asba draft
TRANSCRIPT
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 1/26
TECO Ocean Shipping
Tampa, Florida TECO Energy
NYSE: TE
S&P 500 Regulated and Unregulated Energy Companies
TECO Transport
TECO Barge Line TECO Bulk Terminal
TECO Ocean Shipping
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 2/26
A diverse fleet of vessels U.S. Flag
Ocean Going
Coastwise endorsements
3 ships / 9 tug & barge units (ITBs)
Dry bulk
19,200 dwt to over 40,000 dwt
Over 400,000 dwt of capacity
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 3/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 4/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 5/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 6/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 7/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 8/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 9/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 10/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 11/26
The U.S. Dry-Bulk Fleet Vessels without Coastwise
Endorsements
U.S. Flag & Crew Vessels with Coastwise Endorsements
U.S. Flag, Crew, Built, and Citizenship
owner
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 12/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 13/26
Dry-Bulk Coastwise Competition International Sourcing
More companies investing in foreignmanufacturing to displace U.S.manufacturing
Handy Size dry-bulk charter rates Current high rates increase U.S. supply of
materials to U.S. facilities.
Jones Act fleet has stable rates comparedwith international charter rates.
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 14/26
Rail Competition Train Loads (100 cars or greater)
Captive Shippers
Shippers are seeking alternatives forleverage
Rail Mergers Justification for rate
increases
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 15/26
Upward Pressure on Rail Rates Norfolk Southern Corp Vice Chairman
and CFO, Hank Wolf stated,
The merger has provided us theopportunity for yield improvement onrates
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 16/26
Upward Pressure on Rail Rates CSX Transportation, Inc. President Mike
Ward stated,
Customers are accepting it (rate increases)without kicking and screaming, as they had in thepast
As contracts expire in 2002 and 2003 well havemore opportunity to talk to customers about
adjusting prices. He estimated $100M to $125M in price increases
in 2001 and 2002.
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 17/26
U.S. Jones Act Dry Bulk Fleet
Operator
Average
DWT
# of
Vessels
Total
DWT
Avg
Age
% of
dwt
TECO Ocean Shipping 34,128 12 409534 23 30%
Allied 24,576 5 122880 - 9%Moran 18,955 5 94775 27 7%
Dixie 17,403 4 69612 15 5%
Energy Transportation 42,800 1 42800 18 3%
HSTC 37,107 1 37107 19 3%
All Others (24 Carriers) 15,514 37 574000 27 42%
Source: www.coltoncompany.com & MarAd
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 18/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 19/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 20/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 21/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 22/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 23/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 24/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 25/26
8/9/2019 Asba Draft
http://slidepdf.com/reader/full/asba-draft 26/26
U.S. Support of the U.S. Flag Maritime Security Program (MSP)
Maritime Administration / U.S. Transcom
$2.1 M per year per ship enrolled (47 ships)
Pending Legislation
$2.6M per year per ship expanding to 60 ships
Closed to Coastwise vessels and Dry-Bulk
Short Sea Shipping Initiative Department of Transportation / Maritime Administration