Ingram Industries, Inc. & Subsidiaries - Page 17




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          crane.  The engine mounts are either modified or replaced, and              
          the replacement engines (in new or rebuilt condition) are                   
          installed.  The towboat’s air, water, fuel, and exhaust systems             
          are then modified to the extent necessary to accommodate the new            
          or rebuilt engines, and the new or rebuilt engines are connected            
          to these systems of the towboat.  The decking and exhaust stacks            
          are reinstalled, and the new or rebuilt engines are operationally           
          tested, thus completing the repowering process.  The process of             
          repowering a towboat with new or rebuilt engines takes                      
          approximately 3 to 5 months.                                                
               The representative engines were no longer being manufactured           
          by General Motors during the years in issue.  The costs                     
          associated with installing two new or rebuilt Electro-motive                
          Division (EMD) engines in a representative towboat (excluding the           
          costs of the engines themselves and any costs associated with               
          replacing a reduction gear system, a tailshaft, a propeller or              
          other equipment) would have been approximately $200,000 during              
          the years in issue.  If modifications or upgrades are required              
          for the reduction gear, tailshafts, propellers, or other                    
          equipment in connection with a repowering, the installation costs           
          of a repowering could reach $500,000.  In addition, because a               
          repowering takes 3 to 5 months, that results in a loss of use of            
          the vessel for a period of time far in excess of the 10 to 12               
          days for the procedures performed by petitioners.                           






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Last modified: May 25, 2011