Tug Market Report - Marcon International, Inc [PDF]

Marcon International, Inc.

P.O. Box 1170, 9 NW Front Street, Suite 201 Coupeville, WA 98239 U.S.A. Telephone (360) 678 8880 Fax (360) 678-8890 E Mail: [email protected] http://www.marcon.com

Vessels and Barges for Sale or Charter Worldwide

May 2013

Tug Market Report Following is a breakdown of available anchor handling coastal, ocean and harbor tugs. Separate reports available on inland river pushboats and anchor handling tug supply vessels. Horsepower Under 1,000

1,000 – 2,000

2,000 – 3,000

3,000 – 4,000

4,000 – 5,000

5,000 – 6,000

6,000 7,000

7,000 – 8,000

8,000 – 9,000

Mar 1996

199

163

59

65

18

7

8

7

4

4

550

Jan 1997

178

159

83

65

19

6

9

5

5

2

532

Jan 1998

139

142

72

46

14

9

6

6

5

2

432

Jan 1999

174

143

83

81

35

10

2

5

5

1

536

Jan 2000

161

145

72

62

27

15

3

4

7

2

498

Jan 2001

138

133

81

72

34

20

5

7

8

2

500

Jan 2002

117

134

85

67

38

22

2

5

6

4

480

Jan 2003

152

176

96

71

40

21

2

4

6

5

573

Jan 2004

117

140

77

67

29

21

1

5

12

3

472

Jan 2005

117

141

71

69

28

21

1

11

9

2

470

Jan 2006

97

125

90

66

21

16

5

6

8

1

435

Jan 2007

77

114

97

68

25

10

5

4

7

0

407

Jan 2008

73

118

105

58

19

13

2

7

1

1

397

Jan 2009

73

94

95

76

29

19

6

5

2

3

402

Feb 2010

74

136

121

125

47

36

9

7

3

4

562

Feb 2011

66

111

137

142

80

47

10

15

8

5

621

Aug 2011

69

119

121

132

66

46

14

23

7

4

601

Nov 2011

74

127

123

143

80

45

17

15

6

3

633

Feb 2012

75

133

132

153

81

45

14

17

7

1

658

May 2012

79

150

127

145

67

39

10

11

5

1

Aug 2012

86

166

150

153

79

42

14

12

8

1

634 711

Nov 2012

91

172

161

163

86

42

16

15

8

4

758

Feb 2013 May 2013 - Worldwide

92 90

166 175

167 183

153 159

73 84

34 37

17 19

15 15

8 7

2 4

727 773

May 2013 - U.S.

20

27

26

18

9

7

6

5

1

0

119

May 2013 – Foreign

70

148

157

141

75

30

13

10

6

4

654

9,000 Plus

Avg. Age - Worldwide

1976

1984

1988

1993

1996

1991

1991

1983

1999

Avg. Age - U.S.

1966

1972

1966

1971

1973

1966

1983

1980

1998

-

Avg. Age - Foreign

1979

1986

1992

1996

1998

1997

1994

1985

1999

1982

Charter - Worldwide Charter - U.S. Charter - Foreign

Total

1982

31

61

85

77

40

34

10

16

16

13

5

10

21

12

5

5

3

5

1

2

69

26

51

64

65

35

29

7

11

15

11

314

Up Since Last Report

383

Down Since Last Report

Market Overview Of the 12,552 vessels and 3,832 barges that Marcon currently tracks, 4,778 are tugs with 773 currently officially on the market for sale worldwide, up 6.3% since February 2013 and from up 2.0% from November 2012. Of the tugs for sale, 42.8% of foreign and 92.4% of U.S. tugboats are direct from Owners. 246 or 31.8% of the tugs worldwide, primarily foreign flagged, were built within the last ten years, are newbuilding re-sales or currently under construction – compared to 31.50% at the last report. 60 (7.8%) are over fifty years of age and two are 75 years of age or older. 11 have no age listed. The two oldest tugs Marcon currently has listed are both 82 years old. These “old ladies” are balanced by 11 newbuildings up to 7,200HP scheduled for delivery through 2013.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

1

Marcon International, Inc. Tug Boat Market Report – May 2013

Breakdown by Built &BHP Built 1930 1939 1941 1943 1944 1945 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Unknown Total

9000

1 1 1 1 1 1 1

1 2

1 2

1 1 1

1 1 1 2

1 1

1

3 2 1 2

3 1 1 3 2 5 1 2 1 2 1 2 1 1 2 3 2 1 4 2 1 1

2

1 5 2 1 1 1 1

1 2

4 3

8 90

1 2 1 2 3 1 1 2 1 3 4 6 2 2 4 4 2 2 4 9 2 7 6 1 4 5 6 3 1 1 2 3 2 3 3

4 5 4 1 1 1 4 3 3 2 1 4 1 4 1 2 18 1 1 175

1 2 2

1 1 1 2 3 1 3 1 2 2 3 5 4 3 6 5 6 4 6 1 9 7 2 1 2 1 1 1 1 1 2 2 1 4 2 1 2 2 2 1 1 1 8 6 5 4 3 7 8 4 13 3 5 183

1

3 4 2 1 4 1 3 8 3 3 3 2 2 3 9 1 2 2 4 1 3 2 2 4

1 1 1 1 3 2 3 2 3 3 1

2

2

1

1 1 2 1 2 1

1 2 1 1

1 1

4 2

1 1 1

1 1 1 1 2 1 1 1

2 2 1

1 2

1 1

1 1

1 1 1 3 1

1 3

3 6 5 11 10 14 3 13 7 4 159

1 4 3 1 1 2 4 4 4 3

2 2 3 6 8 5 1 84

2 1 1 1 1 1 1 1

1 2 1 5 7

2 1 1

3 1 2

1 37

19

15

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

7

4

Total 2 1 1 3 6 2 2 1 1 2 3 2 3 2 6 4 4 3 3 1 4 4 7 9 11 14 8 7 16 10 16 19 16 23 21 27 17 12 10 30 22 10 7 9 6 3 10 3 5 8 11 5 2 9 12 13 7 6 5 11 10 9 20 17 14 16 20 27 21 37 54 11 20 773

2

Marcon International, Inc. Tug Boat Market Report – May 2013

The majority of tugs Marcon tracks for sale are in Southeast Asia with 151 tugs officially on the market (up from 148 last report), followed by Europe with 133 (vs. 120), 116 in the Far East (100), 115 in the U.S. (132), 77 in the Mediterranean (72), 43 in the Mid East (40), 33 Caribbean (31), 26 where location unstated (21), 21 in Latin America (14), 18 in Canada (18), 16 in Africa (11), 15 in the South Pacific (11) and 9 in Southwest Asia (9). CAT diesels still power most tugs for sale with machinery in 148 or 20% of the tugs Marcon lists. This is followed by 108 Cummins, 62 Yanmar, 59 Niigata, 57 EMD, 34 Deutz, 27 Mitsubishi, 24 Ruston, 19 MAK and 18 GM powered tugs. 196 tugs are powered by machinery from other manufacturers from ABC to Zibo with, as always, 12 Fairbanks Morse boats out there looking for a new home. Conventional single and twin screw tugs prevail with 157 (20.3%) and 458 (59.2%), respectively, for sale worldwide. These are followed by 124 azimuthing tugs (16.0%) on the market, 27 Voith Schneider tractor tugs (3.5%), five triple screw and two shallow draft quad screws (1.0%). Compared to last November 2012’s report, we have 3 fewer twin screw tugs, 15 more single screw, three more azimuthing, one more tractor, one less triple screw and the same number of quad screw tugs for sale. There has been a little juggling around of the locations of the tugs listed, but generally no major change. Greatest changes were in the Europe, Far East and Latin America where a few more tugs are available and in the U.S. with fewer tugs. (Note that locations refer to the actual physical locations and not flag). Marcon currently has listed a record number of 773 tugs worldwide currently on the market officially for sale worldwide, after seeing a slight decline for some reason between November 2012 and February 2013. It does not look like we are going to see any major and steady reduction in the number of worldwide tug listings any time soon. When I was predicting a fall-off in the numbers, I was expecting the world to be further along in an economic recovery than where we are today, four years after the official ending of this latest “Great Recession”. 654 of the tugs presently listed are foreign, up 63 from February 2013 and 44 from last November. Most of the increases comes from more foreign tugs in the 1,000HP to 3,999BHP horsepower ranges, which represent the greatest numbers of tugs listed. The 119 U.S. flag tugs listed for sale are down 29 vessels from November 2012 and down 17 from February 2013. The largest decline in U.S. flag tugs since February 2013 was in the 1,000 – 1,999BHP and 3,000 – 3,999HP ranges, again with the greatest number of tugs listed also within those range. The wide gap still continues today in what most Buyers are willing or able to pay and Seller’s expectations – sometimes up to 50% - and please note that Marcon did not make this market. We only react to it, accurately report on it and try to represent and protect both buyers and sellers fairly. Shooting the messenger does no good. By May 2013, Marcon’s average sale price/BHP was US$ 327/BHP for a “generic” 1979 built tug, down from US$ 334 in November 2012. There is still a lot of downward pressure on second-hand prices. How far it will continue to fall before we see any steady price improvement I can only guess – but it is not “just right around the corner”. There is still a lot of old “cold iron” which first must disappear from the market – especially with the increasing regulatory pressures on older tugs. The number of appraisals Marcon is performing has increased dramatically during first half of 2013. This activity in the past was seen as a forerunner of increased sales, but as they say in small print about investing in the stock market – “past performance is no guarantee of future results”.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

3

Marcon International, Inc. Tug Boat Market Report – May 2013

Recent Marcon Tug Sales & Charters Marcon has sold or chartered ten vessels and barges so far in 2013, including five tugs with a total horsepower of 17,048BHP. Several additional sales and charters are pending. Vessel Management Services, Inc., a Delaware corporation, has sold their twin screw tug “Sinuk” to King River LLC of Palmer, Alaska. The 85.8’ x 28.5’ x 10.0’ depth, model bow tug was built in 1995 by J. Ray McDermott Shipyard in Morgan City, Louisiana. The tug, along with her sister “Siku”, were designed for coastwise towing and lightering of deck cargo / petroleum barges supplying the numerous remote sites and villages in southwestern and western Alaska. “Sinuk” is powered by a pair of CAT 3412DITA diesels totaling 1,248BHP, turning 5-blade stainless steel props through Twin Disc MG540 6.18:1 marine reduction gears. Her stern configuration shrouds both propellers in tunnels, allowing the tug to work at a shallow draft of about 5.5’ light and 8.25’ loaded. Bollard pull for the class is about 25,000lbs. ahead and 18,720lbs. astern. “Sinuk’s” towing gear consists of a Markey TYS-24 single drum winch with a pendant drum, plus push knees forward. Ship’s power is supplied by a pair of 105kW generators driven by CAT 3304s. Tankage includes about 40,000g. fuel, 700g lube oil and 2,800g fresh water. The 117GRT tug is classed ABS +A1, Unrestricted Service, +AMS and carries an ABS International Load Line. “Sinuk” was laid up for the winter in Bethel, Alaska out of the water at the time of purchase. New Owners have renamed the vessel “Ari Cruz”. This is the fifth vessel transaction that Marcon has concluded with the buyer. Marcon has handled over 100 sales and purchases for the seller and acted as sole broker in this sale. Marcon International, Inc. is pleased to announce the sale of the two U.S. flag, 3,900BHP twin screw sister-tugs "Atlantic Service" (exAtlantic Star) and "Brooklyn Service" (ex-Peggy Sheridan, Gulf Star) to private buyers. Both tugs were built in 1975 by Halter Marine Services, Inc. of New Orleans, Louisiana for Sheridan Transportation to handle their 11,000 – 15,000dwt petroleum barges “Hygrade 95” and “S.T. 114”. The tugs both worked for Red Star Towing and Amerada Hess Corp. of New York until the Hess fleet was acquired by Leevac Marine / Hornbeck. The tugs measure 109' length overall x 31' beam x 14' depth. Both “Atlantic Service” and the “Brooklyn Service” are powered by twin EMD 16-645E2 main engines, Falk gears and 4-blade 100” x 76” high-efficiency props, which develops bollard pull of about 34.5 tons and free running speeds of abt. 8.5 – 10kn. Although laid-up at the time of the sale, both tugs were still actively classed ABS +A1, Towing Service, +AMS, Unrestricted Service. Each tug is fitted with a single drum Markey TDS-32 towing winch with a capacity of 2,000' of 2" wire. Other features include raised pilot houses and air conditioned quarters for 10 crew aboard each boat. New owners plan to reactivate both tugs under U.S. flag for use for in-house service. Marcon acted as sole broker in this transaction and has handled multiple sales for Seller.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

4

Marcon International, Inc. Tug Boat Market Report – May 2013

A two-year old, 65 ton bollard pull ASD firefighting tug has been bareboat chartered in Central America for a three year period on a private and confidential basis. This charter follows on the heels of a previously successful six month charter to a different Caribbean client of the same tug which was concluded in March of this year. Marcon acted as sole broker in this latest charter. After six months of charter, Marigny Tug LLC of St. Augustine, Florida (d/b/a Tradewinds Towing) closed on the purchase of the U.S. flag, twin screw, ocean tug “Leslie Foss” (ex-Caribe Pioneer, Leslie Foss) which they had chartered from Foss Maritime of Seattle, Washington. New Owners are in the process of renaming the tug “Simone”, after one of the principal’s oldest daughters. The 120’ x 31’ x 14.9’ depth / 13.5’ draft tug was built in 1970 at McDermott Shipyard in Amelia, Louisiana and underwent a life extension program in 2000. The ABS load-lined tug is powered by EMD 12-645E2s developing a total of 3,000BHP and turning 5-blade 103” x 82” Coolidge props through Lufkin RHS 2524 4.128:1 gears. Tug’s bollard pull is 37.5 tons and free running speed about 12kn. Ship’s power is supplied by two 99kW main and one 75kW emergency gensets, all driven by John Deere 6068s. With her 96,000g fuel capacity, the tug has long-legs which help when making tandem tows with her Markey TDSD-32 double drum winch, tow pins and stern roller. She also carries a hydraulic combination windlass / bow winch with Plasma line for barge handling. To assist in salvage work “Simone” carries a welding machine, hydraulic deck crane, Orville Hook for barge retrieval, 3” portable salvage pump and a full complement of towing shackles, wire bridles, portable running lights and hawsers. The tug has quarters for nine in seven cabins. “Leslie Foss” was the second in a series of four sistertugs built for Foss by McDermott. She was also the second tug of this name - the first being the long-gone, former Miki-class wood, single screw “LT-495” built for the U.S. Army in 1944 and operated by Foss between 1951 and 1968. The second “Leslie Foss’” first job right out of the shipyard was the 5,500nm tow of a new ocean deck barge with oil drilling equipment eventually destined for Prudhoe Bay. During 42 years of Foss’ ownership, “Leslie Foss” spent much of her time towing in the Pacific Northwest and making Alaskan runs, sometimes as far out as the Aleutian Islands chain to the westernmost island of Attu and Shemya - considered to be one of the worst ports in all of Alaska. New owners have kept the tug actively employed on various towing projects in the U.S. Gulf. This is the tug second sale that Marcon has brokered to the Buyer. Marcon has been involved in around a dozen transactions with the Seller. Marcon acted as sole broker in this sale. In addition to a number of other vessels and barges presently under offer or being inspected, sales or charters are pending on six additional vessels including a three year old 5,150BHP AHTS and two additional 65 – 75 ton bollard pull ASD tugs, with Marcon acting as sole brokers. Once these two tugs are delivered, Marcon will have four modern ASD tugs in the 65 – 75 ton bollard pull range on longterm charters at the same time. Marcon has sold or chartered 1,302 vessels and barges to date, including 286 tugs with total horsepower of 883,320BHP, 72 AHTS (342,134BHP) and 34 inland river pushboats (77,750BHP). A full list of sales and charters are available on our website.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

5

Marcon International, Inc. Tug Boat Market Report – May 2013

Once Again – Yet Another Record Number of Tugs Worldwide

Once again the worldwide number of tugs hit another record - even in today’s economy. While information in IHS Fairplay Sea-web only covers “sea-going” vessels over 100GRT, there are many tugs either under that tonnage or in inland service. According to Sea-web, as of May 20th, 2013, there were 15,908 “sea-going” tugs over 100GRT worldwide, up from 15,191 in May 2012, and up 206 vessels from last February’s report. Total horsepower is 41,851,241BHP, up 570,979BHP since February. Even taking into account flags of convenience, the largest national fleet of tugs over 100GRT sails under Indonesian flag, which recently overtook the U.S. for first place in horsepower, after being ahead in the actual number of tugs for some years. The U.S. operates 1,450 “sea-going” tugs over 100GRT, or 9.11% of the world market, totaling 4,814,740BHP (11.50% globalBHP). Average age of tugs worldwide is 21 years with the U.S. flag “sea-going” fleet now at 34 years (built 1979). Top 50 “Sea-Going” Tug Fleets By Units As Of May2013 According to HIS Fairplay Sea-web Flag Worldwide Indonesia United States Of America Unknown Japan Singapore Malaysia Korea, South Panama India Russia Italy United Kingdom Australia China, People's Republic Of Canada Brazil St Vincent & The Grenadines Iran Philippines United Arab Emirates Turkey Spain Netherlands Mexico Venezuela Saudi Arabia Egypt Ukraine Greece France Thailand Vietnam Chinese Taipei Germany Norway Nigeria Cyprus Bahrain Chile Honduras Algeria Malta Argentina Portugal Finland Kuwait Colombia Libya Belgium Sweden

TotalBHP 41,851,241 5,378,335 4,814,740 1,386,064 2,461,692 1,856,708 988,651 1,361,589 1,455,443 1,062,347 1,020,191 1,011,762 805,557 865,252 803,507 638,070 772,580 699,792 411,315 382,197 521,276 497,078 599,201 541,023 525,952 431,725 467,307 434,953 242,449 203,026 380,520 281,083 214,585 241,172 331,266 236,279 175,234 278,257 224,662 265,545 124,181 259,274 304,683 163,380 138,113 152,615 216,886 170,661 138,975 240,365 119,411

% 100.00% % 12.85% 11.50% 3.31% 5.88% 4.44% 2.36% 3.25% 3.48% 2.54% 2.44% 2.42% 1.92% 2.07% 1.92% 1.52% 1.85% 1.67% 0.98% 0.91% 1.25% 1.19% 1.43% 1.29% 1.26% 1.03% 1.12% 1.04% 0.58% 0.49% 0.91% 0.67% 0.51% 0.58% 0.79% 0.56% 0.42% 0.66% 0.54% 0.63% 0.30% 0.62% 0.73% 0.39% 0.33% 0.36% 0.52% 0.41% 0.33% 0.57% 0.29%

# Tugs 15,908 3,323 1,450 819 760 651 488 483 467 398 377 322 253 251 226 220 213 207 185 180 179 177 168 160 157 153 149 147 120 111 108 108 107 97 90 84 80 78 75 70 65 64 60 59 58 57 56 53 53 52 51

% 100.00 % 20.89% 9.11% 5.15% 4.78% 4.09% 3.07% 3.04% 2.94% 2.50% 2.37% 2.02% 1.59% 1.58% 1.42% 1.38% 1.34% 1.30% 1.16% 1.13% 1.13% 1.11% 1.06% 1.01% 0.99% 0.96% 0.94% 0.92% 0.75% 0.70% 0.68% 0.68% 0.67% 0.61% 0.57% 0.53% 0.50% 0.49% 0.47% 0.44% 0.41% 0.40% 0.38% 0.37% 0.36% 0.36% 0.35% 0.33% 0.33% 0.33% 0.32%

AvgBHP 2,631 1,619 3,321 1,692 3,239 2,852 2,026 2,819 3,117 2,669 2,706 3,142 3,184 3,447 3,555 2,900 3,627 3,381 2,223 2,123 2,912 2,808 3,567 3,381 3,350 2,822 3,136 2,959 2,020 1,829 3,523 2,603 2,005 2,486 3,681 2,813 2,190 3,567 2,995 3,794 1,910 4,051 5,078 2,769 2,381 2,677 3,873 3,220 2,622 4,622 2,341

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

Avg Age 1992 2002 1980 1979 1997 2006 2003 1990 1991 1995 1988 1985 1991 1995 1993 1975 2002 2002 1989 1979 1996 1992 1992 2002 1987 1987 1992 1989 1984 1973 1993 1985 1997 1988 1990 1980 1987 2002 1991 2000 1969 1991 2002 1980 1980 1971 1998 1995 1991 2000 1965

6

Marcon International, Inc. Tug Boat Market Report – May 2013

I continue to expect global fleet numbers to decline instead of hitting a record every new market report, but industry-wide statistics are always slow to change. Although today’s worldwide fleet is 1,434 tugs greater than two years ago, most likely many vessels counted are idle or at least under-utilized. Just a real quick sort of Sea-Web data shows 230 tugs listed as “laid-up”, “in casualty or repairing”, or “to be broken up”. At the time of our May 2011 report, the average horsepower for the world’s 14,474 “sea-going” tugs was 2,646BHP with an average year built of 1990. Today’s average of 15,908 tugs is 2,631BHP with a year built of 1992. The U.S. fleet in May 2011 includes 1,492 “sea-going” tugs with an average horsepower of 3,214 and year built of 1978. Today’s U.S. fleet declined 2.8% to 1,450 tugs over the last two years while average horsepower increased slightly to 3,321BHP.

Breakdown of U.S. “Sea-Going” Fleet Following is a breakdown of the U.S. sea-going tug fleet as of May 2013, according to IHS Fairplay Sea-web, compared with last quarter. As of February 2013, the U.S. domestic tug fleet consisted of 1,450 “sea-going” tugs totaling 4,783,238HP. The U.S. flag fleet remained at 1,450 while total horsepower grew by 31,502BHP to 4,814,740HP. High horsepower and large tugs are easy to track, but Sea-web has data on only 52 U.S. tugs under 999BHP. As most of the “under thousand horsepower” tugs in the U.S. are below 100 gross register tons, they are generally not included in the Registry. Not counting pushboats, there are eight to nine hundred additional small tugs in U.S. coastal waters. U.S. Sea-Going Tug Fleet Over 100GRT ByBHP According to Lloyd’s Register as of May 2013 Total # Avg.BHP Avg. LOA Avg. Beam Avg. Depth Avg. Year Built

Unknown BHP 116 88 28 12 1,973

Under 999 52 789 82 23 9 1,952

10001999 270 1,503 87 26 11 1,966

20002999 220 2,357 96 29 13 1,975

30003999 271 3,418 106 32 15 1,980

40004999 246 4,354 106 34 15 1,992

50005999 101 5,447 114 35 17 1,990

60006999 71 6,418 113 38 17 1,999

70007999 52 7,153 137 39 20 1,983

80008999 10 8,066 137 42 21 1,996

9000 Plus 41 11,227 140 45 23 2,004

Total 1,450

Previous U.S. Sea-Going Tug Fleet Over 100GRT According to Lloyd’s Register as of February 2013 Unknown BHP Total #

122

Avg.BHP

Under 999

10001999

20002999

30003999

40004999

50005999

60006999

70007999

80008999

9000 Plus

52

270

221

270

244

97

71

52

10

41

789

1,505

2,356

3,417

4,355

5,446

6,418

7,153

8,066

11,227

Avg. LOA

89

82

87

97

105

106

115

113

137

137

141

Avg. Beam

28

23

26

29

32

34

36

38

39

42

47

Avg. Depth

12

9

11

13

15

15

17

17

20

20

24

1,974

1,952

1,966

1,975

1,980

1,992

1,990

1,999

1,983

1,996

2,004

Avg. Year Built

Total 1,450

Of the 1,450 U.S. flag tugs in Lloyd’s, 204 have unknown engines. 485, or 39% where type is known, are powered by EMDs; 390 (31%) by CATs; 111 (9%) by General Motors / Detroit Diesels and Alco has 4% and Cummins, Fairbanks Morse and M.T.U. are tied with 3% market share each. Of 1,450 U.S. tugs; 388 (27%) and 776 (53%) are conventional single screw and twin screw, respectively. The remaining 20% are 226 azimuthing, 37 triple screw and 23 Voith-Schneider tractor tugs. Two years ago, of 1,492 U.S. flag tugs, 401 or 32% were powered by EMDs, 363 (29%) by CATs and 211 (17%) by General Motors / DD. Some of the change involving EMDs and GM/DDs is probably more a juggling of categories vs. a real change in the market, as EMDs have in the past shown up in records under the GM designation. As expected, there are 62 fewer single screw tugs and 27 more azimuthing tugs in today’s domestic fleet.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

7

Marcon International, Inc. Tug Boat Market Report – May 2013

New Construction, Shipyard and Conversion News th

According to “Fairplay Newbuildings”, as of 20 May 2013, there were 6,193 ships over 299GRT on the World Orderbook, down 212 or about 3.31% from 6,405 ships in February, and showing a further decline from 7,316 newbuildings one year ago. This is the lowest number of ships on the World Orderbook since Marcon started tracking newbuildings over five years ago. Many overseas shipyards continue to face bankruptcy and are laying off even more workers as the World Orderbook continues to shrink. In contrast, of the total number on today’s orderbook, 553, or 8.93% are tugs or “towing / pushing” vessels, up seven from 546 in May. This is, of course, down from a peak of 768 in October 2008, but still healthy. 735 of today’s newbuildings, up 18 from our last report, are OSVs and 280, up 14, are “Offshore – Other”. Of 553 tugs listed by Fairplay under construction, Malaysia leads the order book with 119 tugs being built, down 11 from February. They are followed by China PR at 106 (up 11) tugs, Vietnam 50, Turkey 35, 27 Romania, 22 Brazil, Egypt and Indonesia 19 each, 17 each Poland and Spain, Japan 16, the USA 14, 13 Russia, 11 India, the Netherlands 9, 8 each Qatar and South Korea, Singapore 6, Iran and the UAE 5 each, 4 each Cuba and Peru, 3 Serbia, Canada, Germany, Thailand, the Ukraine and Venezuela 2 each and 1 each Azerbaijan, Belgium, Colombia, Latvia, Libya and South Africa. Of 553 tugs being built, abt. 77.2% are to be delivered in 2013, 19.7% in 2014 and 3.1% during 2015.These figures though do not cover all tugs, towboats and pushers actually under construction. Many ordered by government agencies or navies, or domestic internal trade vs. export in China never show up on the World Orderbook. I would not be surprised to see one hundred and fifty or more tugs added to the orderbook each year If they were included – and this would still exclude the inland river towboats or pushboats operating on the Mississippi River system in the United States and other internal waterways across the world. As of 16th May, MarineLog and Tim Colton U.S. Shipbuilding Contracts tallied 359 vessels and barges on order, excluding inland barges and recreational vessels. Just over 30% is being built for governmental agencies, such as the U.S. and other various Navies, U.S. Coast Guard, Army Corps. of Engineers and police departments. These range from 32’ transportable port security boats for the U.S. Coast Guard (actual order is for up to 80 vessels) to two 85,000ldt aircraft carriers. About 245 of the vessels and barges on order are for traditional commercial operators. These include approx. 30 tugs and 39 inland river pushboats at latest count. Determining the precise number of newbuildings is always like trying to hit a moving target as this is constantly changing, plus there are also others we know of that do not show up on the list. CAT power still leads in popularity for propulsion in new sea-going tugs with main engines in 159 tugs. This is followed by Yanmar in 74 boats, Cummins in 46, Niigata diesels in 43, 33 Wartsila, 14 General Electric, 12 Mitsubishi, 11 MTU, 8 each A.B.C. and Chinese Standard Type, 5 Daewoo, 3 MAN/MAN-B&W, 2 each Daihatsu, Deutz, MaK and Volvo Penta and 1 each with Baudouin, Hanshin, Iveco Aifo, John Deere, MWM and Yamaha. Engines were not listed for 123 tugs. Only 40 tugs below 1,000BHP are shown under construction. As discussed earlier, many lower horsepower tugs are under 299GRT. Summary of Horsepower – Fairplay Worldwide Tug Orderbook Over 299GRT

Tugs

Under

1,000 –

2,000-

3,000-

4,000-

5,000-

6,000-

7,000-

8,000-

9,000-

Over

Unk.

Total

1,000HP 40

1,999HP 83

2,999HP 83

3,999HP 135

4,999HP 13

5,999HP 30

6,999HP 1

7,999HP 0

8,999HP 4

9,999HP 0

10,000HP 5

159

553

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

8

Marcon International, Inc. Tug Boat Market Report – May 2013

Damen Shipyards has introduced their newly designed Damen AHTS 200, a versatile deepwater 89.1m x 22.0m x 7.0m summer draft Anchor Handling Tug Supplier able to operate in water depths in excess of 3,000m. The 3,200mtdw AHTS 200 is the latest addition to the ongoing Damen Offshore Series. Following the company’s ambitions to increase its market share in the offshore industry, Damen heavily invests in designing state of the art vessels for several offshore sub-markets, noticeably the Offshore Support, Offshore Wind, Seismic Research and Transport & Installation industries. Backed by ample R&D and engineering capacity, its own construction yards, specialized partner yards and a rapid expanding service organization, Damen feels confident that the chosen approach will be successful. The Damen AHTS 200 includes a new and innovative winch arrangement which is quite decisive for the overall dimensions and layout of the vessel. For the development of this extensive winch package Damen teamed-up with Huisman Equipment, The Netherlands, which specializes in heavy lift and deepwater cranes, winches and drilling equipment. The deepwater winch package consists of two 400 ton @ 10m/min pull AH/towing drums with a capacity of 3,000m 87mm wire, a 400T pull special handling drum capable of holding 7,000m 87mm wire, two 140T @ 10m/min secondary with 1,600m 208mm rope and a storage winch holding 2 x 3,200m 208mm rope. The electrically driven winches resulting from this cooperation may be considered an innovative approach, as the market is traditionally dominated by lowpressure hydraulics. The electrical-drive winches provide a clean, green, economical, functional and safe solution for the anticipated operations. The vessel is suited to generate 200-250T bollard pull and is fitted with engines in a father-son layout, featuring twin-in single-out gearboxes driving CP propellers in a nozzle. The layout of the propulsion installation may be either diesel-direct, diesel-electric or hybrid, pending on the anticipated operational profile of the vessel. High performance flap-type rudders fitted to rotary vane steering gears facilitate a high degree of maneuverability supported by ample side thrust capacity, including two 900kW tunnel thrusters as well as two 900kW retractable thrusters in fore and aft ship. Forward of the winches ample space has been reserved for the fitting of a high-end ROV system with the possibility of launching through a side door. The high beam AHTS could serve as a suitable platform for mounting a subsea construction crane. The design can easily be upgraded with dedicated anti-heeling systems, moon pools and sophisticated diving systems. The comfortable accommodation can host up to 45 persons in single and double cabins fitted according to the Damen Business or Executive Line comprising modern and durable materials. Special attention is paid to sufficient natural lighting through maximum-sized windows. State-of-the-art infotainment systems, offering multiple levels of data communication, support the functionality and comfort of the vessel. Although driven by its standardization philosophy Damen offers ample opportunities to include owner’s standards and component choices for maximal support of their operations. The vessel is designed following an extensive DNV-class notation, although other class societies may be considered as well. “SL Gabon” delivered in December 2012 represents the first one of a series of two Stan Tugs 4011 ordered by Smit Lamnalco Gabon SA fitted for the basic functions of offshore towing, berthing, anchor handling, pollution control, salvage and fire-fighting. The vessel will provide support in offshore oilfields and assist tanker operations at an onshore terminal. The 40.75m x 11.6m x 4.9m depth twin screw tug is powered by twin CAT 3516C TA HD/C developing a total of 5,000BHP at 1,600RPM through Reintjes 7.526:1 gears to 2,815mm bronze fixed pitch props in kort nozzles. Bollard pull is 74.8 ton. Maneuverability is assisted by a 215kW bow thruster. Towing gear consists of a DMT double drum waterfall winch with a 140 ton brake holding force, Karmoy remote controlled fork / tow pins, two 7.5T tugger winches, a 5T capstan, Mampaey 75 ton disc type tow hook and Heila 1T @ 16.72m. Air-conditioned accommodations are provided for 16 persons. The Panamanian flagged tug is classed BV 1 +Hull, +Mach, Tug Unrestricted Navigation, IWS MON-SHAFT AUT UMS. Hull was built by Santierul Naval Damen Galati in Romania and completed by B.V. Scheepswerf Damen in Gorinchem.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

9

Marcon International, Inc. Tug Boat Market Report – May 2013

Just a few months after opening an office in Stavanger, Damen delivered second Stan Tug to a Norwegian owner - EB Marine A/S - a family-owned diving company, which is one of the oldest diving companies in Norway. This latest order followed an order for a Stan Tug 1004 earlier this year. Damen Shipyards opened the office in October 2012 to serve the offshore industry and Norwegian owners, the first time Damen opened a sales office outside the Netherlands. The STu 1205 was delivered on March 20th in Stavanger. Torgeir Erga, Deputy Manager EB Marine, says: “We have been awarded a contract for the subsea work for the foundations of a new bridge in Molde, in northern Norway, therefore we needed a new tugboat, with a lot of power that had to be delivered in a very short time.” The contract began in April. Sales Manager of Damen Shipyards Stavanger, Remko Hottentot, said: “The advantage of Damen is that we can deliver from stock and this proved ideal for EB Marine. Damen builds its standard vessels for stock, which means that companies can still take part in tenders even if they don’t immediately have resources in-house. Damen can then provide a vessel in just two to three weeks.” EB Marine visited Damen in Gorinchem and took the new vessel “Broltus” out for a trial. Mr. Erga was impressed with how much power the Stan Tug 1205 has. “Probably half of our work involves pulling heavy, weighted pipelines so the tug will be very suited to this work, as well as the foundation contract. We were looking at yards in Norway and Turkey, but with Damen, we know that is has built tugs for decades so we know exactly what we are getting.” After some modifications, including extra navigation equipment, she sailed from Gorinchem to Rotterdam where she was transported on a Wagenborg carrier to Stavanger. “Broltus” in Norwegian translates as someone who does a “hell of a job”. Mr. Erga laughed, saying that this is what EB Marine expects from its new tug. Multraship Towage & Salvage BV continued its fleet renewal with two new Damen ASD 2810 tugs with state-of-the-art, FiFi 1 “Multratug 26” (Hull 1236) and “Multratug 27” (Hull 1237) building for delivery June/July 2013. Contracts for the 28.7m x 10.4m x 4.6m tugs were signed during Multraship’s annual client gathering in Terneuzen on 18th April, where Multraship managing director Leendert Muller said, “We are delighted to have concluded deals for these vessels, built to a proven design by a yard with extensive experience and expertise in this sector. The new tugs will be mostly engaged in harbor towage activities in the Zeeland Seaports and Antwerp areas. In addition to primary duties, they will also be on standby, ready to respond in the event of fire- or explosion-related emergencies in the western and central part of the River Scheldt, as part of a February 2013 commitment entered into with the Zeeland Safety Region to keep two FiFi 1 tugs on standby. The new tugs provide confirmation of Multraship’s commitment to invest for both the present and future. In towage and salvage, if you don’t invest, you risk getting left behind. It is also important to demonstrate to all sectors of the maritime industry that you are prepared to invest money, time and resources in everything from research & development to fleet renewal in order to provide a valuable towage, emergency response and salvage capability,” said Muller, who currently serves as VP, International Salvage Union. The tugs, powered by twin 1,920kW CAT 3516BHDs, develop a total 5,220HP and have minimum bollard pulls of 62.5mt and max speeds of 13.5kn. They are being built at Santierul Naval Damen Galati in Romania, where Multraship has an office providing towage and salvage services as its part of covering the Black Sea. “Coastal Voyager” was named by Acta Marine in Amsterdam on 28th February at the Het Scheepvaartmuseum (National Maritime Museum). Both Damen and Acta look back on a festive event of the new Shoalbuster, which was delivered precisely on the contract date. “That is customary”, remarked Damen Shipyards Hardinxveld MD Jos van Woerkum, who added that the multi-purpose vessel has been custombuilt to do dredging and marine contacting projects on hand. “Coastal Voyager” is planned to be deployed for offshore wind farm projects in the North Sea. Acta Marine MD Govert-Jan van Oord says that it is possible to deploy the Shoalbuster anchor handling tug elsewhere, in case its assistance is needed. “End last year, early this year, we also bought three of these vessels from the existing Damen Marine Services charter fleet. The fourth one is newbuild. In fact it is the fifth of the series, as Damen Shipyards Hardinxveld delivered Shoalbuster ‘Coastal Vanguard’ December, 2010.” Van Oord proudly added that – having five Shoalbuster vessels deployed – Acta Marine can be considered as being one of the larger players worldwide in the dredging and marine contracting market, in the oil and gas industry and in the market for offshore wind. Its Shoalbuster 2609s are deployed in the Persian Gulf. The third of the series Shoalbuster 3209 – active in Singapore – and the new vessels are larger: 3,300HP units with a bollard pull of 45-50 tons. These two vessels are sister ships of “Coastal Vanguard”.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

10

Marcon International, Inc. Tug Boat Market Report – May 2013

A symbolic keel-laying ceremony was held on 17th of April in Gorinchem as Damen officially launched the construction phase of 14 ASD Tugs for Kuwait Oil Company. The series consists of two types - 9 of Damen’s recently launched 3212 and 5 units of the well-known 2810 design, with 80 and 50 tons of bollard pull respectively. At the festive launching ceremony Damen was very pleased to host a delegation of Kuwait Oil Company. The two company-logos were welded together as a symbol for the substantial project and the companies’ longstanding relation. The logos will hold a place of honor in Damen’s Romania-based Galati shipyard during the construction period. All 14 tugs will be built there starting shortly, with deliveries scheduled from 2014 onwards. Damen’s naval architects and designers in The Netherlands tailored KOC’s exacting requirements on layout, systems and performances. Existing Damen designs have been masterfully combined with state-of-the-art technology and dedicated features. The new tugs assist tankers at near-shore loading terminals and single point moorings further offshore. All tugs will be equipped with a powerful firefighting system in case of emergency. The cooperation between KOC and Damen dates back to the late 1980s, when Damen delivered its first set of ships to KOC. In the 1990s, Damen delivered a complete new fleet of tugs, crew tenders, work boats and mooring boats to KOC. Damen Shipyards Group is launching a new vessel type in its ASD Tug series. The ASD Tug 2913 has been designed primarily as a highly maneuverable, powerful tug suited for busy harbors where space is limited. The highly esteemed German towage operator Petersen & Alpers GmbH of Hamburg, Germany is the first customer for the new 28.9m x 13.23m tug, which will be delivered end 2014. The new type answers market demand for more powerful tugs as vessels continue to get larger and for more spacious accommodation. Frank de Lange, Damen Sales Director South, North and West Europe, explains why Damen decided to introduce a new tug in the ASD series. “Vessel sizes are increasingly growing, while ports are still restricted to their physical size. Customers were requesting more powerful tugs, but they still have to be compact so they can operate in harbors which are lacking space.” This new tug standard slots in between the Damen ASD Tug 2810 with a 60 tons bollard pull and the powerful, recently introduced offshore terminal ASD Tug 3212. Developing a new compact type with a bollard pull of 75-80 tons was a logical step for Damen, he adds. “For the ASD Tug 2913 we adopted a similar design philosophy as for the new ASD Tug 3212 and although the vessel is primarily a harbor tug, it also has very good sea-keeping capabilities.” At 13m wide, the tug is very stable and comfortable for the crew. The new type has push/pull capabilities and can be fitted with an aft winch as an option. The tug is also the first Damen tug to have a double hull to comply with the latest safety regulations and to answer customer demand. Peter Lindenau, Managing Director of Petersen & Alpers, is very pleased to be the launching customer for the new tug. This will be the second Damen tug in the company’s fleet, following on from an ASD Tug 2411, which has been in operation for the last four years in Hamburg. And indeed, through a previous joint venture via its affiliated company Towmar Baltic in Klaipeda with Smit, Petersen & Alpers also had experience of the Damen ASD Tug 2810. “We have had a good experience with Damen tugs and have also seen our competitors using them!” says Mr. Lindenau. “The crew were very happy with our first Damen tug and that is very important to us. The quality of the build, the 2411’s performance was what we were looking for. It has proven itself in being able to operate bow-to-bow when a lot of ASD tugs have problems doing this properly.” The 70 ton bollard pull ASD Tug 2411 “Peter” built in 2008 is performing well and is great at going alongside, making fast and the thrust is easily controlled with the slipping clutch, he emphasizes. “And with Rolls-Royce thrusters and Caterpillar 3516 engines the acceleration is great. Our new Damen vessel will be particularly suited for the port of Hamburg, which has very small basins. Seagoing vessels are getting bigger and bigger. A highly maneuverable, compact tug with more power was needed. So the Damen ASD Tug 2913 was the right tool for Hamburg.” Low maintenance costs are also important, he says. Petersen & Alpers has had a good experience with the 25.92m x 11.34m x 5.85m draft ASD Tug 2411, which requires only limited maintenance because the coating is such good quality. Crucially, Petersen & Alpers has a great deal of confidence in Damen. “We trust each other, which is the most important. It is not just price but performance, service and maintenance. We are lucky to be the launching customer. We have been able to have a lot of input, with Damen really listening to our requirements.” For instance, Petersen & Alpers requested an oil fired heating system. Mr. Lindenau adds: “Perhaps we look at things in a similar way to Damen, both being family owned companies; we are always considering the next generation, so a long-term, trusting relationship is very important.”

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

11

Marcon International, Inc. Tug Boat Market Report – May 2013

Leningrad shipyard Open JSC Pella concluded a contract with Gryphon Ltd. of St. Petersburg for construction of a new 2,000HP Project 90600 design tug for delivery in September 2014. The 25.4m tug will be powered by CAT C32 diesels and Rolls-Royce US 155 azimuthing drives…… The day before, the keel layout for the close sister-ship “Hull No. 938” was started. “Hull 938” is being built for the Russian Navy Northern Fleet and is expected to be put into operation within the Northern Fleet later this year……The 25.4m ASD tug “RB-398” (Hull No. 936) has been launched and will be delivered to the Russian Navy for operation within the Black Fleet later this year. The 2,000HP tug is fitted with a bow electro-hydraulic anchor-towing-mooring winch, 23T SWL tow hook aft, a Palfinger cargo crane and an 800m3/h external firefighting system with two water monitors and a water curtain system…...Pella shifted the new 25.4m x 8.8m x 4.2m ASD tug “RB395” hull No. 934 to the Baltic Fleet naval base in the port of Baltiysk on 26th December after being accepted. The tug is designed for towing and berthing operations in harbors, roadsteads and coastal areas and classed КМ Arc4 R3 Aut3 Tug by Russian Maritime Register of Shipping. Tug “RB-395” is powered by a pair of 746kW CAT C32 diesels developing a total of 2,000HP to her Rolls-Royce US 155 FP azimuthing drives. Towing gear consists of a forward mounted Fluidmecanica electro-hydraulic anchor-towing-mooring winch providing 10 tons of pull and a 23T SWL quick release tow hook aft. 800m3/h firefighting is provided by two FFS water monitors and a water curtain system. Baltiysk is the westernmost town in Russia and a major naval base for the Baltic Fleet. The town, along with Kalingrad, remains one of only two year-your, ice-free ports along the Baltic Sea coastline available to Russia……The 34.4m x 12.1m x 6.0m depth / 4.4m draft new tug “Alexandr Zryachev” (Hull 502) was successfully delivered 2,600nm in mid-December by Pella by the Northern Sea Route to the Port of Arkhangelsk under her own steam. Upon arrival the tug was put into operation within the fleet of JSC Zvyozdochka of Arkhangelskaya oblast. The twin screw tug is powered by a pair of 1,641kW CAT 3516Bs developing a total of 4,460BHP at 1,600RPM, bollard pull of 63 tons and free running speed of 13kn. Vessel is classed under the Russian Maritime Register…… The sister-tug to the ASD tug “RB-395” above, “RB-392” (Hull 935) was launched with the assistance of the ASD tug “CTP. N 201” on a cold winter’s day and is scheduled to be delivered to the RF Navy and put into operation this year within the Black Fleet. Like her sister-tug, the 2,000HP “RB-392” is powered by twin 746kW CAT C32 diesels with Rolls-Royce fixed pitch US 155 azimuthing drives. Tug is classed КМ Arc4 R3 Aut3 by Russian Maritime Register of Shipping. In February, VT Halter Marine, Inc. of Pascagoula, Mississippi, a subsidiary of VT Systems, Inc., announced a new contract to build an articulated tug barge unit with an option for one additional unit for Bouchard Transportation Co., Inc. The option for the second unit was exercised on 21st March. The barges measures 625’ by 91’ by 47’, have a 250,000-barrel capacity, and will be used to transport liquid petroleum. Both barges are ABS classed and USCG certified for Jones Act service. The 10,000HP twin screw ATB tugs will be classed by ABS as +A1 Towing Vessel, Dual Mode ATB, USCG Subchapter M, and will be equipped with an Intercon coupler system. Construction of the unit will begin during April 2013 at VT Halter Marine’s Pascagoula facility, with delivery scheduled for mid-2015. This unit will enter into Bouchard’s fleet service in New York. Morton Bouchard III, President & CEO of Bouchard Transportation commented: “We are pleased to enter into this contract with VT Halter Marine for the construction of the ATB M/V ‘Bouchard Boys’ and ‘B.No.270’, with an option for the construction of a second unit. The Bouchard Boys & ‘B.No.270’ will compliment Bouchard’s growing gulf coast fleet and further our ongoing commitment to the Jones Act. Bouchard is pleased to have chosen VT Halter Marine for this project due to our long relationship and history of successful projects.” The second will begin fourth quarter 2013 with delivery scheduled for February 2016.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

12

Marcon International, Inc. Tug Boat Market Report – May 2013

Sanmar Denizcilik Ltd. reports that its new build contract to deliver the world’s first LNG powered escort tugs for Buksér og Berging AS of Norway, is proceeding smoothly despite it being ground-breaking technology for the tug sector. Ali Gürün explained: “Cooperation between the shipyard team, the owners and designers Bukser og Berging, the classification society DNV and the Norwegian Maritime Authority is proceeding well. Some 90% of the steel construction is already finished and the critical process of installing the LNG tanks and engines has been completed successfully without any hitches. The rest of the outfitting continues as planned. Furthermore, we do not anticipate any slippage of the original delivery schedule despite the ‘learning curve’. Both vessels will be in service by the end of this year on long term charter with Statoil ASA, the international energy company, and Gassco, the operator of the gas transportation network off the Norwegian coast.” The LNG system has been designed by AGA Cryo and integrated with the Rolls-Royce propulsion system. This single tank LNG system has got full gas redundancy i.e. no diesel back up is required. The vessels, presently designated “Sanmar Hull 15” and “Sanmar Hull 16”, will be equipped with two Rolls-Royce azimuthing drives. A cleaner engine room, less waste oil and no switch-over problems are amongst operational benefits of a gas fuelled propulsion system. Other environmental benefits with the spark ignition gas engines incorporated in the new design include 92% reduced NOx emissions, 17% reduced greenhouse gas emissions, 98-100% reduced SOx emissions and 98% reduced particulates. The system is compliant with Tier III regulations. The vessels will measure 38 x 14.5m, have accommodation for 5 crew and achieve a static bollard pull of 70 tons with about 20% greater efficiency than standard designs. Furthermore, hull and layout design has been optimized for potential installation of 9-cylinder engines to give a bollard pull of 70 tons. Moreover, a DNV classed 120 tons steering-force at 10 knots is not just a revolutionary result but will have considerable appeal in the escort tug market. Smit Lamnalco of Sharjah, UAE, has placed an order with Sanmar for the construction of a pair of 34.0m x 14.5m beam x 6.2m depth / 4.5m draft RAstar 3400 explosion-proof terminal escort tugs. This design has been especially developed by the Canada-based specialist tug design team, Robert Allan Ltd., for LNG terminal operations. The sister ASD configuration vessels are each expected to have a bollard pull in excess of 85 tons and will feature frequency controlled electric escort winches specifically designed for operation in hazardous areas. Other items of deck equipment will also be explosion proof even up to the navigation lights. Sensors able to detect gas in the atmosphere will automatically shut off all engine room vents if any gas is present. These tugs will not only add to the builder’s ever-growing portfolio of available models but will build on its experience with LNG generally. Delivery is expected early 2015. One of Sanmar’s most popular tugs is the neat, compact and yet surprisingly roomy Ulupinar series. Some 15 of this exclusive and versatile ASD model designed by Robert Allan Limited with considerable input from Ali Gurun, project director at Sanmar Denizcilik Ltd., have now been built – with three sold through the auspices of Marcon. “Ulupinar 14”, although completed back in July 2012, has only just been handed over to new owners, UK’s SMS Towage with the new name of “Statesman”. The vessel had spent the intervening six months on a successful charter with Egyptian interests. Measuring 24.40m x 9.15m with a maximum draft of 4.40m, there are various power options available on the Ulupinar series but this version, utilizing a propulsion arrangement comprising a pair of Caterpillar 3512 diesels, each developing 1,230kW at 1,800RPM and driving Rolls-Royce US 155 FP azimuthing thrusters gives bollard pulls ahead and astern of approx. 45 tons and a free-running speed of 13 knots. Winches on fore and aft decks with brake holding loads of 125 tons were supplied by DMT. A Palfinger deck crane and Data Hidrolic tow pins complete the deck machinery fit-out. The main tow winch has capacity for 600m 40mm wire. Clever use of space and a very high degree of quality ensures that both officers and crew enjoy a level of comfort and convenience rarely found in a vessel of just 24m in length. Remarkably low noise levels have been recorded in all areas of living quarters and at approx. 80% engine load are below 60dBA in the two single and two twin berth cabins. Like “Statesman”, the majority of the Ulupinar series so far completed have been exported. The first boat went to Schramm in Germany and this was followed by a repeat order. Several minor modifications were made to the initial design to meet strict German standards and these were incorporated as standard in all subsequent deliveries including three which made their way to the Dominican Republic (through Marcon), another to Russia and three to the Middle East. Sanmar has also retained several to augment its own fleet at the Port of Mersin, the leading port of southern Turkey.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

13

Marcon International, Inc. Tug Boat Market Report – May 2013

On 19th January 2013, Sanmar held a special re-naming and delivery ceremony at its custom-built construction facility located near Istanbul to mark handover of a new, high-spec, fire-fighting terminal tug to leading Norwegian operator, Østensjø Rederi. The 80 ton bollard pull vessel departed Turkey for Norway a couple of days later in the capable hands of a crew from TOS (Transport & Offshore Services). Originally named “Sanmar Terminal VII” during construction to comply with Turkish regulations, the Robert Allen design is now named “Lomax” to match Østensjø’s other tugs which all have names ending in an “x”. It is the 95th tug built by Sanmar. Accepting the vessel on behalf of Østensjø, CEO Johan Rokstad said: “We are happy to be in Turkey for the second time. Since 2006, we have a very good relationship with Sanmar. We have taken delivery of high quality, state-of-the-art vessels.” He concluded by hoping that the two companies would continue working together in the future. In response, Sanmar’s project director, Ali Gurun, said: “We have worked together with Østensjø in great harmony. I always mention that Turkey is amongst the top three nations involved in the construction of high quality tugboats. Now, in addition, I can proudly say that Sanmar has reached the apex in terms of respecting the environment and with our carefully selected business partners, highly qualified employees and talented engineers, we can construct any kind of vessel.” Østensjø is renowned for insisting on highest standards of fit-out aboard its tugs. It is discerning enough to only use builders that it knows can provide the high quality finish to which its crews have become accustomed. “Lomax” is Sanmar’s enhanced version of Robert Allan RAstar 2800 ASD which the builder designates its Terminal Class. It measures 28.0m x 12.6m with an extreme draft of 4.97m and built to ABS A1 Escort Vessel, FiFi 1, Unrestricted Service. Power is provided by a pair of CAT 3516Cs, each developing 2,350kW at 1,800RPM. These turn Rolls-Royce type US 255 Z-drives with 2,800mm four-blade, fixed pitch props. Auxiliary power is supplied by a pair of 150kW CAT C9 generators. The tug achieves a bollard pull region 80 tons with a free-running speed of 13 knots. Winches fitted are also by Rolls-Royce. Forward is a unit capable of dynamic self-tensioning up to 80 tons for escort operations whilst aft is a single drum tow winch having a brake load of 170T. Other deck items include a Palfinger knuckle boom crane, Triplex tow pins and a stern roller. Vessel is fully fendered by Trelleborg. “Lomax” has an exceptionally high standard of air-conditioned accommodations for six – two single officer cabins and two twin crew cabins. Sanitary spaces all have heated floors. The electronics fit-out is also comprehensive with GMDSS A3, Fleet 250, remote operated VHF’s, radar, GPS, chart plotter, DGPS Compass, magnetic compass, auto pilot, echo sounder, AIS, speed log, bridge watch alarm, independent general alarm system from such leading manufacturers as Furuno, Jotron, Alphatron and Kongsberg. “Lomax” arrived at the port of Ulsteinvik, Norway on 7th March delivering the tow of the newbuilding 83.4m x 18.0m x 8.0m depth, Casco X-Bow vessel “Blue Guardian” hull built by ATVT Sudnobudivnyi Zavod “Zaliv” of Kerch, Ukraine for Ulstein Verft AS. “Lomax” sailed under TOS management and crew. Grandweld Shipyards of Dubai launched their first AHTS, “Halul 63” (H097/11) for Halul Offshore Services of Qatar on 4th March. The contract was signed in July 2011 to build and deliver two sister vessels. The 67.0 x 16.8 x 6.8m depth AHTS is completely outfitted and equipped for anchor handling, offshore supply, oil recovery, rescue, standby and other related duties. The 1,800mtdw vessel is classed Lloyds A1 for unrestricted service, and is equipped with dynamic positioning capability of DP2. She is powered by two 2,720kW MAN-B&W 8L27/38 main engines, and is fitted with controllable pitch propellers, two stern tunnel thrusters, and two bow tunnel thrusters. Bollard pull will be 90 tons and service speed abt. 13.5kn. Vessel is scheduled for delivery end of July 2013.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

14

Marcon International, Inc. Tug Boat Market Report – May 2013

In December 2012, the Robert Allan Ltd. design “Tarua 302” was delivered by Italthai Marine Limited of Samut Prakarn Thailand to her owners, the Port Authority of Thailand. This is the second RAmparts 2800 Class tug built for the Port Authority of Thailand to this widely accepted design. This tug is a more powerful version of the Port Authorities first RAmparts 2800 tug delivered last summer. Working in close cooperation with Italthai Marine personnel, Robert Allan staff customized standard RAmparts 2800 design to meet Client’s requirements for propulsion equipment, accommodations, tank capacities and outfit. Principal dimensions of “Tarua 302” are 28.2m length overall x 11.5m beam x 5.35m depth with a maximum draft of 5.1m. Tug is classed LR +100 A1, TUG, +LMC, Thailand Coastal Service. Tug has been outfitted to high standards for a crew of up to 10 people. The large main deckhouse contains a well sized combined lounge/mess room, galley, two officer cabins. The lower deck contains 2 - 1 man cabins and 1 - 6 man cabin. Wheelhouse is designed for maximum all-round visibility with fore and aft control stations providing maximum visibility to both fore and aft deck working areas. Extensive use of decorative wood trim has been used throughout the vessel and particularly in the wheelhouse. Main propulsion comprises a pair of Daihatsu 6DKM-26e diesels, each rated 1,618kW at 750RPM, Schottel SRP 1212 fixed pitch units with 2.3m props, in ASD configuration. Electrical plant consists of two identical 200ekW gensets powered by MAN D 2866 LXEs. Deck machinery comprises a forward hawser winch from Fluid Mechanica with a brake holding load of 100 tons and line pull of 60 tons at 5m/. Aft deck has a 65 ton SWL tow hook from Mampaey. An independent FIFI pump is fitted, comprising of a 362kW Deutz BF 8M 1015 MC diesel driving a Fire Fighting Systems SFP250x350HD horizontal centrifugal pump delivering 600m3/hr sea water to two FFS300, 300m3/hr remote operated water/foam monitors. “Tarua 302” met or exceeded all performance expectations, achieving a bollard pull ahead of 55.7 tons and free running speed of 12.7kn. On January 25th, 2013, the Voith Schneider tractor tug “Media Luna” sailed into Puerto de Bolivar, Colombia after sailing under her own power across the Atlantic from Turkey. She was welcomed by other Cerrejón towing vessels providing fire monitor displays. “Media Luna” was constructed at Uzmar Tug and Work Boat Factory in Izmit, Turkey. This is the first of a two boat order for the AVT 3000 Class Tugs designed by Robert Allan. “Media Luna” will replace the 2,400HP, 1981 built “Ciudad de Riohacha” (ex-Gelderland) as part of a Cerrejón’s fleet renewal program. The sister vessel “Cabo del Vela” is expected to be delivered to Cerrejón’s Puerto Bolivar marine operations in March. The AVT 3000 was designed to meet Cerrejón’s requirements for performance, propulsion equipment, accommodations, tank capacities and outfit. She features a partial raised foc’sle for operation in rough weather and a large functional aft working deck for efficient ship handling ops. Designed for a bollard pull of 60 tons, she will be the most powerful tug in the Puerto Bolivar fleet. Principal dimensions are 30.75m x 12.0m x 4.80m depth x 6.2m max draft. Tug was designed and constructed to BV 1 +Hull, +Mach, Tug Unrestricted requirements and has been outfitted to high standards for a crew of four. The main deckhouse contains the galley, mess, and two officer cabins. Lower deck contains 1 double berth cabin, a laundry, galley stores, and a common WC space. Wheelhouse is designed with frameless bonded windows for minimum window mullion obstruction and a single split control station which provides maximum visibility for ahead and astern operation with excellent visibility over the aft working deck. A pilot boarding platform is provided at the bridge deck level. Engine room features a small sound resistant switchboard room. A workshop and stores area is located in the aft hold. Main propulsion consists of a pair of General Electric 12V228s, each rated 2,289kW at 1,050RPM driving a Voith Schneider 30R5-250 cycloidal prop. Aft deck machinery includes a Rolls Royce ATWH 1500/200 render-recover hawser/towing winch with horizontal warping head and pull of 20 tons at 18m/min. Also on the aft deck is a Hella deck crane rated 5 tons at 5m reach. On the foredeck is a Rolls Royce AW20.5U2H anchor windlass with two cable lifters and two horizontal warping heads. An independent FIFI pump set is fitted comprising a 546kW @ 1,800RPM Caterpillar C18 ACERT driving a Fire Fighting Systems horizontal centrifugal pump delivering 1,200m3/hr water to a FFS1200LB, 1,200/300m3/hr water/foam remote monitor. On trials, Media Luna met or exceeded all performance expectations, achieving a bollard pull ahead of 63.1 tons and free running speed of 13.6kn.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

15

Marcon International, Inc. Tug Boat Market Report – May 2013

On March 30th, 2013, “Cabo de la Vela” departed Uzmar Shipyard in Turkey on her delivery voyage to Columbia. “Cabo de la Vela” was constructed at Uzmar in Izmit, Turkey. This is the second of a two boat order from Carbones del Cerrejón for the AVT 3000 Class Tugs designed by Robert Allan Ltd. “Cabo de la Vela” will join her sister vessel, the “Media Luna”, in Puerto de Bolivar. The AVT 3000 tugs for Cerrejón were designed to meet Cerrejón’s requirements for performance, propulsion equipment, accommodations, tankage and outfit. “Cabo de la Vela” features a partial raised foc’sle for operation in rough weather and a large functional aft working deck for efficient ship handling operations. Designed for a bollard pull of 60 tons, she and her sister will be the most powerful tugs in the Puerto Bolivar fleet. “Pilbara Apollo”, the latest addition to the RAstar 3200 escort tug series was delivered to its owners, Rio Tinto Ltd. earlier this year. The vessel was constructed at Uzmar Shipbuilding Industry Co. in Turkey and will operate at Rio Tinto’s iron ore export facilities at Cape Lambert (Port Walcott) and Dampier, Australia. The “Pilbara Apollo” is the first of six new RAstar 3200 tugs to be delivered to Rio Tinto as part of this contract. These tugs will assist very large ore carriers in berthing and un-berthing at exposed, open water berths in severe wind and wave conditions. The unique sponsoned hull form of the RAstar Class vessels gives these new tugs a level of safety and comfort that will enable operation in conditions that were previously deemed unworkable. This unique RAstar hull form developed by Robert Allan Ltd. has been proven in both model and full-scale testing to provide significantly enhanced escort towing and seakeeping performance. The motions and accelerations are less than half those of comparable sized, wall- sided “standard” tug hulls. Principal dimensions are 32.00 x 12.80 x 5.37m depth with a navigational draft of 6.03m. Vessel was classed by Bureau Veritas during construction, but will be converted to Lloyd’s Register once in Australia. Tank capacities are 129m3 fuel and 39m3 fresh water. On trials, “Pilbara Apollo” met or exceeded all performance expectations, with 80.9 tons bollard pull ahead, 77.0 tons astern and a free running speed of 14.0kn. Main propulsion for each tug comprises a pair of CAT 3516C HD diesel engines, each rated 2,350kW at 1,800RPM, and each driving a Rolls Royce US255 Controllable Pitch Z-drive unit. The hydraulic deck machinery, all from Ridderinkhof, consists of a split-drum escort hawser winch on the foredeck, and a single drum towing winch aft. The electrical plant consists of two CAT C6.6 diesel gen-sets, each with a power output of 100ekW. The vessel has been outfitted to the highest standards for a crew of up to 6 people. The lower deck contains crew quarters and the Master and Chief Engineer staterooms. The wheelhouse is designed for maximum all-round visibility with a forward control station providing maximum visibility to both fore and aft deck working areas. Ship-handling fenders at the bow consist of two rows of 1,000 mm deep, 1,400 mm wide custom designed “W” fenders. Extruded hollow 300 x 300 square section rubber fenders provide protection at the main sheer line, and 500mm wide by 450mm deep “W” block type fendering is used at the stern. The fendering system was devised by the Owner’s representative Neil Edwards, working in close cooperation with the design team at Robert Allan Ltd. and the fender suppliers, Maritime International. The fendering system was subject to extensive FEA analysis to verify the responses and loads. Early indications from the operators are that this solution will perform very well in the rough sea conditions. On average, approx. one Robert Allan Ltd. designed tug is launched every week somewhere around the globe.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

16

Marcon International, Inc. Tug Boat Market Report – May 2013

The “Macleod” is the latest addition to the RAmparts 3000 series of ASD tug designs by Robert Allan Ltd., delivered to its owner; Rio Tinto - Dampier Salt Ltd. in the summer of 2012. Constructed at Uzmar Shipbuilding in Izmit, Turkey, the “Macleod” (Hull No. 58) will operate at the Cape Cuvier bulk terminal in Western Australia. The tug’s home port is in a shallow harbor connected to the ocean via a shallow channel, requiring a maximum operating draft of 4 meters. This low draft would normally have a negative impact on the sea-keeping performance, with resulting high accelerations. Robert Allan Ltd. proposed a solution which was to develop a quick-acting ballast system that enables the tug to reach the dock at the 4m draft and then ballast to a deeper operating draft of 5m, thus enabling the full performance capabilities and much better sea-keeping characteristics for the tug when operating in the open ocean. Principal dimensions are 30.8m length overall x 12.0m beam x 5.35m depth x 5.0m ballasted operating navigational draft. “Macleod” is classed by Bureau Veritas 1 +HULL, +MACH, +AUT-UMS, Tug, Unrestricted Navigation, AUT-UMS, IWS. On trials, “Macleod” met or exceeded all performance expectations, developing a bollard pull of 63 tons ahead and 58.5 tons astern, with a 13.7kn free running speed. Vessel has been outfitted to the highest standards for a normal operating crew of four. Master’s and Chief Engineer’s cabins are located on the main deck, with two additional private crew cabins located on the lower accommodation deck. An additional two temporary crew can be accommodated in a double cabin, and four riggers can be carried on transit voyages. Also included are an exercise room and office, also housed in the lower accommodations. Deck machinery comprises a ship assist hawser winch on the bow, and two large mooring line reels on the aft deck, each with a capacity of 1,325m of 76mm line. In addition, a tow pin/shark jaw set, capstan, three gob-eyes and a tugger winch are installed on the aft deck to facilitate line handling operations. Fittings are also provided on the aft deck to accommodate a 20’ diving / stores container. The wheelhouse is designed for maximum all-round visibility with forward and aft control stations providing maximum visibility to both fore and aft deck working areas. Main propulsion for each tug comprises a pair of CAT 3516C diesel engines, each rated 1,920kW at 1,600RPM, and each driving a Rolls- Royce, US 205 fixed pitch Z-drive unit, in ASD configuration. The electrical plant comprises three identical diesel gensets, each with a power output of 86ekW. Shiphandling fenders at the bow consist of one row of 800 x 400 cylindrical fender at the main deck lever, with 300mm “W” fenders between the main deck and the knuckle. A 300 x 300 hollow “D” fender provides protection at the main and foc’sle deck sheer lines, and 300mm “W” block type fendering at the stern. My only problem with the tug is her color. It’s not that I am tired of red tugs, but my grandmother used to always describe the yellow MacLeod tartan as the “roariest tartan in alla Scotland” with its broad black bands and narrow red lines. That is a paint-job that would stand out.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

17

Marcon International, Inc. Tug Boat Market Report – May 2013

Two new “ART 80-32” class Rotor®tugs, the first vessels designed for KST B.V. under the recent Agreement naming Robert Allan Ltd. as the exclusive designer of Rotor®tugs, are to be built by the Damen Shipyards group for owners Elizabeth Ltd. This is the first time that the Damen Group will build a design from Robert Allan Ltd., and it is fitting that such a milestone event should be for this discerning Dutch owner. Kotug has provided significant input into the requirements for this design, and Robert Allan Ltd., has developed a unique, customized design optimized for their operations. These new Advanced Rotor® Tugs (ART) will incorporate the patented triple Z-Drive Rotor®tug concept, featuring enhanced omni-directional maneuverability, and the benefits of a fully redundant and precise propulsion machinery configuration. The Rotor®tugs concept offers increased security for ship-handling and escort towing, as well as enhanced crew safety. The new tugs are 32m long x 12.6 meters beam, with an installed power of 3 x 1,765kW, delivering an expected bollard pull of 80 tons. The hull form has been developed from Robert Allan Ltd.’s high performance escort tugs and has been adapted to suit the Rotor®tug concept, providing enhanced stability, sea-keeping and escort performance. The ART 80-32 tugs will also feature a hybrid propulsion system designed and supplied by Aspin, Kemp and Associates. This innovative propulsion system integrates electrical and mechanical energy, and manages it in a way to provide optimal operational modes, resulting in significant environmental and economic savings. The first of the new Rotor®tug is scheduled for delivery in early 2014. Robert Allan Ltd. has been awarded contracts for two new designs of icebreaking OSVs for use in the North Caspian Sea. The contract was awarded to the Vancouver naval architects by the Turkish-based Palmali Group of Companies, and the vessels will be built by Besiktas Shipyard of Altinova, Turkey. Upon delivery the vessels will be chartered to the Lukoil Oil Company of Astrakhan, Russia. Three vessels in total are to be built and delivered by the end of 2014. Each of the new vessel designs will be 80m in length and specifically designed for operation in the very shallow, ice covered waters encountered in the Caspian. The vessels will meet the rules of the Russian Maritime Register of Shipping. The first design, designated as a “TundRA 8000 OSV”, is for a traditional OSV, satisfying RMRS ARC 4 Ice Class requirements. Two “TundRA 8000 OSVs” have been ordered. The second design, designated as a “TundRA 8000 MSRV” (general arrangement left) will be a multifunctional standby/rescue variant of the OSV design capable of meeting RMRS ARC 5 requirements. Vessels of these Ice Classes are designed to be capable of breaking ice of 0.9 and 1.2 meters respectively. One “TundRA 8000 MSRV” has been ordered. Lukoil currently operates four similar but smaller OSVs designed by Robert Allan and completed between 2007- 2009. Robert Allan Ltd. has been designing Ice Class and icebreaking vessels since the late 1960s, and the experience gained in designing vessels to operate in the shallow waters of the Canada’s Beaufort Sea have been put to good use in the similar environment of Russia’s Caspian Sea. On 25th February, Cochin Shipyard Limited (CSL) delivered the 120T bollard pull AHTS “SCI Urja” to The Shipping Corporation of India, Mumbai (SCI). This is the fourth and last in the series of four 120T bollard pull AHTSs built by CSL for SCI. Vessel is AH03 type, designed by STX OSV, Norway and certified under dual class by Indian Register of Shipping and ABS. “SCI Urja” will be registered under Indian flag out of Mumbai. The 65.2 x 16.0m vessel is a high-end AHT equipped with a Rolls Royce Brattvaag waterfall AH-towing winch. Vessel is powered two 4,000kW diesels and CP props in kort nozzles. “SCI Urja” is equipped with DP-1 positioning and complies to ERRV class ‘C’, which allows her to work as an emergency rescue & recovery vessel in case of an oil field emergency. Vessel also has FiFi-1 capability. “SCI Urja” has accommodations for 29. These anchor handling tugs are workhorses of the offshore industry and used extensively as support vessels for various rig movement / anchor handling and other offshore supply functions. CSL has been posting impressive performance in the last several years despite a severe market downturn in shipping and shipbuilding industry world over. A diversified product mix in shipbuilding consisting of commercial and defense ships along with a significant presence in ship repair helped Cochin Shipyard to post a profit of Rs 172 crores in 2011 - 12, a threefold increase from Rs 58 crores in 2006-07. Cochin Shipyard has 25 ships on order consisting of an Indigenous Aircraft Carrier for the Indian Navy, 20 Fast Patrol Vessels for the Indian Coast Guard and four PSVs for export.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

18

Marcon International, Inc. Tug Boat Market Report – May 2013

On 23rd December, Guangdong Yuexin Ocean Engineering signed the construction contract for 2+2 58.7m AHTS in Singapore. Built to the design of Khiam Chuan Marine, the vessels are basically the same as Yuexin’s 58.7m standard AHTS series. Capable of performing anchor handling, towing and firefighting duties, the vessels will be equipped with DP-1 to enhance the maneuverability……On 22nd December, the new Robert Allan Ltd. design ASD tug “Naomi Princess” was delivered to Nigerian owners. The vessel was built under survey of Lloyds Register under notation 100A1, Tug, LMC FiFi-1. She measures 32m in length with a breadth of 11.6m, depth of 5.36m and design draft of 5.81m. Capable of accommodating 12 crew, she can carry 205m3 fuel, 37m3 fresh water and 113m3 ballast. Ahead bollard pull reaches 73.5 tons and astern 69.45 tons. Free running speed is 12.94 knots. Propulsion is provided by two 2,682HP CAT main engines driving a pair of Schottel variable pitch props..….On 5th February, Martens Marine took delivery of the second vessel in Martens’ “E 65T Series” from Guangdong Yuexin Ocean Engineering. “King Jesus” is a 5,150BHP AHTS intended for operations in the shallow waters of Asia, West Africa and the Middle East. The “E 65T Series” vessels are powered by CAT 3516C diesels which are in compliance with U.S. EPA Tier 2 Commercial Regulations in addition to being equipped with twin Kawasaki 8 ton bow thrusters and a set of Becker high-lift performance rudders. The Kongsberg DPS-1 positioning system onboard allows the vessels to maintain station in a Sea State 4 environment with winds up to Beaufort Force 7 and currents of 2 knots. “King Jesus” is bound for West Africa shortly. Vessel was built to ABS +A1 Offshore Support Vessel, AH, Towing Vessel, Fire Fighting Vessel Class 1, +AMS, DPS2 class……On 11th April, Martens Marine took delivery the third vessel from Guangdong Yuexin Ocean Engineering in the “E 65T Series”. “SMS Endeavor” is an AHTS intended for operations in the shallow waters of Asia, West Africa, and Middle East. “SMS Endeavor” is built to ABS Class is bound for South East Asia in the coming days……On the same day, Yuexin signed a new contract for two option two 65m AHTS vessels with a ship owner from Indonesia. Designed by Focal Marine & Offshore, the vessels will be built under ABS classification. Principal dimensions are 65m in length with 16m breath moulded and 6.2m max draft. The designed speed is 13 knots and designed bollard pull is 80 tons. The vessels can carry 570m3 fuel oil, 300m3 fresh water, 370m3 mud and 170m3 dry bulk. Gross Tonnage will be about 1,500 ton. The AHTSs will be powered by twin 3,000BHP Niigata diesels and will be fitted with DP-2 positioning. Nordic Yards of Wismar and Rostock-Warnemunde, Germany signed a contract for construction of two ice-breaking rescue and salvage vessels. The client is the Russian Ministry of Transport. Owing to their icebreaking capabilities, the vessels will operate on the northern polar sea route in the Arctic, namely in the region of Murmansk, and in Sakhalin. "After the successes in the Offshore Wind field we are very pleased with this contract and the associated expansion of the Offshore Oil & Gas business segment. With these orders, we are once again underlining the validity of our strategy and our focus on extremely sophisticated products. I am particularly pleased about the fact that we have laid the foundation stone for our high level of credibility on the Russian market, which is very important to us," explains Vitaly Yusufov, Managing Director of Nordic. The commissioned vessels will be used for patrols and rescue operations in offshore oil and gas fields. They are highly specialized, have a complex level of equipment and are designed for searching for and rescuing ships in distress, evacuating people and providing them with medical care. The 1,400mtdw salvage ships are icebreakers of the second highest ice class, which are designed for the Arctic and therefore suitable for rescue operations in harsh environments. They can be used both for icebreaking operations in harbors and waters with an ice thickness of one meter as well as for fire-fighting and combating oil spills at sea. Due to their specialized equipment, the vessels can study the ocean floor and damaged objects at depths of up to 1,000m. Both will be equipped with a helipad on the bow. Engineering and start of construction will take place in 2013. Delivery of the 86m long and 19m beam vessels is planned for spring 2015.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

19

Marcon International, Inc. Tug Boat Market Report – May 2013

Jiangsu Zhenjiang Shipyard (Group) Co., Ltd. of Zhenjiang, China successfully delivered the two 8,200HP ASD tugs “Huan yu san hao” and “Huan yu liu hao” to Qingdaon Port Co., an international hub along China’s Yellow River Basin. These tugs are reportedly the largest, most powerful and advanced ASD tugs in Asia and are designed to provide towing assist to very large vessels including aircraft carriers. Industry insiders say that this is a milestone indicating the start of a new century for China to design and built such powerful tugs. According to reports, these two tugs will service the Qingdao Port Dongjiakou harbor 400,000 ton ore terminal assisting sixth generation container vessels and other very large ships in one of the ten busiest ports in the world. The port has been the second largest port for foreign trade throughput in China for years and reportedly is the largest port for inbound iron ore in the world, and the largest port for inbound crude oil in China……On 7th February, the “Xin Bei Fang 8” built by Jiangsu Zhenjiang for Yingkou Port Group Co., Ltd. was delivered from the shipyard to the international seaport in Liaoning, China and started its sailing smoothly. The port is a major import facility for northeastern China and parts of Mongolia. River and coastal trade reportedly existed in Yingkou since 1280 AD and international shipping commenced in 1858 when Yingkou was designated a Treaty Port……On 18th January, the first two of a series of five 3,200BHP ASD tugs, believed to be the “MBP 3209” and “MBP 3210” being built for the Indonesian group PT Adaro Energy Tbk of Jakarta were successfully launched. The 33.70m x 10.93m x 4.96m depth / 4.00m draft tugs are powered by Cummins diesels. The tugs are to be owned and managed by PT Maritim Barito Perkasa and are classed by ABS. Also under construction are the “MBP 3211”, “MB3212” and “MB 3213”…...On 15th January, the “Jing tang gang 18” was completed and delivered by the shipyard to TangShan Port Group Co. Ltd. in Hebei Province where it was promptly employed……On 13th January, “Jiangsu Zhenjiang VSJ6242-2202”, the first in a series of 78m x 21.0m x 8.0m depth / 6.3m draft multi-purpose offshore standby safety and rescue/support vessels ordered by Singapore owner Falcon Energy Group Ltd. and built by Zhenjiang Shipyard was successfully launched. This series of 3,500mtdw MFSVs have accommodations for more than 200 persons, DP-2 positioning, four point mooring and a 65 ton main crane located on the main deck. The ABS classed vessels are designed for multi-functions combined with an azimuthing propulsion system. The vessels are powered by a pair of 2,650kW MAK 8M25C diesels developing a total of 7,178HP at 750RPM…...on 10th January, the 7,200HP ASD tugs “Liangang 49” and “Liangang 50” were successfully delivered to Dalian Port Co. Ltd. Until the 8,200HP “Huan yu san hao” and “Huan yu liu hao” were launched, these two vessels were the largest and most powerful ASD tugs in China. Dalian Port Co. Ltd. services PetroChina’s giant Daqing oilfield in Liaoning Province in China’s frigid northeast…… As 2012 was coming to a close, the two 4,000PS ASD sister tugs “Qin Gang 22” and “Qin Gang 23” built for Qinhuangdao Port Co. Ltd. in Haigang District, Northern China were successfully delivered. Qinhuangdao Port is one of the largest global energy outports mainly importing and exporting coal and crude oil…. Two days earlier, on 25th December, the two 2,942kW ASD tugs “Hu Gang 3” and “Hu Gang 4” built for Liaoning Hongyun Trade Co., Ltd. were delivered……On 22nd December, the “Xin Bei Fang 7” was delivered to Yingkou Port Group Ltd., following the “Xin Bei Fang 5” to the same owners three days earlier……On 10th December, “Jing tang gang 17” was delivered to the TangShan Port Co., Ltd.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

20

Marcon International, Inc. Tug Boat Market Report – May 2013

Cheoy Lee Shipyard yard number 4984 and 4985 are sister ships built as the third and fourth vessels in a batch, although for different owners. When vessels from a popular series are ordered, Cheoy Lee frequently opts to build additional vessels of the same type for stock, to garner higher production efficiency. “GPC Tesoro”, yard number 4984, is the third and final RAmparts 3200CL in series for GPC Tugs S.A.S., a member of Sociedad Portuaria Regional de Cartagena (SPRC) Group in Columbia. Yard number 4985, “Jacques”, initially built for stock, was sold midway through construction, in October 2012, to SAAM S.A. in Chile. Both vessels are built to Lloyd’s class, with the notation LR +100A1 Tug, +LMC, +UMS, *IWS, Unrestricted Service. RAmparts 3200CL has a range of engine options, and this latest series is fitted with twin CAT 3516C engines, each developing 2,682HP. These drive a pair of azimuthing Schottel SRP1515FP fixed pitch rudder props. The tugs offer excellent maneuverability, top speed of over 13kn and bollard pull of 71 tons. Electrical power is from two 110ekW Perkins generators. Tugs accommodate 10 crew on the forward lower deck. The master and chief engineer each have their own cabin on the main deck. Hydraulically driven deck gear includes a MacGregor tow winch/windlass forward and a MacGregor tow winch at the stern. An FFS fire pump is driven off one main engine, and supplies two 1,200m3/hr FFS fire monitors. Both vessels are fitted with an extensive navigation package, primarily from Furuno, including radar, autopilot, echo sounder, GPS, Inmarsat-C, SSB, VHF, Navtex, AIS, BNWAS and satellite compass. “GPC Tesoro” and “Jacques” both left Cheoy Lee Shipyards in Hong Kong in January 2013, on voyages through the China Sea and across the Pacific to South America. Principal dimensions are 32.00m length overall x 12.40m beam x 4.88m draft…...Built to a Japanese design, “Nautica TG Puteri XVII” is a 4,000HP Azimuth Stern Drive tug, completed by Cheoy Lee for Malaysian client EA Technique M Sdn Bhd, part of E A Bunkering Service. The deep sea/harbor tug is built under Bureau Veritas class I +Hull, +Mach Tug Unrestricted Navigation. Tug’s propulsion is from Niigata, comprising a pair of 6L26HLX main engines, each developing 2,000HP at 750RPM, driving Niigata ZP-31 Z-Pellers. Configuration provides a max free running speed of 13kn, with measured bollard pull of 50 and 45 tons in ahead and astern directions respectively. Auxiliary machinery includes a pair of 115kW Yanmar generators. A fire pump, PTO driven from the port main engine, delivers 1,300m3/hr of water to two fire monitors forward on the wheelhouse deck level. Deck winches are by MacGregor. The hydraulic anchor windlass on the foredeck and hydraulic tugger winch on the aft deck, with a capacity for 200m of 20mm diameter wire, are powered by an 11kW electro-hydraulic power pack. Aft and to port of the stern roller, is a Palfinger PK12000M knuckle boom crane. “Nautica TG Puteri XVII” accommodates a crew of ten - eight in two 4-man cabins on the lower deck, with the captain and chief engineer housed above on the main deck. Galley, dining and washroom facilities are also on the main deck. Principal dimensions: 31.00m LOA x 9.50m beam x 3.87m draft…...In mid-April, 2013 Cheoy Lee handed over the first in a series of five 50m AHT tugs for Teras Offshore in Singapore. Departing Kowloon under grey skies and Teras’ own crew, “Teras Ariel” sailed directly to Batam in Indonesia where it will enter service. Prior to departure, vessel and crew were blessed by the Reverend Stephen Miller of the Mariners’ Club in Hong Kong. Designed by Wartsila Ship Design Singapore, the capabilities of these vessels include; towing/moving barges and rigs, tanker handling & berthing, anchor handling duties, transporting equipment and materials, external firefighting, maintenance and pollution control. Construction is to ABS class, with the notation +A1, Towing Vessel E, +AMS, UWILD. All five vessels are powered by twin Yanmar 6EY26W diesels, each developing 2,610HP at 750RPM. Power is transmitted to two Berg 2,650mm diameter CP propellers via Twin Disc gearboxes. Free running speed is 13.5kn, and a bollard pull reading of 69 tons was recorded on trials. Maneuverability is enhanced by a 320kW Nakashima TCT-105 electric CP bow thruster delivering 4.9 tons of thrust. Three Caterpillar 350kW 3-phase generators supply onboard power. An 82kW, air cooled Caterpillar C4.4 generator serves as a stand-by. 544m3 of fuel and tankage for 234 tons of potable water allows for extended range. The vessel accommodates a crew of up to 24, in four 4-man cabins, three 2-man cabins and two single cabins for the captain and chief engineer. The elevated bridge has excellent all round visibility, with both forward and aft facing control stations. Towing gear is exclusively from MacGregor in Singapore, including the 75 ton anchor handling/towing winch, 6 ton anchor windlass, a rope storage reel, a combination shark jaw and towing pins, two tugger winches and two capstans. The deck crane with 9m reach for lifting the work boat is from Palfinger. Principal Dimensions: 50.00m LOA x 12.60m beam x 4.50m draft.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

21

Marcon International, Inc. Tug Boat Market Report – May 2013

Signet Maritime Corporation of Pascagoula, Mississippi continues to expand its diverse fleet by awarding a contract for construction of two Robert Allan designed tugs to Patti Marine Enterprises in Pensacola, Florida. This marks the ninth Signet/Robert Allan Ltd. design in 5 years. Construction commenced in November 2012 with an expected delivery of December 2013 for the first vessel and March 2014 for the second vessel. Continuing the longstanding Signet tradition of naming vessels in honor of America’s Cup winners, the new RAmparts 3200 ASD tugs will be named M/V “Signet Intrepid” and M/V “Signet Vigilant”. These vessels are the fifth and sixth ASD tugboats delivered for Signet in less than three years and will operate from the International Operations Center in Ingleside, Texas, where they will primarily be used to perform offshore and inshore rig escort, barge, and subsea support work. Once again, Signet reaffirms its commitment to building environmentally conscious tugboats that will adhere to the Environmental Protection Agency’s Tier III emissions regulations. The tugs will also feature C175-16 CAT engines, Markey Model DEPCF-52S winch, and Rolls Royce US 255 controllable pitch Z-drives. With 83 tons of bollard pull, these vessels will be powerful and offer improved reliability to handle the expanding needs of the marine transportation industry. The eight contract awarded to Robert Allan Ltd. was for a newbuilding ASD 24/60 tractor tug; building began at Signet Shipbuilding & Repair, Pascagoula, Mississippi in September 2012. The 60 metric ton bollard pull, EPA Tier III, Tractor Tug is the fourth ASD Tug by Signet in 12 months. The new vessel— M/V “Signet Magic” — will operate from the Pascagoula, Mississippi area, where it will primarily perform ship assist, rig escort, barge, and subsea support work. “We are pleased that the longstanding partnership we have with Robert Allan has provided us the opportunity to build yet another high performance tugboat in the Gulf of Mexico,” says J. Barry Snyder, President of Signet Maritime. “Their state-of-the-art design and engineering, which evolves continually to meet our requirements to best serve the needs of the market and our customers, is why Signet has continuing confidence in Robert Allan Ltd. as a leading naval architectural firm.” “Signet Magic’s” design and size will allow Signet improved capabilities and maneuverability to assist marine vessels in tight quarters in the Pascagoula Harbor. The environmentally friendly tug will feature lower emissions and reduced fuel consumption to meet EPA Tier III marine emissions regulations for all propulsion and electrical generating equipment. This is the third tug built by Signet that meets these marine emissions requirements. As the new year begins, Markey Machinery of Seattle prepared a new TES-40-75HP electric towing winch for Harley Marine Services’ new Z-drive ship assist tractor tug “Robert Franco”. The first item of two suites of deck machinery specified by Harley for both “Robert Franco” and its sister, “Ahbra Franco”, the TES-4075HP towing winch also fills out Markey’s electric towing winch line which now covers wire sizes between 1.25” through 2.5”. The TES40-75HP is a rugged single-drum electric towing winch with fairlead and warping head, designed specifically for use on ASD-tugs where aft deck space is at a premium. Its AC Variable Frequency electric drive satisfies a wide range of performance requirements. All electrical components comply with ABS, USCG, and IEEE-45 standards. The tow winch is part of a twowinch suite of equipment that also includes a Markey Model DEPCF-52-75HP Class II Hawser Winch. Together, the two winches share a single VFD drive panel and dynamic braking resistors, while having discrete wheelhouse controls for each winch. This reduces the impact of “below-deck” equipment on available space, as well as system cost while supporting full functionality of either winch. “Robert Franco” is powered by twin Caterpillar 3516C Tier 3 diesel engines coupled to a Rolls Royce zdrive system. The tug is also equipped with two Cat C9 generators. The propulsion package will produce over 90 tons of bollard pull with a combined 6,770HP, giving the tug exceptional pulling power and maneuverability. Both tugs are being built by Nichols Brothers Boat Builders of Freeland, Washington. “Robert Franco” was delivered to Harley Marine’s new headquarters on the Duwamish waterway on 29th April. “Ahbra Franco” is expected to deliver in July of this year. Tugs will enter service on the U.S. West Coast and will enhance Harley Marine’s current fleet operating in the tanker escort and ship assist markets.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

22

Marcon International, Inc. Tug Boat Market Report – May 2013

Work continues at Diversified Marine, Inc. in Portland, Oregon on Harley Marine’s new 120.0’ x 35.0’ x 15.3’ depth ASD tug “Bob Franco”. The hull was completed in January with interior outfitting in progress and by February the propulsion machinery consisting of a pair of EPA Tier III compliant CAT C175-16s total 5,360BHP and the Schottel 1515 azimuthing drives were installed. The 5,300HP tug was designed by Jensen Maritime Consultants. Expected bollard pull is approx. 69 – 78 short tons. “Bob Franco” is being built with an ice belt and hull scantlings strengthened to ice standards for operations in Alaska. The tug is the fourth in a series designed by Jensen. The first three tugs were designed and built for Western Towboat Co., also of Seattle. Moran Towing Corp. has launched three new ship docking and escort tugboats, expanding its fleets and capabilities at the Port of Baltimore and the Port of Virginia. Tugs “Mark Moran”, “Katie T. Moran”, and “Annabelle Dorothy Moran”, are all Z-drive tractors. All three tugs are “Capt. Jimmy T. Moran”–class vessels, a wide-beam design that enhances stability and features more spacious crew accommodations than Moran’s previous tractor tug classes. Rated 5,100HP and producing 68 short tons of bollard pull, the tugs can expertly handle PostPanamax and New Panamax ships, as well as some larger classes. The “Capt. Jimmy T. Moran”–class hull is 86’ in length with a 36’ beam, and features a forward-mounted skeg that further reinforces lateral stability. Two MTU Detroit Diesel 16V4000 M61, Tier 2 engines provide the power on each vessel. All three tugs use Schottel Z-drives. An extraroomy engine room facilitates safety and mechanical access during day-to-day running, maintenance and repairs. Crew accommodations include an expanded galley and mess, plus expanded crew cabins and heads. The vessels, christened and launched between March 2012 and October 2012, were designed by Jensen Maritime and built by Washburn & Doughty Associates. “Annabelle Dorothy Moran” and “Mark Moran” are in service at Moran Baltimore; “Katie T. Moran” serves in the Moran Norfolk fleet. A fourth tug, the 93’, 6,000HP “James A. Moran”, was launched in 2011 and currently serves the Port of Savannah. “Tugs that offer the tractors’ level of power and control are key to staying in tune with customers’ needs,” commented Mark Vanty, VP & and General Manager of Moran Norfolk. Foss Maritime is building a new shallow-draft, model bow tug at its Rainier Shipyard in Oregon to handle anticipated work in western Alaska and in the Arctic. Construction commenced in November and the tug is expected to be finished in June. The vessel is very close in design to the 2,175HP Rainier-built “Captain Frank Moody”, delivered in the spring of 2011 to Foss sister company Delta Western. It will have a steel hull, an aluminum superstructure, and will measure 76 feet in length, 32 feet in beam, have a river draft of just 3.6 feet and be fitted with push knees. Samson Tug Boats Inc. of Delta, British Columbia, Canada last year launched their new locally built and designed 5,000HP ASD tug “Kootenay”. The 19.6m x 9.9m x 4.08m depth steel hull tug was built by ABD Aluminum Boats & Yachts of North Vancouver for operations on the Fraser River within the Port Metro Vancouver area where many of the piers are in confined areas. The A.G. McIlwain design tug is powered by a pair of pair of Tier 2 emmission compliant MTU 16V4000M60 diesels with HRP ZF AT-7111 fixed pitch azimuthing props and develops a bollard pull of 60 metric tons. She is fitted with a Markey DYS-42 hawser winch with Render-Recover capability. Samson owns two modern ASD tugs, and bareboat charters in two other approved conventional tugs ranging from 1,200 – 1,800HP. Samson’s 3,200HP ASD tug “Shuswap” was launched in June 2011.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

23

Marcon International, Inc. Tug Boat Market Report – May 2013

Superport Marine Services Ltd. of Port Hawkesbury, Nova Scotia, Canada launched their new, locally built 19.6m x 6.1 x 3.4m twin screw tug “Strait Raven” on 26th February. Superport was founded in 1971 and owns and operates a diverse fleet of research vessels, tugs, pilot boats and crew / work boats. Marcon has sold Superport two of their research vessels, the first being the 125’ “Strait Signet” (ex-Sub Sig II) from Raytheon in 2002 as sole broker and the second the 195’ “Strait Hunter” (ex-Geosounder) as Buyer’s broker from DOF Offshore in 2011. The tug is offered in on a number of projects in Atlantic Canada and reportedly already short-listed on a few. Superport Marine has been providing ships’ services in the Strait of Canso since 1971. Construction continues at on the new ATB tugs “Dean Reinauer” (Hull 210) (photo left) and “Hull 208” at Senesco Marine in North Kingston, Rhode Island. The 125’ x 35’ x 18’ tug is being for Reinauer Transportation of Staten Island, New York and will be powered by a pair of 1,544kW MTU diesels and Nautican nozzles with triple shutter rudders. The FacetTug class ATB tug was designed by Bob Hill of Ocean Tug & Barge Engineering Corp Several sister-tugs with this hull shape are already in service. Senesco is also building the new 5,150BHP ASD tug “Eric M McAllister” (Hull 300) for McAllister Towing and Transportation of New York. The tug (right) is powered by CAT 3516CHD Tier III diesels and expected to deliver a bollard pull of about 67T. The 97’ x 31’ x 14.8’ tug will be classed ABS +A1 Towing, Escort Service, FiFi-1, +AMS. A JonRie 250 Escort winch with full render/recover will be fitted on the bow with a JonRie 512 tow winch with a capacity of 2,100’ 2.25” winch aft. (Photo credits: Narragansett Bay Shipping) Capilano Maritime Design Ltd. (CMDL) of North Vancouver; British Columbia, Canada supervised production of a detailed design package, including a comprehensive technical specification, for construction of a 13.5m shallow draft river tug for Manitoba Hydro in Winnipeg. CMDL is currently providing procurement support during the tendering phase, and will be providing construction supervision including on-site inspections in the future. Builders JT Marine, Inc. of Vancouver, Washington launched their new Jensen Maritime / Western Towboat designed and “Titan” classed, 5,358HP ocean tug “Hawaii” for owners Hyak Maritime, LLC. The 120’ x 35’ x 21’ depth / 19’ draft ASD tug is powered by twin GE 8L250 diesels with Schottel 1515FP 2,600mm stainless steel props. Bollard pull is approx. 80 tons. Towing gear consists of a JonRie Series 500 double drum tow winch with a capacity of 2,400’ 2.25” and 1,800’ 2” wire and an independent capstan and a JonRie Series 200 headline winch with a capacity for 450’ 7” synthetic line reel, also with an independent capstan. Tankage includes 158,000g fuel and 11,000g fresh water. Ship’s power is provided by two 180kW / John Deere 6081A / Kohler generators. The highly maneuverable “Hawaii” is classed ABS +A1, Towing Service, All Oceans, +AMS. As her U.S. regulatory tonnage is under 100, the “Hawaii” is exempt from having a Load Line and can operate with the smallest U.S. Coast Guard crew complement allowed. GE Marine provided four 2,679HP 8L250 engines to Hyak for powering the “Hawaii” and her sister-tug “Washington” which is still under construction and expected to be delivered Fall 2013. The GE Marine L250 engines are ABS classed and meet U.S. EPA Tier 2 and MARPOL standards. The L250’s inline design offers maintenance ease and repower because its narrow footprint considers engine room constraints. This engine offers an average 9% fuel savings compared to GE Marine’s previous generation of marine engines under Tier 2 conditions. It is estimated that these tugs will consume 1,000gpd of diesel less when compared with equivalent high-speed 4stroke engine tugs and up to 100gpd less of lube oil over equivalent 2-stroke engine tugs. No major service is required on the power train components for 40,000 hours. Marcon sold the 1,700HP pushboat “Stacy T” (ex-Noydena) in the background (photo left) to JT Marine in December 2011.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

24

Marcon International, Inc. Tug Boat Market Report – May 2013

Crowley Maritime Corporation has closed out its decade-long US$ 1 billion, U.S. flag AT/B newbuilding program with the christening of the “Liberty” / “7503”. Eleven years after the launch of its first ATB, Crowley christened its seventeenth ATB at the VT Halter Marine Shipyard in Pascagoula, Mississippi. The tugboat and 330,000-barrel petroleum tank barge are the final vessels to be built in a more than $1 billion, decade-long ATB construction program undertaken by Crowley to expand the company’s U.S.-flag petroleum services fleet. “We set out to offer customers the safest, most reliable petroleum transportation services many years ago by pairing our operational expertise with these safe and innovative vessels,” said Tom Crowley, company chairman and CEO. “It fills us with great pride and satisfaction to see our vision come to fruition, and to deliver for our customers.” More than 70 guests, including vessel crewmembers, representatives from VT Halter Marine and Marathon Petroleum joined Crowley in celebrating this milestone, which included the time-honored tradition of breaking a champagne bottle over the hull of each vessel. Crowley’s VP of Procurement Wendy MacDonald had the honor of christening the tug “Liberty”, while Marathon Representative Kathleen Peiffer christened the barge “750-3”. The “Liberty” / “750-3” is the third in its class to be built for Crowley. The first, the “Legacy” / “750-1”, was christened in November 2011 and the second, the “Legend” / “750-2”, was christened in Tampa last year. Both vessels are currently at work along the U.S. Gulf Coast. The 750-Class barges have a capacity of approximately 330,000 barrels and are 45,000 deadweight tons and 600’ in length. All three barges were built by VT Halter Marine in Pascagoula. The 16,320 horsepower tugs, “Legend”, “Legacy”, and “Liberty”, were constructed by Dakota Creek Industries, Inc. in Anacortes, Washington. The 148.0’ x 60.0’ x 30.0’ depth tugs are powered by twin 6,000kW Wartsila 12V32C diesels, Wartsila 4.48:1 gears and controllable pitch props with each engine and propeller in separate engine rooms / propulsion pod housings seen in the photos while under construction. The tugs are capable of burning HVFO and have tankage for abt. 340.9m3 diesel and 919m3 fuel oil. They are mated to the barges with an Intercon coupler system which allows the tug to pitch about a transverse connection between the tug and barge, but with all other motions restrained so that the tug motions match the barge motions in roll and heave. The connection is mechanical accomplished with two independently mounted, gear driven ram assemblies. The rams stroke transversely, engaging the vertical ladder structures incorporated into both walls of the stern notch. The resulting tug-barge connection is rigid and mechanically locked. Crowley’s ATB fleet also includes four 550-class, 155,000-barrel ATBs, and ten 650-class 185,000-barrel ATBs. Bollinger Marine Fabricators has delivered the DP 2 classed, 10,880BHP “Ocean Sun” (Hull 581), the third of four 156’ x 46’ x 21’ Ocean Class tugs for Crowley Maritime Corporation. All four tugs in this class are powered by twin 4,001kW EPA Tier 2 compliant CAT C28012 main engines developing a total of 10,880BHP at 1,000RPM to 153.5” CP props in kort nozzles and high-lift rudders. The fourth and last tug in the series, the DP-2 “Ocean Sky” (Hull 582) is preparing for sea-trials and expected to be delivered around the end of June. “Ocean Sun” and “Ocean Sky” are fitted with two 500HP bow and one 500HP stern tunnel thrusters. The first two tugs, the 144’ “Ocean Wave” and “Ocean Wind” delivered last year are DP-1 and fitted with one 862BHP bow thruster. All four vessels are classed ABS +A1, Towing Vessel, FiFi-1, +AMS, GP (Green Passport) with the appropriate DPS notation.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

25

Marcon International, Inc. Tug Boat Market Report – May 2013

Océan Remorquage Montréal christened its newest tug, “Ocean Pierre Julien” (Hull 423318), built during in the past year at Ocean Industries shipyard, located on Isle-aux-Coudres. The construction of this tug at a cost of Can$ 10.6 million, the third of the Intrépide series to be built at Ocean Industries, confirms the shipyard’s expertise and its status as a leader in the field of shipbuilding. ”The new tug pays tribute to a man who is committed and respected by his peers. Since his arrival in 2001, Ocean has benefited from Pierre Julien’s expertise, which has contributed to the company’s growth. His outstanding dedication and attention to detail have allowed us to successfully carry out many projects, and that is why we are proud to honor him today” said Gordon Bain. Construction of this vessel was made possible, in part, due to financial support of Industry Canada through its Structured Financing Facility program. This contribution, granted to Océan Remorquage Montréal, represents close to 15% of the construction cost. The 24.4m x 10.1m x 3.96m depth / 3.66m draft tug is equipped with the latest technologies, including a firefighting system with water cannons that have an output capacity of 1,200 cubic meters per hour, the equivalent of five fire trucks. It is powered by two omnidirectional Z-Drive propellers and two CAT 3412C engines that can reach 4,000BHP. The Panama Canal increased its tugboat fleet with the arrival of the first two of 14 tugboats that will improve the waterway's resources to offer a safer and more efficient service to the global shipping industry. These tugboats will strengthen the Canal's capacity for the operation of the Third Set of Locks. "These new tugboats will allow the Panama Canal to continue offering a world-class service," Panama Canal Administrator Jorge L. Quiijano said. "They will help us prepare to face the challenge of operating the new set of locks with the same efficiency." The 28.9m x 13.5m x 5.2m depth / 3.24m draft “Cerro Itamut” (Hull 724) and “Cerro Picacho” (Hull 721) are part of the new fleet of 14 ASD tugs that will be arriving within the next 12 months from Spain. The tugs are powered by twin 1,998bkW GE 8L250 diesels developing a total of 5,400BHP at 900RPM and a bollard pull of 80 tons. Astilleros Armon, S.A., a Spanish ship-building company, was awarded the contract in September 2011, after an open tender with the participation of 20 companies from different countries in South America, Europe and Asia. Quijano explained that the update to the Panama Canal tugboat fleet began in 2001, when the waterway had 20 tugs. Currently, the Panama Canal has 39. According to the Panama Canal Administrator, towards the end of next year and after retiring those tugs reaching the end of their lifespan, the Panama Canal will have a fleet of 44 tugboats to face the operational demands of the current and expanded Canal. The additional capacity will allow assisting Post-Panamax vessels that will be transiting the expanded Canal, which will not require the use of locomotives used in the existing locks. The new tugs “Cerro Itamut” and “Cerro Picacho” were incorporated to the Panama Canal fleet in a christening ceremony in the Gatun Landing, Colon Province, together with the 42.0m x 14.0m vehicle ferry “5 de noviembre”, and the 5,300BHP, 27.4m ASD tugboats “Estí” and “Rio Bayano I” built in 2008, 2011, 2008 respectively by Cheoy Lee Shipyards of Hong Kong, that are part of a previous generation. The names of these new boats are taken from different landmarks around Panama. Boat christening is a tradition in the Panama Canal and among the shipping industry to ensure the good fortune of each new vessel and its crew. The order for 28 GE Model 8L250 Marine engines to power the new tugs was initially placed in June 2012 and marked the third order by the Panama Canal Authority to GE Marine engines. The first order for 26 GE Marine Model 12V228 engines was placed in 2008 to power 13 vessels that are now in service. A second order was placed in 2009 for an additional four Model 12V228 engines. TOS Ship Delivery of the Netherlands departed Wuxi, China the end of January with Tramarsa’s new 72 ton bollard pull, twin screw tug “Marcahuasi” (Hull WX615) bound for Callao, Peru. Built by Jiangsu Wuxi Shipyard Co. Ltd. at their Wuxi yard, the 26.5m x 9.8m x 4.5m depth / 3.5m draft tug is powered by two 2,000kW CAT 3516C-HD diesels developing a total of 5,438HP at 1,600RPM. Tug arrived in Callao after a two month voyage, on 25th March of this year.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

26

Marcon International, Inc. Tug Boat Market Report – May 2013

Delivery voyages of the 5,915BHP “Svitzer Neso” and “Svitzer Nixie” from Singapore to Newcastle, Australia were contracted by Svitzer A/S / Svitzer Australia Pty Ltd. to Redwise Maritime Services of the Nethelands. The ASD tugs departed Singapore April 15th and redelivered May 6th following a safe voyage that took the vessels through the Java-, Flores-, Banda- and Arafura Sea before heading through the Torres Strait and inside of the Great Barrier reef to their destination. Reportedly this was a truly beautiful voyage for the crews and a reason why people decide for this sea going career. With the vessels being over 500 GT, Redwise did ISM and ISPS certification for the voyage to ensure full compliance. The 32.60m x 13.86m x 6.10m depth / 5.00m draft “Svitzer Neso” and “Svitzer Nixie” were built by Quingdao Qianjin Shipyard in China and powered by 2,206kW Niigata 6L28HX diesels producing a bollard pull of 82 tons. Tugs are classed LR +100A1, Escort Tug, FiFi Ship-1 (2,400m3/h), water spray, +LMC, UMS. The newbuilding 31.0m x 12.0m x 4.4m depth / 4.1m draft Rotortug “RT Rotation” (Hull 921) of 465 GT and 6.615BHP departed ASL Singapore Pte Ltd. on February 18th under crewing and management of Redwise for a delivery voyage of 1.678 nautical miles to her new port of operations at Port Hedland (Australia) following a flawless voyage followed by a “return voyage” with the Z-Tech "Sterling" for the same clients Teekay Shipping Australia who had her on charter - with a short delay due to cyclone Rusty. “RT Rotation” is powered by three Niigata 6L28HX diesels and develops a bollard pull of 84 tons. Tug is classed LR +100A1 Tug, FiFi-1 (2,400m3/h) with water spray, Australia Coastal Service, +LMC, UMS. Sudamericana Agencias Aereas / SAAM Remolques’ new 32.6m x 12.5m x 5.8m depth / 4.6m draft ASD tug “Saam Citlali” (photo right) was delivered by Shunde Huaxing Shipyard of Foshan, China and Bonny Fair Development Ltd. of Hong Kong. The 7,370HP twin screw tug, powered by a pair of CAT C280-8 diesels, is scheduled to be delivered from Guangzhou, China to Vera-Cruz, Mexico by Redwise, departing midsummer. Another new Bonny Fair Development tug scheduled to leave Guangzhou for a trans-Pacific crossing is the twin screw “Concon” which will be found to Valparaiso, Chile for CPT Empresas Maritimas SA. This 26.0m x 9.8m x 4.5m depth / 3.5m draft tug was built by Guangzhou Southern Shipbuilding and powered by twin CAT 3516C diesels. Foss Maritime’s new, shallow-draft “Emmett Foss” will head for Alaska’s North Slope to work on a major oil-development project in late June following its construction and christening at Foss Rainier Shipyard. With a draft of just 3.2’, the tug is ideally suited to land barges carrying modules, supplies or other kinds of cargo on Arctic beaches where the water is too shallow for conventional tugs. The 76.1’ x 32.1’ tug also packs a rated 1,437HP and bollard pull of 25,000 pounds. “Emmett Foss” is nearly identical to “Capt. Frank Moody”, delivered two years ago by the Rainier Shipyard to Foss sister company Delta Western and currently being used for fuel deliveries in Western Alaska. Tug is named for Emmett Weichbrodt, aged 8, a great-great-great grandson of company founders Thea and Andrew Foss who in 1889 started the company with one used rowboat in the Tacoma, Washington waterways. Saltchuk Resources, which acquired Foss Maritime in 1987, has maintained the tradition of naming most tugs after members of the founding family……Two other major vessel construction projects also getting underway at Foss Shipyards, with steel on order for the first of two Port of Long Beach fireboats being built in Seattle and for the first of three ocean-going tugs under construction in Rainier, Oregon. Glosten Associates of Seattle in May finished modeling the front two-thirds of the hull of the first 132’ “Arctic Class” tug for Foss. Tug will be built in modules, and the yard ordered steel for a bow machinery section, engineroom and a space behind the engineroom. The tugs, which will have ice strengthened hulls, will be built in a new, 11,000ft2 facility. The first tug is to be delivered in December of 2014, and the other two are to be finished 12 and 24 months later, respectively. Tugs will be powered by twin CAT C280-8 low emission Tier II main engines totaling 7,268BHP with Reintjes gears and kort nozzles. Winches will be provided by Markey Machinery of Seattle.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

27

Marcon International, Inc. Tug Boat Market Report – May 2013

2012 was a big year for Wärtsilä with their largest ever acquisition with the purchase of Hamworthy; positive development in all three of their business lines – Power Plants, Ship’s Power and Services; net sales growing by 12% and profitability kept at 10.9%. In Ship Power markets, the traditional merchant segment continued to struggle with overcapacity and, as a result the number of global vessel orders was 35% down from the previous year. Despite the weak overall markets, Wärtsilä Ship Power performed strongly and its order intake grew by 45%. Wärtsilä’s position is good in the growing offshore markets, not least in Brazil where they secured several important orders. There was continued strong interest in marine gas solutions, and the orders received demonstrate a leading position in the dual-fuel markets. Overcapacity and low freight rates in the marine industry have impacted Wärtsilä’s Services customer base, and utilization of the global fleet has been at historically low levels. After three stable years, growing by 5% in this tough environment was a great achievement. This growth was fuelled by offering services aimed at reducing customers' operating expenses and increasing availability of their equipment, as well as by the growth in the installed power plant engine base. Today, 35% of ships are built in China. In order to secure a strong presence in the important Chinese shipbuilding market, Wärtsilä signed an agreement with Yuchai Marine Power Co. Ltd. to establish a joint venture for manufacturing medium-speed marine engines. Furthermore, the existing Chinese joint venture factory manufacturing auxiliary engines is planning to expand its production capacity. Wärtsilä's order intake for the financial period January-December 2012 totaled EUR 4,940 million (4,516), an increase of 9%. Ship Power's order intake was EUR 1,453 million (1,000), an increase of 45% over the corresponding period last year. Throughout 2012, there was good order activity in Offshore and Special Vessels segments. Wärtsilä received several significant orders for the delivery of total solutions, including ship design, propulsion machinery, automation and other equipment as well as several orders for environmental solutions, such as exhaust gas cleaning systems for SOx removal and the first orders for ballast water management systems. In the Offshore segment, major orders included those for nine drill ships and six pipe laying vessels related to the ongoing Brazilian offshore program, and for several platform support vessels. Wärtsilä received many orders for dual-fuel engines. Dual-fuel equipment will be delivered among others for a Canadian passenger ferry, for two gas tankers to be built for a Dutch shipping company, for two Chinese tug boats, for a dry cargo inland waterway vessel to operate in Europe, for a guideship ordered by the Korean port authority, as well as for three offshore support vessels to operate in the Gulf of Mexico. The Offshore segment represented 46% of the total order intake, while the Merchant segment share was 28% and Special Vessels 12%. The Cruise & Ferry segment's share was 6% and Navy represented 7% of the order intake. Other orders accounted for 1%. Order intake in the Wärtsilä Hyundai Engine Company Ltd joint venture company in South Korea, and the Wärtsilä Qiyao Diesel Company Ltd joint venture company in China, producing auxiliary engines, totaled EUR 242 million (394) during the financial period January-December 2012. Wärtsilä's share of ownership in these companies is 50%. At the end of the financial period, Wärtsilä's total order book stood at EUR 4,492 million (4,007), an increase of 12%. The Ship Power order book stood at EUR 2,127 million (1,684), an increase of 26%. Despite the continued uncertainty in the economy, Wärtsilä's outlook for 2013 remains stable. They expect overall gas and liquid fuel based power generation markets to be similar to that of 2012, and that activity will remain focused on the emerging markets. Wärtsilä remains cautious about the outlook for the overall shipbuilding markets, but they expect continued activity in the offshore and specialized vessel markets. The service market outlook remains stable with good development in the installed power plants base offsetting less favorable overall outlook for marine services. During 2012, uncertainty over the global economic development continued. Compared to 2011, global GDP growth decreased from 3.8% to 3.3%. GDP growth was highest in Asia, the Middle East and Africa. Wärtsilä's net sales in 2012 grew by 12%, with Asia representing 43% of net sales and approx. 80% of the net sales growth. The majority of Wärtsilä Power Plants' orders came from the higher growth emerging markets and the largest single region was the Middle East and Africa. Shipbuilding continues to be concentrated in Asia, and Wärtsilä's two largest countries in terms of net sales were South Korea and China. South Korea's position was strong due to the high share of offshore vessel contracting. The lower GDP growth had a negative impact on certain Ship Power and Services marine customer groups, especially in the merchant markets and in Europe. Stronger global GDP growth would be required for the merchant market to absorb the current overcapacity and for activity in vessel contracting to increase. Due to the overcapacity and low freight rates in the marine markets, there is less spending on discretionary maintenance and investments.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

28

Marcon International, Inc. Tug Boat Market Report – May 2013

During the year, changes were made to the Ship Power organization as part of creating a new entrepreneurially driven organization within Wärtsilä. Ship Power is today organized by product lines, namely 4-stroke, 2-stroke, Propulsion, Flow & Gas, Environmental, and Solutions, which includes both the Electrical & Automation and Ship Design product lines. One shared Sales organization is responsible for customer relationships, uncovering customer needs, and for the sales network globally. With this new organization, Ship Power will have better end-to-end control of its activities. This includes R&D, engineering and manufacturing, which, with the exception of 4-stroke, have been transferred to their respective product lines. Because of the transportation limitations related to the large size of low-speed engines, 2-stroke remains a licensing business and has no own manufacturing. Demand in the shipbuilding and shipping industries is mainly driven by developments within the global economy and the resulting impact on trade and transportation capacity requirements. The global economy also influences fuel prices, which in turn has both a direct and an indirect impact on the shipping and offshore oil & gas industries. High fuel prices drive the development in the offshore oil & gas industry while in the general shipping industry they increase the demand for efficient vessels. Other factors, such as shipyard capacity, new build prices, decommissioning and scrapping, interest and freight rates, and environmental considerations and regulations, also affect these industries. Global demand for new vessels drives Wärtsilä Ship Power’s business, in particular ships built for seaborne cargo transportation, offshore oil production and support, cruise and ferry services, and for naval use. Another important factor is the demand for environmental solutions and gas as a marine fuel resulting from environmental regulations. Moreover, the increasing demand for oil and gas, together with declining production from traditional fields, supports new offshore investments in deepwater and remote locations. Wärtsilä Ship Power broadened its portfolio, which ranges from engines and propulsion equipment to electrical equipment, automation and ship design. Furthermore, acquisition of Hamworthy positions Wärtsilä to grow in environmental solutions and gas systems for vessels. Medium-speed engines are Wärtsilä's core product and are used mainly in Offshore and specialized vessel segments, such as cruise ships and LNG carriers. Wärtsilä, with a 47% market share (down from 48% in 2011) has a strong position in medium-speed engine markets in which their largest competitors are MAN Diesel & Turbo with 23% (23%) and Caterpillar (MAK) at 5% (6%) and others a total of 25% (up from 23% the previous year). In dual-fuel engines market Wartsila is the leading player with widest references in the industry. In the market for low-speed engines, MAN Diesel & Turbo is the leading player followed by Wärtsilä and Mitsubishi Heavy Industries. New registered vessel contracts decreased by 35% to 1,090 during 2012. While the traditional merchant segment continued to struggle with overcapacity, ordering was active in offshore, special vessels and in LNG and LPG carrier markets. China and South Korea continued to be dominant countries in shipbuilding. Wärtsilä's share of the mediumspeed main engine market remained high at 47% (48% end previous year). Market share in low-speed engines remained stable at 18% (18). In auxiliary engines, Wärtsilä's share was 4% (5). Ship Power orders increased by 45% to EUR 1,453 million during 2012. Wärtsilä received several significant offshore orders as well as many orders for dual-fuel engines, underlining Wärtsilä’s position in gas applications. Supported by recent developments in environmental regulation, Wärtsilä also received strategically noteworthy orders for exhaust gas cleaning systems for SOx removal and the first ballast water management system orders. Net sales for Ship Power increased by 27% to EUR 1,301 million (1,022) during 2012, which represents 28% of Wärtsilä's total net sales. The business environment for shipping and shipbuilding is challenging and concerns over the global economy continue to cause uncertainty. Traditional merchant segments remain under pressure, as the industry waits to see how trade conditions develop in 2013. Wärtsilä’s outlook for shipping and shipbuilding in 2013 is cautious, although slightly better than in 2012. Contracting outlook remains challenging for certain ship types, such as bulk carriers, due to remaining overcapacity. Overall, the contracting mix is expected to be in line with that seen in 2012, favoring offshore & specialized vessel segments. Interesting opportunities can be seen in environmental solutions and fuel efficient designs. Wärtsilä expected net sales for 2013 to grow by 0-10% and operational profitability (EBIT% before non-recurring items) to be around 11%.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

29

Marcon International, Inc. Tug Boat Market Report – May 2013

Wärtsilä’s interim report for January – March 2013 showed strong growth in order intake. According to Bjorn Rosengren, President and CEO: “The beginning of 2013 developed according to our expectations. Order intake grew by 22%, thanks to good development in both Power Plants and Ship Power, especially in the offshore segment. First quarter net sales and profitability were impacted by the anticipated low level of deliveries, mainly due to timing of projects. Interest in natural gas based power generation continued and Power Plants received significant orders from Jordan and USA. In Ship Power, the offshore and specialized vessel markets remained robust. Strategically important orders were received for exhaust gas cleaning systems, and for comprehensive solutions packages from the offshore industry. There is continued interest in service agreements in the marine industry, as evidenced by the maintenance agreement signed for ‘Viking Grace’, the largest passenger ferry ever to operate on liquefied natural gas. Supported by our solid order book and the stable Services business, our prospects for 2013 remain unchanged.” Wärtsilä’s outlook for the shipping and shipbuilding markets in 2013 is cautious, although market conditions are expected to be better than in 2012. Despite the recent pick up in orders, financing and overcapacity related issues are still visible in the traditional merchant markets. The orders placed in these markets focus more on fuel-efficient design and technology. Current emission regulations create interesting opportunities for environmental solutions. The contracting mix is expected to be in line with that seen in 2012, favoring contracting in the offshore and specialized vessel segments. The outlook for gas demand remains healthy, and the attractiveness of LNG as a fuel is supported by its low carbon intensity, global trade, and pricing. The overall service market outlook remains stable despite the slower start in 2013 compared to 2012. A continued increase in the medium-speed engine and propulsion installed base helps to balance the market environment in regions such as Europe, where the market is expected to remain challenging - especially on the marine side. The outlook for the Middle East and Asia continues to be slightly more positive, supported by interest in power plant related service projects. The outlook is also good in the Americas, where there is a mix of marine and power customers. The outlook for offshore services remains positive. During the first quarter of 2013, 286 contracts for new vessels were registered. This represents an increase in contracting activity of approx. 40% compared to the corresponding period in 2012. Competitive new building prices have attracted some investments in merchant vessels. The gas carrier market (LNG carriers and LPG carriers) continued to be active, with a total of 26 contracts registered during the first quarter of 2013. Moreover, contracting of offshore and specialized vessels remained robust. China and South Korea captured 38% and 39% respectively of the contracts confirmed during the first quarter of 2013 in terms of compensated gross tonnage (CGT), while Japan secured 13%. 53 orders were placed outside of these top three shipbuilding countries during the first quarter. Wärtsilä's share of the medium-speed main engine market increased slightly to 48% (47% at the end of the previous quarter). The market share in low-speed engines decreased to 15% (18). In the auxiliary engine market, Wärtsilä's share remained at 4% (4). The total order book at the end of the review period stood at EUR 4,998 million (4,409), an increase of 13%. At the end of the review period, the Power Plants order book amounted to EUR 1,787 million (1,578), an increase of 13%. The Ship Power order book stood at EUR 2,342 million (2,060), which is 14% higher than at the same date last year. Outlook for the shipping and shipbuilding markets in 2013 is cautious, although market conditions are expected to be better than in 2012. Despite the recent pick up in orders, financing and overcapacity related issues are still visible in the traditional merchant markets. The orders placed in these markets focus more on fuel-efficient design and technology. Current emission regulations create interesting opportunities for environmental solutions. The contracting mix is expected to be in line with that seen in 2012, favoring contracting in the offshore and specialized vessel segments. The outlook for gas demand remains healthy, and the attractiveness of LNG as a fuel is supported by its low carbon intensity, global trade, and pricing. Wärtsilä expects prospects for 2013 to be unchanged, with net sales for to grow by 0-10% and operational profitability (EBIT% before non-recurring items) to be around 11%.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

30

Marcon International, Inc. Tug Boat Market Report – May 2013

Despite economic and political uncertainty in the United States, continued economic turmoil in much of Europe and slower growth in China, Caterpillar Inc. of Peoria, Illinois enjoyed record 2012 sales and revenues of $65.875 billion, an increase of 10% from $60.138 billion in 2011. Profit was $5.681 billion, an increase of 15% from $4.928 billion in 2011. Fourth-quarter 2012 sales and revenues were $16.075 billion, down $1.168 billion from $17.243 billion in fourth quarter 2011. The impact of changes in dealer new machine inventories lowered sales by about $1.4 billion as dealers reduced inventories about $600 million in fourth quarter 2012, compared with an increase of about $800 million in fourth quarter 2011. Fourth-quarter 2012 profit was $697 million compared with $1.547 billion in the fourth quarter of 2011. Fourth-quarter 2012 profit was negatively impacted by the previously announced goodwill impairment charge of $580 million. Lower sales and revenues and the cost impact from sharply lower production and the $2 billion decline in Caterpillar inventory also had a negative impact on fourth-quarter profit. Those impacts were partially offset by a $300 million positive impact related to the settlement of prior-year tax returns. “From an operational standpoint, 2012 was a very successful year with record sales and profit in a tough economic climate. Considering the weak economy in the United States, along with much of Europe in recession and China slowing, we had a solid year. Our incremental operating profit pull through was very good, we made progress adjusting inventory levels, and our quality and safety indicators continued to improve,” said Caterpillar Chairman and CEO Doug Oberhelman. “I'm extremely pleased with our performance on reducing inventory $2 billion in the fourth quarter. As the world economy began to soften at mid-year, we increased our focus on reducing inventory. Cat dealers also worked to lower their inventories, and, as a result, reduced their order rates during the second half of 2012. The result was a substantial reduction in our production levels and inventory. The reductions had a significantly negative impact on fourth-quarter sales and profit. The $2 billion inventory reduction in the fourth quarter was a remarkable effort, but we're not done. Reduced production levels are likely to continue at least through the first quarter of 2013 until inventories and dealer order rates move back in line with end-user demand.” Outlook for 2013 is sales and revenues in a range of $60 to $68 billion. “The range of our 2013 outlook reflects the level of uncertainty we see in the world today. We're encouraged by recent improvements in economic indicators, but remain cautious. While we expect some improvement in the U.S. economy, growth is expected to be relatively weak. We believe China's economy will continue to improve, but not to the growth rates of 2010 and 2011. We also remain concerned about Europe and expect economies in that region will continue to struggle in 2013," said Oberhelman. “If the recent improvement in economic indicators continues, 2013 could be another record year for Caterpillar. We expect the first half of 2013 will be weaker than the first half of 2012, with better growth in the second half. However, if, like the last two years, growth and confidence decline in the second half, 2013 could be a tough year. Either way, as we demonstrated with inventory reductions in the fourth quarter, our team is prepared to execute and deliver.” Total sales and revenues were down or 7%, from fourth quarter 2011. Excluding acquisitions and divestitures, sales decreased in all geographic regions except Latin America, with the most significant decrease in North America. Within Asia/Pacific, decreases in China and other parts of Asia/Pacific more than offset sales increases in Australia and Japan. Within EAME [Europe, Africa, Middle East & the Commonwealth of Independent States (CIS)], lower sales in Europe and CIS were partially offset by increased sales in the Middle East and Africa. Decrease in sales was primarily due to Construction Industries, with sales down 25%. Excluding acquisitions and divestitures, Resource Industries' sales improved 16%, and Power Systems' sales decreased 9%. Financial Products' revenues were up 5%. Power Systems’ sales were $5.307 billion in fourth quarter 2012, a decrease of $365 million, or 6%, from fourth quarter 2011. The decrease was the result of lower sales volume, partially offset by acquisition of MWM Holding GmbH and improved price realization. Sales decreased in all regions except Asia/Pacific. Excluding acquisitions, sales for petroleum, industrial and electric power applications were lower. Most of the decline was a result of dealers reducing inventory levels in 2012 compared with dealers increasing inventory levels in 2011. Rail-related sales also declined. Power Systems’ profit was $697 million in fourth quarter 2012 compared with $823 million in fourth quarter 2011. The decrease was primarily due to lower sales volume (which includes impact of a favorable mix of products), partially offset by favorable price realization. MWM, acquired during the fourth quarter of 2011, added sales of $127 million, primarily in EAME, and increased segment profit by $26 million.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

31

Marcon International, Inc. Tug Boat Market Report – May 2013

World economic conditions, while improving, are still relatively weak. Indicators improved in many countries in late 2012, suggesting better prospects for growth in 2013. In large economies, CAT expects some improvement in the U.S. and China, and a continuation of economic uncertainty in Europe. Overall, Caterpillar expects the world economy will begin the year with weak growth and improve as 2013 unfolds. CAT anticipates overall world economic growth of at least 2.5% - a small improvement from their estimate of 2.3% for 2012. Key points related include: Central banks reduced interest rates over the past 15 months and further cuts are possible. With inflation low, CAT expects little pressure to tighten policies in 2013. Except for Europe, monetary easing will likely offset much of the impacts of tighter fiscal budgets. Overall, Caterpillar expects economic policies will be the most favorable for growth since 2010. One sign lower interest rates are working is that both manufacturing and service purchasing manager indices improved over the past few months. Both ended 2012 at values that signal growth. Another positive sign is that metals prices improved from mid-August 2012 lows, and fourth-quarter data for China indicates increased imports of coal, iron ore and copper. CAT expects economic growth will improve demand for most metals in 2013, and average metal prices in 2013 will be higher than 2012. Caterpillar expects copper will average $3.75 per pound in 2013 and China port iron ore $135 per ton. Those prices will likely be attractive for production and investment. Coal prices also improved in late 2012, but are currently 5% to 20% below a year ago. CAT expects that continued relatively low prices for U.S. natural gas will keep pressure on coal prices in 2013. Caterpillar is expecting Central Appalachian coal will average about $65 per ton, slightly higher than $63 per ton in 2012. Average interest rates in developed economies are already below lows reached during the financial crisis, so prospects for lower rates are limited. However, some central banks are adding liquidity in financial systems to increase economic growth. Growth in developed economies will likely be slow in early 2013 and improve throughout the year. CAT expects economic growth will average about 1.5% this year, slightly above 2012. Financial conditions have improved in the U.S. in response to past U.S. Federal Reserve easing. Credit spreads are down, bank capital ratios are near record highs and banks are easing lending standards. The Fed’s plan to increase monthly bond purchases to $85 billion will likely help ease financial conditions and increase lending. CAT expect the U.S. economy to grow at least 2.5% in 2013. Underlying fundamentals that support U.S. housing construction continue to improve. Housing affordability is better, inventory of unsold homes has come down significantly over the past few years and home prices have begun to recover. As a result, CAT expects housing starts to exceed 1 million units in 2013, which would be the highest year since 2007. Nonresidential building construction in the U.S. improved in 2012, and Caterpillar expects further growth in 2013. Vacancy rates are down, and property prices are up, both trends that CAT expect to continue. Infrastructure construction is likely to be higher as we expect state and local government spending to increase in 2013. Interest rates in the Eurozone are at record lows, and credit spreads are improving. However, economic policies are less aggressive than in Japan and the U.S. As a result, CAT expects growth in the Eurozone will struggle to match 2012, and that construction activity will decline for the sixth consecutive year, reaching the lowest level since at least 1990. Caterpillar expects the new Japanese government to ease monetary policy and increase infrastructure spending. CAT expects Japanese economic growth near 1% in 2013. Developing economies have been lowering interest rates for more than a year, and average rates are close to levels reached during the financial crisis. Low interest rates will likely contribute to better growth. Caterpillar expects that, in the aggregate, developing economies will grow at more than 5% in 2013. China’s economic slowdown in 2012 unfavorably impacted construction in China and world prices for metals, coal and oil. In the second half of 2012, the Chinese government accelerated credit growth and infrastructure spending, and, as a result, economic data in the fourth quarter improved. CAT’s outlook assumes the Chinese government will maintain pro-growth policies throughout 2013. Caterpillar expects economic growth near 8.5% and a more favorable environment for construction and commodity demand. Most other Asian countries also lowered interest rates in 2012, and CAT expects faster economic growth in 2013 than 2012. Better economic growth is expected to be positive for construction. Interest rates in Latin America have also been declining and are at record lows in Brazil. Caterpillar expects lower interest rates, higher commodity prices and better world economic growth will improve economic growth in the region to about 4% in 2013. CAT also expect construction activity to improve as a result of better economic growth and large infrastructure programs. Most countries in Africa/Middle East and CIS maintained economic policies close to those adopted in the financial crisis, and, as a result, growth has generally been sustained. Caterpillar expects pro-growth policies will continue throughout 2013, allowing about 4% economic growth in Africa/Middle East and in the CIS.

Economic policies became more pro-growth in 2012, and, as a result, recent economic data has been more favorable. Overall, Caterpillar expects policies to become even more stimulative, so upside to their outlook is possible. As in the past, CAT is concerned that central banks will reverse policies too early once better economic growth becomes apparent. A downside risk is Eurozone growth lagging behind the rest of the world. As the disparity becomes more evident, concern about the Eurozone economy and its currency could return.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

32

Marcon International, Inc. Tug Boat Market Report – May 2013

On 22nd April, Caterpillar reported its first quarter 2013 results and revised their outlook. First-quarter 2013 sales and revenues were $13.210 billion, a decline from $15.981 billion in the first quarter of 2012. Profit was $880 million in the first quarter of 2013, compared with $1.586 billion in the first quarter of 2012. “In our year-end 2012 financial release, we said the first quarter of 2013 would be challenging, and it certainly was. As expected, inventory changes were a major factor. Caterpillar and our dealers usually add inventory in the first quarter to prepare for higher end-user demand in the spring and summer. In the first quarter of 2012, we added about $2 billion to inventory, but this year, we cut inventory by about a half billion dollars. In the first quarter of 2012, Cat dealers added machine inventory of about $875 million, and this year, they reduced machine inventory by about $700 million. Those are significant year-to-year swings, and coupled with moderating end-user demand, resulted in sales and revenues being down 17%,” said Caterpillar Chairman and CEO Doug Oberhelman. “Considering the magnitude of the decline in sales and production, I am very pleased with our performance in the first quarter. We did a good job managing costs and made even more progress on inventory reduction. Operating cash flow was a highlight in the quarter and improved nearly $900 million from the first quarter of 2012. Better cash flow and the strength of our balance sheet are enabling us to resume stock repurchases,” Oberhelman added. Caterpillar revised their outlook for 2013 to reflect sales and revenues in the range of US$ 57 – 61 billion. The previous outlook for 2013 sales and revenues was a range of US$ 60 – 68 billion. “What’s happening in our business and in the economy overall is a mixed picture. Conditions in the world economy seem relatively stable, and we continue to expect slow growth in 2013,” said Oberhelman. “As we began 2013, we were concerned about economic growth in the United States and China and are pleased with the relative stability we have seen so far this year. In the United States, we are encouraged by progress so far and are becoming more optimistic on the housing sector in particular. In China, first quarter economic growth was slightly less than many expected, but in our view, remains consistent with slow growth in the world economy. In fact, our sales in China were higher in the first quarter of 2013 than they were in the first quarter of 2012, and machine inventories in China have declined substantially from a year ago.” The decline in the outlook for sales and revenues is primarily related to mining equipment sales. Power Systems’ sales were $4.405 billion in the first quarter of 2013, a decrease of $582 million, or 12%, from the first quarter of 2012. The decrease was primarily the result of lower volume. Sales decreased in all regions. Sales were lower for nearly all applications, with the most significant decreases in electric power and industrial applications. More than one-third of the sales decline was a result of dealers reducing their inventory levels in the first quarter of 2013, compared with dealers increasing inventory levels in the first quarter of 2012. Power Systems’ profit was $598 million in the first quarter of 2013 compared with $812 million in the first quarter of 2012. The decrease was primarily due to lower sales volume and losses on a powergeneration project in EAME [Europe, Africa, the Middle East and the Commonwealth of Independent States (CIS)]. These unfavorable impacts were partially offset by favorable price realization, decreased SG&A and R&D expenses and the absence of expenses in the first quarter of 2012 from the closure of the Electro-Motive Diesel facility located in London, Ontario. Caterpillar’s expectation for world economic growth is about the same as the outlook included with their year-end 2012 financial results. They anticipate overall world economic growth of about 2.5% - a small improvement from 2.3% in 2012. Purchasing manager indicators improved in the first quarter, and industrial production increased in the majority of countries. Both indicate that world economic growth is benefiting from monetary easing that started 19 months ago. Central banks continued easing in the first quarter, and Cat expects the world economy will continue to improve in 2013.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

33

Marcon International, Inc. Tug Boat Market Report – May 2013

GE first-quarter 2013 operating earnings of $4.1 billion were up 14% from first quarter 2012. Firstquarter revenues were flat at $35.0 billion. Industrial sales of $22.3 billion fell 6% versus the first quarter of 2012. GECC revenues of $11.5 billion rose 2% from last year. “Our equipment orders were strong in the quarter, growing 10%, with Oil & Gas orders up 24%, and Aviation up 47%,” said GE Chairman and CEO Jeff Immelt. “In growth markets, equipment and service orders grew 17%. We ended the quarter with our biggest backlog in history.” Total infrastructure orders for the quarter rose 3% to $23.8 billion, and were up 6% excluding the effects of Wind and FX. Infrastructure order pricing rose 0.6% for the quarter. The ratio of equipment orders received to sales billed (book-to-bill) was 1.3. Immelt continued, “GE’s markets were mixed. The U.S. and growth markets were in line with expectations. We planned for a continued challenging environment in Europe, but conditions weakened further with Industrial segment revenues in the region down 17%. Overall, Power & Water markets were worse than we expected. While we anticipated significantly fewer wind and gas turbine shipments, we saw additional pressure in European Power & Water services. This weakness also had a negative impact on margins. We always anticipated that the first half of 2013 would be our toughest comparison; we expect Power & Water to improve during the year and be positive in the second half.” The remainder of the Industrial segments grew profits 6%, with 40 basis points of margin growth. GE saw solid growth in Aviation and Transportation, and excluding the impact of FX, growth in Oil & Gas. Transportation revenues for first quarter 2013 were $1.422 billion, up 12% over the same period in 2012. Cummins Inc. first quarter revenues of $3.9 billion decreased 12% from the first quarter of 2012. Revenues in North America declined by 15% and international revenues declined by 10% as the Company experienced weaker demand in most major geographies and end markets. Earnings before interest and taxes (EBIT) were $437 million or 11.1% of sales, compared to $658 million or 14.7% of sales a year ago. The most significant decline in demand occurred within the Engine Business, with total unit volumes down 18% year-over-year. Shipments of high horsepower engines declined by 24% due to weakness in mining, oil and gas and power generation markets. Engine sales were $2.3 billion, down 19% over first quarter 2012 with lower demand in North American heavy duty truck, oil & gas, and bus markets and global mining the most significant drivers of the lower revenues. “As anticipated, we experienced weak demand in the first quarter in many of our major markets,” said Chairman and CEO Tom Linebarger. “While uncertainty remains in a number of markets, we expect that the first quarter will mark the low point of the year for Company revenues. We expect moderately improving order trends in onhighway and construction markets in North America to be the most significant drivers of improvement in revenues going forward. We continue to make investments in our distribution system and in new products as we remain focused on future profitable growth.” Based on the current forecast, the Company expects full year revenues to be flat to down 5% and EBIT to be in the range of 13 to 14% of sales. Tognum AG of Friedrichshafen achieved revenue and profit targets for 2012. Revenues increased slightly last year by 1.4% as expected to €3.015 billion (2011: €2.97 billion). With an adjusted EBIT of €296 million, adjusted EBIT margin was at 9.8% (2011: 11.6%). In August last year, Tognum specified its forecast for full year 2012. Tognum subsequently announced anticipated growth in revenues in the lower single-digit percentage range, with an adjusted EBIT margin of around 10%. “Following a successful start to 2012, a cooling global economic environment was noticeable around the middle of the year,” states Joachim Coers, CEO of Tognum AG. “As a result of an unusually strong fourth quarter, we were nevertheless able to increase revenues for the year to over three billion euros and thus achieved slight growth.“ An Extraordinary General Meeting of Tognum in November 2012 approved a Domination and Profit and Loss Transfer Agreement concluded with Engine Holding GmbH, the joint venture set up by Daimler and Rolls-Royce. As a result, Rolls-Royce plc. will fully consolidate Tognum’s business figures for 2013.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

34

Marcon International, Inc. Tug Boat Market Report – May 2013

As of 16th May 2013, MarineLog and Tim Colton reported 30 tugs on the order books in the U.S., up four since February. At this same time, Lloyd’s reports 14 “sea-going” U.S. flag tugs on the books.

Shipbuilder

Location

Type

Customer

Name

Description

Contract ($mm)

Delivery

U.S. Shipbuilding Contracts Bollinger SY

Amelia LA

Ocean Tug

Crowley Maritime

Ocean Sun

10,880HP

3Q12

Bollinger SY

Amelia LA

Ocean Tug

Crowley Maritime

Ocean Sky

10,880HP

1Q13

Chesapeake SB

Salisbury MD

Tug

Vane Brothers

3,000-HP

2013

Chesapeake SB

Salisbury MD

Tug

Vane Brothers

3,000-HP

2013

Diversified Marine

Portland OR

ASD Tug

Harley Marine

Foss SY

Rainier OR

Tug

Foss Maritime

14-Dec

Foss SY

Rainier OR

Tug

Foss Maritime

15-Dec

Foss SY

Rainier OR

Tug

Foss Maritime

Great Lakes SY

Cleveland OH

ASD Tug

Caribbean Tugs

Aura

4,640HP

12

Great Lakes SY

Cleveland OH

ASD Tug

Caribbean Tugs

Atlas

4,640HP

12

Leevac Shipyards

Jennings LA

Escort Tug

Bay Houston Towing

Leevac Shipyards

Jennings LA

Escort Tug

Suderman & Young

Nichols Bros. BB

Freeland WA

Tug

Harley Marine

Robert Franco

Nichols Bros. BB

Freeland WA

Tug

Harley Marine

Ahbra Franco

100 ft.

2013

Patti SY

Pensacola FL

ASD Tug

Signet Maritime

Signet Intrepid

105 ft.

13-Dec

Patti SY

Pensacola FL

ASD Tug

Signet Maritime

Signet Vigilant

105 ft.

14-Mar

Raymond Assoc

Bayou La Batre AL

Tug

North Bank Towing

6,000HP

2013

Raymond Assoc

Bayou La Batre AL

Tug

North Bank Towing

6,000HP

2013

SENESCO

North Kingston RI

ATB Tug

Reinauer Tptn.

2012

SENESCO

North Kingston RI

ATB Tug

Reinauer Tptn.

2012

SENESCO

North Kingston RI

ATB Tug

Reinauer Tptn.

SENESCO

North Kingston RI

Tractor Tug

McAllister Bros.

Eric M. McAllister

5,150HP

2013

Signal International

Orange TX

ATB Tug

Kirby Ocean Tpt.

Captain Donald Lowe Sr

6,000HP

12-May

Signal International

Orange TX

ATB Tug

Kirby Ocean Tpt.

6,000HP

12-Dec

Signal International

Orange TX

ATB Tug

Great Lakes Dredge

14,000HP

14-Jun

Signet SB

Pascagoula MS

Tug

Signet Maritime

Signet Magic

5,150-HP

13-May

VT Halter

Pascagoula MS

ATB Tug

Bouchard Tptn.

Bouchard Boys

10,000HP

2Q15

VT Halter

Pascagoula MS

ATB Tug

Bouchard Tptn.

Bouchard Boys

10,000HP

4Q15

Washburn Doughty

East Boothbay ME

Tug

Seabulk Towing

2013

Washburn Doughty

East Boothbay ME

Tug

Seabulk Towing

2013

Bob Franco

120 ft.

2013

16-Dec 2013 2013

80 ft.

13-Jun

80 ft.

13-Sep

100 ft.

2013

2012

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

35

Marcon International, Inc. Tug Boat Market Report – May 2013

The Economy and the Towing Industry Global economic prospects improved again (slightly), but the road to recovery in the advanced economies remains bumpy and we most likely will still see many ups and downs. While the Dow Jones Industrial and S&P 500 hit new highs in the last couple of months, global economic recovery is still frustratingly slow. World output growth is forecast to reach 3.25% in 2013 and 4% in 2014. In advanced economies, activity is expected to gradually accelerate, starting second half 2013. According to the International Monetary Fund, what was until now a two-speed recovery - strong in emerging market and developing economies but weaker in advanced economies, is becoming a three-speed recovery. Emerging market and developing economies are still going strong, but in advanced economies, there is a growing bifurcation between the United States on one hand and the euro area on the other. The way our world is so closely interconnected especially in the maritime industry, what happens in Europe or Asia or Africa does not just affect the local area. As of April 2013’s “World Economic Outlook”, growth in emerging market and developing economies is forecast to reach 5.3% in 2013 and 5.7% in 2014. Growth in the United States is forecast to be 1.9% in 2013 and 3.0% in 2014. In contrast, growth in the euro area is forecast to be – 0.3% in 2013 and only reach +1.1% in 2014. The growth figure for the U.S. for 2013 may not seem very high, and indeed it is insufficient to make a large dent in the still-high unemployment rate. But it will be achieved in the face of a very strong, indeed overly strong, fiscal consolidation of about 1.8% of GDP. Underlying private demand is actually strong, spurred in part by anticipation of low policy rates under the Federal Reserve’s “forward guidance” and pent-up demand for housing and durables. The forecast for negative growth in the euro area reflects not only weakness in the periphery but also some weakness in the core. Germany’s growth is strengthening but is still forecast to be less than 1% in 2013. France’s growth is forecast to be negative in 2013. Output growth in Latin America and the Caribbean moderated to 3% in 2012 (from 4.5% in 2011), with a pronounced deceleration in some of the region’s largest economies. Growth is set to pick up to 3.5% in 2013, supported by stronger external demand and the effects of earlier policy easing in some countries. Economic performance was subdued in Asia during 2012,but growth is set to pick up gradually this year on strengthening external demand and continued robust domestic demand. For Asia as a whole, growth will pick up modestly to about 5.75% in 2013. Growth in the Middle East – North Africa region (MENA) was relatively robust at 4.75% in 2012, but is expected to weaken to about 3% in 2013 largely because of an expected slowdown among oil exporters. Regardless of what the stock markets are doing, it is obvious that there is no quick fix. We are experiencing true “trickle-down economics” in a negative way in real life, not just as a theory bandied about in the halls of Congress. A weak economy and lack-luster confidence levels means reduced consumption and world trade which trickles down to low cargo throughput in our ports and lower utilization and earnings for the millions of ships and barges that make up our global maritime industry. 2013 will be better than 2012 for most regions outside of the Euro zone, but growth is still only occurring “inch-by-inch” and our slow growth remains fragile while global unemployment rates are at the current high levels which continue to dampen consumption. After seeing an average of 7.2% between 1995 and 2007, the volume of world trade in goods is expected to grow only 3.5% in 2013 and 5.3% in 2014. Volume of World Trade In Goods & World Exports in Billions of U.S. Dollars

Volume World Exports Avg. Oil Price $/BBL

Average 19952004 7.2% $6,320 $23.21

Average 20052014 4.4% $15,558 $83.58

2005

2006

2007

2008

2009

2010

2011

2012

7.6% 10,436 $53.35

9.1% 12,061 $64.27

7.3% 13,971 $71.13

2.5% 16,064 $97.04

-11.7% 12,489 $61.78

14.0% 15,175 $79.03

6.3% 18,154 $104.01

2.4% 18,255 $105.01

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

Projecte d 2013 3.5% 19,056 $102.60

Projecte d 2014 5.3% 19,932 $97.58

36

Marcon International, Inc. Tug Boat Market Report – May 2013

The Organization for Economic Co-operation and Development also sees the global economy moving forward, but with countries and regions showing uneven progress. Historically high unemployment is still the most serious challenge. The OECD’s latest “Economic Outlook” forecasts world real GDP to increase 3.1% this year and 4% in 2014. Across OECD countries, GDP is projected to rise by 1.2% in 2013 and by 2.3% in 2014, while growth in non-OECD countries will rise by 5.5% this year and 6.2% in 2014. In the US, activity is projected to rise by 1.9% in 2013 and by a further 2.8% in 2014. GDP in the euro area is expected to decline by 0.6% this year and then rebound by 1.1% in 2014, while in Japan GDP is expected to grow by 1.6% in 2013 and 1.4% in 2014. “The global economy is strengthening gradually, but the upturn remains weak and uneven,” said OECD Secretary-General Angel Gurría. “Supportive monetary policies, improving financial market conditions and a gradual restoration of confidence are at the root of the recovery. Also, the fiscal adjustment of the last few years is beginning to pay off. Several countries are close to stabilizing their government debt-to-GDP ratios and ensuring a gradual decline in indebtedness over the longer term,” Downside risks have narrowed, but are still large. Adverse interactions between weakly capitalized banks, government finances and the real economy remain a significant risk in the euro area. Fiscal concerns remain in the United States and Japan in the absence of credible medium-term consolidation plans. Future withdrawal of exceptional monetary policy measures could lead to instability in financial markets. There is a risk that potential growth rates may fall lower than estimated. According to the OECD, government policy should focus on measures to enhance growth, make public finances more sustainable and growth-friendly and implement structural reforms to boost investment and create jobs. In Europe, bolder measures to solve the financial and banking crisis once and for all are needed to ensure a faster, stronger and more sustainable recovery. The OECD warns that urgent action must be taken to reduce unemployment, which has risen to dangerous levels. Jobs are being created in some parts of the OECD, but more must be done. While labor markets are set to firm gradually in the U.S. and Japan, unemployment is likely to continue to rise further in the euro area, stabilizing above 12% only in 2014. Youth unemployment needs to be tackled and policies adapted to make sure that cyclical unemployment does not become structural. I personally feel that we are throwing away the productivity of most of a generation, which is a waste of a good resource. Marcon’s offices are in the small town of Coupeville, Washington - the second oldest town in the State - and has a population of around 2,000. This morning the graduating class, as they do every year, drove through town along the waterfront with car radios blaring and honking horns in celebration. How many will find decent jobs? The International Chamber of Commerce’s May 2013 “Ifo World Economic Survey” continued to rise, even if only slightly. Both assessments of the current economic situation and the six-month economic outlook improved marginally compared to the previous quarter. There are a growing number of signs that the world economy is stabilizing. Conducted in co-operation with the International Chamber of Commerce (ICC), the Ifo World Economic Survey (WES) assesses worldwide economic trends by polling transnational and national organizations worldwide on current economic developments in their respective countries. In April 2013, 1,178 economic experts in 125 countries were polled. While the economic climate indicator rose only slightly in Western Europe and North America, it increased sharply in Asia. Thanks to a much brighter assessment of the economic situation and expectations, the indicator for Asia reached its highest mark since the end of 2010. In North America, assessments of the current economic situation are somewhat better, but remain below the satisfactory mark. Experts surveyed remain positive about the six-month economic outlook, but to a somewhat lesser degree than last quarter. In Western Europe the economic situation remains unfavorable. Economic expectations for the next six months, on the other hand, are slightly more positive, leading to a moderate overall improvement. The results point to the fact that the world economy seems to be falling into step. There might be an increasing trend towards higher growth rates, although business cycle dynamics remain moderate. Monetary policy in advanced economies remains strongly expansionary. Central banks in the U.S. and Japan announced plans to leave interest rates at their currently low level and to continue to implement quantitative easing measures until the economy stages a clear recovery. In Europe, restricted fiscal policy in many countries is constraining a strong upswing. In emerging countries, business cycle dynamics look to gain momentum. The second quarter 2013 “Global Business Outlook”, a joint effort between Duke University and CFO Magazine had more than 1,100 financial executives respond from across the world. For the CFO Optimism Index, which gives a broad view of the economic outlook for the country in which respondent CFOs work, U.S. CFOs rated their optimism about the U.S. economy at 61 on a scale of 0 to 100, a significant jump from last quarter’s 55. This is only the second quarter since 2007 that U.S. CFO optimism has been higher than the long run average of 59. Marcon’s response was 60. The Latin American Optimism Index dropped to 66 from last quarter’s 69 but is still the highest in the world. The Asian Optimism Index held steady at 61. European optimism also held steady but at 53, lowest of any region. Africa was surveyed for the first time this quarter and CFOs report optimism at 55, just above that in Europe.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

37

Marcon International, Inc. Tug Boat Market Report – May 2013

These Optimism numbers imply that 2013 growth will be moderate in the U.S., weak in Europe, and strong in most of Asia and Latin America. Growth will likely be moderately strong in Africa but with significant risk. Despite a jump in optimism about the overall economy, U.S. companies plan only moderate increases in business spending (planned increase of 6% over the next 12 months, up from 5% last quarter) and full-time domestic employment (up 1%, not enough to significantly affect the unemployment rate.) Full-time domestic employment is expected to fall in Europe and increase modestly in Asia. Employment in Latin America and Africa is expected to increase by more than 5%. Total nonfarm payroll employment in the U.S. increased by 175,000 in May, and the unemployment rate was essentially unchanged at 7.6%, the U.S. Bureau of Labor Statistics reported. Both the number of unemployed persons, at 11.8 million, and unemployment rate were essentially unchanged. In May, the number of long-term unemployed (jobless for 27 weeks or more) was unchanged at 4.4 million. These individuals accounted for 37.3% of unemployed. Over the past 12 months, the number of long-term unemployed declined by 1.0 million. The civilian labor force rose by 420,000 to 155.7 million in May; however, the labor force participation rate was little changed at 63.4%. Over the year, the labor force participation rate has declined by 0.4%. The employment-population ratio was unchanged in May at 58.6% and has shown little movement, on net, over the past year. The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was unchanged at 7.9 million. These individuals were working part time because hours had been cut back or because they were unable to find a full-time job. 2.2 million were marginally attached to the labor force, down from 2.4 million a year earlier. These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted because they had not searched for work in the 4 weeks preceding the survey. Among the marginally attached, there were 780,000 discouraged workers in May, little changed from a year earlier. Discouraged workers are not currently looking for work because they believe no jobs are available. The remaining 1.4 million persons marginally attached to the labor force in May had not searched for work for reasons such as school attendance or family responsibilities. Within government, federal government employment declined by 14,000 in May. Over the past 3 months, federal government employment has decreased by 45,000. Employment in major industries, including mining and logging, construction, manufacturing, wholesale trade, transportation and warehousing, showed little or no change over the month. While the official unemployment rate is at 7.6% or 11.750 million – and this is better than the 12.695 million unemployed one year ago when the rate was 8.2%. If you include 7.904 million ““involuntary part-time workers” (8.116 million in May 2012) who are unable to find a full time job or hours were cut back, 2.164 million (2,423) not counted because they had not looked for work in four weeks, and 780,000 (830,000) “discouraged workers” who gave up, the U.S. still has over 22.59 million, or 14.5% of the 155.658 million civilian work force either un- or underemployed. There are 1.017 million unemployed 16-19 year olds (21.6%) plus I have no idea how many twenty – thirty year olds. With all the political bantering about fiscal austerity to avoid saddling the younger generation with future debts we have forgotten about their present situation, their debts, loss of skills and their education, in addition to inheriting an aging infrastructure which we are not repairing. This is a tremendous waste of an excellent human resource. With the right education and motivation they could help make our country stronger. We may wake up in the future regretting the loss of this generation, a good portion of whom we will end up having to support for decades because we left them unemployed, under or unskilled and marginally educated. Euro area (EA17) unemployment was 12.2% in April 2013, up from 11.8% in December 2012 and 12.1% in March 2013. The EU27 rate was 11.0%, unchanged from the previous month. In both zones, rates have risen markedly compared with April 2012, when they were 11.2% and 10.3% respectively. Figures are published by Eurostat, the statistical office of the European Union. Eurostat estimates that 26.558 million in the EU27, of whom 19.375 million were in the euro area, were unemployed in April 2013. Compared with March 2013, the number of unemployed increased by 104,000 in the EU27 and by 95,000 in the euro area. Compared with April 2012, unemployment rose by 1.673 and 1.644 million. Among the Member States, lowest unemployment rates were recorded in Austria (4.9%), Germany and Luxembourg (both 5.4% and up 0.1% since our last Market Report); and highest in Greece (27.0% February 2013) and Spain (26.8%) and Portugal (17.8%). In comparison, unemployment remained low in Singapore, although the overall rate edged up to 1.9% in March 2013 from 1.8% in December 2012. Unemployment in Malaysia was 3.3% in March 2013. South Korea had 797,000 unemployed (3.0%), a decrease of 9,000 persons or 1.2% year-on-year.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

38

Marcon International, Inc. Tug Boat Market Report – May 2013

Global trades continued to grow in May raising hopes that a sustainable containerized volume recovery could finally drag the industry out of the current downturn. The latest Container Trades Statistics volume data survey shows that, overall, global containerized exports in May grew by 2.05% to 11,305,800 TEU year-on-year, in what also appears to be the highest global total for May in the past 2 years. Given a tone of general improvement, ocean carriers may feel entitled to believe that containerized volumes are gradually getting back on the track to recovery, especially as the industry is moving into the crucial summer peak season. The CTS Global Price Index, however, failed to reflect this in the global trade volumes pertaining to chronic overcapacity problems which dominate container shipping. The index dropped for a fifth consecutive month this time losing another 3 points to 87. According to CPB World Trade Monitor, world trade volume increased 1.4% in April, following a revised decline of 0.1% in March. Both import and export volumes went up in the U.S. and Emerging Economies, whereas these decreased in the Euro Area. Because of volatility of monthly trade figures, momentum is the preferred measure of trade growth. Trade momentum decreased to 0.2% in April. Trade momentum is relatively high in Japan, in Central & Eastern Europe and in Latin America. World industrial production grew by 0.2% in April, following a revised 0.4% increase in March. While growth was negative in the U.S. and Asia, it picked up in Japan, Africa and Mid-East. Growth declined in the Euro Area. Global production momentum was up 0.8% in April. Momentum increased in the Euro Area to 0.9%. Momentum was slightly negative in Africa and the MidEast. At 109 million tons, throughput for Rotterdam first quarter 2013 was 1% lower than last year. Handling decreased for agribulk (-11%), coal (-2%), crude oil (-7%), other liquid bulk (-2%), containers (-1%) and other general cargo (-20%). Iron ore & scrap (+10%), other dry bulk (+14%), mineral oil products (+3%) and roll on/roll off (+1%) increased. Hans Smits, CEO Port of Rotterdam Authority: “Compared to first quarter 2012, we had one (leap) day less, equivalent to one percent of handling, but inclusion of the port of Dordrecht since 1 January did supply half a percent. Viewed in that light, on balance throughput remained more or less the same in the first three months. For the whole year, we expect throughput to show modest growth”. Throughput of liquid bulk decreased by 3% to 53 million tons. Supply of crude oil dropped by 1.7 million tons to 24 million, mainly due to high supply last year. Dry bulk increased by 4% to 20 million tons. Coal dropped slightly to 6.7 million tons due to stocks at terminals cut back, especially cokes coal. Outlook for the entire year remains positive. Handling of iron ore increased by 750,000 tons because a major steel producer now supplies ore in the largest possible ships (Vale Max). Rotterdam is the only place in Europe where these ships can berth. From here it is transported by smaller sea-going ships to Bremen and, since recently, Dunkirk and Ghent. Other dry bulk (building materials, minerals, biomass) made relatively large gains of 400,000 tons thanks to addition of Dordrecht. Little growth is expected apart from this, due to the bad economic situation in the construction industry. Container throughput dropped in tons by a small percent to 30 million tons, but increased in units by 4% to 2.8 million TEU. Considerably more empty containers were handled than in the first three months of 2012. It is expected that this will be the picture for the entire first six months due to disappointing developments in the Euro economy. RoRo traffic remained relatively stable as expected, in accordance with the stagnating economy in the U.K. The drop in throughput of other general cargo by 300,000 tons to more than one million tons is due to reduced handling of slabs (cutback) and other steel products. At 32.8 million tons, total seaborne cargo throughput for first quarter 2013 put the Port of Hamburg back on a growth course. The trend in bulk cargo, especially fuelled the increase in seaborne cargo: First quarter 2013,10.1 million tons of bulk cargoes were handled in Hamburg, corresponding to an increase of 6.3%. At 2.2 million TEU, the container handling that dominates Hamburg as a universal port reached almost the same level as first quarter 2012. On seaborne container services with Asia, at 1.2 million TEU, almost as many boxes were handled first quarter 2013 as last year. In the first three months, the trend in container throughput with the Baltic and other European countries linked with Hamburg by feeders was also positive. 541,000 TEU were transported between Port of Hamburg and Baltic, up by 2.0% over last year. Port of London 2012 trade on the tidal Thames fell by 10% to 43.7 million tons during 2012, according to the Port Authority. The principal reason for reduction of 5.1 million tons in port trade was closure of the Coryton oil refinery. Increased volumes of ‘unitized’ container cargoes, cereals and biomass were handled; the volume of all other types of cargo reduced. “2012 was a tough year for trade on the river”, explained PLA CEO, Richard Everitt. “closure of the Coryton terminal, one of the largest cargo handling facilities on the river, was compounded by limited growth or declines in other cargoes. The medium term prospects for trade on the river nevertheless look very strong as the main benefit of having a terminal on the Thames – proximity to the UK’s biggest consumer market – continues to attract major investment.”

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

39

Marcon International, Inc. Tug Boat Market Report – May 2013

DP World Limited handled 12.8 million TEU across its global portfolio in first quarter 2013. Whilst this was 7.0% lower than the same period last year, when adjusted for the divestments and monetization, the decline was 3.5% on a like-for-like basis. This decline in gross container volume was as a result of lower volumes in the Asia Pacific & Indian Subcontinent and Europe, Middle East and Africa regions. In Asia Pacific and the Indian Subcontinent DP World continue to focus on handling a smaller number of higher margin containers. In Europe, Middle East and Africa, European and Middle East businesses in particular continue to operate in a challenging macro environment. Within this region, the UAE facilities handled 3.1 million TEU. These volume declines were mitigated by better performance from terminals in the Americas and Australia. DP World’s portfolio of consolidated terminals handled 6.2 million TEU during first quarter 2013, a decline of 6.4% compared with the same period last year. On a like-for-like basis, consolidated volumes declined 5.1%. Despite continuation of subdued markets at the start of 2013 and notwithstanding challenging macroeconomic conditions, DP World still expects like-for-like container throughput in line with 2012 with the portfolio focused on faster growing emerging markets and more stable origin and destination cargo. At end April 2013, total cumulative containers handled at the Port of Hong Kong decreased 8.1% to 7,053,000 TEU compared to the same 2012 period. April’s total figures for the month were 1,734,000 TEU, down 12.2% year-on-year. Total port seaborne and river freight movements for February 2013 were 11,398 & 4,818 tons respectively. Seaborne freight was at the lowest volume in over a year. February’s Seaborne freight was down 14.5% year-on-year, and river trade down 24.7%. Cumulative freight movements for 2012 were 1,888,860,000mt seaborne and 80,423,000mt river borne falling 3.1% and 2.5% respectively over 2011…… In 2012, Ningbo Port’s cargo handling surmounted 453 million tons, increased by 4.5%, ranking t third in mainland China and fifth in the world. Container throughput reached 15,670,000 TEU, up 8%. Iron ore throughput increased by 11.4% to 48,730,000mt . Liquid chemical products were up 7.7% to about 8,300,000mt. April 2013 container throughput at Singapore’s Maritime and Port Authority was 2,627,700 TEU, down slightly from February, but showing a slight improvement over April 2012’s 2,600,000 TEU. Total container throughput for 2012 was a record 31,649,400 TEU. Despite the uncertain global economy and challenges faced by the global maritime industry in 2012, the Port of Singapore maintained a global lead in annual vessel arrival tonnage and bunker sales, and achieved good growth in container and cargo throughput. For the first time, container throughput crossed the 30 million TEU milestone, a historic high. Total cargo tonnage handled last year rose 1.2% over 2011 to reach 537.6 million tons, also a new record. 2012 year-end statistics shows that Port Metro Vancouver in British Canada handled 124 million tons of cargo through the end of December, an increase of 1% over 2011. 2012 throughput reflect growth in Asian economies and continuing strength in the Canadian economy, although I personally do not see a 1% growth for Vancouver and a 1.2% for Singapore above to be great signs of strength and growth. Total foreign tonnage at Port Metro Vancouver posted a 1% increase with 96.8 million tons. Total domestic tonnage also increased by 1% to 27.1 million tons. Port Metro Vancouver is North America’s largest export port by tonnage and trades $75 billion in goods annually with more than 160 trading economies, generating across Canada an estimated 129,500 jobs, $6.1 billion in wages, and $10.5 billion in GDP. Total containers handled in March 2013 were 627,541 TEU, up 2.5% over March 2012. Total cargo tonnage in March 2013 was 32,345,123 tons, showing a 9% growth compared to March 2012. According to the U.S. Federal Reserve Board’s latest “Beige Book of Current Economic Conditions” overall economic activity increased at a modest to moderate pace since the previous report across all Federal Reserve Districts except Dallas, which reported strong economic growth. The manufacturing sector expanded in most Districts since the previous Beige Book. Three-quarters of contacted manufacturers report higher sales compared with the same period a year ago. Geographically, Europe remains weak and that both the U.S. and Asia are growing, but slightly below expectations. By contrast, one contact called Europe a bright spot because it exceeded somewhat low expectations. Most Districts noted slight to moderate gains in consumer spending and a moderate increase in vehicle sales. Residential real estate and construction activity increased at a moderate to strong pace in all Districts. Commercial real estate and construction activity grew at a modest to moderate pace in most Districts. Continuing a theme from the previous report, strength in residential construction was a boon to manufacturers who supplied that industry. Agricultural conditions remained mixed, as weather patterns varied. Overall activity in energy was flat, and mining was down.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

40

Marcon International, Inc. Tug Boat Market Report – May 2013

Real gross domestic product -- output of goods and services produced by labor and property located in the U.S. -- increased at an annual rate of 1.8% during first quarter 2013, according to the "third estimate” released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 0.4%. In May, exports of goods decreased $0.9 billion to $130.3 billion, and imports of goods increased $4.2 billion to $193.7 billion over the previous month. Data recently released by Zepol Corporation indicated U.S. May imports increased for the second consecutive month, rising 3% compared to April, but decreasing 2.2% compared to May 2012. U.S. imported 1.55 million TEU in May, a record for the year. “For the first two months of the year imports were up 7% over 2012, but in the last five months imports are only up 0.04% overall,“ says Zepol’s CEO Paul Rasmussen. “With holiday orders being placed soon, we’ll likely see increased imports in the coming months.” Inbound TEUs from Brazil, Netherlands, and Chile each saw increases of over 10% from April. Other noteworthy increases came from China (6%), Germany (9%), and Taiwan (7.5%). Conversely, many countries in Southeast Asia, such as Thailand & Indonesia, saw decreases in exports to the U.S. Imports to the Port of Los Angeles were flat in May, but imports to Long Beach increased by over 8%. Many west coast ports increased imports, while ports on the other side of the country saw decreases in imports for May. Import volume at U.S. major retail container ports is expected to increase 1.1% in June over June 2012, reflecting modest growth, according to the monthly Global Port Tracker report by the National Retail Federation and Hackett Associates. “With the economic recovery moving slowly, retailers are being cautious this summer and could hold off on stocking up for the holiday season until fall,” NRF VP Jonathan Gold said. “We aren’t expecting significant increases for imports until October, when retailers will have a better idea of what to expect for holiday demand.” Cargo import numbers do not correlate directly with retail sales or employment because they count only the number of containers brought into the country, not the value of merchandise. The amount of merchandise imported nonetheless provides a rough barometer. U.S. ports followed by Global Port Tracker handled 1.31 million TEU in April. That was up 14.6% from an unusually slow March but down 0.1% from April 2012. May was estimated at 1.4 million TEU, up 2.2% from a year ago. June is forecast at 1.4 million TEU; July at 1.44 million TEU, up 1.9%; August at 1.43 million TEU (+0.5%); September at 1.42 million TEU (+0.8%); and October at 1.45 million TEU, (+7.9%). The first six months of 2013 are expected to total 7.8 million TEU, up1.9% from first half 2012. Total for 2012 was 15.8 million TEU, up 2.9% from 2011. “We are witnessing a period of import trade growth that is running more or less in sync with the U.S. economic expansion. Unfortunately, both are anemic,” Hackett Associates Founder Ben Hackett said. “Impact of this extremely cautious consumer spending is that we expect import consumption to remain weak for the coming four to six months.” Freight carried by the for-hire transportation industry fell 1.2% in April from March, declining after five consecutive monthly increases, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics’ (BTS) Freight Transportation Services Index (TSI). The April 2013 index (112.4) was 18.5% above the April 2009 low during the most recent recession. Level of freight shipments in April measured by the Freight TSI (112.4) was 2.4% below the all-time high level of 115.2 in December 2011. The Freight TSI measures month-to-month changes in freight shipments by mode of transportation in tons and ton-miles, which are combined into one index. The index measures output of for-hire freight transportation industry and consists of data from trucking, rail, inland waterways, pipelines and air freight. The 1.2% decline in freight transport was driven by declines in shipments by water, pipeline shipments, and rail intermodal. Waterborne freight reductions in April were partially due to floods and barge accidents that interfered with river operations. Trucking was stable in April. Stability in trucking, decline in rail intermodal, and decline in the overall TSI were consistent with a slight decline in manufacturing output, and a larger decline in housing in April. Even with the April decrease to 112.4, the index remained above its 2012 range for four consecutive months. The April level is a return to the level of January 2013, prior to increases in February and March. The April index was still higher than the index had been during any month between April 2009 and the beginning of 2013 except for December 2011, when it reached the all-time high. After dipping to 94.8 in April 2009, the index rose 18.5% in the succeeding 48 months. Freight shipments in April 2013 (112.4) were 18.5% higher than the all-time low in April 2009 during the recession (94.8). The April 2013 level is down 2.4% from the historic peak in December 2011 (115.2). Freight shipments were up 0.2% in April compared to end 2012. Freight shipments are up 1.1% in the five years from the recession level of April 2008 and are up 8.5% in the 10 years from April 2003. April 2013 freight shipments were up 1.2% from April 2012.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

41

Marcon International, Inc. Tug Boat Market Report – May 2013

Cass information Systems, Inc. “Freight Index Report” for May 2013 shows North American shipment volume rebounded in May, while expenditures remained almost unchanged. This seems an accurate reflection of mixed results in the freight sector and the economy overall. Unemployment is declining, yet job creation is still weak. GDP growth is stronger than last year; however manufacturing is slowing. Inventories are slowly eroding, but inventory‐to‐sales ratios are creeping up. Ports are reporting increased container traffic, in line with increased shipments domestically. Exports and imports moved up and down in 2013, but are currently lower than at the end of 2012. Shipment volume in May rose 2.9%, but was still 0.3% behind results a year ago. There is not yet a strong signal that freight is recovering. Although railroad loadings increased, both carloadings and intermodal posted gains two weeks and fell the other two. In the end, rail carloadings rose 2.1% and intermodal loadings posted a 3.2% gain. Much of the strength in rail is due to crude oil shipments, which increased 26.8% in May. With traditional rail commodities such as coal and grain faltering, petroleum shipments ensured industry growth. There are no clear signals indicating which way the economy will go for the rest of the year. There are many good signs, such as lower unemployment, gains in residential construction, an increase in durable goods orders, and an improving global economy. However, manufacturing in the U.S. has been slowing, and in May the sector actually contracted. Other measurements contracted as well: New Orders, down 3.5%; Production, down 4.9%; and Backlog of Orders, down 5%. Customer Inventories rose 2.5% while Supplier Deliveries dropped 2.2%. Manufacturing is of course closely tied to the freight transportation, and when manufacturing declines, freight follows. The Association of American Railroads (AAR) reported that total U.S. rail traffic increased for the month of May 2013 as well as for the week ending June 1, 2013. May 2013 saw the first year-overyear monthly total carload increase in 16 months, and the 42nd straight monthly increase in intermodal traffic. Intermodal traffic in May totaled 1,214,116 containers and trailers, up 3% (35,790 units) compared with May 2012. The weekly average of 242,823 units for May was the highest weekly intermodal average for any May in history. Carloads originated in May totaled 1,401,584, up 0.7% (9,551 carloads) compared with the same month last year. Eleven of the 20 major commodity categories tracked on a monthly basis by AAR saw year-over-year increases in May compared with the same month last year. Commodities with the biggest carload increases in May included petroleum and petroleum products, up 41.8%; motor vehicles and parts, up 6.2%, and crushed stone, gravel and sand, up 5.2%. Commodity categories with carload declines last month included grain, down 20%; primary metal products, down 7.2%; and grain mill products, down 6.9%. Year-over-year monthly carloads excluding coal and grain were up 3.6% or 26,772 carloads. “The economy is still not firing on all cylinders, and rail traffic in May reflects that,” said AAR Senior VP of Policy and Economics John Gray. “Pockets of rail traffic growth, such as autos, nonmetallic minerals, and commodities related to crude oil extraction are being countered by continued weakness in steel-related commodities, paper, and grain, among others. Like everyone else, railroads are hopeful that the economy will soon finally shake off its malaise and start reaching its potential.” AAR also reported an increase in rail traffic for the week ending June 1, 2013. U.S. railroads originated 269,276 carloads last week, up 1.6% compared with the same week last year, while intermodal volume for the week totaled 221,806 units, up 3.7% compared with the same week last year. Total U.S. rail traffic for the week ending June 1 was 491,082 carloads and intermodal units, up 2.5% compared with the same week last year. Five of the 10 carload commodity groups tracked on a weekly basis posted increases compared with the same week in 2012, led by petroleum and petroleum products, up 40.7%. The groups showing a decrease in weekly traffic included grain, down 20.7%. For the first 22 weeks of 2013, U.S. railroads reported cumulative volume of 6,081,180 carloads, down 1.7% from the same point last year, and 5,261,051 intermodal units, up 4.1% from last year. Total U.S. traffic for the first 22 weeks of 2013 was 11,342,231 carloads and intermodal units, up 0.9% from last year. Combined North American rail volume for the first 22 weeks of 2013 on 13 reporting U.S., Canadian and Mexican railroads totaled 8,139,410 carloads, down 0.4% compared with the same point last year, and 6,611,024 trailers and containers, up 4.2% compared with last year.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

The American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index jumped 2.3% in May after falling 0.2% in April. In May, the index equaled 126.0 (2000=100) versus 123.2 in April. May 2013 is the highest level on record, surpassing the previous high in December 2011(124.3). Compared with May 2012, the index surged 6.7%, which is the largest year-over-year gain since December 2011. Year-to-date, compared with the same period in 2012, the tonnage index is up 4.5%. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 132.7 in May, which was 5.4% above the previous month (125.9). “After bouncing around in a fairly tight band during the previous three months, tonnage skyrocketed in May,” ATA Chief Economist Bob Costello said. Some of the increase is attributable to factory output rising in May for the first time since February (+0.2%) and retail sales performing stronger than expected in May (+0.6%). Costello added, “The 6.8% surge in new housing starts during May obviously pushed tonnage up as home construction generates a significant amount of truck tonnage.” “While we heard good reports regarding freight levels during May, I have to admit I am a little surprised at the large gain in tonnage,” Costello said. He added that tonnage continues to outpace the number of loads hauled as heavy freight (e.g., housing construction materials and sand & water for hydraulic fracturing) is outperforming box trailer (i.e., dry van) freight. Trucking serves as a barometer of the U.S. economy, representing 67% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks moved 9.4 billion tons of freight in 2012, or 68.5% of all domestic shipments. Both figures are up from the previous year. In 2012. Under U.S. law, vessel operators must report domestic waterborne commercial movements to the U.S. Army Corps of Engineers. Vessel types include dry cargo ships & tankers, barges (loaded & empty), towboats (with or without barges), tug, crew & supply boats to offshore locations and new vessels from shipyards to point of delivery. Vessels idle are also reported. May’s 38.7 million short tons of commodities carried on internal U.S. Waterways was up 5.45% from April’s 36.7 million tons, but lower than tonnage for May 2012. 19.44 million tons of petroleum & chemicals were carried in May, the highest tonnage for the month of May since before 2009. This demonstrates continued high demand for inland tank barges transporting petrochemicals, black oil and refined petroleum products on the inland river system. 12.3 million tons of Coal & Coke were hauled, the lowest tonnage for May since 2009. 2.64 million tons of Farm and Food Products shipments were at their lowest level for May since prior to 2009. On March 22nd, the St. Lawrence Seaway Management Corporation (SLSMC) opened the Seaway’s 55th navigation season with the transit of Canada Steamship Lines’ new “Baie St. Paul” transiting the St. Lambert Lock. The vessel is the first of CSL’s fuel-efficient “Trillium” Class built specifically for use in the St. Lawrence Seaway. Companies seeking to bolster their supply chain’s sustainability are taking note that ships have a very small carbon footprint. The SLSMC’s Bowles said: “A peer-reviewed study, released in February of 2013, confirms that marine generates the least greenhouse gas (GHG) emissions of any transportation mode. The new vessels can move a ton of cargo very efficiently, and when compared to the state-of-the-art equipment in alternate modes, generate 38% less GHG emissions than rail and 88% less GHG emissions than trucks.” In terms of the outlook for cargo volume on the St. Lawrence Seaway in 2013, the SLSMC’s Bowles noted that he continues to be upbeat, saying “Seaway tonnage is forecast to exceed a total of 40 million tons for the year.” St. Lawrence Seaway System’s total 2013 cargo through 31st May for Montreal / Lake Ontario and the Welland Canal was 8,077 thousand tons, down 11.67% from 2012’s corresponding period. Iron ore (-17.4%), general cargo (-18.74%) , coal (-7.4%) and dry bulk (-26.57%) were all down significantly. Liquid bulk was up 6.87% at 973 tons so far in 2013 compared to 910 tons in same period 2012. Total transits were also down, -11.12%, from 953 to 847.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

According to the Lake Carriers’ Association, U.S.-flag Great Lakes freighters (lakers) carried 10.1 million tons of dry-bulk cargo in May, an increase of 3.3% compared to the same period last year. The May float was also largely in line with the month’s long-term average. Shipments of iron ore on the Lakes totaled 6.4 million tons in May, an increase of 15.1% compared to April, but a decrease of 6.6% compared to a year ago. Loadings also trailed the month’s long-term average by 4.8%. Shipments from U.S. ports totaled 5.8 million tons, a decrease of 2.9% compared to a year ago. The May total included 380,000 tons shipped to Québec City for loading into ocean-going vessels and delivery overseas. Shipments from Canadian ports totaled 556,000 tons, a decrease of 33.5% compared to a year ago. Year-to-date, the Lakes ore trade stands at 17.2 million tons, a decrease of 8.6%. Loadings of iron ore are 3.1% below the long-term average for the January-May time-frame. Shipments of coal totaled 2.6 million tons in May, a decrease of 11.3% compared to a year ago. Shipments from Lake Superior ports totaled 1.6 million tons, slightly below the level of a year ago. Included in that total were 250,000 tons loaded in Superior, Wisconsin, and transshipped to Québec City for loading into ocean-going colliers. Exports to Europe from Superior total 536,000 tons through May. Loadings in Chicago totaled 300,000 tons, a decrease of approx. 75,000 tons compared to a year ago. Shipments from Lake Erie ports totaled 650,000 tons, a decrease of 25% compared to a year ago. Year-to-date the Lakes coal trade stands at 5.4 million tons, a decrease of 13.5%. Shipments of limestone on the Lakes totaled 3.5 million tons in May, an increase of 5.8% compared to a year ago. Shipments were also in line with May’s total in recent years. Shipments from U.S. ports totaled 3 million tons, an increase of 11.5% compared to a year ago. However, loadings at Canadian quarries dipped by nearly 20% to 510,000 tons. Year-to-date the Lakes limestone trade stands at 5.7 million tons, a decrease of 6.9% compared to a year ago, and 7.8% below the average for the January-May timeframe in recent years. Lake Carriers’ Association represents 17 American companies that operate 57 U.S.-flag self-propelled vessels and tug/barge units ranging from 494’ to 1,013.5’ on the Great Lakes that carry the raw materials that drive the nation’s economy: iron ore and fluxstone for the steel industry, aggregate & cement for the construction industry, coal for power generation, as well as salt, sand and grain. Collectively, these vessels can transport more than 115 million tons of cargo per year. (Photo AT/B “Presque Isle” credit Boatnerd.)

Years of inadequate funding for dredging left an estimated 18-plus million cubic yards of sediment clogging the Great Lakes Navigation System. That total is expected to grow to 23 million cubic yards by 2017. Impacts of the dredging crisis are felt every day. Lakes Carrier Association’s members estimate that three of every four cargos they carry each year represent less than full loads. The cargo that's left behind varies with the size of the vessel. When record low water levels have amplified the lack of dredging, the largest vessels have forfeited as much as 12,000 tons, or 17% of their per-trip carrying capacity. If the ship is carrying iron ore for the steel industry, 12,000 tons is enough product to make the steel in 10,000 cars, the production of which would keep a large auto plant in operation for more than three weeks. The dredging crisis is man-made. The Corps needs $200 million to restore the system. The Harbor Maintenance Trust Fund (HMTF), repository for a Federal tax levied on waterborne commerce specifically to pay for dredging, has a surplus that is projected to soon reach $9 billion because the HMTF collects about $1.6 billion per year, but annually spends less than $800 million. Legislation to end the dredging crisis has been introduced in both the House and Senate. Senator Carl Levin (D-MI) was instrumental in adding language to the Senate’s Water Resources Development Act (S. 601) that calls for increasing expenditures from the HMTF. In the House, H.R. 335 would require HMTF to spend what it takes in each year for dredging on dredging. H.R. 2273, introduced by Congresswoman Candice Miller (R-MI), requires the Corps to fund and manage the Great Lakes as a system. By putting the Lakes on even footing with the inland river systems, more dredging dollars should come back to the Lakes. If provided adequate funding, the Corps can restore the Great Lakes Navigation System to project dimension in rather short order and allow vessels to finally operate at maximum efficiency. Even with ports and waterways clogged with sediment, it is estimated Great Lakes shipping annually saves its customers $3.6 billion in freight charges compared to the next least costly mode of transportation. If vessels can carry full loads, the savings will be greater.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Container volumes at the Port of Tacoma inched closer to the 1 million mark in May, posting a 31% gain year to date to 758,071 TEUs. Both imports and exports continue to grow. Full containerized imports improved 45% year to date to 281,145 TEUs, while exports rose 38% to 213,482 TEUs. While container volumes continue to reflect the addition of the Grand Alliance and its associated carriers last July, the volumes also reflect positive year-to-date growth from established customers. Tacoma's international container volumes would be up approx. 3% on the year without the new volumes. International container volumes are expected to continue showing double-digit monthly gains through June and July, but the increases will likely moderate in August. August 2012 marked the first full month of the Grand Alliance calling Tacoma. Auto imports (+7.6%), intermodal lifts (+38.3%). Gypsum (+61.7%) and log exports (+53.7%) also posted year-to-date gains through May. Breakbulk (-17.2%) and grains (-49.4%) were down. Total tonnage was up 8.2% and vessel calls up 21.8%..Total container throughput at the Port of Seattle was down 26.0% and 22.5% respectively in May for the monthly and year-to-date comparisons. A total of 129,022 TEU were handled in May 2013 compared to 130,426 in April 2013 and 174,293 in May 2012. Seattle finished off 2012 with a total of 1,869,492 TEU compared to 2,033,535 in 2011 and 2,139,577 during 2010……Container cargo rose by more than 17% in May at the Port of Long Beach, with some of the highest volumes in nearly three years. A total of 583,588 TEUs were moved in May, up 17.2% from the same month last year. Imports increased 22.2% to 305,498 TEUs. Exports were up by 13.9% to 147,073 TEUs. Empty containers were up 10.2% to 131,017 TEUs. With imports exceeding exports, empties are sent overseas to be refilled with goods. Import volumes are the highest since August 2010, and overall and export volumes are the highest since October 2010. For the first five months of 2013, cargo container volume is up 17.2% – including 19.3% more imports, 12.2% more exports and 18.9% more empties. These increases are in part due to the larger ships calling at the Port more frequently and the addition of service lines starting in the last part of 2012. Tonnages in breakbulk though were down 19.72%, dry bulk down 13.46% and liquid cargoes down 4.99% for the first two months of the year compared to the same period in 2012. The Long Beach Board of Harbor Commissioners approved a $1.02 billion budget for fiscal year 2014 that includes the Port of Long Beach’s largest-ever capital improvement spending plan of $788 million for modernization…...The Port of Los Angeles handled a total of 636,852 TEUs in May 2013, down 12.92% from May 2012’s 731,353 TEUs. Over the calendar year to-date, the port has handled a total of 3,064,309 TEUs, down 7.5% over the same period last year. In 2012, container throughput at the Port of Los Angeles was 8.1 million TEUs, up 2.5% over the previous year. The Los Angeles Harbor Commission adopted a 2013-14 fiscal year budget of approx. $1.1 billion for the Port, including one of the largest annual Capital Improvement Programs -- $399.9 million or 37% of total budget -- in Port history..….The Port of Houston handled 174,486TEUs in May 2013, up 10.4% from the previous month and up 11.6% from May 2012. Year-to-date, all container moves are up 7.1% over YTD 2012. Total revenue tonnage including containers, steel and general cargoes were up 17.7% in May compared to April 2012 and 2.4% year-to-date. Total vessel calls were up 6.2%, but barges were down 6.9% for the month, with both down 2.2% and 5.9% respectively YTD……436,579 total TEUs were handled at the Port of New York and New Jersey in April 2013, a reduction of 1.6% over April 2012’s 443,776 TEUs and off a half a percent from March 2013’s throughput of 438,786 TEUs. Figures for May 2013 were unavailable. Moore Stephens’ latest “Shipping Confidence Survey” reveals overall confidence levels in the shipping industry rose to their highest level for two and a half years in the three months ended May 2013. There was evidence of increased enthusiasm for new investment, although doubts persisted about the availability of bank finance. Fuelled by on-going concern about a surfeit of tonnage on the market, freight rates in the dry bulk sector in particular seem likely to come under more pressure over the next twelve months, although the outlook for tanker markets looks more encouraging. In May 2013, the average confidence level expressed by respondents in the markets in which they operate was 5.9 on a scale of 1 to 10, compared to 5.8 recorded in February 2013. This is the highest figure since the 6.0 recorded in November 2010. The survey was launched in May 2008 with a confidence rating of 6.8. Geographically, confidence in Asia was up (from 5.6 to 5.8), unchanged in Europe at 5.8, and down in North America from 6.1 to 6.0.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

A number of respondents to the “Shipping Confidence Survey”, felt that there were positive signs that a recovery was under way. One said, “The shipping market is dynamic in nature, and we are starting to see signs of exponential growth,” while another predicted with great confidence, “The shipping markets will continue growing over the next fifteen years!” Elsewhere the predictions were less expansive, ranging from, “The market will recover in 2014,” to, “Overall, we believe that 2013 will end up better than last year, and 2014 will show further improvement, even if some niche markets may not be able to maintain their current rate of growth”, which is in line with Marcon’s thoughts. One respondent felt, “The challenge will be for those owners and charterers which do not have a strong base to survive until the next boom, which is likely to be in 2016.” The likelihood of respondents making a major investment or significant development was up marginally on the previous survey, on a scale of 1 to 10, from 5.5 to 5.6 – the highest level since the 5.7 recorded in February 2011. Demand trends, competition and finance costs once again featured as top three factors cited by respondents overall as those likely to influence performance most significantly over the coming twelve months. Demand trends remained the number one performance-affecting factor for owners, although down by one percentage point to 21%. Competition featured in second place at 18% (up from 15% last time), followed by finance costs, up one percentage point to 17%. Tonnage supply, having featured in second place in terms of owners’ priorities last time, was down by two percentage points to 16%. Operating costs were referenced by a number of respondents. One said, “High fuel costs and lower demand are seriously affecting our business,” while another noted, “The market has been hit by an increase in operating costs, including fuel expenses.” Another observed, “Owners who are in a position to control fuel costs by operating very efficient vessels, with highly skilled crews, will be at a clear advantage,” while another still expected “further shortages of well-qualified and experienced crew, and an increase in their salary demands.” For the third successive quarter, Moore Stephens has seen a small increase in confidence. This encourages the belief that we are witnessing the start of a sustainable recovery, although some difficult issues remain to be resolved. Despite increased scrapping, it is clear that there are still too many ships on the market. For as long as that situation persists, the freight markets will struggle to bounce back. Although the tanker market is looking healthier than it has for some time, the dry bulk trades in particular seem to be suffering from an over-supply of tonnage. Owners’ appetite for new vessels has not, it seems, been terminally affected by five very difficult years for the shipping industry. Some reports suggest that current newbuilding business is almost 1,000% up on last year, with Greek owners alone having reportedly ordered almost twice as many ships in the first four months of 2013 as they did in the corresponding period last year. This is not a complete surprise. Moore Stephens’ survey revealed evidence of an increased enthusiasm for investment, and the history of shipping confirms that it is an industry which is not reluctant to spend money. Increased newbuilding activity is also somewhat inevitable, not least because of the strong state support which governments in the Far East are providing to their strategically important shipbuilding industries. Neither is it a bad thing. Every industry needs new investment to survive, and if that is coupled with regulatory and environmental compliance – for example, in the shape of eco-friendly ships – then so much the better. If pulling the plug on newbuilding activity is not the way to resolve shipping’s problems, the answer must lie with addressing the issues which seem to militate against solutions built on new investment. We need more scrapping, for example, and fewer proposals such as the one currently before the European Parliament to ban the beaching of vessels for demolition. We need a more innovative approach to securing finance, embracing everything from bond financing to leasing, as well as the ability to convince potential investors of the credibility of business plans. We need a more concerted focus on risk management, which is not as well developed in shipping as it is in many other industries. And we need early identification of the need for restructuring, and awareness of the options available in that connection. Shipping is in reasonably good shape, given the problems it is facing. Indeed, it is difficult to think of another industry which is so capital-intensive in nature, so reliant on skilled personnel, and so heavily impacted by competition, politics, risk, protectionism, and regulation, yet able to remain optimistic in the teeth of a global financial downturn. Three months is a long time in shipping, but it is to be hoped that the next survey will complete a full twelve months of improving confidence. Shipping is an industry in which long-term investments have tended to bring longterm rewards. As such, it is worthy of a long-term outlook.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013 Bunker Prices Worldwide As the Spring season slips on by, bunker prices also continue to slip. Average MGO prices for the month of May were US$ 968.00 per metric ton in Houston (US$ 991.00 in April), US$ 1,002.00 in Fujairah (US$ 1,004.00), US$ 843.50 in Rotterdam (US$ 847.50) and US$ 864.50 in Singapore (US$ 871.50). OPIS contract average prices on the U.S. West Coast generally increased over the first half of the month before starting to decline. As of the week ending 31st May, ultra-low sulfur fuel was a few cents higher than the figures reported in our April 2013 report. Ultra-low sulphur diesel was US$ 3.03/U.S. gallon in Seattle (compared to around US$ 2.98 at the time of our last Marcon report), Portland at US$ 3.02/gal (US$ 2.99), San Francisco US$ 2.95/gal (US$ 3.25), Los Angeles, Long Beach and El Segundo, California at US$ 2.96/gal (US$ 2.93). We do not have the latest figures for San Diego, but as of 10th May diesel was US$ 3.03/gal vs. the average of US$ 3.21 during the month of April and Boston on the East Coast was at US$ 3.03/gal (US$ 3.09) for the same respective time periods. The average cost per gallon of diesel consumed by Kirby Corporation for their 2,049 towboats operated in the inland waterways during the first quarter of 2013 was US$ 3.25 per gallon compared to US$ 3.37 per gallon during the previous quarter and US$ 3.16 per gallon during first quarter 2012. I would not be surprised to see fuel prices continue to fall over the next few months - if just left to supply / demand and no “black swans” appear out of the political arena, but that is too much to hope for. According to the latest International Energy Agency "Oil Market Report”, futures prices for benchmark grades traded in a narrow range in May and edged lower in early June. Bearish market sentiment prevailed throughout most of May against the backdrop of a more anemic economic outlook. Brent last traded at $102.15/bbl while WTI was pegged at $94.50/bbl. The forecast of global oil demand growth is little changed at 785 kb/d (0.9%) for 2013. Absolute demand estimates have been trimmed on account of revised historical data for Russia. After increasing to $119 per barrel in early February 2013, the Brent crude oil spot price fell to a low of $97/bbl in mid-April and then recovered to an average of $103/bbl in May. The U.S. Energy Information Administration expects that the Brent crude oil spot price will average $102/bbl over the second half of 2013, and $100/bbl in 2014. After averaging $94/bbl in 2012, the forecast WTI crude oil spot price averages $93/bbl in 2013 and $92/bbl in 2014. By 2014, several pipeline projects from the midcontinent to Gulf Coast refining centers are expected to come on line, reducing cost of transporting crude oil to refiners, which is reflected in a narrowing in the price discount of WTI to Brent. World liquid fuels consumption grew by 0.8 million bbl/d in 2012 to reach 89.2 million bbl/d. EIA expects world consumption to grow by 0.9 million bbl/d in 2013 and by 1.2 million bbl/d in 2014. In April 2013, estimated total liquid fuels consumption in nonOECD countries reached 44.5 million barrels per day (bbl/d), which was higher than consumption in OECD countries (44.3 million bbl/d) for the first time in history. EIA expects that consumption in OECD countries will average 45.5 million bbl/d in 2013 compared with 44.6 million bbl/d for non-OECD countries. EIA forecasts annual average nonOECD total liquids consumption to surpass OECD levels in 2014. Energy price forecasts are highly uncertain. WTI futures contracts for September 2013 delivery traded during the five-day period ending June 6, 2013 averaged $93.75/bbl. Implied volatility averaged 23%, establishing the lower and upper limits of the 95% confidence interval for the market's expectations of monthly average WTI prices in September 2013 at $77/bbl and $114/bbl, respectively. Last year at this time, WTI for September 2012 delivery averaged $85/bbl and implied volatility averaged 35%. The corresponding lower and upper limits of the 95% confidence interval were $63/bbl and $115/bbl. Hurricane season has started and government weathercasters say there is a 70% chance of 13-20 named storms in the Atlantic Basin, of which 7-11 may strengthen to hurricanes and with 3-6 of those becoming major hurricanes characterized by wind categories 3, 4, and 5. Based on the outlook from the National Oceanic and Atmospheric Administration for above-normal tropical weather activity this year, EIA estimates median outcomes for total shut‐in production in the federal Gulf of Mexico during the current hurricane season (June through November) of about 19 million barrels of crude oil and 46 billion cubic feet of natural gas. Actual shut‐ins are likely to differ significantly from this estimate depending on the number, track, and strength of hurricanes as the season progresses.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013 Recent News – North America Captain and crew aboard the “Explorer”, a 136’, 5,750BHP “Invader”-class tug managed by Crowley Maritime, were recently recognized by Coast Guard Rear Admiral William Baumgartner, who serves as commander of the Seventh Coast Guard District in Miami, for humanitarian actions, unwavering determination, professionalism and skilled seamanship after they assisted a vessel that ran out of fuel 30 miles west of Providenciales, Turks and Caicos Islands, in December. The Jacksonville-based crew arrived on scene shortly after the vessel became disabled. They responded to the stricken crew by giving them water, lifejackets, flashlights and a hand-held radio until the Coast Guard arrived on scene to provide additional assistance. Following the incident, Baumgartner issued an official letter of thanks to Capt. Smith, expressing his sincere appreciation for the Crowley crew’s assistance. In it, he wrote: “The humanitarian actions taken by the crew of the tug ‘Explorer’ are in keeping with the highest traditions of professional mariners. Please accept my personal thanks to you and your entire crew for a job well done!” “Explorer” was not the only vessel recognized for at-sea rescues in recent months. In January, crew aboard the Crowley-owned and -operated articulated tug/barge “Achievement/650-8” pulled a man drifting out to sea from Tampa Bay, Florida. Before that, in November 2012, Crowley crew aboard the company-owned and -operated tug “Guard” rescued a man struggling to stay afloat in the frigid waters of San Francisco Bay. Both rescues were successful and resulted in lives saved. The Great Lakes Towing Company was contracted by Interlake Steamship Company to perform winter work services on their 124’ x 44’ x 24’ ATB “Dorothy Ann” built in 1999 with a 70’ height of eye upper pilothouse and the 580’ x 70’ x 36’ bulk barge “Pathfinder” which arrived January at the Cleveland, Ohio yard. Work completed included miscellaneous steel work, generator maintenance, main drive unit maintenance and other various repairs. Upon departure the tug/barge unit loaded about 13,000 tons of iron ore at the Cleveland Bulk Terminal for delivery at the end of the deep-draft section of the Cuyahoga River. “Pathfinder” was originally built in 1952 as the self-propelled laker “J. L. Mauthe” and converted into a self-unloading barge in 1997-8 by present owner/operators Interlake. All Moran tugboats at the 16 ports and five LNG terminals where Moran operates have successfully completed voluntary safety examinations by the U.S. Coast Guard, and have been issued decals certifying their safety for the next three years. The non-mandatory inspections are part of the USCG’s Towing Vessel Bridging Program, a preliminary phase of its planned Subchapter M Towing Vessel Inspection regime. When the final Subchapter M rule is published, the Coast Guard will perform mandatory annual inspections, issuing Certificates of Inspection to vessels that pass. The Towing Vessel Bridging Program is designed to prepare both the marine towing industry and the USCG’s examiners for the coming regulation, with the voluntary examinations providing a learning experience and opportunity for both parties to acclimate to the requirements, process and protocol involved. In addition to the voluntary examinations, the Bridging Program has included specialized training for USCG examiners in tugboat design, construction and operation, as well as extensive factgathering conducted by the USCG at marine towing and transportation companies and shipbuilders. Foss Maritime will deliver two barge loads of modular equipment from the Pacific Northwest to an oil field development project near Point Thomson, Alaska, during summer 2013 using two Foss ocean tugs and a couple of shallow draft tugs to accomplish the sealift. Gary Faber, President and COO of Foss Maritime, said, “The Point Thomson sealift underscores what Foss can do. Logistically, we’ll be transporting cargo over thousands of sea miles, to a small pier on the Arctic Coast. Our customers hire Foss because we have a corporate commitment to safety and the environment, with the ability to deliver anywhere on the globe.” North Slope activity has intensified and Alaska state officials predict that development will bring hundreds of new jobs to the North Slope’s eastern half. Point Thomson is 60 miles east of Prudhoe Bay and 22 miles east of the Trans-Alaska oil pipeline. The field is estimated to contain 8 trillion cubic feet of natural gas, about 300 million barrels of gas condensate liquids, and traditional crude oil.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Foss also won a contract with Seattle Tunnel Partners, the Washington State Department of Transportation’s SR 99 tunnel contractor, to barge away an expected 1.8 million tons of spoils that will be produced by the world’s largest tunneling machine as it chews a 1.7-mile burrow under downtown Seattle. This summer, Foss is scheduled to make the first of many round trips, carrying the spoils from Pier 48 on the Seattle waterfront about 25 miles to Mats Mats Bay, north of Port Ludlow on Puget Sound. The project will redirect Washington State Route 99 under the city core and will enable the state to complete demolition of an aging viaduct that now carries up to 110,000 vehicles-a-day on the highway along the waterfront. Sakai Works factory in Osaka, Japan, built the fivestory-tall tunneling machine “Bertha”. The $80 million machine was disassembled into 41 pieces, largest weighing up to 900 tons, for shipment across the Pacific to Seattle’s Pier 46. From there, it will be transported a few hundred yards and reassembled in an 80-foot-deep pit where tunneling will start. Foss initially will provide one tug and two barges, and add assets as needed. Assets will be positioned to start work on 1st June. The tugs and barges will make the five-hour trip to Mats Mats Bay, where Cal Portland Company will use a crane and clamshell bucket to load the spoils onto an anchored barge and conveyor system to carry it to an old quarry for disposal. Foss teamed up during the winter with Mammoet to move six enormous fuel-production cylinders from the Port of Los Angeles to an off-loading site at King Harbor in Redondo Beach, just south of the Chevron El Segundo refinery. Each of the “Coke Drums” were 103’ long, 28.5’ in diameter, and weigh 364 metric tons, including their multi-axle transporters. The drums used to manufacture products such as gasoline, diesel and jet fuel - were built in Spain and carried to Southern California via the Panama Canal on a heavy lift ship. The cylinders were moved by Foss aboard Zidell Marine’s 240’ x 55’ deck barge “ZB 240”, two at a time on three successive Mondays beginning 25th February. The 2,250BHP twin screw tug “Edith Foss” and the 2,210BHP “Pacific Queen” moved the barge from the Pasha Terminal at the Port about 28 miles to King Harbor in Redondo Beach. Mammoet USA set ramps for loading and unloading, and their crews followed a detailed ballasting plan to keep the barge level during both operations. SPMTs (self-propelled modular transporters) moved the cylinders a short distance over the Pacific Coast Highway to the refinery. The coke drums are an important component of the refinery, which supplies more than 20% of the motor vehicle fuels used in Southern California and 40% of jet fuel at the Los Angeles International Airport. The new cylinders will increase reliability of the coke drum operations while taking advantage of more than 40 years of industry advances in coke drum design, according to Chevron. The barge “ZB 240” was heavily built in 1998 at Zidell’s yard in Portland, OR with a 4,000psf deck for movement of the Trojan nuclear reactor. The 1943 built, 116’ x 52’ “Foss 300” steam derrick tended to two old tugs in early March, one in near-mint condition and the other likely to be scrapped. In the photo at right, the derrick lifts the 82-year-old 49’ x 15’ “Henrietta Foss”, toward the water after a four-month renovation project at Foss Shipyard. The work included replacing 27 hull planks up to 28’ in length on the long-retired tug, now owned by one of the company owners. “Henrietta”, named after Henry Foss’ daughter, has always been a member of the Foss fleet since her keel was laid at Foss’ own yard around 1931. At the time the tug had several special features – a fire monitor atop the wheelhouse capable of delivering 700gpm of water at 100psi, a large air drill motor to drive the anchor windlass, and a fender encircling the stern built up of rubber tire sections. She was first Foss tug to have a purpose-built rubber stern fender. We’ve come a long way since then. The second tug was the 75-year old, 65’ x 8.2’ tug “Gillspray” built by Star Shipyards (Mercer’s) which was founded in 1908 in New Westminster, British Columbia by Edward and William Mercer of Newfoundland. The Coast Guard stood by as the derrick stabilized the tug at a marina just east of Foss on the Lake Washington Ship Canal. The long-neglected, privately-owned tug had been taking on water and developed a pronounced list. The Owner owned the tug for six years and planned to restore it, but never got around to it.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

The Vigor Seattle Maritime Festival 2013 tug boat parade and races were held in Seattle on May 11, 2013. It was a somewhat subdued event with fewer tugs participating this year, than previous memories recalled, but the spirit was still strong in the maritime community, with many local companies showing the flag, and attending the event. Marcon International attended on board Island Tug & Barge’s 1965 built, 115’ x 31’, 2,475BHP single screw tug “Island Champion”, which placed a close second by only 4 seconds behind the winning vessel in the Class B race in that heat - the wooden “Calene”. The weather cooperated, and warm weather, sunny skies were greeted with smiles by all Seattleites and visitors to the region. Tugs rumbling at full speed through the waters of Elliot Bay, with horns blaring and whistles heard across the waterfront and throughout the city ushers one back to recalling the importance of the maritime community in the founding, maintenance and support of our fair city in the Pacific Northwest. Tugs “Triton” (ex-Tuscarora, YTB-341, ATA-245) built in December 1941 and “Honcho” (ex-Mister Alan) built in 1975 belonging to Puerto Rico Towing & Barge Co., a subsidiary of The Great Lakes Towing Company out of Cleveland, Ohio, assisted a drifting vessel off the coast of Puerto Rico. The Panamanian flagged 74.8m x 15.3m ocean towing and salvage tug “Global Destiny” (ex-Rotterdam, Smitwijs Rotterdam, Smit Rotterdam), owned and operated by Diavlos Salvage and Towage, Ltd. based in Piraeus, Greece, called for assistance the morning of Saturday, 16th March and ended up on the other end of the tow line than it is used to. “Global Destiny” reported that it had run out of fuel and was drifting approx. five miles off the coast of Dorado, approximately nine miles north west of San Juan. Puerto Rico Towing’s tug “Triton” came to the vessel’s aid and stood by the vessel until it was directed by the United States Coast Guard to proceed to the San Juan harbor anchorage. On Monday, 18 th March, the “Global Destiny” was towed by the 3,600HP, twin screw “Triton” and the 3,100HP, twin screw “Honcho” to anchorage. After receiving inspection and clearance by the U.S. Coast Guard, the vessel was towed to Pier 11 for refueling. Puerto Rico Towing’s Captain Neftali Padilla, celebrating his 15th year with the company, was in charge of the rescue operation. “Triton”, originally designated as single screw, U.S. Army ATA tug built by Levingston Shipbuilding Co. in December 1941 as Hull 185. Sam Ryniker, Caribbean Towing had the tug completely rebuilt in 1979 by LeRoy Molaison and Wayne Piazza at Main Iron Works in Houma, Louisiana, who converte d the vessel from single to twin screw, repowering her with EMDs and later in 1985 installed kort nozzles as part of a second stage in the conversion. Sam liked Main Iron Works’ results so much, that he lined up another former U.S. Navy ATA for the same conversion. Marcon sold the “Triton” from Caribbean Towing to Merce Transportation of Caledonia, Wisconsin in 1989 to tow a cement barge on the Lakes. Great Lakes Towing purchased her in 2003. Sam’s second tug converted was the 1944 Levingston built “LT-454”, which he repowered with EMD 16-645s totaling 5,750BH with kort nozzles and renamed “Ranger”. Marcon sold the “Ranger” in 2001, as exclusive brokers for the creditors, to Falgout Offshore, where she is now known as “Mr. Jonah”. The Great Lakes Towing Company’s venerable tugs, the 1929 built, 1,250HP “Wyoming” and 1931 built, 1,400HP “Idaho”, both homeported in Detroit, Michigan, freed CSL Group’s, 22,338dwt grounded freighter “Spruceglen” at 1400 hours on Wednesday, 8th 2013. The 1983 built, 222.5m x 23.2 m 14.6m bulker ran aground in Lake St. Clair a few miles off the coast of Grosse Pointe, Michigan. Both 84’ x 21’ x 12.4’ tugs were built by Great Lakes Towing at their yard.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Lynden, a family of freight transportation companies serving primarily Alaska and the Pacific Northwest, has entered into a purchase agreement to buy Northland Services, Inc., a tug and barge carrier providing service between Seattle, Alaska and Hawaii. "Lynden provides an ideal situation to better serve our customers, our employees and the communities where we operate," explained Larry Stauffer , President and CEO of Northland. "We have seen significant growth in our business over the past decade, and bringing two great companies and teams together will help improve and expand service in the communities we serve." Northland will be an independent operating company within the Lynden family of companies. The current Northland management team would stay in place. Lynden's Alaska Marine Lines also provides tug and barge transportation services between Seattle and Southeast and Central Alaska. Alaska Marine Lines services the communities of Juneau, Ketchikan, Wrangell, Sitka, Petersburg, Haines, Skagway, Kake and Prince of Wales Island. The service is year around with twice a week departures from Seattle. The service to Central Alaska is weekly and services Anchorage, Fairbanks, Whittier, Kenai, Seward, Cordova and other points. "Northland has a great reputation, and adds Western Alaska and Hawaii to Lynden's service, enabling us to provide more service capabilities to our customers," said Lynden Chairman Jim Jansen. "We are excited about the ability to provide integrated statewide Alaska service, higher service frequency, and greater combined capabilities for our customers. Where there is service overlap, we will organize to provide a higher level of service. In certain communities where Alaska Marine Lines and Northland are the two primary freight carriers, other barge lines have plans to compete with us." A lengthy, complex process remains before the purchase can be completed. The proposed transaction is subject to regulatory review and other terms that, if completed, would likely result in closing in late 2013. Northland's major shareholder, Endeavour Capital, is a Western U.S. private investment firm. Endeavour's philosophy centers on the principal of stewardship: they believe in leaving a company in better condition than when they arrived. Endeavour has partnered with Northland's shareholders and management team over the past nine years – together they have transformed Northland via significant investment in the business and helped it become a leader in marine transportation to the Alaska and Hawaiian markets. Lynden currently operates 18 ocean deck, container and rail barges ranging from 1,500 to 15,403dwt and 150’ x 50’ to 420’ x 100’ in size. Northland Services owns and operates 20 ocean deck barges from 811 to 13,425dwt and 165’ x 35’ to 364’ x 90.75’ in size plus three landing craft up-to 150’ x 50’ and thirteen tugs up to 5,000HP. Marcon has handled a number of purchase and sale transactions for both companies over the years. Smith Maritime’s 5,000HP, 62 ton bollard pull, triple screw tug “Elsbeth III” towed the 708’ x 88’, 11,645lt displacement “USS Merrimack “ (AO-179) on her last voyage in May from the James River Reserve Fleet to Southern Recycling in Amelia, Louisiana. “Merrimack’s” hull was laid down in November 1981 and she was decommissioned in December 1998, with title transferring to the U.S. Maritime Administration in December for lay up in the National Defense Reserve Fleet. Tug and tow departed on 22nd May, along with two assist tugs and a pilot to get through the tight turns and the James River. They arrived and shortened up the tow wire at the mouth of the Atchafalaya River sea buoy on 4th June. Assist tugs “Tenner C”, “Miss Kelly E. Joe” and “Miss Niz” arrived on scene that evening. The next morning the tow started up river and through the Intercoastal Waterway with “Tenner C” made up on the stern and the other tugs running on either side to push the bow when needed. Finally at about 1630, the tow arrived at their destination at Southern Recyclers and the tanker was maneuvered into the slip. One more job done.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Foss Maritime’s 8,200HP tugs “Corbin Foss” and “Lauren Foss” and Crowley’s 10,880BHP “Ocean Wave”, escorted by Edison Chouest’s 13,680BHP, 359’ ice-breaking AHTS “Aiviq”, departed on 26th February 2013 with Royal Dutch Shell’s conical drilling unit “Kulluk” under tow from Kiliuda Bay, 48 miles southwest of Kodiak City, Alaska, to Dutch Harbor in the Aleutian Islands for further transport to Asia. Crowley’s 7,200HP tugs “Warrior” and “Guardsman” escorted the tow to observe and provide contingencies during operations. Oil spill response vessel “Nanuq” was also on scene as a precaution. Prior to the tow from Kiliuda Bay, the “Kulluk” underwent a thorough assessment and Det Norske Veritas reviewed that data and certified the rig as stable and fit to tow to Dutch Harbor. All systems on the tugs were inspected and verified seaworthy. “Aiviq” was not used for the tow as her earlier loss of power was still under investigation. Prior to departure, “Corbin Foss” collided with (one comment says “T-boned”) Crowley’s “Ocean Wave” while “maneuvering in close proximity” to each other in Kiliuda Bay at about 1730 on 15th February. There were reportedly no injuries and “Ocean Wave” suffered only minor damage which was patched on-site, with internal damage later worked on in Kodiak. The tow arrived at Dutch Harbor on 5th March, where Harley Marine’s 4,000BHP ASD tug “Gyrfalcon” assisted “Kulluk” to its anchorage in Captains Bay, Unalaska Island. As Shell decided that repairs and upgrades to the “Kulluk” would be accomplished in Asia, partially due to tax reasons, they contracted COSCO’s 2011 built, 48,293dwt semisubmersible heavy load carrier “Xiang Rui Kou” to transport the rig. The 216.7m x 43.0m x 13.0m “Xiang Rui Kou” arrived in Dutch on 17th March and “Gyrfalcon” assisted the heavy load carrier to the anchorage. On Tuesday 19th March, “Kulluk” was moved from its anchorage and floated over the submerged deck of “Xiang Rui Kou”. During this 18 hour procedure “Gyrfalcon” was involved assisting and then holding “Kulluk” in position while the loadout was stabilized and “Xiang Rui Kou” raised into its sea-going position for the dry-tow. “Xiang Rui Kou” departed Captains Bay on Tuesday 26th March for Singapore, thus ending a three month long saga and Shell’s 2013 drilling season. The 83.8m x 69.2m x 18.5m depth, Ice Class 1A Super Sedco Arctic drilling module “Kulluk” was built by Mitsui Eng. & Shipbuilding in 1983 for Canadian Marine Drilling at a reported cost of US$ 117,827,297, and operated by Gulf Canada Resources. In the early 90s though it was almost a case of “will the last man out of the Arctic turn off the lights”. While Marcon was not involved in the “Kulluk”, we sold a number of other vessels, barges and a drill ship for Canmar. “Kulluk” was mothballed in 1993, officially laid up in 2001 and sold to Seatankers Management in 2002. In 2005, the rig was acquired by Royal Dutch Shell before undergoing an extensive refurbishment. The end of June 2012, “Kulluk” was towed by the “Aiviq” from Puget Sound north to Alaska. The rig had just completed almost a year of extensive environmental and safety upgrades at Vigor Marine in Seattle. The 109.7m x 24.4m x 10.37m depth, Ice Class A3 ice-breaking anchor handling tug supply vessel “Aiviq” had been built in 2012 for this project at a reported cost of about US$ 200 million and powered by four 4,060bkW CAT C280-12 main engines connected to CP props developing a total of 22,080BHP and bollard pull of abt. 208 tons. The DP-2 vessel was also fitted with two 2,000HP and one 2,600HP bow and two 1,400HP stern thrusters. “Aiviq” is classed by ABS with the very long and jaw-breaking notation of +A1, HELIDK, Ice Breaker, Towing Vessel, Ice Class A3, Safety Standby Service GR B 300, Anchor Handling Vessel, Fire Fighting Vessel Class 2, Offshore Support Vessel AH, Oil Recovery Capability Class 1, (E), +AMS, +ACCU, +DPS-2, CCO-POLAR (TDST -40, TMAT -50) (HR 36), POT, BP 208.76 mt, UWILD, NVIC 2-95 Change 2 ACP, CRC, QR, Unrestricted Service. Also northbound was the ice-classed drill ship 166.1m x 21.7m “Noble Discoverer” which had been at Vigor’s yard since April undergoing similar upgrades. She was towed out of Seattle’s Elliott Bay on June 27th, heading for Port Angeles to hand off to the 150’, 8,200HP “Lauren Foss” for the tow to Dutch Harbor. Both units were to be engaged in a multi-year drilling US$ 4.5 billion program which initially was scheduled to start in 2012, but was delayed until the 2013 season because of problems completing the emergency containment dome and associated equipment in time.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

And now the saga begins - I hope I get this right, or at least close. Keeping track of which vessel parted which towline and when seems to be like trying to get an accurate handle on the old Abbott and Costello routine “Who’s On First” without the humor. Times are all approximate. During a severe winter storm on Thursday 27th December 2012, “Aviq” reported to the Coast Guard that their main towline to the “Kulluk” parted in heavy seas roughly 50 miles off Kodiak Island, Alaska due to a mechanical failure of the 120 ton SWL tow shackle. They were able to reconnect the emergency towline, but at 0030 AKST (Alaska Standard Time) on Friday, “Aviq” experienced a total loss of power to her four main engines, reportedly due to contaminated fuel. Royal Dutch Shell dispatched Crowley ‘s 136’ “Guardsman” from Seward, Alaska. Edison Chouest’s 301’ Arctic A-01 Ice Classed, ABS DP-2 PSV response vessel “Nanuq” also got underway. The Coast Guard diverted the 282’ x 50’ cutter “Alex Haley” from patrol to provide assistance, arriving on location early Friday. Notwithstanding strengthening 40mph winds and building 35’ seas, by 0430 “Alex Haley” successfully delivered a towline to the “Aviq” which was still connected to the rig by the emergency towline. This managed to slow the further drift of both units towards shoal water – temporarily. The Coast Guard reported that strong winds, and sheer mass of both the “Aiviq” and “Kulluk” created enormous challenges for the “Alex Haley” to establish and maintain the tandem tow – definitely an understatement. At 0630, “Alex Haley’s” towline parted, fouled their port propeller and the cutter was forced to return to Kodiak to make repairs. "The weather on scene is testing the limits of our Coast Guard crews. The professionalism of our air crews and cutter men and women have prevented the situation from deteriorating further" said Rear Adm. Thomas Ostebo, Commander 17th District Juneau. "I applaud the ‘can-do spirit’ of the crew of the ‘Alex Haley’. They accomplished the nearly impossible given weather conditions and bought valuable time. Without their efforts the overall situation would be much worse than it is now. The multiple towline failures only highlight the extremely challenging situation created by the winds, seas, and sheer bulk of the ‘Kulluk’. I applaud the efforts of all the vessels on scene and their courage in the face of almost impossible odds." Appropriately, “Alex Haley” is the former USS “Edenton” (ATS-1), a former navy salvage and rescue ship built in 1971 and repowered with four CAT diesels totaling 6,800SHP. At 0800, power was successfully restored to one of “Aviq’s” four CAT C280-12 main engines allowing the vessel to hold position relative to the rig with assistance of her thrusters. Royal Dutch Shell contacted the Coast Guard at 0900 and requested removal of the crew from the “Kulluk” plus priority assistance in delivering parts to “Aiviq” as she was the only vessel on location capable of towing the rig. Two Coast Guard HH-60 helicopters were launched at 2030 to attempt evacuation of “Kulluk’s” 18 person crew, but failed because 50mph winds and 20’ seas were causing the rig to heavily pitch and roll to such a degree that hoisting the personnel in a basket was too dangerous. By 1000, the Captain of the “Aiviq” reported the restored main engine working at reduced capability and engineers were continuing to work to re-establish full engine power while awaiting assistance from the two responding tugs expected on-scene. Weather was reported as 40mph winds and 20’ seas. “Guardsman” arrived on location at 1330 on Friday and successfully took “Aviq” and “Kulluk” under tow, but like the “Alex Haley” she also was unable to overcome the drift caused by strong winds and seas. By Friday afternoon, the U.S. Coast Guard, Shell and Edison Chouest established a Unified Command to respond to the situation. As a precautionary measure, around midnight the Unified Command authorized the crew of the “Kulluk” to drop its anchor off the coast of Kodiak to slow its drift, while “Aiviq” and “Guardsman” as additional precaution remained connected to the “Kulluk”. The anchor was temporarily dropped and retrieved. At 0530 on Saturday, “Guardsman” parted their towline to the “Aiviq” and was unable to re-establish the tow because of the weather. By 0630 on Saturday 29th December, “Nanuq” arrived and began assessing the situation to safely assist in the tow. A 0700 drop of about 2,000lbs. of mechanical parts including new fuel injectors was successfully made to the “Aiviq” in the dark, in spite of 30mph winds and 20’ seas by a Coast Guard Kodiak-based MH-60 Jayhawk helicopter crew and a second engine was bought on line. “Our main priority remains the safety of all crews involved in this situation,” said Capt. Paul Mehler III, Commander, Coast Guard Sector Anchorage. “To help ensure safety of all involved, we have directed multiple Coast Guard assets to the area, including the Coast Guard Cutter ‘Hickory’, our Kodiak-based HC-130s and Jayhawk helicopter aircrews.” All 18 persons were successfully evacuated in three shifts from the heavily rolling and pitching “Kulluk” by hoisting 50’ up to the Coast Guard H60 helicopters and “Nanuq” connected a tow line to the rig in order to assist “Aiviq” to maintain station. All four of “Aiviq’s” main engines were now functioning and the decision was made to increase the speed of the southbound tow in order to give a greater margin of clearance offshore.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Following a long night of severe weather, “Kulluk” remained securely under tow by both the “Aviq” and “Nanuq” working in tandem roughly 20 miles south of Kodiak Island. Crowley’s 140’, 10,192BHP ASD response tug “Alert” got underway from Prince William Sound to join the “Guardsman” on scene as a vessel of opportunity should they be called on to assist. On 30th December, the tow lines connecting the “Aviq” and response vessel “Nanuq” to the “Kulluk” parted. The 118T bollard pull “Alert” arrived on Sunday and by approx. 0045 on Monday, 31st December was able to secure the 400’ towline that was the previously used by the “Aiviq”, despite having their deck awash by 30’ seas. “Alert” successfully took a strain on the rig to test its ability to hold and later the same morning “Aiviq” also reconnected to the rig. Difficult weather conditions were forecast to continue over the next several days. During a temporary lull in the storm both tugs attempted to tow the rig to more protected waters. At 1640, “Aviq’s” towline parted and “Kulluk” was once again adrift, about 10-15 miles from where she finally grounded. “Alert” managed to remain connected, but also had engine problems for a short period of time and was unable to tow the unit offshore on her own in the 40 - 60kn winds and seas which were building to 30 – 40’ plus, with one report saying 54’. The “Alert” could only attempt to maintain a small amount of control over the rig’s drift and was being towed backwards in the rough seas at about 2kn towards the lee Alaskan shore. The Unified Command knew by now that the rig was going to eventually ground and the intent was to use “Alert” to maneuver the “Kulluk” into a position where it would have the least impact on the environment. At 2015, about a half hour before grounding, the “Alert’s” crew was ordered to break the tow for their own safety. “Kulluk” finally grounded in about 32’ – 48’ of water at 2048 Alaska time on New Year’s Eve at Lat. 57 deg. 05.4’N; Long. 153 deg. 06.4’W, in the high surf at the northern edge of Ocean Bay on southeast side of uninhabited Sitkalidak Island. There were no crew remaining on the rig. There was reportedly on board about 139,000g ultra-low sulphur diesel in her center tanks and 12,000g combined lube oil and hydraulic fluids. 2012 ended with the rig aground and her condition unable to be confirmed. As the New Year began, extremely severe weather conditions continued to impact operations. Although an initial night-time over-flight was conducted, it wasn’t until two flyovers were made the morning of 1st January using a Kodiakbased Coast Guard C-130 aircraft and a Jayhawk helicopter that they were able to determine the rig was still upright and there were no signs of a fuel spill. While severe weather conditions prohibited an earlier boarding, by 1030 Wednesday 2nd January, a five-member team of salvage experts were able to be lowered to the “Kulluk” for three hours to conduct a structural assessment to be used to finalize salvage plans with Smit Salvage heading up operations. Smit has assisted in hundreds of salvage operations worldwide, including the “Selendang Ayu” salvage that took place off the coast of Western Unalaska in 2004. The Coast Guard helicopter and crew also delivered an Alaska-state owned Emergency Towing System to the rig which will be used during salvage operations. A helicopter safely hoisted the salvage team from at 1330. Two six-member salvage teams were also transported by air the next day to continue to assess the rig’s condition as part of the salvage plan. Era Helicopters, a contractor to Shell Alaska, started performing over-flight deck assessments and evaluating wildlife in the area. “Today we staged critical response gear into the immediate area in preparation for recovery operations,” said Capt. Paul Mehler III, Unified Command Federal On-Scene Coordinator, U.S. Coast Guard on Friday, 4th January. “The weather window provided an excellent opportunity to make significant progress toward completing the operation.” The Department of Defense supported the response by providing two U.S. Army Chinook CH-47 helicopters based out of Fort Wainwright, Alaska, and part of the 16th Combat Aviation Brigade. On-water, 14 vessels were mobilized to support the response and recovery including Cook Inlet Spill Prevention and Response, Inc.’s (CISPRI) 207’ x 40’ “Perseverance”. Three vessels were on location, with 11 either en route or on standby at nearby ports and harbors. Vessels from as far away from Seattle were being mobilized and equipment and supplies were being prepared on the airport tarmac in Kodak as it was being flown in. Further helicopter activities included placing salvage assessors on-board the “Kulluk”, the third such placement in three days. Two other flights included a check on the condition of the helicopter landing pad on the rig and transport of power generators to be used by the salvage assessment team. Seawater was discovered in one void, but did not pose any threat to the stability of the rig and there was no evidence of any oil sheen in the vicinity.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

On Saturday 5th January, the Unified Command planned to hook a main tow line to the “Kulluk” to test capabilities in preparation for recovery operations and deployed boom to Kodiak Island with special attention being salmon streams connecting to Ocean Bay where “Kulluk” grounded. The rig was confirmed sound and fit for tow as it remained upright with fuel tanks intact, no threat to stability and naval architects confirmed structural strength of the unit. Weather though did not cooperate so the operation was postponed. The recovery team remained on board the rig overnight and six vessels stood by –“Aiviq” and “Nanuq” close by outside the 1 mile safety zone and “Perseverance”, “Alert”, “Ocean Wave” and “Alex Haley” nearby with another eight still enroute. At 1600 on Sunday, salvage teams successfully attached the main tow line to the rig and prepared for the tow. The intent was for “Aiviq” to maintain tension on the line overnight and begin towing the “Kulluk” from its current position to Kiliuda Bay, about 30 miles north, the next day, with the Salvage Master having the discretion to initiate the tow earlier should favorable conditions occur during the night. The tug “Alert” was also to be connected to the “Kulluk” and assist in the tow. A 10-member salvage crew including the Salvage Master and one Shell representative were on board the drilling unit throughout the tow. At 2010 that evening at high tide, the rig was safely refloated by the “Aiviq”, with three additional Seattle-based tugs – the “Ocean Wave”, “Corbin Foss” and “Lauren Foss” on standby. As of 0145 Monday morning “Kulluk” was approx. 16 miles offshore and under tow at a speed of 4.2kn. By 0730, the rig remained in tow at a speed of abt. 3.5kn in a northerly direction and approx. 9.6nm from the planned anchorage in Kiliuda Bay, while the crew of the “Nanuq” used infrared equipment to check for any signs of an oil sheen. After a 45nm heavily escorted tow over roughly a 12 hour period dodging cod pots in the Gulf of Alaska, “Kulluk” finally approached its safe harbor in Kiluda Bay at 1000 hours Alaska time. The rig was anchored at 1215 with tugs “Alert”, “Lauren Foss” and “Corbin Foss” remaining connected and “Aiviq” disconnected, but standing by along with the “Warrior”, “Ocean Wave”, “Perservance”, “Nanuq” and “Alex Haley”. While anchored in the bay, ROVs were brought in to start assessment of any serious underwater hull damage and the Unified Command, along with local representation of the Old Harbor Native Corporation, began surveying the area of the grounding to try and recover four survival boats, one rescue boat and other debris washed overboard during the stormy weather. By Saturday 12th January, the ROV and 12-man diver’s underwater inspections and assessments were completed. It was determined that the rig was in stable condition with intact fuel tanks and no reports of any direct release of oil, although there may have been about 316 gallons of ultra-low sulfur diesel fuel released from the lost survival/rescue boats. There was some damage to the topsides of the rig and a number of watertight hatches were breached. Some water entered various spaces and the generators damaged, however the water was pumped into another compartment for storage and the damaged windows and hatches were sealed and made weather-tight for the future tow. Additional towing brackets were added for preparation for the next move, which is where we started the saga. Reportedly, only two or three persons were injured and these were believed to be minor injuries with the people returning to work which is amazing under the circumstances. I sailed on the 173’ University of Hawaii research vessel “Moana Wave” in 1975 throughout Alaskan waters and in the Chukchi Sea up to the 12 mile limit off Wrangell Island as part of the “Outer Continental Shelf Environmental Shelf Assessment Program” prior to any major offshore oil and gas drilling plus later made that Kodiak – Dutch Harbor run numerous times hauling containers and construction equipment on converted supply boats and landing craft. Some trips, especially in December and January, were “white-knuckle” trips with the whole crew at times on deck chipping ice, but at least we could duck in and hide – sometimes for days at a stretch waiting for weather to improve.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

My hat is off to all the crews and responders involved who could not duck in and hide – especially those on the Coast Guard cutter “Alex Haley”, and on the tugs and other response vessels attempting to reconnect the tow in the severe winter storm conditions they encountered. There will be a lot of good sea-stories told over the next couple of years by everyone involved over many cold beers. Just as a late breaking note, the Captain and crew of Crowley’s tug “Alert” were personally recognized by Representative Eric Feige from the Alaska State Legislature for courage, teamwork and professionalism during the emergency rescue tow of the “Kulluk”. During their meeting, he presented them with a letter of commendation from the members of the 28th Alaska State Legislature, which stated the following: "The crew safely and methodically adapted to changing conditions, used their training to identify and manage hazards, and then performed each task to minimize the risks associated with those hazards.We express our admiration and respect to each man individually, and to the crew for its superb teamwork, conducting themselves at all times as professional mariners in an extreme and challenging incident." At approx. 0840 on Thursday 20th December, the double-hull, 65,125dwt product tanker “Stena Primorsk” ran aground in the Hudson River about 10 miles south of Albany, New York after reportedly suffering a mechanical steering gear failure which caused her to veer outside the channel, or hit an unknown underwater object – reports differ. According to a Stena Bulk press release, the vessel “came in contact with an unknown underwater object”, “did not run aground” and “there were no mechanical issues”. Regardless of the cause, although the outer hull in the way of the starboard No. 1 and No. 2 ballast tanks was breached, there were no injuries or pollution reported. The fact that the ship was double hull saved the day. The 182.9m x 40.0m x 17.9m depth P-Max tanker, with 23 crew on board, was partially laden with crude oil. There was a pilot on board at the time of the incident. The vessel’s crew, under pilotage, maneuvered the vessel to the Stuyvesant Anchorage where at 1000 the same day she was safely anchored and a thorough inspection of the ballast tanks were made by diver’s. “Stena Primorsk”, operated by Stena Bulk AB of Sweden and managed by Northern Marine Management Ltd. out of the U.K., is a high-spec, twin screw tanker built in 2006 by Brodosplit in Croatia and classed DnV 1A1 Ice-1B powered by two 7,860bkW MAN-B&W main engines driving CP props and dual rudders. She can carry 67,314.6m3 liquid cargo in five each port & starboard epoxy coated cargo tanks and fitted with segregated ballast tanks, vapor recovery, COW and IGS. Stena’s P-Max design tankers were built to minimize the risk of incidents and accidents, with double / redundant systems for propulsion and maneuvering including two engine rooms with fire and water integrity and redundant systems. At the time of the grounding, the “Stena Primorsk” was only laden with about 40,000 tons of low sulfur, light crude oil due to draft and fresh water constraints. The crude had been brought into the Buckeye Partners terminal in the Port of Albany by Canadian Pacific tank railcars from the Bakken shale formations in North Dakota for transshipment and export to Irving Oil Co. refinery in St. John, New Brunswick. This was the first voyage of a hopefully a multi-year regular contract hauling cargoes of crude oil between the Port of Albany and the Irving Oil refinery departing about every eight days. The tanker returned to Buckeye Albany Terminals later on the 20th of December and the approx. 279,000bbl of crude oil was lightered off, with the first of three barges departing Christmas Eve day. On Sunday 30th December, “Stena Primorsk” was escorted down the Hudson River by McAllister Towing & Transportation’s tugs, the 4,000HP twin screw “McAllister Sisters” (photo left) and the twin screw 2,800HP “Charles D. McAllister” (photo right) to the Bay Ridge Anchorage off Brooklyn and then shifted to the GMD Shipyard Corp. drydock in Bayonne, New Jersey on Saturday 5th January where she will be drydocked for repair and further investigation of the casualty. Owners say that the “Stena Primorsk” will return to service once the repairs have been completed and the vessel inspected and approved by DnV.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Instead of children playing “Where in the World is Carmen San Diego”, mariners in the Atlantic had a new game earlier this year – “Where in the Atlantic is ‘Lyubov Orlova’,” as the tow of a scrap ship out of Canada went wrong and another saga began. On about or about 19th October 2012, the 2,750BHP single screw harbor tug “Charlene Hunt” (ex-Orion, Molly, Anna V. McKay, Betty Jean Turecamo, Morania No. 24, HR 1, Colonial) was reactivated as her main engine was started up with a cloud of smoke after at least a two year lay-up. The tug was contracted to tow the 100.0 x 16.2 x 7.0m depth / 4.6m draft former Russian-owned Arctic / Antarctic 2-deck cruise ship “Lyubov Orlova” from St. John’s Newfoundland to the Dominican Republic where she was to be broken up. The 30.3m (99.5’) x 8.2m (27.0’) x 4.4m (14.4’) depth tug was originally built in 1962 by Equitable Equipment of Madisonville Tennessee for the Bronx Towing Line of New York. She passed through seven or eight hands until purchased from Constellation Maritime of Boston by Hunt Tugs and Barges / Hunt Marine of Narragansett, Rhode Island in 2012. “Charlene Hunt” was a typical single screw, model bow tug of the 1960s era. She was powered by an Alco 16-251B diesel rebuilt in 2007, a Western reduction gear and 4-blade bronze prop on an 8” shaft. Towing gear consisted of a split drum tow winch with capstan, fairlead for the tow wire and 10” rolling chocks. Fuel capacity was approx. 42,000g. “Lyubov Orlova” was built in 1976 by Brodogradiliste Titovo in Kraljevica, Yugoslavia – when there was a Yugoslavia. She was built for FESCO, the Far East Shipping Company, out of the Soviet Union, when there was a Soviet Union, and owned and operated by FESCO until 1996 when sold to Lubov Orlova Shipping Co. Ltd. / Intrans and reflagged to Maltese flag. The ice-strengthened expedition cruise ship was certified for a total of 286 persons including crew. With her RMRS KM (*) L1[1] class and certified to operate in the Arctic in summer in broken open ice and non-arctic freezing seas all year round in light ice conditions the ship became involved in the popular Arctic and Antarctic cruise trade carrying up to a maximum of 110 passengers on her Arctic cruises. She was refurbished in 1999 and 2002. In 2001, a suit was filed in a Newfoundland court over non-payment for fuel supplied to the vessel. In November 2006, “Lyubov Orlova” ran aground on Deception Island in South Shetland off the Antarctic Peninsula and had to be towed off the rocks with, luckily, minimal damage by the 41.2m Spanish Navy ice-classed research survey vessel “Las Palmas” (appropriately built in Spain as a 7,040HP offshore tug in 1978 for Hispano Americana Offshore). Two years later “Lyubov Orlova” was detained in Ushuaia by the Argentine Coast Guard after inspectors found a long list of violations on board, notably in the engine room. In 2009, the ship was reflagged to Cook Islands registry. In Fall 2010 the ship was arrested for unpaid debts resulting from a cancelled voyage. The International Transport Workers Federation also filed suit on behalf of the vessel’s crew. 49 Russian and 2 Ukrainian crew had been stranded on the vessel in St. John’s, New Brunswick dependent on local charities for food after the owners stopped paying their wages, owing more than $270,000. “Lyubov Orlova” was ordered sold and owners given a deadline of 18th November to complete the sale and pay off the crew plus bunker and other suppliers in Canada and 27 of the crew were flown home at the expense of the Russian government. The remainder of the crew remained on board to operate the vessel, with the exception of one who may have jumped ship to seek asylum in Canada. Marcon become commercially aware of the vessel in February 2011 when Owners were looking to sell the neglected vessel for around US$ 2.0 – 2.5 million for a “quick sale”, down from their previous price ideas of US$ 5 million. In February 2012, “Lyubov Orlova” was sold to Neptune International Shipping of Road Town, Tortola, British Virgin Islands for $275,000 for scrap. In November 2012, “Charlene Hunt”, while northbound to pick up the derelict cruise ship, ran into difficulties south of Halifax, Nova Scotia. The tug was detained after inspection found lifesaving appliances not properly maintained, emergency fire pump not as required, Load Line (including exemption) missing, machinery space openings not watertight, etc. Reportedly most of the crew were evacuated by the Canadian Coast Guard and pumps were airdropped to the master and chief engineer on board to keep the tug afloat. After spending about a week in Halifax making emergency repairs, the tug finally continued her way north to St. John’s to pick up the tow. On 10th December 2012, “Charlene Hunt” finally made her way into St. John’s under U.S. flag. Although U.S. Coast Guard Documentation on-line shows her still under U.S. flag with documentation expiring 31st December 2013, Sea-Web showed her reflagged to Bolivian flag and registered out of La Paz around 20th January 2013, but still reportedly owned by Hunt.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

On Wednesday 23rd January, “Charlene Hunt” left St. John’s Harbor under Bolivian flag with “Lyubov Orlova” in tow while a rare winter “super-storm” was forecast with winds to 50kn southeast of Cape Race by Friday 25th January, and hurricane force winds to 85kn on Saturday 26th January. Early on the morning of Thursday, 24th January, the tug lost her tow south of Cape Race, Newfoundland and could not successfully reconnect due to the severe weather conditions. The tug was recalled to St. John’s for inspection under orders from Transport Canada, arriving back in St. John’s the evening of the 26th escorted by the Canadian Coast Guard and facing a list of discrepancies including hull structural damage impairing seaworthiness and certificates for master and officers not as required. I know the port wanted to see the “Lyubov Orlova” gone, but why the “Charlene Hunt” was allowed to sail with her tow in the dead of winter with a tow is a question which everyone has been asking. I would have thought that the Canadian authorities would have learned from the year earlier wreck of the “Miner” which is still ashore on Scatarie Island. At least she was being towed by a proper ocean-going 5,200HP tug. “Lyubov Orlova” was left as a derelict in international waters slowly drifting eastward, moving and at one point reportedly within 11km of the Hibernia Platform according to CBC News. The Hibernia oil platform is reportedly the largest oil platform in the world, standing 224 meters high, which is half the height of New York's Empire State Building (449m) and 33m taller than the Calgary Tower (191m). Atlantic Towing Ltd.’s 75.0m, 14,400BHP anchor handling tug supply boat “Atlantic Hawk” (pictured right towing icebergs), was contracted by Husky Energy to reposition the abandoned ship away from offshore oil and gas facilities. The 165 ton bollard pull AHTS connected up to the “Lyubov Orlova” at about 1815 Wednesday 30th January and began moving the abandoned ship northward off the coast of Newfoundland. By 1000 hours Thursday 31st January the tow was 70km north of the Husky Energy’s SeaRose floating production, storage and offloading (FPSO) platform (right) and by 1600 about 100km north of the FPSO (pictured at right), still under tow while reportedly discussions were taking place among local operators and Transport Canada was finalizing arrangements for disposition of the former cruise ship. On Friday 1st March, the tow was transferred to the 75.4m x 17.6m, 14,348HP AHTS “Maersk Challenger” (picture left), chartered in by Canadian Transport. Unfortunately though the tow line from the 173 ton bollard pull tug supply boat reportedly broke on 20 minutes later due to the severe weather conditions with waves reaching 7m in height and winds of 140km/h. On 23rd February, the “Lyubov Orlova” was spotted at the coordinates 49 deg. 22.7’N and 044 deg. 51.34’W, roughly 1,300 nautical miles from the Irish coast, according to the U.S. National Geospatial Intelligence Agency. On 28th February, the drifting ship was the subject of news reports in Iceland and Ireland, and a caution to all vessels that may be within 1,600nm of the derelict was issued. One of the owners of the ““Lyubov Orlova” who had bought the vessel with his uncle and living on board the “Charlene Hunt” in St. John’s harbor, was hoping that the vessel could still be recovered off Ireland and still be sold for scrap. On Friday, 1st March, Irish media reported that a signal from the vessel’s EPIRB was received from 700 nautical miles off the Kerry coast and still in international waters. This hopefully indicated that the ship had finally sunk, as an EPIRB is supposed to only transmit when it is exposed to water. On 22nd April, a Dutch newspaper reported that there was no further trace of the ship – and she has not been heard of since. “Charlene Hunt” remained tied to the dock in St. John’s Harbor since losing her tow and being ordered back into port by Transport Canada . After inspecting the tug, local authorities reportedly came up with a further list of deficiencies to be corrected before she could sail. As I finish writing this, it was reported that 90’ x 26’ x 12.5’ depth U.S. flag, 2,000HP, twin screw tug “Kirsten Grace” (ex-Marguita, Boo Cenac) built in 1981 and owned by Hansen-Dreijer Marine Enterprise was hired to tow the ill-fated “Charlene Hunt” southbound. U.S. Coast Guard documentation on-line still shows the “Hunt” to be under U.S. flag with documentation expiring 31st December 2013, while “Sea-Web” still shows her under Bolivian flag.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

At 0219 on 20th September 2011, the 50.5m x 10m, 75 ton bollard pull, 1975 built tug “Hellas’” tow wire broke and the 222.51m (730’) x 22.97m (75.0’), x 11.92m (39.1’), 28.094mtdw Canadian bulker “Miner” (ex-Canadian Miner, Lemoyne, Maplecliffe Hall) ended up a total loss when she grounded on Scaterie Island, Nova Scotia. The ship was bound to Turkey to be scrapped, reportedly with no cargo or pollutants on board, although owners later reported 6.5 tons of diesel on board for the generator. Numerous attempts were taken by the “Hellas” over five days of good weather to tow the vessel off and vessel The tug was detailed for several days by the Canadian authorities, then released, and has been involved with numerous tows and salvages since. Owners sent in a salvage team to put a plan in place. Inspections by Transport Canada and the Canadian Coast Guard discovered abt. 13.5mt of various oils on board and the vessel to be in worse condition than advised by the Owner, Arivina Navigation SA of Turkey. On 1st October, Owners contracted with Mammoet who surveyed the vessel for possible salvage and removed 6.5mt of marine diesel and 2mt of oily waste, but stopped after having reached the Owner’s funding limit. On 5th October a major storm struck and cargo hold 4 and 5 hatch covers were blown off, approx. 15m of plating in the way of these holds were peeled away and the engine room was holed and flooded. The Canadian Coast Guard then contracted directly with Mammoet for oil removal and 15 tanks, as well as two engines were opened and pumped dry. The remaining two engines and gearbox were open to the sea and could not be pumped out. In total, an additional 5mt of various oils and oily waste were removed. On 21st October, Mammoet started removing “floatables” under contract with the Province of Nova Scotia, with the Coast Guard monitoring activities. This ended on 29th October due to weather forecasts and approaching winter. In May, the Bennington Group was contracted by the ship’s owner and on 11th June the Province authorized Bennington Group, on behalf of owners, to dismantle and remove the vessel. It is interesting that few in the marine industry had ever heard of Bennington Group, who on their website describe themselves as strategy consultants, with offices in Canada and the USA, whose mission is straightforward: “to help executive managers to make better strategic decisions”, although they reportedly had worked on many wreck removal projects of this type, including the dismantling of an American aircraft carrier in 1994. Dismantling was scheduled to begin in mid-June 2012 and be completed two and a half months later. The vessel was to be dismantled in sections and steel and equipment transported via barge to Port Hawkesbury where it would be shipped by rail to buyers in Canada and the United States. By the end of August, the “Miner” was still firmly aground and the only removal done was by the sea. In November, Bennington Group walked away from the project after a series of disputes with the Province and their government permit to work expired on 1st December 2012. As of January 2013, discussions were still going on with the local Main-a-Dieu Community Development Association trying to prepare a new plan for final removal of the wrecked ship from their shores after the Province estimated a cost of about Can$ 24 million. In January, the U.S. Coast Guard coordinated and oversaw recovery of a barge on Lake Superior in the vicinity of Manitou Island after they received a Mayday call from the 140’, 8,000BHP, ATB tug “Victory”. The tug had broken out of the notch of the 702’ x 70’ x 36’ self-unloading, 25,500dwt dry cargo barge “James L. Kuber” (ex-S/S Reserve) after having mechanical problems with the Hydroconn linkage connection. The barge was laden with about 21,000 tons of iron ore and operating in 10 – 12’ seas, winds over 20mph and temperatures of 31 deg. F. The Coast Guard dispatched their 140’ ice breaking tug “Thunder Bay” to assist with ice breaking, but later turned her around. While “Victory” was waiting for weather to subside before attempting to reconnect, the tug lost sight of the barge. Meanwhile, the “Saginaw” arrived on the scene and provided a lee to the “Victory” to minimize the effects of the weather on the tug. Black Creek Shipping, owners of the “James L. Kuber”, arranged for Purvis Marine’s 3,700HP tug “Anglian Lady” (ex-Nathalie Letzer, Hamtun) to assist the “Victory”. “Anglian Lady” arrived on scene to tow the barge to Esser Steel in Sault Ste. Marie, Ontario. There was no damage to the tug or pollution.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

59

Marcon International, Inc. Tug Boat Market Report – May 2013

In February, Crowley Maritime and Titan Salvage completed companywide, comprehensive emergency response efforts in support of the relief organizations working in the areas hardest hit by Hurricane Sandy. The storm devastated the U.S. Northeastern coast in late October 2012. The combined response efforts provided by Crowley and Titan were extensive. Shortly after the storm, the “S.S. Wright”, a Crowley-managed, Maritime Administration (MARAD) Ready Reserve Force ship, along with fellow MARAD vessel “Kennedy”, relocated to Staten Island, New York, in support of the Federal Emergency Management Agency (FEMA) to provide cost-effective berthing and meals for more than 900 FEMA personnel and Red Cross relief workers, among others, daily. After being stationed in New York for more than a month, The “S.S. Wright” provided more than 4,000 overnight accommodations and over 15,000 meals. In honor of the “S.S. Wright” and “Kennedy” crewmembers’ excellent efforts, MARAD recently recognized them with Merchant Marine Medals for Outstanding Achievement. The “Kennedy” was a viable resource for this FEMA mission in part because Crowley’s technical services team outfitted the vessel with additional accommodation and galley space several years ago. The Crowley logistics team also tapped its capabilities by coordinating the land transportation of oversized pumps, generators and associated equipment in support of the Defense Logistics Agency (DLA) and the Army Corps of Engineers. Crowley’s liner shipping services team, based in Pennsauken, New Jersey, provided additional support services by supplying necessary transportation equipment and truck drivers. The fleet of heavy haul trucks – nearly 150 in total from all over the U.S. and Canada – delivered the out-of-gauge equipment to Lakehurst, New Jersey, where the Crowley logistics team then arranged for the cargo to be unloaded quickly using heavy-lift cranes and transported to their final destinations throughout the tri-state area via cost-effective shuttles. In a single day up to 30 trucks made deliveries. Simultaneously, Titan and OPA 90 Marine Response Alliance partner, Marine Pollution Control, the largest and most experienced U.S. provider of emergency lightering services worked alongside Titan personnel to mobilize their high-capacity pumping systems for industrial pumping services. The equipment was deployed at the site of the World Trade Center memorial and museum in New York City. Thanks to the team’s fast and effective work, water was removed quickly, allowing tourism to commence prior to the Thanksgiving holiday rush, a critical time for the city’s economy. Titan was similarly engaged in several additional wreck removal and emergency response projects in some of the hardest-hit areas along the Northeastern coast. The next project was done in response to the 1,100dwt, 184.6’ x 36.1’ x 11.9’ depth tanker “John B. Caddell”, which washed ashore on Staten Island, New York, during the hurricane’s storm surge. “John B. Caddell”, built in 1941 by RTC Shipbuilding Corp. of New Jersey, had been sold in 2010 to Nigerian operators, who reportedly were never able to obtain clearance to depart for the voyage across the Atlantic and ultimately abandoned the ship. The job, which included oily water and HAZMAT removal, securing hull breaches, ballasting, and installing anchor points was completed in only five days in partnership with Sea Wolf Marine, a New Jersey-based marine towing company. Donjon Marine's 191’ x 101’ x 20’, 1,000 ton lift stiff-leg crane “Chesapeake 1000” lifted the “John B. Caddell” off the shoreline into the water to be checked for seaworthiness and then prepared for transport to a beach slip operated by Donjon Marine and to be broke up by Donjon Recycling of Staten Island. Titan was soon after hired by the New York Port Authority to remove the stricken 246.1’ x 71.5’ x 18.2’, 1986 built barge “New York” from the Port of Newark, where it became stranded. Titan successfully removed the vessel and refloated it in only three days using the company’s roller bags. Next, Titan, along with partner Inland Salvage – a Louisiana-based salvage response and wreck removal service provider – was hired once again by the New York Port Authority to remove containers, which were either washed ashore or were submerged near Governor’s Island, a 172-acre island in the heart of New York Harbor. To complete the job, Titan and Inland Salvage mobilized a crane barge and dive team. Titan and Inland Salvage also joined forces to remove 11 barges that washed ashore in South Amboy, following the storm surge. Nine of the barges were successfully refloated using Titan’s roller bags and the remaining two were delivered to a recycling facility for scrapping. The project was completed in only 19 days. Finally, Titan and Inland Salvage worked together to remove the New York Waterways’ 78.5’ x 28.5’ aluminum catamaran ferry boat “U.S. Senator Frank R. Lautenberg” from where it was washed ashore onto the greens of Liberty National Golf Course, which is positioned alongside the Hudson River in Jersey City, New Jersey. Once again deploying Titan’s roller bags, the teams were able to successfully ease the ferry back into the water in less than five days.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Seattle’s Foss Maritime also delivered crucial relief in Super-storm Sandy’s wake. Even before the storm finished its deadly rampage on America’s East Coast, the federal government reached out to Foss Maritime Co. to provide disaster relief in devastated parts of New York and New Jersey. The call came because officials knew of the Seattlebased company’s successful work in earthquake-torn Haiti. The Defense Logistics Agency contacted John Tirpak, Foss’ Vice President of Marine Transportation, as communities throughout New York and New Jersey struggled to cope with the tidal surge and high winds that Sandy brought in its wake. Subways and rail lines were under water, people were trapped in homes and apartments, hospitals had no power, and vital communications centers had lost electricity. “We knew from our work in Haiti that we had to get the necessary equipment – and the right people – to affected areas as quickly as possible,” said Tirpak. “And we knew from experience that we’d be entering a situation where chaos reigned, communication would be difficult if not impossible, and roadways would be impassable.” As a result, Tirpak designated Rob Wagoner as Incident Commander for the Sandy Relief effort due to his extensive work in the Haiti Relief effort in Port Au Prince. Within hours Foss had relief supplies headed to New York and New Jersey. The company mobilized 26 pumps, six generators and the personnel to operate the equipment from locations across the country, trucking them to Naval Air Station Lakehurst, New Jersey. The U.S. Army Corps of Engineers marshaled the equipment for deployment from there. “Foss was contacted during Sandy because of the work we’d done in Haiti in partnership with the U.S. government,” said Wagoner, who helped deliver tens of thousands of tons of food and rebuild the island-nation’s main port as he oversaw company relief operations. “The Defense Logistics Agency in particular was well aware of Foss’ capabilities in the face of a natural disaster.” A favorite tug remembered by many on the U.S. West Coast, the 121.6’ x 34.2’, twin screw tug “Coastal Sun” (ex-Dauntless, E.B. MacNaughton) was sold to Southern Recycling of Amelia, Louisiana to be broken up. The tug was originally designed by Schuller & Allan of Houston, Texas and built by Gulfport Shipbuilding Corp. in Port Arthur, Texas to handle the 17,800dwt, 430’ x 85’ ocean, self-discharge urea barge “Hawaii” for Hilo Transportation in the Hawaiian Islands. She was powered by a pair of direct-reversing Fairbanks Morse 12-38D8-1/8 diesels totaling 4,400BHP, Lufkin 4.48:1 reduction gears, shaft brakes and 120” x 108” open props on 10.75” shafts. Marcon first became involved in the mid-late 80s when we bareboat chartered her to Alaska Tug & Salvage, along with the 300’ x90’ x 20’ ocean deck barge “Alaska Enterprise” to haul containers in the Far East on a Military Sealift contract. I remember running her on her sea trials before delivery and was very surprised how well and speedily she maneuvered in spite of being direct reversible. Both the tug and barge performed well on the contract, but on the return trip to the States she lost the tow in bad weather – starting another saga / sea story about the return of the barge heard over more than a couple of cold beers that was one more tale that I wish that I had been able to record. Crowley purchased the tug and barge around 1989/90, renamed the tug “Dauntless” and regularly swapped between her and one of their 5,570BHP, 135’ EMD boat on the Alaskan run. While Crowley still owned her I remember asking the Chief Engineer on board how she was performing and he proudly said that she was able to maintain the same towing speed as the EMD boats, but with better fuel economy. I couldn’t keep my mouth shut though. When I asked him about lube oil consumption, he turned his back on me and quietly walked away. In 1999, Marcon brokered the sale of the tug to Bay Towing in Norfolk, Virginia who rebuilt the main engines, did a lot of steel work in all ballast tanks and chain locker and renamed her “Coastal Sun”. She was sold to Harbor Ferry Services LLC in 2006. In 2008, Marcon put her on a six month charter in the Gulf of Mexico towing an 8,000dwt ocean cement barge and shortly thereafter sold her to Nigerian interests, to whom we sold several large single hull ocean tank barges plus two 691’, 18,200BHP / 48,067dwt integrated ocean tug / petroleum barges. “Coastal Sun” never left the Gulf Coast though and remained laid up until finally sold for scrap. In her day she was a very well designed, laid-out and built tug, but 43 years later there were no buyers interested in operating her – especially with Fairbanks Morse diesels that Owners said ran “as smooth as a clock”.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

61

Marcon International, Inc. Tug Boat Market Report – May 2013

According to the U.S. Army Corps. of Engineers, All of the Great Lakes are their long-term average (1918-2012) water levels. Lakes Superior and Michigan-Huron continue their 14 consecutive year stretch of below average water levels, the longest in each of their recorded histories. The most probable line of the latest forecast shows Michigan-Huron remaining 2 to 4” above record lows. If dry conditions are experienced in the Michigan-Huron basin during the next few months, water levels could return to record lows. All the other lakes have remained and are forecasted to remain above their record lows. The water level of Lake Superior in March was 12” below chart datum while the level of Michigan-Huron was 15” below chart datum. These water levels are expected to remain below chart datum over the next several months. Low water levels on the Great Lakes will affect navigation in several ways. The first is that harbors and ports on Lakes Michigan, Huron and Superior will experience lake levels significantly below low water datum for the rest of this navigation season and the beginning of next season. Shippers will have to continue to light load. Groundings will be much more likely and some harbors may close. Waukegan Harbor is currently closed to commercial navigation. Although water levels on Lakes Erie and Ontario are expected to remain above datum, they remain below average and thus are also expected to have navigation impacts. Also, it is important to note that because the Great Lakes operate as a system with interdependent ports, problems in the upper lakes have negative impacts across all the commercial projects throughout the system, including the ports on Lakes Erie and Ontario. Light-loading caused by record low levels on the upper lakes will have repercussions throughout the system with increased costs to shippers in the agricultural and manufacturing sectors. Every foot of lost depth requires a 1,000footer to load 3,200 tons less. At 1.5 feet below datum, they are losing 8-10% of their carrying capacity. This causes significant economic impacts in increased shipping costs. In December, American Commercial Lines (ACL) announced that it will begin transporting crude oil by barge on U.S. inland waterways for MEG Energy (U.S.) Inc., a subsidiary of the Canadian oil company MEG Energy Corp. Crude oil will arrive primarily via pipeline and will be transferred to barges at storage terminals located on the inland waterways for transport by ACL to the Gulf Coast. ACL is dedicating new tank barges built by its manufacturing division Jeffboat into service for MEG Energy, as well as towboats newly repowered and refurbished for maximum efficiency and reliability. "We are committed to providing MEG Energy with the highest quality equipment and the highest level of service by our team of experienced and dedicated maritime professionals," Mark Knoy, President and CEO of ACL, stated. "Our investment underscores the value we place on MEG Energy's business. They are an excellent addition to ACL's portfolio as we advance our strategy of diversifying our business mix with a focus on liquids." Dan Jaworski, ACL's VP Liquids Sales, added, "Our ACL team is proud to provide the significant economic and environmental benefits of inland barge transportation for our new, valued customer MEG Energy." As of 1st January 2013, ACL entered into an agreement with SeaRiver Maritime Inc., a marine affiliate of Exxon Mobil Corporation, to provide petroleum barge transportation services on the U.S. inland waterways via ACL’s mainline service and in unit tows. "We look forward to partnering with SeaRiver to transport ExxonMobil cargoes on the inland waterways," Mark Knoy stated. "This is an exciting opportunity as we continue to diversify our business mix with a focus on liquid cargoes and add the highest caliber shippers to our customer portfolio. To meet the needs of SeaRiver and all of our valued customers, we have condensed our traffic patterns for maximum efficiency, refurbished our boat fleet for improved reliability, and are adding liquid capacity with new 30,000-barrel tank barges built with the highest quality craftsmanship by our manufacturing division Jeffboat." Barges continue to be an efficient, economical, and environmentally friendly mode of transportation. One tank barge has the cargo capacity of 46 rail cars or 144 trucks, an incredible economy of scale that provides significant economic savings. Towboats also consume less fuel and emit far less pollutants than locomotives or trucks, providing clean and green transportation of liquid cargo.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Maine Port Authority (MPA) selected McAllister Towing & Transportation of New York as their partner for design of a containerized AT/B unit for the New England Marine Highway Project, following a competitive RFQ and RFP process which began in December after the Port was awarded $150,000 in design funding by the U.S. Maritime Administration under the Marine Highway Program. The design of the containerized AT/B is expected in the near future as the parties work with various stakeholders, shippers, and operational partners to assess the needs of the service and elements of the design. Both McAllister and the MPA remain confident that taking time on the front end will pay dividends in ensuring the service remains viable once started. The Initial design phase is expected to be completed this summer and a design submitted to Marad on 25th September. In Fall 2010, the MPA applied for and received designation from the Department of Transportation as one of eight Marine Highway Projects in the U.S. The application specified a Marine Highway connection between the Portland, Maine International Marine Terminal (IMT) and the Port of New York/New Jersey (NY/NJ), with a southern New England port in between. It is the intent of the MPA to have the barge component of the AT/B owned by a public entity, alleviating the rate structure of a portion of capital costs required for a new containerized A/TB. MPA and McAllister will spend the next few months working to design the AT/B based on shipper and itinerary requirements, cost, speed, capacity etc. The determining factor throughout this process, however, will be market demand and requirements of the trade. In the past three years, the existing Marine Highway service moved over 12,000 truckloads of freight between Maine and New Jersey, freeing the I-95 Corridor of this traffic. With additional shippers indicating support for a more reliable Marine Highway service, this project has potential to offer additional relief to the busy I-95 corridor while reducing greenhouse gas emissions and conserving fuel. A strong public-private partnership is in place to support and promote the service. Public benefits that will be derived from this project include reduction of travel delays and congestion at urban centers, increased fuel efficiencies and improved surface transportation system resiliency. The Port of Portland, Maine has a 30-year history of short sea shipping operations, including container feeder services to Halifax, Nova Scotia, as well as efforts with containerized tug-and-tow operations to and from NY/NJ. This history has given the local market and the Port significant experience with various types of operations, as well as an understanding of what is and is not economically sustainable. The MPA invested $8 million into the IMT, and has a pre-existing base of customers, who currently use the terminal for containerized freight (minimum 2,000 TEU per year over the road). MPA believes that a containerized ATB presents the lowest cost transportation option for shippers, and is pursuing development of such a vessel. Moran Miami celebrated its 20th year in business this past February. “Moran began operating in Miami in 1993,” recounts Jamie Scott, division’s general manager, “at the urging of a customer who was using another towing provider and wanted improved service. The customer had some experience with Moran in other ports.” Mark Vanty, currently VP and general manager of Moran Norfolk, was Moran Miami’s first port manager. He oversaw a fleet of two twinscrew tugs. The Port, while lively, was then a quieter destination than the emerging hub it has become today, Ms. Scott says; two twin-screw tugs provided adequate muscle to handle vessel traffic Moran serviced at the time. Times have changed. According to PortMiami, more than 12 of the world’s top shipping lines now call at Miami. Many of these - giants like CMA CGM, Maersk, Hapag-Lloyd, Evergreen and NYK -are Moran Miami customers. The Moran Miami fleet now comprises the 4,400HP Z-drive tractor tug “Fort Bragg” (photo), and 3,000HP twin screw “John Turecamo”. “Moran currently handles the preponderance of cargo tonnage at the Port,” Ms. Scott says. Most of the fleet’s regular customers are Panamax container ships, and Moran Miami tugs assisted two Post-Panamax ships. More jumbo ships are expected. Reflecting on Miami’s prospects for growth, Ms. Scott says she remembers when the Port had three container cranes; today it has 10, two of which are Post-Panamax scale. PortMiami has two additional PostPanamax cranes on order. The Port is also installing an “on-dock” intermodal container facility, which will connect with a new rail facility in downtown Miami and by extension, 70% of the U.S. population. 20 years ago, Miami had a 36’ channel depth; today it is 42’, and PortMiami expects to shortly sign a contract with the Army Corps of Engineers to dredge the channel to a depth of 50’. The deepening is scheduled to be completed in time for the opening of the Panama Canal Expansion in 2015. The port modernization coincides with a solid three-year trend of recovery, documented in PortMiami’s trade data for the period, since 2009’s downturn. Further growth is expected.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Colorado State University’s Department of Atmospheric Science’ 3rd June 2013 “Forecast of Atlantic Seasonal Hurricane Activity and Landfall Strike Probability” continues to forecast a very active 2013 Atlantic hurricane season. The tropical Atlantic remains very warm, and CSU does not anticipate development of a significant El Niño. Given the above-average forecast, the is calling for an above-average probability of United States and Caribbean major hurricane landfall. Adjusted 2013 Forecast Forecast Parameter & 1981 – 2010 Median (in parentheses) Named Storms (12.0) Named Storm Days (60.1) Hurricanes (6.5) Hurricane Days (21.3) Major Hurricanes (2.0) Major Hurricane Days (3.9) Accumulated Cyclone Energy Index (92) Net Tropical Cyclone Activity (103%)

Adjusted Final Forecast 18 95 9 40 4 9 165 175

Coastal residents are reminded that it only takes one hurricane making landfall to make it an active season for them, and they need to prepare the same for every season, regardless of how much or how little activity is predicted. The university estimates that 2013 will have about 9 hurricanes (median is 6.5), 18 named storms (median 12.0), 95 named storm days (median 60.1), 40 hurricane days (median 21.3), 4 major (Category 3-4-5) hurricanes (median 2.0) and 9 major hurricane days (median 3.9). The probability of U.S. major hurricane landfall is estimated to be about 140% of the long-period average. They expect Atlantic basin Net Tropical Cyclone (NTC) activity in 2013 to be approx. 175% of the long-term average. This is the 30th year in which the CSU Tropical Meteorology Project has made forecasts of the upcoming season’s Atlantic basin hurricane activity. A significant focus of recent research involves efforts to develop forecasts of the probability of hurricane landfall along the U.S. coastline and in the Caribbean. Whereas individual hurricane landfall events cannot be accurately forecast months in advance, the total seasonal probability of landfall can be forecast with statistical skill. With the observation that landfall is a function of varying climate conditions, a probability specification has been developed through statistical analyses of all U.S. hurricane and named storm landfall events during the 20th century (1900-1999). Specific landfall probabilities can be given for all tropical cyclone intensity classes for a set of distinct U.S. coastal regions. As an example Colorado State University finds that the probability of Florida being hit by a major (Cat 3-4-5) hurricane this year is 34% which is well above the climatological average of 21%. South Florida is much more prone to being impacted by a hurricane on an individual year basis compared with northeast Florida. For instance, the probability of MiamiDade County being impacted by hurricane-force wind gusts this year is 19%. For Duval County, the probability of being impacted by hurricane-force wind gusts is only 5%. However, considering a 50-year period, the probability of Duval County experiencing hurricane-force wind gusts is 75%. For the island of Puerto Rico, the probability of a named storm, hurricane and major hurricane tracking within 50 miles of the island this year is 50%, 26%, and 8%, respectively. Estimated Probability of One or More Landfalls Region Entire U.S. Gulf Coast Florida & East Coast Caribbean

Tropical Storm (*) 94% (79%) 79% (59%) 71% (50%) 95% (82%)

Category 1-2 Hurricane 86% (68%) 62% (42%) 64% (44%) 77% (57%)

Category 3-4-5 Hurricane 72% (52%) 47% (30%) 48% (31%) 61% (42%)

All Hurricanes 96% (84%) 80% (60%) 81% (61%) 91% (75%)

Named Storms 99% (97%) 96% (83%) 94% (81%) 99% (96%)

(* long-Term mean annual probability of one or more landfall during last 100 years)

Colorado State University’s Department of Atmospheric Science will issue the next seasonal updates of their 2013 Atlantic basin hurricane forecasts on Friday 2nd August. They will also be issuing two-week forecasts for Atlantic TC activity during the climatological peak of the season from August-October. A verification and discussion of all 2013 forecasts will be issued in late November 2013. June 2013’s full forecast in PDF format can be on their website.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

64

Marcon International, Inc. Tug Boat Market Report – May 2013

On 1st June, Sause Bros. of Honolulu, Hawaii, Portland and Coos Bay, Oregon celebrated the launch of its newest 360.0’ x 105.0’ x 23.0’ depth ocean deck barge “Columbia” in Portland, Oregon with a champagne christening, followed by a Hawaiian themed open house and party at Sause’s Portland headquarters, attended by brokers from Marcon International. Construction on the 14,200stdw barge began in March 2012 at Gunderson Marine. It will be ready for common carrier service this fall between Sause’s Teevin Terminal on the Columbia River in Rainier, Oregon and Kalaeloa Harbor. With the “Columbia” joining Sause’s other modernized “Kamakani”, the company will be able to provide sailings twice a month with vessels that are larger and more fuel-efficient than previous models. “Columbia’s” advanced hull design with her Hydralift skegs will help lower fuel costs and cut its carbon footprint by 50% compared to its predecessor. This offers an economic advantage to the over 500 companies that use Sause to regularly ship products to Hawaii. Sause plans to continue updates to its fleet of barges and tugs by utilizing the latest engine technology fueled by ultra-low sulphur diesel. Tugs are currently being repowered at Southern Oregon Marine (SOMAR), a division of Sause Bros. in Coos Bay. The company’s goal is to achieve an overall carbon reduction of 80% for its Hawaii common carrier service by end 2014. McAllister Towing and Transportation of New York – one of the oldest and largest marine towing and transportation companies in the United States, acquired the assets of Constellation Tug Company of Charleston, Massachusetts from Foss Maritime. Foss had acquired Constellation and their four tugs and three barges which provided ship assist and marine services in the ports of Boston, Quincy and Salem about seven years earlier, expanding the fleet by adding the Foss-built new (at the time) 5,000HP Dolphin class ASD tug “Leo” (ex-Signet Magic) (photo right) with 65 tons of bollard pull and the 95’, 3,000BHP Voith Schneider tractor tug “Orion” (photo left) (ex-America, TT America) with 41.25 tons of bollard pull. “Leo”, renamed “Bridget McAllister” will work for a short time in Portland, Maine before being transferred to Baltimore, while “Orion” will be renamed “Matthew McAllister” and heading off to Baltimore, Maryland first and then Norfolk, Virginia. The 1,700BHP, 78’ twin screw “Volans” (ex-David Foss) built in 1980 by Main Iron Works as one of the “Super D Class” and powered by CAT D398s with kort nozzles and flanking rudders, will become the “David McAllister” and most likely stay in Providence, Rhode Island. The 2,560BHP shallow draft, twin screw “Tucana“ (ex-Little Joe, M.P.T. Pelham, Exxon Pelham, Esso Pelham), powered with a pair of turbo-charged GM16V149TIs remained in lay-up in Boston and will most likely be sold. Another Constellation tug, the 2,400HP single screw “Ursa” (ex-Port Service, Port Jefferson) was sold two years after Foss purchased the company. On 8th May, the 3,300HP, 109’ x 29’ x 16.3’ depth tug “Kaleen McAllister” (ex-YTB-756 Pontiac) struck an unidentified object in Baltimore Harbor and sank at Pier 3 in Locust Point end ended up with only a small portion of the top of her pilothouse above water. No one was on board at the time of the sinking. The vessel had on board an estimated 18,000 – 22,000g of diesel and a surface sheen was observed after an estimated 10 – 15 gallons of fuel was spilled. Several nearby tugs including the “Robert E. McAllister” and Dann Marine Towing’s “Treasure Coast” and “Sun Coast” attempted to assist, but were unsuccessful as the water was coming in faster than they could pump it out. Tug was originally built in 1960 as a single screw Navy docking tug by Southern Shipbuilding Corp. and delivered to the U.S. Navy in January 1961. She was sold by the General Services Administration in 2000 rebuilt by McAllister in 2002 when she was converted to an ASD shipdocking tug with a single EMD 12-710 G7C-Tier II diesel and a Schottel 1515 prop giving her a bollard pull of about 39 tons. Reportedly her original underwater submarine fendering was kept and refurbished. She was also fitted with a JonRie Intertech Series 200 bow winch at the time of her conversion. McAllister plans to salvage and repair the tug.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

65

Marcon International, Inc. Tug Boat Market Report – May 2013

The 1,700BHP twin screw tug “Halle Foss” is once again teaming up with a “mosquito fleet” operated by sister company Delta Western, helping to deliver fuel and energy to remote communities of Western Alaska that are ice-bound and inaccessible for most of the year. As tender to the Delta Western 31,100bbl, 248’ x 56.0’ x 18.0’, ocean petroleum barge “Washington”, “Halle” is working its way north from Bristol Bay as the ice breaks up on dozens of rivers, streams, bays, and inlets while supplying three shallow-draft tugs and barges that deliver fuel to more than 50 communities each year. Some of those communities have 100 or fewer residents, and might be as far as 200 miles up shallow, unmarked rivers. “The river levels will sometimes be challenging because of insufficient rain or snowfall, and might require light loading in order for our vessels to make it,” said Mike Myers, VP Operations for Delta Western. “And you have to have the highest tide of the year in many of these places, so you only get one stab at it.” But he said the tug operators are well served by their extensive knowledge and experience, noting, “they have learned what to look for, and what to avoid.” Delta Western, one of Alaska’s leading fuel suppliers, faces numerous other challenges in the Western Alaska business, not the least of which is weather. “It can preclude vessel-to-vessel transfers while you’re waiting for the wind and sea-swell state to drop and allow safe operations,” Myers said. “It also can make for difficult transits, because there are fairly significant distances between safe harbors.” The barge “Washington” can be refilled at one of three terminals Delta Western operates in Western Alaska, from a larger “line-haul barge” or from oil tankers. Products typically include several grades of heating oil, diesel fuel, aviation fuels and gasoline. The “Halle Foss” and barge “Washington” generally anchor in sheltered, deeper water while supplying the mosquito fleet vessels as they ferry their cargoes upstream. One of the boats in Delta Western’s mosquito fleet is the “Capt. Frank Moody”, which draws just 3.5’ and was built at Foss Rainier Shipyard. The shipyard just completed a sister vessel (page 27), which will be operated by Foss on Alaska projects. This is “Halle Foss”’ second season working for Delta Western. Foss and Delta Western are both owned by Seattle-based Saltchuk Resources. Foss also barged four 100-ton tanks built to hold liquid natural gas from Seattle to the Columbia River beginning on April 6. The tanks were transferred with ship’s gear from Briese Schiffahrts’ 17,300dwt, Antigua flagged cargo vessel “BBC Amazon” to the Anderson Marine Services’ 250’ x 70’ x 16’ ocean flat deck barge “AMS 250” at the Port of Tacoma’s Terminal 7 and towed to Portland by the 2,250BHP twin screw tug “Iver Foss”. Another company towed the barge to Umatilla, Oregon, where the tanks began a short over-the road trip to Hermiston, Ore. Each tank measured 98.5’ long and 14’ wide. In the photo at left, the Foss 3,000BHP ASD inland river pushboat “P.J. Brix” repositions the barge in Portland, Oregon. Foss’ Red Dog managers are hoping for better weather in the Arctic this season, following a stormy 2012 effort during which the team met its lightering goals in spite of having the fewest working days ever. Foss hopes to carry between 1.2 million and 1.4 million tons of ore this year - the 24th for Foss on the project - from the Red Dog Mine to deep draft ships waiting at anchor. Foss uses two 275’ x 76’ x 18’ depth specialized self-discharge ore lightering barges, the “Kivalina” and “Noatak” to carry the ore from the shallow port to the ships. About 75 mariners, barge crewmen and support personnel, plus four twin screw tugs go north with the barges each season. The tugs are the 2,250BHP “Iver Foss”, 2,900BHP “Stacey Foss”, 3,000BHP “Sidney Foss” and 2,900BHP “Sandra Foss”. Foss will be testing two new loaders that scoop the ore from the barge decks and put it into hoppers. These new loaders weigh about 60% less than the existing 115,000-pound units, use about 60% less fuel and will carry reduced maintenance expense because they will be leased. In addition to regular maintenance, off-season work on the barges included installation of new scale systems for weighing the ore, and new electronics for monitoring the barges’ drafts. 2012 was a “rough year” as a result of the weather.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

66

Marcon International, Inc. Tug Boat Market Report – May 2013

Vessels from Foss Maritime and sister company AmNav Maritime teamed up and battled through gale-force winds and 14-16’ seas in mid-April to rescue the 225’ x 78’ x 15’ ocean derrick barge “Barge 5” off the central California coast after its tug took on water and sank at approx. 36 deg. 16.2’ N; 122 deg. 09.3’W. By the time a U.S. Coast Guard helicopter was on-scene to conduct search & rescue operations, the barge, a life boat and debris were visible but no signs of pollution and no sign of the 85’ x 22’ twin screw tug “Delta Captain” (photo right). A Coast Guard helicopter rescued the four crew members from a life raft soon after the 1,200BHP tug sank about 13 nautical miles off Point Sur. The tug, owned by Marine Express of Alameda, California, had been towing Traylor Bros. Inc.’s derrick barge from San Francisco to Long Beach. Foss Bay Area Regional Operations Manager Bob Gregory said Foss was called to go after the drifting barge at about 1600 on April 13th, and the 98’.0’ x 40.0’, 6,250BHP ASD tug “Marshall Foss” was underway and outside the Golden Gate by about 1800. The Coast Guard wanted a second tug, so Foss contacted AmNav, which dispatched their 98.0’ x 32.0’, 2,250BHP twin screw tug “Liberty”. The tugs reached the derrick barge, which had been blown about 60 miles south, shortly before 1100 the next day. “Liberty”, in consultation with the Foss crew, waited until the wind and seas abated and deployed an Orville Hook, a device designed by Sause Bros. Ocean Towing and designed to snag a link of the chain or tow wire of barges or vessels that have lost power. “They got the barge’s tow bridle on the first pass,” said Gregory. While it was believed that the “Delta Captain’s tow wire to the barge had parted, the Coast Guard couldn’t be 100% sure the tug wasn’t dangling on the wire 1,400’ below the surface. To be safe, the Coast Guard had the “Marshall Foss” accompany the “Liberty” as it towed the barge to Southern California. After dumping the “Delta Captain’s” tow wire off Catalina Island, the “Liberty” arrived with the derrick barge in Long Beach late in the afternoon of April 17th. The ABS classed “Barge 5” is fitted with a pedestal mounted Whirley 400 ton crane with a 150’ boom. Northland Services’ (see also page 51 this report) 3,000BHP twin screw tug “Polar Wind” (ex-Gale Wind) is back in business after it was rolled on selfpropelled dollies into a Foss Shipyard drydock in Seattle and launched on May 6th, following nearly five months of repairs on the tarmac. Work on the 86’ x 32’, 1991 built tug, extensively damaged in a grounding in Alaska last November, included replacing more than 18,000 pounds of steel on the hull, installing new rudders, tail shafts and propellers and a full paint job from the bulwarks to the keel. Shipyard craftsmen also performed extensive work on interior spaces and machinery damaged by water intrusion when the tug grounded. In addition, they rebuilt the tow winch. “Every craft in the yard had a significant role in this one,” said Jon Hie, director of shipyard operations. “Polar Wind” and their 250’ x 75’ x 16’ ocean container barge “Unimak Trader” were transiting from Sand Point to Dutch Harbor in the Aleutian Islands with a cargo of frozen seafood for Trident Seafoods when they grounded while the tug was attempting to recover the barge after the towline parted in 6 – 8’ seas and 40mph winds (see page 40 November 2012 Marcon Tug Market Report). The barge “Unimak Trader” was salvaged and towed to Homer, Alaska to be salvaged by Peninsula Scrap & Metal since the cost of repair exceeded the barge’s value.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

67

Marcon International, Inc. Tug Boat Market Report – May 2013

The American Society of Civil Engineers’ (ASCE) “2013 Report Card for America’s Infrastructure” is a comprehensive assessment of the nation’s infrastructure across 16 sectors. We are making progress. Updated once every four years, this year’s Report Card found that America’s cumulative GPA for infrastructure rose slightly to a “D+” from a “D” in 2009, indicating that “the infrastructure is in poor to fair condition and mostly below standard, with many elements approaching the end of their service life. A large portion of the system exhibits significant deterioration. Condition and capacity are of significant concern with strong risk of failure”. The grades in 2013 ranged from a high of “B-“ for solid waste to a low of “D-“ for inland waterways and levees. Solid waste, drinking water, wastewater, roads, and bridges all saw incremental improvements, and rail jumped from a “C-“ to a “C+”. No categories saw a decline in grade this year. The total investment needed by 2020 across all infrastructure categories is estimated at $3.6 trillion. Our infrastructure systems are failing to keep pace with the current and expanding needs, and investment in infrastructure is faltering. Infrastructure is the foundation that connects the nation’s businesses, communities, and people, driving our economy and improving our quality of life. For the U.S. economy to be the most competitive in the world, we need a first class infrastructure system — transport systems that move people and goods efficiently and at reasonable cost by land, water, and air; transmission systems that deliver reliable, low-cost power from a wide range of energy sources; and water systems that drive industrial processes as well as the daily functions in our homes. Over two hundred million trips are taken daily across deficient bridges in the nation’s 102 largest metropolitan regions, earning them a “C+” rating. In total, one in nine of the nation’s bridges are rated as structurally deficient, while the average age of the nation’s 607,380 bridges is currently 42 years. The Federal Highway Administration estimates that to eliminate the nation’s bridge backlog by 2028, we need to invest $20.5 billion annually, while only $12.8 billion is being spent currently. The challenge for federal, state, and local governments is to increase bridge investments by $8 billion annually to address the identified $76 billion in needs for deficient bridges across the United States. (photo right of 23rd May collapse of Interstate 5 bridge over Skagit River, about an hour from Marcon’s office). In Washington State, when a bridge is built the Department of Transportation gives it a design life of 75 years. As of 2011, there were 232 WSDOT bridges 75 years or older. The heavily travelled, narrow two-lane 1,487’ x 28’ Deception Pass Bridge linking Whidbey Island to Fidalgo Island and the mainland was built in 1935, partly with workers from the Civilian Conservation Corps. The picturesque bridge (photo left) is regularly inspected, but still is 78 years old and 180’ above a deep, turbulent channel below with currents up to 10kn and about 20,000 cars crossing daily. Reportedly there are more than 200 bridges in Washington State alone designated as fracture-critical that could collapse if a key part fails, as did the Interstate 5 span on 24th May. Dams in the U.S. are also graded as a “D”.The average age of the 84,000 dams in the country is 52 years old. The nation’s dams are aging and the number of high-hazard dams is on the rise. Many of these dams were built as low-hazard dams protecting undeveloped agricultural land. However, with an increasing population and greater development below dams, the overall number of high-hazard dams continues to increase, to nearly 14,000 in 2012. The number of deficient dams is currently more than 4,000. The Association of State Dam Safety Officials estimates that it will require an investment of $21 billion to repair these aging, yet critical, high-hazard dams. Our “D-“ graded nation’s inland waterways and rivers are the hidden backbone of our freight network - they carry the equivalent of about 51 million truck trips each year. In many cases, the inland waterways system has not been updated since the 1950s, and more than half of the locks are over 50 years old. Barges are stopped for hours each day with unscheduled delays, preventing goods from getting to market and driving up costs. There is an average of 52 service interruptions a day throughout the system. Projects to repair and replace aging locks and dredge channels take decades to approve and complete, exacerbating the problem further. The inland waterways system includes 12,000 miles of commercially navigable channels, with over 200 lock chambers. Major water channels, from the Mississippi to the Columbia-Snake river systems (the latter in the Pacific Northwest), carry barges that are the preferred method for moving bulk cargo such as grain and steel, as well as hazardous materials. More than 566 million tons of freight move through the inland waterway system annually, valued at more than $152 billion. Actual traffic on inland waterways has remained stable in recent years, although the Department of Transportation has projected that it will increase over the next 25 years.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

68

Marcon International, Inc. Tug Boat Market Report – May 2013

For customers that ship goods through the inland waterway system, the price of services has increased since 2005 as the system ages and causes delays. The greatest threats to performance of the nation’s inland waterway system are delays caused by insufficient funds for proper operation and maintenance of facilities. Many locks are too small for modern barges, and are susceptible to closures. When a lock or dam reaches poor condition, barges have to stop more often to allow for scheduled maintenance. These scheduled lock outages to address maintenance issues are increasing. Unscheduled delay is most often the result of high volumes at transit points, as well as occasional failures in equipment, resulting in increased operating costs. Unscheduled delays are especially costly because vessel operators are unable to anticipate and offset the costs of these incidents. Ninety percent of locks and dams on the U.S. inland waterway system experienced some type of unscheduled delay or service interruption in 2009, averaging 52 delays a day. The hours lost due to unscheduled delays has increased significantly since the 1990s, which costs industry and consumers hundreds of millions of dollars annually. For 2011, the total number of hours of delay experienced by barges throughout the entire inland waterway system reached the equivalent of 25 years. The greatest total delay in 2011 at a particular lock was at the Markland Lock on the Ohio River with 52,032 hours. The Ohio and Upper Mississippi systems have a disproportionate share of delays compared to other rivers across the country. The U.S. Army Corps of Engineers estimates that more than 95% (by volume) of overseas trade produced or consumed by the United States moves through our Grade “C” ports. To sustain and serve a growing economy and compete internationally, our nation’s ports need to be maintained, modernized, and expanded. While port authorities and their private sector partners have planned over $46 billion in capital improvements from now until 2016, federal funding has declined for navigable waterways and landside freight connections needed to move goods to and from the ports. Approx. 76 % of America’s international exports accessed global markets by water in 2010, valued at over $460 billion. Approx. 70% (by tonnage) of U.S. imports arrived to the U.S. by water in 2010, valued at over $940 billion. This trade volume is handled by a sizable network of ports and the vessels they serve. Nearly 40,000 privately owned commercial vessels operate in the U.S., including tugs, barges, ferries, and lake vessels. Much of the activity is concentrated at a handful of the largest ports in the nation. The top ten U.S. ports accounted for 60% of oceangoing vessel calls. The United States has over 300 commercial harbors, through which pass 2.3 billion tons of cargo a year, and over 600 smaller harbors. In 2010, 51% of the potential capacity of container years in U.S. ports was fully utilized. The system accommodated over 16,800 annual commercial vessel calls. While port terminal facilities themselves seem to have benefited from significant new investment and improvements, connections to the ports – the navigation channels leading to docks as well as the landside connections – need to be brought to modern standards. The terminals require navigable waterway maintenance and dredging, along with rail and highway connector improvements to function optimally. Without these corresponding improvements, the terminals will see limited benefits in terms of moving additional goods. While the number of vessel calls has decreased by 7% in the past five years, the average size of vessels calling at U.S ports increased by 9%. The average size of container ships has been increasing in anticipation of the Panama Canal expansion project, which will allow much larger ships known as post-Panamax ships through the Canal. According to the DOT, the number of port calls in the United States from these ships increased from about 1,700 calls in 2004 to 4,400 in 2009. In addition, trade volume through ocean ports is expected to more than double between 2012 and 2021, and to double again shortly after 2030. In 2011, ASCE commissioned a series of economic reports called “Failure to Act” to provide an objective analysis of the economic implications for the United States of current investment trends in key infrastructure sectors. Analyzing current national investment trends for surface transportation, water and wastewater, electricity, airports, inland waterways, and marine ports, the report conveys the overall economic impacts in terms of change in GDP, household income, employment, and exports in the years 2020 and 2040. In short, investing in infrastructure is an engine for long-term economic growth, increasing GDP, employment, household income, and exports. The reverse is also true — without investing, infrastructure can become a drag on the economy. Without increased investment, the report concluded that transportation delays, blackouts and brownouts, and water main breaks will lead to increased costs of $1.2 trillion to businesses and $611 billion to households by 2020. As conditions deteriorate, it will cost American families an average of $3,100 a year in disposable personal income. With U.S. unemployment in the construction industry still at 9.8% vs. the overall rate of 7.6%, an investment in our infrastructure could show some fairly quick positive results.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

69

Marcon International, Inc. Tug Boat Market Report – May 2013

Seacor Holdings Inc.’s net loss for first quarter ended March 31, 2013 was $10.9 million. For the preceding quarter ended December 31, 2012, Seacor reported a net loss of $2.6 million including a loss from continuing operations of $12.2 million. Executive Chairman of the Board, Charles Fabrikant, commented: "We are very unhappy with our results for both this quarter and the fourth quarter of 2012. As noted in the discussion of highlights that follow, these disappointing results resulted primarily because of four factors: (i) a large seasonal swing in revenues and expenses that negatively impacted our lift boat business; (ii) reduced barge activity levels for our inland group's dry cargo fleet; (iii) an impairment charge for two harbor tugs; and (iv) poor results from our ethanol investment. We believe the outlook for offshore activity in the U.S. Gulf of Mexico is positive, however, and we are also evaluating various paths to return our ethanol operation to profitability." Offshore Marine Services – Operating income was $5.2 million on operating revenues of $124.0 million compared with operating income of $19.3 million on operating revenues of $141.1 million in the preceding quarter. In the U.S. Gulf of Mexico, operating revenues were $2.5 million lower in the first quarter. Time charter revenues for Seacor's liftboat fleet were $8.2 million lower primarily due to the seasonal downturn for that fleet. The decrease was partially offset by increased time charter revenues of $5.5 million for Seacor's anchor handling towing supply vessels primarily due to increased utilization in support of platform supply activities. The number of out of service days attributable to drydockings increased by 292, or 230%, during the first quarter. Utilization was 73.7% compared with 77.1% in the preceding quarter and average day rates increased from $14,404 to $15,119 per day. As of March 31, 2013, Seacor had one vessel cold-stacked in the U.S. Gulf of Mexico. In International regions, excluding contribution of the wind farm utility vessels, operating revenues were $13.2 million lower in the first quarter. In Mexico, Central and South America, time charter revenues were $5.6 million lower, primarily due to an increase in out-of-service days attributable to drydocking activity and weak spot market conditions in Brazil. In Asia, time charter revenues were $5.1 million lower, primarily due to the sale of a vessel to one of Seacor's joint ventures and lower utilization following the conclusion of a term charter for a vessel operating in Sakhalin. Time charter revenues were lower in other geographical regions primarily due to weaker market conditions and the weakening of the pound sterling against the U.S. dollar. Utilization was 83.2% compared with 88.9% in the preceding quarter and average day rates decreased from $12,372 per day to $10,942 per day. In the first quarter, total number of days available for charter for Seacor's fleet, excluding wind farm utility vessels, decreased by 408 days, or 4% primarily due to fewer days in the quarter. Overall utilization, excluding wind farm utility vessels, decreased from 83.0% to 79.0% and overall average day rates, excluding wind farm utility vessels, decreased by 3% from $13,306 per day to $12,878 per day. Shipping Services (formerly Marine Transportation Services and Harbor and Offshore Towing Services) Operating income was $3.8 million on operating revenues of $46.5 million compared with operating income of $5.7 million on operating revenues of $46.3 million in the preceding quarter. Operating results for petroleum transportation were $3.1 million higher in the first quarter primarily due to less out-of-service time and lower drydocking expenses. Operating results for harbor towing and bunkering were $5.4 million lower in the first quarter primarily due to higher repairs and maintenance and drydocking expenses, and an impairment charge of $3.0 million for two harbor tugs. Operating results for short-sea and liner transportation were $0.4 million higher primarily due to improved operational efficiencies and lower repairs and maintenance expenses. Equity in losses in both quarters were primarily attributable to losses in Seacor's Jones Act liner transportation joint venture. As of March 31, 2013, Seacor's unfunded capital commitments were $151.8 million and included: 14 offshore support vessels for $106.1 million; seven inland river tank barges for $15.0 million; five inland river towboats for $12.7 million; four harbor tugs for $7.4 million; and other equipment and improvements for $8.0 million. In addition, Seacor notified a lessor of its intent to purchase two harbor tugs currently operating under capital leases for $2.6 million. Of these commitments, $97.8 million is payable during 2013 with the balance payable through 2015. Subsequent to March 31, 2013, Seacor committed to purchase additional equipment for $49.7 million. During the first quarter 2013, Seacor sold two offshore support vessels and other equipment for net proceeds of $60.6 million and gains of $2.3 million. During the first quarter 2012, Seacor sold one offshore support vessel and other equipment for net proceeds of $2.0 million and gains of $1.7 million. In addition, Seacor recognized previously deferred gains of $0.1 million. 70

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Marcon International, Inc. Tug Boat Market Report – May 2013

Hornbeck Offshore Services’ first quarter 2013 revenues increased 23.0% to $147.5 million compared to $120.0 million for the first quarter of 2012 and increased 10.7% compared to $133.2 million for the fourth quarter of 2012. Operating income was $47.4 million, or 32.1% of revenues, for the first quarter of 2013 compared to $28.6 million, or 23.8% of revenues, for the prior-year quarter; and $32.5 million, or 24.4% of revenues, for the fourth quarter of 2012. Hornbeck recorded net income for the first quarter of 2013 of $6.2 million compared to net income of $6.3 million year-ago quarter; and net income of $11.3 million for the fourth quarter of 2012. Revenues from the Downstream segment of $15.0 million for the first quarter of 2013 increased by $2.9 million, or 24.0%, compared to $12.1 million for the same period in 2012, and were in-line with the sequential quarter. The yearover-year revenue increase was largely due to improved market conditions in the GoM and in the Northeast. Hornbeck's double-hulled tank barge average dayrates were $19,338 for the first quarter of 2013 compared to $17,271 for the same period in 2012 and $17,694 for the sequential quarter. Utilization for the double-hulled tank barge fleet was 95.7% for the first quarter of 2013 compared to 85.4% for the year-ago quarter and 99.3% for the sequential quarter. The sequential quarter decrease in utilization was primarily due to 32 incremental days out-of-service for regulatory drydocking during the first quarter of 2013. Effective, or utilization-adjusted, dayrates for Hornbeck's double-hulled tank barges were $18,506 for first quarter 2013, which is $3,757, or 25.5%, higher than the prior-year quarter effective dayrates. During April 2013, Hornbeck sold two of its five stacked, relatively lower-horsepower tugs, the 3,900HP “Atlantic Service” and 4,000BHP “Brooklyn Service” brokered through the auspices of Marcon International (see page 4). Hornbeck Tug & Tank Barge Quarterly Utilization and Day Rates

No. Tank Barges Fleet Cap. (k bbl) Barge Size (bbl) Utilization Avg. Dayrate

2013 31-Mar 9 884.6 98,291 95.70% $19,338

31-Dec 9 884.6 98,291 99.30% $17,694

2012 30-Sep 30-Jun 9 9 884.6 884.6 98,291 98,291 93.40% 74.60% $16,626 $16,284

31-Mar 9 884.6 98,291 85.40% $17,271

31-Dec 9 884.6 98,291 87.30% $18,176

2011 30-Sep 30-Jun 9 9 884.6 884.6 98,291 98,291 92.00% 90.60% $18,222 $17,333

2010 31-Mar 9 884.6 98,291 82.30% $16,377

31-Dec 9 884.6 98,291 85.60% $16,782

30-Sep 9 884.6 98,291 86.90% $18,615

30-Jun 9 884.6 98,291 74.20% $18,708

Note: As of 9/30/09, above only includes the double-hulled tank barges. All single-hulled tank barges have been stacked and excluded from above computations.

As of May 1, 2013, excluding inactive non-core vessels, Hornbeck's operating fleet consisted of 50 new generation OSVs, four MPSVs, nine double-hulled tank barges and nine ocean-going tugs. During April 2013, Hornbeck sold one of its six 220 class DP-1 new generation OSVs, the 1999 built “HOS Mariner” to Skansi Marine LLC of New Orleans. The 220’ x 46’ x 13.9’ draft, U.S. flag vessel was renamed “SVO Mariner” by her new Owners. Hornbeck's active Upstream Fleet for fiscal years 2013 and 2014 is expected to be comprised of an average of 51.1 and 62.0 new generation OSVs, respectively. These active new generation OSVs are comprised of an average of 24.1 term vessels that are currently chartered on long-term contracts and an average of 27.0 spot vessels that are currently operating or being offered for service under short-term charters. As of May 1, 2013, Hornbeck also has one remaining stacked 220 class DP-1 new generation OSV, which is expected to be reactivated during the second quarter of 2013. Hornbeck expects to operate a total of four MPSVs in each of the fiscal years 2013 and 2014. Hornbeck's active Downstream fleet for fiscal years 2013 and 2014 is expected to consist of nine double-hulled tank barges and nine-ocean going tugs. Hornbeck's forward contract coverage for its nine-vessel fleet of double-hulled tank barges for the remainder of fiscal 2013 is currently 60%. Effective dayrates for Hornbeck's nine double-hulled tank barges are now projected to be in the range of $18,000 to $19,000 for the full-year 2013. Hornbeck expects that its maintenance capital expenditures for its company-wide fleet of vessels will approximately $61.6 million and $52.6 million, respectively, for the full-years 2013 and 2014, respectively.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Kirby Corporation of Houston, Texas announced net earnings for the first quarter ended March 31, 2013 of $56.6 million compared with $50.9 million for the 2012 first quarter. Revenues for the 2013 first quarter were $558.8 million compared with $566.9 million for the 2012 first quarter. Joe Pyne, Kirby’s Chairman and Chief Executive Officer, commented, “We were pleased with our overall first quarter performance, the continued strength of our inland tank barge markets and particularly the improvement in our coastal tank barge markets where we are experiencing consistently improving equipment utilization and pricing. We continue to experience ongoing softness in our land-based diesel engine services market which we anticipate will continue through most of 2013. We are making inroads into transitioning United’s business to a service and remanufacturing model with an emphasis on servicing existing land-based oil service equipment.” Mr. Pyne continued, “I also want to comment on our Chief Executive Officer succession plan at Kirby. I have had the honor of serving as Kirby’s Chief Executive Officer since 1995. I have decided to step down as Chief Executive Officer early next year and have been in discussions with the Kirby Board of Directors regarding our intention to transition my Chief Executive Officer responsibilities to David Grzebinski, Kirby’s current Executive Vice President and Chief Financial Officer. I intend to remain as an active executive Chairman of the Board. Kirby is blessed with a very strong management team and dedicated employees, and I look forward to continuing to work with David and the Kirby management team in creating value for our shareholders.” Marine transportation revenues for the 2013 first quarter were $418.5 million compared with $336.0 million for the 2012 first quarter, and operating income for the 2013 first quarter was $89.3 million compared with $68.5 million for the 2012 first quarter. Inland marine transportation continued its strong performance with tank barge utilization consistently in the 90% to 95% range and favorable pricing trends. The demand for the transportation of petrochemicals, black oil, including crude oil, refined petroleum products and agricultural chemicals on the inland waterways remained strong and consistent with 2012. Coastal marine transportation continued to improve with tank barge utilization in the 90% range, a significant improvement over the 75% range reported in the 2012 first quarter, and a continued improvement over the 85% to 90% range reported for the 2012 fourth quarter, all leading to higher term and spot contract pricing. Coastal revenues represented 32% of the marine transportation 2013 first quarter revenues. The marine transportation segment’s 2013 first quarter operating margin was 21.3% compared with 20.4% for the first quarter of 2012. Kirby Marine Transportation Performance Measurements

Ton Miles (in millions) Revenue/Ton Mile (cents/tm) Towboats operated (average) Delay Days Avg. cost/gal. fuel consumed Tank barges active Coastwise & local tank barges Coastwise dry cargo barges Inland Bbl Cap.(mill) active Coastwise & local tank barges Bbl Cap.

2013 Q1

Q4

Q3

Q2

Q1

Q4

Q3

2011 Q2

Q1

Q4

2010 Q3

Q2

3,012 9.3 256 2,049 $3.25 844 82 7 16.9 6.3

2,957 9.5 253 1,479 $3.37 841 81 8 16.7 6.3

2,791 9.8 246 1,244 $3.10 853 53 4 16.9 3.7

3,194 8.3 239 1,164 $3.35 818 57 4 16.4 3.9

3,282 8.1 242 2,471 $3.16 806 58 4 16 3.8

3,392 7.7 239 1,721 $3.14 819 59 4 16.2 3.8

3,552 7.6 244 1,111 $3.27 837 57 4 16.3 3.8

3,241 7.9 247 1,964 $3.25 837

3,229 7.2 230 1,981 $2.65 829

3,317 6.7 220 1,498 $2.29 825

3,246 6.9 217 1,006 $2.17 850

3,336 6.7 221 1,446 $2.29 860

16.4

16.1

15.9

16.4

16.5

2012

Ton Miles indicate fleet productivity by measuring the distance in miles a loaded tank barge is moved. Example: A typical 30,000 barrel tank barge loaded with 3,300 tons of liquid cargo is moved 100 miles, thus generating 330,000 ton miles. Marine transportation revenues divided by (3) ton miles. Delay days measures lost time incurred by a tow (tow boat & tank barges) during transit including transit delays caused by weather, lock congestion & other navigational factors.

Commenting on the 2013 second quarter and full year market outlook and guidance, Mr. Pyne said, “….Our second quarter guidance assumes improved seasonal operating conditions in both our inland and coastal marine transportation markets. Inland fleet utilization is projected to remain in the 90% to 95% range, leading to continued favorable term and spot contract pricing. For our coastal fleet, second quarter utilization is projected to remain in the 90% range with continued favorable term and spot contract pricing. However, our results will be impacted by a heavy second quarter coastal fleet maintenance schedule….” Mr. Pyne further commented, “Our 2013 capital spending guidance range remains in the $190 to $200 million range, including approximately $115 million for the construction of 55 inland tank barges and three inland towboats, and approximately $10 million in progress payments on the construction of two new offshore integrated dry-bulk barge and tugboat units. The balance of $65 to $75 million is primarily capital upgrades and improvements to existing inland and coastal marine equipment.”

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72

Marcon International, Inc. Tug Boat Market Report – May 2013

Tidewater Inc. of New Orleans, reported fourth quarter earnings for the period ended March 31, 2013, of $46.6 million on revenues of $328.3 million. For the year ended March 31, 2013, net earnings were $150.8 million on revenues of $1,244.2 million as compared to $87.4 million on revenues of $1,067.0 million the year prior. The price of crude oil decreased dramatically during the beginning of the fiscal year and subsequently rebounded due to better than anticipated economic news from China and several other developing countries, as well as the less-than-expected deceleration of the U.S. economy, primarily attributable to positive developments in housing and labor markets. There are, however, risks to the tenuous recovery such as continued contraction in Eurozone markets, which based on recent political events suggest that the sovereign debt crisis could continue to have negative effects on the global economy for the upcoming year, as well as continued tensions in the Middle East and North Africa. Looking forward, some economists believe that oil demand for the upcoming year will be unchanged from 2012. There is significant growth expected from China and other developing countries while U.S. demand is expected to remain stable, however, there are also factors exerting significant downward pressure on demand forecasts, including the possibility that instability of the Euro may lead to a deeper recession in Europe and the failure of U.S. political leadership to agree on fiscal priorities. Tidewater anticipates that its longer-term utilization and day rate trends for its vessels will be correlated with demand for and the price of crude oil, which in April 2013, was trading around $97 per barrel for West Texas Intermediate (WTI) crude and around $110 per barrel for Intercontinental Exchange (ICE) Brent crude. High crude oil prices generally bode well for increases in drilling and exploration activity, which would support increases in demand for the company’s vessels, both in the various global markets and the deepwater sectors of the U.S. GOM. Throughout fiscal 2013, natural gas prices trended higher due to stronger heating demand than in prior year as well as unexpected decreases in production during winter months. Although higher in recent months, natural gas prices continue to be relatively weak due to the rise in production of unconventional gas resources in North America (in part due to increases in onshore shale production resulting from technological advancements in horizontal drilling and hydraulic fracturing) and the commissioning of a number of new, large, Liquefied Natural Gas exporting facilities around the world, which have contributed to an oversupplied natural gas market. Toward the end of fiscal 2013, the price of natural gas trended higher as a prolonged and colder than expected winter increased demand. As of the end of March 2013, natural gas was trading in the U.S. at approx. $4.00 per Mcf which is up from approx. $1.80 per Mcf in March 2012. Oversupplied natural gas inventories in the U.S. continue to exert downward pricing pressures on natural gas prices in the U.S. Prolonged periods of oversupply of natural gas (whether from conventional or unconventional natural gas production or gas produced as a byproduct of crude oil production) will likely continue to suppress prices for natural gas, although over the longer term, relatively low natural gas prices may also lead to increased demand for the resource. High onshore gas production along with a prolonged downturn in natural gas prices can negatively impact the offshore exploration and development plans of E&P companies, which in turn, would suppress demand for offshore support vessel services, primarily in the Americas segment (specifically Tidewater’s U.S. operations where natural gas is the more prevalent exploitable hydrocarbon resource).

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73

Marcon International, Inc. Tug Boat Market Report – May 2013

According to IHS-Petrodata, the global offshore supply vessel market at the end of March 2013 had 433 new-build offshore support vessels (platform supply vessels, anchor handlers and towing-supply vessels only) under construction, most of which are expected to be delivered worldwide within the next two and one half years. As of the end of March 2013, the worldwide fleet of these classes of vessels is estimated at 2,903 vessels, of which Tidewater estimates more than 10% are stacked. An increase in worldwide vessel capacity would tend to have the effect of lowering charter rates, particularly when there are lower levels of exploration, field development and production activity. The worldwide offshore marine vessel industry, however, also has a large number of aged vessels, including approximately 741 vessels, or 26%, of the worldwide offshore fleet, that are at least 25 years old and nearing or exceeding original expectations of their estimated economic lives. These older vessels, approximately one-third of which Tidewater estimates are already stacked, could potentially be removed from the market within the next few years if the cost of extending the vessels’ lives is not economically justifiable. Although the future attrition rate of these aging vessels cannot be determined with certainty, Tidewater believes that the retirement of a sizeable portion of these aged vessels could mitigate the potential combined negative effects of new-build vessels on vessel utilization and vessel pricing. Additional vessel demand could also be created by the addition of new drilling rigs and floating production units that are expected to be delivered and become operational over the next few years, which should help minimize the possible negative effects of the new-build offshore support vessels being added to the offshore support vessel fleet. At March 31, 2013, Tidewater had 316 owned or chartered vessels (excluding joint-venture vessels and vessels withdrawn from service) in its fleet with an average age of 12.6 years. The average age of 232 newer vessels in the fleet (defined as those that have been acquired or constructed since calendar year 2000 as part of Tidewater’s new build and acquisition program) is 6.2 years. The remaining 84 vessels, of which 51 are stacked at fiscal yearend, have an average age of 30.1 years. During fiscal 2013 and 2012, Tidewater’s newer vessels generated $1,128 million and $911.5 million, respectively, of consolidated revenue and accounted for 98%, or $507.8 million, and 86%, or $386.1 million, respectively, of total vessel margin (vessel revenues less vessel operating costs). Vessel operating costs exclude depreciation on Tidewater’s new vessels of $127.5 million and $111.6 million, respectively, during the same comparative periods. Tidewater’s revenue during fiscal 2013 increased $177.2 million, or 17%, over the revenues earned during fiscal 2012 and were primarily attributable to increases in demand in certain markets and the additions of new vessels delivered or acquired during the current fiscal year. Tidewater’s consolidated net earnings also increased 73%, or $63.3 million during fiscal 2013 partially due to a $30.9 million non-cash goodwill impairment charge ($22.1 million after-tax) recorded during the second quarter of fiscal 2012 on Tidewater’s Middle East/North Africa. Americas-based vessel revenues increased approx. 1%, or $2.5 million, during FY 2013 compared to FY 2012. Although Americas-based vessel revenue increased modestly during comparative periods, increases in revenues generated by deepwater vessels were offset by lower revenues generated by towing-supply/supply and other vessel classes. Revenues on deepwater vessels increased 22%, or $32.1 million, during comparative periods, due to a 10% increase in average day rates, and increased number of deepwater vessels operating in the area as a result of newly 74

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Marcon International, Inc. Tug Boat Market Report – May 2013

delivered vessels and because deepwater vessels transferred into the Americas from other segments. Revenue from towing-supply/supply vessels decreased 16%, or $23.0 million, during the same periods, due to fewer towingsupply/supply vessels operating in the Americas as a result of vessels stacked during the fiscal year. Revenue for other vessel classes decreased $6.6 million, or 20%, due to a fewer number of other vessels operating in this segment due to vessel sales. Total utilization rates for Americas-based vessels increased two percentage points, during FY 2013 compared to FY 2012; however, this increase is partially a result of the sale of 25 older, stacked vessels from the fleet with a significant number of those vessels sold near the end of fiscal 2012. Vessel utilization rates are calculated by dividing the number of days a vessel works by the days the vessel is available to work. As such, stacked vessels depressed utilization rates during comparative periods because stacked vessels are considered available, and as such, are included in calculation of utilization rates. Within the Americas, Tidewater continued to stack, and in some cases, dispose of, vessels that could not find attractive charters. At the beginning of fiscal 2013, Tidewater had 21 Americas-based stacked vessels. During fiscal 2013, Tidewater stacked seven additional vessels, reactivated one and sold one from the previously stacked vessel fleet, resulting in a total of 26 stacked Americas-based vessels as of March 31, 2013. Asia/Pacific-based vessel revenues increased approx. 20%, or $30.2 million, during FY 2013 compared to FY 2012, primarily due to higher revenues earned on the deepwater vessels. Revenues on deepwater vessels increased $20.6 million, or 27%, during the comparative periods, due to a 22% increase in average date rates and a 10 percentage point increase in utilization rates, respectively. Increases in average day rates for deepwater vessels were primarily due to addition of newer vessels in the segment and renewal of contracts at higher rates. Also, revenue on towingsupply/supply vessels increased $10.4 million, or 14%, due to a 12 percentage point increase in utilization rates. Increases in utilization for these vessel classes was the result of under-utilized vessels in the segment put to work following resolution of delays on certain customer projects at end FY 2012. Increases in average day rates for deepwater vessels were primarily due to addition of newer vessels in the segment and renewal of contracts at higher rates. Within the Asia/Pacific segment, Tidewater also continued to dispose of vessels that could not find attractive charters. At the beginning of FY 2013, Tidewater had 16 Asia/Pacific-based stacked vessels. During fiscal 2013, Tidewater sold seven vessels from the previously stacked vessel fleet, resulting in a total of nine stacked Asia/Pacific-based vessels as of March 31, 2013. Middle East/North Africa-based vessel revenues increased approx. 37%, or $39.9 million, during FY 2013 compared to FY 2012. Increases are primarily attributable to increases in revenues from towing-supply/supply vessels of 58%, or $33.0 million, during the comparative period, due to a 16 percentage point increase in utilization and 31% increase in average day rates, resulting from resolution of delays in acceptance of and cancellations of other vessels as part of a multi-vessel package committed to charter contracts with one customer in the Mid-East. In addition, deepwater vessel revenue increased 20%, or $9.4 million, during the same periods, due to a 13% increase in average day rates due to replacement of older vessels in the area, whose demand had decreased, with newer, more sophisticated vessels that have greater capabilities that Tidewater’s customers demand. Beginning FY 2013, Tidewater had seven Middle East/North Africa-based stacked vessels. During FY 2013, Tidewater stacked one additional vessel and sold two vessels from the previously stacked vessel fleet, resulting in a total of six stacked Middle East/North Africa-based vessels as of March 31, 2013.

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75

Marcon International, Inc. Tug Boat Market Report – May 2013

Sub-Saharan Africa/Europe-based vessel revenues increased approx. 21%, or $96.8 million, during FY 2013 compared to FY 2012. Revenues attributable to deepwater vessels increased 37%, or $73.8 million, during the same periods, due to a 16% increase in average day rates. Towing-supply/supply vessel revenue increased 14%, or 27.4 million due to a 9% increase in average day rates and an 11 percentage point increase in utilization. Average day rates on deepwater vessels and towing-supply/supply vessels increased due to replacement of older vessels in the area with newer more sophisticated vessels with greater capabilities that are in demand, as well as the annual renewal of certain contracts at higher day rates. Total utilization rates for the Sub-Saharan Africa/Europe-based vessels increased four percentage points during FY 2013 compared to FY 2012; however, this increase is partially a result of the sale of 21 older, stacked vessels from the Sub-Saharan/Europe-based vessel fleet during this two year period. Within the Sub-Saharan Africa/Europe segment, Tidewater continued to stack, and in some cases dispose of vessels that could not find attractive charters. At the beginning of FY 2013, Tidewater had 23 Sub-Saharan Africa/Europe based stacked vessels. During fiscal 2013, Tidewater stacked five additional vessels and sold 18 vessels from the previously stacked vessel fleet, resulting in a total of 10 stacked Sub-Saharan Africa/Europe-based vessels as of March 31, 2013. At March 31, 2013, Tidewater had six 7,100BHP towing-supply/supply vessels under construction at an international shipyard, for a total expected cost of $112.9 million. The vessels are expected to be delivered beginning July 2014 with final delivery of the last vessel in April 2015. As of March 31, 2013, Tidewater had invested $28.0 million for these vessels. Tidewater is also committed to construction of six 246’, one 261’, ten 275’ and two 300’ deepwater PSVs for a total estimated cost of $562.8 million. The 261’ deepwater class vessel is being constructed at a U.S. shipyard and a different U.S. shipyard is constructing two 300’ deepwater PSVs. Two different international shipyards are constructing four and six 275’ deepwater PSVs, respectively, and a two other international shipyards are constructing two and four 246’ deepwater PSVs, respectively. The 261’ deepwater platform supply vessel has an expected delivery in April 2014. The ten 275’ deepwater class vessels are expected to be delivered beginning January 2014, with final delivery of the tenth vessel in April 2015. Tidewater expects to take delivery of the first of six 246’ deepwater PSVs in March 2014 with delivery of the sixth vessel in August 2015. The two 300’ deepwater class vessels are scheduled for delivery in August and November 2013. As of March 31, 2013, $156.6 million was invested in these 19 vessels. Two vessels under construction at a domestic shipyard have fallen substantially behind the original delivery schedule. The shipyard previously notified Tidewater that the yard should be entitled to later delivery dates and an increase in the contract price for both vessels because Tidewater was late in completing and providing detailed design drawings, developed for Tidewater by a third party designer. While Tidewater believes that other factors also contributed to the delay, Tidewater and the shipyard reached an agreement during the quarter ended September 30, 2012 which include an increase in the contract price of each vessel, one or more change orders for each hull, among other modifications to contract terms and the extension of delivery dates of the two vessels by approx. seven and eight months, respectively. During fiscal 2013, Tidewater disposed of 32 vessels, including 15 AHTSs and nine PSVs. Eight of the 32 vessels were disposed from the Asia/Pacific fleet, two were from the Americas fleet, 19 were from the Sub-Saharan Africa/Europe fleet and three from the Middle East/North Africa fleet. During the same period 2012, Tidewater disposed of 60 vessels, including 40 AHTSs and 11 PSVs. Tidewater took delivery of eleven newly-built vessels and acquired seven vessels from third parties. Seven of the delivered vessels are deepwater PSVs, six of which are 286’ in length and one is 249’ in length. The six 286’ PSVs were constructed at an international shipyard for a total aggregate cost of $175.9 million. The 249’ PSV was built at a different international shipyard for $19.2 million. Tidewater also took delivery of two AHTS vessels that have 8,200BHP. These two vessels were constructed at an international shipyard for a total aggregate cost of $47.6 million. Tidewater also took delivery of two waterjet crewboats at an international shipyard for $6.0 million. In addition, Tidewater acquired six deepwater PSVs for a total cost of $170.0 million (which range between 220’ to 250’ in length) and one towing-supply/supply class PSVs for a total cost of $13.0 million. In addition to the 18 deliveries noted, Tidewater acquired two additional towing-supply/supply class PSVs during fiscal 2013 which were originally taken delivery of, then sold and leased back during fiscal 2006 and 2007. Tidewater elected to repurchase these vessels from the lessors for an aggregate total of $17.2 million.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Quarterly Utilization and Average Day Rates for Tidewater Inc.

Utilization Americas Fleet Towing-Supply/Supply Offshore Tugs New Vessels Traditional Vessels Asia Pacific Fleet Towing-Supply/Supply Offshore Tugs New Vessels Traditional Vessels Mid-East / No. Africa Fleet Towing-Supply/Supply Offshore Tugs New Vessels Traditional Vessels Sub-Sahara Africa / Europe Towing-Supply/Supply Offshore Tugs New Vessels Traditional Vessels Average Day Rates Americas Fleet Towing-Supply/Supply Offshore Tugs New Vessels Traditional Vessels Asia Pacific Fleet Towing-Supply/Supply Offshore Tugs New Vessels Traditional Vessels Mid-East / No. Africa Fleet Towing-Supply/Supply Offshore Tugs New Vessels Traditional Vessels Sub-Sahara Africa / Europe Towing-Supply/Supply Offshore Tugs New Vessels Traditional Vessels Average Vessel Count Domestic Towing-Supply/Supply (includes stacked) Americas Fleet Towing-Supply/Supply (includes Tugs stacked) Offshore New Vessels (excludes stacked) Vessels (excludes Traditional stacked) International Towing-Supply/Supply (includes Tugs stacked) Offshore Asia Pacific Fleet Towing-Supply/Supply (includes Tugs stacked) Offshore New Vessels (excludes stacked) Traditional Vessels (excludes stacked) / No. Africa Fleet Mid-East Towing-Supply/Supply (includes Tugs stacked) Offshore New Vessels (excludes stacked) Traditional Vessels (excludes stacked) Sub-Sahara Africa / Europe Towing-Supply/Supply (includes Tugs stacked) Offshore New Vessels (excludes stacked) Vessels (excludes Traditional stacked)

2013 31-Mar

31-Dec

30-Sep

2012 30-Jun

31-Mar

31-Dec

30-Sep

2011 30-Jun

31-Mar

31-Dec

2010 30-Sep

30-Jun

48.00%

48.00%

48.20%

53.40%

84.70% 33.20%

82.80% 37.90%

79.80% 36.10%

85.30% 41.80%

53.10% 38.70% 87.30% 41.30%

54.20% 23.60% 90.10% 37.70%

42.90% 19.30% 85.60% 36.20%

43.30% 20.00% 86.80% 35.10%

48.30% 20.00% 87.40% 36.10%

41.00% 16.40% 83.40% 30.20%

42.70% 17.00% 84.70% 31.10%

39.30% 16.80% 82.00% 29.20%

54.50%

52.40%

52.20%

54.90%

82.50% 0.00%

85.70% 0.00%

84.20% 0.00%

93.60% 0.00%

43.10% 100.00% 81.00% 10.40%

43.80% 100.00% 83.10% 10.20%

36.30% 100.00% 69.80% 8.20%

42.50% 100.00% 80.80% 16.80%

43.50% 100.00% 79.30% 22.00%

46.80% 100.00% 79.70% 31.70%

46.50% 100.00% 69.70% 34.00%

49.70% 100.00% 87.80% 37.60%

74.70%

80.10%

71.20%

77.20%

83.80% 37.60%

89.40% 34.40%

84.80% 37.50%

89.50% 46.00%

73.30% 50.00% 83.90% 55.90%

59.20% 50.00% 68.20% 59.60%

49.70% 50.00% 58.60% 55.90%

57.60% 63.20% 69.10% 54.30%

66.60% 58.80% 79.70% 61.30%

72.50% 59.70% 93.00% 59.70%

71.70% 60.00% 87.70% 63.40%

64.80% 59.60% 70.20% 66.20%

73.30%

66.90%

67.80%

60.30%

83.30% 31.90%

79.00% 39.70%

86.80% 36.70%

83.70% 31.60%

55.60% 72.60% 82.20% 32.10%

58.10% 69.00% 84.80% 36.10%

55.80% 60.80% 86.80% 33.70%

57.90% 62.00% 88.00% 33.80%

60.00% 60.30% 87.80% 35.80%

62.50% 73.30% 89.70% 41.70%

62.60% 66.10% 89.80% 41.60%

63.20% 74.60% 88.20% 45.20%

$14,330

$13,721

$14,103

$14,135

$21,330 $9,290

$21,022 $7,913

$20,771 $8,203

$19,119 $8,318

$13,704 $9,613 $19,096 $8,851

$13,812 $8,525 $18,863 $8,655

$14,786 $6,318 $19,469 $8,650

$14,031 $6,332 $18,849 $9,958

$14,411 $6,341 $18,400 $10,115

$13,741 $6,342 $20,078 $9,757

$13,603 $6,383 $20,073 $10,264

$13,005 $6,345 $20,247 $10,416

$13,976

$12,592

$12,663

$14,229

$21,024 $0

$18,779 $0

$20,109 $0

$19,384 $0

$13,751 $10,000 $20,247 $3,642

$12,836 $9,709 $17,395 $3,749

$11,974 $9,236 $15,028 $3,953

$12,519 $9,709 $16,716 $4,232

$12,688 $9,709 $18,332 $5,195

$12,305 $9,426 $18,880 $5,769

$12,917 $9,426 $20,235 $6,361

$12,117 $9,426 $19,503 $6,320

$12,689

$12,020

$9,857

$9,812

$15,172 $10,055

$14,310 $9,707

$12,453 $7,179

$12,388 $7,186

$8,992 $5,194 $11,657 $7,377

$8,604 $5,127 $12,337 $7,174

$8,513 $5,117 $13,562 $6,759

$7,738 $5,302 $12,496 $6,259

$7,693 $5,235 $12,325 $6,414

$7,595 $5,226 $11,028 $6,442

$7,522 $5,262 $10,983 $6,591

$7,401 $5,205 $13,526 $6,835

$14,996

$14,318

$15,721

$13,572

$15,905 $8,239

$14,783 $8,313

$15,332 $8,773

$13,680 $8,331

$13,479 $6,705 $14,098 $8,353

$13,004 $6,620 $12,921 $8,226

$12,665 $6,751 $12,134 $8,313

$12,812 $7,110 $11,907 $7,970

$11,848 $6,836 $11,077 $7,537

$11,563 $6,930 $11,022 $7,274

$11,784 $6,541 $11,164 $7,268

$12,306 $6,528 $11,506 $7,319

24 48

48

50

50

43 18

45 19

46 19

43 21

57 5 41 24

52 6 42 24

57 5 41 26

65 5 39 30

70 6 39 31

70 6 45 35

70 6 45 33

42 42 200 27

27

32

33

36

28 0

28 0

29 0

31 1

30

30

29

29

34 5

32 6

28 8

27 8

58

62

65

66

124 13

119 14

114 14

115 15

38 1 32 1

37 1 30 3

40 1 30 3

38 1 27 3

42 1 30 6

44 1 32 10

43 1 27 4

23 18

31 6 27 9

29 6 27 11

30 6 25 13

33 6 24 17

30 6 18 20

30 6 14 22

31 6 15 22

11 23

74 13 113 18

72 12 105 20

76 13 102 23

79 13 104 23

82 14 103 27

83 14 99 29

83 14 97 32

94 36

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

77

Marcon International, Inc. Tug Boat Market Report – May 2013

Rand Logistics, Inc. of New York total revenue increased by 6.0% to $156.6 million from $147.8 million for their fiscal year ending March 31st 2013. This increase was primarily attributable to higher freight revenue, partially offset by reduced fuel surcharges and effect of the slightly weaker Canadian dollar. This includes results for the fiscal fourth quarter, in which, due to the closing of the canal system and winter weather conditions on the Great Lakes, the majority of the Rand Logistics’ fleet does not operate. In addition, repair and maintenance costs are incurred in the fiscal fourth quarter to prepare for the upcoming sailing season. As a result, fiscal fourth quarter operating results are significantly lower than for the first three quarters of the fiscal year. Marine freight revenue (excluding fuel & other surcharges, and outside charter revenue) increased by 9.5% to $117.8 million from $107.6 million. The increase was primarily attributable to contractual price increases and 201 net additional sailing days primarily due to two vessels introduced in the 2012 sailing season. Marine freight revenue per Sailing Day increased by 3.8% to $30,035 from $28,922. This increase was offset by certain delivery pattern inefficiencies and an approx. 34% decrease in salt tonnage hauled due to an abnormally dry 2012 winter in the Great Lakes region. Laurence Levy, Executive Chairman of Rand, commented, “As we have previously discussed, operating incidents on two of our vessels in addition to a nominal contribution from the two vessels we acquired in the third quarter of fiscal 2012 adversely impacted fiscal 2013 results. In the aggregate, however, the operating results of our remaining 12 vessels exceeded their budget and vessel margin per day on all 16 vessels equaled $10,697, the second highest in the Company’s history. During fiscal 2013, management has implemented certain action items which included completing the rebuild and expansion of the engineering team in response to the growth of the fleet, implementing and reinforcing a number of best practice operating protocols and designing an incentive program tied to minimizing operating incidents. In light of the disappointing performance, no bonuses were payable for fiscal 2013, compensation for the senior executive team was reduced and base salary increases were capped at no more than 2% in fiscal 2014.” Scott Bravener, President of Lower Lakes, stated, “We have begun to see marked improvements in the operating performance of our fleet in the current sailing season, which we believe is the result of many of the changes in operating procedures that have been implemented over the past couple of years. For the period ended May 31, 2013, we have not lost any sailing days due to incidents compared to 49 lost days for the comparable period last season. Vessel operating delays due to mechanical issues declined by 49%, or 16.3 days, versus the comparable period last year. The decrease in vessel operating delays, however, has been offset by higher than anticipated weather and traffic delays versus the same period one year ago.” Laurence Levy concluded, “We believe that fiscal 2014 is off to a solid start. Looking ahead, we are targeting key business opportunities that are well suited to our fleet, allow for future growth, and will be accretive to our profitability. Notwithstanding the challenges that we faced over the past year, the fundamentals of our business remain intact, including our efficient operating structure, our nonduplicatable asset portfolio and our extensive customer network….” Through its subsidiaries, Rand Logistics operates a fleet of four conventional bulk carriers and twelve self-unloading bulk carriers including four tug/barge units. 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 vessels operate under the U.S. Jones Act – which reserves domestic waterborne commerce to vessels that are U.S. owned, built and crewed, – and the Canada Coasting Trade Act – which reserves domestic waterborne commerce to Canadian registered and crewed vessels that operate between Canadian ports. (5,600BHP AT/B tug “Invincible” at right purchased through auspices of Marcon International, Inc. in 2000 & mated to the 19,000dwt self-unloading barge “McKee Sons” above.).

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

78

Marcon International, Inc. Tug Boat Market Report – May 2013

In December, Tidewater Barge Lines of Vancouver, Washington announced new joint ownership with Stonepeak Infrastructure Partners, in which Tidewater Holdings remains operating partner for its two subsidiaries, Tidewater Barge Lines and Tidewater Terminal Company. Stonepeak, a middle-market infrastructure investment firm with a focus on power, renewable energy, utilities, transportation and water, replaces Portland based Endeavour Capital as the major equity investor in Tidewater. The terms of the transaction were not disclosed. “The Tidewater management team is excited about our new partnership with Stonepeak,” said Dennis McVicker, President and CEO of Tidewater Holdings. “When considering investment partners and strategic plans for the company, the management team’s top priority is to ensure our customers continue to see the same high-quality service that Tidewater has delivered for 80 years.” He added, “Not only will our employees have continued job security, but we also expect this partnership will allow us to pursue new business opportunities that will benefit both the company and the region.” Tidewater, founded in 1932, has evolved into a multi-commodity transportation and terminal company serving the diverse and evolving transportation needs of the Pacific Northwest. Headquartered in Vancouver, the company’s operating area spans 465 miles on the Columbia & Snake River system extending from the Port of Astoria on the Oregon coast to the inland Port of Lewiston in Idaho. “Tidewater is the premier inland marine transportation company in the Pacific Northwest,” said Michael Dorrell of Stonepeak Partners. “This partnership provides us with a unique and exciting opportunity to add an outstanding company to our investment portfolio. We look forward to being a part of Tidewater’s legacy and growth.” Trinity Industries of Dallas, Texas, reported net income of $79.1 million for the first quarter ended March 31, 2013. Trinity reported net income from continuing operations of $72.2 million for the first quarter. Net income from continuing operations for the same quarter of 2012 was $52.4 million. Current year net income from discontinued operations totaled $6.6 million, including a $7.0 million after-tax gain on the sale of Trinity's remaining ready-mix operations. Prior year first quarter results benefitted from a lower effective tax rate of 32.9% due to the settlement of certain tax audits. Revenues for the first quarter of 2013 increased 4% to $932.9 million compared to revenues of $896.2 million for the same quarter of 2012. Trinity reported an operating profit of $159.5 million in the first quarter of 2013, a 30% increase compared to an operating profit of $122.7 million for the same quarter last year. “I am pleased with our strong financial results for the first quarter,” said Timothy R. Wallace, Trinity's Chairman, CEO and President. “Our performance was positively impacted by our ability to align our manufacturing capacity with the strong demand for our products that serve the oil, gas, and chemical industries. Our employees are doing an outstanding job of converting production capacity to meet customer needs for products that support these industries. Demand for railcars that serve the oil, gas, and chemical industries in North America surged during the first quarter contributing to a record backlog for the Rail Group of $5.1 billion. We achieved additional operating efficiencies during the quarter, most noticeably in the Rail Group. Our Energy Equipment Group continued to show solid improvement during the first quarter as our wind towers facilities operated at more efficient levels than last year.” The Inland Barge Group reported revenues of $147.4 million compared to revenues of $169.4 million in the first quarter of 2012. Operating profit for this Group was $24.3 million in the first quarter of 2013 compared to $30.0 million in the first quarter of 2012. The decrease in revenues and operating profit was due to lower volumes for hopper barges during the quarter. Prior year operating profit included a $3.4 million net gain from the sale of leased barges to third parties. During the first quarter of 2013, the Inland Barge Group received orders of $66 million, and as of March 31, 2013 had a backlog of $483 million compared to a backlog of $564 million as of December 31, 2012. Conrad Industries, Inc. announced that for the quarter ended March 31, 2013, Conrad achieved net income of $5.9 million compared to net income of $3.2 million during the first quarter of 2012. Conrad’s backlog was $125.5 million at March 31, 2013 compared to $120.7 million at December 31, 2012 and $70.8 million at March 31, 2012. Conrad Industries, Inc., established in 1948 and headquartered in Morgan City, Louisiana, designs, builds and overhauls tugboats, ferries, liftboats, barges, offshore supply vessels and other steel and aluminum products for both the commercial and government markets. The company provides both repair and new construction services at its four shipyards located in southern Louisiana and Texas.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

79

Marcon International, Inc. Tug Boat Market Report – May 2013

Recent News – Latin America & Caribbean In the first quarter of 2013 Tsavliris Salvage Group was kept busy with the 47,984dwt, Italian-flagged bulk carrier "RBD Italia" laden with 43,380.86 metric tons of grain (sunflower seeds, soya bean meal, soya bean pellets, etc.), which grounded at KM 452, Rio Parana, in the vicinity of San Lorenzo, on Wednesday 30th January. Tsavliris’ salvage master boarded the 229.0m x 36.8m x 19.9m depth casualty on the same day and refloating attempts, by using ship's engine and rudder, commenced but with no success. Trans Ona SAMCIF’s 30.4m, 4,500BHP ASD tug "Ona Don Lorenzo" and La Plata Remolques 33.0m, 3,300HP tug "Luciano B" were promptly mobilized from La Plata and Buenos Aires respectively, to the assistance of the casualty. Attempts to refloat the vessel were immediately undertaken once the Argentine flagged tugs arrived on the scene. Local company Osro was engaged to provide anti-pollution services. On the same day the "RBD Italia" was successfully refloated and anchored at San Lorenzo roads. Both tugs remained alongside providing standby services. On the 2nd February, mandatory post grounding inspection by the Coastguard and diving inspection on behalf of Class, were performed. Certificate of Safe Delivery was signed and following clearance by the Authorities the vessel sailed same day. The two tugs demobilized towards Buenos Aires providing shadow escort. The 205 ton bollard pull tugs “Fairmount Sherpa” and “Fairmount Expedition” towed the drilling rig “Noble Max Smith” from the Gulf to Brazil. Both tugs hookedup in Pascagoula Mississippi, USA. For this job the 16,320BHP “Fairmount Sherpa” and “Fairmount Expedition” mobilized to the departure location from their previous projects. “Fairmount Sherpa” had just delivered Atwood Oceanics deepwater 118.1m x 91.2m semisubmersible rig “Atwood Condor” in Trinidad after a speedy crossing of the turbulent waters around Cape of Good Hope and the Atlantic. “Fairmount Expedition” was involved in the successful salvage of the illfated 300.0m x 40.0m x 24.2m, 6,732 TEU container vessel “MSC Flaminia”. Upon completion of this project she was prepared in Rotterdam for the towage of the 106m x 100m x 4.8m transit draft rig “Noble Max Smith” and mobilized just in time for the departure from Pascagoula. The “Noble Max Smith” is a EVA-4000 4th generation semi-submersible drilling rig owned by Noble Corporation and contracted by Shell for a drilling campaign offshore Brazil over a three year period. Prior to this the rig was prepared at a shipyard in Pascagoula Mississippi, USA. First the convoy set sail towards Bridgetown, Barbados, for a stop-over for replenishment of the tugs and the rig. The tugs received first their bunkers and fresh provisions and secondly the “Noble Max Smith” received fresh provisions and stores. For this both “Fairmount Sherpa” and “Fairmount Expedition” were used. As such they did multiple cargo runs to and from the “Noble Max Smith”. Not only during the first part of the voyage to Bridgetown, but also during a large part of the second leg of the journey counter currents were experienced. Nonetheless the Fairmount Class tugs showed their unbridled towing power and endurance. As such the “Noble Max Smith” was safely delivered in Niterói. Upon arrival offshore Niterói, “Fairmount Expedition” assisted in mooring of the rig into position. Directly after delivery tugs “Fairmount Sherpa” and “Fairmount Expedition” were prepared for their next assignments. “Fairmount Glacier” delivered rig “La Muralla IV” in Bay of Campeche, Mexico. The rig was towed from Okpo, South Korea, via Sunda Strait and Cape of Good Hope. “La Muralla IV” is a brand new semi-submersible drilling rig for ultra-deep water operations, owned by Mexican Grupo R. The rig was constructed by Daewoo Shipbuilding & Marine Engineering in South Korea. “La Muralla IV” is designed to drill up to depths of 10,000m and has a length of 118.6m and width of 96.7m. “Fairmount Glacier” hooked-up with the rig at the end of October last year offshore the port of Okpo, South Korea. The convoy sailed via Sunda Strait en Cape of Good Hope towards the Gulf of Mexico, where it arrived at the end of February after covering a distance of over 16,200 miles with an average speed of 6.6 knots. During the voyage bunker stops were made in Singapore, Mauritius, Walvis Bay and Curacao. At Mauritius “Fairmount Glacier” performed several runs between the port and “La Muralla IV” to transfer cargo and crew.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

80

Marcon International, Inc. Tug Boat Market Report – May 2013

Fairmount Marine’s 200 ton bollard pull tug “Fairmount Sherpa” safely delivered the rig “GSF Arctic I” in Las Palmas after a tow from offshore Rio de Janeiro, Brazil, to Las Palmas de Gran Canaria, Spain. “GSF Arctic I” is a semi-submersible drilling rig for deepwater operations, owned by Houston based Transocean. “GSF Arctic I” is designed to drill up to depths of 10,000m. The rig is 78 meters long and 61 meters wide. The voyage covered a distance of almost 4,000 miles across the Atlantic Ocean with an average speed of 4.1 knots, the destination offshore Las Palmas was reached. Upon arrival offshore Las Palmas de Gran Canaria, “Fairmount Sherpa” performed anchor handling activities for the “GSF Arctic I”, mooring her on her eight anchors. Once the rig was safely anchored and moored, the “Fairmount Sherpa” was thanked for her services. Boluda Towage and Salvage tugs assisted the marine joint venture of Volker Construction International and Dragamex (Boskalis) in maneuvering and sinking of tunnel elements of the Coatzacoalcos tunnel in the Port of Coatzacoalcos, Mexico. The tunnel is being constructed under the Río de Coatzacoalcos separating the city center and harbor terminals, connecting the city's infrastructure to the terminals and petrochemical complexes. It will be the first immersed tunnel to be constructed in the whole of Latin America and it will reach a depth of more than 30m below the water surface. The first Tunnel Element was transported together with the tugs and the port pilots from the dry dock to the immersion location, turned from the dry dock into the navigation channel of the river, and towed to the dredged tunnel trench. Above the trench, it was turned 90 degrees to reach a position parallel to the trench, from which immersion could be started. The transport operation of the Tunnel Element had to be accurately planned on the tides, because of the critical current velocities in the tropical Coatzacoalcos river. The Tunnel Element was turned above the trench precisely at high water and minimum currents. The transport operation was a success. Positioning and ballasting of the Tunnel Element followed. After ballasting, the element was immersed and sunk to the bottom of the river. The VolkerCI Team was able to position and land the Tunnel element accurately on the gravel bed, which was constructed before immersion with very small tolerances in the trench, below the river bottom, so that the Tunnel Element could be connected to the ramp in the village of Allende. After touch down, the door of the bulkhead of the tunnel could be opened. More than 50 people of the Mexican Client were present in the ramp of Allende when the door was finally opened at 0400 local mean time, which was a large number of people considering the early hour. A cheer went up when the immersion joint proved to be watertight, followed by an applause at opening of the door. There could be no better end to the 70 hour long intensive operation for the Immersion team. During immersion, the newly developed set of immersion catamarans "Neptune & Calypso" proved to be functioning very well and stable, according to design. The new immersion equipment was developed by VolkerCI to be deployed at different tunnel projects all over the world. It is transported in parts in containers to Mexico, where it was assembled and tested on site. The tunnel runs for a total of 1,200 meters with 690 meters being located in the riverbed. This part consists of five concrete tunnel elements, each one of 138 meters long, 25 meters wide and 9.2 meters high. The tunnel accommodates 2 x 2 roadway lanes separated by an escape tunnel. Royal Boskalis Westminster N.V. signed a Memorandum of Understanding with Sudamericana Agencias Aereas y Maritimas S.A. for a joint harbor towage operation within the American Continent. The partnership would involve two joint ventures and is between Smit, a wholly owned subsidiary of Boskalis, and SAAM. The geographic scope of the first joint venture covers the Brazilian towage market. Both companies are currently active in Brazil and Boskalis with Smit will have a 51% majority share in this joint venture. The combination with a total of 41 tug boats will form an important player in the growing market of Brazil. The second joint venture in which SAAM will hold a 51% majority stake relates to the towage activities in Panama and Canada (Smit) and Mexico (SAAM). The combination will operate a total number of 55 tug boats. The joint operation between Smit and SAAM will create a leading provider of towage services in Central and South America. Besides operational synergies, the joint operations will also strengthen the market position of the combined companies.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

81

Marcon International, Inc. Tug Boat Market Report – May 2013

Grupo TMM, S.A.B. reported financial results for first quarter of 2013. José F. Serrano, chairman and chief executive officer of Grupo TMM, said, "In the 2013 first quarter, the Company´s offshore business continued to excel with 95.7% utilization, which produced increased revenue and operating profit in the 2013 first quarter compared to the 2012 first quarter. Likewise, Ports and Terminals revenue and operating profit improved in the current period compared to last year, mainly due increased auto exports at Acapulco, particularly South America bound, and to higher volumes at maintenance and repair." Serrano concluded, "We continue to work on several projects to grow TMM. Although this has taken longer than we originally anticipated, we estimate providing an update to our shareholders in the second half of 2013." Compared to the same period of last year, consolidated revenue in the 2013 first quarter increased 3.5% due to higher revenue at Maritime and Ports. First-quarter 2013 consolidated operating profit was $46.4 million pesos, declining 21.5% from $59.1 million pesos recorded in the first quarter of 2012. TMM’s Maritime Operations division, which brought in 65% of total revenues during the first quarter of this year, provides maritime transportation services, including offshore vessels providing transportation and services to the Mexican offshore oil industry, tankers transportation petroleum products within Mexican waters, parcel tankers transporting liquid chemical and vegetable oil cargoes from and to the United States and Mexico plus the sole concession for tugs providing towing and berthing services at the port of Manzanillo Mexico since January 1997. TMM’s five tugs reportedly service over 2,000 vessels per year. In March 2012, TMM also began providing tug services to a new LNG terminal at Manzanillo. TMM’s offshore vessels division, which contributed 62% during 2012 to marine revenues, operates a fleet of 27 OSVs, AHTSs, crewboats and firefighting vessels which have continued to report high utilization. Overall maritime revenue improved 4.8% in the 2013 first quarter compared to the same period last year, mainly due to a 7.9% revenue increase in offshore services, due to higher average daily tariffs, to having two additional vessels in the fleet as of the 2012 third quarter, and to improved utilization, which grew from 92.4% in the 2012 first quarter to 95.7% in the 2013 reported quarter. Since 1992 Grupo TMM has provided transportation of clean petroleum products for “Pemex Refinación” in cabotage trades and for third parties in international trades. Grupo TMM currently operates a fleet of five product and three chemical tankers. Parcel tanker revenue improved 26.1% due to higher volumes, and harbor towage revenue grew 9.3% due to an improved revenue mix attributable to the Liquefied Natural Gas, or LNG, services. This revenue improvement was partially offset by a 20.7% revenue decrease at product tankers, mainly attributable to having one unemployed vessel in the 2013 first quarter and to certain off hire days in between short-term contracts of another tanker. Also, in the 2013 first quarter, shipyard revenue declined 5.2% due to previously scheduled services that were deferred to the second quarter. Maritime operating profit improved 16.8% in the 2013 first quarter compared to the same period of last year mainly due to revenue increases at offshore and harbor tugs. Likewise, in the 2013 first quarter, operating margin increased to 20.8% from 18.6% in the 2012 first quarter. TMM’s five-year growth plan includes development of a container and liquids terminal at the Port of Tuxpan, Veracruz, where they own approx. 2,000 acres of land, to meet the demand for capacity in the Gulf of Mexico and addition of specialized offshore vessels to their fleet to meet increased demand for deepwater offshore services. TMM’s intent is to increase their offshore presence by taking advantage of the Mexican Navigation Law which grants priority to Mexican ship owners operating within Mexican domestic waters. TMM believes that the outlook for deep water drilling in the region is promising and that Mexico’s new energy reform will benefit their offshore business.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

82

Marcon International, Inc. Tug Boat Market Report – May 2013

Ultrapetrol (Bahamas) Limited, serving three markets (River Business, Offshore Supply Business and Ocean Business), recorded total revenue for first quarter 2013 of $77.9 million compared with $64.5 million in the same period 2012. Adjusted EBITDA for first quarter 2013 was $19.3 million compared to $7.3 million. Total adjusted net loss was $(0.2) million first quarter 2013 excluding effect of a $(3.6) million non-cash loss from debt extinguishments, $(0.2) million loss for deferred taxes on an unrealized foreign exchange gain in its Offshore Supply Business and includes a $1.8 million gain related to sale of ten dry barges leased back to Ultrapetrol. Before these effects, recorded total net loss was $(5.9) million. Cecilia Yad, Ultrapetrol's CFO, said, "During the first quarter, we posted improved financial results, while continuing to take important steps to increase our financial strength and flexibility for the benefit of shareholders. Specifically, we secured long-term financing for our four PSV newbuilds by entering into an $84.0 million loan agreement with DVB, NIBC and ABN Amro Bank. We appreciate the continued support we receive from leading banks, which highlight Ultrapetrol's leadership position and strong prospects. We also reduced our debt by repurchasing $80.0 million of outstanding convertible senior notes. With the recent cash infusion of $220.0 million, we significantly increased our liquidity and are well positioned to take advantage of future growth opportunities." Felipe Menéndez, Ultrapetrol's President and CEO, said, "We are pleased to report significantly improved results for the first quarter. Under normal operating conditions we believe that 2013 will show the strength of the investment strategy that we developed in the past few years. As the new assets come into service and new higher prices come into effect in our various segments our results will reflect the growth and margin improvements that we were anticipating. During the first quarter, we continued to increase our Offshore Supply fleet as planned. Our recently delivered PSV, ‘UP Amber’, is expected to arrive in Brazil next week, while the first of the remaining two vessels under construction in India, ‘UP Pearl’, is expected to be delivered by June 2013. In addition, we confirmed four-year time charters for ‘UP Amber’ and ‘UP Pearl’ and extended the charter for ‘UP Esmeralda’ for another four years. The fundamentals of the offshore market, and specifically the Brazilian market, continue to be strong and support our strategic efforts and growth in this segment……In our River Business, we successfully renewed Contracts of Affreightments which enable the Company to capitalize on increased demand and a stronger rate environment. We continue to implement our strategic cost saving initiatives such as our re-engining and re-powering projects. In addition, our building yard is maintaining high productivity levels and is currently fully employed building barges for both the Company and third parties. We believe that the combined effect of these developments, together with a large crop already in silos will have a positive impact on our River Business segment in 2013 and over the long-term." Mr. Menéndez concluded, "As we progressively receive increased rates that we have contracted for our PSV fleet during 2013 and take delivery in the fourth quarter of ‘UP Onyx’ (the last vessel from the shipyard in India) while we increase the efficiency and size of our river fleet, we believe our EBITDA will strengthen in 2014 and beyond as we had expected when we set this investment plan in motion." The River Business experienced a 26% increase in the volume of cargo transported first quarter 2013 compared with 2012, due to normalized rainfall levels resulting in a significantly higher crop, most of which already been collected. First quarter 2013 River Business segment adjusted EBITDA was $6.5 million versus $(0.5) million, a $7.0 million increase. Results for first quarter 2013 demonstrate positive compounded effects of rate increases and normalized rainfall levels, taking into consideration expected seasonality inherent. According to latest USDA estimates, the soybean crop in Paraguay for 2013 is expected to be 8.4 million tons, 4.0 million tons or 91% above 2012 and 17% above 2011. Argentina, Brazil, Bolivia, Paraguay and Uruguay are estimated to account for approx. 55% of world soybean production in 2013, compared to 30% in 1995. These figures are a sign of the strength of the long-term growth prospects of the agricultural sector along the Hidrovia, by which seeded area is expected to continue to grow, fostered by strong prices of soybean and other agricultural commodities. This steady long-term growth trend represents an important demand driver for Ultrapetrol's River Business. In addition, iron ore production in the three mines connected with the river system also increased substantially in the last decade. During first quarter 2013 Ultrapetrol entered into a Master Agreement whereby it agreed to build and sell from its Punta Alvear yard seven jumbo dry barges and seven jumbo tank barges to a third party for export to Colombia. The yard will continue to be fully employed until end 2013, focusing on construction of barges under shipbuilding contracts already signed and barges for River Business. Ultrapetrol successfully continued re-engining and re-powering programs that aim to change engines on a substantial portion of line pushboats from diesel to heavy fuel. Having finalized reengining of two pushboats in second and third quarters 2012, six heavy fuel-consuming pushboats are now in operation and the next re-engined pushboat is expected to commence operation within fourth quarter 2013. This program has demonstrated its potential to lead to substantial savings in fuel expense and to an increase in tow size and navigation speed, which Ultrapetrol believes will enhance its EBITDA margins in the future.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Recent News – Europe and Mediterranean

As of 1st January 2013, Tschudi’s subsidiary International Transport Contractors (ITC) will be continuing its business activities under the new name of Tschudi Offshore & Towage. ITC was started in 1973 and since 2003, has been a wholly owned subsidiary in the Tschudi Group – a Group with traditions and a long family history in shipping from 1883. ITC’s relationship with Tschudi Shipping Company actually dates back to the establishment in 1973 and the name change now, 40 years later, emphasizes the strength of the Tschudi brand and the Tschudi Group’s continued commitment to ITC. The name change to Tschudi Offshore & Towage will also cement the importance of their subsidiary in the Tschudi Group as it continues to grow and move into new markets and business areas. There has been no change in the “ITC” team and Tschudi will continue to provide the same commitment, products and efficient service on which they have built their reputation in the market. However, going forward they see that Tschudi Offshore & Towage will also play an increasing importance in supporting other Tschudi Group activities with particular emphasis on the Northern Regions, the Baltic and Russia. The 205 ton bollard pull tugs “Fairmount Summit” and “Fairmount Alpine” delivered the newbuild “Noble Tamar” jacket at location in the Tamar gas field in the Eastern Mediterranean. Both tugs towed the barge on which the jacket was loaded from the US to the field South-East of Cyprus. The 18,500 ton jacket was built in the US. In Corpus Christi the jacket was loaded on the 260.o x 63.0 x 15.0m depth barge “H-851”, world’s largest float-over launch and cargo barge owned by Heerema Marine Contractors. Fairmount Marine, part of the Louis Dreyfus Armateurs Group, was contracted by Heerema Marine Contractors and mobilized the 75.0m x 18.0m, 16,320BHP tugs “Fairmount Summit” and “Fairmount Alpine” to Corpus Christi. From this port the convoy set sail for the 9,000 mile voyage. It took only 54 days at an average speed of 6.9 knots to deliver the barge in the Tamar field. Upon arrival the “Fairmount Summit” and “Fairmount Alpine” assisted in the launching and installation operations. The Tamar gas field is classified as the largest deepwater natural gas discovery in 2009. Production is expected to start in the second quarter of this year. After launching the Tamar jacket “Fairmount Alpine” was released and went on to her next assignment. “Fairmount Summit” continued with barge “H-851”, for a 5,150 mile voyage towards the Far East. After initial repairs were completed, “Fairmount Alpine” delivered the 15,550 TEU container vessel “Emma Maersk”, one of the largest container carriers of its kind, to Fincantieri’s repair yard in Palermo, Sicily. To tow the 397.7m x 56.4m, 156,907dwt “Emma Maersk”, towards Palermo Fairmount Marine was contracted by Maersk Line. Tug “Fairmount Alpine” happened to be in the eastern Mediterranean area and was promptly mobilized to Port Said, Egypt, where “Emma Maersk” discharged her cargo at the Suez Channel Container Terminal. “Fairmount Alpine” and “Emma Maersk” left Port Said on Sunday February 17th for the 1,400 miles voyage to Palermo, where the convoy arrived on Sunday February 24th. The giant container ship had taken on water and lost power near the northern entrance of the Suez Canal after one of her stern thrusters was damaged. A crack in the forward stern thruster tunnel allowed water to flood the engine room, consequently leading to the loss of main engine power. At no point was the “Emma Maersk” in danger of sinking, but it may be months before repairs are made and the ship can again enter service.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

We missed this in our last report, but in November 2012 the crew of the U.K. flagged, single Voith Schneider tractor tug “Egerton” – Captain Douglas Pincho, engineer Ernest Lara and “deckhands” Thomas and Wayne Penalver, were awarded the Merchant Navy Medal for their “brave conduct in maneuvering ‘Slop Barge 1707’ to safety during major fire at oil treatment plant, North Mole, Port of Gibraltar on 31st May 2011.” The medal recognizes meritorious service and acts of courage afloat, and was inaugurated during the Trafalgar Bicentennial year of 2005. The medal features a profile head of Admiral Lord Nelson on the obverse with the inscription "The Merchant Navy Medal" at the top and "1805 Trafalgar 2005" at the bottom. On the afternoon of 31 May 2011 an oil storage tank exploded in the port of Gibraltar, threatening the cruise ship "Independence of the Seas" berthed nearby and severely injuring two workers on a neighboring tank (one of whom died from 70% burns). All firefighting resources were brought to bear to prevent other tanks exploding and eventually extinguish the fire after 14 hours. The tug captain was twice refused permission to approach and move the barge because it was too dangerous. By the time he got the go-ahead, the deck of the barge was starting to blister and too hot to stand on. According to the “Gibraltar Chronicle”, “The crew of a local tug braved intense heat and the risk of explosion to tow a barge loaded with waste fuel away from the fire that raged in the port. The barge, called ‘Slop 1707’, was berthed against the Western Arm next to the sullage tank that exploded, just meters from the wall of flame that spewed from the steel structure. The fear was that the heat from the tank could set alight the fuel on the barge, creating an additional problem on the water. There was also concern that fuel might escape from the burning tank and set fire to the barge. The upshot was clear: the barge had to be moved. This was just one act of courage in a day filled with remarkable tales of heroism from across the emergency services and the private sector. It was performed by men who are routinely in harm's way when something goes wrong at sea, but on whom the limelight rarely shines. The task of pulling the barge away from the quay fell to the crew of the ‘Egerton’, one of three tugs owned and operated by local company TP Towage Co. Ltd. Another two of the company's tugs were already on site and had helped vacate the area of vessels - including fuel-laden bunker barges - before spraying the tanks adjacent to the fire to help cool them down. The ‘Egerton’ itself was crewed by off-duty employees of the company who had run down to the port to offer their assistance. Among them were two brothers, Tommy and Wayne Peñalver, the company's directors. When the ‘Egerton’ arrived at the scene, its crew could see that the company's tug ‘Sun Swale’ (sister to the ‘Egerton’) was right up against the quay next to the fuel barge, spraying water on the tanks on land. ‘The barge was carrying similar product to what was in the burning tank, so it was a pretty dangerous situation,’ Tommy Peñalver said. ‘Slop 1707’ was tied up to two bollards on land and the initial plan was for someone to approach along quay and cut the ropes, allowing the ‘Egerton’ to tow it away. But the fire intensified and it became too hot and too risky for the land-based crews to help. Douglas Pincho, the captain of the ‘Egerton’, reversed his vessel and pushed the barge against the quay, allowing the two Peñalver brothers to jump across and release the ropes themselves. Throughout this they were sprayed with water by the crew on the ‘Sun Swale’, with Jason Stanley at the helm, to give them some protection from the heat. ‘All we wanted to do was get the job done and leg it out of there,’ Mr. Peñalver said. ‘It's only after the event that you really start to think about it.’ Wayne, Mr. Peñalver's brother, added: ‘It's once the adrenaline wears off that the gravity of the situation hits you.’ While the dramatic operation to remove the barge was under way inside the harbor basin, a third TP Towage tug was tucked against the Western Arm on the bay side, spraying the burning tank and the adjacent structures. Michael Salmon, who was at the helm of that third vessel, said he had never before experienced a fire of such fierce intensity. Yesterday, as he described the barge operation, Mr. Peñalver repeatedly praised the valor of his crews. ‘All my crews deserve recognition because they were in the heart of it,’ he said. ‘We jumped because we happened to be there and the others were engaged [in other tasks]. But I know they would have done the same.’" The 29.0m x 8.5m “Egerton” was originally built in 1969 by Ziegler Freres of Dunkerque as the “Subtil” and is powered by a single 1,500HP Crepelle 8SN1 diesel driving a VoithSchneider propeller and developing about 18 tons bollard pull.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Titan Salvage, a wholly owned subsidiary of Crowley Maritime, successfully refloated the 80.9m x 11.4m x 4.75m depth containership “Danio” from its stricken position on England’s Northumberland coast despite challenging sea and weather conditions. “Danio”, which was carrying a load of timber and en route to Belgium from Scotland, ran aground at Farne Islands, an environmentally sensitive area, in early March. The onset of severe weather conditions prevented an immediate attempt to tow the 1,800dwt. Antigua & Barbuda flagged “Danio” from the coastline. Because the Farne Islands – home to thousands of puffins and grey seals, as well as more than 20 bird species – is classified as a site of Special Scientific Interest), Titan took extra precautions to safeguard the environment. The company’s Jason Bennett, commercial director, and his team of salvors took quick action to establish safety of the vessel, immediately deploy a tugboat and prepare for a controlled and safe re-floating operation. “Danio” was ballasted down to the rocky sea bottom while the Titan team repaired damage to the vessel’s skeg and other areas, which required cement boxing, shoring and patching before the vessel could be refloated and towed away. Portable pumps were also installed and used during re-float and transit to safety. Salvage Master Mark Loughlin, of C Waves, a London-based independent maritime and engineering consultancy contracted by the Titan alliance, transferred to “Danio” after initial assessment and remained on board alongside the crew throughout the operation. He was joined by Titan's salvage team, which worked in difficult conditions to ensure that the ship remained secure in the deteriorating weather conditions, which were marked by high seas and swells (up to seven meters), freezing rain and gale-force winds. During a brief window of suitable tides, “Danio” was successfully refloated without incident with the assistance of the Titan-chartered 28.2m, 80 ton bollard pull ASD tugboat “Lomax”, provided by Ostensjo Rederi (see page 14). “Titan worked quickly to ensure that there were sufficient people and equipment on site in a timely manner,” said the company’s Rich Habib, managing director. “In addition to prioritizing protection of the environment, the two-week salvage job was successful in large part because of Titan’s excellent working relationships with the authorities and client.” When it was determined that conditions were too extreme for supplies to be brought in via helicopter, Bennett and his team partnered with local fishermen who ferried in equipment and provisions. The Titan team also worked closely with Briggs Marine Environmental, which provided spill-prevention equipment, the Secretary of State’s Representative for Maritime Salvage and Intervention (SOSREP), the Maritime and Coastguard Agency (MCA), the Environment Group (EG) and the National Trust, alongside the ship’s owner and insurers, to ensure vessel security and environmental protection. Hugh Shaw, Secretary of State's Representative for Maritime Salvage and Intervention, said of the successful job: "I am delighted that the salvors have successfully re-floated the ship without any damage to the environment. I would like to take this opportunity to offer my thanks to all concerned with the operation. In particular I would like to thank Titan Salvage for their professionalism in carrying out the operation in the extremely difficult weather conditions experienced since the grounding.” No spills or damage to the region were reported as a result of the incident or salvage work. In March, The International Salvage Union (ISU) announced the results of its annual Pollution Prevention Survey for 2012. Quantity of pollutants salved overall was significantly up on the 2011 numbers. The increase is explained by inclusion of a small number of substantial coal cargoes this year. There was a decrease in the number of services performed by ISU members compared with the previous year. Total of all pollutants salved in 2011 was 810,068 tons compared with 496,331 tons in 2011. It is a rise of 63%. The average annual figure for the 18 years for which data is available dipped to just below one million tons of potential pollutants salved per year. It mirrors the trend of a decreasing number of casualties which chiefly reflects improvements to ship and operational safety over the past two decades. In 2012 the major change was a significant increase in the quantity of “other pollutants” salved – up 691% from 63,338 tons in 2011 to 501,348 tons this time. However, the 2011 figure was historically low and the 2012 includes some large, bulk cargoes, notably of coal. The quantity of oil cargoes salved went down by 59% from 258,647 tons in 2011 to 104,665 tons in 2012. This category is subject to dramatic change due to potentially large volumes of oil cargo carried by a single vessel. 2012 number represents, for example, only one major cargo. There were 188 services carried out by ISU members. The Lloyd’s Open Form salvage contract continued to be the most widely used contract with 52 services (55 in 2011). 32 services were carried out under towage contracts; 31 services were carried out under the Japanese form. Wreck contracts accounted for 42 of services and other types of contract were used in 36 services.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

During her maiden voyage, “MOL Quest” owned by Neptune Orient and operated by Mitsui OSK Lines arrived in Hamburg on 20th May 2013. The new vessel has the impressive dimensions of 368.5m length overall x 51.0m breadth x 15.5m laden draft, a 151,963GT and capacities of 14.000TEU. “MOL Quest” is incorporated in the G6-Alliance Service. As the vessel is longer than 360m, escort by tug is compulsory. Kotug’s 24.8m, 70 ton bollard pull, forward mounted z-peller “ZP Bulldog” built 2012 and the 28.3m, 68 ton bollard pull Rotortug “RT Zoë” built 2006 escorted “MOL Quest” and moored her safely at CTA. Bugsier Reederei of Hamburg, Germany sold their legendary ocean-going salvage tug “Oceanic” to Karadeniz Holding AS / Ata Tug & Salvage of Istanbul, Turkey. She was renamed “Osman Khan” and reflagged under Liberian registry. The 87.2m x 14.8m x 7.3m depth twin screw tug was built in 1969 by F. Schichau GmbH of Bremerhaven. Originally built with Deutz RBV 16M540s, she was re-powered in 1985 with a pair of supercharged Deutz SBV12M640s capable of burning heavy fuel and developing a total of 13,200BHP in order to compete with newer and higher horsepower tugs coming into the market. “Oceanic” and her sister “Arctic” were two of the best known big, deep-sea tugs in Germany. “Arctic” sold in 1993 and was converted to a super-yacht. “Oceanic” spent lot of her later years laid up after Bugsier commissioned the Emergency Towing Vessel (ETV) “Nordic” in December 2010 although she was temporarily reactivated as an ETV in 2011. This class of tugs, along their slightly smaller “Simson”, “Atlantic”, “Wotan” and “Titan” built 1972 – 75 were always favorites. While on tow, late in 2012, Stema Shipping’s “Larvik Rock” barge capsized off the English coast. This barge is used to transport rock for civil engineering applications and is unusually large, with a length overall of 122m and a beam of 36.6m. While still upside down “Larvik Rock” was towed to the Port of Rotterdam, Netherlands and moored at the Mammoet Heavy Lift Terminal in Schiedam. To upright the barge, Mammoet Salvage developed a plan to “parbuckle” it with sheerlegs while keeping most of the barge underwater. This reduced required capacity of the sheerlegs and therefore cost to the client. On Thursday 28 March, “Larvik Rock” was towed to a part of the Calandkanaal where the water depth was sufficient for the operation. The barge was then moored and ballasted. Mammoet provided the “Jumbo” dive support vessel and “Wieringer” pontoon carrying required pumps and compressors. The salvage crew started by flooding starboard ballast tanks of the “Larvik Rock”, which continued through the night. On Friday 29 March, the “Matador” floating sheerlegs arrived and connected to “Larvik Rock’s” preassembled rigging. Saturday morning the sheerlegs started lifting while some of the barge’s ballast tanks were emptied with compressed air. Once it was turned 90 degrees divers closed the bottom valves of the barge. The manholes were then opened and pumps were lowered into the tanks. The tanks were pumped out during the night and on Sunday the sheerlegs released “Larvik Rock” once it was free-floating. Finally, pumps were used to adjust the barge’s trim and heel after which it was towed back to the Mammoet Heavy Lift Terminal. On 19th January 2013, the Cook Islands flag, 2.412dwt coaster “Merle” lost power in a heavy storm off the coast of Portugal, and ran aground on a beach. Mammoet Salvage proposed an attractive solution to the ship owner - to purchase the 79.6m x 11.3m x 5.6m depth “Merle” for a nominal amount, refloat the vessel, and sell it for scrap. The benefit to the owner was the simplicity of this solution - all responsibility was transferred to Mammoet. Mammoet Salvage worked with Rebonave, a local company, to ensure a quick response and personnel familiar with local conditions. As the “Merle” had sunk deep into the sand it had to be freed using earth moving equipment before being towed off the beach. There was a strong swell close to the beach and a jet ski turned out to be the best option to carry the messenger line between the “Merle” and the tugs. The messenger line was then used to pull the tow line across. The vessel was refloated on 26th March and then towed to the scrap yard. She was broken up by Batista & Irmaos Sa of Alhos Vedros in Portugal.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Noble Drilling Services’ semi-submersible drilling rig “Noble Homer Ferrington” arrived in Malta on 10th March to carry out routine maintenance. The 77.4m x 68.6m rig started its voyage from Haifa, Israel on 26th February and was towed to Malta by Vroon Offshore’s AHTS “VOS Atlantis”, with the “VOS Challenger” standing by, up to the pilot’s station 1.5 nautical miles south east of Marsaxlokk. From there on Tug Malta’s 36.7m, 81mt bollard pull tractor tug “Spinola”, 30.6m, 67T bollard pull z-drive tug “Pawlina”, 30.0m, 55T bollard pull ASD tug “Sea Salvor” and 24.6m, 68 ton bollard pull ASD tug “Wenzina” took over, towing the rig into the harbor and assisting same until it was safely berthed at the Freeport Terminal 2 RoRo berth. In total the operation took 12 hours, with tugs “Spinola” and “Pawlina” remaining engaged till completion of operation at 1830 hours. Tug Malta Ltd. is a subsidiary of Rimorchiatori Riuniti SpA.

Gigilinis Salvage & Towage’s 44.8m x 11.8m, 65T bollard pull salvage tug “Spartan” (ex-Jantar, Pacific Salvor, Abeille Bretagne) completed towage of a newbuilding hull from Istanbul, Turkey to Leirvik, Norway. The voyage, which lasted just over 30 days was quite challenging due to the bad weather conditions prevailing along the route, however, it was safely concluded with safe delivery th of the tow to her owners on 19 January 2013. The Maltese-flag “Spartan” was originally built in 1979 by Ateliers et Chantiers de la Manche in their Dieppe yard for Les Abeilles International. She is powered by Pielstick 6PA6L280 diesels producing total 4,800HP, and fitted with Berg CP props in Tow Master nozzles with three rudders each. Heerema Marine Contractor’s new 180 ton bollard pull, anchor handling tugs “Bylgia” (Yard No. 85) and “Kolga” (Yard No. 86) are expected to be completed in the next couple of months by Astilleros Armon Vigo SA in Vigo, Spain. The 72.0m x 18.0m state-of-the-art tugs will be equipped with a retractable bow thruster and will have DP2 capabilities. Each tug can hold up to 2,500m3 of fuel, sufficient to sail directly from Rotterdam to Cape Town, South Africa. The vessels will be fitted with an Ibercisa electrically driven, double drum waterfall winches, each with a capacity of 2,500m of 86.9mm wire with a 350 tons line pull at 10m/min first layer and static brake capacity of 600 tons on each drum. Both tugs will able to install anchors in water depths up to 1,500 meters. Each tug will also have accommodation for 28 people. “Bylgia” and “Kolga” are to replace Heerema’s venerable, 60.5m x 15.3m, 160 ton bollard pull “Husky” and “Retriever” (photo right) were built in 1978 and 1982 by Niestern Sander Shipyard in Delfzijl, The Netherlands. In January, the 33.3m x 10.3m, 2,820BHP, twin screw tug “Westsund” (exStrathfoyle, Clausentum) belonging to Svendborg Bugser of Denmark towed the three former Royal Danish Navy corvettes “Niels Juel” (F-354), “Olfert Fischer” (F-355) and “Peter Tordenskiold” (F-356) from the Korsør Naval Base to Odense for scrapping. The tow of the 1,450 tons displacement, 84m x 10.3m x 4.8m draft corvettes was done over a three day period with the assistance of the Svendborg Bugser’s single screw, 18.5 ton bollard pull tug “Storesund” (ex-Stein) assisting. The three ships were built by Aalborg Vaerft A/S between 1978 and 1980 and retired in 2009.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Farstad Shipping achieved an operating income of NOK 914.8 million for the 1st quarter (NOK 905.5 million for the same period in 2012). The operating costs for the period were NOK 590.1 million (NOK 595.8 million). Both operating income and operating costs have been positively influenced by fewer dockings than normal this quarter. A weak spot market in the North Sea has influenced the operating income negatively as has four vessels that have been completely or partly without work during this quarter. Three of these vessels have been idle awaiting start-up of new contracts. The 24,000HP “Far Senator” (AHTS 731 CD) was delivered from Vard Langsten on 21st March. The 87.4m x 21.5m x 9.3m depth / 7.78m draft vessel was sold to Ocean Yield AS and leased back on a 12 year bareboat charter. The agreement includes options for Farstad to buy back the vessel at given conditions, and will be treated as a financial lease in the accounts. The vessel is trading the North Sea spot market. The diesel electric “Far Senator” is powered by two 4,500bkW Bergen B32:40L9P and four 2,230bkW CAT 3516 diesel generators connected to two 3,000kW electric motors driving two CP props. She is also fitted with a 2,448BHP azimuthing bow thruster and one 2,040BHP bow and two 1,632BHP tunnel stern thrusters. Bollard pull is 258 tons. Towing / anchor handling gear consists of a 625mt brake, hydraulic triple drum winch with a capacity of 19,336 + 2,653m of 76mm wire with a secondary winch having a capacity of 2 x 4,088m + 2 x 865m 160mm fiber line, in addition to one storage reel of 1,800m 84mm capacity. Four chain lockers have a total of 644m3 capacity. “Far Senator” is also fitted out with four 250MWL Rolls Royce tow pins, three 800MWL Rolls Royce shark jaws and two 750mt MWL 3m x 4.5m diameter stern rollers. Vessel is classed DnV +1A1, SF, E0, DK(+), HL(2,8), Offshore Service Vessel + AHTS, COMF-V(3), Clean Design, Oilrec, Dynpos-AUTR, NAUT OSV(A), Ice-C, TMON, BIS. The 136 ton bollard pull, 69.2m x 15.1m x 7.0m depth AHTS “Lady Cynthia”, built in 1987 by Hudong Shipyard in Shanghai for P&O / Australian Offshore Services at a cost of around US$ 11 million was sold by Farstad on 2nd January to Sadhav Shipping Ltd. of Mumbai, India and renamed “Aadya”. After the sale, only one or two of Farstad’s vessels in the fleet remain that were built during the 1980s. Farstad Shipping has achieved a number of new charter commitments during the first quarter of 2013 with, excluding PSVs and IMRs, the most significant being: Perenco Petroleo e Gas do Brasil awarded the 230mt bollard pull AHTS “Far Sagaris” (photo left) a 12 month contract with a 6 month option to support the Ocean Star drilling campaign in Brazil. The vessel was idle during the quarter until start-up of this contract mid-February. Petrobras declared their option to extend the contract for AHTS “Far Sea” with 292 days. The contract coverage of the Farstad Fleet is approx. 72% for the remaining part of 2013, and approximately 45% for 2014. These figures include the charterer’s options to extend certain contracts. The market for the first quarter turned out as expected. Most of Farstad’s markets have been characterized by too much idle tonnage. The North Sea market was weak in the two first months of the year, but improved as spring progressed. There have been brief periods with balance in the market. Even though the summer market in the North Sea this year is expected to be better than last year, a more stable market is dependent upon a net departure of tonnage to other regions. Brazil has shown a positive development during the quarter as Petrobras once more has started awarding contracts, which gives reasons for optimism. The Indian Pacific region is still characterized by overcapacity of tonnage and pressure on rate levels. This situation is not expected to improve in 2013. With an oil price at today’s level, the offshore activity is expected to increase in the years ahead. This applies to operations related to drilling activity as well as operations related to installation and production and not least the increasing activity related to inspection, maintenance and repair of subsea installations. Profitability for the participants in this market will be dependent upon the development on the supply side. An increasing number of new participants with easy access to capital that they are willing to risk is a concern in terms of continued high contracting. Especially, for the subsea market the development and completion of planned projects will be dependent on sufficient access to engineering and other critical shore based resources, which will eventually lead to revised time schedules and a flattening of the activity level.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Compared with the first quarter of 2012, Bourbon’s revenues grew by 13.4% to 315.1 million euros (+14.3% at constant exchange rates), benefiting from 35 new vessels joining the fleet (of which 20 are crewboats). This growth occurred in all segments, particularly shallow water offshore. Compared with fourth quarter 2012, Bourbon’s revenues were stable, impacted by the number of planned classification dry-docks over the period, especially in areas with a highly seasonal impact (winter in the North Sea and monsoon period in Asia). “In a favorable context for the oil & gas and related services industry, Bourbon is continuing to grow. Daily rates for vessels with contracts renewals continue trending upwards,” says Christian Lefèvre, CEO of Bourbon. “In the first quarter, Bourbon took delivery of 4 supply vessels, 1 IMR vessel and 5 crewboats. The activity was affected by the seasonal impact of the North Sea winter and the South-East Asia monsoons. 23 classification dry-docks were scheduled for the supply and IMR vessels during this period of reduced activity. The remaining quarters of the year will see a 25% decrease in the number of classification dry-docks in a market stimulated by growing demand for vessels.” During the quarter, Bourbon took delivery of ten new vessels (one IMR, one deepwater offshore, three shallow water offshore and five crewboats), while three crewboats were taken out of the fleet during the period. Compared with the first quarter of 2012, Marine Services revenues were up 16.4% to 258.5 million euros, a particularly marked increase in Shallow water offshore. Compared with the fourth quarter of 2012, the fleet’s average utilization rate was affected during the period by a number of planned classification dry-docks, the transit of vessels between regions, and a seasonal impact.

Average utilization rate IMR vessels Deepwater supply vessels Shallow water supply vessels

BOURBON's Offshore Fleet Utilization Rates Q1 Q4 Q3 Q2 Q1 2013 2012 2012 2012 2012 84.20% 86.20% 83.50% 84.00% 83.70% 90.60% 91.70% 85.20% 89.70% 85.70% 86.60% 90.20% 92.10% 91.30% 92.50% 89.80% 92.20% 90.30% 92.50% 84.30%

Q4 2011 85.70% 91.00% 93.70% 88.30%

Q3 2011 83.40% 94.00% 90.20% 86.40%

Q2 2011 84.70% 96.30% 86.90% 90.20%

Q1 2011 83.10% 92.00% 88.10% 84.80%

Compared with first quarter 2012, revenues from deepwater offshore vessels in the first quarter of 2013 were up by 7.5% to 93.0 million euros, benefiting from four vessels joining the fleet and the increase in daily rates in the majority of Bourbon’s areas of operation. However, this increase was limited by a decline in average utilization rates due to transit of “large PSVs” from shipyards to operating zones in Europe and planned classification dry-docks in the North Sea. Compared with fourth quarter 2012, revenues were stable. Utilization was strongly impacted by the classification dry-docks mentioned above and reduced activity due to the winter season in the North Sea. Compared with first quarter 2012, revenues for first quarter 2013 for shallow water offshore vessels were up significantly (+31.7%) to 92.8 million euros, boosted particularly by the entry into service of new vessels in recent months and supported by higher average utilization and daily rates in all its main operating regions (Asia, West Africa, Middle East). Compared with the fourth quarter of 2012, revenues were up 1.8%, despite the impact of classification dry-docks and the transit of new vessels from the shipyards to their operating areas leading to a reduction in utilization rates. Overall, average daily rates were stable across all operating regions from one quarter to the next quarter. Robust investments in Exploration/Production by oil and gas clients continue to stimulate demand for offshore vessels. In Shallow water offshore, the combined effects of an increase in demand for vessels, clients’ stricter criteria for the selection of vessels and operators, and a reduction in the number of vessels coming out of shipyards in this segment should have a positive impact on utilization and charter rates for Bourbon vessels. In Deepwater offshore, the high number of new vessels coming out of the shipyards should only marginally impact Bourbon due to high contract coverage of the fleet Bourbon is operating in this segment. The strategy of fleet standardization, the focus on crew training through the use of simulators, and the systematization of maintenance and procurement procedures will continue to underpin Bourbon’s operational and financial performance. On April 9th, Bourbon announced the signing of an agreement with ICBC Financial Leasing (China) for the sale and bareboat charter back of up to 51 vessels, over 10 years, for a maximum value of US$ 1.5 billion, as part of the implementation of their “Transforming for beyond” action plan.

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Maersk delivered a profit of USD 790m (USD 1.2bn) and a return on invested capital (ROIC) of 8.0% (10.2%) for Q1. Figures for 2012 are in parentheses. Profit for the same period last year was positively affected by settlement of an Algerian tax dispute of USD 899m and divestment gains of USD 325m before tax. APM Terminals made a profit of USD 166m (USD 226m). Q1 2012 included divestment gain of USD 73m after tax. ROIC was 12.0% (20.1%). Positive developments in terminals in high growth markets were able to offset reduced volumes in North America and Western Europe, as well as reduced activity in Inland Services following divestment of Maersk Equipment Service Company Inc., USA in March 2012. The number of containers handled was at the same level as Q1 2012, while the global market increased by 3%. Cash flow from operating activities was USD 242m (USD 185m) and cash flow used for capital expenditure was USD 164m (USD 24m). APM Terminals and Turkey-based Petkim signed a strategic partnership agreement to build and operate the new Aegean Gateway Terminal (AGT) near Izmir, Turkey. Further, APM Terminals in consortium with Bolloré Africa Logistics and Bouygues was named preferred bidder for a new container terminal in Abidjan, Ivory Coast. Maersk Oil’s made a profit of USD 346m (USD 1.3bn) and a ROIC of 20.6% (76.5%). Result was negatively affected by lower average oil price of USD 112/bbl (USD 119/bbl) and lower entitlement production of 239,000 boepd (254,000 boepd) mainly due to reduced ownership share and production in Denmark partly offset by higher entitlement production in Qatar, UK and Algeria. Profit for Q1 2012 was positively affected by settlement of the Algerian tax dispute and a divestment gain of USD 92m after tax. Exploration costs amounted to USD 235m (USD 299m) with completion of seven (five) exploration/appraisal wells. Cash flow from operating activities was USD 1.2bn (USD 1.1bn) and cash flow used for capital expenditure was USD 412m (USD 553m). The yearly update of Maersk Oil’s reserves and resources at the end of 2012 showed entitlement reserves and resources (2P+2C) of 1.36bn barrels of oil equivalent (1.38bn boe) including proved and probable (2P) reserves of 0.62bn boe (0.59bn boe). A net reserves addition (2P) of 119 million boe, mainly from Algeria, Denmark, Qatar, UK and the USA compensated the 94 million boe of entitlement production in 2012. Maersk Supply Service result for Q1 2013 was a net operating profit of USD 55m (42m). In the North Sea spot market for AHTS vessels PSVs, day rates increased during beginning of Q1 2013 and reached higher levels compared to Q1 2012. Vessel availability still keeps day rates and utilization under some pressure. A number of contracts for PSVs were concluded. Three vessels were divested during the period as part of the ongoing fleet renewal initiative bringing the fleet to a total of 62 vessels. Within the emergency response and rescue segment, Esvagt nearly achieved full utilization during Q1. One new Esvagt vessel out of a series of four (first three were delivered in 2012) was delivered the fleet to a total of 36 vessels. Profit increased by USD 13m compared to Q1 2012 mainly due to a higher utilization and delivery of new vessels in the ERRV segment as well as realization of sales gain of divestment of three vessels. Contract coverage for the remainder of 2013 is 67% and 37% for 2014 excluding options. Within Svitzer’s main business, harbor towage, activity was up by 7% compared to same period last year after a robust recovery in March. Tariff increases were announced and implemented by 1st April in most harbor towage ports in Australia and Europe. Terminal towage activities developed as planned with a few smaller new contracts won in Oman, Mexico and Venezuela. Salvage activity was weak in Q1, but the project pipeline is improving. Revenue at USD 186m (USD 242m) was below same period last year due to last year’s salvage revenue. EBITDA and net operating profit after tax decreased by 9% and 7% respectively, mainly due to decline in earnings from salvage, only partly offset by harbor towage. Operating cash flow decreased due to last year’s collection of salvage receivables. Investment cash flow was down 56% as the last part of Svitzer’s major fleet renewal program was completed mid2012. Current vessels on order are limited to vessels under construction for the Australian Gorgon project. Maersk still expects a result for 2013 below 2012 (USD 4.0bn). The net result is expected to be in line with 2012 (USD 2.9bn) excluding impairment losses, divestment gains and gain from the tax settlement in Algeria. APM Terminals still expects a result above 2012 (USD 701m) and to grow ahead of the market supported by volumes from new terminals, whilst improving productivity in existing facilities. Cash flow for capital expenditure is expected to be somewhat higher, while cash flow from operating activities is expected to develop in line with the result. Maersk Oil still expects a result significantly below 2012 (USD 2.4bn), which included one-off income of USD 1.0bn from the Algerian tax dispute and divestment gains. The operational result is expected to be below 2012 (USD 1.5bn, excluding the tax dispute and divestment gains. Maersk Oil expects entitlement production for 2013 to be 240 - 250,000 boepd, lower in the first half than second half 2013 at an average oil price of USD 105/bbl. The lower entitlement production is predominantly caused by a natural production decline from mature fields and reduced ownership share in Denmark, countered by startup in El Merk and Gryphon. Exploration expenses are expected to be above USD 1.0bn. The total result from all other activities is still expected to be above the 2012 result excluding divestment gains and impairment losses. The outlook for 2013 is subject to considerable uncertainty, not least due to developments in the global economy. 91

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Marcon International, Inc. Tug Boat Market Report – May 2013

Royal Boskalis Westminster N.V. realized a higher revenue first quarter 2013 compared to the same period last year. There was no material change in market circumstances during the quarter, with continued pressure on margins and challenging conditions. Acquisition of Dockwise was finalized the end of March and Dockwise results will be included in consolidated figures from the second quarter. Dredging reported good margins with a revenue level in line with first quarter 2012. Utilization of the hopper fleet was good in the first quarter and was higher than the 2012 full year utilization rate. In addition to the customary contribution from the fleet operations and project results, the first quarter also saw a book profit from the sale of equipment. Towage & Salvage activities had a good first quarter. Harbor Towage was able to look back on a good quarter partly thanks to a number of salvage assistances. Terminal activities (Boskalis’ 50% stake in Smit Lamnalco) also had a good quarter despite a quiet spot market. Salvage made a good start to the year with a high workload of emergency response and salvage contracts. At end-March the order book stood at EUR 4.1 billion, unchanged compared to end 2012. Brazil is a core business area for Smit Towage and other Smit and Boskalis activities. The Brazilian market has been galvanized by the phenomenal success of this country’s oil and gas sector. Looking at Brazilian ports, general cargo volumes are still on the increase, although the vigorous rate of growth enjoyed in recent years may slow. Smit’s Brazilian fleet continues to expand. The first in a series of six new 45 tons bollard pull tugs arrived in December. The remaining five will join the fleet at a rate of one per month until May. This will increase Smit’s Brazilian tug fleet from 18 to 24 units, plus an additional three on bareboat charter. The four “frontrunners” still operating in Brazil will be phased out during first half 2013. Smit Salvage was off to a busy start of the year, with award of a LOF contract for the salvage of drilling unit “Kulluk” (see page 32), grounded off the Alaskan coast. Smit Salvage organized an immediate response, successfully refloated the platform and towed the “Kulluk” to a safe location for further assessment. Boskalis Offshore looks forward to a busy 2013, amongst others with two recent contract awards. Subsea Contracting was awarded in joint venture a contract by Statoil for various rock installation works in the North and Norwegian Seas. Boskalis Offshore will prepare the seabed for installation of pipelines and other structures on the sea floor as well as the installation of post-lay rock berms. In addition, Boskalis Offshore has been awarded a subsea contract for the Dan Bravo Rationalization (DABRAT) project for Maersk Oil in the Danish section of the North Sea. The project involves preparation and construction work to the Dan A and Dan B offshore oil production facilities. Two diving support vessels, “Protea” and “Constructor”, will be deployed to execute this subsea work that will take place in 2013 and 2014. The Smit Lamnalco terminals business began operating from its new base at Smit’s Waalhaven building, Rotterdam, during the final weeks 2012. Location at Waalhaven is already maximizing synergies between the integrated Smit Terminals and Lamnalco businesses. The year ended on a promising note, with award of two new contracts for Smit Lamnalco. A 10-year LNG terminal support contract in Papua New Guinea was awarded. The second is a three-year support contract for an Iraqi oil export facility, which commenced in January. A fleet of 10 vessels is required for the Iraqi contract, calling for support of oil export SPMs. Two new Damen 3213 tugs will join the fleet for this contract. The markets in which Boskalis operates are driven in the long term by growth in global trade, energy consumption and the world’s population, as well as by the effects of climate change. The medium-term picture is mixed for the markets in which Boskalis operates. On the one hand it is seeing continued reluctance on the part of governments, particularly in Europe, to invest. On the other it is seeing private initiatives for new infrastructure projects being developed by clients in various regions of the world and across the different market segments. This applies in particular to energy and raw materials-related projects in South America, Africa and Australasia as well as to port developments outside of Europe. Market developments in the offshore energy market have a bearing on a substantial part of Boskalis’ business. It expects demand for and construction of new oil and LNG import and export terminals (Dredging and Dockwise) to lead to growth in terminal services (Smit Lamnalco). For the rest, developments at Offshore Energy are strongly dependent on an upturn in demand from the energy markets, particularly those in Northwest Europe, Brazil and Southeast Asia. For 2013 and as previously indicated, Boskalis expects that the current market developments will once again have a dampening effect on the structurally positive trends that underpin its strategy. Current information suggests that the year ahead will bring little change to the market picture compared to 2012. At Dredging, Boskalis expects to see healthy fleet utilization levels and a stable operating margin. The same outlook also applies to the other activities: Offshore Energy, Inland Infrastructure and Towage & Salvage. Capital expenditure for 2013 is expected to be around EUR 400 million, including Dockwise, which can be funded from the cash flow.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Touax Group, owners and operators of river barges, railcars, shipping containers and modular buildings, reported consolidated revenue for first quarter 2013 amounted to €59.7 million compared with €83.1 million for Q1 2012, i.e. a fall of €23.4 million (-28.2%). Excluding changes in the exchange rate and consolidation perimeter, revenue fell by 32%. Leasing revenue remained stable at €51.4 million compared with Q1 2012 (-2.4% excluding changes in the exchange rate and consolidation perimeter). Sales revenue amounted to €8.3 million, down due to the combined effect of the economic situation in Europe which negatively impacted sales in the Modular Buildings business and the postponement of syndications in the Shipping Containers business from Q1 to Q2 2013. The revenue of the River Barges Division was almost stable at €4 million compared with €4.1 million in Q1 2012. Sluggish business in Europe is offset by bringing into service new barges leased under long-term contracts in South America. Touax confirms the favourable outlook for business in 2013, in particular thanks to the development of its activities in this zone. Touax does not anticipate any improvement in the short term in its European businesses, leading to weak results for the first half of 2013, as for the second half of 2012. On the other hand, Touax forecasts an increase in revenues in 2013 and 2014 in view of the growth in its international activities and its development in emerging countries.

Southeast / Southwest Asia, South Pacific, West Pacific and Far East News On Thursday 14th February, Tsavliris Salvage Group dispatched Augustea Imprese Marittime’s 50.0m x 15.0m, 123 ton bollard pull salvage tug "Kamarina", from her Singapore salvage station, to assist the 104,000dwt, Marshall Islands, Aframax oil tanker "Mako" laden with about 89,000 tons of crude oil, experiencing technical problems and steaming at reduced speed, about 115 nautical miles south of Sunda Straits, Indian Ocean. The 243.7m x 42.0m casualty required tug assistance/support prior to entering the Sunda Strait. The 40.0m x 11.8m, 4,000BHP AHTS "Swissco Supreme" was also deployed from Singapore on Monday 18th February to assist in the escort, steering or towage of the "Mako". "Kamarina" arrived on 18th February and awaited the arrival of the second tug in order to proceed to the casualty's position. Following instructions from "Mako", "Kamarina" proceeded to the casualty's position on 21st February and arrived the same day. Attempts were made to connect the towline, however bad weather conditions did not allow for this. On 22nd February, the 50 ton bollard pull "Swissco Supreme” arrived and attempted to connect the towline at the stern of the casualty. Once again due to bad weather it was difficult to connect, and once connected the towline parted. Due to improved weather conditions towlines were connected on the 25th February, i.e. "Kamarina" connected to the bow and "Swissco Supreme" connected to the stern. Convoy commenced towage to Jakarta, Indonesia where safely arrived on 27th February. Both tugs were released the following day. Tsavliris dispatched Malayan Towage’s, 8,200BHP / 10,000IHP salvage tug "Trabajador 1" (ex-Seiha Maru No. 2, Sun Arrow), from Subic Bay, Philippines on Thursday 23rd May, to assist the Panama flag, 74,333dwt bulk carrier "Navios Magellan” in ballast and immobilized due to engine problems in the Sulu Sea. The Philippines flag, 82 ton bollard pull "Trabajador 1" arrived at the casualty's position on Saturday 25th May, connected the towline and commenced towage towards Singapore. The convoy arrived safely at Singapore, off East OPL on the 2nd June. With assistance of four port tugs, tow masters and pilot, the 224.9m x 32.2m x 19.3m depth casualty was finally towed to Sembawang Shipyard, where she was safely redelivered to her owners the same day.

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Marcon International, Inc. Tug Boat Market Report – May 2013

On Sunday 5th May 2013, Tsavliris dispatched their 84T bollard pull salvage tug "Tsavliris Unity" (ex-Seaways 5, Deymos) from her Galle, Sri Lanka salvage station, to assist the 39,695dwt, geared bulker "Rio Gold”, laden with 35,200T cement clinker, grounded on hard rock off South East Preparis Island, Myanmar. A local naval vessel was dispatched by authorities to casualty's position to monitor the situation. Tsavliris’ salvage master arrived on Tuesday 7th May and immediately met with Myanmar Port Authority, SAD (Shipping Agency Department), Department of Marine Administration and the Navy, to obtain necessary salvage permits. On Thursday 9th May, Tsavliris mobilized AHTS "Confidence" from Penang for casualty bunkers removal and general services. On Saturday 11th May, salvage tug "Tsavliris Unity" arrived alongside in Yangon for permits, stores and embarkation of salvage team. On Monday 13th May, salvage tug "Tsavliris Unity" proceeded to casualty's position and connected up. Following connection a refloating attempt was made and was successful with no pollution. "Tsavliris Unity" went alongside portside of the "Rio Gold” to provide stand by services and support services. An underwater inspection was performed to ascertain damage. It was found that the casualty had sustained propeller, rudder and extensive hull damage. AHTS "Confidence" arrived on Friday 17th May and connected towline to the "Rio Gold”, commencing towage to Lumut, Malaysia. "Tsavliris Unity" proceeded to Yangon Port for outward clearance and documentation -arriving on Sunday 19th May. On Monday 20th May, "Tsavliris Unity" proceeded to rendezvous position with the convoy and took over the towage of the "Rio Gold" to Lumut Port, with AHTS "Confidence" escorting. Convoy arrived safely and anchored off Lumut port limits on Monday 27th May. Both tugs - "Tsavliris Unity" and "Confidence" - stood by alongside the casualty awaiting instructions. On Tuesday 28th May, the casualty was shifted with assistance of port tugs to Lumut outer anchorage. Free pratique was granted for all vessels. "Tsavliris Unity" went alongside with towline connected, whilst the "Confidence" anchored nearby. With the recent delivery of 213 ton bollard pull AHTS “POSH Concorde” (Hull PY1008) from Paxocean Engineering yard in Zhuhai, China in November 2012, POSH Semco Pte Ltd. successfully completed taking delivery of the six units of POSH C-Class 16,000BHP DP2 AHTS - the flagship vessel within her fleet of over 100 offshore supply vessels. Operating under the Deepwater Services division of the company, the six units of 16,000BHP DP2 AHTS, namely “POSH Constant”, “POSH Conquest”, “POSH Champion”, “POSH Commander”, “POSH Courage” and “POSH Concorde”, have been delivered over 25 months since August 2011. Built by shipyards with a combined shipbuilding experience of over 20 years and a delivery track record of over 200 offshore vessels, POSH has been able to leverage on the technological know-how and excellent craftsmanship of Universal Shipyard in Yokohama, Japan, Yuexin Shipbuilding in Guangzhou, China, and PaxOcean Engineering in Zhuhai, China, in bringing some of the top quality tonnages to the market. Apart from having trustworthy and experienced builders, four units out of the fleet of six also boast of the Havyard 842 design which has an excellent track record operating under North Sea conditions. Some of the safety features of the Havyard 842 design include an extremely large spooling capacity, excellent fuel efficiency, and a moveable crane along the vessel portside for safer anchor handling operations. “POSH had started building the 16,000BHP AHTS with opportunities in deepwater drilling off East Malaysia and Indonesia in mind. Gradually, we managed to deploy the high powered AHTS in other regions such as Myanmar, Philippines, India, Russia, and also Mediterranean Egypt and Malta, and it has been a very pleasant revelation for us in terms of the potential of the 16,000BHP AHTS”, quipped Lee Keng Lin, Director, Deepwater Services Division, POSH Semco Pte Ltd. Since the first delivery of the 16,000BHP DP2 AHTS, some charterers to-date, include global oil companies like British Gas, Daewoo, Gujarat State Petroleum Company, Lundin Petroleum, Murphy Oil, Niko Resources and Petronas Carigali; international offshore contractors Dockwise, Hyundai Heavy Industries, Saipem and Swiber; and also major FPSO operators like Bluewater and Rubicon.

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Marcon International, Inc. Tug Boat Market Report – May 2013

Jaya Holdings Limited has reached an agreement to sell a second new state-of-the-art anchor handling tug supply vessel, the “Jaya Sovereign” to Canadian buyers, Atlantic Towing Limited. Delivery is expected by end 2013. “Jaya Sovereign” is a sister of the “Jaya Supreme” delivered to Atlantic Towing in November of last year. Both vessels are among the most sophisticated anchor handlers ever built at a Singapore shipyard. Jaya said Atlantic Towing’s decision to acquire the sister ship was due to the high quality performance of the “Jaya Supreme”, since renamed “Atlantic Kestrel”, since Atlantic took delivery of the vessel, as well as the on-going demand for higher Ice Class vessels for work in Arctic waters. Atlantic Towing VP Wayne Power said: “We have been very pleased with all aspects of the performance of the ‘Atlantic Kestrel’ since it’s delivery including the vessel specification, operation and the workmanship. We are sure the acquisition of the ‘Atlantic Merlin’ (‘Jaya Sovereign’) will prove to be just as successful and we look forward to receiving and operating another excellent vessel.” Jaya Holdings CEO, Venkatraman Shesheshayee said, “sale of the ‘Jaya Sovereign’ underlines our ability to deliver high quality vessels to customers at prices which reflect value as well as our unstinting focus on high quality workmanship. This is a repeat order for a vessel which is among the most sophisticated ever built for the offshore sector here in Singapore. The sale of ‘Jaya Sovereign’ again shows that Jaya leads the field in building this kind of high value, high specification vessel at prices which our customers find attractive.” He added that huge interest in Arctic Sea drilling means demand for “Jaya Sovereign” type vessels was rising. A recent licensing of 35 million acres of Russian Arctic to a Russian and international joint venture meant drilling was anticipated annually through to 2020 on a seasonal basis. Leading international oil companies are planning program off Greenland in 2014 and 2015 as well, he said. “Jaya is one of few shipbuilders in Asia to have built ice class anchor handlers and is happy to take new building orders from interested owners looking to capitalize on the surge in drilling activity,” he noted. “Jaya Sovereign” (Hull No. 881) is an 85.2m x 22.0m x 9.0m / 7.6m max draft depth, VS-4622 design, AHTS built by Jaya Shipbuilding & Engineering Pte. Ltd. at their Singapore yard. She is powered by 6,000bkW Wartsila 12V32 diesels producing total 16,094BHP with two 4.3m CP props in special Wartsila HR nozzles. Bollard pull is approx. 200 tons. Maneuverability is enhanced by two 1,100kW CP forward and two 850kW aft mounted tunnel thrusters. Towing gear consists of a double drum hydraulic RRM-Brattvaag 400 tons waterfall winch with a capacity for 2,550m and 4,000m of 76mm wire and lifters for 90mm rig chain, two fixed drum secondary winches with a capacity for 1,600mm 8” dia. synthetic rope, a rope storage reel for 1,600m 76mm wire, two 4.0m diameter x 3.0m stern rollers and two sets each of Rolls Royce shark jaws with a max working load of 800 tons and towing pins suitable for a max 400 tons bollard pull. “Jaya Sovereign” is classed DnV +A1, Ice-1A, Tug, Supply Vessel, SF, E0, Dynpos-Autr, Naut-OSV(A), Clean Design, Comf-V(3), BIS, DK(+), HL(2.8), FiFi-1, T-MON, OilRec & LFL*. Jaya Holdings Limited reported consolidated revenue of US$ 24.8 million and net profit of US$ 4.0 million for the financial quarter ended 31 March 2013. The Group’s total revenue for the quarter was US$ 24.8 million, 53% higher than the previous corresponding quarter. The increased revenue was mainly contributed by the Offshore Support Services Division (OSS) which revenue was at US$ 24.4 million, 50% higher than the previous corresponding quarter. The period between December 2012 and February 2013 was challenging for offshore oilfield services providers. Jaya’s utilization, like that of many peers, came down due to various reasons, including seasonal factors, delayed awards of contracts and changes in cabotage rules in Indonesia. OSS Division’s increased revenue was attributable to higher day rates achieved as business expands its geographical presence beyond Asia to West Africa, India and Middle East. Increased time charter contracts also contributed to increased revenue. While charter utilization was relatively low (averaging 64% through the quarter) at the beginning of the quarter due to reasons outlined above, utilization recovered to a healthy level as the quarter progressed. OES Division’s revenue was derived from some modification works. The Group’s Net Profit for the quarter was US$ 4.0 million, compared to US$ 3.8 million the previous corresponding quarter. During the quarter under review, the OSS Division recorded a net profit of US$ 4.6 million compared to US$ 3.6 million in the previous corresponding quarter. The increase in net profit was mainly attributable to higher average daily charter revenue of US$ 13,987/day vs. US$ 9,862/day in the previous corresponding quarter. The OES Division recorded a net loss of US$ 0.3 million in the quarter under review as there was no vessel sale during the quarter under review.

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Marcon International, Inc. Tug Boat Market Report – May 2013

While Jaya Holding’s utilization levels have recovered well, and there are clear signs that demand for offshore support vessels is expected to further pick up as the year progresses, cabotage rules that have been implemented in Indonesia and which have tightened in Malaysia in the past few months are causing increased challenges for the Group to operate its fleet in these markets. However, a strong chartering order book of US$ 196 million (approx. 20 months of charter revenue), compared to $180 million a year ago, will provide a strong recurring income base for the Group. Commenting on the results, CEO Mr. Venkatraman Sheshashayee said: “Jaya is progressing well along the new strategic roadmap that the Group adopted a year ago. Our increased investment in our people and processes, our focus on strengthening our internal efficiencies and our planned expansions into new markets are all bearing fruit. We are moving up the value ladder in shipbuilding, with plans to build three state-of-the- art diesel-electric DP2 multi-purpose vessels. We are prepared for the various challenges that lie ahead of us in the very competitive and dynamic offshore market, and are confident that by continuing to focus on our service delivery and fulfilling our customers’ needs, we will go from strength to strength.” Miclyn Express Offshore Ltd. of Singapore held a keel laying ceremony at their Batam based shipyard, PT Loh & Loh. The barge will be the first of a new series of 400’ heavy deck cargo barges with ballast systems. It was designed by 38 Marine & Offshore Pte Ltd., with input from the in-house MEO Engineering Team. Expected delivery is mid-2013. The 400’ barge is of steel construction with a spoon bow, flush deck and twin skegs. The main hull is divided by 7 transverse watertight bulkheads and 3 longitudinal watertight bulkheads into 31 compartments inclusive of a machinery/ballast control room. It has two 280KW generators for electric power operation requirements and two 600m3/hr high capacity ballast pumps. Principal dimensions are 122.0m x 36.6m x 7.625m depth with a design draft of 5.80m. Design deck load is 25mt/m2. ASL Marine Holdings Ltd. of Singapore, an integrated marine company offering comprehensive services in shipbuilding, ship repair and conversion and ship chartering, reported revenue of S$ 83.0 million and net profit attributable to shareholders of S$ 10.6 million for the three months ended 31 December 2012 (“2QFY2013”). In 2QFY2013, broad based revenue growth across all three business segments, i.e. shipbuilding, ship repair and conversion, and ship chartering, pushed revenue higher by 7.3% year-onyear (y-o-y) to S$ 83.0 million. Revenue from shipbuilding increased slightly by 3.4% y-o-y to S$ 49.9 million in 2QFY2013 due to higher revenue recognition from construction of more vessels during the quarter. ASL worked on 23 vessels in 2QFY2013 compared to 17 vessels in 2QFY2012, with more focus on OSVs. Gross profit margin for shipbuilding was boosted from 11.7% in 2QFY2012 to 17.5% in 2QFY2013 due to construction of two units of high value PSVs and reversal of unrequired construction costs provisions. Ship chartering recorded revenue of S$ 22.3 million, an improvement of 12.1% y-o-y due to higher utilization from charter of tugs, and charter income received from two anchor handling tugs and one AHTS acquired after 2QFY2012. Apart from these factors, a higher proportion of time charter and the absence of additional depreciation of S$ 0.7 million back charged from cancellation of vessels held for sale in 1QFY2012, contributed to higher gross profit margin of 31.0% in 1HFY2013 compared to 20.1% in 1HFY2012. ASL’s shipbuilding order book from external customers stood at approx. S$ 528 million as at 31 December 2012, which comprised of 34 vessels including OSVs, AHTSs, self-propelled cutter suction dredges, tugs and barges. These vessels have progressive deliveries up to 4QFY2014. ASL Marine’s chartering fleet comprised of 202 vessels as at 31 December 2012 (31 December 2011: 194 vessels). Meanwhile, ASL’s ship chartering operations have a total outstanding delivery order of 25 vessels worth approx. S$ 138 million, comprising AHT, AHTS, ROV Support Vessels, landing crafts, tugs and barges. With the exception of three vessels worth a total of S$ 8 million, these vessels are being built internally by ASL. Approx. 30% of ASL’s chartering revenue in 1HFY2013 was contributed by long-term contracts. As at 31 December 2012, ASL Marine had an outstanding order book of approx. $83 million with respect to long-term chartering contracts. “The offshore oil and gas industry has so far been sheltered from the overhang in the global economy as activities in the region have sustained at a healthy level. We have seen strong orders for rigs over the past year, and we anticipate this demand to flow down the supply chain, supporting the outlook for offshore support vessels over the medium term. With a healthy order book and high yard utilization, we will channel our focus into margin optimizing measures such as product mix, project selection and project management to maximize shareholders’ value. Efficiency and turnaround will be the key focus for the shipbuilding and ship repair and conversion segments. Meanwhile, the ship chartering segment has displayed an encouraging upward trend in terms of utilization and charter rates. Despite the positive outlook, we remain vigilant to competition from other shipyards seeking to enter the offshore oil and gas industry. In this regard, our acquisition of the VOSTA LMG group in December 2012 has placed us on a higher rung in the value chain. Going forward, the Group shall seek to derive synergies arising from an expanded scope of services and a stronger presence in various markets globally.” commented Ang Kok Tian Chairman and Managing Director, ASL Marine.

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Marcon International, Inc. Tug Boat Market Report – May 2013 Recent News – Africa

The U.S. flag, 120’, 8,400HP ITB tug “Thunder” and 459.5’ x 64.7’ x 22.0’ Ro/Ro dry cargo barge “Lightning” arrived back in Lake Charles on April 16th after Foss International successfully met the challenges presented by broken down port equipment, roads full of washouts and potholes and security issues in war-ravaged countries during a recent, 3.5 month trip to ports in Sierra Leone, Togo and Cameroon in West Africa. Carrying food-aid cargo for the U.S. government, the “Thunder and Lightning” left Lake Charles, Louisiana on 28th December 2012 and made a stop in Guatemala before heading east to its West African destinations. Jay Schram of Foss International, who flew into each of the West Africa ports ahead of the “Thunder and Lightning’s” arrival to finalize arrangements and oversee cargo operations, said it’s impossible to compare doing business in Africa to similar operations in the United States or other developed countries. “We have the trains, and the roads are policed, and we have rules and regulations,” he said. “The trucks and trailers are in good condition and there’s such a higher standard of equipment in these countries. The only reason Africa functions is that people know you have to have a decent street for the freight to travel, and if the freight doesn’t travel you don’t sell anything and you don’t make money. You have to have a certain amount of infrastructure to have an economy.” But Schram said even the most basic infrastructure deteriorates in times of war and corruption, and he noted “We carry food aid, so we go to the worst of these countries.” The first stop was in Freetown, Sierra Leone, where the tug-barge unit discharged 40 containers. The roads were so bad and congested that it took trucks an entire day to make a 10-mile round trip from the port to the warehouse where the food was to be stored. “Also, the reachstackers and forklifts were breaking down,” Schram said. “And it’s not just the equipment but the way of life. It’s not a big deal spending three days getting something done that we would do in a few hours.” Sierra Leone experienced a number of coups and a civil war lasting into the middle of the last decade. Things were better at the next stop, in Lomé, Togo, where the “Thunder and Lightning” discharged 47 containers in a port that had good cranes and infrastructure. But the final destinations of the cargo were about 900 miles inland in Bamako and Segou, Mali, a country where French troops had been helping to push back a takeover by Islamist fighters. Foss hired an established and reliable contractor, Central African Transport, which sent the cargo into Mali in convoys of 10 trucks each for security from looters. The trip took 10 days over difficult roads. “Sometimes the washout might have happened a year ago, and they haven’t gotten to it,” Schram said. “You find a way around it—you just go through a guy’s field and get back on the road.” The last stop was Douala Cameroon, where the ITB discharged 112 containers at a port Schram described as being updated with decent equipment. Foss was not responsible for the inland delivery there. Marcon International sold the tug-barge unit from North Bank Towing / Odyssea Marine of Louisiana to America Cargo Transport (ACT) / Jore International of Seattle in 2004. Marcon acted as sole broker of the “Thunder and Lightning”. Previously Marcon sold the 568’ x 85’, 6,840BHP tug/barge unit “Strong / American” to Jore in addition to handling the sales and purchase of several other tugs and 300’ – 400’ barges. Foss Maritime purchased the marine assets of Jore and ACT in January 2007. The 120’ x 44’ x 29.5’ depth tug was built in 1991 by Upper Peninsular Shipbuilding, is powered by a pair of MAK 6M551AK diesels totaling 8,400BHP with CP wheels. Tug connects to the 7,000dwt dry cargo barge “Lightning” using a Bludworth linkage system. On Saturday 30th March, Tsavliris Salvage’s 47.0 x 11.1m, 80 ton bollard pull salvage tug “Megas Alexandros” (ex-Tito Neri) proceeded to assistance of the 4,865dwt oil/chemical tanker “Varkan Marmara” laden with about 3,500mt of FAME (a bio diesel product), disabled off the North African Coast. The tanker experienced engine problems while en route from Ceuta, Spain to Augusta, Sicily. The tow was connected with the affected 99.8m x 15.6m, Turkish ship on Tuesday 2nd April in adverse weather conditions. The convoy arrived in Augusta on Friday 5th April and anchored at the inner harbor.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

97

Marcon International, Inc. Tug Boat Market Report – May 2013

Tug “Fairmount Summit” delivered the rig “SSV Catarina” offshore Angola. The rig was towed from Okpo, South Korea, via the Strait of Malacca and the Cape of Good Hope towards Angola. “SSV Catarina” is a brand new sixth generation Gotaverken BVA 7500, semi-submersible drilling rig for ultra deepwater operations. The rig was constructed by Daewoo Shipbuilding & Marine Engineering in South Korea for Petroserv SA. “SSV Catarina” is designed to drill up to depths of 10,000m. The DNV classed rig has a length of 118m and a width of 78m. When hooked-up with the “SSV Catarina”, the tow sailed via Malacca Strait and Cape of Good Hope towards the Angola, where it arrived after covering a distance of over 10,000 miles with an average towing speed of 6.9 knots. During the voyage bunker stops were made in Singapore and Mauritius. At Mauritius, “Fairmount Summit” performed a cargo run between the port and the “SSV Catarina”. Last year, Cobalt International Energy signed a three-year contract to use the “SSV Catarina” to expand their Angolan drilling program, joining Diamond Offshore’s “Ocean Confidence”. Sea Trucks Group / West African Ventures’ 33.7m x 11.4m, 4,000HP anchor handling tug “Jascon 4” capsized and sank in the early hours of Sunday 26th May in heavy ocean swells supporting a tanker loading at Chevron Nigeria Ltd.’s Single Mooring Buoy (SBM) #3, 30km offshore. The crew on board at the time of the capsizing consisted of a Ukrainian captain and 11 Nigerians. “Jascon 4” ended up on the seabed in 30m of water upside down. The rescue operation involving helicopters and other vessels swung into action almost immediately. At that time though, there was no trace of the crew members. At the moment of the disaster, Emas Offshore’s 88.4m x 20.6m DP2, multipurpose dive support vessel “Lewek Toucan”, chartered by West African Ventures, with a team of DCN divers on board, was 17 hours sailing distance from the accident site. The team was involved in saturation diving work for the Okpoho-Okono 16 pipeline project being undertaken by DCN Diving in collaboration with DCN Global. As Internet reports about the accident continued to develop, the realization grew among the divers that there could still be survivors of the “Jascon 4”, trapped in an air pocket. Direct contact between the client and the management of DCN Global resulted in the immediate order to head for the accident site and offer all possible assistance in finding the crew members. The current operation was immediately halted, with divers from DCN actually in saturation at a pressure of 70 meters. The “Jascon 4” had however sunk in 30 meterdeep water. The 17 hour sailing time was used to bring the divers to a saturation pressure of 30 meters. Most of the crew were reportedly asleep in their cabins with the doors locked as security against potential pirate attacks, except for the 29 year old cook who was in the head. After feeling his way out of the toilet in the darkness, he managed to find a small air pocket in the ship and kept himself afloat on two mattresses, banging on the walls and hull with a hammer to attract attention, as the water level began to rise. While searching for any survivors and recovering bodies in the murky water one of the divers discovered the tug’s cook when the cook suddenly tapped him on the shoulder. Fitted with a diver’s helmet, the sole survivor of the wreck was pulled out of the wreck on a safety line, escorted into the diving bell. Once brought to the surface safe and well by divers from DCN 62 hours after the tug sank he was immediately put into the decompression chamber. This successful rescue raised hope among the DCN team that other live victims would perhaps be found, but further investigations sadly revealed only the remains of 10 deceased crew members. One of the crew regretfully was still missing when the rescue operations were finally declared too dangerous for the divers to proceed any further. The 53.7 ton bollard pull “Jascon 4”, built in 2004 by Kouan Shipbuilding in China and classed ABS *A1 +AMS, AHT was declared a total loss.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

98

Marcon International, Inc. Tug Boat Market Report – May 2013

Recently Updated Featured Tugs & AHTSs For Sale Direct From Owners (Sorted by HP) File: SU22552 Supply Boat - AHTS - 225.0' loa x 52.0' beam x 24.0' depth x 13.60' light draft x 20.90' loaded draft. Built in 1983 at Halter Marine; New Orleans, LA. U.S. flag. GRT: 455. Class: ABS + A1 Towing + AMS, Ice Class C. Docking & Special Survey due 04/2013. USCG COI exp. May 2013. Deadweight: 1,825lt. Deck Cargo: 735LT on 95' x 40' clear deck. FO: 261,658g. FW: 71,638g. DW: 213,026g. Dry Bulk: 3,960ft3 in 2 tanks. Liq. Mud: 11,440BBL. Winch: Smatco 140EAW 1000 waterfall double drum. Line Pull: 492LT. Stern Roller. Main Engines: 4 x EMD 16-645E7 total 12,280BHP. 2 - 142" x 144" prop(s) on Stainless steel shaft(s). Kort nozzle(s). Diesel elect 43,100kW 440vAC 60Hz gens connected to 4 elect motors. Bowthruster 2 -750HP. Bollard Pull: 136MT. Speed about 10-15kn on 259-602gph. Pump(s): DW: 600gpm, FO: 880gpm, FW: 200gpm, Bulk: 17gpm, Liq. Mud: 1,000gpm. Genset(s): 1 - 150kW 450vAC. Firefighting: 2 - 227m3/h monitors. Quarters: 25 berths in 11 cabins. Air Conditioned. Galley. 750HP stern thruster. Range abt. 10,100nm at 10kn. 2 pennant reels capacity 8,600' 2.5" wire each. 2 - 23.6LT tuggers. 2 Smatco capstans. Smith Berger electro-hydraulic tow pins. Triplex 700MT shark jaws. 2 chain lockers capacity 5,000' 3.25" chain. DP-1 positioning. U.S. Gulf Coast. File: SU22247 Supply Boat - AHTS - 222.1' loa x 47.7' beam x 15.7' depth x 19.50' loaded draft. Built in 1983 at Hyundai Hvy. Ind.; Korea. Foreign flag. GRT: 1,621. Class: LR + 100A1 Offshore Tug Supply Ice Class 1 + LMC, UMS. Deadweight: 1,900mt. Deck Cargo: 550MT on 36m x 11m clear deck. FO: 937m3. FW: 330m3. DW: 681m3. Dry Bulk: 290m3 in 4 tanks. Liq. Mud: 1,200BBL. Crane: 1 - 5T @ 9m outreach. Winch: Brattvaag LP waterfall 3-drum 400MT static holding. Line Pull: 250T. Wire Capacity: 1,000m x 64mm. Stern Roller. Main Engines: 4 x Bergen KVMB12 total 12,240BHP. Ulstein CP 3,000mm dia prop(s). Kort nozzle(s). 1 800HP stern thruster. Bowthruster 2 - 800HP. Bollard Pull: 120MT. Speed about 12-16kn on 18-30Tpd. Pump(s): Bulk: 2-19.2m3/hr, Liqmd: 2-60m3/hr, DW: 100m3/hr, FO: 150m3/hr. Genset(s): 2 - 1,570kVA / shaft; 2 - 250kW / CAT; 1 - 94kVA / CAT. Firefighting: Prepared for future installation FiFi. Quarters: 13 - 1 berth crew cabins. Air Conditioned. Galley. Deep water ice classed anchor handing tug supply vessel. Ulstein passive stabilization. 30m3 dispersant capacity. 104m3 rig chain lockers & 3" chain lifters. Hydraulic tow pins. 3 capstans & 2 tuggers. Pennant reels for 900m 76mm and 2 x 500m 76mm wire. Deepwater anchoring system with 1,500m 38mm wire capacity for anchoring in 400m water. Dispersant. Southeast Asia. Prompt. File: SU22248 Supply Boat - AHTS - 222.1' loa x 47.7' beam x 15.7' depth x 19.00' loaded draft. Built in 1983 at Hyundai Hvy. Ind.; Korea. India flag. GRT: 1,621. Class: IRS & LR +100 A1 Offshore Tug Supply Ice Class 1, +LMC, UMS, LNC, Tug Supply`. Deadweight: 1,710mt. Deck Cargo: 600MT on 37.3m x 11.0m clear deck. FO: 936m3. FW: 382m3. DW: 800m3. Dry Bulk: 290m3 in 4 tanks. Liq. Mud: 200m3. Calcium Chloride / Brine: 200m3. Crane: 1-2T @ 10m. Winch: Hydraulic LP waterfall 3-drum. Line Pull: 400T. Wire Capacity: 1,420m 68mm. Stern Roller. Main Engines: 4 x Bergen total 12,240BHP. Ulstein CP 3000mm dia prop(s). Kort nozzle(s). 1 - 800HP stern thruster. Bowthruster 2 - 800HP. Dynamic Positioning. Bollard Pull: 126MT. Speed about 10kn. Pump(s): Liq.Mud: 2 - 60m3/h, Bulk: 80MT/h, FW: 150m3/h, DW: 2 - 100m3/h, FO: 150m3/h, Brine: 150m3/h. Genset(s): 2 - 1,570kW Siemens / shaft, 2 - 305kW / CAT, 1 - 75kW / CAT. Quarters: 21 (1-13, 2-4). DP1 deep water ice classed anchor handing tug supply vessel. Kongsberg dynamic positioning. 2-105m3 rig chain lockers. Tow pins, 2-10T tuggers, 3-10T capstans, chain lifters and shark Jaws. Southeast Asia. File: TG99198 Tug - Twin Screw - 198.3' loa x 50.2' beam x 23.1' depth x 20.30' draft. Built in 1978 at Appingedam Niestern, Netherlands. GRT: 1,749. Class: LR + 100A1 Ice Class 3, UMS. Special Survey due 01/2018. Docking due 12/2015. Annual due 01/2014. Deadweight: 2,019mt. FO: 1,929m3. FW: 66m3. BW: 45m3. Deck crane 2,100-6,400kg. Winch: Hydraulic AHT + capstans. Line Pull: 168MT. Wire Capacity: 1,220m x 76mm. Stern Roller. Main Engines: 2 x MAK 16M453AK total 12,000BHP. 3,900mm Lips CP prop(s). Kort nozzle(s). Bowthruster 550HP. Bollard Pull: 150MT. Speed about 11-15kn max on 20-50m3/day. Genset(s): 3 - 300kW / GM; 1 - 104kW / GM 450vAC 60Hz. 26 berths. Anchor handling tug. Open stern. Sister TG99199. Europe. June 2013. File: TG99199 Tug - Twin Screw - 198.3' loa x 50.2' beam x 23.0' depth x 20.20' draft. Built 1982 at Niestern Sander; Netherlands. GRT: 1,749. Class: LR + 100A1 Tug, Ice Class 3 +LMC, UMS. Special Survey due 02/2014. Docking due 11/2013. Deadweight: 1,754T. FO: 1,900m3. FW: 48m3. BW: 59m3. Crane: 6MT SWL. Winch: Electric Bodewes side-by-side + capstans. Line Pull: 210MT. Wire Capacity: 2,440m x 3". Stern Roller. Main Engines: 2 x MAK 16M453AK total 12,000BHP. 3,900mm Lips CP prop(s). Kort nozzle(s). Bowthruster 2 450HP. Bollard Pull: 160MT. Speed about 11-16kn on 25-50m3/day. Genset(s): 2350kW/CAT 3412DI-T; 2-322kW/Shaft; 1-104kW/Harbor 440vAV 60Hz. Quarters: Total 26 berths. Raised foc'stle bow. AHT winch. 95mm chain cable lifter. Open stern. Two Karmoy towpins for bollard pull up to 240MT & two Karm Forks / chain-wire stoppers for MBL up to 500MT. Sister TG99198. October 2013.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

99

Marcon International, Inc. Tug Boat Market Report – May 2013

File: SU23649 Supply Boat - AHTS - 236.0' loa x 49.0' beam x 22.9' depth x 16.00' draft. Built in 1982 C. Amels & Zoon. Class: DNV + 1A1 Tug/Supply FiFi II Ice C Oil Rec E0. Special Survey passed. Deadweight: 1,430T. Deck Cargo: 700T on 430m2 deck. FO: 536.5m3. FW: 428.4m3. DW: 1,142m3. Dry Bulk: 175m3. Crane: 1 - 2T @ 18m / 1 - 4T @ 2.1m. Winch: 1 - 350T Brake, 2 - 20T Tugger. Line Pull: 250T. Stern Roller. Main Engines: 4 x Bergen total 10,560BHP. 2 - VP prop(s). Kort nozzle(s). Thrusters: 2 - bow and 1 - Stern. Bowthruster 2. Bollard Pull: 101.9T. Speed abt. 1015kn. 2 - Fire Pumps 3,600m3/hr. FiFi II, 4 Monitors 1,800m3/hr, 1 Foam Monitor. Quarters: 14 crew. Pax: 27. 4 point mooring. Keen Seller. Mediterranean. Prompt. File: SU20346 Supply Boat - AHTS - 203.4' loa x 46.2' beam x 22.3' depth x 18.99' loaded draft. Built in 1987 at Cantiere Navale Ferari La Spezia. Marshall Islands flag. GRT: 1,352. Class: BV 1 + Hull + Machinery FiFi 2. 390m2 clear deck. FO: 486.7m3. FW: 143.8m3. DW: 626.5m3. Dry Bulk: 200m3 in 4 tanks. Liq. Mud: 262.5m3. Crane: 1.8T @ 10.5m. Winch: Triple drum waterfall 275T brake, 2 - 10T tuggers, 2 - 15T stern capstans. Main Engines: 4 x Wartsila total 8,430BHP. 2 - CP prop(s). Kort nozzle(s). M/E:* 2 x 12V22HF = 5,060BHP, 2 x 8R22 = 3,370BHP. Bowthruster 2 - 450HP. Bollard Pull: 100T. Speed about 11-11.5kn on 10-12Tpd. Genset(s): 2-800kW / Shaft; 1-60kW & 1-30kW 440vAC 60Hz. FiFi 1. 2 - 1,800m3/h monitors. Quarters: 14 crew. 12 pax. 2 - 51.5m3 rig chain lockers. Reportedly excellent condition & well maintained. Keen Seller. New lower price. Mediterranean. Prompt. File: SU21120 Supply Boat - AHTS - 211.2' loa x 45.2' beam x 22.6' depth x 19.10' draft. Built in 1982 Aker Vindholmen; Norway. GRT: 1,316. Class: ABS. Deadweight: 1,898T. Deck Cargo: 750MT on 124.6' x 36.1' deck. FO: 681m3. FW: 250m3. DW: 813m3. Dry Bulk: 4 x 42.5m3. Liq. Mud: 298m3. Crane: 1 - 2.5T x 7m Hydraulic. Winch: Hydraulic Brattvaag. Wire Capacity: 1-1,200m & 1-1,000m 64mm. Stern Roller. Main Engines: 2 x Normo KVMB18 total 8,160BHP. CP prop(s). Kort nozzle(s). Bowthruster. Bollard Pull: 100MT. Pump(s): FO, FW & Liqmd: 100m3/hr, DW: 160m3/hr. Genset(s): 2 - 265kW 305kVA 415v 60Hz. Firefighting: 2 - 4,500Lpm. Quarters: 13. Air Passengers: 12. UT-704 design. Karm fork shark jaws & tow pins. Southeast Asia. File: SU21125 Supply Boat - AHTS - 211.3' loa x 45.3' beam x 22.6' depth x 15.42' loaded draft. Built in 1981 at Sterkoder Mek.; Norway. Belize flag. GRT: 1,334. Class: ABS. Deadweight: 1,050T. Deck Cargo: 750T on 126' x 36' clear deck. FO: 835m3. FW: 437m3. DW: 437m3. Dry Bulk: 170m3 in 4 tanks. Liq. Mud: 93m3. Calcium Chloride / Brine: 366m3. Crane: Elect. Hydraulic. Winch: Hydraulic Brattvaag double drum waterfall. Line Pull: 250T. Stern Roller. Main Engines: 2 x Nohab F316V total 8,160BHP. Ulstein CP prop(s). Kort nozzle(s). Bowthruster 800HP. Bollard Pull: 100MT. Speed about 10-16.3kn on 12-26Tpd. Genset(s): 4 2,376kVA 440vAC. 119m3 rig chain locker. Standby rescue. Ulstein shark jaw. Southeast Asia. File: SU21128 Supply Boat - AHTS - 211.2' loa x 45.0' beam x 22.8' depth x 15.50' draft. Built in 1983 at Tangen Verft; Norway. GRT: 1,323. Class: ABS. Deadweight: 1,050T. Deck Cargo: 740LT on 124.8' x 36' clear deck. FO: 830m3. FW: 250m3. DW: 650m3. Dry Bulk: 6,000ft3 in 4 tanks. Liq. Mud: 117m3. Derrick/A-Frame: 1-Hydraulic. Winch: Hydraulic Brattvaag waterfall SL250W. Line Pull: 250T. Wire Capacity: 1,400m x 64mm. Main Engines: 2 x Polar Nohab total 8,160BHP. Bowthruster 9.7T. Bollard Pull: 110MT. Speed about 16.9kn on 28Tpd. Genset(s): 2 - 305kVA; 2 - 800kVA. Quarters: 13 cabins. Passengers: 12. Southeast Asia. File: SU23161 Supply Boat - AHTS - 231.3' loa x 54.5' beam x 23.6' depth x 14.70' loaded draft. Built in 2010 Tongfang Jiangxin Shipbldg; China. Singapore flag. ABS + A1 (E) + AMS, AH Towing Vessel + DPS-2, FiFi 1, OSV. Deadweight: 2,500mt. Deck Cargo: 900MT on 480m2 deck. FO: 988m3. FW: 441m3. BW: 601m3. Dry Bulk: 220m3. Liq. Mud: 497m3. Crane: 1 - 5.9MT Elect./Hyd. Winch: 2 - 12MT tuggers; 1 - Elect/Hyd. Double drum; 2 - 5MT @ 19m/min capstans. Wire Capacity: 200m x 24mm. Stern Roller. Main Engines: 2 x Mirrlees 8MG28HLX total 8,000BHP. CP prop(s). Kort nozzle(s). 1 - 680kW Stern thruster. Bowthruster 2 - 680kW. Bollard Pull: 120MT. Speed abt. 10-14.4kn on 9.3-26.4MT/day. Genset(s): 2 - 350kW, 1 - 99kW 440v 60Hz 3ph. 2 - 1,700m3/h fire pumps, 2 water/foam monitors. Quarters: 4-1,3-2,8-4 berth cabins. Southeast Asia. July 2013. File: TG80214 Tug - Twin Screw - 237.5' loa x 42.6' beam x 19.7' depth x 17.70' draft. Built in 1977 at Miyoshi Zosen; Uwajima, Japan. GRT: 1,819. Class: ABS + A1 Towing + AMS, Unrestricted. Deadweight: 1,825T. FO: 1,380T. FW: 230T. BW: 192T. Winch: Double Drum 340T brake. Wire Capacity: 2 - 1,200m x 64mm. Main Engines: 2 x Niigata 8M640X total 8,000BHP. Fixed Pitch nozzle rudder prop(s). Kort nozzle(s). Endurance: 80 days. Bowthruster 470BHP. Speed about 12-14kn on 16-24Tpd. Genset(s): 2 - 280kW / Yanmar 470HP 445/110v 60Hz. Quarters: 18 total. Air Conditioned. Main towing wire renewed end 2011. Open for tows worldwide sub prior commitment. 82T ABS Certified bollard pull. Far East. Prompt.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

100

Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG74146 Tug - Twin Screw - 146.0' loa x 40.0' beam x 20.5' depth x 12.30' light draft x 18.00' loaded draft. Built in 1976 at D.M. Kremer Sohn; Germany. GRT: 823. Class: ABS + A1 + AMS exp. Deadweight: 753lt. Deck Cargo: 170T on 50' x 18' clear deck. FO: 167,462g. DW: 13,713g. Winch: Surken Bodewes double drum + 10T tugger. Line Pull: 440,000lbs. Wire Capacity: 5,640' x 2.5". Stern Roller. Main Engines: 2 x B&W 14U28L4 total 7,420BHP. 2 - CP prop(s). Kort nozzle(s). Alpha. Bowthruster 450BHP. Bollard Pull: 100MT. Genset(s): 3 - 220kW; 1 - 80kW 400vAC 60Hz. Quarters: 16 crew (4-1, 4-2, 1-4). Pax: 4. Anchor handling tug. Shark jaw, open stern. Mid East. File: TG60169 Tug - Twin Screw - 163.4' loa x 39.5' beam x 20.7' depth x 18.00' loaded draft. Built in 1977 at Eides; Germany. Class: IBS (Panama). FO: 147,952g. FW: 34,346g. DW: 30m3. Winch: Norwinch D/D waterfall. Wire Capacity: 4,000' x 2"; 3200' x 2.25". Stern Roller. Main Engines: 2 x EMD 20-645 total 7,200BHP. Last Overhaul: 2001. CP prop(s). Kort nozzle(s). Bowthruster 400HP. Bollard Pull: 80T. Speed about 8.5kn. Genset(s): 2-194kW, 1-145kW/Scania, 380v 50 Hz. Quarters: 21. Repowered with EMDs in 2001. Tug in operating condition. Try reasonable offers “as is, where is”. South America West Coast. File: TG72113 / TG72114 Tugs – Azimuthing (2 each) - 111.5' loa x 44.3' beam x 20.0' depth. Built in 2013 Turkey. GRT: 685. Class: RINA C + Hull + Mach, Unrestricted Nav, Aut-Ums, Escort Tug, FiFi 1. FO: 220m3. FW: 20m3. BW: 80m3. Crane: Knuckle Boom 31.5MT. Winch: Ridderinkhof TW-H-450 (aft);65T tow hook. Wire Capacity: 200m x 88mm. Stern Roller. Main Engines: 2 x ABC 12MVDZ total 7,200BHP. Schottel SRP 2020 CP prop(s). Range: 3,000nm. Bowthruster Schottel 268BHP. Bollard Pull: 80T. Speed about 13.5kn. Genset(s): 2 - 240kW; 1 - 80kW. FiFi-1; Water/Foam monitor 1,200m3/hr; Water/Foam 300m3/hr. Quarters: 12. RAstar 3400 design. Mediterranean. File: TG70142 ATB Tug - Twin Screw - 149.5' loa x 37.0' beam x 19.8' depth. Built in 1971 by at Main Iron Works; Houma, LA. Honduras flag. GRT: 759. Reclassing to RS. Formerly ABS + A1. FO: 163,172g. LO: 2,596g. FW: 7,346g. BW: 40,801g. Winch: Markey-Smatco modified. Recently overhauled. Wire Capacity: 3,000' x 2.25". Main Engines: 2 x EMD 20-645E5 total 7,200BHP at 900RPM. Falk 4048 MRVP gear(s). Fixed Pitch prop(s) on Stainless shaft(s). Genset(s): 2 - 157kW. Articulated pusher tug with Intercon linkage system. Upper pilothouse. Height of eye 38.5' / 57.0' lower / upper. New stern fendering. Sold to present Owner by Marcon. Caribbean. File: SU19346 Supply Boat - AHTS - 193.5' loa x 40.1' beam x 18.4' depth x 14.00' draft. Built in 1975 at Bolsnes Werft. Panama flag. Class: International Maritime Bureau. Deadweight: 942mt. Deck Cargo: 570T on 111' x 32' deck. FO: 236,168g. FW: 58,646g. DW: 736MT. Dry Bulk: 6,000ft2. Winch: Brattvaag double drum. Wire Capacity: 1,200m. Stern Roller. Main Engines: 2 x Nohab F216V825 total 7,040BHP. Liaaen CP prop(s). Kort nozzle(s). Bowthruster 600HP. Bollard Pull: 80MT. Genset(s): 2 275kW; 1 - 192kW 440vAC 60Hz. Quarters: 12 crew / 18 supers. UT 704 design. Photos, 2009 drydock work summary, certificates on request. Marcon sold this vessel in 1991. Laid up but going into dry-dock April 2013. Reportedly to be sold in class. U.S. Gulf Coast. File: TG70146 Anchor Handing Tug - Twin Screw - 146.7' loa x 39.4' beam x 20.3' depth x 18.50' draft. Built 1977 at Kremer & Sohn; Germany. RINA. Formerly GL 100A4, E, +MC, AUT 24/24. Tug/Ship. Ice Class E. Special Survey due 05/2017. Deck Cargo: 150T on 150m2 deck. FO: 670m3. FW: 79m3. Winch: Double drum waterfall hydraulic + Mampey 100T SWL hook. Wire Capacity: 2 x 1,000m 56mm. Stern Roller. Main Engines: 2 x MAK 12M453AK total 6,900BHP. Kort nozzle(s). Becker rudders. Bowthruster 436BHP. Bollard Pull: 90MT. Speed 8.5-13.5kn on 10-19MT/d. 600m3/h fire pump. Genset(s): 2 - 438kVA / shaft; 1 - 187.5kVA, 1 260kW 50Hz. Water & water/foam monitor. Quarters: 6-1, 5-2 & 2-4 berths. Passengers: 8. Open stern. Karm Fork shark jaws & 2 tuggers. See also DB21451 & DB24677. Mediterranean. File: TG67112 Tug - Azimuthing - 110.0' loa x 40.0' beam x 18.0' depth x 16.50' loaded draft. Built in 1997 at Trinity Marine: Lockport, LA. U.S. flag. GRT: 199. Class: ABS + A1 Towing Service + AMS. FO: 96,000g. FW: 12,000g. Crane: 5T Hyd/telescopic. Winch: 2 182T tow/164T bow Netec. Wire Capacity: 2,200' x 2.25” / 600' x 10" Spectra. Main Engines: 2 x Wartsila 6R32E total 6,700BHP. Last Overhaul: 2011. US3001/3600 Aquamaster prop(s). Abt running 3,500hrs as of April 2013 since o'haul. Bollard Pull: 88.16ST. Genset(s): 2 - 135kW / CAT3306. Firefighting: 1 - 1,500gpm monitor. 3,400g foam capacity. Air Conditioned. Passed ABS 5 year certification summer 2011 when refurbished, main drives overhauled, etc. Complete list of repairs and refurbishment available. Both Z-drives removed and rebuilt in 2004. Marcon brokered sale to current Owner in 2011. Turn key and available prompt for BB Charter or outright purchase. No sale restrictions. U.S. Northwest. Prompt.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

101

Marcon International, Inc. Tug Boat Market Report – May 2013

File: SU19756 Supply Boat - AHTS - 197.6' loa x 42.6' beam x 19.7' depth. Built in 1977 at Maritima de Axpe S.A., Bilbao. Rebuilt: 2007. GRT: 1,194. RINA, 100 A 1.1 Ap (pl), Re, Rec Oil, Tow, PSV, Unrestricted. Drydocking due April 2012. Deadweight: 1,100mt. 36m x 10.5m deck. FO: 442m3. Dry Bulk: 267m3. Liq. Mud: 171m3. Winch: Double drum Norwinch waterfall. Main Engines: 2 x MAK 9M453AK total 6,600BHP. Lips CP prop(s). Kort nozzle(s). Bowthruster 350BHP. Bollard Pull: 87MT. Genset(s): 3 - 360kW / 440vAC 60Hz. FiFi 1. 24 berths. Marcon sold to present owner. Substantially rebuilt & refurbished in ‘07. Laid-up out of class. Owners will consider offers above scrap. Mid East. File: TG66148 Tug - Twin Screw - 147.9' loa x 43.9' beam x 19.7' depth x 15.74' draft. Built 1992 at Southern Ocean, S'pore. GRT: 920. Class: ABS A1 AMS Unrestricted. Special Survey completed 09/2007. Deadweight: 631mt. Light Disp.: 879mt. Deck Cargo: 300MT on 18.5m x 10m clear deck. FO: 440m3. FW: 220m3. BW: 100m3. Winch: Double drum hydraulic Brattvaag. Line Pull: 160T SWL. Stern Roller. Main Engines: 2 x Stork Werkspoor 8SW280 total 6,600BHP. CP prop(s). Independent Ulstein Rudders. Bowthruster 335BHP. Dynamic Positioning. Bollard Pull: 75.54T. Speed about 12-14kn on 15-17Tpd. Pump(s): FW: 100m3@60m, BW: 50m3/H: FO: 6m3/h. Genset(s): 3 - 250kW 415vAC 50Hz + 1-50kVA. FiFi 1,500m3/hr. Quarters: 15 in 9 cabins. Passengers: 2 double cabins. Push bow. Shark jaw. Tow pins. Full anchor handling & tow gear. Enclosed winch house. Mid East. File: SU20538 Supply Boat - AHTS - 205.0' loa x 42.1' beam x 16.5' depth x 14.10' loaded draft. Built in 1983 at McDermott Shipyard Inc.; LA. Vanuatu flag. GRT: 1,012. Class: ABS + A1, Towing Service (E) + AMS, Unrestricted Service. Deadweight: 1,260T. Light Disp.: 1,100T. 102' x 30' clear deck. Liq. Mud: 1,083BBL. Main Engines: 2 x EMD 16-645-E7B total 6,140BHP. Bowthruster. Speed about 12kn. Genset(s): 2 - 150kW AC. Quarters: 20 berths. Laid up. U.S. Gulf Coast. File: SU21943 Supply Boat - AHTS - 219.8' loa x 42.0' beam x 16.0' depth x 13.80' loaded draft. Built in 1982 at Halter Marine. Mexico flag. GRT: 996. Class: ABS + A1 (E) AMS, Towing Service. Deadweight: 1,200T. Deck Cargo: 637 on 108' x 32' clear deck. FO: 196,900g. FW: 14,600g. Dry Bulk: 6,000ft3. Liq. Mud: 2,222BBL. Winch: Fritz Culver. Stern Roller. Main Engines: 2 x EMD 16-645E7B total 6,140BHP. 2 - FP prop(s). Kort nozzle(s). Bowthruster 535. Quarters: 24. Shark Jaws. U.S. Gulf Coast. File: SU19700 Supply Boat - AHTS - 197.0' loa x 177.2' lbp x 42.7' beam x 19.7' depth x 16.30' loaded draft. Built in 1983 at Ast. de Murueta; Gernika-Lumo, Spain. GRT: 1,113. NRT: 304. Class: GL+100 A5 "E" Supply Vessel Tug +MCE, AUT-Z. Continuous Hull Survey due 05/2013. Deadweight: 1100mt. Deck Cargo: 650ST on 36.4m x 10.8m deck. Deck Load: 5mt/m2. FO: 424m3. LO: 13.44m3. FW: 217m3. DW: 321m3. Dry Bulk: 170m3 in 4 tanks. 3 - 1,590kg anchor on 350m ,34mm chain/wire Windlass: 15mt. Crane: 1-1,500kg electric. Winch: Norwinch double drum waterfall. Line Pull: 150T. Wire Capacity: 320m / 1,275m 56m. Stern Roller. Main Engine(s): 2 x MAK 9M435AK total 6,120BHP at 550RPM. Lips CP prop(s) in kort nozzle(s). Bowthruster 550HP. Dynamic Positioning. Bollard Pull: 70MT. Genset(s): 3 - 350kVA Indar / Guascor E202TA 440vAC. Firefighting: FiFi 1. 21,200m3/h water / foam monitors. Foam capacity 15m3. Gyro. Autopilot. Radars: 2. GPS. Fathometer. SSB. VHF: 2. Navtex. Quarters: 36 berths in 11 cabins. Air Conditioned. 2-95m3 chain lockers. Wildcats for 2.5 - 4" chain. 2-8T tugger winches. 1-5T capstan. 100T shark jaws. 2 hydraulic tow pins. Spare wire capacity 1,275m 56mm Dual purpose recovered oil / liquid mud / fuel capacity 321m3. Kongsberg Simrad SDP-II DP system with 2 gyros, 2 wind sensors, 2 motion reference units, DGPS with spot beam, and 3 axis control independent joystick installed 2000. 2-6m long spray booms with 20m3 dispersant. Inspection: Mid East. File: SU19743 Supply Boat - AHTS - 198.4' loa x 177.2' lbp x 43.8' beam x 20.0' depth x 16.20' draft. Built in 1975 at Schichau-Unterweser; Germany. GRT: 1,190. Class: RINA.100 A.1.1 Nav. I.L., Re. AP. IA12, Ice Str. Deadweight: 1116mt. Deck Cargo: 800mt on 37.0m x 10.97m deck. FO: 827m3. FW: 236m3. DW: 480m3. Dry Bulk: 267m3. Liq. Mud: 252m3. Crane: 1-5mt & 1-2.5mt. Winch: Norwinch Double Drum. Line Pull: 150T. Wire Capacity: 1,000m 57mm / 250m 48mm. Stern Roller. Main Engine(s): 2 x MAK 9M453AK total 6,000BHP at 550RPM. CP prop(s) in kort nozzle(s). Bowthruster 320HP. Bollard Pull: 58mt. Speed about 11-14.5kn. Genset(s): 3-450kVA / CAT D379, 1-92.5 kVA / Deutz 440vAC 60Hz. Quarters: 12 crew. Passengers: 16. 2 dedicated under-deck rig chain lockers. Capable of carrying 80 joints of 32" pipe. Fitted with special anchor chain & equipment for 200m water depths. 2-10MT tuggers. 2-5MT capstans. Spare wire capacity 1,200m 57mm. Fuel capacity includes the dual purpose liquid mud tanks. 2-8m pollution control spray booms with 15mt capacity dispersant tank. Sale “as is, where is”. Inspection: Mid East.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

102

Marcon International, Inc. Tug Boat Market Report – May 2013

File: SU19901 Supply Boat - AHTS - 199.6' loa x 42.6' beam x 20.3' depth x 16.56' draft. Built in 1983 at Hudong; Shanghai, China. Belize flag. GRT: 1,252. Deadweight: 1,171T. Deck Cargo: 600T on 98.4' x 33.5' deck. FO: 451T. FW: 234T. DW: 525T. Dry Bulk: 6,000ft3. Winch: Norwinch double drum. Wire Capacity: 2 - 1,100m x 57mm. Stern Roller. Main Engines: 4 x MAN 12V20/27 total 6,000BHP. 2 - B&W CP 4-blade 108" dia. prop(s). Kort nozzle(s). Engines independently declutchable. Bowthruster 6.5T. Bollard Pull: 78MT. Speed about 10.8-14kn on 10.2Tpd. Pump(s): FO, DW & FW: 100m3/h. Genset(s): 2 - 245kW / MAN; 2 - 268kW / shaft 440vAC. 2 - 1,200gpm monitors. Quarters: 16 officers/crew. Pax: 12 berths. 60m3 chain lockers. Can operate on one or two shafts producing 1,500, 3,000, 4,500 or 6,000BHP. Southeast Asia. File: SU20142 Supply Boat - AHTS - 201.0' loa x 42.0' beam x 20.3' depth x 16.40' draft. Built in 1975 at Yokohama Shipyard. Rebuilt: 2002. GRT: 1,163. ABS + A1 (E) Towing, + AMS. Deadweight: 1,262mt. Deck Cargo: 500MT on 30 x 10m deck. FO: 520MT. FW: 247MT. DW: 390T. Crane: Hydraulic 2,500kg. Winch: Fukushima waterfall; 2 tuggers; 2 capstans. Wire Capacity: 800m 64mm / 100m 38mm. Stern Roller. Main Engines: 2 x Niigata 12MGV28BX total 6,000BHP. Bowthruster 287BHP. Bollard Pull: 63.5MT. Genset(s): 3 - 205kW/CAT 3306 440vAC 60Hz. Quarters: 30 in 4-1, 9-2, 2-4 cabins. 150T Shark jaws & 100T pins. 800m spare tow wire. Mid East.

File: TG57149 Tug - Twin Screw - 142.9' loa x 38.0' beam x 20.6' depth. Built in 1981 at Yokohama Shipyard; Japan. Panama flag. GRT: 723. Class: GL, +100A5 Offshore Supply Vessel, Tug. Deadweight: 550mt. Deck Cargo: 500T on 74.63m2 deck. FO: 567.26m3. FW: 178.34m3. BW: 198.02m3. Dry Bulk: 6,000ft3. Liq. Mud: 700BBLS. Crane: 1 - 8ST @ 10m. Winch: 12T tugger; Double drum waterfall. Stern Roller. Main Engines: 2 x EMD 16-645E7A total 6,000BHP. 2 - CP prop(s). Kort nozzle(s). Bowthruster 4.7T. Bollard Pull: 98MT. Speed about 10.5-11kn. Genset(s): 2 - 300kW; 1 - 140kW 415v 50Hz. Quarters: 25 persons. Mid East. File: TG60127 ATB Tug - Twin Screw - 136.5' loa x 37.1' beam x 20.0' depth x 18.20' draft. Built in 1979 at Main Iron Works; Houma, LA. U.S. flag. GRT: 176. Class: ABS + A1 Towing Service + AMS. Unrestricted. FO: 129,842g. FW: 4,939g. BW: 35,654g. Winch: Markey TDS-36 single drum. Wire Capacity: 2,200' x 2.25". Main Engines: 2 x EMD 16-645E7 total 6,000BHP. Cast steel FP prop(s) on Stainless shaft(s). Avg. speed loaded 9.73kn on 6,825gpd. Speed about 10.1kn free on 5,346gpd. Genset(s): 2 - 99kW. Air Conditioned. Galley. Ocean-going push tug, Raised foc'stle bow. Elevated pilot house. 64' highest fixed point. 98.25' highest point above keel. Laid-up. Docking and tail shaft surveys due January 2013. U.S. Gulf Coast. File: SU19407 Supply Boat - AHTS - 194.2' loa x 40.2' beam x 17.4' depth x 13.58' loaded draft. Built 1978 at Carrington Shipway; Australia. Vanuatu flag. GRT: 1,060. ABS A1(E) & AMS, ACCU. Deadweight: 1,038T. Deck Cargo: 550MT on 95.12' x 31.16' deck. FO: 568m3. FW: 173m3. DW: 326m3. Dry Bulk: 42.5m3 in 4 tanks. Liq. Mud: 100m3. Crane: 1 - 1.5T @ 6m hydraulic. Winch: Double drum waterfall Smatco. Line Pull: 175MT. Wire Capacity: 2 - 1,200m x 58mm. Stern Roller. Main Engines: 2 x EMD 16-645E7A total 5,750BHP. 2 - CP prop(s). Kort nozzle(s). Bowthruster. Speed about 11.5-14kn on 10-15MT/d. Genset(s): 2 - 400kW & 1 - 142kW 415v 50/60Hz. Class 1 FiFi - 2 - 2,400m3/hr @ 140m head. Quarters: 12. Air Passengers: 19. 5T/m2 deck load. 300MT shark jaws with tow pins. Southeast Asia. File: SU22641 Supply Boat - AHTS - 226.0' loa x 40.0' beam x 17.0' depth. Built in 1976 at Halter Marine. U.S. flag. Class: ABS + A1, E, (expired Jan 2011). Deadweight: 1,213lt. Deck Cargo: 800LT on 140' x 31' clear deck. FO: 86,000g. FW: 16,000g. DW: 186,100g. Dry Bulk: 8,000ft3. Crane. Winch: Double drum Smatco DAW 250. Line Pull: 300,000lb. Wire Capacity: 2,500' x 2.25". Main Engines: 2 x EMD 16-645E7 total 5,750BHP. 120" x 90" prop(s). Full tow 5,200gpd / 85% @ 4,800gpd / 80% @ 4,000gpd. Bowthruster. Dynamic Positioning. Bollard Pull: 59LT. Genset(s): 2 150kW AC. 19 berths in 8 cabins. Stretched hull in 1997. Laid up. Joy-stick controls, DP1. U.S. Gulf Coast. File: TG57142 Tug - Twin Screw - 126.0' loa x 36.0' beam x 18.6' depth x 16.18' draft. Built 1978 at Main Iron Works, LA. Foreign flag. GRT: 528. ABS + A1 + AMS, Towing Services exp. June 2013. FO: 112,000g. FW: 24,000g. Winch: Smatco 66DAW double drum waterfall; 150T brake. Wire Capacity: 2,952'. Stern Roller. Main Engines: 2 x EMD 16-645E7 total 5,750BHP. FP prop(s). Kort nozzle(s). Bowthruster. Speed about 12kn free. Pump(s): FiFi; 5,000gpm / GM16V71. Genset(s): 3 - 95kW / GM8V71 230/115vAC 60Hz. Firefighting: 1 - water / foam monitor. Foam - 3,408g. Quarters: 16. Air Conditioned. 2 - 5T berthing winches forward. Tug fitted with two flanking rudders. Reportedly good condition. Reduced price. 200T Shark jaws and tow pins. Mid East.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

103

Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG57148 Tug - Twin Screw - 136.2' loa x 36.5' beam x 19.2' depth x 17.00' light x 20.00' loaded draft. Built 1970 at J.R. McDermott Shipyards; Amelia, LA. Rebuilt: 2013. U.S. flag. GRT: 194. ABS + A1 Towing Service + AMS. Unrestricted Service. ABS International Loadline. FO: 155,000g. FW: 15,000g. Winch: Markey TDSDW 36C Double Drum. Wire: None. Main Engines: 2 x EMD 16-645E5 total 5,750BHP. 5 - blade stainless prop(s). Triple Rudder. 05/2013 All machinery & gearboxes gone thru for ABS. Bollard Pull: 67ST. Genset(s): 3 - 60kW / CAT D3304. Air Conditioned. Freshly drydocked with new ABS five year Special Survey & loadline. New keel coolers. Internals very good condition with a lot of new steel. Fresh paint. Refurbished interior with new carpeting, laminates & paint. For outright sale. Try longterm bareboat charter to qualified parties. Docking and topside photos available. Sold to present Owner through Marcon. U.S. Northwest. File: TG56145 Tug - Twin Screw - 145.6' loa x 37.2' beam x 17.2' depth x 16.31' loaded draft. Built in 1976 at H.H. Bodewes; Holland. Belize flag. GRT: 490. Class: BV 1 3/3 E-Ocean Going Tug. Deadweight: 509T. Deck Cargo: 150T on 55.7' x 24.6' deck. Deck Load: 5MT/m2. FO: 326T. FW: 11,888g. DW: 59,175g. Crane: 1 - 1.1T @ 6m. Winch: Elec./hyd. Double drum waterfall. 80T hook. 2 - 8MT tuggers. Line Pull: 130MT. Wire Capacity: 1,100m x 52mm. Stern Roller. Main Engine(s): 2 x MWM TBD441V16 total 5,600BHP Kamewa gear(s). CP Kamewa prop(s) in kort nozzle(s). 2 flap rudders. 9kn on 9T. Bowthruster 200BHP. Bollard Pull: 80.5MT. Genset(s): 2-180kW, 1-75kVA; 1-82kVA 380/220v 50Hz. 650m3/h monitor. Quarters: 6-1, 5-2 man. Anchor handling tug. Bow heavily fendered. Bollard pull GL Certified. Inspection: Mid East. File: TG54103 Tug - Azimuthing - 105.0' loa x 38.0' beam x 17.6' depth. Built in 2012 at Turkey. GRT: 500. Class: RINA C + Hull + Mach, Unrestricted Navigation, Aut-Ums, Escort Tug, FiFi 1. Deadweight: 1,025. Crane: Knuckle Boom 14MT. Winch: Hyd single drum; 65T tow hook. Wire Capacity: 1,000m x 52mm. Stern Roller. Main Engines: 2 x Wartsila 6L26 total 5,467BHP. 2 - LIPS type HR nozzle prop(s). Range: 3,000nm. Bowthruster. Speed about 13kn. Pump(s): Fire pumps. Genset(s): 2 - 175kW /Scania; 1 - 60kW. Firefighting: Water/Foam monitor 1,200m3/hr, water/foam 300m3/hr. Quarters: 10 persons. Air Conditioned. Ramparts 3200 design escort tug. Bollard pull: 70T ahead; 66T astern @ 100% MCR 5,467BHP. Towing pins. Mediterranean. File: TG53103 Tug - Azimuthing - 99.3' loa x 38.5' beam x 19.00' loaded draft. Built in 2012. Foreign flag. Class: BV1 + Hull + Mach, Escort Tug, AUT-UMS, FIFI 1, Unrestricted Service. FO: 173,000L. FW: 109,000L. BW: 49,000L. Crane: [email protected]. Winch: Hawser 35MT & 175MT brake aft tow; 70MT tow hook. Line Pull: 30MT. Wire Capacity: 700m & 350m 52mm aft. Main Engines: 2 x CAT 3516B HD-DITA total 5,364BHP. CP Rolls Royce 2.6m dia. prop(s). Holland box coolers. Bollard Pull: 70MT. Speed abt. 13kn free. Genset(s): 2 - 81kW / Cummins 400vAC 50Hz 3ph. Firefighting: 2 - 1,200m3 Skum monitors. Water curtain. 16,000L foam. Quarters: 10 crew. Props: Rolls Royce US-255CP or Schottel SRP1515CP. ASD Robert Allen 3070E design terminal / escort / towage / FiFi-1 stock design tug. Skeg forward. Several modified versions of Robert Allan Ramparts 3000 design boats under construction which can be powered between 50 to 80 tons bollard pull. Mediterranean. File: SU19257 Supply Boat - 192.5' loa x 47.9' beam x 18.0' depth x 15.74' draft. Built in 2005 at Yuexin; Panyu, China. Singapore flag. GRT: 1,470. Class: BV I + Hull & Mach, Unrestricted, FiFi 1. Deadweight: 1,400mt. Deck Cargo: 500MT on 350m2 deck. FO: 475m3. FW: 230m3. DW: 460m3. Dry Bulk: 1,650ft3 in 4 tanks. Liq. Mud: 254m3. Crane: None. Winch: Double Drum Elec/hyd. 2 - 5T capstans. 2 - 10T tuggers. Line Pull: 150MT@6m/m. Wire Capacity: 2 - 1,000m x 56mm. Stern Roller. Main Engines: 2 x CAT 3516B total 5,150BHP. Berg CP in nozzles prop(s). Kort nozzle(s). Bowthruster 315kW. Bollard Pull: 65MT. Speed about 10-13kn on 1219m3/d MGO. Pump(s): FO: 150m3/h; FW: 100m3/h; DW: 100m3/h; Liq Mud: 2 - 70m3/h. Genset(s): 3 - 320kW / CAT 3408DITA; 1 - 52kW 415vAC 3ph 50Hz. Firefighting: Class 1. Water curtain all round. 1,200m3/h; 300-1,200m3/h monitors. Quarters: 2-1, 4-2, 8-4 berth cabin. Air Conditioned. Galley. Passengers: 1 - 1 berth hospital. Foam / detergent 14m3 each. 300MT SWL Karmfork. Elec/hyd towpins with turntable top flaps. Southeast Asia. May 2013. File: TG52131 Tug - Twin Screw - 131.2' loa x 118.1' lbp x 42.7' beam x 17.7' depth x 15.02' loaded draft. Built in 1982 at Korea Shipbuilding & Engineering. GRT: 626. Class: BV I Tug Coastal Area. Deadweight: 464mt. FO: 360T. LO: 1.46m3. FW: 40T. BW: 87T. Crane: 2 - 3T. Winch: Hydraulic I.P. Huse. Main Engine(s): 2 x MWM TBD441 16K total 5,200BHP at 900RPM. Reintjes gear(s). 3-180kW / MWM TD232V8 Bowthruster 350HP. Bollard Pull: 69T. Speed about 10kn on 8mt/d. Genset(s): 3 - 180kVA AEG / MWM 60Hz AC. Firefighting: 52m3 foam capacity. Three fire monitors. Inspection: Mid East.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

104

Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG50139 Tug - Azimuthing - 117.1' loa x 37.7' beam x 18.4' depth x 15.90' draft. Built 2011. Class: RINA I +Hull +Mach / FiFi Ship 1 / Water Spray / Unrestricted / AUT-UMS. FO: 313.1m3. FW: 48.8m3. BW: @55.8m3. Crane: Palfinger hyd 2,960kg @ 4m. Winch: Double drum hydraulic aft + 70T SWL tow hook & tow pins. Wire Capacity: 2 - 750m x 52mm. Stern Roller. Main Engines: 2 x ABC 8DZC total 5,095BHP. Schottel 1515 CP 2,600mm dia prop(s). FiFi pumps PTO both M/E. Range @ 2,000nm at @ 6kn towing speed. Bowthruster 150kW. Bollard Pull: @65MT. Speed about @13kn trial on 14MT/d. Genset(s): 3 - 126kW / Volvo Penta 400vAC 50Hz 3ph. Firefighting: Foam 17.4m3. 2 - 1,400m3/hr pumps. 2 - Skum water / foam monitors. Quarters: 3-1,1-2,2-4 berth cabins. Air Conditioned. Newbuilding multipurpose ASD tug. Steel hull almost completed. Two sister tugs previously delivered. Dispersant @ 17.4m3. Endurance 22 days. Full fendering. Dispersant booms. Mediterranean. File: TG50134 Tug - Twin Screw - 134.6' loa x 32.8' beam x 17.9' depth x 15.25' loaded draft. Built in 1977 at Cantiere Morini Ancona; Italy. GRT: 539. Class: Rina 100A1 1* FiFi 1. Deadweight: 341T. Deck Cargo: 60T on 9.6mx4.1m deck. Deck Load: 2.8MT/m2. FO: 260m3. LO: 18T. FW: 40T. Crane: 2 - 3T capstan; 2 - 3T @6.7m. Winch: 1 - DD tow winch (Norwinch). Wire Capacity: 700m @ 51mm. Stern Roller. Main Engine(s): 2 x MAK 6M453AK total 5,000BHP at 610RPM. 2 - CP Fixed prop(s) in kort nozzle(s). Range: 4,800nm. Bowthruster 350BHP. Bollard Pull: 72T. Speed about 12-14kn on 16T. Genset(s): 3 160kVA 380v 50Hz; 1 - 120kVA. Firefighting: 2 - 1,500m3/h / Kvaerner pumps; 2 1,200m3/hr / Silvanimon. Quarters: 22 (4-1, 3-2, 3-4). 70T tow hook. FiFi upgraded in '95. Inspection: Mid East File: TG49096 Tug - 105.0' loa x 42.0' beam x 17.6' depth x 13.70' loaded draft. Built in 2014 at Southeast Asian yard. Singapore flag. GRT: 500. Class: ABS + Hull + ABCU, FiFi 1, Escort, Oil Rec. FO: 187m3. FW: 35m3. Winch: FWD 81MT, AFT 54MT + Capstan. Line Pull: 200T brake. Main Engines: 2 x Niigata 6L28HX total 4,929BHP. 2 - Niigata ZP 41Z prop(s). BP astern 60MT. Bollard Pull: 65MT. Genset(s): 2 - 130kW / Volvo. Firefighting: 1,400m3/h pump + monitor. Foam: 13m3, Dispersant: 13m3. Quarters: 10 persons. 2 identical sister vessels for delivery in 14/15 months. Tow pins / Stern roller. Recovered oil Capability with 64m3 tankage for recovered oil. Newbuild RAstar Tug. Southeast Asia. 14-15 months. File: TG48699 Tug - Azimuthing - 99.2' loa x 36.1' beam x 17.3' depth x 14.90' draft. Built 2012. Foreign flag. BV1 + Hull + Mach, Tug, FiFi 1, AUT-UMS, Oil Rec, Unrestricted Nav. FO: 177,000L. FW: 27,000L. Crane: [email protected] foldable. Winch: 120T brake fore & aft Kraaijeveld + tow hook. Line Pull: 30T. Wire Capacity: 2 450m 46mm aft. Main Engines: 2 x CAT 3516 HD DITA B total 4,860BHP. CP Rolls Royce 2,400mm dia prop(s). Bollard Pull: 60MT. Genset(s): 2 - 81kW / Cummins 380vAC 50Hz. Firefighting: 2 - 1,500m3 pumps; 2 - 1,200m3 Skum monitors. Water curtain. Quarters: 9 crew. Robert Allan stock newbuilding design ASD 3060. Recovered oil capacity 40,000L. Foam 16,400L. Data hydraulic tow pins. “W” and "D" fendering. Props: Rolls Royce US 205 CP or Schottel. Several modified versions can be powered between 50 to 80 tons bollard pull. Mediterranean. File: SU19440 Supply Boat - AHTS - 194.0' loa x 40.0' beam x 17.0' depth x 15.00' loaded draft. Built in 1974 at Halter Marine, Inc. Rebuilt: 1993. Panama flag. GRT: 758. Class: BV. (Formerly ABS) FiFi "1". Deck Cargo: 500MT on 104' x 32' clear deck. FO: 110,390g. FW: 109,271g. BW: 21,928g. Dry Bulk: 80m3 in 4 tanks. Liq. Mud: 200m3. Winch: Smatco Double drum + 1 - 7MT & 1 - 5MT Tuggers. Line Pull: 125T. Stern Roller. Main Engines: 2 x MWM TBD441V16 total 4,800BHP. Last Overhauled: 2008. 2 - Fixed 4 blade prop(s). Range 8,920nm. Bowthruster 300HP. Bollard Pull: 48T. Speed about 13kn on 3,460gpd. Genset(s): 2 - 300kW / GM12V-71 440/220vAC; 1 - 85kW / CAT3304. Firefighting: 2 - 2,400m3/hr monitors, SOLAS. Foam - 20.4m3. Quarters: 12 crew. Passengers: 15. Southwest Asia. File: TG47105 Tug - Twin Screw - 104.7' loa x 29.0' beam x 14.4' depth x 11.2' draft. Built 2004 at Damen, Holland. GRT: 296. LRS + 100A1 Tug LMC. Next DD due March 2014. 101m2 deck. FO: 159.1m3. Crane: 6T deck crane. Winch: AH / Towing Winch & Tow Hook (65T SWL). Line Pull: 18MT@1m/mi. Wire Capacity: 550m x 2". Stern Roller. Main Engines: 2 x CAT 3516TA HD/B total 4,750BHP. 2 - FP Bronze Promarin prop(s). Kort nozzle(s). Bollard Pull: 67MT. Speed about 13.4kn. Pump(s): FiFi pump 300m3/h. Genset(s): 2 - 86kVA / Cummins, 1 - 60kVA / Cummins. Firefighting: 1 - 300m3/h water / foam monitor. 9.6m3 foam. Quarters: 8 in 4 cabins. Ocean towing & anchor-handling. 5.3m3 dispersant. Mexico East Coast. File: SU19148 Supply Boat - AHTS - 194.0' loa x 40.0' beam x 15.0' depth x 12.60' draft. Built in 1983 at Eastern Marine. U.S. flag. GRT: 275. Class: ABS + A1 exp. Mar 2008. Deadweight: 1,114T. Light Disp.: 1,988lt. Deck Cargo: 770LT on 108' x 31' deck. FO: 77,040g. FW: 12,000g. DW: 163,560g. Dry Bulk: 5,400ft3. Liq. Mud: 1,600BBL. Winch: Smatco 66 DAW 200 Double Drum +5T tugger. Line Pull: 250,000lb. Wire Capacity: 2,550' x 2.25". Stern Roller. Main Engines: 2 x EMD 16-645E7D3A total 4,500BHP. Bowthruster 300HP. Bollard Pull: 40.8T. Speed about 9-14kn on 83-203gph. Genset(s): 2 - 99kW 450v 60Hz. Firefighting. 18 crew in 7 cabins. For sale “as is, where is” out of competition. U.S. Gulf Coast.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

105

Marcon International, Inc. Tug Boat Market Report – May 2013

File: SU18847 Supply Boat – AHTS - 188.6' loa x 178.8' lbp x 38.4' beam x 18.4' depth x 14.80' draft. Built in 1974 at J.G. Hitzler, W. Germany. Rebuilt: 2001. GRT: 910. Class: Lloyds 100 A1. Deck Cargo: 500LT on 98.4' x 32.8' deck. FO: 400MT. FW: 132T. DW: 296MT. Dry Bulk: 186m3. Crane: 10MT. Winch: Hitzler. Line Pull: 250,000lb. Wire Capacity: 2,624' of 57mm. Stern Roller. Main Engine(s): 2 x MWM TBD441V12 total 4,600BHP. CP 3-blade prop(s) Bowthruster 400HP. Bollard Pull: 60MT. Genset(s): 2 - 140kVA; 1 420kVA 400v 50Hz. FiFi: 600m3 pump + 10,000L monitor. 23 in 12 cabins. Mid East. File: TG45132 Tug - Twin Screw - 131.2' loa x 38.7' beam x 14.9' depth x 10.50' loaded draft. Built in 2012. Foreign flag. Class: ABS A1 AMS Towing. 120m2 clear deck. FO: 281m3. FW: 61m3. total 4,500BHP. Bollard Pull: 52T. Speed about 12kn. Passengers: 18. Multi-purpose AHT. Far East. Prompt. File: SU13729 Supply Boat - AHTS - 137.8' loa x 36.1' beam x 16.1' depth x 13.61' draft. Built in 2011. GRT: 499. Class: BV I + Hull + Mach Special Service Multi-purpose AHT Unrestricted Navigation. 160m2 deck. FO: 363.53m3. FW: 78.49m3. Crane: 1.25MT/8MT @ 9.75m/2m. Winch: Double Drum 180MT brake. Line Pull: 65MT. Wire Capacity: 52mm x 1,000m; 600m x 52mm. Stern Roller. Main Engines: 2 x Cummins QSK60-M total 4,400BHP. Kort nozzle(s). Bowthruster 335BHP. Bollard Pull: 60MT. Speed abt 14kn. Genset(s): 2 245kW 400v 50Hz; 1 - 60kW. 2 - monitors 1,000m3/h @135m; Foam: 9.27m3. Quarters: 22 persons. Hydraulic shark jaw: 200MT. Tow pin: 200MT. Far East. Prompt. File: SU18943 Supply Boat - AHTS - 189.9' loa x 43.3' beam x 16.1' depth x 14.43' loaded draft. Built in 1972 at Carrington Slipways; Australia. Foreign flag. GRT: 883. Class: LR Ocean (disc. 05/2001) now Isthmus. Deck Cargo: 500T on 27.4m x 10.1m clear deck. FO: 275T. FW: 115T. DW: 320m3. Dry Bulk: 3,500ft3. Winch: Double drum Swaan/CATD334. Main Engines: 4 x Daihatsu 8PSHTCM26D total 4,400BHP. 2 prop(s). Kort nozzle(s). Bowthruster 3.5T. Bollard Pull: 50MT. Speed about 10kn. Genset(s): 2 - 250kW / CAT D343 415vAC 50Hz. Firefighting: 120Tph. Quarters: 24 total. Inviting best offers. Mid East. File: SU19629 / SU19630 / SU19645 Supply Boats - AHTS (3 each) - 196.8' loa x 46.6' beam x 19.7' depth x 16.70' draft. Built in 2012 at Chinese shipyard. GRT: 1,576. Class: BV 1 + Hull + MACH + DYNAPOS AM/TR, Supply Vessel, Tug, Special Service AHTS, OSV, Standby, FiFi 1, Unrestricted. Deadweight: 1,974mt. Deck Cargo: 600T on 330m2 deck. FO: 578.6m3. FW: 296.9m3. DW: 234.4m3. Dry Bulk: 136m3. Liq. Mud: 220.55m3. Crane: 2T with 9.75m outreach. Winch: Double drum 200T brake; 2 - 5T capstans; 2 - 10T tuggers. Wire Capacity: 1,000 x 52mm. Stern Roller. Main Engines: 2 x CAT 3516B total 4,400BHP. Berg CP prop(s). Stern thruster 400kW. Bowthruster 2 - 550kW. Bollard Pull: 56T. Speed about 12kn. Pump(s): Liqmd: 2 - 30-60m3/h dual speed Desmi. Genset(s): 1-245kW/CAT 3406C, 2-450kW, 1-100kW 400vAC 50Hz 3ph. Firefighting: 2 - 1,550m3/h pumps; 300/1,200m3/h foam/sea-water FFS monitor. Quarters: 46 persons (2-1, 16-2, 3-4). FiFi-1. Hydraulic shark jaws & tow pins 200T. Kongsberg K-POS DP-21 system. Far East. File: TG44072 / TG44073 Tugs- Azimuthing (2 each) - 98.4' loa x 35.4' beam x 17.7' depth x 11.81' loaded draft. Built in 2008 at Hong Kong, China. Hong Kong flag. GRT: 469. Class: BV1 + Hull + MACH, Salvage Tug / Utility Boat / FiFi I Unrestricted Navigation. FO: 250m3. FW: 110m3. Crane: [email protected] / 8MT@2m SWL. Winch: 1-Electro Hyd Tow winch 100MT; 1-Electro Hyd Anchor & Tow winch 80MT. Main Engines: 2 x Cummins QSK60M total 4,400BHP. 2 - Aquamaster prop(s). Bowthruster. Bollard Pull: 66.8MT. Genset(s): 3 116kW / Perkins 400v 50Hz. Quarters: 2-1, 2-2, 2-4 cabins. Bollard pull ahead 66.8MT & 63.6MT astern. Southeast Asia. Prompt. File: TG44144 Tug - Twin Screw - 124.6' loa x 35.4' beam x 16.4' depth x 13.10' draft. Built in 2013 at Malaysian shipyard. Malaysia flag. GRT: 494. Class: BV. FO: 324MT. FW: 116MT. BW: 27MT. Winch: Double drum waterfall 150T SWL. Stern Roller. Main Engines: 2 x Cummins QSK 60-M total 4,400BHP. Kort nozzle(s). 3MT E-pod thruster system. Bowthruster 125kW. Bollard Pull: abt 53MT. Speed about abt 12kn. Genset(s): 2 - 250kW / Cummins 415vAC 3ph 50Hz. FiFi 1/2. 2 - 600m3/hr monitors. 1,400m3/hr pump. Quarters: 2-1, 1-2, 3-4 berth cabins. Anchor handling tug. 1 - 10T tugger. 1 - 5T capstan. 150T SWL shark jaw & tow pins. Water spray. Southeast Asia. July 2013. File: TG44148 Tug - Twin Screw - 124.6' loa x 38.7' beam x 15.7' depth x 12.40' draft. Built in 2010. GRT: 149. ABS + A1 + AMS AHT Offshore Support Vessel, SOLAS. Deadweight: 314T. Deck Cargo: 300T. FO: 320m3. FW: 150m3. Crane: 1 - 2T @ 6m. Winch: Macgregor-Plimsoll Double drum 150T brake; 2 - 10T Tugger. Wire Capacity: 2-1,000m x 52mm. Stern Roller. Main Engines: 2 x Cummins QSK60 total 4,400BHP. 2,300mm Kaplan FP prop(s). Kort nozzle(s). Bowthruster 1 - 5T. Bollard Pull: 65T. Speed about 12.5-13.5kn. Genset(s): 3 - 245kW / CAT 3406 415v 3ph 50Hz. FiFi: 1-1,200m3 Pump; 2 600m3/h monitors. Quarters: 2-1, 2-2, 4-3. 2-5T capstans, 1,000m storage reel, & Plimsoll Smit Berger shark jaws / tow pins. Sale or charter. Southeast Asia.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

106

Marcon International, Inc. Tug Boat Market Report – May 2013

File: SU18238 Supply Boat - AHTS - 182.0' loa x 38.1' beam x 16.0' depth x 12.70' loaded draft. Built in 1975 at Brogogradiliste Tito; Yugoslavia. GRT: 467. Class: RINA. FFQ1 (Corresponding to Fifi 1). + 100 A.1.1 NAV I.L. Deadweight: 813T. Deck Cargo: 430T on 82' x 30.84' deck. FO: 515m3. FW: 223m3. DW: 177m3. Dry Bulk: 172m3 in 4 tanks. Liq. Mud: 103m3. Winch: Smatco 66 DAW 200 waterfall. Line Pull: 124T. Wire Capacity: 2" 1523m. Stern Roller. Main Engine(s): 2 x B&W 14V23LVO total 4,340BHP CP prop(s) in kort nozzle(s). Alpha Bowthruster 300HP. Bollard Pull: 55MT. Genset(s): 2 - 180kVA 380vAC 50Hz. Firefighting: 2 1,400m3/h monitors. 2 pumps. Quarters: 13. Air Conditioned. Passengers: 6. Anti-pollution fitted. 2 spray booms. 6.86m3 tank cap. Recovered oil capacity 76m3. Inspection: Mid East. File: TG43410 Tug - Azimuthing - 108.6' loa x 31.5' beam x 16.4' depth x 14.00' draft. Built in 1987 at Cochrane-Selby; U.K. GRT: 376. Class: LR 100A1 Tug. Deadweight: 297T. FO: 198.6m3. FW: 22.47m3. BW: 70.61m3. Winch/windlass forward & hook aft. Main Engines: 2 x Ruston 6RK270M total 4,340BHP. Aquamaster US2001/3150 prop(s). Astern pull @ 50MT. Bollard Pull: 55MT. Firefighting: 2 foam/water 300m3/h @ 120m. Quarters: 8. Harbor/coastal terminal tug. Oil dispersal tank 14.2MT. Foam 31.72m3. Special Survey & docking completed October 2012. South America West Coast. Q3-Q4 2013. File: TG46110 Tug - Twin Screw - 110.0' loa x 32.1' beam x 12.5' depth x 12.90' light draft. Built in 1976 at Delmar Systems, Larose LA. Rebuilt: 1990. U.S. flag. GRT: 168. ABS Loadline exp. Oct 2013. Last DD Oct 2011. FO: 78,000g. FW: 5,000g. Winch: Double drum Intercon / CAT. Line Pull: 250,000lb. Wire Capacity: 2,400' / 2,000'. Main Engines: 2 x CAT 3606 total 4,300BHP. 101" x 70" prop(s) on 10" shaft(s). Kort nozzle(s). Bollard Pull: 59.12T. Genset(s): 2 - 75kW / GM6-71. Quarters: 11 bunks. Sheer bow. Single drum bow winch with wildcat. U.S. West Coast. Prompt. File: SU19632 Supply Boat - AHTS - 196.0' loa x 42.0' beam x 17.0' depth x 14.80' loaded draft. Built in 1983 at Goole Shipbuilders; Goole, U.K. Vanuatu flag. GRT: 806. Class: ABS A1 AMS Special Survey date 09/2008. Deadweight: 1,018T. Light Disp.: 1,040T. 111' x 33' clear deck. FO: 198T. Liq. Mud: 2,000BBL. Main Engines: 2 x Mirrlees 6MB275 total 4,224BHP. 2 - CP prop(s). Bowthruster. Speed about 12.5kn on 10Tpd. Genset(s): 2 - 500kW 440vAC 60Hz; 1 - 250kW. Quarters: Total 24 persons. Sale subject to management approval. Southeast Asia. File: TG42177 Tug - Twin Screw - 160.0' loa x 36.1' beam x 16.4' depth x 14.76' draft. Built in 1978 at Kochi Jukogyo Kochi; Japan. India flag. GRT: 969. Class: Indian Registry of Shipping. Deadweight: 704mt. FO: 575MT. FW: 215MT. Crane: 1-Hiab 180 Sea Crane 10T max. Derrick: 110T SWL. Winch: Double drum waterfall with quick release. Wire Capacity: 640m x 64mm. Stern Roller. Main Engines: 2 x Niigata 6MG31EZ total 4,200BHP. CP Kamome steering prop(s). Kort nozzle(s). Endurance: 45 days. Bowthruster 300HP. Bollard Pull: 48MT. Speed about 10-12kn on 9Tpd. Pump(s): 3 - 300m3/h portable and 1 - 640m3/h fire. Genset(s): 2 - 250kVA / Yanmar 6RALT 440v 3ph 60Hz. FiFi 1/2: 2 - 300m3/h water & 1- 600m3/h water/foam monitors. Quarters: 12 crew. Passengers: 12 clients. Salvage and anchor handling tug. 1,000m 54mm spare wire. 2 each tuggers on main deck and forward. Mid East. File: SU18064 Supply Boat - AHTS - 180.0' loa x 164.0' lbp x 39.4' beam x 14.1' depth x 11.90' draft. Built in 1972 at Burton Shipyard; Port Arthur, TX. GRT: 558. Class: BV 1 Tug Unrestricted Navigation, SS due in 2014. Deadweight: 1145 Deck Cargo: 471 on 108' x 31.5' deck. FO: 250T. FW: 400m3. Dry Bulk: 57m3 in 4 tanks. Crane: 3T. Winch: Markey Model TDSD-28 D/Drum. Line Pull: 113T. Wire Capacity: 610m x 45mm. Stern Roller. Main Engine(s): 2 x EMD 16-567 BCRL total 4,200BHP at 850RPM. Bowthruster 300HP. Bollard Pull: 50MT. Speed about 8.5kn on 5.8T/d. Genset(s): 2 - 75kW 220vAC 60Hz. Quarters: 16 total. Working. Reportedly in good condition. Mid East. File: TG40114 Tug - Twin Screw - 114.1' loa x 32.9' beam x 14.3' depth x 13.61' draft. Built in 1977 at Langsten Slip & Batbyggeri; Norway. Class: ABS + A1 Towing, AMS, ACCU (disc). Special Survey /Drydock overdue 11/2010. FO: 348,100L. FW: 35m3. Crane: 1 - 2T Hydraulic. Winch: Hydraulic single drum 120T brake. Line Pull: 65T. Wire Capacity: 900m x 45mm. Stern Roller. Main Engine(s): 2 x Wichmann 7AXA total 4,200BHP at 300RPM. VP prop(s) in kort nozzle(s). 8,500nm range. Bowthruster 275BHP. Bollard Pull: 48MT. Speed about 11kn max on 454Lph. Genset(s): 2 - 226kVA / Volvo. Firefighting: 50m3/hr. 13 in 8 cabins. Anchor handling salvage tug. Suitable to handle anchors up to 10T. 5MT/d watermaker. Requires drydocking. Reportedly maintained on regular basis and in good condition with respect to hull and main engines. Mediterranean. Prompt. File: SU17444 Supply Boat - AHTS - 173.8' loa x 43.6' beam x 19.7' depth x 14.76' draft. Built in 1983 at Torrens; Australia. GRT: 1,141. ABS A1 (E), AMS, ACCU. Deadweight: 1,503T. Deck Cargo: 575MT on 86.92' x 36' deck. FO: 554m3. FW: 727m3. Winch: Norwinch double drum waterfall. Wire Capacity: 2-900m x 52mm. Stern Roller. Main Engines: 2 x Nohab F38A total 4,040BHP. CP prop(s). Kort nozzle(s). Bowthruster. Bollard Pull: 65MT. Genset(s): 2 - 150kW, 2 40kW 415v 50Hz. FiFi class 1, 2 - 2400m3/hr @ 120m head. 300MT shark jaws. Southeast Asia.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

107

Marcon International, Inc. Tug Boat Market Report – May 2013

File: SU17739 Supply Boat - AHTS - 170.0' loa x 40.0' beam x 16.5' depth x 13.97' draft. Built in 1972 at Adelaide Ship Const. Rebuilt: 2000. India flag. GRT: 817. Indian Register of Shipping. Deadweight: 730mt. Deck Cargo: 400T on 30m x 10m deck. FO: 330MT. FW: 521MT. Dry Bulk: 150m3. Crane: 1 - 3.5T. Winch: Double drum 112mt SWL Smatco + 2-7T tuggers. Wire Capacity: 600m x 52mm. Stern Roller. Main Engines: 2 x EMD 16-645E2 total 4,000BHP. Bowthruster 280BHP. Bollard Pull: 45mt. Speed 10-12kn max. Genset(s): 2 - 100kVA / GM6-71; 1 - 65kVA 415v 50Hz. FiFi 1/2. Quarters: 12 crew / 12 clients. LSA in accordance with SOLAS. Mid East. File: SU18948 / SU18950 Supply Boats - AHTS (2 each) - 190.0' loa x 44.0' beam x 16.0' depth x 8.00' light draft x 13.60' loaded draft. Built in 1999 at Eastern Marine, Panama City, FL. U.S. flag. GRT: 1,004. Class: ABS + A1 + AMS USCG Sub L. Not SOLAS. Valid COI – exp. May 2017. Deadweight: 1,310mt. Light Disp.: 844mt. Deck Cargo: 440MT on 4,041ft2 clear deck. FO: 68,704g. FW: 8,650g. DW: 221,341g. Dry Bulk: 7,200ft3. Liq. Mud: 2,053BBL. Calcium Chloride / Brine: 86,258g. Winch: Smatco 72 DAW double drum waterfall + tugger. Line Pull: 134LT. Stern Roller. Main Engines: 2 x CAT 3516B total 4,000BHP. 2,590mm stainless prop(s). Bowthruster 500HP. Bollard Pull: 42MT. Speed about 1112kn on 108-210gph. Genset(s): 2 - 175kW / CAT 3306. Firefighting: 1 @ 1,000gpm. Quarters: 18 berths / 7 cabins. Fritz Culver tow pins & Smith Berger stern roller. Sold by Marcon in 2001 to last operator. May consider charter subject to credit review. U.S. Gulf Coast. File: SU18939 Supply Boat - AHTS - 189.0' loa x 39.0' beam x 16.4' depth x 13.80' draft. Built in 2012 at Chinese shipyard. GRT: 981. CCS Class 1 + Hull + Mach, Tug, Coastal Navigation. FO: 503T. FW: 319T. Winch: Single drum 400KN brake. Main Engines: 2 x Guangchai 6320ZCd-6 total 4,000BHP. Kort nozzle(s). Stern thruster: 85kW. Range: 3,000nm. Bowthruster 85kW. Bollard Pull: 48MT. Speed about 12kn. Genset(s): 3 - 160kW / Main, 1 - 75kW / Port 400vAC 50Hz. Firefighting: Pump: 50m3/h, Nozzle: 2 - 144m3/h @ 55m. Quarters: 14 persons. Far East. File: SU19738 AHTS / Support Vessel - 197.8' loa x 38.7' beam x 17.4' depth. Built in 1997 at Ishii Zosen; Japan. Panama flag. GRT: 998. Class: NKK, Ocean Going International SOLAS Compliant. Deadweight: 1,174T. Deck Cargo: 500T on 98.4' x 32.8' clear deck. FO: 450m3. FW: 514m3. Winch: Waterfall, 70T brake. Wire Capacity: 46mm-1,000m. Main Engines: 2 x Yanmar 6N260EN total 4,000BHP. 2 - Variable pitch prop(s). Kort nozzle(s). 13,500nm range. Bowthruster 520BHP. Bollard Pull: 45T. Speed about 12.5-14.25kn. Genset(s): 2 - 250kVA 440/220vAC 60Hz; 1 - 125kVA 440/220vAC 60Hz. Quarters: 40. 14-1, 5-2, 2-4 & 1-8 man rooms. Joystick control. 2 - 7T tuggers. Africa West Coast. Prompt. File: TG40192 Tug - Twin Screw - 111.5' loa x 103.9' lbp x 34.1' beam x 16.4' depth x 14.40' loaded draft. Built in 2003 at PT Batamec; Batam, Indonesia. Mexico flag. GRT: 394. Class: ABS, A1, AMS. FO: 53,000g. LO: 990g. FW: 18,500g. BW: 25m3. Windlass: Hydraulic. Winch: 50T Double drum waterfall. Main Engine(s): 2 x CAT 3516B total 4,000BHP. 2 - FP prop(s) in kort nozzle(s). Bollard Pull: 41ST. Speed about 11kn on 125gph. Genset(s): 2-152kW/Cummins 415v 50Hz; 1-32kW/Yanmar emerg. Quarters: 14. Fendering bow, sides and stern. U.S. Gulf Coast File: TG42143 Tug - Twin Screw 131.2' loa x 114.5' lbp x 38.7' beam x 15.1' depth x 12.50' light x 13.60' loaded draft. Built 2010 at Zongshan Jinhui Shipbldg; China. GRT: 498. Class: BV 1 Tug/Anchor Handling, + Hull + MACH AUT-UMS, Unrestricted to May 2015. Deck Cargo: 125MT / 6TEU on 159m2 deck. Deck Load: 5T/m2. FO: 300,000L. FW: 150,000L. Crane: 220T/m Promac deck. Winch: Double drum waterfall 150T brake. Wire Capacity: 2 - 800m x 48mm. Main Engine(s): 2 x CAT 3516B-HD total 4,000BHP. Kort nozzle(s). Range 12,000nm free or 6,500nm with tow. Bowthruster 320kW. Bollard Pull: 53MT. Speed abt 12kn free Genset(s): 2 - 245kW / CAT 3406 + CAT C18 415vAC 50Hz. Quarters: 14 in 7 cabins. Air Conditioned. Tow pins. Highly maneuverable and suitable for combined towing & anchor handling tug. Built under European supervision. Since had many improvements including strong 14T @ 2m deck crane, powerful bow thruster, new navaids, improvement in Chinese electrical system, and renewal of toilets, galley & mess room. Reportedly in excellent condition in accordance with high west-European standards. Periodically also open for employment. Call for latest on availability and rate / price. File: TG39145 Tug - Twin Screw - 143.8' loa x 34.9' beam x 16.6' depth x 14.90' draft. Built 1972 at ScHPw. Bodewes Millingen. Rebuilt: 2010. GRT: 545. LR + 100 A1 Tug LMC. Special Survey due 04/2015. Deck Cargo: 70MT on 144m2 deck. FO: 220.66MT. FW: 55MT. Norwinch double drum waterfall. Wire Capacity: 850m 52mm. Stern Roller. Main Engines: 2 x Stork Werkspoor 6SW280 total 3,940BHP. CP prop(s). Kort nozzle(s). Becker rudders. Repowered 996. Bowthruster 200BHP. Bollard Pull: 60T. Speed about 14kn free. Genset(s): 3 - 119kW 440vAC 60Hz. Two water jet monitors. Quarters: Total 13 persons. Anchor handling & firefighting. 2-12T tugger winches. 1-5T capstan. Two retractable towing pins. Prompt.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

108

Marcon International, Inc. Tug Boat Market Report – May 2013

File: SU18587 Supply Boat - AHTS - 185.0' loa x 40.0' beam x 14.0' depth x 12.10' loaded draft. Built in 1983 at Halter Marine; Gulfport, MS. Malaysia flag. GRT: 722. Class: AB + A1 Tow Service (E) + AMS. Deadweight: 841T. Light Disp.: 555T. 93' x 32' clear deck. Liq. Mud: 914BBL. Main Engines: 2 x EMD 16645CE6 total 3,900BHP. 2 - FP prop(s). Bowthruster. Speed about 12kn. Genset(s): 2 - 150kW. Firefighting. Quarters: 16 crew. For sale “as is, where is” out of competition. Southeast Asia. File: TG38106 Tug - Twin Screw - 110.0' loa x 32.4' beam x 14.0' depth x 6.70' light draft. Built in 1970 at Main Iron Works, Houma, LA. U.S. flag. GRT: 190. Class: ABS + A1, Towing Service. FO: 55,135g. FW: 2,055g. DW: 32,351g. BW: 21,225g. Winch: Markey Single Drum. Line Pull: 120ST. Wire Capacity: 2,000' x 2.125". Main Engines: 2 x EMD 16-645E2 total 3,900BHP. 2 - FP 108" x 76" 4 blade prop(s). Bollard Pull: 47.7ST. Speed about 8.5-10kn on 80-95gph. Genset(s): 2 - 60kW / GM6-71 480v 60Hz 3ph. Firefighting. Quarters: 10 in 5 cabins. Air Conditioned. Galley. Raised pilot house. Laid up. Marcon sold several similar tugs from these owners. U.S. Gulf Coast. File: TG39096 Tug - Twin Screw - 125.0' loa x 32.0' beam x 17.9' depth x 13.00' light draft x 18.00' loaded draft. Built in 1973 at Southern Shipbuilding. U.S. flag. GRT: 173. Class: Ex ABS. Now Loadline only. Last DD November 2008. FO: 112,450g. FW: 10,370g. Crane: 1,250lb. Winch: Markey double drum. Main Engines: 2 x EMD 16-645E6 total 3,900BHP. 2 - 4 blade prop(s). Genset(s): 2 - 148BHP / John Deere 6068T. Quarters: 6. Upper pilot house. Minimum air draft 60'. H-bitt forward. Readily inspectable. All certificates and inspections are up to date. Reportedly in excellent condition. U.S. East Coast. Prompt. File: TG39121 Tug - Twin Screw - 120.0' loa x 29.2' beam x 11.0' depth. Built in 1964 at Burton Construction; Port Arthur, TX. U.S. flag. GRT: 197. Class: ABS Loadline allowed to Lapse. 28'x27' clear deck. FO: 38,000g. FW: 8,000g. Winch: Markey single drum. Wire Capacity: 1,800' x 1 5/8". Main Engines: 2 x EMD 16-567D total 3,900BHP. 2 - FP prop(s). Originally powered with EMD12-567Cs. 170gph. Genset(s): 2 - 60kW / GM6-71 Delco 120/240v 60Hz. Firefighting: Full USCG lifesaving & firefighting equipment. Quarters: 10 berths in 4 cabins. Air Conditioned. Galley. Copy of April 2009 survey available on request. Vessel reportedly in good condition for age. U.S. Gulf Coast. 3Q 2013. File: TG40140 Tug - Single Screw - 131.3' loa x 115.2' lbp x 34.5' beam x 20.5' depth x 18.00' draft. Built in 1976 at Holland Bodewes Millingem. GRT: 444. Class: BV 1 Tug, Unrestricted Nav. 27' x 27' clear deck. FO: 198MT. FW: 10.5MT. BW: 15MT. Winch: Single drum. Line Pull: 100T. Stern Roller. Main Engine(s): 1 x MAN R7V40154 total 3,900BHP at 430RPM. Kort nozzle(s). Bowthruster 2 - 350BHP. Bollard Pull: 60T. Speed about 14kn Genset(s): 2 - 250kW / CAT D353. One fire monitor. 7 crew cabins. Dispersant - 72MT. Offered on P&C basis. Mid East. File: TG36001 Tug - Single Screw - 161.4' loa x 36.5' beam x 19.7' depth x 16.45' loaded draft. Built in 1967 at St. John SB & DD; St. John, Canada. Canada flag. GRT: 799. FO: 240MT. FW: 50MT. Crane: 11.5MT. Winch: Burrard hydraulic double drum. Wire Capacity: 3,000' of 2". Stern Roller. Main Engine: 1 x Polar Nohab M69TS 3,750BHP. KaMeWa CP prop. Bowthruster 1,150BHP. Bollard Pull: 50MT. Speed 12.8kn. Genset(s): 2 - 250kW / CATD353; 1 - 30kW 450vAC 60Hz. Quarters: 7 berths. Retractable azimuthing bowthruster. Reinforced to a standard 50% in excess Ice Class I. Steel work & hull reportedly good. Stern roller, tow pins and tow hook. Sale “as is, where is”. Canada East Coast. File: TG36171 Tug - Twin Screw - 121.4' loa x 37.4' beam x 16.2' depth x 13.12' loaded draft. Built in 2011 at Shin Yang Shipyard Sdn Bhd; Miri. Malaysia flag. GRT: 476. Class: Nippon Kaiji Kyokai NS *(AHV/TV)/MNS, MPP, LSA, RCF, AFS. Docking due 08/2014. Tail shafts & Special due 08/2016. Deadweight: 350mt. 10m x 10m deck. FO: 280m3. FW: 80m3. Winch: Double drum 150T brake, 5T tugger. Stern Roller. Main Engines: 2 x Cummins KTA-50-M2 total 3,600BHP. 4.65m FP 4-blade prop(s). Kort nozzle(s). Bowthruster 3.5T. Bollard Pull: 47.48T. Speed about 12.2kn max on 11T/day MDO. Pump(s): FO/BW/Bilge: 36m3/h each. Genset(s): 2 - 150kW / Cummins 6CTA8.3 415vAC 50Hz. Firefighting: FiFi 1/2. Quarters: 14 (2-2, 21, 2-4). Galley. 100T shark jaw and tow pins. Mooring drum capacity 100m x 72mm. Southeast Asia. File: TG40162 Tug - Single Screw - 151.4' loa x 37.2' beam x 20.1' depth x 18.45' light draft x 23.3' draft. Built 1971 at F. Schichau. GRT: 859. Class: GL + ICOA4E Tug + MC AUT-16/24. Ice strengthened. FO: 746m3. FW: 56m3. Winch: Suerken Double Drum SW 20/2. 50T tow hook. Line Pull: 150T. Wire Capacity: 1,500m x 46mm. Main Engines: 2 x MAK 8MU452AK total 3,600BHP. 1 - FP prop(s). Kort nozzle(s). 4T/day consumption economic free towing. Cruising range 18,000nm. Bowthruster 250BHP. Bollard Pull: 55T. Speed about 11.6kn on 8Tpd towing. Genset(s): 1 - 210kVA / MWM 380vAC 50Hz; 2 - 210kVA / Deutz. Firefighting: FIFI -180m3/h pump. Water/foam monitor. Quarters: 19 in 1-2 man rooms. Europe. Prompt.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

109

Marcon International, Inc. Tug Boat Market Report – May 2013

File: SU15734 Supply Boat - AHTS - 157.4' loa x 38.7' beam x 15.0' depth x 12.40' loaded draft. Built in 2007 at China. Belize flag. GRT: 675. Class: BV + Class 1 + Hull + Mach "Tug". Deadweight: 1112T. 300m2 deck. Deck Load: 5.1MT/m2. FO: 535m3. FW: 185m3. Crane: 1 - 1T @ 15m. Winch: 1 - 50T Elect. Hyd. Tow winch; 1 - 5T @ 15m/min Tugger. Stern Roller. Main Engine(s): 2 x CAT 3512 total 3,500BHP. 2 - FP prop(s) in kort nozzle(s). Bowthruster 5T. Bollard Pull: 40T. Speed about 12kn. Genset(s): 3 - 215kW / CAT 415v 3ph 50Hz. Firefighting: 2 - monitors 600m3/hr; 1 - pump 1200m3/hr @ 14bar. Quarters: 28 berths. File: SU18602 Supply Boat - AHTS - 186.0' loa x 43.0' beam x 15.9' depth x 13.20' loaded. Built in 1977 at Taiwan Shipping Corp; Taiwan. India flag. GRT: 992. Class: Indian Register of Shipping. Deadweight: 1,142T. Deck Cargo: 600MT on 28m x 10.5m deck. FO: 851m3. FW: 168m3. DW: 885m3. Dry Bulk: 6,000ft3. Winch: 200T brake Hatlapa double drum waterfall. 2 - 6T tuggers. Wire Capacity: 800m x 48mm. Stern Roller. Main Engines: 2 x Deutz SBA12M528 total 3,500BHP. Kort nozzle(s). New GM12V71 thruster engine in 12/96. Bowthruster 400BHP. Bollard Pull: 45MT. Speed about 10-12kn on 5.8-13.3Tpd. Genset(s): 2 - 220kW / Deutz, 1- 435kVA / Cummins. Firefighting: 2 125m3/h @ 93m head monitors. Quarters: 12 crew berths. Passengers: 12 berths. Winch fitted with 2.5" chain wildcats & capable of fitting 3" wildcats. 5,382ft3 rig chain lockers. Southwest Asia. File: TG29118 Tug - Tractor - 116.9' loa x 38.5' beam x 19.3' depth x 16.40' loaded draft. Built in 1970 at N.V. ScHPs. H. Bodewes; Netherlands. Curacao flag. GRT: 359. Class: ABS (formerly BV) + A1 Towing Service + AMS Unrestricted Nav. Special survey due June 2015. Deadweight: 163T. Winch: Double drum. Main Engines: 2 x Stork Werkspoor 8FEHD240 total 3,400BHP. Voith Schneider prop(s). Repowered '80. Bollard Pull: 39MT. Genset(s): 2 - 77kW, 380vAC 50Hz. Firefighting: 2 monitors. Central America. File: TG34090 / TG34091 Tugs - Azimuthing (2 each) - 99.1' loa x 32.1' beam x 17.1' depth x 13.98' draft. Built in 1996 at Taiwan Machinery Mfg.; Kaohsiung. GRT: 360. China Corporation Register. Last drydocked March 2012. Deadweight: 127mt. FO: 88,000L. FW: 34T. Winch: 90T brake aft + 50T tow hook. Line Pull: 36T@7m/min. Wire Capacity: 100m x 80mm & 48mm. Main Engines: 2 x Wartsila 8L20 total 3,400BHP. 2 - SRP FP 4-blade prop(s) forward mounted. Bollard Pull: 36T. Speed about 9.5-11kn on 13.9-16.8Tpd. Pump(s): 300m3/h @ 120m fire. 300Lpm @ 3% 12 bar foam. Genset(s): 2 - 160kW / MAN D2886TE 450vAC. Firefighting: 2 monitors 18-28m water/foam range @ 45 deg. 4.8m3 foam. Azimuthing tractor tugs. Far East. Prompt. File: TG34012 Tug - Twin Screw - 124.6' loa x 119.1' lbp x 38.7' beam x 15.7' depth x 12.46' loaded draft. Built in 2006 in Malaysia. Malaysia flag. Class: ABS + A1 (E) AHT + AMS. Deadweight: 400T. Deck Cargo: 300MT on 150m2 deck. Deck Load: 5MT/m2. FO: 332m3. LO: 4.0m3. Winch: Elect. Hyd. Double drum. Line Pull: 80T. Main Engine(s): 2 x Cummins KTA50M2 total 3,400BHP. Kort nozzle(s). Range 5,500nm @ 10kn. Bowthruster 4T tunnel. Bollard Pull: 42T. Speed about 12kn Genset(s): 2 - 150kW / CAT 3406C 415v 3ph 50Hz. Quarters: 2-1, 2-2,3-4 man berths. Air Conditioned. Shark jaw & tow pins. 120 ton stern roller. Inspection: Southeast Asia. File: TG35093 Tug - Azimuthing - 92.8' loa x 29.4' beam x 11.6' depth x 15.75' loaded draft. Built in 1985 at R. Dunston (Hessle); U.K. Panama flag. GRT: 216. Class: Formerly LR + 100A1 Tug + LMC. Restricted service until 12/2010. Deadweight: 63T. FO: 24.5T. FW: 7.6m3. BW: 51T. Winch: 50T SWL tow, hyd. Capstan & tow hook. Main Engines: 2 x Ruston 6RK270M total 3,400BHP. Last Overhauled: 1999. Aquamaster UL1251/3280 prop(s). Bollard Pull: 45T max. Speed about 11.7kn. Genset(s): 2 - 90kVA / Cummins 6TS9DM 415vAC 50Hz installed 1999. Quarters: 8 (2-2, 4-1). Working. File: SU18142 Supply Boat - AHTS - 180.0' loa x 38.0' beam x 14.0' depth x 6.00' light draft x 10.50' loaded draft. Built in 1975 at American Marine; New Orleans, LA. Rebuilt: 1998. Philippines flag. GRT: 220. Class: ABS + A1, Towing vessel + AMS. Unrestricted. Last Drydock 01/2011 when passed Special Survey. Deadweight: 550T. Deck Cargo: 487MT on 105' x 30' clear deck. FO: 475kL. FW: 453MT. Dry Bulk: 4,000ft3 in 4 tanks. Liq. Mud: None. Crane: New 3T in Jan. 2011. Winch: Smatco DAW-66 double drum Waterfall + tugger. Line Pull: 100MT. Wire Capacity: 2 - 695m x 2". Stern Roller. Main Engines: 2 x EMD 16-567BC total 3,280BHP. 2 - FP prop(s). All machinery overhauled in January 2011. Bowthruster 210HP. Bollard Pull: 26MT. Speed about 9-11kn on 7-8.5Tpd. Genset(s): 2 - 75kW / GM6-71 & 1 - 100kW / GM6V71. Quarters: 12. Air Conditioned. Galley. Passengers: 7. Vessel totally rebuilt October 1998 with abt. 80T steel renewal & completely refurbished. Completed USD 600K of equipment upgrade during 12/08 dry dock period. Drybulk tanks/system not operational. Worked for majors & passed IMCA audit in Oct. 2012. Operated in Far East for more than 12 years with zero downtime. Ideal for towing, survey, seismic, offshore support / stand-by, supply, off-take operations, etc. Interested in longterm charter or outright sale. Western Pacific.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

110

Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG32038 Tug - Twin Screw - 105.0' loa x 96.0' lbp x 30.0' beam x 14.0' depth x 11.50' draft. Built in 2007 at SL Shipbuilding; Sibu, Malaysia. U.S. flag. GRT: 296. NRT: 88. Class: BV 1. FO: 211MT. LO: 5m3. FW: 32MT. BW: 50m3. Winch: Single drum. Line Pull: 40T. Main Engine(s): 2 x Cummins KTA50M2 total 3,246BHP at 1,800RPM. FP prop(s) in kort nozzle(s). Bollard Pull: 40T. Speed about 11kn free on 9Tpd. Genset(s): Cummins 6CTAB. No Jones Act. File: TG32044 Tug - Twin Screw - 100.1' loa x 87.0' lbp x 29.5' beam x 13.9' depth. Built in 2009 at Nantong Huigang Shipbuilding. Singapore flag. GRT: 262. Class: ABS + A1, Tow vessel (E) + AMS. Deadweight: 203mt. FO: 185MT. Main Engine(s): 2 x Cummins KTA50M2 total 3,244BHP at 1,800RPM. 2 - FP prop(s). Bollard Pull: 45T. Genset(s): 2 -99kW AC. Inspection: Mid East. Delivery: Prompt. File: TG34118 Tug - Twin Screw - 118.1' loa x 101.7' lbp x 34.1' beam x 16.4' depth x 12.50' light draft x 13.60' loaded draft. Built in 2011 at Guangzhou Panyu Shipyard; China. GRT: 459. Class: BV 1 + Hull + Mach, AUTUMS valid to July 2016. Deadweight: 500mt. Deck Cargo: 90MT/6TEU on 120m2 deck. Deck Load: 5MT/m2. FO: 290,000L. FW: 100,000L. Winch: 50MT Double drum waterfall. Stern Roller. Main Engine(s): 2 x Cummins KTS-50-M2 total 3,244BHP in kort nozzle(s). Range abt. 11,000nm / 6,000nm light / with tow. Bowthruster 320kW. Bollard Pull: 42MT. Speed about 12kn free Genset(s): 2 - 95kW / Cummins 400vAC 50Hz. Air Conditioned. Fitted with tow pins. Highly maneuverable tug / utility vessel suitable for combined towing & anchor handling. Built under European supervision and since had many improvements powerful bow thruster, new navaids, improvement in Chinese electrical system, and renewal of toilets, galley & messroom. Reportedly in excellent condition in accordance with high west-European standards. No deck crane installed yet, but pedestal incorporated in hull structure. Periodically also open for employment. Call for latest update on availability and rate / price ideas. Europe. Delivery: Prompt. File: TG25001 Tug - Single Screw - 124.5' loa x 31.0' beam x 17.5' depth x 15.00' loaded draft. Built in 1966 at St John SB & DD; St. John, Canada. Canada flag. GRT: 451. Class: LR+100 A1 Ice Class II. +LMC. Disc. 05/2008. FO: 236MT. Winch: Single drum hydraulic & tow hook. Wire Capacity: 50.8mm 762m + spare. Main Engine: 1 x Polar Nohab M68T 3,200BHP. CP steering prop(s). Kort nozzle(s). Exhaust line stack insulations needs replacing. Bollard Pull: 34MT. Speed about 14kn on 12Tpd. Genset(s): 2 - 200kW / CATD353 450vAC60Hz. Needs new gensets. Quarters: 10 berths. Laid up. Canada East Coast. Prompt. File: TG32128 Tug - Twin Screw - 99.2' loa x 29.5' beam x 13.1' depth x 11.48' draft. Built in 1973 at Towa Shimonoseki; Japan. India flag. GRT: 269. Class: IRS. Deadweight: 177mt. FO: 75MT. FW: 25MT. Winch: Single drum hydraulic tow, quick release hook & 1 - 2T capstan. Wire Capacity: 500m x 38mm. Main Engines: 2 x Hanshin 6LUD32 total 3,200BHP. CP Steerable Nozzles prop(s). Bollard Pull: 33MT. Speed about 10kn free. 2 - 240-540m3/h fire pumps. Genset(s): 2 - 93kVA / Yanmar 440v 50Hz. 12 berths. Southwest Asia. Prompt. File: TG32034 Tug - Twin Screw - 105.0' loa x 29.5' beam x 11.8' draft. Foreign flag. Class: GL. Main Engines: 2 x Cummins total 3,200BHP. Speed 12kn. Quarters: 16 men. Tug can be finished out in about two months. Southeast Asia. File: TG32039 Tug - Twin Screw - 127.9' loa x 31.2' beam x 14.8' depth x 11.50' draft. Built in 1981 at Teraoka Shipyard; Minamiawaji, Japan. GRT: 465. Class: ABS + A1 Towing Service + AME Unrestricted - Suspended. 80m2 deck. FO: 333.4m3. FW: 83.6m3. Crane: Palfinger 3T @ 7.5m 24m boom. Winch: Double drum waterfall + capstan. Line Pull: 50T@12m/mi. Wire Capacity: 1,000m/150m 37.5mm. Main Engines: 2 x Yanmar 6ZL-UT total 3,200BHP. Bowthruster. Bollard Pull: 40T. Genset(s): 2 - 125kW & 1 - 52kW AC. Quarters: 16 persons. Best offers invited. Mid East. Prompt. File: TG32070 Tug - Azimuthing - 98.3' loa x 32.2' beam x 16.1' depth x 11.80' loaded draft. Built in 2012 at Southeast Asia Shipyard. Foreign flag. GRT: 292. Class: NKK. FO: 140m3. FW: 25m3. Crane: Hiab 121-2 Sea Crane. Winch: 100T brake single drum fore & aft + tow hook aft. Line Pull: 40T@5m/min. Main Engines: 2 x Cummins KTA50-M2 total 3,200BHP. Schottel SRP1012 CP prop(s). Bollard Pull: 42MT. Speed about 1012kn on MDO. Pump(s): FO: 10m3/h, GS/Bilge/Ballast/Fire: 40m3/h each. Genset(s): 3 - 78kW / Cummins 6BT5.9-D(M). Firefighting: 1,400m3/h pump; 2 - 1,200m3/h / 300m3 water/foam monitors. Quarters: 10 crew in 4 cabins. Galley. Multi-purpose tug currently under construction. Oil dispersant system. Southeast Asia. File: TG32112 Tug - Twin Screw - 106.0' loa x 32.0' beam x 14.4' depth. Built in 1973 at Main Iron Works; Houma, LA. Foreign flag. GRT: 321. Class: ABS + A1 + AMS Towing Service. FO: 56,413g. FW: 2,842g. BW: 21,966g. Winch: Almon Johnson. Wire Capacity: 2,200'x2". Main Engines: 2 x EMD 16-567C total 3,200BHP. 2 - FP prop(s). Bollard Pull: 96,880lb. Genset(s): 2 - 75kW 225/450v. Africa West Coast.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

111

Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG32180 Tug - Twin Screw - 113.2' loa x 31.2' beam x 15.1' depth. Built in 2012 at China. Foreign flag. GRT: 321. Class: BV. FO: 278m3. FW: 62m3. Main Engines: 2 x total 3,200BHP. Bollard Pull: 40MT. Air Conditioned. Galley. Passengers: 12. Newly built 34.5m 3,200BHP twin screw tug available prompt exChina yard. Call for price guidance and further details. Far East. Prompt. File: TG32197 / TG32198 / TG32199 Tugs - Twin Screw (3 each) - 104.9' loa x 29.5' beam x 13.8' depth x 11.8' draft. Built 2008 at Hung Seng Shipbldg.; Malaysia. Singapore flag. GRT: 299. Class: NKK. Deadweight: 236mt. FO: 232T. FW: 22T. Winch: 40/10T - 70HP; 1 - 40T tow hook. Main Engines: 2 x Cummins KTA50M2 total 3,200BHP. Kort nozzle(s). Genset(s): 2 - 100kW / Cummins 6BT5.9-D; 1 - 25kW / Yamaha. Quarters: 15 crew. Air Conditioned. Available en bloc with 330' deck barges. Both reported in very good condition. Marcon sold three similar tugs from this owner early 2011 as sole broker. Southeast Asia. File: TG32209 / TG32210 / TG32211 Tug - Twin Screw (3 each) - 118.1' loa x 36.0' beam x 16.1' depth x 13.78' loaded draft. Built in 2009 at Jiangsu Sentsa Marine; Yizheng JS. Singapore flag. GRT: 486. Class: BV, I Tug. FO: 338MT. Main Engines: 2 x Cummins KTA-50-M2 total 3,200BHP. 2 - FP prop(s). Bollard Pull: 40T. Speed about 12kn. Genset(s): 2 - 90kW 415vAC 50Hz. Southeast Asia. File: TG31110 Tug - Single Screw - 99.3' loa x 30.5' beam x 16.0' depth x 14.50' draft. Built 1981 at Dubigeon-Normandie, France. GRT: 335. RINA Tug Unrestricted. FO: 118m3: Norwinch + Seebeck 50T hook. Wire Capacity: 850m x 44mm. Main Engine: 1 x Crepelle 16PSN3 3,100BHP. Steering CP prop. Kort nozzle. Bollard Pull: 45T. Genset(s): 2 - 125kW 115/380vAC. 2 - 220m3/h FiFi pumps @ 70m. Quarters: 12 total in 6 cabins. Ship-handling and deep sea work. Fitted with various shackles, bridle pennants, chain pennants & emergency towing line. Sale, time charter employment or tows any direction. Prompt. File: TG30224 Tug - Twin Screw - 137.8' loa x 128.6' lbp x 36.0' beam x 16.1' depth x 11.50' light draft x 13.61' loaded draft. Built in 2007 at South China Shipyard; Jiangmen, China. GRT: 499. Class: BV I Special Service / Multi-Purpose AHT Unrestricted Nav. valid til Nov 2017. Deadweight: 996T. Deck Cargo: 9TEU / 100MT on 160m2 + deck. Deck Load: 5MT/m2. FO: 390,000L. FW: 78,000L. Crane: Helia 140-4SL 170T/m. Winch: 65T Double drum. Wire Capacity: 800m + 750m x 52mm. Stern Roller. Main Engine(s): 2 x CAT 3512B total 3,043BHP at 1,600RPM. 2 - FP prop(s) in kort nozzle(s). Range 15,000 / 8,500nm light / with tow. Bowthruster 140kW. Bollard Pull: 45MT. Speed about 12.6kn free Genset(s): 2 - 215kW 400vAC 50Hz. Firefighting: 10,000L Foam. 2 - 750m3 water/foam monitors. Air Conditioned. Fitted with tow pins. Highly maneuverable and suitable for combined towing & anchor handling. Built under European supervision and since had many improvements including strong 16.8T @ 7.7m deck crane, 8T @ 2m aux. knuckle boom crane, powerful bow thruster, new navaids, improvement in Chinese electrical system, and renewal of toilets, galley & messroom. Reportedly in excellent condition in accordance with high west-European standards. Periodically also open for employment. Call for latest update on availability and rate / price ideas. Europe. Prompt. File: TG30251 Tug - Twin Screw - 101.7' loa x 29.5' beam x 14.8' depth x 12.14' loaded draft. Built in 2005 at Nanindah Mutiara SY; Batam, Indonesia. Singapore flag. GRT: 278. Class: LR +100A1 Tug, +LMC. SS due 03/2015. FO: 220m3. FW: 51T. Winch: Elect/hyd 100T brake towing. Line Pull: 10MT@10m/m. Wire Capacity: 800m 38mm. Main Engines: 2 x CAT 3512B-DITA total 3,042BHP. 2 -FP 4-blade prop(s). Kort nozzle(s). Range abt. 22 days continuous. Bollard Pull: 40T. Speed about 11kn on 8.3Tpd. Genset(s): 2 - 65kW / Perkins 415vAC 50Hz 3ph. Quarters: 12 persons. Southeast Asia. File: TG30170 Tug - Azimuthing - 80.7' loa x 62.3' lbp x 30.0' beam x 15.4' depth x 11.50' draft. Built 1991 at Imamura Shipbuilding; Japan. Australia flag. GRT: 188. Lloyd's Register disclassed. Originally built under BV. Winch: Elect./Hydraulic forward & 40T hook aft. Main Engine(s): 2 x Niigata 6L25CXE total 3000BHP. ZP-2A azimuthing FP prop(s). Bollard Pull: 37T. Genset(s): 2 - 64kW 380vAC 50Hz. Declared total loss in January 2013 after sinking and refloated after three months underwater. Reportedly completed 20 year survey prior to sinking and hull sound. Starboard ASD bent during salvage. Owner willing to sell vessel or just Niigata drives separately. Est. cost to refurbish region US$ 925,000. Photographs, diver's report & price ideas to serious named interests. Australia File: TG30037 Tug - Twin Screw - 103.0' loa x 27.0' beam x 9.7' depth x 12.00' draft. Built in 1966 at Lockport, LA. Rebuilt: 1996. U.S. flag. GRT: 148. FO: 27,630g. FW: 17,940g. BW: 8,284g. “H” bitt & Pelican hook. Main Engines: 2 x EMD 12-645CE2 total 3,000BHP. 2 - FP 4-blade 96" prop(s). Bollard Pull: est. 28T. 150gphGenset(s): 2 - GM-471; Shore power connection. Firefighting: 2 Monitors on 02 deck fwd.; GM 8V92 diesel driven pump in forepeak. Quarters: 2-2, 1-1 berth cabins. Harbor tug. “H” bitt & staple forward. Copy of April 2009 survey on request. Reportedly good condition for age. Fully operational. Repowered & re-geared 1996. U.S. Gulf Coast. Prompt.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG30110 Tug - Twin Screw - 105.0' loa x 34.0' beam x 17.3' depth x 12.00' light draft x 16.50' loaded draft. Built in 1981 at Halter Marine; Lockport, LA. U.S. flag. GRT: 98. Class: None. FO: 100,000g. Winch: Markey double drum TDSD-32. Line Pull: 155,000lb. Wire Capacity: 2,000 2". Stern Roller. Main Engines: 2 x EMD 12-645E2 total 3,000BHP. 2 - FP 117" x 94" prop(s) on 11" shaft(s). Speed about 12.5kn. Air Conditioned. Galley. Sold to current owner via Marcon. Raised foc'stle bow. 28' height of eye. U.S. West Coast. File: TG30176 Tug - Twin Screw - 101.0' loa x 30.0' beam x 13.1' depth. Built in 1973 at Southern Shipbldg; Slidell, LA. Foreign flag. GRT: 191. Class: ABS + A1 towing + AMS. FO: 48,538g. FW: 2,842g. BW: 21,966g. Winch: Single drum. Wire Capacity: 1,800' x 1 3/4". Main Engines: 2 x EMD 12-645 total 3,000BHP. 2 prop(s). Bollard Pull: 40T. Genset(s): 2 - 75kW / Delco DD4-71. Fitted with small upper pilot house. Africa West Coast. File: TG30180 Tug - Twin Screw - 90.0' loa x 28.0' beam x 15.0' depth x 12.00' draft. Built in 1975 at Main Iron Works. Rebuilt: 2004. U.S. flag. GRT: 152. Formerly ABS +A1 Loadline (allowed to lapse). FO: 26,000g. FW: 4,000g. Main Engines: 2 x EMD 12-645 -E2 total 3,000BHP. 92" x 68" FP 4 -blade prop(s). Kort nozzle(s). Bollard Pull: 44mt. Speed about 11kn free. Pump(s): 2,190 gpm fire pump. Genset(s): 2 - 75kW / DD 6-71 480v 60Hz. Quarters: 6. Harbor tug. 45' highest fixed point. Harbor tug. Height of eye 18' 5". 40HP stern capstan & H bitt. Marcon has handled several previous sales for this Owner. U.S. Gulf Coast. Prompt. File: TG30189 Tug - Twin Screw - 106.0' loa x 28.5' beam x 14.2' depth. Built 1960 at Albina Eng. & Mach., Portland. U.S. flag. GRT: 195. ABS Loadline 5 yr. loadline exp. June 2014. FO: 75,000g. FW: 5,700g. Winch: Electric Almon Johnson double drum. Wire Capacity: 1,700' x 2"; 2,100'.75". Main Engines: 2 x EMD 12-645E2 total 3,000BHP. 106"x92" prop(s). 2010: MEs rated Tier 2 EPA & "zeroed out". Bollard Pull: 38.5ST. Genset(s): 2-75kW /John Deere Tier 2 new 2010 480vAC 60Hz. 4 cabins. Repowered & rebuilt late 1980s. New pilot house. 3 hydraulic tow pins. Rubber bow pud. "D" rubber fendering. Walk-in freezer & and cooler. Working steady. Marcon has sold over 10 vessels & barges for owner over the years. U.S. West Coast. 2Q 2013. File: TG30252 Tug - Twin Screw - 101.7' loa x 29.5' beam x 14.8' depth x 12.14' loaded draft. Built in 2005 at Nanindah Mutiara SY; Batam, Indonesia. Singapore flag. GRT: 278. Class: LR +10A1 Tug, +LMC. SS due 02/2015. DD due 12/2014. Deadweight: 245mt. FO: 220m3. FW: 51T. Winch: Elect/hyd 100T brake towing. Line Pull: 10MT@10m/m. Wire Capacity: 800m 38mm. Main Engines: 2 x CAT 3512B-DITA total 3,000BHP. 2 -FP 4-blade Manganese Bronze prop(s). Kort nozzle(s). Range abt. 22 days continuous. Bollard Pull: 40T. Speed about 11kn on 8.3Tpd. Genset(s): 2 - 65kW 415vAC 50Hz 3ph. Quarters: 12 persons. Sister available. See TG30251. Southeast Asia. File: TG29105 / TG29106 Tugs - Single Screw (2 each) - 107.0' loa x 32.0' beam x 18.0' depth x 15.00' loaded draft. Built 1969 at Gulfport; Port Arthur, TX. Rebuilt: 2005. Canada flag. GRT: 308. CSI Hometrade III. Formerly ABS + A1 Towing. FO: 81m3. Bow capstan. Main Engine: 1 x EMD 16-645E5 2,875BHP. Last Overhauled: 2005. Fixed Pitch prop. Kort nozzle. Single steering & two flanking rudders. Bollard Pull: 42T. Speed about 10kn. Genset(s): 2 - 60kW / GM6-71. 2 - 3" water cannons 5,000gpm. Foam 5,000g. GM12V71 pumps. 4 bunks. Extensively rebuilt in 2005 for mid-life refit. Reportedly good condition. Mainly day boats with head, shower, toilet & small galley. Previously dedicated terminal support for shipdocking & escort. Canada Great Lakes. Prompt. $550,000 each. File: TG29122 Tug - Single Screw - 121.5' loa x 32.0' beam x 16.5' depth x 14.00' light x 15.50' loaded draft. Built 1966 at Pacific Coast Eng.; Alameda, CA. U.S. flag. GRT: 190. ABS International Loadline. FO: 100,000g. FW: 18,000g. Winch: Markey TYSD-32 double drum. Wire Capacity: 2 x 2,200' 2". Main Engine: 1 x EMD 16-645E5 2,850BHP. 5 blade stainless 126" x 82-89" prop. Bollard Pull: 37.5ST. Speed 14kn on 2,000gpd. Genset(s): 2 - 60kW / CAT D3306 208vAC 60Hz. Quarters: 9 berths. Ocean going tug. Reportedly good overall condition, turnkey & ready to work. Owner is very keen to sell and will entertain serious cash offers. U.S. Northwest. Prompt. File: TG30159 Tug - Twin Screw - 157.1' loa x 35.0' beam x 16.4' depth x 13.10' draft. Built in 1990 at Jurong Shipyard; Singapore. GRT: 741. Class: ABS A1 Towing Vessel, AMS. (Formerly RS KM+1, 1[1]A2 Tug Icebreaking Ice Class 1 which can be reinstated). Deadweight: 232mt. 24.6' x 26.2' deck. FO: 263m3. FW: 35m3. Crane: Hiab 60 3,400kg @ 1.7m. Norwinch single drum hydraulic + Mampaey towhook. Wire Capacity: 550m 52mm +spare. Stern Roller. Main Engines: 2 x Yanmar T260ST total 2,840BHP. Last Overhauled: 2009. 4-blade 2,300mm Fixed Pitch prop(s). Kort nozzle(s). Endurance 8,000nm@10kn. Bowthruster 300BHP. Bollard Pull: 41T. Speed about 13.0kn on 4-8MT/d. Genset(s): 2 - 200kW; 2 - 100kW 380vAC 50Hz 3ph.: 28 in 16 cabins. Both main & auxiliary engines fully overhauled by engine maker reps in October 2009. Sale or charter with 200 man work barge MB20053. Try individual basis. Caspian Sea. Prompt.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

113

Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG28113 Tug - Twin Screw - 105.0' loa x 30.0' beam x 14.6' depth x 12.50' draft. Built in 1975 at Bollinger Machine. U.S. flag. GRT: 183. ABS Loadline exp. April 2014. FO: 66,070g. FW: 10,000g. Winch: Intercon DD-175D Double drum. Dutch Bar. Line Pull: 145ST max. Wire Capacity: 2,000' x 2.25". Stern Roller. Main Engines: 2 x CAT 3516 total 2,820BHP. FP 4 blade 100" dia. prop(s). Speed about 8.5-10kn on 80-95gph. Genset(s): 2 - 75kW. 10 Crew in 5 Cabins. Upper pilot house. Solid rubber fendering. U.S. Gulf Coast. Marcon has sold about a dozen tugs and barges for Owner over the years. U.S. Gulf Coast. File: TG28110 Tug - Twin Screw - 110.0' loa x 31.2' beam x 16.0' depth x 13.80' loaded draft. Built in 1975 at Halter Marine; Pierre Pt., LA. U.S. flag. GRT: 173. Class: ABS Loadline - exp. May 31, 2012 (formerly ABS + A1 Class). Winch: Intercon Double drum / GM4-71. Wire Capacity: 2,000' x 2". Main Engines: 2 x CAT 3516 total 2,820BHP. 2 - FP / 4 blade stainless prop(s). New M/Es '96. New tail shafts 05/00. Genset(s): 2 - 99kW / GM6-71. 6 cabins / 8 berths. Air Conditioned. Fitted with upper pilothouse. 60' highest fixed point. Reportedly in good condition. Laid up. Marcon has sold about a dozen tugs and barges for Owner over the years. U.S. Gulf Coast. File: TG22122 Tug - Single Screw - 121.4' loa x 32.0' beam x 16.5' depth x 13.00' light draft x 15.40' loaded draft. Built in 1965 at Paceco; Alameda, CA. U.S. flag. GRT: 199. Class: ABS International Loadline. FO: 115,000g. FW: 18,000g. Winch: Almon-Johnson Single Drum 229 single drum hydraulic. Line Pull: 80,000lb. Wire Capacity: 2,100' x 2". Main Engine: 1 x EMD 16645D5 total 2,800BHP. Last Overhauled: 1997. 5 blade 121.5" x 94-96' prop. Main engine repacked to 645. Turbo-charged. Channel cooled. Bollard Pull: 30ST. Genset(s): 2 - 75kW / CATD 3306 120/208vAC 60Hz. Air Conditioned. Galley. Wheelhouse height 23.4'. Ocean going tug. Reportedly in good overall condition, turnkey and ready to work. Owner is very keen to sell and will entertain serious cash offers. U.S. Northwest. File: TG26101 Tug - Twin Screw - 100.0' loa x 91.9' lbp x 25.0' beam x 11.3' depth x 14.00' draft. Built in 1944 at Luders Marine; Stamford, CT. Rebuilt: 2008. U.S. flag. GRT: 143. FO: 52,000g. FW: 3,500g. Winch: Parkersburg Single Drum with under-rider drum. Wire Capacity: 2,000' 2" / 800' 1.75". Main Engine(s): 2 x GM 16V149TI total 2,800BHP. Twin Disc MG540 6.18:1 gear(s). FP 87" x 84" SS prop(s) on 7.5" shaft(s) Main engines & gears completely rebuilt 2008. Genset(s): 2 - 75kW / GM 4-71. 10 berths. 20' eye level. Upper house aluminum; lower house steel. Marcon sold to present owner. New switchboard, distribution panel. Ready to work. Repowered & converted to twin screw in 1978. New towing wire, and pendant, plus recent dry-docking and painting in 2012. U.S. Northwest. Prompt. File: TG20127 Tug - Single Screw - 102.0' loa x 28.8' beam x 15.8' depth x 12.69' loaded draft. Built in 1971 at Bodewes Millingen. Denmark flag. GRT: 282. World Wide Trading. Deadweight: 138T. Winch: Brake force 60T max. Wire Capacity: 650m 38mm. Main Engine: 1 x Deutz SBV6M358 total 2,750BHP. Kort nozzle(s). Bowthruster 184kW. Bollard Pull: 30T. Speed max 13.5kn. Genset(s): 2 140kVA; 1 - 70kVA 380vAC 3ph 50Hz. Firefighting: 3 water / foam monitors (1 hyd / snorkel 22m above water). Quarters: 6 persons. Baltic. File: TG27070 Tug - Twin Screw - 73.8' loa x 23.8' beam x 12.3' depth x 10.80' loaded draft. Built in 2005 at Damex Shipbuilding; Santiago, Cuba. Venezuela flag. GRT: 122. Class: LR + 100 A1 Tug Unrestricted Service, LMC exp. July 2015; Next DD due June 12, 2014. 60m2 clear deck. FO: 39.4m3. FW: 9.2m3. Winch: Kraaijeveld Single Drum + Tow hook. Wire Capacity: 400m x 40mm. Main Engines: 2 x CAT 3512B TA/B total 2,720BHP. 2 - FP Kaplan II Promarin prop(s). Kort nozzle(s). Bollard Pull: 35MT. Speed about 11.5kn. Genset(s): 2 - 81kVA / CAT 3304 220v AC 60Hz. Firefighting: 1,400m3/h. Quarters: 8 (2-1,1-2,1-4 cabins). Air Conditioned. Galley. Damen Stan Tug 2207 design. Caribbean. File: TG24143 Tug - Azimuthing - 112.5' loa x 32.5' beam x 14.1' depth x 10.80' loaded draft. Built in 1996 at Taiwan Machinery Mfg.; Kaosiung. Foreign flag. GRT: 337. Class: China Corporation Register. Deadweight: 167T. FO: 75,000L. FW: 21.8T. Winch: 60T brake drum forward. Line Pull: 10T@10m/m. Wire Capacity: 100m x 80mm & 48mm. Main Engines: 2 x Wartsila 6L20 total 2,690BHP. 2 - Z-peller FP prop(s). Bollard Pull: 30T. Speed about 11.9-12.6kn on 8.7-10kL/day. Pump(s): 300m3/h @ 120m fire. 300Lpm 12 bar foam. Genset(s): 2 - 107kW / MAN 450vAC 60Hz. Firefighting: 2 Fire monitors. Range12-18m water/foam @ 45deg. 40T tow hook Far East. Prompt. File: TG26070 Tug - Azimuthing - 93.5' loa x 29.8' beam x 16.0' depth x 11.97' draft. Built in 1984 at Sabah Shipyard; Malaysia. Rebuilt: 2007. GRT: 251. Class: LRS + 100A1 disc. Drydocked July 2011. FO: 41.4m3. FW: 25.62m3. Winch: Hatlapa single drum hydraulic. Line Pull: 80MT. Wire Capacity: 250m. Main Engines: 2 x Deutz SBV6M628 total 2,682BHP. Overhaul of M/Es in 2007. Bollard Pull: 34T. Speed about 12kn on 6m3/day. Genset(s): 2 - 68kW 400vAC 3ph 50Hz. 2 - water/foam monitors 3,000Lpm. Harbor tug. Drives forward and skeg aft. Drydocked, blasted & painted 2007 when totally rebuilt including MEs, Schottel drives, Kolbelt controls, etc. “as is, where is”. South America East Coast.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

114

Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG26110 Tug - Twin Screw - 109.0' loa x 33.0' beam x 15.5' depth x 14.00' loaded draft. Built in 1977 at Sing Koon Seng Pte. Ltd; Singapore. Bahrain flag. GRT: 369. Class: GL +100A5 +MC (exp. April 2016) Last DD Mar 2011. Deadweight: 177T. 30'x33' clear deck. FO: 65,000g. FW: 20,000g. Winch: Smatco. Line Pull: 50T SWL. Main Engines: 2 x Deutz SBA8M528 total 2,660BHP. Fixed Pitch prop(s). Kort nozzle(s). Bollard Pull: 30MT. Speed about 9-10kn on 4.5MT/d. Genset(s): 2-100kVA; 1-60kVA. Firefighting: 2 foam/water monitors 60m3/h @ 55m range. Quarters: 12 crew. Air Conditioned. Passengers: 4. Mid East. Prompt. File: TG26011 Tug - Azimuthing - 104.0' loa x 28.2' beam x 12.1' depth x 9.84' loaded draft. Built in 1973 at Ishikawajima Ship; Tokyo, Japan. Panama flag. GRT: 214. Class: IBS. Deadweight: 102mt. FO: 106m3. FW: 15.78m3. Main Engines: 2 x Daihatsu 6DSM-26 total 2,600BHP. 2 - FP prop(s). Bollard Pull: 39T. Speed about 10-11kn. Genset(s): 2 - 85kW / Kubota 450vAC. Quarters: 9. Reconditioned: from Oct 2008 to Jan 2010 at Empresa Nacional de Astilleros (ENA) Casablanca and drydocked in Aug 2009. Available for sale or charter with DB26049. Caribbean. File: TG25097 Tug - Twin Screw - 97.0' loa x 29.6' beam x 11.2' depth x 12.00' loaded draft. Built in 1964 at Main Iron Works Inc.; Houma, LA. Rebuilt: 2001. U.S. flag. GRT: 186. FO: 32,298g. FW: 5,394g. BW: 48,198g. Winch: None. 10" double bitt aft. Main Engines: 2 x GM 16V149TI total 2,560BHP. Main & flanking rudders. Repowered from Fairbanks and new gears in 2001. Bollard Pull: est. 28T. Genset(s): 2 - 60kW / GM4-71 200vAC 60Hz new in 2001 with new switchboard. Quarters: 3-1, 1-2 berth cabins. Air Conditioned. Harbor tug. Copy of April 2009 survey available on request. Vessel reportedly in good condition for her age. New steering in 2001. Last drydocked abt. 2008. Currently working. U.S. Gulf Coast. Prompt. File: TG25090 Tug - Tractor - 98.6' loa x 28.9' beam x 11.8' depth x 9.97' loaded draft. Built in 1977 at Jadewerft Wilhelmshaven; Germany. Netherlands flag. GRT: 256. Class: GL + 100A5 RSA(200) Tug. Previously LR. Deadweight: 110mt. FO: 104.8MT. Winch: 1 - 2.6T @ 65m/min or 10.3T @ 18m/min. Line Pull: 70T brake. Main Engines: 2 x MAK 8M331AK total 2,500BHP. 2 Voith Schneider (26G) prop(s). Bollard Pull: 30MT. Speed about 12kn. Genset(s): 2 - 82kW 440vAC 60Hz. Quarters: 10 bunks. Europe. File: TG25124 Tug - Twin Screw - 125.0' loa x 30.2' beam x 14.43' loaded draft. Built in 1976 at Mitsui Ocean / Ima Seisakusho; Japan. GRT: 338. Class: ABS + A1 E, IR SUL, IY, Tug. Deadweight: 430mt. FO: 58MT. FW: 290m3. BW: 260MT. Crane: 1-6T. Winch: Single drum tow. Wire Capacity: 800mx48mm. Main Engine(s): 2 x Niigata 6MG25BX total 2,500BHP. 2 - FP prop(s) in kort nozzle(s). Bowthruster Bollard Pull: 36MT. Speed about 10kn max on 6.2MT/d. Genset(s): 2-100kVA; 1-60kVA 415vAC 50Hz. Quarters: 12. Air Conditioned. Bow fendering. Offered on P&C basis. Mid East. File: TG24189 Tug - Twin Screw - 101.7' loa x 30.0' beam x 14.1' depth x 17.00' loaded draft. Built in 2011 at Malaysian Shipyard. Malaysia flag. GRT: 326. Class: BV. Deadweight: 285mt. FO: 240MT. Main Engines: 2 x Jinan G12V190 total 2,414BHP. 2 - FP prop(s). Speed about 11kn. Genset(s): 2 - 80kW 50Hz / Cummins 6BT 5.9D. Southeast Asia. File: TG17011 Tug - Twin Screw - 102.0' loa x 27.0' beam x 15.0' depth. Built in 1944 at Luders Marine; Stamford, CT. Rebuilt: 1999. U.S. flag. GRT: 147. Class: Unclassed with no loadline. FO: 48,000g. FW: 2,200g. Winch: Single Drum + Capstan. Wire Capacity: 1,750' x 1.75". Main Engines: 2 x CAT 3512 total 2,400BHP. 2-FP 82"x58" 4-blade stainless prop(s) on 8.25" shaft(s). Triple rudder. Speed about 12.5kn free. Genset(s): 2 - 60kW / GM6-71 120/240vAC 3ph 60Hz. Quarters: 6. Galley. YTM tug converted to twin screw with triple rudder. Repowered 1999. Hydraulic tow pins. Tug in good working condition. Winch rebuilt 2013. Owner keen Seller with lower price ideas. U.S. West Coast. File: TG24026 Tug - Twin Screw - 95.5' loa x 86.9' lbp x 29.5' beam x 13.9' depth x 11.50' loaded draft. Built in 2012 at Chinese Shipyard. Foreign flag. Class: ABS + A1 (E) + AMS Towing Service. Unrestricted. FO: 200m3. LO: 4m3. FW: 40m3. 2 - stockless anchor ,19mm chain/wire Windlass: Elect. double gypsy. Winch: Single drum elect/hyd. Line Pull: 30MT. Main Engine(s): 2 x Cummins KTA38M2 total 2,400BHP at 1,800RPM. HCT1100 7.33:1 gear(s). 2 - FP prop(s) in kort nozzle(s). Range - 4,500nm max at economic speed, and 12 days at max RPM. Bollard Pull: 30MT. Speed about abt. 10kn Pump(s): Ballast/Bilge/GS: 25m3/h, FO: 7.9m3/h, FW: 3.5m3/h. Genset(s): 2 - 91kW / Cummins 415vAC 50Hz. Firefighting: 25m3/h pump. Quarters: 12 men. Air Conditioned. For sale direct from shipyard for whom Marcon has handled seven previous sales as sole broker. Same builder has several new deck barges for sale ranging in size from 180' to 300'. Far East.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG24036 Tug - Twin Screw - 98.7' loa x 29.5' beam x 9.4' depth x 13.45' loaded draft. Built in 2006 at Zhuhai Shipbldg. Ind. Corp.; China. Antigua/Barbuda flag. GRT: 290. Class: ABS + A1, Towing Vessel (E) + AMS Unrestricted Service. Docking due July 2015. SS due Dec 2016. Deadweight: 303mt. FO: 89,000g. FW: 15,250g. Winch: Intermot Italian. Main Engines: 2 x Cummins KTA-38-M2 total 2,400BHP. 2 - FP 76" 4-bladed Bronze prop(s). Kort nozzle(s). Bollard Pull: 30T. Speed about 10kn. Genset(s): 1 42.9kW / Perkins; 1 - 27.2kW / Yanmar. Open for time charter along with BV classed ocean deck barge DB21369. Try outright purchase offers. Caribbean. File: TG24071 Tug - Twin Screw - 101.7' loa x 31.2' beam x 13.8' depth x 11.50' loaded draft. Built Sibu, Malaysia. Class: GL. FO: 2767T. FW: 46T. Winch: 40T Tow hook; 3T capstan; Elect./Hydraulic. Line Pull: 100T brake. Stern Roller. Main Engines: 2 x Cummins KTA38M2 total 2,400BHP. 2 - FP 4 blade prop(s). Kort nozzle(s). Pump(s): Bilge, Ballast, FO, FW, Fire. Genset(s): 2 78kW / Cummins 6BT5-9-D 415/230v 3ph 50Hz. Firefighting: Emergency. Galley. Tug can be finished in about two months. Southeast Asia. File: TG24078 Tug - Twin Screw - 98.4' loa x 29.5' beam x 14.0' depth x 12.00' loaded draft. Built in 2008 at Far East Shipyard Co.; Malaysia. Foreign flag. GRT: 270. Class: GL. FO: 230m3. FW: 40m3. BW: 45m3. Winch: 1 - Tow 80MTbrake + 40MT hook. Main Engines: 2 x Cummins KTA38-M2 total 2,400BHP. 2 - FP prop(s). Kort nozzle(s). Bollard Pull: 25MT. Speed about 11kn. Genset(s): 2 - 50kW / Cummins 6BT5.9-D 415v 50Hz 3ph. Quarters: 8 berths. Air Conditioned. Galley. Caribbean. Prompt. File: TG24147 Tug - Twin Screw - 95.1' loa x 29.5' beam x 13.9' depth x 12.80' loaded draft. Built in 1999 at Jiangdong; Wuhu, China. Panama flag. GRT: 250. Class: LR +100A1 Tug, +LMC (SS due Jan 30, 2009). Deadweight: 177mt. FO: 138T. FW: 21m3. Winch: Towing / AH Winch + 65T tow hook. Line Pull: 30T. Main Engines: 2 x Yanmar M220EN total 2,400BHP. 2 - FP prop(s). Kort nozzle(s). Bollard Pull: 30T. Speed about 11kn. Genset(s): 2 - 77kW / Cummins 6BT5.9-G2M 400vAC 50Hz. Firefighting: 1 - 300mt3/hr Water/Foam Mix. Quarters: 8. Air Conditioned. Oil dispersant spray booms (82lts/min). Sister can be developed. Caribbean. Marcon has handled numerous sales, charters & purchase on behalf of Owners. File: TG24158 / TG24159 Tugs- Twin Screw (2 each) - 95.1' loa x 29.5' beam x 13.9' depth x 13.00' loaded draft. Built in 1998 at Shanghai Fishing; Shanghai, China. Colombia flag. GRT: 250. Class: LR +100A1, Tug +LMC. Deadweight: 184mt. FO: 183m3. FW: 21m3. Winch: Hydraulic 18T + Tow Hook 65T. Main Engines: 2 x Yanmar M220EN total 2,400BHP. 2 - FP 2.43m dia prop(s). Kort nozzle(s). 1 300m3/hr Water / Foam mix. Bollard Pull: 36T. Speed about 11.7kn free. Pump(s): FiFi: 300m3/h / Cummins powered. Genset(s): 2 - 77kW / Cummins 6BT5.9 - G2M 400vAC 50Hz. Firefighting: FiFi monitors. Quarters: 8 in 4 cabins. Air Conditioned. Galley. Oil dispersant spray booms (82lts/min). Reportedly in good overall condition and working. Caribbean. Marcon has handled numerous sales, charters & purchase on behalf of Owners. File: TG24191 Tug - Twin Screw - 95.2' loa x 29.5' beam x 13.9' depth x 11.48' loaded draft. Built in 2012 at Chinese Shipyard. Foreign flag. Class: ABS A1 Tug, Unrestricted Service. FO: 200m3. FW: 37m3. Main Engines: 2 x Cummins total 2,400BHP. U.K. manufactured main engines. Bollard Pull: 30T. Speed about 11kn. Genset(s): Cummins (U.K. mfg.). 4 units available prompt. 2 units under construction. Far East. Prompt. File: TG23114 Tug - Single Screw - 114.8' loa x 29.9' beam x 16.1' depth x 14.10' draft. Built in 1960 at Mutzelfeltwert GmBH. GRT: 299. HRS Inspectorate Drydock completed July 2002 & due 2004. Certificates valid. Deadweight: 173mt. FO: 130m3. Crane: 3MT SWL. Winch: Tow hook; 1 winch single aft. Line Pull: 92T SWL. Wire Capacity: 1,000m 36mm. Main Engines: 2 x Deutz SBV8M545 total 2,366BHP. 1 - FP prop. Bollard Pull: 32MT. Speed about 12kn. Genset(s): 1 -80kW, 2-26kW, 1 - 10kW 220/380vAC 50Hz. Firefighting: 3 - monitor, 2 - 200L foam tanks + drums. Quarters: 14 persons. Ocean going & harbor salvage tug. "As is, where is." Reportedly good operational condition with maintenance undertaken regularly. Price ideas 265,000 EUROS. As brokers we invite cash offers to test. Mediterranean. Prompt. File: TG22108 Tug - Twin Screw - 80.0' loa x 26.2' beam x 14.2' depth x 9.85' loaded draft. Built in 1982 at Astilleros Cartagena. Foreign flag. GRT: 291. Class: Ex LR. Deadweight: 192mt. 56m2 clear deck. Main Engines: 2 x CAT D399 total 2,250BHP. 2 - FP prop(s). Bollard Pull: 22MT. Speed about 8-11kn. Genset(s): 2 - 35kVA / Stamford C245B 220vAC 60Hz driven by GM4L-71. Firefighting: FiFi 3,000gpm. Coastal / Harbor / Firefighting tug. Caribbean.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

116

Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG22599 Tug - Twin Screw - 100.0' loa x 27.0' beam x 13.8' depth x 10.00' light draft x 13.00' loaded draft. Built in 1973 at Main Iron Works, LA. U.S. flag. GRT: 191. Class: ABS Loadline. FO: 38,796g. FW: 7,871g. Winch: Intercon DD200 double drum. Main Engines: 2 x CAT D399 total 2,250BHP. 2 - FP 98" x 84" prop(s). Speed about 10kn. Genset(s): 2 - 75kW / GM6-71. Quarters: 8 berths in 5 cabins. Air Conditioned. Galley. ITC - 218G / 65N. Working tug. Keen seller. Reduced price. U.S. Gulf Coast. File: TG24155 Tug - Single Screw - 155.3' loa x 33.9' beam x 18.9' depth x 13.00' light draft x 15.00' loaded draft. Built in 1956 at Canada St. Johns Shipbldg. Rebuilt: 2011. Canada flag. GRT: 535. Class: Formerly LR Class +1A1, Tug, E0, Ice-A. Deadweight: 338mt. FO: 304MT. FW: 23MT. Winch: Single Drum. Wire Capacity: 1,000m x 52mm. Main Engine: 1 x Fairbanks Morse 38D8 1/8 total 2,200BHP. 1-CP prop(s). 12 cylinder. Bowthruster. Bollard Pull: 34MT. Speed about 14.5kn. Genset(s): 2-100kW. Firefighting: 2-monitors @ 13.6m3/min. Quarters: 20 total. Galley. Passengers: 4. Originally built as Canadian Navy tug & decommissioned in 1994. Drydocked and extensively rebuilt in 2011 M/E, reduction gear, dry-docking, tail shaft overhauled, bow thruster installed, interior work, etc. All new electronics in 2010 (Radar (2) Racal and Furuno, GPS (2) Furuno, electric charts, etc. Vessel reportedly in very good overall condition. Owner aggressive Seller inviting all serious cash offers. Canada East Coast. File: TG22109 Tug - Twin Screw - 104.9' loa x 27.9' beam x 14.4' depth x 10.83' draft. Built in 1966 at Mitsubishi Hvy. Ind., Shimonseki. Panama flag. GRT: 236. Class: IBS. FO: 70T. FW: 30T. Winch: 36T towing. Main Engine(s): 2 x GM 16V149 total 2,200BHP. Twin Disc gear(s). 2 - FP prop(s) Bollard Pull: 27T. Speed about 8-10kn on 3.5Tpd. Genset(s): 2 - 62.5kVA/ GM 3-71 220/110vAC 3ph. Firefighting monitor. Steering: Hydraulic. Mid East. File: TG21118 Tug - Twin Screw - 93.3' loa x 28.0' beam x 14.0' depth x 10.66' loaded draft. Built in 1993 at UNIAL. Foreign flag. GRT: 282. Class: Local. Deadweight: 320mt. 100m2 clear deck. Main Engines: 2 x CAT D399 total 2,182BHP. 2 - FP prop(s). Bollard Pull: 24MT. Speed about 9-12kn. Genset(s): 2 - 36kVA / Riama AD driven by GM4L-71. Firefighting: FiFi 3,000gpm. Quarters: 6 crew. Coastal / Harbor / Firefighting tug. Offered for sale on private and confidential basis. H Bitt. Caribbean. File: TG21001 Tug - Single Screw - 97.9' loa x 24.7' beam x 14.0' depth x 12.00' loaded draft. Built in 1952 at Paceco, Alameda. U.S. flag. GRT: 184. FO: 31,311g. FW: 1,949g. Wire Capacity: 1,200' x 1". Main Engine: 1 x EMD 12-645E5 total 2,150BHP. Last Overhauled: 2001. 92" x 46" - 5 blade stainless prop(s). Genset(s): 2. Quarters: 4 berths. Some wash boarding in hull and dents along main deck line. Owner is very keen to sell, and inviting all serious cash offers. U.S. West Coast. Prompt. File: TG21006 Tug - Single Screw - 97.9' loa x 24.7' beam x 13.0' depth x 11.80' loaded draft. Built in 1953 at PACEO, Alameda. U.S. flag. GRT: 184. FO: 31,311g. FW: 1,949g. Winch: None. Capstan aft. Main Engine: 1 x EMD 12-645E7 total 2,150BHP. 100" x 63" 5 blade prop(s). Low hours since overhaul & power packs. Genset(s): 2-30kW/GM3-71 DC with AC converter. Quarters: 4 bunks. Primarily a harbor boat. Steel hull & wood house. Low overall hours on engine. Owner is very keen to sell, and inviting all serious cash offers. U.S. West Coast. Prompt. File: TG21101 Tug - Single Screw - 101.0' loa x 26.7' beam x 12.6' depth. Built in 1955 at Nat'l Steel & Ship. Rebuilt: 1992. U.S. flag. GRT: 189. Class: ABS Loadline. (exp. July 14, 2013). FO: 35,000g. FW: 2,756g. Winch: Almon Johnson Single drum 600' under-rider. Wire Capacity: 1800' x 1.75". Stern Roller. Main Engine: 1 x EMD 12-645E4 total 2,150BHP. 116" x 82" 5 blade stainless steel prop(s) on 9.75" shaft(s). Repowered 1992 at Duwamish Shipyard. 1,800g/day. Genset(s): 2 - 42kW / GM4 - 71 120vAC. Firefighting: Fixed Halon in E-room. Galley. Aft winch controls. Tow pins aft. Owner is keen Seller, and the tug is reportedly in good overall condition. Direct from Owner for whom Marcon has handled well over a dozen sales & purchases over the years. U.S. Northwest. File: TG20166 / TG20167 / TG20168 / TG20169 Tugs - Twin Screw (4 each) - 101.7' loa x 30.0' beam x 14.1' depth x 11.48' loaded draft. Built in 2009 / 2009 / 2010 respectively at Malaysian Shipyard. Malaysia flag. GRT: 326. Class: Nippon Kaiji Kyokai, NK, NS* Tug / MNS LSA, RCF. Deadweight: 271mt. FO: 240MT. Main Engines: 2 x Mitsubishi S6R2-MTK3L total 2,064BHP. 2 prop(s). Speed about 11kn. Genset(s): 2 - Cummins 6BT. Southeast Asia. File: TG20170 Tug - Twin Screw - 99.1' loa x 28.2' beam x 14.1' depth x 11.81' draft. Built in 2006 at Berjaya Dockyard Sdn Bhd. Malaysia flag. GRT: 269. Class: Nippon Kaiji Kyokai NK NS8 Tug / MNS LSA, RCF. Deadweight: 298mt. FO: 215MT. Main Engines: 2 x Mitsubishi S6R2-MPTK2 total 2,062BHP. Speed about 10kn. Genset(s): 2 - Cummins 6BT5.9-G6. Southeast Asia.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

117

Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG20171 Tug - Twin Screw - 101.7' loa x 28.0' beam x 12.5' depth x 9.84' loaded draft. Built in 2004 at Celtug Services Shipyard Sdn Bhd. Malaysia flag. GRT: 261. Class: Nippon Kaiji Kyokai, NK, NS* Tug / MNS LSA, RCF. Special Survey due 12/2013. Deadweight: 155mt. FO: 165MT. Main Engines: 2 x Cummins KTA38-M total 2,026BHP. 2 - FP prop(s). Speed about 11kn. Genset(s): 2 - 78kW / Cummins 6BT5.9. Southeast Asia. File: TG20032 Tug - Twin Screw - 83.8' loa x 28.0' beam x 14.1' depth x 11.80' loaded draft. Built in 2004 at Borneo Shipping & Timber; Malaysia. Comoros flag. GRT: 239. Class: DNV + 1A1, Tug, Utility. FO: 200m3. FW: 65T. Winch: Tow Winch (70T brake) + 30T tow hook. Line Pull: 30T. Wire Capacity: 500m x 32mm. Main Engines: 2 x Yanmar 6RY17P-GV total 2,000BHP. 2 - FP 4 blade prop(s). Kort nozzle(s). Endurance 28-42 days. Bollard Pull: 25T. Speed about 10-11.5kn on 56Tpd. Genset(s): 2 - 50kW / Cummins; 2 - Stanford Alt. Quarters: 12 berths. Last dry dock 2010 and completely upgraded 2013. No Class Outstandings. Mid East. File: TG20033 Tug - Twin Screw - 88.6' loa x 29.5' beam x 13.5' depth x 11.40' draft. Built in 2012 at Malaysian shipyard. Class: NKK. FO: 172T. FW: 60T. BW: 49T. Winch: Elect. Hyd. Tow 30T single drum. Line Pull: 80T brake. Main Engines: 2 x Yanmar 6RY17P-GW total 2,000BHP. FP 4blade prop(s). Kort nozzle(s). Speed about 10kn. Genset(s): 2 - 78kW / Cummins 415v 50Hz. Quarters: 10 men. Air Conditioned. Available direct from shipyard. Southeast Asia. Prompt. File: TG20134 Tug - Twin Screw - 111.5' loa x 26.2' beam x 10.8' depth x 8.20' draft. Built in 2012 at Mangkupalas Mitra Makmur. Indonesia flag. Class: BKI. Can convert to IACS class. 15m x 6m deck. FO: 69m3. FW: 88.3m3. Winch: 1 - 5T tugger & 2 capstans aft. Stern Roller. Main Engines: 2 x Cummins KTA38M1 total 2,000BHP. Kort nozzle(s). Bowthruster. Speed about 9.6kn trial. Genset(s): 2-80kVA,160kVA, 1-35kVA 380vAC-all Mitsubishi. 2 - 600m3/h fire pumps & 2 - 600m3/h monitors. Quarters: 24 persons. Shallow draft utility support vessel. Keel laid in 2011. Hospital can be used for passenger quarters with 2 - 4 berths. Accommodation can be increased. Southeast Asia. End July 2013. File: TG20145 Tug - Twin Screw - 94.5' loa x 27.6' beam x 13.1' depth x 10.50' loaded draft. Built in 2002 at Yuexin Shipbuilding Co; Guangzhou. Singapore flag. GRT: 252. Class: BV I Tug. Deadweight: 553mt. Main Engines: 2 x Cummins KTA-38-M1 total 2,000BHP. 2 - FP prop(s). Bollard Pull: 30T. Genset(s): 2 - 104kW. Southeast Asia. File: TG20158 Tug - Single Screw - 107.0' loa x 29.0' beam x 16.3' depth. Built in 1973 at Marinette Marine. U.S. flag. GRT: 196. Last DD July 2010. FO: 32,000g. FW: 2,110g. BW: 8,900g. Main Engine: 1 x Fairbanks Morse 38D8 1/8 2,000BHP. 144" X 96" 4-blade SS prop on 10" shaft. Bowthruster 550HP. Genset(s): 2 60kW 225vAC. 2 fire monitors. Quarters: 2-1 & 1-4 man berths. Air Conditioned. Galley. "Deflector" style rudder with 180deg. swing over in 9 seconds. "Hotshot" engine heater. Forward bitt has Hydraulic winch wheelhouse operated. Roller fendering port and starboard plus fendering all around. Turnkey and in very good condition. U.S. Northwest. File: TG20183 Tug - Twin Screw - 95.2' loa x 29.5' beam x 14.4' depth x 12.07' loaded draft at Malaysian Shipyard. Malaysia flag. Class: NK NS +Tug, Unrestricted. FO: 240m3. FW: 23m3. BW: 35m3. Main Engines: 2 x Mitsubishi SR62 total 2,000BHP. 2 - FP prop(s). Bollard Pull: 28T. Speed about 10kn. Genset(s): 2 - 50kW. Quarters: 12 crew. Air Conditioned. Galley. Southeast Asia. Prompt. File: TG20184 Tug - Twin Screw - 104.2' loa x 28.2' beam x 13.5' depth x 11.16' loaded draft at Malaysian Shipyard. Malaysia flag. Class: NK. FO: 170MT. FW: 55MT. Winch: Elect/hyd towing. Line Pull: 75T brake. Main Engines: 2 x Yanmar 6RY-17P-GV total 2,000BHP. 2 - FP prop(s). Kort nozzle(s). Speed about 11kn. Pump(s): FO: 8m3/h; Bilge/BW/GS/FiFi: 25m3/h. Genset(s): 2 - 40kW / Yanmar, 1 78kW / Cummins. Quarters: 12 crew. Air Conditioned. Galley. 30T tow hook. Southeast Asia. File: TG24173 / TG24186 / TG24187 / TG24188 Tugs - Twin Screw (4 each) - 101.7' loa x 30.0' beam x 14.1' depth x 11.48' loaded draft. Built in 2010 at Malaysian Shipyard. Malaysia flag. GRT: 326. Class: BV I Tug. Special Survey due 02/2015. Deadweight: 285mt. FO: 220MT. Main Engines: 2 x Mitsubishi 12V190 total 2,000BHP. 2 - FP prop(s). Changing from Jinan diesels to brand new Mitsubishi main engines. Speed about 11kn. Genset(s): 2 - 80kW 50Hz / Cummins 6BT 5.9D. Southeast Asia. File: TG32056 Tug - Twin Screw - 104.2' loa x 28.2' beam x 13.5' depth x 11.10' loaded draft at YCK Shipyard. Foreign flag. Class: NKK. FO: 170T. FW: 55T. Main Engines: 2 x Yanmar total 2,000BHP. Genset(s): 2 - 40kW, 1 - 78kW. Tug can be finished out in about two months. Southeast Asia.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

118

Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG19083 Tug - Single Screw - 83.6' loa x 23.0' beam x 11.3' depth. Built in 1965at Charles D. Holmes & Co. Ltd; UK. Foreign flag. GRT: 142. Main Engine: 1 x Sulzer total 1,960BHP. FP prop(s). Bollard Pull: 26T. Speed about 13kn. Mediterranean. Prompt. File: TG19096 Multicat / Tug - Triple Screw - 91.8' loa x 41.0' beam x 12.0' depth x 6.20' light draft x 7.50' loaded draft. Built in 2007at Kooiman; Zwujndrecht, Netherlands. Netherlands flag. GRT: 297. Class: BVI + Hull, Mach Tug Unrestricted Nav AUT-UMS. Deadweight: 244mt. 215m3 clear deck. FO: 148m3. FW: 60m3. BW: 52m3. Crane: 2 - HS Marine 20MT @ 13m. Winch: Hydraulic anchor handling / towing forward / aft. Line Pull: 100 / 40MT. Wire Capacity: 100m 56mm / 600m 36mm. Main Engines: 3 x Cummins KTA19M3 total 1,920BHP. 3 - 1,550mm FP prop(s) on C45 steel shaft(s). Kort nozzle(s). 1 Cummins KTA-19M3 for hydraulics. Bowthruster 350HP. Bollard Pull: 29MT. Speed about 11kn. Pump(s): 50m3/h FO & FW transfer pumps including transfer hoses on reels & indicators. Genset(s): 2 - 80kVA / Cummins 220/380vAC 50Hz + shore power. Quarters: 7 in 4 cabins. Air Conditioned. Galley. Unique, custom multipurpose support vessel / multicat with special characteristics & capacities. Shallow draft. Fully fendered. Four push knees forward and two aft. 360deg hydraulically driven retractable thruster. Triple rudders with max rudder angle of 2 x 70 degrees. Heavily constructed 150 ton SWL bow and stern rollers. Two 8T tugger winches with 75m 20mm wire. Two hydraulic 150 tons SWL guide pins. 15MT SWL Mampaey tow hook. Two 600mm x 15m long spuds. 1,000mm dia. moonpool. Cranes remotely operated. Store room / workshop. Open for charter. Try outright purchase. Mid East. August 2013. File: TG17079 Tug - Single Screw - 79.3' loa x 26.8' beam x 14.0' depth x 13.40' loaded draft. Built in 1977 at AB Asi-Verken, Amal. Denmark flag. GRT: 124. Class: LR + 100A1 + LMC. Ice Class 1. Coastal Trade. Winch: Tow hook & polypropylene. Main Engine: 1 x Alpha 12V23LVO total 1,715BHP. CP prop(s). Bollard Pull: 18.5T. Speed about 13kn free. Genset(s): 2 - 88kW 390vAC 50Hz. Quarters: 3 persons. Europe Northern. File: TG17008 Tug - Twin Screw - 87.0' loa x 28.0' beam x 13.3' depth x 9.20' light draft x 10.70' loaded draft. Built in 1967 at Mangone Shipbuilding; Houston, TX. Rebuilt: 2005. U.S. flag. GRT: 128. Class: Formerly ABS Loadline. FO: 40,000g. FW: 7,500g. Winch: Skagit RB-90 double drum. Line Pull: 225,000lb. Wire Capacity: 1,800' x 2"; 1,600' x 1.75". Main Engines: 2 x CAT D398B total 1,700BHP. Last Overhauled: 2005. 2 - FP 86" x 74" 4-blade prop(s) on 8" shaft(s). 2011: One ME replaced. Bollard Pull: 20ST. Genset(s): 2 - 55kW new 2005. Quarters: 8 total. Air Conditioned. Galley. Vessel is reportedly good condition for her age and service. U.S. Gulf Coast. Prompt. File: TG17013 Tug - Twin Screw - 85.6' loa x 30.0' beam x 11.0' depth x 6.00' light x 8.50' loaded draft. Built in 1981 at Dakota Creek; Anacortes, WA. U.S. flag. GRT: 146. ABS Loadline valid till August 2016. FO: 32,330g. FW: 1,650g. BW: 118T. Winch: Single Drum Markey TYS-24 w/gypsy roller. Line Pull: 25,000lb. Wire Capacity: 1,350' x 1 3/4". Main Engines: 2 x CAT D398 total 1,700BHP. Kort nozzle(s). Speed about 11kn on 7.5Tpd. Genset(s): 2 - 90kW 208vAC 60Hz. Quarters: 3 singles, 2 - doubles. Galley. Ice Strengthened, shallow draft. Push knees, hydraulic tow pins, stern roller. Sold to current owner via Marcon. Keen Seller. U.S. East Coast. File: TG17075 Tug - Twin Screw - 75.0' loa x 26.0' beam x 13.5' depth x 10.00' loaded draft. Built in 1983 at Marco; Seattle, WA. U.S. flag. GRT: 96. Class: Not classed. 26' x 20' clear deck. FO: 25,000g. FW: 10,000g. Winch: Markey Single Drum/GM6-71. Wire Capacity: 1,800' x 1.5". Main Engines: 2 x CAT D398TA total 1,700BHP. 2 - FP 4-blade 84" x 69" prop(s). Range: 5,000nm. Speed about 10kn. Genset(s): 2 - 30kW / GM3-71. Quarters: 5 berths. Air Conditioned. Galley. U.S. West Coast. Marcon has handled over a dozen sales and purchase on behalf of sellers over the years. File: TG17091 Tug - Twin Screw - 90.4' loa x 27.1' beam x 12.0' depth x 11.00' draft. Built 1966 at Bollinger Machine. U.S. flag. GRT: 178. ABS Loadline exp. 26 March 2014 - but currently in lay-up status. FO: 35,000g. FW: 10,000g. BW: 2,500g. Winch: Almon Johnson single drum / GM6-71. Wire Capacity: 1,800' x 1.75" capacity. Main Engines: 2 x CAT D398B total 1,700BHP. 2 - FP prop(s) on 7.5" shaft(s). Bollard Pull: 21T. Speed about 12kn free. Genset(s): 2 - 40kW / GM4-71. Quarters: 7 berths. Galley. Laid-up. Owner is keen Seller. U.S. Northwest. Prompt. File: TG18237 Tug - Twin Screw - 77.1' loa x 26.5' beam x 11.0' depth. Built in 1980 at Main Iron Works, Bayou Blue, LA. U.S. flag. GRT: 106. Class: None. FO: 19,500g. FW: 3,500g. Winch: Intercon SD150 single drum / GM4-71 power. Wire Capacity: 2,000' x 1.5". Main Engines: 2 x CAT D398SCAC total 1,700BHP. 2 FP prop(s). Kort nozzle(s). Bollard Pull: 26.4T. Speed about 12kn. Genset(s): 2 - 50kW / GM 4-71. Quarters: 7 crew / 4 cabins. Galley. Owner is a keen Seller. Laid up in fresh water. Steering rudders and Flanking rudders. U.S. Northwest. Prompt. Marcon has handled numerous sales and purchase on behalf of Owners.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

119

Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG16045 Tug - Twin Screw - 85.3' loa x 26.2' beam x 12.0' depth x 9.80' loaded draft. Built in 2012 at Malaysian Shipyard. Foreign flag. Class: NK. FO: 134MT. FW: 53MT. Winch: 25T tow hook. Main Engines: 2 x Yanmar 6AYM-ETE total 1,658BHP. 4-blade FP prop(s). Kort nozzle(s). Speed about 10kn. Pump(s): FO: 100L/m; FW: 2m3/h; GS/Fire:450L/m; Bilge/Ballast: 450L/m. Genset(s): 2 - 50kW / Yanmar. Quarters: 10 crew. Air Conditioned. Galley. Direct from shipyard. 300' barge also available as set. Southeast Asia. One month. File: TG16052 Tug - Twin Screw - 85.3' loa x 26.2' beam x 11.9' depth x 9.70' draft. Built in 2012 at YCK Shipyard. Foreign flag. Class: NK. FO: 134MT. FW: 53MT. Winch: 20T tow. Main Engines: 2 x Yanmar 6AYM-WET total 1,658BHP. 4-blade FP prop(s). Kort nozzle(s). Speed about 10kn. Pump(s): FO & Bilge. Genset(s): 2 - 48kW / Yanmar. Quarters: 10 crew. Air Conditioned. Southeast Asia. File: TG16152 Tug - Twin Screw - 82.0' loa x 24.9' beam x 11.5' depth x 10.50' draft. Built in 1998 at Pacific Ocean Eng. & Trade Pte Ltd. Peru flag. GRT: 163. Class: ABS. FO: 104m3. FW: 28.6m3. Winch: Hydraulic 3MT capstan. Line Pull: 44T brake. Main Engines: 2 x Mitsubishi 56R2-MPTK total 1,636BHP. 2 FP prop(s). Kort nozzle(s). Bollard Pull: 20MT. Speed about 11kn. Pump(s): Bilge: 2 @ 30m3/h. Genset(s): 2 - 60kW/ Perkins 220/440vAC. Firefighting: 500m3/h pump +2 - monitors. Quarters: 8 beds. Air Conditioned. 40T tow hook. Hydraulic 3MT capstan. South America West Coast. File: TG16147 Tug - Twin Screw - 85.3' loa x 26.2' beam x 12.0' depth x 9.84' loaded draft. Built in 2003 at Tang Tiew Hee, Malaysia. Dominica flag. GRT: 193. Class: Indian Register of Shipping. Valid Sept 2013. FO: 143m3. FW: 46m3. BW: 27.8m3. Winch: Hydraulic Tow. Main Engines: 2 x Mitsubishi S6R2.MPTK total 1,600BHP. 2 prop(s). Bollard Pull: 20T. Speed about 10kn on 2,500L at sea. Genset(s): 2 - 80kW / Cummins. Quarters: 10 (2-1, 1-8). Galley. Indian Ocean. Prompt. File: TG14087 Tug - Twin Screw - 72.0' loa x 20.4' beam x 5.6' depth x 6.50' loaded draft. Built in 1949 at G.M. Nichols; Hood River, OR. Rebuilt: 1994. U.S. flag. GRT: 71. FO: 7,000g. Winch: None. Main Engines: 2 x CAT 3508 total 1,550BHP. 3 blade 75" x 60" steel prop(s). Bollard Pull: 19.5T. Genset(s): 2 - 30kW / GM3-71 208vAC. Low freeboard. For sale “as is, where is” out of competition. Mechanically sound with good operational machinery. Requires new exterior water tight doors, blasting and paint, one shaft and both props need to be reworked. U.S. West Coast. Prompt. File: TG20090 Tug - Single Screw - 89.9' loa x 24.6' beam x 11.5' depth x 4.18' loaded draft. Built in 1975 at Scheepswerf Haak BV; Netherlands. Rebuilt: 1989. Denmark flag. GRT: 163. Class: BV + 1 3/3 EE Heavy Ice Class. Ice 1 Super. Special Survey passed 10/2000. Winch: 12/30T. Main Engine: 1 x B&W 10V23LVO total 1,550BHP. Last Overhauled: 1998. 1 - CP prop(s). Alpha diesel completely refurbished 1998/1999. Bollard Pull: 18T. Speed about 12kn on 5T MGO. Genset(s): 2 - 130kVA / Valmont 380/220v. Tow hook & tow winch. Reportedly good condition. Baltic. File: TG15114 Tug - Twin Screw - 91.5' loa x 28.0' beam x 12.9' depth x 11.24' loaded draft. Built in 1982 at Rodriguez Boat, Alabama. Foreign flag. GRT: 100. Class: ABS, A1 Towing, AMS, Unrestricted exp. Oct 2014. Deadweight: 56T. 25m2 clear deck. Winch: Double drum 30T towing. Wire Capacity: 1.5" x 400m. Main Engines: 2 x GM 16V149 total 1,500BHP. 2 - FP prop(s). Bollard Pull: 20MT. Speed about 10-12kn. Genset(s): 2 - 35kW / International driven by GM. 2 3,000gpm monitors. Coastal / Harbor / Firefighting tug. Sale on P&C basis. Caribbean. File: TG14580 Tug - Twin Screw - 80.0' loa x 22.0' beam x 7.1' depth. Built in 1970 at Pacific Towboat, Long Beach, CA. U.S. flag. GRT: 99. FO: 26,310g. FW: 3,466g. Winch: Single drum. Wire Capacity: 1,800' x 1.75". Main Engines: 2 x CAT D348 total 1,450BHP. 2 - FP (72" x 46") prop(s). Bollard Pull: 14ST. 45gph. Genset(s): 2 - Perkins 6-354 208v 3ph 60Hz. Quarters: 6 bunks. Galley. Working tug. Fully operational. U.S. West Coast. File: TG14105 Tug - Twin Screw - 83.6' loa x 26.0' beam x 12.0' depth x 9.84' loaded draft. Built in 2000 at C. E. Ling Shipbuilding Sdn Bhd. Malaysia flag. GRT: 180. Class: Nippon Kaiji Kyokai, NS Tug / MNS LSA, RCF. FO: 130MT. Main Engines: 2 x Cummins 3412B total 1,442BHP. Speed about 10kn. Genset(s): 2 - 41kW / Cummins 4B3.9-G. Southeast Asia. File: TG14073 Tug - Twin Screw - 75.0' loa x 25.0' beam x 10.0' depth x 9.00' draft. Built 1996 at Russell Portier; Chauvin, LA. Rebuilt: 2003. U.S. flag. GRT: 117. FO: 26,000g. Winch: Intercon DD-125. Line Pull: 100,000lb. Wire Capacity: 1,800' 1.5". Main Engine(s): 2 x CAT 3412D total 1,440BHP. 6.16:1 gears. Fixed 82" x 60" props. Gensets: 2 - 40kW. 5 berths in 3 cabins. Hull built by Portier in 1995. Completed by Bollinger in ‘96. Sale out of competition. Working but can develop for sale or lease purchase. U.S. Gulf Coast.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG14100 Tug - Twin Screw - 91.8' loa x 36.1' beam x 10.7' depth x 8.20' draft. Built in 2012 Singapore flag. GRT: 231. Class: ABS + A1 (E) + AMS. Deck Load: 10MT/m2. FO: 141.2m3. FW: 53.7m3. Crane: Fassi 98.2MT marine grade. Hydraulic A-Frame. Winch: Single Drum 50T brake tow & 30T SWL tow hook. Line Pull: 25T. Stern Roller. Main Engine(s): 2 x CAT 3412C TA total 1,440BHP. 4.5:1 gear(s). 1,400mm 4-blade prop(s). Bollard Pull: 19T. Speed about 8.5kn Genset(s): 2 - 150kW / CAT 3406C 415vAC 50Hz. Air Conditioned. Shallow draft, flow-through design Multi-Cat. Draft 4.9' with 50% liquid capacity. Australia. Prompt. File: TG14104 Tug - Twin Screw - 101.7' loa x 37.9' beam x 12.5' depth x 9.84' loaded draft. Built in 2002 at Piasau Slipways Sdn Bhd. Malaysia flag. GRT: 271. Class: BV I Tug. Main Engines: 2 x Mitsubishi S6R2-MPTK total 1,440BHP. FP prop(s). Speed about 11kn. Genset(s): 2 - 65kW / Cummins 4BT 3.9G2. Southeast Asia. File: TG14106 Tug - Twin Screw - 85.5' loa x 27.0' beam x 11.8' depth x 9.84' loaded draft. Built in 2001 at C.E. Ling Shipbuilding Sdn Bhd. Malaysia flag. GRT: 194. Class: Nippon Kaiji Kyokai, NS* Tug / MNS LSA, RCF. Deadweight: 188mt. FO: 175MT. Main Engines: 2 x CAT 3412DITA total 1,440BHP. 2 - FP prop(s). Bollard Pull: 20T. Speed about 11-12kn. Genset(s): 2 - 33kW / Perkins. Southeast Asia. File: TG14144 Tug - Twin Screw - 96.2' loa x 27.3' beam x 14.1' depth x 13.29' draft. Built 1977 at Gorokhovets Shipyard, Russia. Peru flag. GRT: 132. Class: IBS. Deadweight: 46mt. FO: 42m2. FW: 4.0m3. Electric 3MT capstan. Main Engines: 2 x Weichai CW6200ZC total 1,440BHP. 2 - CP prop(s). Kort nozzle(s). Repowered 2008 from Russkiy 6A 30/50s. Props trainable 30 deg. each side. Bollard Pull: 16MT. Speed about 11kn. Genset(s): 2 - 60kW / Detroit Diesel 4L71 220vAC 60Hz. Firefighting: 500m3/h + 2 monitors. Quarters: 7 crew. 40 ton tow hook. South America West Coast. File: TG15075 Tug - Triple Screw - 70.0' loa x 26.0' beam x 10.5' depth x 7.00' light x 9.50' loaded draft. Built 2003 at A&B Industries; Morgan City, LA. U.S. flag. GRT: 83. FO: 33,600g. FW: 8,500g. BW: 12,500g. Winch: 48DPS Smatco single drum. Line Pull: 100,000lb. Wire Capacity: 2,400' x 1.25". Main Engines: 3 x CAT 3406E total 1,350BHP. FP 67" x 65" prop(s). Kort nozzle(s). Speed 10kn. Genset(s): 2 - 55kW / Cummins. Quarters: 5 in 3 cabins. Air Conditioned. Galley. Humphrey marine sanitation device and zero discharge gray water tank. Idle & currently on shore-power, but mains operational and run weekly. U.S. Gulf Coast. File: TG19065 Tug - Twin Screw - 65.0' loa x 23.0' beam x 11.0' depth. Built in 1977 Long Beach, CA. U.S. flag. GRT: 95. FO: 19,500g. Winch: Markey hydraulic double drum. Wire Capacity: 1.5” x 1,500'. Main Engines: 2 x GM 12V149 total 1,350BHP. FP 59"x59" Kaplan prop(s) on 5.5" shaft(s). Stainless steel lined nozzles. Speed 10kn. Genset(s): 2 - 30kW / GM. Quarters: 4. Galley. Steel hull. Aluminum deckhouse. 34" reinforced steel bulwarks. Fully fendered. 2 cat heads, 2 anchor gypsies & wire drum on bow. Both mains rebuilt in 11/1993. Gears replaced new 1996. Elevated fly bridge with controls plus controls aft. Working. Very good condition. U.S. Northwest. Prompt. File: TG12075 Tug - Twin Screw - 75.4' loa x 24.6' beam x 7.87' draft. Built in 1995 at Pacific Ocean, Singapore. Peru flag. GRT: 88. Class: GL. FO: 86m3. FW: 21.6m3. 25T SWL Koyo Tow Hook. Main Engines: 2 x Cummins KTA19M3 total 1,300BHP. FP prop(s). Kort nozzle(s). Bollard Pull: 19MT. Speed 10kn. Genset(s): 2 - 50kW / Cummins 240/415vAC. Firefighting: 2-200m3/h water/foam monitors. Quarters: 10 beds. Air Conditioned. Twin screw tug for sale. 252T tow hook. Range 4,333nm at econ speed. Not for sale into competition. Drydocked 10/97 and passed special survey. South America West Coast. File: TG13093 Tug - Twin Screw - 77.1' loa x 24.0' beam x 10.5' depth. Built in 2012 at Eastern Marine Shipbldg. Sdn; Sibu. Singapore flag. GRT: 148. Class: Nippon Kaiji Kyokai. Main Engines: 2 x Yanmar 6AYMWST total 1,300BHP. 2 prop(s). Bollard Pull: 25T. Southeast Asia. File: TG12082 Tug - Twin Screw - 80.0' loa x 24.0' beam x 9.5' depth x 8.50' draft. Built in 1966 at S.B.A. Shipyards; Jennings, LA; USA. Rebuilt: 2003. U.S. flag. GRT: 145. FO: 25,000g. FW: 8,000g. Winch: Hydraulic single drum. Line Pull: 75,000lbs. Wire Capacity: 2,000' x 1.25". Main Engine(s): 2 x Cummins KTA 19-M4 total 1,280BHP. 5.17:1 gear(s). 72" x 76" prop(s) on 6" shaft(s). Replaced GM 16V92s with new Cummins engines. Fitted with stern controls. Genset(s): 2 - 30kW / GM 371. Quarters: 6 berths in 3 cabins. Air Conditioned. Model bow tug with upper pilothouse with 34' height of eye. For sale out of competition. As brokers, we invite best reasonable firm cash offers for owner's consideration. Working but can be developed. U.S. Gulf Coast.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG12005 Tug - Single Screw - 97.5' loa x 28.1' beam x 13.8' depth x 11.00' loaded draft. Built in 1956 at Davie Shipbuilding; Levis, QC. Rebuilt: 1995. Canada flag. GRT: 244. in one hold. Winch: Single drum 120HP. Wire Capacity: 2,000' x 1.25". Main Engine: 1 x Fairbanks Morse 38D-8-1/8 1,280BHP. Overhauled Winter 2001/01. Genset(s): 2 - 60kW 550vAC 50Hz. Quarters: 4-1 & 4-2 man cabins. Reportedly "ready-to-go". Accommodations re-done Winter 2000/2001. 1-10 & 1-12 man liferafts. Canada East Coast. File: TG10071 Tug - Twin Screw - 69.0' loa x 26.0' beam x 9.1' depth. Built in 1980 at Coastal Pilots; Providence, RI. U.S. flag. GRT: 97. FO: 26,000g. FW: 2,500g. BW: 12,000g. Crane: Hydraulic telescoping boom. Winch: Bevis hydraulic single drum. 2 tow pins. Wire Capacity: 1,800' x 1.5". Stern Roller. Main Engines: 2 x CAT 3412TA total 1,250BHP. Last Overhauled: 1991. 55.6" x 62" 4 blade stainless prop(s) on 5.25" Stainless shaft(s). Kort nozzle(s). Shaft brakes. Endurance 17 days. Genset(s): 2 - 40kW / John Deere. Air Conditioned. Copy of 1999 Survey on request. Not keen Seller but believe can develop out of competition. Working. Reportedly good overall condition. U.S. Northwest. File: TG12355 Tug - Twin Screw - 55.0' loa x 17.4' beam x 9.5' depth x 6.90' loaded draft. Built in 2001 at Blount/Barker Shipyard. U.S. flag. GRT: 63. FO: 10,600L. FW: 800L. 2 - Hyd Pullmaster M25 winches. Main Engines: 2 x CAT 3412 total 1,230BHP. 1,270mm dia prop(s). Bollard Pull: 8.6T. Genset(s): 1 - 32kW / Northern Lights. Model bow harbor tug, square pusher bow with 14' push knees. Open bow, well fendered. H-bitt centerline aft deck. Can be shipped overland with house removed, on an "oversized load" basis. Owner reports spent US $150K in upgrades and modifications. Suggest inspections to determine condition. For sale outside of So. California. 2009 and 2011 surveys on file. U.S. West Coast. Prompt. File: TG12170 Tug - Single Screw - 79.5' loa x 20.1' beam x 10.4' depth. Built in 1951 at Chesapeake Marine. U.S. flag. GRT: 120. Ex ABS Rivers/ Harbor Service. FO: 4,500g. 16" H Bitt / 24" vertical capstan. Main Engine: 1 x CAT D-399 1,200BHP. Genset(s): 2 - 55kW / CAT D3304 230/460vAC. Quarters: None. Galley. 2009 - Owner installed new deck hatches, nav. lights, fold down mast, safety equipment. Reportedly in good condition; low hours on main and auxiliary equipment. Turnkey. 2008 survey on request. U.S. East Coast. File: TG12068 Tug - Twin Screw - 78.4' loa x 25.0' beam x 9.5' depth. Built in 2013 at Malaysian Shipyard. Foreign flag. Class: NKK. FO: 90T. FW: 30T. Winch: 20T tow hook. Main Engines: 2 x Cummins KTA19M3 total 1,200BHP. Genset(s): 2 - 28kW / Yanmar. Quarters: 10 men. Southeast Asia. File: TG12144 Tug - Twin Screw - 87.0' loa x 24.0' beam x 10.8' depth. Built in 1967 at J. Lewis & Sons Ltd, Aberdeen U.K. Foreign flag. GRT: 139. FO: 13T. Main Engines: 2 x Ruston 6APCM total 1,200BHP. 2 - Voith Schneider prop(s). Bollard Pull: 15T. Speed about 10kn max. Genset(s): 2 - 30kW /main engine, 1 - 25kW / Lister 220vDC. Galley. Ideally suited for harbor towage & standby duties. Periodically open for employment. Call for latest update on availability and rate ideas. U.K. File: TG12149 Tug - Twin Screw - 72.4' loa x 24.0' beam x 10.2' depth. Built in 2008 at Hung Seng Shipbuilding Sdn Bhd; Sibu. Singapore flag. GRT: 137. Class: GL + 100A5 Special Survey 2013. Main Engines: 2 x Cummins KTA-19-M3 total 1,200BHP. 2 - FP prop(s). Bollard Pull: 25T. Speed about 10kn. Southeast Asia. File: TG10013 Tug - Single Screw - 100.0' loa x 26.0' beam x 9.0' depth x 12.00' loaded draft. Built in 1944 at Everett Marine Ways, Everett, WA. Rebuilt: 2002. U.S. flag. GRT: 149. Class: Uninspected Towing Vessel. Last drydock July 2012. FO: 21,000g. FW: 5,700g. Winch: Hydraulic, tow. Line Pull: @ 25,000lb. Wire Capacity: 1,500' 1 5/8"-450' 8" insurance. Stern Roller. Main Engine: 1 x CAT D399TA 1,100BHP. 80' x 60' 4 blade stainless prop(s) on 8" steel shaft(s). New Harris alarm system. M/E o'hauled top end in 2011. Bollard Pull: 11.5T. Quarters: 6 in 4 staterooms. Galley. Welded steel. Prefers sale out of the Pacific Northwest. Ex-YTM-763. 500' 15/8" wire under rider. Completed all new wheelhouse with aluminum windows & doors, new exhaust funnel & piping with circ. fan. New galley. Working daily. Excellent condition. 2007 survey on file. U.S. Northwest. Prompt. File: TG10105 Tug - Twin Screw - 65.8' loa x 18.6' beam x 7.1' depth x 5.45' loaded draft. Built in 2005. Foreign flag. Class: Local. Deadweight: 132T. 34m2 clear deck. Main Engines: 2 x CAT 60M457 total 1,040BHP. 2 - FP prop(s). Kort nozzle(s). Bollard Pull: 14T. Speed about 10-13kn. Genset(s): 2 - 35kVA / Stamford. Firefighting: FiFi 1,600gpm. Harbor Tug. Offered on private and confidential basis. H Bitt. Caribbean.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG11060 Tug - Twin Screw - 60.0' loa x 20.0' beam x 7.8' depth. Built in 1970 at A.W. Covacevich; Biloxi MS. Rebuilt: 2003. U.S. flag. GRT: 67. FO: 7,000g. LO: 164g. FW: 2,000g. Winch: Skagit single drum / GM3-71 power. Line Pull: 50,000lb. Wire Capacity: 900' x 1.5". Stern Roller. Main Engine(s): 2 x CAT C-18 total 1,100BHP at 1,800RPM. Twin Disc MG541 4.5:1 gear(s). 49" x 54" 4-blade SS prop(s). Repowered 2010 with Tier II marine diesels Speed about 9kn Genset(s): 2 - 20kW / GM 2-71. 4 berths. Air Conditioned. Model bow coastal tug. Completely rebuilt in 2004. Not actively seeking to sell, but will consider tempting offers. U.S. West Coast. File: TG05073 Tug - Single Screw - 73.5' loa x 17.7' beam x 9.0' depth. Built in 1977 at Greece. Greece flag. GRT: 60. Main Engine: 1 x CAT total 1,000BHP. Clients have own shipyard and can make modifications as required by potential buyers. Mediterranean. File: TG09775 Tug - Twin Screw - 75.5' loa x 26.3' beam x 10.2' depth x 7.38' light x 8.53' loaded draft. Built in 2012 Holland. GRT: 135. Class: BV I + Hull + Mach Aut - UMS, Unrestricted valid til April 2017. Deck Cargo: 30T / 2 TEU on 35m2 clear deck. Deck Load: 3T/m2. FO: 40,000L. FW: 20,000L. Crane: Helia 25/3S 25T/m knuckle. Winch: Double drum waterfall. Wire Capacity: 450m x 32mm + 75m. Stern Roller. Main Engine(s): 2 x CAT C18 total 970BHP. Sailing radius 3,600 / 2,500nm without / with tow. Bowthruster 125HP. Bollard Pull: 15T. Speed about 10kn free. Genset(s): 2 - 45kVA / CAT C4.4-DI 220/380vAC 50Hz. Shallow draft, harbor tug / utility vessel for near coast / harbor assistance & anchor handling. Single push knee forward. Europe. File: TG09699 Tug - Single Screw - 99.1' loa x 25.0' beam x 7.5' depth. Built in 1962 at Yarwood, U.K. Greece flag. GRT: 164. Class: Deepsea A2. Main Engine: 1 x B&W total 960BHP. Clients have shipyard and can make modifications as required by potential buyers. Specifications, plans & price on request to serious named buyers. Mediterranean. Prompt. File: TG08047 Tugs - Twin Screw - 66.4' loa x 20.0' beam x 9.0' depth. Built in 2004. Foreign flag. GRT: 88. Class: BKI. FO: 34m3. FW: 30m3. Main Engines: 2 x Cummins NTA-855 M total 800BHP. 2 - FP prop(s). Bollard Pull: 21T. Genset(s): 2 -24kW / Daewoo DB33. Firefighting: 1 -180m3/h pump. Quarters: 9 crew. Galley. Southeast Asia. File: TG06557 Tug - 57.4' loa x 19.7' beam x 7.55' loaded draft. Foreign flag. FO: 18T. Main Engine: 1 x Poyaud V12 total 650BHP. Voith Schneider prop(s). Bollard Pull: 6T. Speed about 9kn max. Genset(s): 24vAC / Lister with 2.2kva sine wave inverter. Highly maneuverable vessel equipped with removable plowing winch and an “A” frame for performing plowing / sub surface jetting. Periodically also open for employment. U.K. File: TG08043 Tug - Twin Screw - 43.0' loa x 16.4' beam x 5.7' depth. Built in 1988 at Ingleside, Texas Yard. Rebuilt: 2010. U.S. flag. GRT: 35. Light Disp.: 61st. FO: 2,500g. FW: 1,000g. Winch: 2 hand operated deck forward. Double tow bitt aft. Wire Capacity: 0.75". Main Engines: 2 x CAT 3406B total 800BHP. 46" x 38" SS four blade prop(s) on 3" stainless shaft(s). Morse type cable engine controls. New main engine keel coolers in 2010. Pump(s): 1 - Pacer fire pump. Genset(s): 2 - 21kW / Kubota AC keel cooled new 2010. Firefighting: 100lb. semi-portable CO2 fire extinguisher for engine room. Air Conditioned. Galley. Welded steel typical inland tug. Bow fitted with single push knee. Deep "vee" bow. 2-1/2 tier deck aluminum house new in 2010. Completely refurbished November 2010 including replacement of all machinery, vessel equipment, electrical wiring, electronics, gauges, coatings, hydraulics, generators interior joiner work and piping. New bottom jobs April - May 2011. Reportedly very good condition. Copy of 2010 survey & audio gauge on request. Four similar, close-sister tugs available built 1963 – 1993. Motivated seller. Inviting best firm cash offers either individually or en bloc after inspection. U.S. Gulf Coast. File: TG08069 Tug - Twin Screw - 66.4' loa x 20.0' beam x 9.0' depth. Built in 2004. Foreign flag. GRT: 88. Class: BKI. FO: 34m3. FW: 30m3. Main Engines: 2 x Cummins NTA-855 M total 800BHP. 2 - FP prop(s). Bollard Pull: 21T. Genset(s): 2 - 25kW. Quarters: 9 crew. Galley. Southeast Asia. File: TG07665 Tug - Twin Screw - 65.0' loa x 21.0' beam x 9.00' loaded draft. Built in 1997 at Lingco Marine; Sibu, Malaysia. Singapore flag. GRT: 89. Class: GL + 100A5 M Tug. FO: 30MT. FW: 20MT. Main Engines: 2 x CAT 3406B-TA total 760BHP. Genset(s): 2 - 20kVA / Perkins. Quarters: 6 crew. Southeast Asia. File: TG07363 Tug - Twin Screw - 63.9' loa x 21.3' beam x 10.5' depth. Built in 1981 Singapore. GRT: 92. Class: GL. FO: 55T. FW: 23T. Winch: AH&D Towing winch. Main Engines: 2 x CAT D343TA total 730BHP. 2 4blade 1,220mm x 1,016mm prop(s). Endurance: @ 23 days. Bollard Pull: 10T. Speed about 10kn on 2.5Tpd. Genset(s): 2 - 27.5kVA 440v 3ph 50Hz. Quarters: 10 accommodations. Passengers: 12. Southeast Asia.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG06880 Tug - Twin Screw - 80.6' loa x 21.2' beam x 9.6' depth x 4.00' light x 5.30' loaded draft. Built in 1954 at Olson Shipyard; Chicago, IL. U.S. flag. GRT: 137. Last D/D in 1999. FO: 25,350g. FW: 3,520g. E-2000 March Tow winch new in 2,000) Wire Capacity: 1,200' x 1.25". Main Engine(s): 2 x CAT 3406 total 730BHP at 1,800RPM. Last Overhauled: 2002. Twin Disc MG512 2:1 gear(s). 36" x 18" 3 blade SS prop(s) in kort nozzle(s). M/E repower 2002. Genset(s): 2 - 30kW / GM2-71 120/209v. Quarters: 5 in 3 cabins. Shallow draft tug. Push knees. Deckhouse amidships. Height of eye: 25'. M/Es new & Kort nozzles installed 2002 & new push knees. Stored out of water. Laid-up several years without maintenance or heat. In need of refurbishment. U.S. Northwest. Prompt. $200,000 File: TG07060 Tug - Twin Screw - 60.0' loa x 21.0' beam x 7.0' depth x 7.00' loaded draft. Built in 1956 at Claya J. Adams, Cut Off, LA. Rebuilt: 2002. U.S. flag. GRT: 75. 50m2 clear deck. FO: 17,000g. FW: 3,500g. Winch: Bow Winches. Main Engines: 2 x GM 12V71 total 680BHP. 60" x 48" prop(s) on 5" shaft(s). 05/03 - Zero hours. Speed about 10kn. Genset(s): 2 - 50kW / GM 3-71 210/110vAC. Quarters: 3 double berths in 2 rms. Air Conditioned. Galley. Steel hull. Vessel extensively rebuilt with new bottom & all machinery new or overhauled, etc. in 2002. Compliant with recent USCG uninspected tow vessel requirements. U.S. Gulf Coast. File: TG06657 Tug - Tractor - 57.4' loa x 19.7' beam x 7.50' loaded draft. Built in 1971 at France. Foreign flag. GRT: 51. Class: Unclassed. FO: 18m3. Winch: Hydraulic tow hook. Main Engine: 1 x Cummins VTA28M2 total 660BHP. Voith Schneider Type 18G/115 prop(s). Main engine installed in October 1994. Bollard Pull: 6T. Owners have previously operated the vessel in smooth waters with no class required. Inviting offers. Europe. File: TG06077 Tug - Single Screw - 75.8' loa x 21.5' beam x 9.5' depth x 9.02' loaded draft. Built in 1968 at C. Cassens, Emden, Germany. Peru flag. GRT: 80. Class: None. Light Disp.: 189T. in 3 holds. FO: 25.88m3. FW: 30m3. Winch: Hydraulic 16T towing. Main Engine: 1 x DD 16V92 total 620BHP. 1 - 1,880mm dia FP prop(s). Kort nozzle(s). Endurance: 2,290nm. Bollard Pull: 8MT. Speed about 8kn. Genset(s): 2 - 30kVA / Hansa; 2 - 38HP / Detroit 440/230v 50Hz. Quarters: 16 beds. Galley. Tow hook. Range of 2,290nm at econ speed. For sale out of competition. South America West Coast. File: TG05678 Tug - Single Screw - 78.7' loa x 23.0' beam x 8.50' loaded draft. Built in 1972. Rebuilt: 2005. Foreign flag. GRT: 91. Special Survey and Drydock April 2011. P-5 licensed for 12 persons. FO: 30,000L. FW: 1,500L. Crane: 1 - 3T & 8T Hiab Seacrane. Derrick/A-Frame: 3.5T Aframe & 5T Hyd. A-frames. Winch: 1 - 5T. Main Engine: 1 x CAT D379 BTA total 565BHP. Kort nozzle(s). Bowthruster 60HP. Bollard Pull: 10MT. Speed about 11.5kn. Pump(s): Emergency 5,200Lpm fire. Genset(s): 2 - 32kW / Cummins 240/415v 50Hz. One new in 2010. Firefighting: FiFi salvage pump 5,200Lpm. Quarters: 12 persons. Multi-purpose tug capable of also surveying, handling crew changes, oil pollution control, acting as guard vessel and offshore wind farm support. Komara 20 skimming system. Reportedly good condition. Rebuilt in 2004 when all tanks cleaned, hydraulic system redone and main deck coated with special cement-like coating. Electronics upgraded. 43T capacity oil recovery with oil dispersant. 6 man RIB rescue craft. Fresh watermaker. Europe. File: TG04025 Tug - Azimuthing - 25.5' loa x 14.2' beam x 6.2' depth x 4.72' loaded draft. Built in 2010 at Adrenalin Marine in Delta, BC. Canada flag. GRT: 11. Not classed. Light Disp.: 15FO: 340g. Winch: Hawser Winch. Line Pull: 1.43MT. 165' Synthetic line. Main Engines: 2 x Cummins QSB5.9-230 HD total 450BHP. 2 - Z-drives Olympic HD3 props). Kort nozzle(s). Bollard Pull: 3.6MT. Speed about 8kn. Robert Allan & Ron Burchett design. Aluminum construction. Truckable. Canada West Coast. File: TG04548 Tug - Single Screw - 49.2' loa x 16.4' beam x 5.58' loaded draft. U.K. flag. Class: Licensed to carry 10 passengers & 2 crew. FO: 4T. Main Engine: 1 x CAT total 450BHP. 1 - FP prop(s). Bowthruster. Bollard Pull: 5T. Speed about 9kn. Genset(s): 1 - 5.5kVA Kipor. Quarters: Day. Ideally suited for standby / crew transfers. Can also be fitted with an “A” frame, winch & plough for dredging. Periodically open for employment. Call for latest update on availability and rate ideas. U.K.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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Marcon International, Inc. Tug Boat Market Report – May 2013

File: TG03637 Tug - Single Screw - 40.0' loa x 11.3' beam x 4.1' depth x 4.60' loaded draft. Built in 1950 at G.M. Nichols; Hood River, OR. U.S. flag. GRT: 12. Lt. Disp: 12T. FO: 900g. Winch: Hydraulic. Main Engine: 1 x CAT D343 total 365BHP at 1,700RPM. Twin Disc MG 514 3.5:1 gear. 48" x 30" - 4 blade S/S prop on 3 1/2" SS shaft. Welded steel hull, raised aluminum pilothouse. Tow gear, hydraulic winch, tow bitts. 4 - Lifting eyes at deck level. Truckable. Additional engine and cradle may be available for additional cost. U.S. Northwest. Prompt. File: TG02515 Tug - Single Screw - 43.6' loa x 15.0' beam x 4.6' depth. Built in 1977. U.S. flag. Main Engine: 1 x CAT D343S total 250BHP. 4 blade bronze 52" x 40" prop(s). U.S. West Coast. $63,000.

File: TG02441 Tug - Single Screw - 41.7' loa x 14.5' beam x 7.0' depth. Built in 1977 at Singapore. Singapore flag. GRT: 31. Class: NKK, IS. FO: 12T. FW: 6T. Main Engine: 1 x CAT 3306 total 240BHP. 4 blade 1016mm dia prop(s). Endurance: @ 10 days. Bollard Pull: 10T. Speed about 7.5kn on 1.2Tpd. Genset(s): 1 - 3.7kW 230V 13A/26A 3kVA. Quarters: 6 accommodations. Southeast Asia. File: TG01632 Tug - Single Screw - 36.0' loa x 11.3' beam x 4.0' depth x 3.00' light draft x 4.00' loaded draft. Built in 1958 at Houma, LA. U.S. flag. GRT: 10. Class: Last DD Summer 2011. FO: 400g. FW: 130g. Winch: Steel “H” bitt aft. Main Engine: 1 x GM 6-71 total 165BHP. 4 blade 30" x 30" RH prop(s) on 2 Stainless shaft(s). Engine & transmission overhauled 08/98. Speed about 10kn free. Pump(s): 2-115v 1" submersible +2" Honda gas driven. Wood hull. Currently working. Full electronics. Fully fendered. Can be delivered via truck & trailer. Working daily. Hauled and painted annually, most recently Oct 2012. Needs minor work on overhead in engine area. 2001 survey request. U.S. West Coast. Prompt.

We are also interested in receiving your news, press releases and comments on the market for our next market report.

Custom lists of conventional, azimuthing or tractor tugs & AHTSs available for sale, charter or newbuilding designs on request. Further details on these and other tugs and barges are available on our website at www.marcon.com.

www.marcon.com Details believed correct, not guaranteed. Offered subject to availability.

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