Freight News, Sea

Rand Logistics Brings Newest Canadian Flagged Self-Unloader, the M/V Manitoulin into Service

[ December 5, 2015   //   ]

Rand Logistics, Inc. has introduced its newest Canadian self-unloading vessel, the M/V Manitoulin, into service. The new vessel has the largest carrying capacity of any existing river class self-unloader and is anticipated to be the most efficient vessel of its class on the Great Lakes.
The new addition increases the size of Rand’s fleet to 16, including 10 Canadian flagged and 6 U.S. flagged vessels, and supports recent new long-term contracts, which took effect in April 2015.
“As reported in our second quarter fiscal 2016 financials, the new vessel will service existing business that is presently being delivered through a third party time charter,” commented Mark Hiltwein, Rand’s CFO. “We are in the process of transferring tonnage to our new vessel and ending the third party time charter agreement that has been in place throughout the current sailing season. We do not expect that our newest vessel will have a meaningful impact on our fiscal 2016 financial results. In the 2016 sailing season, we expect per day profitability generated from our newest vessel to exceed that of any of our existing assets.”
Hiltwein added, “We estimate that the new vessel will increase our overall return on invested capital by approximately 1% and our free cash flow per basic shares outstanding at the current Fx rate by between $0.18 and $0.22 on a full year basis.”
“The Manitoulin is officially in operation in the Great Lakes Region after successfully completing the voyage from China to Canada over the last two months, traveling across the Pacific Ocean, through the Panama Canal, along the East Coast, and down the St. Lawrence River.  We are pleased with the vessel’s performance and are thankful for our skilled crews and all who contributed to delivering the vessel into service safely and within the expected timeframe,” said Scott Bravener, President of Lower Lakes Towing Ltd. and Grand River Navigation Company, both subsidiaries of Rand.