and acquired Sea Coast Towing in October 2005, for $77 million in cash and a sum of K-Sea stock, adding a 27.1% increase in total carrying capacity to the company at the time. "Sea Coast was a great acquisition," says Capt. Sullivan, "because the company is so similar to ours as far as attitude, quality of vessels, quality of employees are concerned. We netted 15 tugs and 15 barges, which was about double the additions we got in Norfolk. In previous cases we purchased just the assets of companies, in this case we were so impressed we purchased the whole company," with Mike Magill, a classmate of Capt. Sullivan's from Ft. Schuyler, to operate the company formally as the Pacific Division, but still bearing its name and conventions. The culture and the procedures of the Pacific do have their variations from Atlantic coast themes. "Their tugs typically don't have upper wheelhouses, because they tow. Their gear is much heavier -- 2.5-inch wire, and 2.5 to 3-inch chain, for heavier sea conditions." As the company expands geographically and in equipment, including the new directions of pocket ITBs, the particular needs of each line of work become enlarged proportionately. K-Sea established a new corporate headquarters in East Brunswick, NJ to coordinate four main company divisions, each with its focus of attention based upon physical requirements. The New York Division, under Capt. March 29, 2007 -- Tug Houma, on her way to replace the Davis Sea in the notch of the new DBL 27, takes her momentary place among the monuments of the Harlem (Photo: Don Sutherland.) Bill Sullivan, operates the small boat fleet which "uses drip meters and high booms for bunkering," says Tom Sullivan, "and doesn't have to worry about what's happening in Houston." The Atlantic Division of coastal ITBs "doesn't need the booms or other stuff for bunkering, but it needs lots of spares, a lot of self-contained reliability -- those units are running up to Maine, or down to Tampa, and if anything comes up, they should be able to fix it as they go. Chris Palo runs the division. In a past life he was responsible for the maintenance of our vessels." The Norfolk Division runs under the direction of Bernie Casey, brother of Tim Casey from which the company's name is derived. Beginning with the Eklof days, the people directing the present company have histories together, the benefit of time to sharpen rapport. Says Capt. Sullivan, "the Norfolk Division has small tugs and barges and it operates Norfolk Environmental Services, NES. We made a significant investment into the facility, bringing everything up to code, and I'm happy to say business has been very good. We accept oily waste water for treatment and recycling, including bilges, barge bottoms, things of that sort. We can take the stuff by truck or barge, and have a fourtruck capacity at the terminal. If I see four trucks there, I'm happy. Today on our network video I saw them lined up down the street." K-Sea seems to be establishing businesses along principal routes of trade -- their principal routes, anyway. They recently acquired River Associates in Philadelphia, mainly a lube oil delivery company, adding to the K-Sea roster two single-screw tugs, a number of barges, and of all things, some tanker and flatbed trucks. K-Sea ATBs come into port from wherever "and the customers choose what form of delivery they require," says Capt. Sullivan. "It could be a five-gallon bucket or 55-gallon oil drum." Or, who knows, maybe a pocket ITB? "We would like to bring some barges down there, increase the amount of dock space in Philly to support the East Coast fleet and the work being done in Norfolk." So there was plenty of respect for DBL 27 when she was christened on March 30, but not just for a better barge. She would be part of a plan, an element of a new infrastructure, new lines of service and levels of reliability. Pushbutton operations at dockside have likely implications of their own. There could be all sorts of things to reconsider, along with the progress of the pocket ITBs. DIVERSIFIED Engine Exhaust Systems All of our cylindrical, low profile and spark arresting series engine exhaust silencers are available in limitless configurations and designed with the highest quality craftsmanship, performance, longevity and customer space constraints in mind. ABS Certified Bureau Veritas Qualified ENGINE AND ENVIRONMENTAL PRODUCTS 7700 SW 69th Ave · Portland OR 97223 800-394-7571 · Fax: 503-244-7589 www.harcomanufacturing.com email: firstname.lastname@example.org HARCO MANUFACTURING CO. 24 · MarineNews · April, 2007
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