US Barge Traffic Demand Stabilizing In March - Kirby CEO
March 11 2009 - 11:25AM
Dow Jones News
Demand to ship petrochemicals and other bulk products on U.S.
waterways started to return in March, according to the head of the
country's largest barge operator.
Joe Pyne, chief executive of Kirby Corp. (KEX), said Wednesday
that market conditions had improved after rampant destocking from
November through February.
"The inventory had [reached] levels unacceptable to our customer
base," said Pyne at a transportation conference hosted by JPMorgan.
"They are trying to figure out where the demand is."
Pyne said the softness in the market afforded Houston-based
Kirby with M&A opportunities having already completed 40 deals
in the fragmented U.S. barge market.
The company operates almost 1,000 barges along the Mississippi
River and other large inland waterways, as well as along the Gulf
coast where the U.S. petrochemical industry is focused.
Two-thirds of its business is from transporting petrochemicals
for customers including Exxon Mobil Corp. (XOM) and Dow Chemical
Co. (DOW), whose chief executive this week signaled an uptick in
demand for some chemical products.
Kirby shares were up 3.8% at $22.55 in midmorning trade.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135;
doug.cameron@dowjones.com