<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 September 30, 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 November 11, 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 
               September 30, 1997                                             3

            Consolidated Statements of Income for the nine 
               months ended September 30, 1996 and September 30, 1997         5

            Consolidated Statements of Income for the three 
               months ended September 30, 1996 and September 30, 1997         6

            Consolidated Statements of Cash Flows for the nine 
               months ended September 30, 1996 and September 30, 1997         7

            Notes to Consolidated Financial Statements                        8

Item 2.     Management's Discussion and Analysis of Financial 
               Condition and Results of Operations                           10

PART II.    OTHER INFORMATION                                                13

                                  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,    SEPT. 30,
    ASSETS                                                                                   1996         1997
    ------                                                                                   ----         ----
                                                                                                       (UNAUDITED)
<S>                                                                                        <C>        <C>

Current Assets
    Cash and cash equivalents............................................................  $    5,827   $  11,456
    Accounts receivable, less allowance for doubtful 
      accounts of $323 and $541 at
      December 31, 1996 and September 30, 1997, respectively.............................      12,744      12,902
    Inventory............................................................................       4,395       4,378
    Unexpired insurance and other prepaid expenses.......................................       2,065       2,095
    Restricted funds held for contingent consideration (Note 1)..........................      12,000      --
                                                                                           ----------  -----------
        Total Current Assets.............................................................      37,031      30,831

Investment in joint venture..............................................................       2,892       3,078
Insurance claims receivable..............................................................       2,346       2,539
Fixed assets, net........................................................................     121,325     114,524
Shipyard assets held for sale (Note 5)...................................................       3,036      --
Restricted funds held for contingent consideration (Note 1)..............................       1,600      --
Other assets.............................................................................       4,487       3,860
                                                                                           ----------  -----------
        Total Assets.....................................................................  $  172,717   $ 154,832
                                                                                           ----------  -----------
                                                                                           ----------  -----------
</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,      SEPT. 30,
                                                                                              1996          1997
                                                                                              ----          ----
                                                                                                         (UNAUDITED)
<S>                                                                                        <C>         <C>
      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
    Trade accounts payable...............................................................  $    4,486   $   3,637
    Accounts payable to joint venture....................................................       1,066         203
    Accrued insurance payable............................................................         359         402
    Accrued interest payable.............................................................       4,308       1,958
    Other accrued liabilities............................................................       3,868       3,247
    Backpay liability....................................................................         885         885
    Income taxes payable.................................................................         926       1,342
    Liability for contingent consideration (Note 1)......................................      12,000      --
                                                                                           ----------  -----------
        Total Current Liabilities........................................................      27,898      11,674

Long-term debt...........................................................................      80,000      80,000
Insurance claims reserves................................................................       5,989       6,695
Deferred income taxes....................................................................      34,150      31,767
Postretirement benefits other than pensions..............................................       3,995       4,234
Liability for contingent consideration (Note 1)..........................................       1,600      --
Other liabilities........................................................................       6,060       5,201
                                                                                           ----------  -----------
        Total Liabilities................................................................     159,692     139,571
                                                                                           ----------  -----------
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       4,111
                                                                                           ----------  -----------
        Total Stockholders' Equity.......................................................      12,025      14,261
                                                                                           ----------  -----------
Total Liabilities and Stockholders' Equity...............................................  $  172,717   $ 154,832
                                                                                           ----------  -----------
                                                                                           ----------  -----------
</TABLE>

                    See accompanying notes to consolidated financial statements

                                  Page 4

<PAGE>

                          MORAN TRANSPORTATION COMPANY
                                AND SUBSIDIARIES


                        Consolidated Statements of Income 
                     For the Nine Months Ended September 30,
                  (Dollars in Thousands, except per share amounts) 
                                  (Unaudited)
 
<TABLE>
<CAPTION>
                                                                                                1996       1997
                                                                                                ----       ----
<S>                                                                                           <C>        <C>

Operating revenue...........................................................................  $  65,756  $  75,948
Cost of operations
    Operating expenses......................................................................     40,016     48,280
    Depreciation............................................................................      5,774      5,831
                                                                                              ---------  ---------
Total cost of operations....................................................................     45,790     54,111
                                                                                              ---------  ---------
Gross profit................................................................................     19,966     21,837
General and administrative expenses.........................................................     10,790     10,883
                                                                                              ---------  ---------
Operating income............................................................................      9,176     10,954
Interest expense............................................................................     (7,736)    (7,512)
Interest income.............................................................................         88        204
Equity in income/(loss) from joint venture..................................................        122       (564)
Other income/(expense), net.................................................................        191        (36)
                                                                                              ---------  ---------
Income before provision for income taxes....................................................      1,841      3,046
Provision for income taxes..................................................................        732        810
                                                                                              ---------  ---------
    Net income..............................................................................  $   1,109  $   2,236
                                                                                              ---------  ---------
                                                                                              ---------  ---------
Per share of common stock outstanding:
    Net income..............................................................................  $   24.27  $   48.61
                                                                                              ---------  ---------
                                                                                              ---------  ---------
Weighted average number of shares outstanding (in thousands)................................       45.7       46.0
                                                                                              ---------  ---------
                                                                                              ---------  ---------

</TABLE>

                 See accompanying notes to consolidated financial statements

                                  Page 5

<PAGE>

                          MORAN TRANSPORTATION COMPANY
                                AND SUBSIDIARIES
 
                         Consolidated Statements of Income 
                      For the Three Months Ended September 30,
                    (Dollars in Thousands, except per share amounts)  
                                   (Unaudited)
 
<TABLE>
<CAPTION>
                                                                                                1996       1997
                                                                                                ----       ----
<S>                                                                                           <C>        <C>

Operating revenue...........................................................................  $  23,651  $  25,900
Cost of operations
    Operating expenses......................................................................     14,977     16,172
    Depreciation............................................................................      1,928      1,908
                                                                                              ---------  ---------
Total cost of operations....................................................................     16,905     18,080
                                                                                              ---------  ---------
Gross profit................................................................................      6,746      7,820
General and administrative expenses.........................................................      3,724      3,548
                                                                                              ---------  ---------
Operating income............................................................................      3,022      4,272
Interest expense............................................................................     (2,577)    (2,492)
Interest income.............................................................................         29        108
Equity in income/(loss) from joint venture..................................................        105       (296)
Other income/(expense), net.................................................................        (14)       (37)
                                                                                              ---------  ---------
Income before provision for income taxes....................................................        565      1,555
Provision for income taxes..................................................................        231        274
                                                                                              ---------  ---------
    Net income..............................................................................  $     334  $   1,281
                                                                                              ---------  ---------
                                                                                              ---------  ---------
Per share of common stock outstanding:
    Net income..............................................................................  $    7.31  $   27.85
                                                                                              ---------  ---------
                                                                                              ---------  ---------
Weighted average number of shares outstanding (in thousands)................................       45.7       46.0
                                                                                              ---------  ---------
                                                                                              ---------  ---------
</TABLE>

                  See accompanying notes to consolidated financial statements

                                  Page 6

<PAGE>

                          MORAN TRANSPORTATION COMPANY
                                AND SUBSIDIARIES
 
                       Consolidated Statements of Cash Flows 
                       For the Nine Months Ended September 30, 
                              (Dollars in Thousands) 
                                   (Unaudited)
 
<TABLE>
<CAPTION>
                                                                                                 1996       1997
                                                                                                 ----       ----
<S>                                                                                            <C>        <C>

Cash flows from operating activities:
    Net income...............................................................................  $   1,109  $   2,236
                                                                                               ---------  ---------
Adjustments to reconcile net income to net cash provided by operating activities:
    Depreciation and amortization............................................................      8,289      8,726
    Deferred income taxes....................................................................     (1,408)    (2,383)
    Equity in (income)/loss from joint venture...............................................       (122)       564
    Loss on disposal of floating equipment...................................................        128         90

    Changes in operating assets and liabilities:
        Accounts receivable..................................................................       (743)      (158)
        Other current assets.................................................................       (235)       (13)
        Accounts payable and accrued expenses................................................       (360)    (4,640)
        Income taxes payable.................................................................       (298)       416
        Insurance claims receivable..........................................................         45         64
        Insurance claims reserves............................................................        208        706
        Other assets and liabilities.........................................................     (1,894)      (418)
                                                                                               ---------  ---------
Net cash provided by operating activities....................................................      4,719      5,190

Cash flows from investing activities:
    Capital expenditures.....................................................................     (5,987)    (4,461)
    Capital contribution to joint venture....................................................     --           (750)
    Net proceeds from constructive total loss................................................     --          2,800
    Proceeds from sale of leasehold interest.................................................     --          2,850
                                                                                               ---------  ---------
Net cash (used for)/provided by investing activities.........................................     (5,987)       439

Cash flows from financing activities:
    Proceeds from borrowings.................................................................      3,524     --
    Repayment of debt........................................................................     (2,698)    --
    Debt issuance costs......................................................................       (120)    --
                                                                                               ---------  ---------
Net cash provided by financing activities....................................................        706     --
                                                                                               ---------  ---------
Net (decrease)/increase in cash and cash equivalents.........................................       (562)     5,629
Cash and cash equivalents at beginning of period.............................................      3,006      5,827
                                                                                               ---------  ---------
Cash and cash equivalents at end of period...................................................  $   2,444  $  11,456
                                                                                               ---------  ---------
                                                                                               ---------  ---------
</TABLE>

       See accompanying notes to consolidated financial statements

                                  Page 7

<PAGE>

                      MORGAN TRANSPORTATION COMPANY 
                            AND SUBSIDIARIES
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 (Dollars in Thousands, unless otherwise noted)
 
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 
Predecessor. 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 released the remaining $1.6 
million from escrow during the third quarter when a subsidiary of the Company 
terminated its leasehold interest in Jakobson Shipyard.
 
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.............................................................           --           --       2,236       2,236
                                                                                        ---------  -----------  ---------
Balance at September 30, 1997..........................................    $       1    $  10,149   $   4,111   $  14,261
                                                                                  --    ---------  -----------  ---------
                                                                                  --    ---------  -----------  ---------
</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 8

<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 Jakobson Shipyard, Inc. ("Jakobson"), a subsidiary of 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 Jakobson's 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 Jakobson'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 the third quarter of 1997, the owner of the Jakobson Shipyard site sold 
its property to the State of New York and the Town of Oyster Bay. At the same 
time, Jakobson Shipyard, Inc., a subsidiary of the Company, terminated its 
leasehold interest in the property and received $2.9 million. The loss 
related to the lease termination was not material.
 
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 9

<PAGE>
 
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.

RESULTS OF OPERATIONS

Nine months ended September 30, 1996 compared to nine months ended 
September 30, 1997
 
Operating Revenues: Operating revenues increased by $10.2 million, or 15.5%, 
to $75.9 million during the first nine months of 1997 as compared to the 
comparable period in 1996. Tug services revenues increased by 8.5%, to $43.6 
million, primarily due to revenue from the New York City Department of 
Sanitation contract, which began on July 1, 1996. Marine transportation 
revenues increased by 26.3%, to $32.3 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 $8.3 million, or 20.7%, 
to $48.3 million in the first nine months of 1997. The increase is primarily 
due to increased costs for labor, fuel and outside towing resulting from the 
increased activity discussed above. In addition, operating expenses include 
lease payments for the barge Portsmouth, which was placed in service in 
November 1996 and the tug April, which was leased in conjunction with the 
purchase of the barge Massachusetts. The Company expects to purchase this tug 
in the fourth quarter. The Company also had higher dry-docking amortization 
expense, compared to the first nine months of 1996.
 
General and Administrative Expenses: General and administrative expenses 
increased by $0.1 million, or 0.9%, to $10.9 million in the first nine months 
of 1997. During the third quarter, the Company had a favorable medical 
insurance adjustment resulting from favorable claims experience and a 
continued shift to managed care. This favorable adjustment was partially 
offset by certain closing adjustments related to the termination of the 
leasehold interest in the Jakobson Shipyard site. A variety of small cost 
increases accounted for the rest of the variance.
 
Operating Income: Operating income increased by $1.8 million, or 19.4%, to 
$11.0 million in the first nine months 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.
 
Equity in income/(loss) from joint venture: Equity in income/(loss) from the 
Company's joint venture decreased from income of $122,000 in the first nine 
months of 1996 to a loss of $564,000 in the first nine months of 1997. This 
decrease is due to lower rates as well as a dry-docking of the vessel, which 
began in the second quarter of 1997 and was completed mid-way through the 
third quarter. In addition, market conditions in the clean petroleum products 
market have idled the barge New York for much of the rest of the third 
quarter and management believes this could continue through the fourth 
quarter.

Taxes: Taxes were favorably impacted by the realization of a deferred tax 
asset. The Company applied a capital loss carry forward to offset the tax 
gain associated with the termination of the Jakobson Shipyard lease (see note 
5 to the financial statements). This tax asset had been valued at zero due to 
the uncertainty associated with the utilization of the deferred tax asset. 
The Company determined in the third quarter that is was more likely than not 
that the asset could be utilized.
 
Net Income: Net income increased by $1.1 million, to $2.2 million in the 
first nine months of 1997. The improvement in overall profitability was 
principally driven by higher operating income and lower taxes, partially 
offset by the decrease in equity in income/(loss) from joint venture.

                                  Page 10

<PAGE>

Three months ended September 30, 1996 compared to three months ended
September 30, 1997
 
Operating Revenues: Operating revenues increased by $2.2 million, or 9.5%, to 
$25.9 million, during the third quarter of 1997 as compared to the third 
quarter of 1996. Tug services revenues decreased by 4.4%, to $14.2 million, 
primarily due to lower shipdocking and coastwise towing revenues. Marine 
transportation revenues increased by 33.0% to $11.7 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 $1.2 million, or 8.0%, to 
$16.2 million in the third quarter of 1997. The increase is primarily due to 
increased costs for labor and fuel due to the increased activity discussed 
above. In addition, operating expenses include the lease payments for the 
barge Portsmouth, which was placed in service in November 1996 and the tug 
April, which was leased in conjunction with the purchase of the barge 
Massachusetts. The Company expects to purchase this tug in the fourth quarter.

General and Administrative Expenses: General and administrative expenses 
decreased by $0.2 million, or 4.7%, to $3.5 million in the third quarter of 
1997. During the third quarter, the Company had a favorable medical insurance 
adjustment resulting from favorable claims experience and a continued shift 
to managed care. This favorable adjustment was partially offset by certain 
closing adjustments related to the termination of the leasehold interest in 
the Jakobson Shipyard site.
 
Operating Income: Operating income increased by $1.3 million, or 41.4%, to 
$4.3 million due to the increased revenues described above, partially offset 
by higher operating costs.

Interest Expense: Interest expense decreased modestly due to the December, 
1996 repayment of a term loan entered into in December, 1994.
 
Equity in income/(loss) from joint venture: Equity in income/(loss) from the 
Company's joint venture decreased from income of $105,000 in the third 
quarter of 1996 to a loss of $296,000 in the third quarter of 1997. This 
decrease was due to lower rates as well as a dry-docking of the vessel, which 
began in the second quarter of 1997, and was completed mid-way through the 
third quarter. In addition, market conditions in the clean petroleum products 
market have idled the barge New York for much of the rest of the third 
quarter and management believes this could continue through the fourth 
quarter.

Taxes: Taxes were favorably impacted by the realization of a deferred tax 
asset. The Company applied a capital loss carry forward to offset the tax 
gain associated with the termination of the Jakobson Shipyard lease (see note 
5 to the financial statements). This tax asset had been valued at zero zero 
due to the uncertainty associated with the utilization of the deferred tax 
asset. The Company determined in the third quarter that is was more likely 
than not that the asset could be utilized.
 
Net Income: Net income increased by $0.9 million, to $1.3 million in the 
third quarter as the result of higher operating income and lower taxes, 
partially offset by lower equity in income/(loss) from joint venture.

                                  Page 11

<PAGE>

LIQUIDITY AND CAPITAL RESOURCES
 
Cash and cash equivalents for the nine months ended September 30, 1997 
increased by $5.6 million. This increase was attributable to the factors 
discussed below:
 
During the nine months ending September 30, 1997, net cash provided by 
operations of $5.2 million, together with net proceeds from a constructive 
total loss of $2.8 million and net proceeds from the sale of a leasehold 
interest of $2.9 million were used to fund capital expenditures of $4.5 
million (including the purchase of the barge Massachusetts) and to fund a 
capital contribution to joint venture of $0.8 million, primarily to fund a 
dry-docking for the barge New York.

A subsidiary of the Company has entered into a long-term contract to provide 
tug and barge services. Under the terms of the contract, the subsidiary will 
build a number of tug and barge units over the next twelve months. The total 
capital associated with this project is expected to be $8 to $10 million. The 
Company is exploring various financing alternatives.
 
The Company believes that cash flow from current levels of operations, the 
proceeds from the new financing to build the tug and barge units described 
above 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 
renewed its Senior Credit Facility during the second quarter of 1997. It now 
expires in July, 2000. In connection with this renewal, the parties agreed to 
certain interest rate reductions and the addition of a new net worth 
covenant, among other changes.

                                  Page 12

<PAGE>
 
                           PART II--OTHER INFORMATION
 

Item 1  Legal Proceedings 
           None
Item 2  Changes in Securities 
           None

Item 3  Defaults upon Senior Securities 
           None
                               
Item 4  Submission of Matters to a Vote of Security Holders
           None

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 13

<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: 11/11/97                BY: /s/ Jeffrey J. McAulay 
                                  -----------------------------------------
                                  Name: Jeffrey J. McAulay 
                                  Title: Vice President, Finance 
                                  and Administration 
                                  (principal financial officer)
 
                                      



                                  Page 14

<PAGE>

                               EXHIBIT INDEX


Exhibit No.               Description of the Document
-----------         -----------------------------------------------------------

   27               Financial Data Schedule (1)




----------------------------------------
(1) Submitted separately, electronically