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April 18, 2007
American Commercial Lines Accelerates Organic
Growth Initiatives; Opens Houston, Texas
Headquarters for its Liquids Transportation Division
JEFFERSONVILLE, Ind., April 17 /PRNewswire-FirstCall/ -- American
Commercial Lines Inc. ("ACL" or the "Company") (Nasdaq: ACLI) announced
today it is accelerating several organic growth initiatives designed to
pull more freight onto the inland waterways system for barge
transportation. Barge transportation is the lowest cost, cleanest, safest
and most fuel efficient mode of transportation in the U.S. and is currently
estimated to be operating at 50% of capacity. Commenting on these initiatives, Mark R. Holden, President and CEO,
stated, "We are seeing progress on the demand side of our business in
winning more freight for our transportation division and in improving our
asset utilization. As a result, we are accelerating certain aspects of our
strategy to foster organic growth, including:
-- Establishing the Headquarters of our liquids transportation division in
Houston, Texas.
-- Increasing our liquid tank barge capacity by over 15% during 2008 with
the addition of 30 new 30,000 barrel capacity tank barges, totaling
approximately $75 million in capital expenditures.
-- Accelerating our dry cargo barge retirements as a result of improved
asset utilization by retiring an additional 200 units, bringing the
total number of retirements during the 15 month period to over 500
units, or 20% of our dry cargo fleet and canceling over 100 dry cargo
barges that were to be built during 2008 for our transportation
division.
Given the success to date on both the demand side and the supply side
of our business, we are very encouraged with our strategic direction. Over
the course of the next few years, we would expect to significantly change
our portfolio mix of commodities. During 2006, our transportation revenues
were comprised of 32% grain, 28% bulk, 24% liquids, 8% coal and 8% steel.
We would like to see our mix of business as 40% liquids, 20% coal, 20%
bulk, 10% grain, 5% steel and reserve 5% of our capacity for emerging
markets. We have worked very hard over the past few years to position the
Company for growth. We have the best safety record in the industry and a
new and reconditioned liquid tank barge fleet which compares very nicely to
the industry in both condition and age. In addition, we are operating in
the market with scheduled barge service which provides shippers with
'on-time' service. Our strategy's success to date will ultimately allow us
to haul more freight with fewer barges."
American Commercial Lines Inc., headquartered in Jeffersonville,
Indiana, is an integrated marine transportation and service company
operating in the United States Jones Act trades, with annual revenues of
more than $940 million as of December 31, 2006. For more information about
ACL generally, visit http://www.aclines.com.
Forward-Looking Statements This release includes certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on management's present expectations
and beliefs about future events. As with any projection or forecast, these
statements are inherently susceptible to risks, uncertainty and changes in
circumstance. Important factors could cause actual results to differ
materially from those expressed or implied by the forward-looking
statements and should be considered in evaluating the outlook of American
Commercial Lines Inc. Risks and uncertainties are detailed from time to
time in American Commercial Lines Inc.'s and its subsidiaries' filings with
the SEC, including the Form 10-K for the year ended December 31, 2006 filed
by American Commercial Lines Inc. American Commercial Lines Inc. is under
no obligation to, and expressly disclaims any obligation to, update or
alter its forward- looking statements, whether as a result of changes, new
information, subsequent events or otherwise.

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