As Hurricane Isaac enters the Gulf Coast, we are activating our Canal Barge Company Emergency Preparedness Plan. Is it possible that Hurricane Isaac may result in a loss of power for the CBC New Orleans and/or Sulphur areas. In order to continue our operations, you can continue to call the New Orleans office phone number (504-581-2424), the Sulphur office phone number (337-527-3314), and the three 800 or 888 numbers we have. As of Tuesday morning (August 28), all of those numbers will be forwarded to an auto attendant that will list a number of options to be connected to a designated CBC representative. Below is the recording you will hear if you dial either of these numbers. If you choose an option and there is no answer, you will be forwarded to an answering service.  We will resume normal phone operations when conditions return to normal. Please stay safe during Hurricane Isaac.

Auto Attendant Message

You have reached Canal Barge Company. This line is activated because of a telephone outage in the greater New Orleans area. If you are calling between the hours of 5 pm and 8 am Central Time, please press 0. If you are calling between the hours of 8 am and 5 pm Central Time, please listen to the following menu of options.

To report a Vessel Emergency, or to speak with Tank and Hopper Barge Dispatch, press 1

For Vessel Operations or the Port Captain, press 2

For Deck Barge Dispatch and Sales, press 3

For Information Systems/Help Desk, press 4

For Barge Maintenance, press 5

For Boat Maintenance, press 6

For Crewing and Personnel press 7

For Tank Barge Sales and Marketing, press 8

For Hopper Barge Sales and Marketing, press 9

For Vessel Readiness, press star

For the Operator, press 0.

Thank you

We are watching Tropical Storm Isaac and making active preparations according to our Storm Preparedness and Response Plan, given that Issac’s current track anticipates landfall in the New Orleans area late Tuesday evening, August 28. As of this point, please continue to use your normal means of contacting Canal Barge Company.  If conditions change in the New Orleans area, we will post further guidance on alternate contact information and for other announcements or guidance.

CNN reporter Martin Savidge and his crew took a ride on the Canal Barge Company towboat M/V JOSEPH MERRICK JONES on Tuesday, August 7, for a story about the current low water conditions on the Inland Waterways and how our industry is managing through these conditions. This is another opportunity to communicate the value of our industry and the excellent work that our mariners do every day. The report aired on August 10 and CNN posted a clip on its website here.

Special thanks to Capt. Gene Waller and the crew of the M/V JOSEPH MERRICK JONES for hosting the CNN crew and providing a window into life and work on a towboat. Also thanks to Capt. Daryl Wheeler, Capt. Paul Barnes, Julie Spiers, Bill Glaeser, and Economy Boat Store for providing support and working together to successfully arrange this opportunity to tell our story.

CNN – Drought Shrinks Mighty Mississippi

Canal Barge Company President and CEO Merritt Lane was recently interviewed by the University of Virginia’s McIntire School of Commerce for a ‘Profile on Leadership’. Though the interview focuses on CBC’s response to Hurricane Katrina and the devastating impact to New Orleans, Merritt shares insights into our culture, the core values we share and how our company, and our city, has come through the crisis stronger and more optimistic than ever. To read the full interview, visit the McIntire School of Commerce website. We have included the text of Merritt’s interview below as well.

Leading Through Crisis

Merritt Lane (McIntire ’83), President and CEO of Canal Barge Company, reflects on Hurricane Katrina and its effects on New Orleans and his company. Seven years after a disaster of epic proportions, the company is stronger than ever.

Did you have a plan in place to prepare for a major storm?

Yes, because of the nature of our business, transporting hazardous materials and valuable cargos for our customers by water on a 24-7-365 basis, we have had both emergency response and hurricane preparedness plans in place for many years. In my career, we had exercised our hurricane plan several times and even run our business from remote sites for a couple of days during hurricane events that threatened to impact the New Orleans area. The primary concerns were to make sure that our people and equipment were safe and that we could run our business continually even if our offices and homes lost electrical power or experienced hurricane-related damage. In general, we were concerned about a relatively short-interval event—certainly not lasting more than a week. After 9/11, we reviewed our plan and built in a stronger business continuity element that also helped us during our Katrina experience.

How did Katrina impact your people and company, and how did you respond?

Fortunately for Canal Barge Company, Katrina’s greatest force was felt east of New Orleans, along the Mississippi Gulf Coast, where we have very limited marine operations. We were able to hold up or move our vessels either west or north of New Orleans, and so we experienced downtime, but no damage to our marine assets. Also, most of our mariners (people who work on our towboats) do not live in New Orleans; in fact, most live inland from the Gulf Coast, so their homes were mostly spared. As a result, the main effect of Katrina was on our shoreside staff—and it was very significant.

When our management team went home on the Friday night before Katrina, we were watching the storm tracking towards Florida. In the abundance of caution, we agreed to have an all-hands executive staff conference call on Saturday morning at 10 a.m. By that time, the storm had turned, and New Orleans was within the “cone of uncertainty.” We activated our hurricane plan, and my family and I started packing. We were in the car driving to Houston by early afternoon so that I would be in a good place to run the business during the storm and my family would be in a safe place where we had friends (including a number of UVA grads) and local knowledge. We packed three days’ worth of clothes. We also deployed several advance team staff members to Houston and Memphis so that we would have the necessary resources in place to manage daily operations.

As we all now know, the mayor of New Orleans issued a mandatory evacuation on Sunday, and the storm came ashore east of New Orleans early Monday morning. The storm was mainly a wind event that did little damage to structures, blew down a bunch of trees, and left the city without electricity. Unfortunately, the storm’s surge drove water into the city that overwhelmed the flood walls and levees, inundating all but the higher land in the older parts of the city. The fact is that the force did not exceed the design parameters of the flood protection system, but it failed nonetheless, making Katrina’s impact on New Orleans a manmade disaster.

CBC has its headquarters in downtown New Orleans and our main operations facility in Belle Chasse, across the river from New Orleans. Although our offices sustained some relatively minor damage due to wind and water (flood water got into our HQ lobby and damaged our elevators, and our Belle Chasse office suffered roof damage), our main problem was that no one was allowed to return to the city for almost six weeks after the storm.

Thanks to our well-executed hurricane plan, we were able to locate all of our employees and make sure they and their families were safe. We used a phone tree that kept supervisors aware of their people’s whereabouts and did twice-daily conference calls to keep in touch and to discuss logistical and planning elements. By day 3, we had all employees safe and accounted for. Our Vice President of Human Resources made a masterful decision without asking my permission. Before he left the office on Friday, he had his staff run payroll. As a result, we were able to communicate to our employees that all of their colleagues were safe, that we would return to New Orleans as soon as it was safe and we were ready to do so, and that their next paycheck would be processed as usual!

Ultimately, we set up our headquarters office in Houston and our operations office in Memphis. We also established an accounting and administrative center in Baton Rouge. We moved most of our New Orleans area-based employees and their families (and often extended families) to those locales and provided housing and assisted with schools and other basic services. We ran the company in this structure for about 110 days (my daughters spent an entire semester in school in Houston).

Our people were incredible, our customers and vendors supportive. We were extraordinarily well-treated in our host cities, as were so many Katrina refugees around the country. We never missed a sailing, our operation was incident-free, and we ended up with record profitability.

What role did you play in helping things return to normal and in preparing for the future?

As it relates to Canal Barge, although we all had to leave in an emergency circumstance, it was important to return our operation back to “normal” in phases. My family and those of our key executives, including my brother, returned back to our homes in mid-December (our house incurred no flooding, but we had some serious roof damage), and things returned back to normalcy for our company pretty quickly. No one lost their jobs or missed a paycheck. Some of our employees lived in hard-hit areas and needed more time and help to get their lives back together. We ultimately had some employees who moved away from New Orleans permanently, and we have hired quite a few new employees to cover both replacement and growth needs since the storm. Those of us who went through it together drew closer through the shared experience, and our company’s reputation as a good place to work has grown since that time. Canal Barge has continued to prosper and has now three times the revenue we had pre-Katrina, thanks to organic growth and two significant acquisitions.

Personally, the main lesson I learned is that having a plan was a very important ingredient to our success. The greater lesson, though, was that you need to run your business well every day, not just during emergencies. The fact that we had a good team who trusted one another and a culture that pulls together through both good and bad times really made the difference for CBC.I know from experience that if you take care of your people they will take care of you as well.

Are you working beyond Canal Barge to restore New Orleans?

New Orleans is the only modern city in America where every soul who lived there was forced to leave without knowing if they’d ever be able to return. The result was that, once it was safe to live in New Orleans, every person who returned did so as a matter of choice. This is incredibly profound, especially when a large majority of New Orleans residents at the time of Katrina were natives who had never considered living anywhere else. Katrina revealed many of the city’s existing weaknesses and exposed our citizenry to many cities around the country that, at the time, were more economically vibrant and high-functioning than New Orleans. Some people used this as an opportunity to start a new life. Some wonderful newcomers were “called” to New Orleans to make a difference in rebuilding a great American city. For others of us, having faced the possibility of losing our hometown, we were energized by the prospect of going back and rebuilding it into the city it could be rather than the city it had been.

On August 8, 2012, President & CEO of The American Waterways Operators (AWO), Tom Allegretti, published a letter to AWO members regarding the current reality series on the History Channel, Great Lake Warriors. Though the TV series shows mariners at work, in some times dangerous conditions, Tom’s letter highlights the key message that is missing from the show — the marine transportation industry operates on a foundation of safety for our mariners, the environment and the products we move; creates jobs for Americans; and generates economic value to our nation. Canal Barge Company is committed to a culture of safety, both ashore and afloat, and we are proud of the story our industry has to tell. Please see Tom Allegretti’s full letter below.

Nation’s Tugboat and Towboat Operators See Missed Opportunity in New Reality TV Series
A Statement by Thomas Allegretti, President & CEO, The American Waterways Operators

The reality TV series that is currently airing on the History Channel, Great Lake Warriors, portrays companies involved in vessel operations on the nation’s Great Lakes, focusing on the oftentimes challenging and harsh weather conditions during the winter months. It is important to emphasize that Great Lake Warriors is a reality TV show, and the primary goal of reality TV is to provide sensational content. As such, it is difficult to ascertain whether certain situations on the show were taken out context or edited in a way to make them more dramatic. What is clearly lost in efforts to make more dramatic television, however, is the far less sensational, day-to-day vessel operation responsible for moving cargo throughout the waterway transportation system and the foundational culture of safety under which this country’s towboat, tugboat, and barge industry operates.

There is no doubt that marine navigation is inherently dangerous. Because of this, most tugboat and towboat operators take extreme precautions and follow strict safety guidelines outlined by government and industry to better protect vessel crews, cargo, and equipment, as well as the general public and the waters they navigate. The nation’s 5,000 towing vessels and 27,000 barges comprise the largest segment of the U.S.-flag domestic fleet. Each year, the barge and towing industry safely and efficiently moves more than 800 million tons of cargo critical to the U.S. economy, including coal, grain, petroleum products, chemicals, steel, aggregates and containers. Tugboats also provide key services including ship docking, tanker escort, and bunkering in our nation’s ports and harbors, assisting ship owners and contributing to the vital import and export of goods and cargo. The domestic fleet accomplishes all of this while also being the most fuel-efficient component of the nation’s transportation system.

The hallmark of this industry, though, is its commitment to safety. In 1994, the American Waterways Operators (AWO) became the first transportation trade association to adopt a code of safe practices and environmental stewardship for its member companies. Today, compliance with the Responsible Carrier Program (RCP) is a condition of AWO membership, and members undergo independent third-party audits every three years to demonstrate continued compliance. The RCP complements and builds upon existing government regulations, requiring safety standards that exceed those required by federal law or regulation. The program has been extensively cited by the U.S. Coast Guard and the Department of Transportation as critical to preserving vessel and environmental safety and AWO is committed to ensuring the integrity of this vital program.

Government must also play a role in vessel safety oversight. Since 2003, AWO has worked with both Congress and the Coast Guard to develop legislation that was signed into law, as well as forthcoming regulations which will ensure that the Coast Guard inspects all towing vessels currently in operation and that all towing vessels will have a Coast Guard accepted Safety Management System in place. These proactive steps undertaken with the strong support of industry will help further ensure the safety of the nation’s domestic water transportation fleet.

To facilitate Coast Guard oversight while the inspection regulations are finalized, the Coast Guard and industry also have been working together on the Towing Vessel Bridging Program, an effort to ensure that both the Coast Guard and the industry are informed and prepared to meet the new inspection requirements. Through this process, which began in 2009, Coast Guard examiners have been boarding towing vessels to ensure their compliance with existing regulations. To date, nearly 5,000 industry-initiated exams have been conducted, and this process will continue until final regulations are in place.

Further, AWO maintains two committees comprised of member company safety professionals that meet regularly throughout the year to review the latest safety practices and anticipate how to proactively address any potential safety concerns. The ability to share information and collaboratively discuss challenges helps members of the industry learn from each other and further reinforces the commitment to safety under which AWO members operate.

All of this stands in stark contrast to the operations depicted on Great Lake Warriors. The day-to-day operations of the nation’s towboat, tugboat, and barge industry non-dramatically facilitate the movement of items we rely on – our food, our fuel, and many other vital products. The industry also provides thousands of jobs that support families from coast to coast and throughout the nation’s heartland. While it may not always make for exciting, dramatic TV, the industry is firmly committed to its role in supporting our national economy and enhancing our quality of life, all while operating safely and efficiently, and in cooperation with the government officials that oversee our industry. It isn’t glamorous, but it is necessary, and the hard work of the nation’s mariners and their foundational commitment to safety will continue to truly reflect our industry’s operations.

The current drought conditions affecting the heartland of America are now impacting the river industry as water levels continue to drop. Canal Barge Company has been approached by news organizations, both local and national, to provide insight into the inland marine industry and how we manage through major water events.

The TIME Magazine article “The Not-So-Mighty Mississippi: How the River’s Low Water Levels Are Impacting the Economy” by Josh Sanburn was featured on the TIME Business site July 30, 2012. Josh interviewed Merritt Lane, Canal Barge Company President and CEO, and other industry representatives to report on the impact our industry has on the national economy. Click here to read the full article.

Paul Murphy from New Orleans news organization, WWLTV, interviewed CBC Senior Vice President of Marketing David Lane on July 30 to highlight the local impact of low water levels on the Mississippi River and its tributaries. Click here to watch the full story.

On July 29, 2012, The Times-Picayune of New Orleans featured the article “Drought Could Hurt Local Shipping Industry” by Richard Thompson, which included comments by Merritt Lane as well as other New Orleans shipping industry representatives. Click here to read the full article.

David Lane was also interviewed by The Weather Channel on July 23 about the low water levels on the inland river system and their effect on both the barge industry and the national economy. David conducted a two-part interview via Skype. Click here to watch the part one of the Weather Channel interview. To watch the second part of David’s interview, click here.

CBC is committed to safe operations in times of extreme high water, low water, or normal river conditions, always ensuring the safety of our people, our equipment and the environment.

On June 12, 2012, the Chamber of Shipping of America (CSA) honored the U.S. Maritime Industry for safe marine operations at the Annual Safety Awards Luncheon held at the Loews Hotel in New Orleans. Jones F. Devlin Awards are given to vessels that have operated for at least two years without a lost-time injury.

At Canal Barge Company, we know that confidence starts with good people and we are proud to announce a total of 17 CBC towboats and 3 Illinois Marine Towing (IMT) towboats earned 2011 Jones F. Devlin honors. Two CBC vessels have operated 16 consecutive years without a lost-time injury! Canal Barge continues to be proud of our exceptional crews for demonstrating our strong commitment to safety and environmental stewardship.

MV ELIZABETH HUGER – 16 years
MV ELIZABETH LANE – 16 years
MV NED MERRICK – 13 years
MV CHOCTAW – 10 years
MV LIBERTY – 10 years
MV SPIRIT – 10 years
MV MARY LUCY LANE – 8 years
MV CAROLINE – 6 years
MV MARIAN HAGESTAD – 6 years
MV HAMILTON – 5 years
MV ELLY LANE – 5 years
MV JOSEPH M. JONES – 5 years
MV LAKE CHARLES – 5 years
MV BULL CALF – 4 years
MV KILLIAN L. HUGER – 4 years
MV MERRICK JONES – 3 years
MV INNOVATOR – 3 years
MV CHANNAHON – 2 years (IMT vessel)
MV WILLIAM C – 2 years (IMT vessel)
MV WINDY CITY – 2 years (IMT vessel)

The recent U.S. Coast Guard Report to Congress released May 7, 2012 on Improvements to Reduce Human Error and Near Miss Incidents cited the Responsible Carrier Program (RCP) developed by the American Waterways Operators (AWO) as a key significant factor in the decline in oil spills from the towing industry since the late 1990’s. The report was mandated by the Coast Guard Authorization Act of 2010, which directed the USCG to identify the types of human error that could cause oil spills and the most frequent types of near-miss oil spill incidents involving vessels, identify gaps, and make recommendations for improvements. Canal Barge Company is proud to be fully compliant with the AWO Responsible Carrier Program and believe that Safety Management Systems like the RCP are the best way to achieve our goal of zero incidents.

Click here to read the June 8, 2012 AWO Newsletter which featured a story on the report. To access the full report given to the Senate Commerce, Science and Transportation Committee and the House Transportation and Infrastructure Committee, click here.

On May 9, 2012, Canal Barge Company hosted U.S. Coast Guard Cadets Collin Gruin and Joshua Villafane  as a part of the Cadet Towing Vessel Rider Program. The program was launched in the beginning of May 2012 at the academy with an orientation program about the inland towing industry. The program places 16 participating USCG Academy cadets on commercial towing vessels to learn about inland navigation across Coast Guard sectors around the country from where they joined their assigned towboat companies.

CBC Operations and HR leaders provided an orientation on the inland marine industry as well as our company and operations. The cadets also spent time aboard the MV Joseph Merrick Jones learning about our operations first hand. We are committed to working with the USCG on the development of smart regulation and inspection programs to ensure the safety of our crews, equipment and customers’ product. Canal Barge is proud of our mariners, Operations and HR leaders for participating in this important program.

WorkBoat Magazine recently featured a story highlighting the program and highlighted CBC’s involvement. Click here to read the full story on WorkBoat.com.

The US Coast Guard will step up their efforts to inspect inland towboats and tugs July 1, 2011 as a part of the Towing Vessel Bridging Program (TVBP). The TVBP was initiated by a partnership between the Coast Guard and industry to smooth the transition to the forthcoming towing vessel inspection regime. The program allows towboats to be examined for compliance with current regulations to ensure they have a strong foundation for becoming inspected vessels. So far, the USCG has inspected 2,887 towing vessels that volunteered to be inspected in the 26 states that fall under the Coast Guard’s Eighth District, which is headquartered in New Orleans.

Canal Barge Company volunteered for the program and was recognized in October 2010 for achieving 100% compliance with the Towing Vessel Bridging Program. CBC was one of the first inland marine companies to have all 23 vessels awarded Uninspected Towing Vessel (UTV) decals. The decals signify a vessel has satifactorily completed the voluntary examination process through the TVBP. As our fleet grows, we are committed to this inspection program and working with the USCG to ensure the safety of our crews, equipment and customers’ product. Canal Barge is proud of our onboard mariners and our Operations Team that proactively led this voluntary program to completion for our fleet to ensure we always move with confidence.

To read more about the inspection program and the collaboration between our industry and the US Coast Guard click here.