Crowley to build four more ATBs by 2010

Alaska Business Monthly, Dec, 2006

Crowley Maritime Corp.'s Vessel Management Services subsidiary has signed a contract with VT Halter Marine Inc. to build four more articulated tug-barge (ATB), 185,000-barrel tank vessels. The new vessels will have an estimated delivered cost of approximately $236 million, including owner-furnished equipment. The vessels will be delivered in six-month intervals between the first half of 2009 and the end of 2010.

The four new ATBs (Pride/650-7, Achievement/650-8, Innovation/650-9 and Vision/650-10) will be operated by Crowley's petroleum services segment as they are completed. These four new vessels will bring Crowley's total ATB fleet to 14, consisting of four 155,000-barrel and 10 185,000-barrel ATBs. Four of Crowley's 155,000-barrel vessels, the Sea Reliance/550-1, Sound Reliance/550-2, Ocean Reliance/550-3 and Coastal Reliance/550-4 have each made more than 100 successful voyages and moved more than 75 million barrels of product with zero spills in the last four years, averaging approximately 21 million barrels moved a year.

The first of the 185,000-barrel ATBs, Pacific Reliance/650-1, was christened at the end of March. The second vessel of this type, Gulf Reliance, has been delivered and the 650-2 is under construction for Crowley at VT Halter's facilities in Mississippi and is scheduled for delivery in the fourth quarter of 2006 while the remaining vessels contracted in 2005 (Resolve/650-3, Commitment/650-4, Courage/650-5 and Integrity/650-6) will be delivered by 2008.