MarineNews Yearbook Tug, Towboat & Barge
2009
Captain Brian A. McAllister, President of McAllister Towing
Mark K. Knoy, President of AEP River Operations
Rick Calhoun President, Cargo Carriers
H. Merritt Lane, III, President and CEO of Canal Barge Co.
Gary Faber, President and COO, Foss Maritime
own business and believes it to be the smallest company on AWO's roster. He described the effect of the economy on his business as more or less the same as for larger companies. "The tug industry is soft. The oil field is pretty much flat. I see companies all around me stacking vessels." Smith reported having to actively market his services rather than waiting for clients to come to him as he did in the past. And at the moment he sees "a little more work for us internationally then in the domestic market." Rick Shrewsbury, Vice President of Seattle-based Western Towboat, said his business has been sustained by spending through the State of Alaska during the summer months. "When things slow down in Alaska, I think the Pacific Northwest will suffer," he said. "We've been moving bulk aggregate since the early 50s and this summer has been the slowest for gravel since the mid-70s." Western Towboat has 135 employees and covers Alaska and the west coast and now has taken on work in the Gulf Coast and in Central America. The company has purchased some new barges and is currently building one vessel inhouse. Rick Calhoun, President of Cargo Carriers and incoming Chairman of the Board for the Waterways Council, Inc., had slightly lighter news to report. "While we participate in hauling a lot of different commodities in our barges, our primary focus has been on grain historically," said Calhoun. "The export grain business has perhaps been one of the less negatively affected businesses in this world economic crisis as people and animals still need to consume food and feed. Trade has continued even though many of our trading partners have gone through difficult times and we have witnessed
36 MN
unprecedented volatility in ocean freight and commodities in general. A drought in the southern hemisphere also placed a greater need on U.S. grains and protein to serve world markets in the near term." "On the marine side, we have moved old barges to South America to shore up our supply chain there. We have continued to scrap old barges built in the late 70s and early 80s. We have chosen to replace most of that capacity by chartering newer equipment with deeper drafts, versus buying or building new barges." H. Merritt Lane, III, President and CEO of New Orleans-based Canal Barge Company, thinks the industry may be better off now than during past dips in the cycle. "While unsure of when we will see an upturn," he said, "I believe that the industry is in a much stronger condition than in prior downturns. Most of the industry's equipment is in the hands of larger, well-financed, and bettermanaged companies in comparison to the past. In addition, the industry fleet has a greater number of older barges today than it did in the 1980s, when we overbuilt on top of an already-young fleet. I expect that our industry leaders will be rational and disciplined, especially about managing their fleet capacity. There will be little new construction and likely some accelerated retirements of older vessels. This will help us avoid the excess supply that resulted from overbuilding in the 80s. I believe that we will see an earlier recovery due to a relatively balanced fleet supply in comparison to expected demand." John A. Witte, Jr., Executive Vice President at Donjon Marine, a N.J. based salvage company, believes that in any economy, diversity is key to his company's health. "Donjon is always looking to related markets for continOctober 2009