Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Alex Brand – Stephens Inc.
[George Pickel] – Stephens Inc.
This is actually [George Pickel] for Alex. Just so I'm sure Mike, you're building 13 tankers for yourself this year and you may or may not build covered hoppers at the end of the year, right?
Mike Ryan
The 13 are the remaining ones from 2008. They're not new for 2009 they're just rollovers from 2008.
[George Pickel] – Stephens Inc.
Right, right of the 24.
Mike Ryan
Right. Part of that spend was already work in process at year end.
[George Pickel] – Stephens Inc.
All right, so of those additional 13 that are being built, how many, the question is how many of those are replacements and how many dry barges are you planning on retiring this year?
Mike Ryan
Well the dry barge piece George, is going to be something we're going to have to assess probably as we get further into the year. If we get, as we get into the second half of the year, first we have to assess whether or not there's demand for it and whether the economics tell us to do it or not.
So we won't lock into an exact amount we'll probably just take a look at what's available as far as the space to build at the end of the year, second half of the year on the dry side and then we'll make a decision if we can put it in, do we know what's going to go right into service.
The question on the liquids, how many are replacement and how many are new? I believe most of that replaced is new capacity for us. Now, there is an element of replacement in there, but this is new capacity that we feel comfortable we are going to have out in the marketplace and we will be able to fill.
[George Pickel] – Stephens, Inc.
Okay, and the second part of my question must have sounded confusing, was how many of your existing dry barges are you retiring this year?
Mike Ryan
Oh, that is going to be in the 150 to 180 range, so what our program was looking at replacing on a one for three basis. So, if we are in the 150 to 180 range, what we would be contemplating building is somewhere in the 50 to 60 range if we chose to build.
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