Inland towing consolidation

Kirby Corp. (KEX) announced the signing of a definitive agreement to acquire the marine transportation fleet of Cenac Marine Services for approximately $244 million in cash. The purchase will be financed through additional borrowings.

Cenac’s fleet consists of 63 30,000-barrel inland tank barges with approximately 1.9 million barrels of capacity, 34 inland towboats, and 2 offshore tugboats. This brings Kirby’s fleet to around 400 vessels and we’ll over 1000 barges.

Another company bought out a smaller company just a few months ago…we all agreed Subchapter M would knock out the “mom and pops” but these companies, Cenac at 34 boats and progressive at 10 boats (see below) aren’t really mom and pops. Either way, the fat are getting fatter.

Savage has been making moves first buying out about 36 inland towboats from Settoon Towing, a few fleets in Texas and now buying progressive barge line in New Orleans.