April 17, 2007
ACLI to add more tank barges
American Commercial Lines Inc. (NASDAQ: ACLI) says it will increase liquid tank barge capacity by over 15 percent during 2008 with the addition of 30 new 30,000 barrel capacity tank barges, totaling approximately $75 million in capital expenditures. It will also headquarter its liquids transportation division in Houston.
But "as a result of improved asset utilization," it will retire an additional 200 dry cargo barges, bringing the total number of retirements during the 15 month period to over 500 units, or 20 percent of its dry cargo fleet. And it will canceli over 100 dry cargo barges that were to be built during 2008 for ACLI's transportation division.
"We are seeing progress on the demand side of our business in winning more freight for our transportation division and in improving our asset utilization, said President and CEO Mark R. Holden. "As a result, we are accelerating certain aspects of our strategy to foster organic growth."
"Over the course of the next few years, we would expect to significantly change our portfolio mix of commodities," said Holden. "During 2006, our transportation revenues were comprised of 32% grain, 28% bulk, 24% liquids, 8% coal and 8% steel. We would like to see our mix of business as 40% liquids, 20% coal, 20% bulk, 10% grain, 5% steel and reserve 5% of our capacity for emerging markets."