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National Security Multi-Mission Vessel Achieves Construction Milestone with Keel Laying

December 10, 2021

PHILADELPHIA – TOTE Services, LLC, (“TOTE Services”) an affiliate of TOTE, LLC (“TOTE Group”) today marked a significant construction milestone at a keel laying ceremony for the first of up to five new purpose built, state-of-the-art training vessels for America’s state maritime academies at Philly Shipyard, Inc. (“Philly Shipyard”), the sole operating subsidiary of Philly Shipyard ASA (OSE: PHLY). These new vessels – known as National Security Multi-Mission Vessels (NSMVs) – are designed to provide world-class training for America’s future mariners and to support humanitarian assistance and disaster relief missions in times of need.

“Today’s first NSMV keel laying is a critical milestone in an innovative effort that is producing state-of-the-art vessels in an American shipyard that will both train the next generation of American mariners and provide a new disaster response capability for the Nation,” said Acting Maritime Administrator Lucinda Lessley. “We commend everyone who is working hard to keep this effort on schedule and on budget, and we look forward to the final delivery of the first ship.”

The keel laying is a ceremonial recognition in which the first grand block of the vessel is loaded into the building dock. Keel laying traditions are said to bring good luck to the ship during construction and to the captain, crew and cadets that will sail on the vessel throughout her operating life. The first NSMV is scheduled to be delivered to SUNY Maritime College in 2023.

“As part of shipbuilding tradition, the keel laying ceremony invites good luck in the construction and life of a ship as the first prefabricated block is lowered into the building dock,” said Steinar Nerbovik, President and CEO of Philly Shipyard. “Today, represents a momentous achievement in U.S. maritime education and a significant investment in the local economy and job creation.”

The NSMV is an important investment in America’s shipbuilding industry, which supports nearly 400,000 U.S. jobs. Each NSMV will be built using 7,000 metric tons of steel produced by U.S. mills and fabricated by skilled labor. The first of four main generator engines, manufactured by Wabtec Corp. in Grove City, PA, recently arrived at the shipyard and will be lowered into the hull in the first quarter of 2022.

The NSMV will feature numerous instructional spaces, a full training bridge, and accommodations for up to 600 cadets to train in a first-rate maritime academic environment at

sea. State maritime academies graduate more than half of all new officers each year—the merchant mariners who help keep cargoes and our economy moving. Many also support U.S. national security by crewing military sealift vessels.

The U.S. Department of Transportation’s Maritime Administration (MARAD) selected TOTE Services to be the vessel construction manager (VCM) for the NSMV program in May 2019 to ensure the utilization of best practices in commercial ship construction. As an industry leader in vessel services, ship management, and marine operations, TOTE Services will oversee the development of these new vessels, which will provide a strong U.S. maritime fleet, crewed by the world’s best-trained merchant mariners. In April 2020, TOTE Services awarded Philly Shipyard a contract to construct up to five NSMVs. These ships will be owned and operated by MARAD.

“TOTE Services’ contract with MARAD demonstrates a new acquisition process to federal shipbuilding, where the government benefits from commercial best practices to design and construct vessels that are built by union labor in a U.S. shipyard with U.S.-made steel and U.S.-made engines,” said TOTE Services President Jeff Dixon. “Our aim is straight – we’re committed to the success of this program and to delivering these vessels for MARAD, so that our future cadets have the modern training platforms they deserve.”

Congress has appropriated funding to replace aging training vessels at SUNY Maritime College, Massachusetts Maritime Academy, Maine Maritime Academy, and Texas A&M Maritime Academy, respectively. TOTE Services retains an option for a fifth NSMV for the California State University Maritime Academy if additional funding is appropriated by Congress.

“This historic maritime event is the realization of a vision many years in the making made possible by the partnership between the State Maritime Academy Presidents, the Department of Transportation, the Maritime Administration, and Members of Congress,” said RADM Michael Alfultis, President, the State University of New York Maritime College. “I am grateful to each of them for their efforts and support of this essential program that will shape the maritime industry’s future and improve the education of mariners to come. Our cadets look forward to learning and training on this state-of-the-art vessel.”

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About TOTE Services

TOTE Services, LLC (“TOTE Services”) is a leading U.S.-based ship management company that skillfully and expertly provides crewing and technical services to meet the needs of commercial, privately owned and U.S. Government vessels. Since 2015, TOTE Services has overseen construction and management of the world’s first LNG powered container ships, activated U.S. training ships to support disaster relief and managed many MARAD vessels. TOTE Services, along with TOTE Maritime Alaska, LLC and TOTE Maritime Puerto Rico, LLC, comprise the TOTE group of companies. The TOTE group is part of the Saltchuk family of companies. www.toteservices.com

About Philly Shipyard

Philly Shipyard, Inc. (PSI) is a leading U.S. shipbuilder that is presently pursuing a mix of commercial and government work. It possesses a state-of-the-art shipbuilding facility and has earned a reputation as a preferred provider of oceangoing merchant vessels with a track record of delivering quality ships, having delivered around 50% of all large ocean-going Jones Act commercial ships since 2000. PSI is the sole operating subsidiary of Philly Shipyard ASA. Philly Shipyard ASA is listed on the Oslo Stock Exchange (OSE: PHLY) and is majority-owned by Aker Capital AS, which in turn is wholly owned by Aker ASA (Aker). Aker is an industrial investment company that exercises active ownership to create value. Aker has ownership interests in oil and gas, renewable energy and green technologies, maritime assets, marine biotechnology, and industrial software, and its portfolio includes companies like Aker BP, Aker Horizons, Aker BioMarine, Cognite, and Aker Solutions. For more information about Philly Shipyard, please visit www.phillyshipyard.com.

About SUNY Maritime College SUNY Maritime College educates dynamic leaders for the global marine transportation industry, shipping business, engineering, energy, facilities management, finance, the armed forces, and public service. Students choose from 11 undergraduate majors including five ABET-accredited engineering programs and two master’s degree programs. Students participate in 17 varsity athletic teams and more than 40 clubs and organizations, ROTC options, and U.S. Coast Guard license programs. The license program prepares students to navigate, power, and operate marine vessels

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