Rand Logistics, Inc. CEO Interview: Laurence S. Levy

• On 11:16 am EDT, Tuesday October 6, 2009

67 WALL STREET, New York - October 6, 2009 - The Wall Street Transcript has just published its Transportation and Logistics Report offering a timely review of the sector to serious investors and industry executives. This 81 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: China Export Tax -- Overcapacity in the Shipping Industry -- Market Balance -- Traffic Flow -- Asia-Pacific Region -- Import/Export Traffic -- Beneficiaries of Financial Strength -- Terminating Markets -- International Business -- Tanker Companies Versus Dry Bulk Companies -- Chinese Stimulus -- Real Demand Versus Stimulus Demand -- Monitoring Potential Acquisitions -- Automobile Industry -- Demand in Emerging Countries -- Falling Demand -- Future Oversupply -- Growth of Fleets -- Pickups in Infrastructure Spending -- Navigating the Downturn -- Supply & Demand -- Chinese Cell Phones -- Mobile Phone Market Growth -- Future Growth -- Stimulus Programs -- Temporary Boosts -- Inventory Stabilization -- Affects of Declines in Passenger Flights -- Capacity of Passenger Aircraft -- Improvement in Volumes -- Pricing & Margins -- Restructuring -- Forms of Consolidation -- Investing in Infrastructure -- Wage Concessions -- Railroad Expansion

Companies include: Diana Shipping (DSX); Star Bulk Carriers (SBLK); Nordic American Tankers (NAT); Overseas Shipholding Group (OSG); General Maritime (GMR); Federal Express (FDX); UPS (UPS); Forward Air (FWRD); Expeditors International (EXPD); Express-1; Tsakos Energy Navigation (TNP); Navios (NM); Vale (VALE); Excel (EXM); Teekay (TK); DryShips (DRYS); UTi Worldwide (UTIW); Old Dominion (ODFL); Arkansas Best (ABFS); J.B. Hunt (JBHT); Con-way (CNW); Atlas Air (AAWW); Air Transport Services Group (ATSG); Norfolk Southern (NSC); Union Pacific (UNP); CSX (CSX); Canadian National Railway (CNI); C.H. Robinson (CHRW); Kuehne and Nagel; Deutsche Post; YRC Worldwide (YRCW); Dynamex (DDMX); Ryder ®

In the following brief excerpt from the 81 page , Laurence S. Levy, CEO of Rand Logistics, Inc., discusses the outlook for the sector and for investors.

TWST: Would you please begin with a brief history and overview of your company?

Mr. Levy: Rand Logistics is a Jones Act- and Canada Marine Act-registered shipping company that focuses on bulk commodity shipping on the Great Lakes. The company was founded in the mid-1990s by Captain Scott Bravener, who today remains President of Lower Lakes, our operating division. We have grown from a startup to a company that today operates 12 vessels, shipping bulk commodities primarily in the River Class segment on the Great Lakes.

TWST: What is the significance of the U.S. Jones Act and the Canadian Marine Act for your company?

Mr. Levy: The Jones Act is an act of Congress that requires vessels that are transporting product between United States ports to be manufactured in the United States. It also requires that the crewmen operating the vessels be United States citizens and that the company be controlled by American citizens. The Canada Marine Act has a somewhat similar set of rules and regulations relating to Canadian-flagged vessels. We are the only significant operator on the Great Lakes that operates under both the United States and Canadian flags.

TWST: What kind of advantage does that provide to your company?

Mr. Levy: We have the unique capability of being able to deliver commodities for our customers not only between U.S. ports and Canadian ports, but also between Canadian ports themselves and U.S. ports themselves. In the case of delivering between Canadian ports, we would utilize our Canadian-flagged vessels, and in the instances where we need to deliver between the U.S. ports, we would utilize our United States-flagged vessels. This increases our flexibility and ability to more efficiently service our customer base.

TWST: Which producer and consumer industries in the U.S. and Canada do your customers come from?

Mr. Levy: Our customers tend to be significant large companies, including Carmeuse, Koch Industries, Algoma, Anheuser-Busch and Cargill to name a few. The major commodities that we carry are limestone, representing approximately 39% of our total carriage in 2009; grain, representing about 25% of our total carriage; iron ore, representing approximately 13%; salt, representing approximately 9%; and coal, representing approximately 11%. All of these percentages relate to our fiscal year 2009, ended March 31, 2009.

TWST: Which industries or agricultural producers is your business most sensitive to? How can investors understand or predict how well you are doing?

Mr. Levy: Each of the commodities that I've described is utilized in different markets, and that diversity has played to our advantage during this difficult economy. In this environment we have seen the demand for iron ore decline significantly on the Great Lakes. In fact, volumes are down this year compared to last year by as much as 65%. We are fortunate in that regard, in that we have intentionally minimized our exposure to iron ore, since we perceive it to be one of the most volatile commodities. The demand for stone is largely driven by the construction market and the federal highway program. The tonnage carried on the Great Lakes overall this year is down by approximately 45% compared to last year. I would highlight that in our company's case, we have had a significantly smaller decrease in limestone carriage than the overall Great Lakes due to strong relationships with our customers that have provided the volume we need. We also have a very cost-efficient operating model, so we have not suffered nearly as much as the overall Great Lakes trade might indicate. We have actually seen good markets in both our grain and salt trades, which have benefited from the demand for those end products. Grain is primarily used in domestic consumption and in the case of salt, it is primarily used for roadwork in Canada.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 81 page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

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