Marine Group and Vancouver Shipyards.
Moody's Affirms K-Sea Ratings
Moody's Investors Service said it has affirmed K-Sea Transportation Partners LP's non-investment grade debt ratings, which were under review for possible downgrade after a $205 million acquisition, according to a report on http://money.cnn.com. K-Sea shares jumped $2.10, or 5.9 percent, to $37.58 in afternoon trading. The stock has traded between $33.90 and $48.50 during the past 52 weeks. The ratings service began its review of the oil tank barge operator's ratings on June 27, after the company announced it had agreed to acquire transportation operators Smith Maritime Ltd. and Sirius Maritime LLC for $205 million.
Russian JV Close Acquisition of Prime Shipping
The Russian Joint Venture between Rosneft, Sberbank Investments and Pietro Barbaro S.p.A. closed the acquisition of the Pietro Barbaro Group shipping assets in the Russian Federation (100% share of Prime Shipping group of companies). Prime Shipping is one of the leaders of the Russian river and sea transportation tanker market. The deal was financed by Sberbank. The acquisition of a logistics asset will allow Rosneft to strengthen its positions in the river transportation market and enhance the efficiency of operations…
Container Lines to Cut Terminal Cost in China
Eleven container liner transportation companies have promised to cut or standardize the Terminal Handling Charges (THC) in order to lower nearly 3.5 billion yuan burden of export enterprises each year, according to National Development and Reform Commission (NDRC). According to a report in Shanghai Daily, the shipping companies include China COSCO Shipping Cooperation, Maersk line, Mediterranean shipping, Hapag-Lloyd AG, Evergreen Marine, Hyundai Merchant Marine, Nippon Yusen Kaisha, Mitsui OSK Lines, Sinotrans Shipping.
K-Sea Partners buying Sirius Maritime
K-Sea Transportation Partners LP said it's buying Sirius Maritime LLC of Seattle and Smith Maritime Ltd. of Honolulu for $205m. New York-based K-Sea is buying 11 petroleum tank barges and 10 tugboats in the deal. The ships have 777,000 barrels of capacity. Sirius Maritime is owned by Gordon Smith, Robert Dorn and Wayne Sundberg. Smith also owns the Honolulu operation. K-Sea said it's paying $195m in cash and assumed debt and is issuing $10m in common stock for the companies, adding the deal should close in July or early August. Source: BizJournals
Bollinger, K-Sea Agree On Barge Construction Program
Bollinger Gretna, L.L.C., Harvey, La., a Bollinger Shipyards, Inc. company, and K-Sea Transportation Corp. of New York have signed a contract for the construction of four double hull, ocean service, OPA ‘90 oil barges. The barges will have capacities of 80,000 to 100,000 barrels. Terms were not disclosed. The barges will be built primarily for oil service on the Northeast U. S. coast. They will be coupled with existing K-Sea tugs using a connection system designed and delivered by Acomarin Engineering. The system will provide increased operating efficiency and will enhance the safety and reliability of the units. The new barges will feature double block cargo segregation, segregated ballast, cargo monitoring and vapor recovery systems as well as advanced electrical and hydraulic systems.
SAL Early on Thailand to Europe Heavy Lift Delivery
Better than punctually, SAL's 'MV Grietje' delivers sphere tank from Sattahip to Antwerp ahead of schedule. MV Grietje, a type 161A vessel with a combined lifting capacity of 700 m tons, loaded the sphere tank of 340 m tons measuring 20 x 22 x 24 m in Sattahip in Thailand and as a result of good planning, it was ready for discharge three days before schedule at the destination port, Antwerp, in Belgium. A member of the “K” Line Group, SAL is one of the leading carriers worldwide specialized in the sea transportation of heavy lift cargo.
Indonesia: Port Operation to Go Online in September
The Indonesian government is expected to start operation of a new online system at the country’s four major ports in September this year. The operation of the long awaited Inaportnet system, which will allow traders to request clearances and permits online to move cargoes will be operational by September this year, according to the Transportation Ministry's sea transportation director general, Bobby Mamahit. Tanjung Priok port has already operated the system since last year and it is expected to be integrated into the country’s three other main seaports…
K-Sea Barge Strikes Object, Fuel Spills
AP reported that K-Sea Transportation Partners LP on Friday said one of its tank barges struck an underwater object in the middle of the night, taking in water and leaking unspecified amounts of fuel into the Gulf of Mexico. The company, which runs a fleet of about 100 oil tank barges and tug boats, said the tug boat master reported that the barge rammed an unidentified object in gulf waters. The company noted that it carries both protection and indemnity liability insurance, as well as hull and machinery coverage for the vessel, called Rebel DBL 152. K-Sea said it doesn't expect the incident to hurt financial results.
Flender Werft Delivers Second Of RoRo Series
Flender Werft delivered the second of a three-part RoRo series to owners Wagenborg Scheepvart on April 28. Named Schieborg, the 602 ft. (183.4 m) vessel will be put to service between the ports of Gothenburg and Zeebrügge for Finnish-Swedish forestry product group StoraEnso. Designed to carry heavy paper and cardboard supplies transported in the StoraEnso Cargo Units, the vessel is equipped with specially fabricated tall containers, whose measurements of 45 x 12 x 12 ft. (13.8 x 3.6 x 3.6 m) exceed the conventional 40 ft. container. The company uses approximately 900 units of these containers, which can hold up to 70 tons of paper for the combined rail and sea transportation of their products.
SAL Heavy Lift HQ Re-locates in Hamburg, Germany
The SAL head office moves to new premises in Hamburg’s HafenCity, to accommodate growing staff numbers. In particular the move will give adequate space for the company's new Project and Offshore department. SAL say that the new location is comfortably close to Hamburg’s main station and airport and will facilitate communication with their international customers. With a fleet of 16 heavy lift vessels, SAL provides customized and reliable sea transportation solutions for all types of project cargoes including heavy machinery, equipment for the oil and gas industry, (offshore) wind energy, cranes and floating cargo. Amongst the trademarks of the fleet is a crane capacity of up to 2…