Rand Logistics Makes Significant Investment to Enhance Operating Efficiency

Retiring Oldest Vessel from U.S. Fleet
NEW YORK--(Business Wire)--
Rand Logistics Inc. (Nasdaq: RLOG; RLOGW; RLOGU) ("Rand") today
announced the planned repowering of one of its Canadian-flagged
vessels with a new highly automated emissions compliant power plant.

The project, estimated to cost approximately $13 million, is
expected to generate an annual mid-teens return and will be completed
in April 2008, at which time the vessel will be fully operational. The
repowering is expected to improve operating margins due to an increase
in speed and a reduction in fuel consumption, labor, maintenance and
other operating costs.

Additionally, Rand has decided to permanently retire the Calumet,
the oldest and smallest vessel in its fleet. The capital investment
required to enable the vessel to generate a satisfactory rate of
return over the next five years was not justifiable. The removal of
the Calumet from the U.S. market, combined with the previously
announced sale of one of the three acquired WMS vessels to Canadian
registry, will reduce U.S. Great Lakes shipping capacity by 3 million
tons. The retirement of the Calumet will not have a material impact on
Rand's cash flow.

Laurence S. Levy, Chairman and CEO of Rand, said, "The Canadian
vessel upgrade will significantly improve the vessel's performance and
boost its margin contribution to our overall results. This vessel will
be better equipped to service our strong customer base in a more
efficient and timely manner. We could not justify the costs necessary
to extend the life of the Calumet, which is the oldest vessel in our
fleet with the least amount of carrying capacity. We believe despite
removing capacity from the market, we will be able to continue
servicing our network of blue-chip customers without a significant
impact to our results or operations. We continue to operate in an
environment where freight demand significantly exceeds capacity, and
we are well positioned to capitalize on this opportunity to further
grow our business."

About Rand Logistics

Rand Logistics, Inc. is a leading provider of bulk freight
shipping services throughout the Great Lakes region. Through its
subsidiaries, the Company operates a fleet of ten self unloading bulk
carriers, comprised of nine River Class vessels and one River Class
integrated tug/barge unit, and three conventional bulk carriers, of
which one is operated under a contract of affreightment. The Company
is the only carrier able to offer significant domestic port-to-port
services in both Canada and the U.S. on the Great Lakes. The Company's
vessels operate under the U.S. Jones Act - which dictates that only
ships that are built, crewed and owned by U.S. citizens can operate
between U.S. ports - and the Canada Marine Act - which requires
Canadian commissioned ships to operate between Canadian ports.

Forward-Looking Statements

This press release may contain forward-looking statements (within
the meaning of the Private Securities Litigation Reform Act of 1995)
concerning the Company and its operating subsidiaries. Forward-looking
statements are statements that are not historical facts, but instead
statements based upon the current beliefs and expectations of
management of the Company. Such forward-looking statements are subject
to risks and uncertainties, which could cause actual results to differ
from the results included in such forward-looking statements.

Rand Logistics, Inc.
Laurence S. Levy, 212-644-3450
Chairman & CEO
or
INVESTOR RELATIONS COUNSEL:
The Piacente Group
Lenny Santiago, 212-481-2050
Lenny@tpg-ir.com

Copyright Business Wire 2008