ASC's Buffalo Sold Canadian

[Guest]

If true, Rand's purchase of the M/V Buffalo's lease is a strong indicator that AIP intends to keep Rand Logistics in the Great Lakes Shipping business.

Investing in updated commercial assets is exactly the type of transaction you'd expect from new management with ready access to capital.

[Guest]

Is this an actual sale to a Canadian firm or a lease agreement? Is it possible to lease a US flagged vessel to a Canadian company? Could a Canadian company lease a US flagged vessel and place it under a US subsidiary?

[Guest]

Considering the connection Sarnia has to Lower Lakes and how each of their new purchases typically has gone there to be fit out and such after aquisition, that all but confirms the buyer here.

In fact as I recall, our first clue that the Calcite II, George A. Sloan and Myron C. Taylor finally were done at US Steel back this time 17 years ago was when they laid up in Sarnia as a prelude to them being sold a few weeks later, with their refits and repainting taking place there. That was unusual instead of somewhere like Duluth or Sturgeon Bay.

Sarnia is the clincher, as far as I'm concerned.

[Guest]

Lower Lakes would most certainly be able to afford the Buffalo, as the recent purchase of Rand Logistics by American Industrial Partners will result in the second lien debt ($90 million) being converted to new common equity, once the sale is finalized.

http://www.randlogisticsinc.com/press/R ... -21-17.pdf

The sale hasn't finalized yet. They aren't out of the woods just yet.

[Guest]

Lower Lakes would most certainly be able to afford the Buffalo, as the recent purchase of Rand Logistics by American Industrial Partners will result in the second lien debt ($90 million) being converted to new common equity, once the sale is finalized.

http://www.randlogisticsinc.com/press/R ... -21-17.pdf

[BigRiver]

10 p.m, Buffalo has arrived in Sarnia. She is at the south end of the North Slip.

[Guest]

I really can’t see lower lakes being able to afford the Buffalo they are operating at a loss now shares trading at 0.19 and all outlooks are very grim but I guess stranger things have happened,my money would be on mckeil and a new player just my opinion

[Guest]

Diver Dan, you are correct, my build dates for the Clyde and Taylor were off; I thought they were part of the "class of 1938"

Calcite II (1929) at time of sale in 2000 - 71 years old
Myron C. Taylor (1929) at time of sale in 2000 - 71 years old
George A. Sloan (1943) at time of sale in 2000 - 57 years old

Arthur M. Anderson (1952) - 65 years old
Phillip R. Clarke (1952) - 65 years old
Cason J. Callaway (1952) - 65 years old

My point remains the same, they're aged vessels facing a re-power or replacement scenario in the very near future.

As far the "Mans",....I had forgotten about the MANitowoc and was indeed referring to the MANistee and MANitoba.

[Guest]

"Mans" as in- Manistee and ? Manitwoc??

I worked on her (as the Earl W. Oglebay) not that long ago just before ONCO sold her. She seemed solid besides the inherent issues of having Alco main engines.

I think Duluth Guest meant Manistee and Manitoba.

[Diver Dan]

Realize that these three are older than the the three "stone boats" they sold in 2000.

Uh, No, not true. Check your build dates. The AAA boats are from the early 1950's. The boats in the 2000 sale were from 1927-1943, with the Sloan (Mississagi) as the newest of the bunch.

As for the other comments, why bring out an old steamer (Valor) when you still have a newer diesel boat (Cornelius) available at the wall?

[Guest]

The near future for the two "Mans", of the Grand River and Lower Lakes Fleets is pretty grim,

"Mans" as in- Manistee and ?? Manitwoc???

I worked on her (as the Earl W. Oglebay) not that long ago just before ONCO sold her. She seemed solid besides the inherent issues of having Alco main engines.

[ashland69]

My personal speculation on this matter is that the buyer is not Algoma or CSL. They're both building, not buying. That essentially leaves Lower Lakes, McKeil or a new player. Not ruling out a new player, my guess is Lower Lakes. With the Manistee essentially through and Mississagi of the same class, Lower Lakes is going to need new tonnage fairly soon. Buffalo would be a good replacement for Manistee with Grand River in terms of carrying capacity and hull dimensions. Additionally, Buffalo is a newer, faster boat, as well. Now, if the Cornelius is in the mix, I could see her fitting in very well under the Canadian flag and a possible replacement for the Mississagi. She'd be a good complement to the Saginaw and Michipicoten and might even be able to be used to make ore runs down the Seaway in competition with Algoma and CSL. On a final note, another reason I suspect the buyer is Lower Lakes is because when they bought the Sloan, Calcite and Taylor from USS a number of years ago, they went to Sarnia at the conclusion of the deal and sailed from there after refit in Lower Lakes colors. Any thots on a possible name for the Buffalo if Lower Lakes is indeed the buyer? If Lower Lakes did buy the Buffalo and it sails for Grand River as a replacement for the Manistee, I could see the new name being Manistee. After all, they did that when they disposed of the first Calumet!

[LLT Mate]

Maybe Scott Bravener is resurfacing. His non-compete must be up soon.

[Guest]

I can assure you that LLT did not aquire the Buffalo.
They are broke as hell.
Someone else has purchased her among others... Stay tuned

[Duluth Guest]

It wouldn't surprise me to see GLF buy some diesel SUs from someone as replacements for the AMA, CJC and PRC. Realize that these three are older than the the three "stone boats" they sold in 2000. To further than discussion, they did pick up the American Republic lease when ASC didn't renew it. They are facing the looming fuel usage deadline too.

The fact that GLF/Key Lakes has excess capacity in the AMA, as well as the fact that the Buffalo is heading to Sarnia per Marine Traffic, makes me think that Rand Logistics will be her new colors. The near future for the two "Mans", of the Grand River and Lower Lakes Fleets is pretty grim, they have no excess capacity, and at least two of their other diesels are nearing their 3/4 of a century mark. This seems to suggest a need for "young blood" in their fleet. Just my speculative thoughts on the matter.

[Duluthian]

it's not gonna be CN- GLF if the boats going to Sarnia..

I agree that GLF wouldn't be buying the Buffalo, particularly since she's headed for Sarina. My money is on Lower Lakes Towing / Grand River Navigation. Their new private equity owners are probably interested in grabbing more market share.

On the bright side, the sale of the Buffalo probably means that the American Courage will get activated next year for Cleveland shuttle runs.

What about the Adam E.? Are there rumors that ASC is interested in selling her? I could see GLF being interested in having another river class vessel.

[Guest]

it's not gonna be CN- GLF if the boats going to Sarnia..

With two new builds in the same class due to arrive in spring, I cannot see it being Algoma either. Has there been any indication of McKeil making any effort into this market?

[Guest]

I guess this means ASC will be removing the picture of the Buffalo off its homepage!

[Joseph]

Sounds as though it's going to Lower Lakes Towing which makes you wonder if the Mississagi is nearing retirement. I have been wondering if she was as worn out as the Manistee for a while.

What makes it sound like LLT?

[Guest]

Algoma