<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, 1997
 
                                       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 10, 1997, 44,600 shares of the common stock, par value 
         $0.01 per share, of Moran Transportation Company, were issued and 
         outstanding.

                                        Page 1

<PAGE>
                          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, 1996 and
                March 31, 1997                                                3
                                                      

             Consolidated Statements of Income for the three
                months ended March 31, 1996 and March 31, 1997                5
                                                       

             Consolidated Statements of Cash Flows for the three
                months ended March 31, 1996 and March 31, 1997                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


<PAGE>


                           PART I--FINANCIAL INFORMATION
 


                            ITEM 1.FINANCIAL STATEMENTS
 
                            MORAN TRANSPORTATION COMPANY
                                 AND SUBSIDIARIES
 
                             Consolidated Balance Sheets 
                               (Dollars in Thousands)
 
<TABLE>
<CAPTION>
                                                                            
                                                                       
                                                                                     DEC 31,        MARCH 31,
ASSETS                                                                                1996           1997
------                                                                             ----------     ----------
                                                                                                  (unaudited)
<S>                                                                                 <C>            <C>
Current Assets
  Cash and cash equivalents.............................................             $  5,827       $  3,653
  Accounts receivable, less allowance for doubtful
  accounts of $323 and $383 at December 31, 1996 
  and March 31, 1997, respectively......................................               12,744         14,024
  Inventory.............................................................                4,395          4,434
  Unexpired insurance and other prepaid expenses........................                2,065          2,186
  Shipyard assets held for sale (Note 5)................................                   --          3,120
  Restricted funds held for contingent consideration (Note 1)...........               12,000          1,600
                                                                                   ----------     ----------
    Total Current Assets..................................................             37,031         29,017
Investment in joint venture...........................................                  2,892          2,795
Insurance claims receivable...........................................                  2,346          2,980
Fixed assets, net.....................................................                121,325        120,564
Shipyard assets held for sale (Note 5)................................                  3,036             --
Restricted funds held for contingent consideration (Note 1)...........                  1,600             --
Other Assets..........................................................                  4,487          4,237
                                                                                   ----------     ----------
Total Assets..........................................................               $172,717       $159,593
                                                                                   ----------     ----------
                                                                                   ----------     ----------
</TABLE>
See accompanying notes to consolidated financial statements


                                     Page 3

<PAGE>


                          MORAN TRANSPORTATION COMPANY
                                AND SUBSIDIARIES
 
                           Consolidated Balance Sheets
                              (Dollars in Thousands)
 
<TABLE>
<CAPTION>
                                                                                      

                                                                                   DEC 31,    MARCH 31,
LIABILITIES AND STOCKHOLDERS' EQUITY                                                1996        1997
----------------------------------------------------------------------           ----------  ----------
                                                                                             (UNAUDITED)
<S>                                                                             <C>         <C>
Current Liabilities
  Trade accounts payable..............................................           $    4,486  $    4,591
  Accounts payable to joint venture...................................                1,066         994
  Accrued insurance payable...........................................                  359         639
  Accrued interest payable............................................                4,308       1,958
  Other accrued liabilities...........................................                3,868       4,085
  Backpay liability...................................................                  885         885
  Income taxes payable................................................                  926       1,664
  Liability for contingent consideration (Note 1).....................               12,000       1,600
                                                                                 ----------  ----------
      Total Current Liabilities.......................................               27,898      16,416
Long-term debt........................................................               80,000      80,000
Insurance claims reserves.............................................                5,989       6,171
Deferred income taxes.................................................               34,150      33,626
Postretirement benefits other than pensions...........................                3,995       4,075
Liability for contingent consideration (Note 1).......................                1,600          --
Other liabilities.....................................................                6,060       5,875
                                                                                 ----------  ----------
      Total Liabilities...............................................              159,692     146,163
                                                                                 ----------  ----------
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...................................................                1,875       2,280
                                                                                 ----------  ----------
      Total Stockholders' Equity......................................               12,025      12,430
                                                                                 ----------  ----------
Total Liabilities and Stockholders' Equity............................           $  172,717  $  159,593
                                                                                 ----------  ----------
                                                                                 ----------  ----------
</TABLE>
 
                   SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
                                           Page 4

<PAGE>


                          MORAN TRANSPORTATION COMPANY
                                AND SUBSIDIARIES
 
                        Consolidated Statements of Income 
                        For the Three Months Ended March 31, 
                   (Dollars in Thousands, except per share amounts) 
                                   (Unaudited)
 
<TABLE>
<CAPTION>
                                                                                     1996          1997
                                                                                  ---------     ---------
<S>                                                                                <C>           <C>
Operating revenue.......................................................            $  20,809     $  24,829
Cost of operations
    Operating expenses..................................................               12,666        15,982
    Depreciation........................................................                1,922         1,954
                                                                                    ---------     ---------
Total cost of operations................................................               14,588        17,936
                                                                                    ---------     ---------
Gross profit............................................................                6,221         6,893
General and administrative expenses.....................................                3,497         3,671
                                                                                    ---------     ---------
Operating income........................................................                2,724         3,222
Interest expense........................................................               (2,564)       (2,512)
Interest income.........................................................               --                31
Equity in loss from joint venture.......................................                  (37)          (97)
Other income............................................................                   15             1
                                                                                    ---------     ---------
Income before provision for income taxes................................                  138           645
Provision for income taxes..............................................                   77           240
                                                                                    ---------     ---------
    Net income..........................................................            $      61     $     405
                                                                                    ---------     ---------
                                                                                    ---------     ---------
Per share of common stock outstanding:
    Net income..........................................................            $    1.34     $    8.84

Weighted average number of shares outstanding (in thousands)............                 45.6          45.8
                                                                                    ---------     ---------
                                                                                    ---------     ---------
</TABLE>
 
                  SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
                                    Page 5

<PAGE>
 
                          MORAN TRANSPORTATION COMPANY
                                AND SUBSIDIARIES
 
                      Consolidated Statements of Cash Flows
                       For the Three Months Ended March 31,
                             (Dollars in Thousands) 
                                  (Unaudited)
 
<TABLE>
<CAPTION>
                                                                                         1996       1997
                                                                                       ---------  ---------
<S>                                                                                    <C>        <C>
Cash flows from operating activities:
                                                                                       
Net income.................................................................            $      61  $     405
Adjustments to reconcile net income to net                                             ---------  ---------
   cash provided by (used for)
   operating activities:
   Depreciation and amortization...........................................                2,707      2,922
   Deferred income taxes...................................................                 (480)      (524)
   Equity in loss from joint venture.......................................                   37         97
   Loss on disposal of fixed asset.........................................                  128         --

Changes in operating assets and liabilities:
   Accounts receivable.....................................................                  564     (1,280)
   Other current assets....................................................                 (469)      (160)
   Accounts payable and accrued expenses...................................               (2,010)    (1,820)
   Income taxes payable....................................................                  773        738
   Insurance claims receivable.............................................                    3       (634)
   Insurance claims reserves...............................................                   67        182
   Other assets and liabilities............................................               (1,228)      (146)
                                                                                       ---------  ---------
Net cash provided by (used for) operating activities.......................                  153       (220)

Cash flows from investing activities:
   Capital expenditures....................................................                 (441)    (1,954)
                                                                                        ---------  ---------
Net cash used for investing activities.....................................                 (441)    (1,954)

Cash flows from financing activities:
   Proceeds from borrowings................................................                2,250         --
   Repayment of debt.......................................................               (2,400)        --
                                                                                       ---------  ---------
Net cash used for financing activities.....................................                 (150)        --
                                                                                       ---------  ---------
Net decrease in cash and 
   cash equivalents........................................................                 (438)    (2,174)

Cash and cash equivalents at beginning of period...........................                3,006      5,827
                                                                                       ---------  ---------
Cash and cash equivalents at end of period.................................            $   2,568  $   3,653
                                                                                       ---------  ---------
                                                                                       ---------  ---------
</TABLE>

             SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


                                    Page 6 
<PAGE>

                         MORAN TRANSPORTATION COMPANY
                               AND SUBSIDIARIES
                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
                  (Dollars in Thousands, unless otherwise noted)
                                  (UNAUDITED)

NOTE 1--MORAN TRANSPORTATION COMPANY
 
Moran Transportation Company ("Moran" or the "Company") is a Delaware 
corporation, incorporated on June 2, 1994. Moran was organized to acquire 
(the "Acquisition") all of the outstanding common stock of Moran Towing 
Corporation (the "Predecessor"), a company whose subsidiaries provided tug 
services and marine transportation services, primarily on the East and Gulf 
coasts of the United States. On July 11, 1994, the Acquisition was 
consummated and was accounted for as a purchase. In connection with the 
Acquisition, the Predecessor transferred its 20% equity interest in four 
partnerships to entities formed by the stockholders of the Predecessor. When 
the Company acquired the Predecessor, certain contingent liabilities of the 
Predecessor, primarily related to certain limited and defined guarantees 
given by the Predecessor in connection with the partnerships, were assumed. 
These liabilities were fully reserved and funded by placing in escrow $13.6 
million of the purchase price paid by Moran to the stockholders of the 
Predecessors. In February, 1997, $12.0 million of the escrow amount was 
released to the former stockholders upon the release of the Company from the 
partnership guarantees. There was no impact on the Company other than assets 
and liabilities being reduced. The Company expects the remaining $1.6 million 
to be released from escrow during the next six months.
 
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, 1996.
 
NOTE 2--CHANGES IN STOCKHOLDERS' EQUITY
 
<TABLE>
<CAPTION>
                                                                            COMMON       CAPITAL    RETAINED
                                                                             STOCK       SURPLUS    EARNINGS      TOTAL
                                                                         -------------  ---------  -----------  ---------
<S>                                                                      <C>            <C>        <C>          <C>
Balance at December 31, 1996...........................................    $       1    $  10,149   $   1,875   $  12,025
Net Income.............................................................       --           --             405         405
                                                                         -------------  ---------  -----------  ---------
Balance at March 31, 1997..............................................    $       1    $  10,149   $   2,280   $  12,430
                                                                         -------------  ---------  -----------  ---------
                                                                         -------------  ---------  -----------  ---------

</TABLE>
 

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.


                                   Page 7

<PAGE>
 
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--SHIPYARD ASSETS HELD FOR SALE
 
In 1992, the operations of Jakobson Shipyard, Inc. were discontinued. The 
owner of the Jakobson Shipyard site has entered into agreements with the 
State of New York and expects to enter into an agreement with the Town of 
Oyster Bay for the sale of the property. In connection with consummation of 
that transaction, Jakobson Shipyard, Inc. will terminate its leasehold 
interest in the property in return for a payment from the seller of the 
property. In anticipation of this transaction, the Company has capitalized 
$2.4 million of environmental remediation costs which, based upon the 
Company's estimates, are expected to be realized as a result of the 
termination of Jakobson's leasehold interest. Management believes that this 
transaction will not have a material adverse effect on the Company's 
financial position or results from operations.
 
NOTE 6--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

<PAGE>
 
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
 
RESULTS OF OPERATIONS
 
Three months ended March 31, 1996 compared to three months ended March 31,
1997
 
OPERATING REVENUES: Operating revenues increased 19.3% during the first 
quarter of 1997 as compared to the comparable period in 1996. Tug services 
revenues increased by 18.6%, to $15.1 million, primarily due to increased 
coastwise towing and revenue from the New York City Department of 
Transportation contract which began on July 1, 1996. Marine transportation 
revenues increased by 20.5% to $9.7 million reflecting a general improvement 
in the barge markets served by the Company, as well as the revenues generated 
by two new barges operated by the Company, the barge Portsmouth (placed in 
service November, 1996) and the barge Massachusetts (acquired in February, 
1997).
 
OPERATING EXPENSES: Operating expenses increased by $3.3 million, or 26.2%, 
to $16.0 million in the first quarter of 1997. The increase is primarily due 
to increased costs for labor, outside towing and charterhire due to the 
increased activity discussed above. In addition, fuel prices increased during 
the first three months as compared to last year and insurance expense 
increased because of a favorable adjustment in the first quarter of 1996. The 
Company also had higher drydocking amortization expense, compared to the 
first quarter of 1996.
 
DEPRECIATION: Depreciation expense increased by $0.1 million, to $2.0 
million, in the first quarter of 1997. This increase was due to additional 
depreciation arising from final purchase price adjustments and depreciation 
on improvements made to assets.

GENERAL AND ADMINISTRATIVE EXPENSES: General and administrative expenses
increased by $0.1 million, or 5.0%, to $3.7 million in the first quarter of
1997. No individual expense categories have increased or decreased materially.
 
OPERATING INCOME: Operating income increased by $0.5 million, or 18.3%, to
$3.2 million in the first quarter of 1997. This improvement is primarily due to
the increased revenues described above, partially offset by higher operating and
general and administrative costs.
 
INTEREST EXPENSE: Interest expense decreased modestly due to the December,
1996 repayment of a term loan entered into in December, 1994.
 
NET INCOME: Net income increased by $0.3 million, to $0.4 million in the
first quarter. 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, 1997
decreased by $2.2 million. This decrease was attributable to the factors
discussed below:
 
In the three months ending March 31, 1997, net cash used for operating
activities was $0.2 million. This amount, together with capital expenditures of
$2.0 million, (including the purchase of the barge Massachusetts), resulted in a
decrease of cash and cash equivalents of $2.2 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. The Company is currently reviewing
a proposal to renew the Senior Credit Facility, which expires in July, 1997.
 

                                     Page 9
<PAGE>

                           PART II--OTHER INFORMATION
 
ITEM 1. LEGAL PROCEEDINGS
 
        None
 
ITEM 2. CHANGES IN SECURITIES
 
        (a) None
 
        (b) None
 
        (c) On April 21, 1997, the Company issued options to purchase an
            aggregate of 350 shares of Common Stock to two executives of the 
            Company. The exercise price of such options is $250. All 
            transactions described in this Item 2(c) were effected in reliance
            upon the exemption from the   registration requirements of the 
            Securities Act of 1933, as amended, contained in Section 4(2) 
            thereof on the basis that such transactions did not involve any
            public offering.
 
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
 
        None
 
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
 
        On April 21, 1997, 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

                                    Page 10
 
<PAGE>

                                   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: 5/14/97                   By: /s/ Jeffrey J. McAulay 
                                    -----------------------
                                    Name: Jeffrey J. McAulay
                                    Title: Vice President, Finance 
                                    and Administration 
                                    (principal financial officer)
 
                                  Page 11