Kirby Corporation (NYSE: KEX) is the largest owner and operator of tank barges in the U.S., with more than 1,000 barges and towboats that are used to transport liquid goods - mostly oil products - on inland rivers. Marine transportation of chemical products in key areas like the Mississippi River System and Gulf Intracoastal Waterway provides over 80% of its revenue. Diesel engine services and overhauls account for the rest. ^[1]

With a fleet of inland tank barges twice as large as its biggest competitor, Kirby offers customers a fast delivery time and benefits from economies of scale in purchasing equipment and marketing its services. ^[2]Around 66% of Kirby’s revenue comes from petrochemical transportation, and higher demand for petrochemicals led to increased production of 3%, 8%, and 1% in the first, second, and third quarters of 2007 respectively.^[3][4][5] Key customer Exxon Mobil as well as many others have production centers on Kirby’s inland river routes. Capturing the greater transportation needs of these companies has fueled revenue growth of 22.4% in 2007.^[6] Kirby earns revenues from renting ships for a flat fee per day and from contracts including crew and fuel costs. Expenses grew at 16% in 2007, 6% less than revenue growth, caused in part by greater usage of Kirby’s barges, and is reflected in income growth of 28% in the marine transportation segment.^[7][8]

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