Rand Logistics Makes Substantial Investment To Enhance Vessel Operating Efficiency
NEW YORK, July 27, 2010 (GLOBE NEWSWIRE) -- Rand Logistics, Inc. (Nasdaq:RLOG) ("Rand") today announced the planned repowering of one of its Canadian-flagged vessels with a new, highly automated emissions compliant power plant.
Rand will be converting its last steam powered vessel, the SS Michipicoten, to diesel power, consistent with the engine replacement completed on the Saginaw in 2008. The Company expects to take the vessel out of service in December 2010 and have it fully operational in the spring of 2011.
Based on the actual results from the Saginaw repowering, which was completed in June 2008, the project, which is estimated to cost approximately U.S. $15 million, is expected to generate an annual return on invested funds in the mid teens. The benefits of the conversion include increased revenues from higher speeds and lower costs from reduced fuel consumption, labor, maintenance and other operating expenses.Rand has received a commitment from its lenders to amend its existing credit agreement to provide for an additional CDN $20 million of term debt to complete the engine repowering project and other capital expenditures. Including this project, since the acquisition of Lower Lakes by Rand, the Company has invested more than U.S. $100 million in fleet expansion, life extension and operating improvement projects. Laurence S. Levy, Chairman and CEO of Rand, stated, "The Michipicoten upgrade will significantly improve the vessel's performance and boost its margin contribution to our overall results. This project demonstrates our continued commitment to making investments in our fleet to provide the best available service to our customers. Based on the actions announced today, we believe that commencing with the launch of the repowered Michipicoten in the spring of 2011, Rand should generate approximately $0.90 to $1.00 of free cash flow per share per year, assuming no drastic deterioration in economic conditions."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV