The Waterways Journal
15 October 2007
Consol Energy Inc. announced last week that it has acquired Tri-River Fleeting Harbor Services Inc. and Tri-River Marine Inc. The deal was closed on October 3; terms were not disclosed.
With the arrangement, Consol Energy acquires control of eight towboats that operate along the Monongahela and Ohio rivers.
"The addition of eight vessels through this acquisition will increase our efficiency and expand our fleeting services for our traditional customers along the Upper
Ohio River System," said James C. Grech, senior vice president of Consol Energy Sales Company. "It will also enable Consol to take advantage of Tri-River's current market of transporting aggregates and materials other than coal to a new customer base.
"Consol Energy's more than 125 years of experience along the inland rivers dovetails nicely with the successful operation of Tri-River's assets, especially when you include our purchase of Mon River and J.A.R. assets from the Guttman Group in 2006."
With the Tri-River acquisition, Consol Energy adds 60 new employees and increases its fleet of towboats to 27 vessels. With the purchase, no additional barges were added to Consol's current fleet of 650 barges.
"One synergy evident with the purchase is that Tri-River has experience transporting limestone used for scrubbers at power plants burning coal to generate electricity," said Grech. "As more such scrubber units come online in the next few years, that experience will be beneficial to Consol in terms of our existing and new markets."
During 2006, Consol Energy's river operations transported 24.5 million tons of coal and other commodities, including 11.1 million tons of coal produced by company mines.
Consol Energy Inc. has 20 bituminous coal mining complexes in six states and reports proven and probable coal reserves of 4.5 billion tons. In addition, the company is a majority shareholder in one of the largest U.S. producers of coalbed methane gas, CNX Gas Corporation.