<PAGE>

                                   FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

(Mark One)

          [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934
                 For the quarterly period ended March 31, 1998

                                       OR

          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

            For the transition period from ___________ to __________

                        Commission file number: 33-82624
                          MORAN TRANSPORTATION COMPANY
             (Exact name of registrant as specified in its charter)

        DELAWARE                                            06-1399280
(State or other jurisdiction of                             (I.R.S. Employer
incorporation or organization)                              Identification No.)

                              TWO GREENWICH PLAZA
                          GREENWICH, CONNECTICUT 06830
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (203) 625-7800
              (Registrant's telephone number, including area code)

                                 Not Applicable

                        --------------------------------

(Former name, former address and former fiscal year, if changed since last
report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                    Yes X No
                                 ---------------

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

      As of May 14, 1998, 44,600 shares of the common stock, par value $0.01 per
      share, of Moran Transportation Company, were issued and outstanding.

                                    Page 1
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                           MORAN TRANSPORTATION COMPANY
                                  FORM 10-Q
                                    INDEX

                                                                            PAGE
                                                                            ----
PART 1. FINANCIAL INFORMATION

Item 1. Financial Statements of Moran Transportation
               Company and Subsidiaries

        Consolidated Balance Sheets at December 31, 1997 and
               March 31, 1998                                                 3

        Consolidated Statements of Income for the three
               months ended March 31, 1997 and March 31, 1998                 5

        Consolidated Statements of Cash Flows for the three
               months ended March 31, 1997 and March 31, 1998                 6

        Notes to Consolidated Financial Statements                            7

Item 2. Management's Discussion and Analysis of Financial
               Condition and Results of Operations                            9

PART II.       OTHER INFORMATION                                             10



                                    Page 2
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                          PART I - FINANCIAL INFORMATION

                            Item 1.Financial Statements

                           MORAN TRANSPORTATION COMPANY
                                AND SUBSIDIARIES

                           Consolidated Balance Sheets
                             (Dollars in Thousands)

                                                         DEC 31,      MARCH 31,
                                                          1997          1998
                                                         --------      --------
                                                                     (unaudited)
               ASSETS
               ------
Current assets
  Cash and cash equivalents                              $  9,945      $ 11,547
  Accounts receivable, less allowance for doubtful
    accounts of $288 and $292 at December 31, 1997
    and March 31, 1998, respectively                       14,319        13,388
      Inventory                                             4,161         4,104
      Unexpired insurance and other prepaid expenses        2,487         1,880
                                                         --------      --------
               Total current assets                        30,912        30,919

Investment in joint venture                                 3,164         3,108
Insurance claims receivable                                 2,563         3,841
Fixed assets, net                                         119,920       119,569
Other assets                                                3,731         3,545
                                                         --------      --------
               Total assets                              $160,290      $160,982
                                                         --------      --------
                                                         --------      --------

        See accompanying notes to consolidated financial statements


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                          MORAN TRANSPORTATION COMPANY
                                AND SUBSIDIARIES

                           Consolidated Balance Sheets
                              (Dollars in Thousands)
                                                         DEC 31,      MARCH 31,
                                                          1997          1998
                                                         --------      --------
                                                                     (unaudited)

               LIABILITIES AND STOCKHOLDERS' EQUITY
               ------------------------------------
Current liabilities
   Trade accounts payable                                $  3,602      $  6,301
   Current portion of long-term debt                          168           172
   Accounts payable to joint venture                          477         1,045
   Accrued interest payable                                 4,331         1,990
   Other accrued liabilities                                3,936         2,073
   Backpay liability                                          837           837
   Income taxes payable                                         -           865
                                                         --------      --------
               Total current liabilities                   13,351        13,283

Long-term debt                                             83,252        83,207
Insurance claims reserves                                   7,227         7,419
Deferred income taxes                                      32,450        32,450
Postretirement benefits other than pensions                 4,321         4,430
Other liabilities                                           5,045         4,853
                                                         --------      --------
               Total liabilities                          145,646       145,642
                                                         --------      --------

Commitments and contingencies (Note 4)

Mandatorily redeemable capital stock-4,000 
  shares outstanding                                        1,000         1,000
                                                         --------      --------
Stockholders' Equity

  Common stock, par value $0.01 per share 
    authorized-100,000 shares issued and 
    outstanding 40,600 shares                                   1             1

    Capital surplus                                        10,149        10,149
    Retained earnings                                       3,494         4,190
                                                         --------      --------
    Total stockholders' equity                             13,644        14,340
                                                         --------      --------
    Total liabilities and stockholders' equity           $160,290      $160,982
                                                         --------      --------
                                                         --------      --------

         See accompanying notes to consolidated financial statements


                                     Page 4
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                            MORAN TRANSPORTATION COMPANY
                                 AND SUBSIDIARIES

                           Consolidated Statements of Income
                          For the Three Months Ended March 31,
                    (Dollars in Thousands, except per share amounts)
                                      (Unaudited)

                                                           1997          1998
                                                         --------      --------
Operating revenue                                        $ 24,829      $ 25,712
Cost of operations
    Operating expenses                                     15,982        16,412
    Depreciation                                            1,954         1,977
                                                         --------      --------
Total cost of operations                                   17,936        18,389
                                                         --------      --------
Gross profit                                                6,893         7,323
General and administrative expenses                         3,671         3,757
                                                         --------      --------
Operating income                                            3,222         3,566
Interest expense                                           (2,512)       (2,559)
Interest income                                                31           119
Equity in loss from joint venture                             (97)          (56)
Other income                                                    1            15
                                                         --------      --------
Income before provision for income taxes                      645         1,085

Provision for income taxes                                    240           389
                                                         --------      --------
    Net income                                           $    405      $    696
                                                         --------      --------
                                                         --------      --------

Earnings per share
    Basic                                                $   9.08      $  15.61
                                                         --------      --------
                                                         --------      --------
    Diluted                                              $   8.84      $  15.13
                                                         --------      --------
                                                         --------      --------

Weighted average number of shares 
  outstanding (in thousands)
    Basic                                                    44.6          44.6
                                                         --------      --------
                                                         --------      --------
    Diluted                                                  45.8          46.0
                                                         --------      --------
                                                         --------      --------

          See accompanying notes to consolidated financial statements


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                            MORAN TRANSPORTATION COMPANY
                                  AND SUBSIDIARIES

                        Consolidated Statements of Cash Flows
                         For the Three Months Ended March 31,
                               (Dollars in Thousands)
                                    (Unaudited)

                                                           1997          1998
                                                         --------      --------
Cash flows from operating activities:
   Net income                                            $    405      $    696
                                                         --------      --------
Adjustments to reconcile net income to net
   cash (used for) provided by operating activities:
   Depreciation and amortization                            2,922         3,106
   Deferred income taxes                                     (524)            -
   Equity in loss from joint venture                           97            56

Changes in operating assets and liabilities:
   Accounts receivable                                     (1,280)          931
   Other current assets                                      (160)          664
   Accounts payable and accrued expenses                   (1,820)         (937)
   Income taxes payable                                       738           865
   Insurance claims receivable                               (634)       (1,278)
   Insurance claims reserves                                  182           192
   Other assets and liabilities                              (146)          (83)
                                                         --------      --------
Net cash (used for) provided by operating activities         (220)        4,212

Cash flows from investing activities:
   Capital expenditures                                    (1,954)       (2,569)
                                                         --------      --------
Net cash used for investing activities                     (1,954)       (2,569)

Cash flows from financing activities:
   Repayment of debt                                            -           (41)
                                                         --------      --------
Net cash used for financing activities                          -           (41)

Net (decrease)/increase in cash and cash 
   equivalents cash equivalents                            (2,174)        1,602

Cash and cash equivalents at beginning of period            5,827         9,945
                                                         --------      --------
Cash and cash equivalents at end of period               $  3,653      $ 11,547
                                                         --------      --------
                                                         --------      --------

         See accompanying notes to consolidated financial statements


                                   Page 6
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                           MORAN TRANSPORTATION COMPANY
                                 AND SUBSIDIARIES

                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   (Dollars in Thousands, unless otherwise noted)
                                   (UNAUDITED)

NOTE 1 - MORAN TRANSPORTATION COMPANY
-------------------------------------

The accompanying unaudited consolidated financial statements of the Company 
have been prepared in accordance with generally accepted accounting 
principles for interim financial information. Accordingly, they do not 
include all the information and footnotes required by generally accepted 
accounting principles for complete financial statements. In the opinion of 
management, all adjustments (consisting of normal recurring accruals) 
considered necessary for a fair presentation have been included. Interim 
results are not necessarily indicative of the results that may be expected 
for a full year. These financial statements should be read in conjunction 
with the Company's audited consolidated financial statements for the year 
ended December 31, 1997.

NOTE 2 - CHANGES IN STOCKHOLDERS' EQUITY
----------------------------------------

                                COMMON    CAPITAL    RETAINED
                                 STOCK    SURPLUS    EARNINGS     TOTAL
                                 -----    -------    --------     -----

Balance at December 31, 1997      $ 1     $ 10,149    $3,494     $13,644

Net Income                          -            -       696         696
                                  ---     --------    ------     -------
Balance at March 31, 1998         $ 1     $ 10,149    $4,190     $14,340
                                  ---     --------    ------     -------
                                  ---     --------    ------     -------

NOTE 3 - INCOME TAXES
---------------------

The Company and its wholly owned domestic subsidiaries file a consolidated 
Federal income tax return. The Company accounts for deferred income taxes 
using the asset and liability method as prescribed under Financial Accounting 
Standard No. 109, "Accounting for Income Taxes". The Company provides a 
valuation allowance if it is more likely than not that some portion or all of 
the deferred tax asset will not be realized.


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NOTE 4 - CONTINGENT LIABILITIES
-------------------------------

In February 1994, a lawsuit was filed in the United States District Court for 
the Eastern District of New York by the Town of Oyster Bay (the "Town"), New 
York, against the Company and several other potentially responsible parties 
("PRP"). The Town is seeking indemnification for remediation and 
investigation costs that have been or will be incurred for a Federal 
Superfund site in Syosset, New York, which served as a Town owned and 
operated landfill between 1933 and 1975. In a Record of Decision, issued on 
or about September 27, 1990, the EPA set forth a remedial design plan, the 
cost of which was estimated at $25,000 and is reflected in the Town's 
lawsuit. In an Administrative Consent Decree entered into between the EPA and 
the Town on December 6, 1990, the Town agreed to undertake remediation at the 
site.

While the current state of law imposes joint and several liability upon PRPs, 
as a practical matter, costs of these sites are typically shared with other 
PRPs. The Company believes that its portion of the hazardous materials 
disposed at the site, if any, is insignificant when compared to that of the 
other PRPs. While management is unable to estimate the Company's future 
liability, if any, it does not believe such liability would have a material 
adverse effect on the Company's financial position or results of operations.

NOTE 5 - FINANCIAL STATEMENTS OF GUARANTORS
-------------------------------------------

All of the Company's subsidiaries ("Guarantors") have guaranteed the 
Company's $80 million of First Preferred Ship Mortgage Notes. Accordingly, 
the financial statements of the Guarantors have not been included, 
individually or on a combined basis, because the Guarantors have fully and 
unconditionally guaranteed such Notes on a joint and several basis, and 
because the aggregate net assets, earnings and equity of the Guarantors are 
substantially equivalent to the net assets, earnings and equity of the 
Company on a consolidated basis. Therefore, separate financial statements 
concerning the Guarantors are not deemed material to investors.


                                    Page 8
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

RESULTS OF OPERATIONS
---------------------

THREE MONTHS ENDED MARCH 31, 1997 COMPARED TO THREE MONTHS ENDED MARCH 31, 1998

OPERATING REVENUES: Operating revenues increased by $0.9 million, or 3.6% 
during the first quarter of 1998 as compared to the comparable period in 
1997. Tug services revenues increased by 1.8%, to $15.4 million, primarily 
due to increased harbor docking revenues, partially offset by lower coastwise 
towing. The Company also won a two-year renewal of the New York City 
Department of Transportation contract that began on July 1, 1996 and will now 
expire on June 30, 2000. Marine transportation revenues increased by 6.3% to 
$10.3 million reflecting increased revenues from the transportation of oil, 
scrap and other bulk products, which were partially offset by lower coal 
transportation.

OPERATING EXPENSES: Operating expenses increased by $0.4 million, or 2.7%, to 
$16.4 million in the first quarter of 1998. The increase is primarily due to 
increased costs for outside towing due to the increased activity discussed 
above, partially offset by a decrease in fuel prices during the first three 
months as compared to last year. The Company also had higher drydocking 
amortization expense, compared to the first quarter of 1997.

GENERAL AND ADMINISTRATIVE EXPENSES: General and administrative expenses 
increased by $0.1 million, or 2.3%, to $3.8 million in the first quarter of 
1998. No individual expense categories have increased or decreased materially.

OPERATING INCOME: Operating income increased by $0.3 million, or 10.7%, to 
$3.6 million in the first quarter of 1998. This improvement is primarily due 
to the increased revenues described above, partially offset by higher 
operating and general and administrative costs.

INTEREST INCOME:  Interest income increased by $0.1 million, or 283.9%, to 
$0.1 million in 1998 due to higher invested cash.

NET INCOME:  Net income increased by $0.3 million, to $0.7 million in the 
first quarter of 1998.  The improvement in overall profitability was 
principally driven by higher operating profit.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

Cash and cash equivalents for the three months ended March 31, 1998 increased 
by $1.6 million. This increase was attributable to the factors discussed 
below:

In the three months ending March 31, 1998, net cash provided by operating 
activities was $4.2 million. This was used to fund capital expenditures of 
$2.6 million and resulted in an increase of cash and cash equivalents of $1.6 
million.

The Company believes that cash flow from current levels of operations and, to 
a lesser extent, availability under the Senior Credit Facility, will be 
adequate to make required payments of interest on the Company's indebtedness, 
as well as to fund ongoing capital expenditures.

A subsidiary of the Company has entered into a long-term contract to provide 
tug and barge services to Florida Power & Light, a major Florida utility. The 
five year contract begins on October 1, 1998. Under the terms of the 
contract, the subsidiary is building a number of tug and barge units. Capital 
expenditures associated with the project is expected to be $10 million. The 
Company is currently exploring various financing alternatives.


                                     Page 9
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                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS
            None

ITEM 2. CHANGES IN SECURITIES
        (a) None
        (b) None
        (c) None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES
            None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

        On April 27, 1998, the stockholders of the Company, at their annual
        meeting unanimously elected the following persons to serve as directors:

        Paul R. Tregurtha, James R. Barker, Malcolm W. MacLeod, 
        Jeffrey J. McAulay, Edmond J. Moran, Jr., Andrew Langlois 
        and Mort Lowenthal

ITEM 5. OTHER INFORMATION
            None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

        (a) Exhibits

            27 Financial data schedule

        (b) Reports on Form 8-K.

            None


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                               SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.

                                 MORAN TRANSPORTATION COMPANY

                                 By: /s/ Malcolm W. MacLeod
                                    ----------------------------
                                    Name: Malcolm W. MacLeod
                                    Title: President and Chief Executive Officer

Date:   5/14/98                  By: /s/ Jeffrey J. McAulay
                                    ----------------------------
                                    Name: Jeffrey J. McAulay
                                    Title: Vice President, Finance and 
                                    Administration
                                    (principal financial officer)




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