Texas based energy company Genesis Energy has advised that the company has completed a transaction that will see the company with an interest in the marine transportation business.

Entering into a partnership with TD Marine and the Davison family of Ruston, Louisiana, the joint venture, to be known as DG Marine Transportation, acquired the inland marine transportation of Grifco Transportation.

The acquisition will enable the new venture to obtain and operate twelve barges and seven push boats, however DG Marine Transportation intend to place into service an additional eight barges and three push boats during the first quarter of 2009.

The fleet will continue to trade under the Grifco Transportation banner and be staffed by its existing employees.  The operations of the company will include the service of refineries and storage terminals along the Gulf Coast, Intra-coastal Canal and western river systems of the United States, including the Red, Ouachita and Mississippi Rivers on which Genesis has significant existing terminals.

The Chief Executive Officer of Genesis Energy, Grant Sims, back in June had remarked that the joint venture was an excellent opportunity for Genesis as it provided an expedient avenue into the marine transport industry in addition to allowing for “significant strategic opportunities for the transportation of heavy refined products and crude oil with our existing supply and logistics segment.”

The final breakdown of ownership of DG transportation will see Genesis own 49 percent of the joint venture with TD Marine owning the remaining 51 percent.

Source: Business Wire and SEC Info

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