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National Security Multi-Mission Vessel Achieves First Construction Milestone with Steel Cutting Ceremony

December 15, 2020

Philadelphia – TOTE Services, LLC, (“TOTE Services”) and Philly Shipyard, Inc., (“Philly Shipyard”) today began a new era in maritime education with the cutting of steel for the new National Security Multi-Mission Vessel (NSMV) at Philly Shipyard. This is the initial major construction milestone for the first purpose-built, state-of-the-art training vessel for America’s state maritime academies. In addition to providing world-class training for America’s future mariners, the NSMV will be available to support humanitarian assistance and disaster relief missions.

“This new state-of-the-art modern school training ship will be a tremendous addition to the U. S. Flag fleet, be available to respond to disaster relief efforts, and support about 1,200 jobs in Philly Shipyard,” said U.S. Secretary of Transportation Elaine L. Chao.

Construction of the NSMV will help recapitalize our nation’s maritime training fleet, strengthen America’s industrial base, and directly support more than 1,200 shipyard jobs in Philadelphia, Pennsylvania.

“For more than a decade, MARAD has been working to make the NSMV a reality for America’s state maritime academy cadets who deserve state-of-the-art training ships,” added MARAD Administrator Mark H. Buzby. “Thanks to the strong bipartisan support that the NSMV has received in Congress and the leadership of Secretary Chao, this program will further advance excellence in American maritime education and reignite the jobs engine that is America’s shipyards.”

In May 2019, MARAD awarded TOTE Services, LLC, (TOTE Services), an industry leader in ship management, marine operations, and vessel services, a contract to be the Vessel Construction Manager (VCM) for the NSMV program. This contract is an innovative approach to federal shipbuilding where the government benefits from commercial best practices for ship design and construction.

In April 2020, TOTE Services awarded Philly Shipyard, Inc., a leading shipyard in the United States, a contract to construct up to five NSMVs.

“TOTE Services is proud to have been awarded a contract by MARAD to be the vessel construction manager for this new, state-of-the-art training ship that will help provide qualified officers to support the domestic maritime industry,” said TOTE Services President Jeff Dixon. “Each of us at TOTE Services is thrilled to be part of this historic investment in the U.S. maritime industry, and are working closely with MARAD and Philly Shipyard to advance this new class of vessel built by union labor in a U.S. shipyard with U.S.-made steel and U.S.-made engines.”

TOTE Services is working with its design partners – Glosten, Inc., Philly Shipyard, and Philly Shipyard’s subcontractors, including the design team at DSEC – to deliver the first NSMV in early 2023.

Steinar Nerbovik, Philly Shipyard President and CEO said: “This is a tremendous honor and recognition of our history of building high-quality ships over the last 17 years. This project begins a new chapter in our history, a new customer and the first in series, which is a challenge we are eager to meet. I am confident that our workforce will deliver ships that the state academy cadets will be proud to sail for many years to come.”

The NSMV program is an important investment in the U.S. shipbuilding industry, which supports nearly 400,000 American jobs.

As part of the contract, Philly Shipyard will be working with domestic mills to supply steel for the vessels and U.S. manufacturers to provide key ship equipment, including GE Wabtec, a part of GE Transportation, which is manufacturing the engines and generators, GE Transportation for the main generator engine, Cummins USA for the emergency generator set, and Bronswerk for the air conditioning systems.

The NSMV will feature numerous instructional spaces, a full training bridge, and have space 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.

In addition to being a state-of-the-art training and educational platform, the NSMV is a highly-functional national asset designed to fulfill numerous roles. Each ship will feature modern hospital facilities, a helicopter pad, and the ability to accommodate up to 1,000 people in times of humanitarian need. Adding to the NSMV’s capability, it will provide needed roll-on/roll-off and container storage capacity for use during disaster relief missions.

TOTE Services has ordered the first two NSMVs and the President’s budget request for Fiscal Year 2021 includes sufficient funding for TOTE Services to order the third ship. Construction of

the first two NSMVs will replace training ships at SUNY Maritime Academy and Massachusetts Maritime Academy, which are both more than 50 years old.

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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 (Oslo: PHLY) and is majority-owned by Aker Capital AS, which in turn is wholly-owned by Aker ASA. Aker is a Norwegian industrial investment company that creates value through active ownership. Aker’s investment portfolio is concentrated on key Norwegian industries that are international in scope: oil and gas, fisheries and biotechnology, and marine assets. Aker’s industrial holdings comprise ownership interests in Aker Solutions, Kvaerner, Aker BP, Aker BioMarine, Ocean Yield and Akastor. For more information about Philly Shipyard, please visit www.phillyshipyard.com.

Hyak Supply Chain Now Saltchuk Logistics

June 1, 2020

Hyak Supply Chain, which oversees Carlile and Shoreside Logistics, became Saltchuk Logistics on June 1, 2020. The rebrand came a year after the introduction of the holding company led by Rick Murrell, retired CEO of Tropical Shipping.

“This brings front and center the credibility of the Saltchuk name to our efforts,” said Murrell in an announcement to his leadership team. “Our objective is to continue to strengthen and profitably grow our existing businesses, provide defect-free service to our customers, and add new profitable niche opportunities that enhance the earnings of the Saltchuk enterprise.”

Other than the name, there are no changes to the structure or role of the holding company.

Learn more on the company’s website, www.SaltchukLogistics.com.

Tropical Shipping Enters Suriname Market with Fastest Transit Time

May 4, 2020

Only Eight Days from Florida to Suriname

Paramaribo, SurinameTropical Shipping has announced it will serve the Port of Paramaribo with once-weekly sailings beginning May 14. The new eight-day transit will be the fastest service between Florida and Suriname. Tropical will ship everything from small packages to refrigerated cargo, dry goods, building supplies and vehicles. Based in South Florida, Tropical has served The Bahamas and Caribbean, including Guyana, for more than 50 years and added Belize to its ports of call in 2019.

“Moving into the Suriname market is a natural fit for Tropical,” said Tropical Shipping Assistant Vice President Mark Lopez. “It enables us to integrate our Caricom neighbor into Tropical’s network for inter-island commerce and provide an on-time, reliable supply chain to Suriname from the U.S. and Canada.”

Tropical Shipping uses state-of-the-art technology that allows customers to track their cargo for the entire journey, including at sea. Tropical is known for its on-time service and good communication with its business partners, something those customers have come to depend on.

“When you’re in the food business, you need a carrier that’s reliable,” said Willie Hamed, owner of Plaza Extra, one of the largest grocery store chains on St. Thomas and St. Croix. “We need to get fresh produce, meat, milk and other items consistently, and Tropical has provided us excellent service for more than 30 years. If there’s a delay on the mainland, they let us know, so we can plan for that. We couldn’t do what we do without them.”

Southbound service to Suriname will depart the Port of Palm Beach every Thursday and arrive in Paramaribo each Friday of the following week. The northbound 11-day service will depart Suriname on Friday and arrive in the U.S. on a Tuesday. Tropical has retained Best Maritime Services as its Suriname agent.

For more information on Tropical Shipping and the new Suriname service, visit: www.tropical.com/news/2020/tropical-shipping-announces-a-new-service-to-suriname

Shoreside Logistics Receives Foreign Trade Zone Designation

May 4, 2020

Customers benefit with cost-savings and improved cash flow

Jacksonville, FLShoreside Logistics is pleased to announce its designation as a Foreign Trade Zone (FTZ). An FTZ is a secured site considered outside U.S. Customs territory where foreign cargo can be stored while delaying, reducing or eliminating import duties. By using Shoreside as their FTZ, businesses only pay duties once the cargo leaves the foreign trade zone, in the case of imported raw materials, once the final product enters U.S. commerce. The goal of the FTZ program is to stimulate economic growth through foreign commerce within the U.S., and Shoreside believes the timing of its new designation will be an asset to customers.

“We’re pleased to provide our customers with the many cost-saving benefits that operating under an FTZ offers,” said Shoreside Logistics President Tim Nelson. “From import duty reduction, deferral, and even elimination—an FTZ designation helps us improve cash flow for our customers, which is especially helpful during this time of economic uncertainty.”

Shoreside Logistics operates 100,000 sqft of warehouse space about five miles from JAXPORT. The company’s administration building, truck maintenance shop, driver facilities and truck parking are located on 14 acres just a couple of miles away from the warehouse. Shoreside has been part of the Jacksonville supply chain since 2002 and its services include drayage, warehousing, consolidation, intermodal transportation, Customs brokerage as well as managing the Customs Examination Station contract for the local U.S. Customs Border Patrol. Becoming an FTZ site is a natural fit and a benefit to the Jacksonville community as a whole.

“We are thrilled to welcome Shoreside to JAXPORT’s FTZ,” said JAXPORT Foreign Trade Zone Manager Deborah Lofberg. “The continued growth and success of our FTZ program, including the addition of businesses like Shoreside, helps bring more cargo, jobs and economic opportunity to our community.”

Using Shoreside as an FTZ also allows importers to file weekly Customs entries instead of each time a shipment enters the country, another significant cost-savings for businesses importing numerous shipments each week.

For more information on Shoreside’s FTZ service, visit: www.shoresidelogistics.com/foreign-trade-zone

New ASD-90 Tug Arrives in Long Beach

May 2, 2020

The state-of-the-art tug Jamie Ann will provide tanker escort and ship assists throughout the region

Jamie Ann is greeted in Port of Long Beach by an escort and fire boat display

PORT OF LOS ANGELES, CA – MAY 2, 2020 – The Jamie Ann, the first of four new ASD-90 tugs constructed by Nichols Brothers Boat Builders for the Saltchuk family of companies, arrived today in her new homeport of Long Beach. Powerful enough to escort the largest tankers and container ships calling on ports in the U.S. West Coast, Jamie Ann will provide tanker escort and assists for Foss Maritime’s customers in the Ports of LA/Long Beach area.

Along with her 6866 horsepower and 90ST bollard pull, the Jamie Ann was built to the most stringent emission standards. Her two MTU Tier 4 engines meet the EPA’s highest standards, reducing particulate and nitrogen oxide emissions to near zero through a Selective Catalytic Reduction system. The vessel’s upgraded safety features are equally impressive and focus on crew safety on deck, wheelhouse visibility, winch operations, and sound abatement in the engine room and staterooms.

“The Jamie Ann was built to satisfy the requirements of the State of California – requirements we believe will soon be required of the rest of the country and the world,” said Janic Trepanier, Foss Maritime Project Manager. “Her innovative design offers greater operating efficiencies by producing lower emissions resulting in less maintenance downtime.”

The Jamie Ann is the first of four ASD-90 tugs constructed at Nichols Brothers Boat Builders in Freeland, Washington. Her three sisters: the Sarah Avrick, the Leisa Florence, and the Rachael Allen are due to deliver this year for service within the Saltchuk Marine family of companies.

“We are excited to see Jamie Ann arrive in her new homeport,” said Jason Childs, CEO of Saltchuk Marine. “Her addition to the Foss fleet demonstrates our continued commitment to our mariners, our customers, the environment, and the State of California.”

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