The company will convert its last steam powered vessel, the SS Michipicoten, to diesel power, consistent with the engine replacement completed on the Saginaw in 2008.

The vessel will be taken out of service in December 2010 and is expected to be fully operational by the spring of 2011.

The project has an estimated cost of approximately $15 million and is expected to generate an annual return on invested funds in the mid teens.

Laurence S. Levy, Chairman and CEO of Rand, stated: “The Michipicoten upgrade will significantly improve the vessel’s performance and boost its margin contribution to our overall results.

“This project demonstrates our continued commitment to making investments in our fleet to provide the best available service to our customers.”

Rand’s lenders have committed to amend its existing credit agreement to provide for an additional CDN $20 million of term debt to complete the engine repowering project and other capital expenditures.

“Based on the actions announced today, we believe that commencing with the launch of the repowered Michipicoten in the spring of 2011, Rand should generate approximately $0.90 to $1.00 of free cash flow per share per year, assuming no drastic deterioration in economic conditions,” added Levy.

Edited by Jennifer Denby

Links: www.randlogisticsinc.com