Inland Marine Us Boat Builders

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Inland Marine Us Boat Builders April 2016 Prepared For: By: Patrick Webb TABLE OF CONTENTS INLAND MARINE INDUSTRY OVERVIEW Page 1 INLAND MARINE NEW BUILD PROJECTS Page 7 EXAMPLES OF INLAND MARINE PROJECTS WITH DECK EQUIPMENT Page 14 INLAND MARINE TOW BOAT OWNERS LOGOS Page 17 BARGE AND TOWING COMPANIES Page 18 INLAND MARINE NAVAL ARCHITECTS Page 33 INLAND MARINE BOAT BUILDERS Page 44 INLAND MARINE ASSOCIATIONS & ORGANIZATIONS Page 47 INLAND MARINE TRENDING AND NEWS Page 52 INLAND MARINE INDUSTRY OVERVIEW Understanding the U. S. Inland Marine Industry This industry comprises establishments that provide inland water transportation for cargo on lakes, rivers and intercostal waterways (except on the Great Lakes system). In addition, the transportation of passengers could also be included although this aspect was not considered for this study. Geographically This industry primarily includes the following areas: Coastwise / intercostal (East Coast, West Coast, and Gulf Coast) Upper Ohio River System, Mississippi and Missouri River System, Lower Mississippi River System, Red River, Calcasieu, and Midwest River System, Tom Bigbee / Alabama River System, Tennessee Valley River System, Hudson and NY Authority Waterways, Columbia River System, Industry Transported Products Transportation of a wide variety of raw materials and consumer goods including: Liquid bulk Oil Coal Petro Chemical LNG Dry bulk Partially processed steel products Fertilizers Grain Finished Goods Project Cargo 1 | P a g e Industry Activities The following are the major types of transportation and support service provided by operators in this industry: Canal barge transportation, Freight transportation on inland waters, Intracoastal transportation of freight, Lake freight transportation, Lightering (i.e. freight transportation except vessel supply services), River freight transportation Ship chartering with crew on inland waters Shipping freight on inland waters Towing services on inland waters Jones Act Port to Port Cargo transportation (Inland and open ocean), Harbor and Assist Tug Services, Definition of a Tow Boat The reference to the word "tow" comes from when cargo was transported by canal and when mules or horses towed the vessels along the bank. Although there are still many applications where Tug Boats are used to tow barges and other vessels. The primary activity to move barges and cargo is through pushing of a barge or group of barges. Barge Sizes The standard open cargo “Hopper” barge is 195 feet long, 35 feet wide, and can be used to a 9-foot draft. Its capacity is 1500 tons. Some of the newer cargo barges and Tanker barges today are much larger and are regularly found to be 290 feet by 50 feet, double the capacity of earlier barges. Tow Boat Sizes Towboats (Square Push Boats to Model Bow Tow Boats) range in physical size from about 80’ feet long by 25 feet wide to more than 200 feet long and 45 feet wide. They draft anywhere from 6.5 feet to 10.0 feet. The boat's diesel engine can produce power from a few hundred horsepower to 10,000 horsepower. The most common power band for new Tow Boats are between 1,500 HP and 5,000 HP. The larger boats typically operate coastwise or on the Lower Mississippi where the water is free flowing and channels are wider. Approximate Count of Barges and Tow Boats There are more than 26,000 dry cargo barges, 3,000 tanker barges, and 5,000 to 6,000 towboats operating in the US today. 2 | P a g e Typical Tow Size The average tow has 12 to 15 barges, but flotillas can go up to 40 barges. The sizes and movement of barges depends upon the type of cargo, size of barges, weather conditions, river segments, size of locks, experience of the personnel, etc. For example, smaller tributaries, such as the Alabama River, can support only a four-barge tow because of the characteristics of the river and because the lock system is limited to 84 feet in width by 600 feet in length. The Lock System The US Army Corps of Engineers operates 275 locks. These locks are generally 110 feet wide, and either 600 feet to 1200 feet long. Industry Employment In 1992, over 8,000 firms employed over 170,000 people whose annual wage averaged $30,180. These firms included 452 barge and towing companies, over 2,000 public and private ports and terminals, plus shipyards, contractors, marine surveyors, marine divers, and numerous other categories of companies. Industry Impact of this industry would take the total value to over 400,000 jobs and $700 million in tax values. Since 1992, it is projected that the total industry size and impact has grown by 200% to 300%. Limited studies covering this industry makes capturing actual values difficult. How much cargo is moved on the Inland River System? Of the 620 million tons moved on the inland waterways system in 1995, 321 million tons moved on the Mississippi River. The Ohio River tonnage was 236 million while the Gulf Intracoastal Waterway saw 119 million tons. Again, in today’s economy, these numbers may be 2 to 3 times higher. Plus in recent years, oil and LNG has grown significantly with some estimates reflecting more than a five hundred million tons in that product segment alone. Waterway draft In general, most of the larger river systems have drafts more than 12 feet. The lower Mississippi and intercoastal waterways typically have drafts near or more than 20 ft. The upper river systems and tributaries will commonly fall into the shallow draft waterway description which is typically less than 12 feet, but rarely less than 9 feet. U. S. Government Investment Since World War II, the Federal government has spent about $11 billion in the waterway infrastructure within the waterway systems. This is in addition to state, local, and corporate investments. Therefore, the replacement value of these systems of ports, terminals, and waterways is estimated to approach $1 Trillion dollars in today’s money. 3 | P a g e Inland Water Major Transportation Operators Financial Report by IBIS WORDS NAICS 48321 | Jan 2016 Tepid waters: Revenue is expected to increase, but poor infrastructure threatens industry growth IBISWorld’s Inland Water Transportation market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends. Market Leaders (Operators) American Commercial Lines LLC Ingram Industries Kirby Industry Statistics & Market Size Annual Growth Annual Growth Revenue 11-16 16-21 $8bn 1.0% Profit Employment Businesses 24,908 3,008 Industry Analysis & Industry Trends In the five years to 2015, the Inland Water Transportation industry sailed out of shallow water, as it recovered from the recession amid stagnant overall freight volume and detrimental weather events. The surge in US oil and gas production caused demand for the industry's tanker services to spike, aiding industry revenue growth. In the five years to 2020, the industry will finally reach its pre-recessionary levels. Increasing economic activity, combined with growth in key downstream markets, will push up the volume of freight transported via inland and costal waterways. As a result, demand for industry services will rise, supporting revenue growth. Industry Report - Starting a New Business Chapter Overall the Inland Water Transportation industry exhibits medium barriers to entry. In general a company can be started around just one boat, which explains the participation of so many small sole proprietorships in the industry. However, this limits an operator's flexibility and capacity to do business. Those with a more boats and barges can offer more flexible scheduling, more route options and of course more transport capacity. As 4 | P a g e a result, larger players' resources and market power allows them to offer customers multiyear contracts, which in turn locks out new entrants. Consequently, smaller players have to compete on the much more competitive spot market or act as subcontractors to larger companies. Largest Inland Marine Operators Kirby Ingrim American Commercial Barge Lines Blessey Marine Services Canal Barge Seabulk Tidewater Barge Lines Magnolia Transpartation Marquette Transportation Florida Marne Transporters Snapshot of Operator Equipment (Sample) American Commercial Barge Lines 200 Tow Boats 4,800 barges 45 Million Tons of Products annually Kirby Inland Marine Operates 243 Towing Vessels 898 Inland Tank Barges 17.9 Million barrels of capacity Ingram 150 Towing Vessels 5,000 barges (hopper and tank) Magnolia Marine Transport Company 20 towboats 75 barges Warrior Gulf 16 Tow Boats 70 Barges 1.5 million tons of products Parker Towing Company 100 Tow Boats 5 | P a g e 350 open and covered hopper barges Blessey Marine Services 80 Tow Boats 200 barges Summary of General Industry Trends The following is a brief list of the basic trends affecting the Inland Marine Market: 1. As the backbone of cargo movements within the USA, the industry will continue to expand in parallel with the growth in U. S. Population and Gross national Product. 2. Operators and Owners will continue to build larger vessels that will have one of the two main mission focuses: a. More versatile and capable of supporting multiple missions b. More specialized whereby offering special niche performance 3. Environmental restrictions will drive equipment investment 4. Subchapter M will require aggressive investment into new equipment 5. Expansion of the Panama Canal will effect cross country cargo movements and exporting patterns 6. Oil down turn is forcing some larger operators to shift investment focus 7. Aging workforce shifts reliability on human experience and more on technology 8. Shifting political environment causing multiple upward and downward growth forecasts.
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