September 29, 2006
International Shipholding adds U.S.-flag PCTC
International Shipholding Corporation's (ISC) (NYSE:ISH) expects a before tax negative impact from Hurricane Katrina and Hurricane Rita on third quarter financial results that may exceed $1,800,000, due lost rail ferry revenue, scheduling delays on LASH Liner Services, and the expenses associated with office closures and relocations
In a bright note in a post-hurricane update issued today, ISC says that on September 27 it added another Pure Car/Truck Carrier (PCTC) to Central Gulf Lines, Inc.'s U.S.-flag PCTC operations. With the addition of this newly acquired PCTC, ISC's subsidiaries, Central Gulf Lines, Inc. and Waterman Steamship Corporation, now operate five United States Flag PCTC's.
The company's New Orleans offices remain closed. Though the company says it intends to return to New Orleans when conditions are safe and infrastructure is restored, it is negotiating an office building lease in Mandeville, Louisiana and has established operational centers in Baton Rouge and houston. When the Mandeville office is fully operational--within the next 60 to 90 days--it will absorb the Houston office.
Two of ISC's LASH Vessels, which operate in Forest Lines, Inc.'s and Waterman Steamship Corporation's regularly scheduled LASH Liner Services, safely weathered the impact of Hurricane Rita. However, the vessels have experienced significant scheduling delays as a result of port and waterway closures caused by Hurricane Rita.
Given that the Mississippi River is open to navigation, ISC has returned the operating focal point of Forest Lines, Inc.'s and Waterman Steamship Corporation's regularly scheduled LASH Liner Services to the Mississippi River.
Forest Lines, Inc.'s next sailing will discharge and load at Baton Rouge, Louisiana.
ISC's Rail Ferry Service operating between New Orleans and Coatazacoalcos continues to be temporarily suspended while the New Orleans rail infrastructure is restored. While the Norfolk Southern Railroad has restored rail service to New Orleans, the New Orleans Public Belt and CSX Railroads continue to actively work on restoring their rail infrastructure and rail connections in and to New Orleans.