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Learn more about HMS in the 2013 Harley Marine Magazine

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<strong>Harley</strong> Mar<strong>in</strong>e ServicesA Full Service Maritime Company<strong>Harley</strong> Mar<strong>in</strong>e Services, Inc. is a lead<strong>in</strong>g provider of mar<strong>in</strong>e transportation services<strong>in</strong> <strong>the</strong> United States. <strong>Harley</strong> Mar<strong>in</strong>e operates on <strong>the</strong> United States West Coast(<strong>in</strong>clud<strong>in</strong>g Alaska), New York Harbor, <strong>the</strong> U.S. Gulf Coast and <strong>the</strong> Mississippi RiverSystem. Services provided <strong>in</strong>clude <strong>the</strong> transportation and storage of petroleumproducts, tanker escort, ship assist, <strong>the</strong> transportation of general cargo and rescuetow<strong>in</strong>g. <strong>Harley</strong> Mar<strong>in</strong>e is <strong>the</strong> parent company of eight bus<strong>in</strong>esses specializ<strong>in</strong>g <strong>in</strong>mar<strong>in</strong>e services and a bulk liquids term<strong>in</strong>al bus<strong>in</strong>ess. <strong>Harley</strong> Mar<strong>in</strong>e providesaccount<strong>in</strong>g, adm<strong>in</strong>istrative, human resources, quality, safety and environmentalservices, as well as operational oversight to <strong>the</strong> subsidiary companies.“My goal for <strong>the</strong> company upon its<strong>in</strong>ception was to become <strong>the</strong> safest andmost environmentally responsible mar<strong>in</strong>etransportation company <strong>in</strong> <strong>the</strong> country whileexceed<strong>in</strong>g our customers’ expectations,ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g a good standard of liv<strong>in</strong>g forour employees, and improv<strong>in</strong>g <strong>the</strong>communities <strong>in</strong> which we live and operate.-<strong>Harley</strong> Franco, President and CEO”Mission Statement<strong>Harley</strong> Mar<strong>in</strong>e Services is <strong>in</strong> <strong>the</strong> mar<strong>in</strong>e transportation and services bus<strong>in</strong>ess.We are dedicated to provid<strong>in</strong>g excellent customer service and ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g ourobligations to employees, shareholders, our community and <strong>the</strong> environment.The operat<strong>in</strong>g companies of <strong>Harley</strong> Mar<strong>in</strong>e Services, as well as <strong>the</strong>ir service areaand bus<strong>in</strong>ess functions are listed below:Company Service Area Bus<strong>in</strong>ess<strong>Harley</strong> Mar<strong>in</strong>e Services Nationwide Management/Adm<strong>in</strong>istration<strong>Harley</strong> Mar<strong>in</strong>e Gulf U.S. Gulf Coast Bunker<strong>in</strong>g/Petroleum Transportation<strong>Harley</strong> Mar<strong>in</strong>e New York New York Bunker<strong>in</strong>g/Petroleum TransportationMillennium Maritime Los Angeles/Long Beach Ship Assist/Tanker Escort/Oceanand Rescue Tow<strong>in</strong>gOlympic Tug & Barge Seattle/Portland Bunker<strong>in</strong>g/Petroleum Transportation/Ocean Tow<strong>in</strong>gPacific Coast Maritime Alaska Ship Assist/Ocean Tow<strong>in</strong>g/Conta<strong>in</strong>erBarge TransportationPacific Term<strong>in</strong>al Services Portland Oil Term<strong>in</strong>al OperationStarlight Mar<strong>in</strong>e Services San Francisco Bay Ship Assist/Tanker Escort/Bunker<strong>in</strong>g/Petroleum Transportation/Ocean andRescue Tow<strong>in</strong>gWestoil Mar<strong>in</strong>e Services Los Angeles/Long Beach Bunker<strong>in</strong>g/PetroleumTransportation


1987Company History<strong>Harley</strong> Mar<strong>in</strong>e's Founder and current Chairman, <strong>Harley</strong> Franco,beg<strong>in</strong>s operation of Olympic Tug and Barge <strong>in</strong> Puget Soundwith one leased tugboat and one leased barge.Olympic Tug and Barge expands to Portland, Oregon as amar<strong>in</strong>e transportation bunker supplier on <strong>the</strong> Columbia andWillamette Rivers.19931997International jo<strong>in</strong>t venture between Olympic Tug and Bargeand Chauvco <strong>in</strong> Gabon, Africa beg<strong>in</strong>s with stor<strong>in</strong>g andtransport<strong>in</strong>g petroleum products.<strong>Harley</strong> Mar<strong>in</strong>e Services is formed as a parent and hold<strong>in</strong>gcompany for future acquisitions.Pacific Coast Maritime is acquired, provid<strong>in</strong>g tug and bargeservices <strong>in</strong> Alaska, Wash<strong>in</strong>gton, and California.Westoil Mar<strong>in</strong>e Services is established through acquisition ofassets from L<strong>in</strong>ks Mar<strong>in</strong>e to provide bunker<strong>in</strong>g and petroleumtransportation <strong>in</strong> <strong>the</strong> Los Angeles and Long Beach Harbors.1998Pacific Term<strong>in</strong>al Services is established to operate <strong>the</strong> PacificNor<strong>the</strong>rn Oil term<strong>in</strong>als for FAMM.2000Millennium Maritime is established <strong>in</strong> <strong>the</strong> Los Angelesand Long Beach Harbors to provide ship assist, tankerescort and tow<strong>in</strong>g services.Public Service Mar<strong>in</strong>e, known for its patented vaporrecovery system <strong>in</strong> Santa Barbara, is purchased.Starlight Mar<strong>in</strong>e Services is established <strong>in</strong> <strong>the</strong> SanFrancisco Bay Area provid<strong>in</strong>g ship assist, tanker escort,petroleum transportation and tow<strong>in</strong>g services.20032006<strong>Harley</strong> Mar<strong>in</strong>e Services certifies a new patented VaporProcess<strong>in</strong>g Unit.<strong>Harley</strong> Mar<strong>in</strong>e New York is established <strong>in</strong> New YorkHarbor to provide bunker<strong>in</strong>g and petroleum transportation.2011<strong>Harley</strong> Mar<strong>in</strong>e Gulf is established <strong>in</strong> <strong>the</strong> U.S. Gulf throughacquisition of MGI <strong>in</strong> Houston, Texas.2012newA year of cont<strong>in</strong>ual growth, <strong>Harley</strong> Mar<strong>in</strong>e Services added 10new double-hull petroleum barges and seven new tugs to itsfleet. The future is bright at <strong>Harley</strong> Mar<strong>in</strong>e as expansion <strong>in</strong>tomarkets cont<strong>in</strong>ue.


Portland, ORGeographical PresenceNATIONWIDE COVERAGESeattle, WASan Francisco, CALos Angeles/Long Beach, CAHouston, TXNew York, NYLOCAL CONTACTINFORMATIONSeattle/Alaska(206) 628-0051Portland(503) 737-0124San Francisco(510) 769-7700Long Beach(310) 831-9200New York(718) 875-7000Dutch Harbor, AKNikiski, AKKetchikan, AKGulf(281) 860-028524 Hour(888) 628-0051Growth Record1987-PRESENT


Mar<strong>in</strong>e Transportation ServicesPETROLEUM SERVICES<strong>Harley</strong> Mar<strong>in</strong>e Services transports petroleum products for all of <strong>the</strong> major oil companies. These servicesconsist of mov<strong>in</strong>g product from one term<strong>in</strong>al (<strong>in</strong>clud<strong>in</strong>g ref<strong>in</strong>eries, offshore platforms and storage facilities) toano<strong>the</strong>r, provid<strong>in</strong>g mar<strong>in</strong>e fuel to ships <strong>in</strong> port (bunker<strong>in</strong>g), and temporarily remov<strong>in</strong>g mar<strong>in</strong>e cargoes fromships just outside of port (lighter<strong>in</strong>g).SHIP ASSIST AND ESCORT<strong>Harley</strong> Mar<strong>in</strong>e Services provides 24 hour ship assist and tanker escort services to shipp<strong>in</strong>g l<strong>in</strong>es that call<strong>in</strong>to U.S. ports. Company tugs provide safe assistance to large tankers, conta<strong>in</strong>er, and bulk ships as <strong>the</strong>yenter and depart from <strong>the</strong> harbors.TANK STORAGE<strong>Harley</strong> Mar<strong>in</strong>e Services stores petroleum products at a mar<strong>in</strong>e term<strong>in</strong>al <strong>in</strong> Portland, Oregon for a major oilcompany. The term<strong>in</strong>al operation receives, stores, blends and ships mar<strong>in</strong>e fuels.RESCUE & GENERAL TOWING<strong>Harley</strong> Mar<strong>in</strong>e Services utilizes its deck barges and tugs to provide coastal and harbor tows for generalcargo, conta<strong>in</strong>ers, equipment, gravel, sand and cement. Local tugs are also capable of perform<strong>in</strong>gemergency and rescue tows to vessels.MARINE VAPOR PROCESSING UNIT<strong>Harley</strong> Mar<strong>in</strong>e Services has developed a state-of-<strong>the</strong>-art, self-conta<strong>in</strong>ed vapor process<strong>in</strong>g unit to process <strong>the</strong>hydrocarbon vapors given off by petroleum products as <strong>the</strong>y are loaded onto barges. This system exceeds airquality standards currently <strong>in</strong> place <strong>in</strong> all Air Quality Districts <strong>in</strong> California by reduc<strong>in</strong>g <strong>the</strong> carbon footpr<strong>in</strong>t. Currently,<strong>Harley</strong> Mar<strong>in</strong>e employs a vapor process<strong>in</strong>g unit that destroys <strong>the</strong> volatile organic composts <strong>in</strong> <strong>the</strong> vapor. Thistechnology allows customers <strong>more</strong> flexibility to trade <strong>in</strong> areas o<strong>the</strong>rwise off-limits. This system is both U.S. CoastGuard and American Bureau of Shipp<strong>in</strong>g (ABS) verified and approved.<strong>Harley</strong> Mar<strong>in</strong>e Service’s Vapor Process<strong>in</strong>g Unit (VPU) processes <strong>the</strong> vapors from <strong>the</strong>product be<strong>in</strong>g loaded <strong>in</strong> a way that liquefies <strong>the</strong>m and returns a high percentage back to <strong>the</strong>liquid product <strong>in</strong> <strong>the</strong> cargo tanks. This form of process<strong>in</strong>g reduces our carbon footpr<strong>in</strong>t,unlike a carbon canister that only scrubs <strong>the</strong> vapors .— Keith Barnes, Director of Petroleum Barge Operations


<strong>Harley</strong> Mar<strong>in</strong>e Services has cont<strong>in</strong>ually led <strong>the</strong> way <strong>in</strong> EnvironmentalManagement Systems. Now, <strong>the</strong> company will aga<strong>in</strong> lead <strong>the</strong> <strong>in</strong>dustry and beone of <strong>the</strong> only tug and barge companies with <strong>the</strong> OHSAS 18001 certificationthrough <strong>the</strong> American Bureau of Shipp<strong>in</strong>g (ABS). The technical name for <strong>the</strong>‘specifications’ that we will achieve is British Standard (BS) 18001,Occupational Health and Safety Assurance Specification. The OHSAS 18001 isone of <strong>the</strong> most widely recognized standards around <strong>the</strong> world. OHSAS 18001while not an ISO Standard, is closely aligned with <strong>the</strong> ISO standard 9001 forQuality Management and ISO 14001 standard for Environmental management.The hallmarks of OHSAS 18001 are sett<strong>in</strong>g clear targets and objectives forimprovement, obta<strong>in</strong><strong>in</strong>g measurable results and implement<strong>in</strong>g structuredapproach to risk assessment.The OHSAS 18001 will direct <strong>Harley</strong> Mar<strong>in</strong>e to systematically m<strong>in</strong>imize <strong>the</strong> riskof <strong>in</strong>cidents and work-related illnesses. The OHSAS 18001 will fur<strong>the</strong>r reduce<strong>the</strong> risk and liability of <strong>in</strong>cidents relat<strong>in</strong>g to <strong>the</strong> personal health and safety of <strong>the</strong>employee. OHSAS 18001 will also address <strong>the</strong> conditions and factors that affector could affect <strong>the</strong> health and safety of temporary workers, contractedpersonnel, visitors, and any o<strong>the</strong>r person <strong>in</strong> <strong>the</strong> workplace.Initial steps to implement <strong>the</strong> OHSAS 18001 program <strong>in</strong>cluded modify<strong>in</strong>gexist<strong>in</strong>g procedures such as <strong>in</strong>cident <strong>in</strong>vestigation and vessel familiarization.Several new procedures <strong>in</strong>clud<strong>in</strong>g Permit to Work, Hazard Identification andRisk Assessment, and Benzene Exposure Awareness have been added to <strong>the</strong>Mar<strong>in</strong>e Operations Manual (MOM) <strong>in</strong> order to lay <strong>the</strong> foundation for <strong>the</strong> OHSAS18001 specification.As a part of <strong>the</strong> OHSAS 18001 specification, <strong>Harley</strong> Mar<strong>in</strong>e provides tra<strong>in</strong><strong>in</strong>g on<strong>the</strong> follow<strong>in</strong>g topics:Bloodborne PathogensElectronic Safety Data SheetsVessel Risk AssessmentOccupational Health and Safety WorkbookBenzene AwarenessH 2 S Hazard Tra<strong>in</strong><strong>in</strong>gOccupational Health and SafetyAt <strong>Harley</strong> Mar<strong>in</strong>e Services <strong>the</strong>re is a cont<strong>in</strong>uous effort to ensure a safe andhealthy work environment for all employees. Below are just a couple of <strong>the</strong>awards <strong>Harley</strong> Mar<strong>in</strong>e has received for its cont<strong>in</strong>uous efforts:2012 Citations of Merit for an Outstand<strong>in</strong>g Feat of Safety (awarded byChamber of Shipp<strong>in</strong>g of America)Jones F. Devl<strong>in</strong> Award - 12 company tugs awarded for operat<strong>in</strong>g 2 fullyears or <strong>more</strong> without a crew member los<strong>in</strong>g a full turn at watch due tooccupational <strong>in</strong>jury


Environmental Stewardship<strong>Harley</strong> Mar<strong>in</strong>e Services is a leader <strong>in</strong> environmental protection and stewardship with<strong>in</strong><strong>the</strong> mar<strong>in</strong>e <strong>in</strong>dustry, and has been s<strong>in</strong>ce 1987. <strong>Harley</strong> Mar<strong>in</strong>e developed a robustmulti-faceted environmental management program that is engag<strong>in</strong>g and <strong>in</strong>novative.The program is designed to allow participation throughout each operat<strong>in</strong>g area of <strong>the</strong>company. S<strong>in</strong>ce receiv<strong>in</strong>g <strong>the</strong> ISO 14001 environmental certification <strong>in</strong> 2008, <strong>Harley</strong>Mar<strong>in</strong>e’s commitment and dedication to <strong>the</strong> environment has been apparent <strong>in</strong> allaspects of <strong>the</strong> company’s operations and is <strong>the</strong> blue pr<strong>in</strong>t for success. In addition to allshore side facilities be<strong>in</strong>g ISO 14001, all motorized vessels are also certified.In 2012, <strong>Harley</strong> Mar<strong>in</strong>e was recognized by <strong>the</strong> International WorkBoat Show as <strong>the</strong>w<strong>in</strong>ner for <strong>the</strong> Comprehensive Environmental Management Plan. This is <strong>the</strong>company’s third WorkBoat Environmental Award s<strong>in</strong>ce 2009. Additionally, 51 of <strong>Harley</strong>Mar<strong>in</strong>e’s vessels received <strong>in</strong>dividual environmental achievement awards from <strong>the</strong>Chamber of Shipp<strong>in</strong>g of America.<strong>Harley</strong> Mar<strong>in</strong>e Services is <strong>the</strong> recipient of <strong>the</strong> follow<strong>in</strong>g environmental awards andaccomplishments s<strong>in</strong>ce 2009:2012 International Workboat Show W<strong>in</strong>ner for Comprehensive EnvironmentalPlan2012 Port of Los Angeles/Long Beach Air Quality Corporate Leadership Award2012 Green Workshop EME Industry Model - NOAA Burke University, NationalScience Foundation2012 California State Legislature - Certificate of Recognition2012 California State Senate - Certificate of Recognition2012 County of Los Angeles - Commendation2012 Certificate of California Congressional Commendation2012 Chamber of Shipp<strong>in</strong>g of America Recognition of Environmental ExcellenceAwards2011 Mar<strong>in</strong>e Environmental Bus<strong>in</strong>ess of <strong>the</strong> Year - Port of Seattle and PropellerClub2011 Keynote Address at <strong>the</strong> Global Greenship Conference & Expo2010 WorkBoat Environmental Award - 1 st place Environmental Initiative2010 <strong>HMS</strong>/HMNY - US Environmental Quality Award from <strong>the</strong> EnvironmentalProtections Agency - this was <strong>the</strong> only environmental award from <strong>the</strong> EPA thatwas given to a maritime company.2009 WorkBoat Environmental Award - 3 rd PlaceIn <strong>2013</strong>, <strong>Harley</strong> Mar<strong>in</strong>e will be tak<strong>in</strong>g occupancy of a new, state-of-<strong>the</strong>-art,environmentally friendly world headquarters build<strong>in</strong>g. The new <strong>Harley</strong> and LelaFranco Maritime Center <strong>in</strong>corporates water conservation, storm watermanagement, and solar power capabilities. The build<strong>in</strong>g construction process<strong>in</strong>cluded construction and demolition recycl<strong>in</strong>g, low emitt<strong>in</strong>g materials <strong>in</strong> <strong>the</strong>build<strong>in</strong>g’s <strong>in</strong>terior, and efficient material use. The build<strong>in</strong>g is designed for both <strong>the</strong>environment and employees-blend<strong>in</strong>g green construction and enjoyable spacessuch as water access, an open-air atrium and great views. It is a 45,000 squarefoot, four story, LEED Gold certified office build<strong>in</strong>g. The build<strong>in</strong>g <strong>in</strong>cludes manyamenities <strong>in</strong>clud<strong>in</strong>g an open multi-story daylight atrium with shared conferencespaces, 2,000 square feet of tra<strong>in</strong><strong>in</strong>g space, fitness room, showers, bike storageand a large outdoor deck overlook<strong>in</strong>g <strong>the</strong> Puget Sound. Glass w<strong>in</strong>dow walls,natural light and natural wood f<strong>in</strong>ishes make for a welcom<strong>in</strong>g and attractive workenvironment. This new build<strong>in</strong>g fur<strong>the</strong>r demonstrates <strong>Harley</strong> Mar<strong>in</strong>e’s commitmentto environmental stewardship.


<strong>Harley</strong> Mar<strong>in</strong>eTra<strong>in</strong><strong>in</strong>g Program<strong>Harley</strong> Mar<strong>in</strong>e Services conducts a well-rounded cont<strong>in</strong>u<strong>in</strong>g education and tra<strong>in</strong><strong>in</strong>g program for all personnel. The program wasdeveloped to enhance <strong>the</strong> safety and education of all company operators and employees.<strong>Harley</strong> Mar<strong>in</strong>e Services has created a Mentor<strong>in</strong>g Program, designed for <strong>the</strong> unique circumstance and company structure. Thebenefits of mentor<strong>in</strong>g are countless. The program is designed for all members of <strong>the</strong> <strong>Harley</strong> Mar<strong>in</strong>e community. It is anopportunity for experienced managers, masters and crewmembers to share <strong>the</strong>ir wisdom, <strong>in</strong>sights and knowledge with <strong>the</strong> nextgeneration of leaders at <strong>Harley</strong> Mar<strong>in</strong>e. Mentor<strong>in</strong>g benefits <strong>the</strong> mentor, coach and mentee. Mentors and coaches ga<strong>in</strong> aleadership opportunity and a chance to mold and <strong>in</strong>fluence <strong>the</strong> culture of <strong>Harley</strong> Mar<strong>in</strong>e. The mentee benefits through goalsett<strong>in</strong>g and knowledge acquisition. Mentees also demonstrate organization, <strong>in</strong>itiative and communication skills.The company’s tra<strong>in</strong><strong>in</strong>g programs are designed to meet IMO requirements for Standards of Tra<strong>in</strong><strong>in</strong>g, Certification andWatchkeep<strong>in</strong>g. <strong>Harley</strong> Mar<strong>in</strong>e teaches employees aspects of Basic Safety Tra<strong>in</strong><strong>in</strong>g, which <strong>in</strong>cludes First Aid/CPR/AED, personalsurvival techniques, safety and social responsibility and basic mar<strong>in</strong>e firefight<strong>in</strong>g. All <strong>Harley</strong> Mar<strong>in</strong>e mar<strong>in</strong>ers participate <strong>in</strong> thisannual tra<strong>in</strong><strong>in</strong>g program, as well as a HAZWOPER refresher. In accordance with ISO 9001 certification, <strong>Harley</strong> Mar<strong>in</strong>e strives forcont<strong>in</strong>ual improvement <strong>in</strong> <strong>the</strong> tra<strong>in</strong><strong>in</strong>g programs and skill assessments developed.


In an effort to cont<strong>in</strong>ue with ongo<strong>in</strong>g education, <strong>Harley</strong> Mar<strong>in</strong>e Services providesCapta<strong>in</strong>s and Mates a two-day simulator tra<strong>in</strong><strong>in</strong>g program. Dur<strong>in</strong>g this simulatortra<strong>in</strong><strong>in</strong>g, students create a voyage plan that follows <strong>Harley</strong> Mar<strong>in</strong>e policies andprocedures. The simulator exercise has a duration of approximately forty-fivem<strong>in</strong>utes and <strong>in</strong>cludes scenarios tailored specifically to <strong>Harley</strong> Mar<strong>in</strong>e and itsoperations. These tra<strong>in</strong><strong>in</strong>gs consist of lectures and demonstrations, as well aspractical exercises and full mission simulation. With this complete tra<strong>in</strong><strong>in</strong>g system,Capta<strong>in</strong>s and Mates alike are better prepared to respond to chang<strong>in</strong>g andunexpected circumstances. They are also ready to better mentor, tra<strong>in</strong>, and pass on<strong>the</strong>ir extensive experience and knowledge.Some of <strong>the</strong> course elements <strong>in</strong>clude:Simulation familiarization and dry-runCOLREGSSituational AwarenessBoat handl<strong>in</strong>g and pilot<strong>in</strong>gResource managementProper use of an assist boatSimulator Tra<strong>in</strong><strong>in</strong>gSafety Tra<strong>in</strong><strong>in</strong>g<strong>Harley</strong> Mar<strong>in</strong>e Services is <strong>in</strong> <strong>the</strong> fourth year of a four-year safety tra<strong>in</strong><strong>in</strong>g programutiliz<strong>in</strong>g a certified tra<strong>in</strong><strong>in</strong>g company. Employees who have completed <strong>the</strong> four-yearcycle will receive credit for a three-day basic safety tra<strong>in</strong><strong>in</strong>g (BST) program. Thetra<strong>in</strong><strong>in</strong>g entails basic firefight<strong>in</strong>g, personal water survival, first-aid, CPR, and <strong>Harley</strong>Mar<strong>in</strong>e Safety topics listed below. Respirator fit test<strong>in</strong>g and HAZWOPER refreshertra<strong>in</strong><strong>in</strong>g are also <strong>in</strong>cluded. <strong>Harley</strong> Mar<strong>in</strong>e exceeds all regulatory m<strong>in</strong>imumrequirements for tra<strong>in</strong><strong>in</strong>g, and prioritizes fur<strong>the</strong>r education, know<strong>in</strong>g that <strong>the</strong>knowledge ga<strong>in</strong>ed and <strong>the</strong> benefits for crewmembers is significant.Tra<strong>in</strong><strong>in</strong>g areas <strong>in</strong>clude, but are not limited to:Accident prevention and occupational healthLadder safetyPersonal protective devicesNPDES Vessel General Permit (VGP) requirementsConf<strong>in</strong>ed space awarenessFire fight<strong>in</strong>gConf<strong>in</strong>ed space awarenessThe hazard communication standardDamage controlMan overboardVessel security


Fleet ExpansionIn <strong>2013</strong>, <strong>Harley</strong> Mar<strong>in</strong>e will be add<strong>in</strong>g new vessels to its grow<strong>in</strong>g fleet. Thevessels are be<strong>in</strong>g built with <strong>the</strong> most technically and environmentally advancedequipment available to meet <strong>the</strong> specific needs of customers and expand<strong>in</strong>gbus<strong>in</strong>ess markets. <strong>Harley</strong> Mar<strong>in</strong>e will ensure that <strong>in</strong>ternal and regulatoryperformance requirements are not only met but exceeded dur<strong>in</strong>g <strong>the</strong> constructionof <strong>the</strong>se vessels.M/V AHBRA FRANCO AND M/V ROBERT FRANCO<strong>Harley</strong> Mar<strong>in</strong>e Services will name two tugs after <strong>Harley</strong> and Lela Franco’schildren, Ahbra and Robert Franco. The first tug, M/V ROBERT FRANCO isscheduled for delivery <strong>in</strong> spr<strong>in</strong>g <strong>2013</strong> while <strong>the</strong> second tug, M/V AHBRAFRANCO is scheduled for delivery <strong>in</strong> mid-summer <strong>2013</strong>. The tugs will enterservice <strong>in</strong> <strong>the</strong> U.S. West Coast and will enhance <strong>Harley</strong> Mar<strong>in</strong>e’s current fleet oftractor tugs operat<strong>in</strong>g <strong>in</strong> <strong>the</strong> bunker<strong>in</strong>g, tanker escort and ship assist markets.The M/V ROBERT FRANCO and M/V AHBRA FRANCO, 100’ x 40’, will be ABSload l<strong>in</strong>e certified. The M/V AHBRA FRANCO is outfitted with Caterpillar’s newlydesigned Tier 3 eng<strong>in</strong>e, <strong>the</strong> most environmentally friendly eng<strong>in</strong>e available on<strong>the</strong> market. The eng<strong>in</strong>e will be field followed by Caterpillar to ensure superiorperformance. The M/V ROBERT FRANCO will have Caterpillar 3516C dieseleng<strong>in</strong>es coupled to <strong>the</strong> Rolls Royce z-drive system. The vessels are alsoequipped with two CAT C9 generators. The propulsion package will produceover 90 tons of bollard pull with a comb<strong>in</strong>ed horsepower of 6,850, giv<strong>in</strong>g <strong>the</strong> tugsexceptional pull<strong>in</strong>g power and maneuverability. Both vessels are outfitted withMackay Mar<strong>in</strong>e Electronics, Technicold by Nor<strong>the</strong>rn Lights HVAC system, twoMarkey w<strong>in</strong>ches - one forward for ship assist and one aft for tow<strong>in</strong>g, and a SmithBerger tow p<strong>in</strong> aft.M/V BOB FRANCOThe M/V BOB FRANCO is be<strong>in</strong>g built accord<strong>in</strong>g to ABS Ice Class DO standardsto ensure she is suitable for perform<strong>in</strong>g <strong>in</strong> one of <strong>the</strong> harshest mar<strong>in</strong>eenvironments <strong>in</strong> <strong>the</strong> country. The vessel is a Jensen 120 Class tug and will befitted with <strong>the</strong> newest Caterpillar C175-16 Tier 3 eng<strong>in</strong>es, giv<strong>in</strong>g her an estimatedhorsepower of 5,360 and bollard pull of 70 tons. Some of <strong>the</strong> specificcharacteristics of this tug <strong>in</strong>clude state-of-<strong>the</strong>-art heated decks, heated potablewater and ballast tanks, Shibata and looped fender<strong>in</strong>g and an <strong>in</strong>ternallystreng<strong>the</strong>ned hull <strong>in</strong> areas specifically susceptible to ice impact. In <strong>the</strong>se areas,<strong>the</strong> thickness of <strong>the</strong> hull plat<strong>in</strong>g was <strong>in</strong>creased for stronger impact absorption.Upon completion, <strong>the</strong> M/V BOB FRANCO will be sent to Cook Inlet to serve<strong>Harley</strong> Mar<strong>in</strong>e customers <strong>in</strong> Nikiski, Alaska.<strong>Harley</strong> Mar<strong>in</strong>e has added a ship assist hawser w<strong>in</strong>ch on <strong>the</strong> bow of <strong>the</strong> M/V BOBFRANCO to effectively dock and maneuver vessels call<strong>in</strong>g <strong>in</strong>to port. The vesselis also fitted with a double drum tow w<strong>in</strong>ch that will give her <strong>the</strong> capability ofperform<strong>in</strong>g emergency assist tows <strong>in</strong> <strong>the</strong> Gulf of Alaska.All <strong>the</strong> vessels are be<strong>in</strong>g built with <strong>the</strong> latest technology and will be us<strong>in</strong>gbiodegradable oils <strong>in</strong> <strong>the</strong> drive unit cavities to ensure <strong>the</strong>ir systems meet andexceed <strong>Harley</strong> Mar<strong>in</strong>e’s <strong>in</strong>ternal and regulatory environmental <strong>in</strong>itiatives. <strong>Harley</strong>Mar<strong>in</strong>e cont<strong>in</strong>ues to diligently upgrade its fleet with new vessels <strong>in</strong> order to betterserve company customers.


AHBRA FRANCOLength: 103 ft. 9 <strong>in</strong>. Beam: 40 ft. Depth: 17 ft. Horsepower: 6,850Market: San Francisco BayROBERT FRANCOLength: 103 ft. 9 <strong>in</strong>. Beam: 40 ft. Depth: 17 ft.. Horsepower: 6,850Market: Los Angeles/Long Beach HarborsBOB FRANCOLength: 120 ft. Beam: 35 ft. Depth: 20 ft. 9 <strong>in</strong> Horsepower: 5,000Market: Cook Inlet


Fleet CapabilitiesFLEET MAINTENANCE<strong>Harley</strong> Mar<strong>in</strong>e’s dedicated and skilled eng<strong>in</strong>eer<strong>in</strong>gteam ma<strong>in</strong>ta<strong>in</strong>s <strong>the</strong> company’s fleet of tugs andbarges to ensure exceptional performance. <strong>Harley</strong>Mar<strong>in</strong>e is committed to us<strong>in</strong>g <strong>the</strong> best availabletechnologies to ensure <strong>the</strong> vessels are operat<strong>in</strong>gsafely and to prevent unscheduled downtime. Wi<strong>the</strong>xperienced shore-side support <strong>in</strong> all of its ports ofoperation, <strong>Harley</strong> Mar<strong>in</strong>e’s qualified crews know<strong>the</strong>y have dependable hands to turn to, should <strong>the</strong>need arise.Real-time snapshot of fleet ma<strong>in</strong>tenance.COMPREHENSIVE CMMS — eMa<strong>in</strong>teMa<strong>in</strong>t, a web-based Computerized Ma<strong>in</strong>tenance Management System (CMMS) is used to keep track ofpreventative and corrective ma<strong>in</strong>tenance as well as regulatory compliance across <strong>the</strong> entire fleet. The system:Provides crews a means of submitt<strong>in</strong>g work requests and receiv<strong>in</strong>g preventative and correctivema<strong>in</strong>tenance work orders.Tracks various metrics like mach<strong>in</strong>ery hours and fuel burn.Each work request goes towards creat<strong>in</strong>g a <strong>more</strong> complete history of <strong>the</strong> equipment, allow<strong>in</strong>g reliabilityefforts such as identify<strong>in</strong>g and elim<strong>in</strong>at<strong>in</strong>g chronicfailures, optimiz<strong>in</strong>g preventative ma<strong>in</strong>tenance andconduct<strong>in</strong>g effective Root Cause Analyses.Early defect and work identification allow <strong>Harley</strong>Mar<strong>in</strong>e Services to be a proactive ma<strong>in</strong>tenancebasedorganization by improv<strong>in</strong>g ma<strong>in</strong>tenanceefficiency and effectiveness, and controll<strong>in</strong>g costs.By accurately track<strong>in</strong>g <strong>in</strong>formation <strong>in</strong> eMa<strong>in</strong>t, <strong>Harley</strong>Mar<strong>in</strong>e can successfully budget and schedule workto be performed <strong>in</strong> a preventative manner prior toequipment problems; thus, m<strong>in</strong>imiz<strong>in</strong>g downtime,improv<strong>in</strong>g reliability and significantly controll<strong>in</strong>gspend<strong>in</strong>g.A powerful report<strong>in</strong>g tool allows management to track performance of various Key Performance Indicators(KPI).Helps keep track of regulatoryAn example of automatically generated preventative ma<strong>in</strong>tenance (pm) work ordercompliance.By digitiz<strong>in</strong>g <strong>the</strong> ma<strong>in</strong>tenancerelated <strong>in</strong>formation, shore-side staffand crews have access tocomplete ma<strong>in</strong>tenance historiesand libraries of draw<strong>in</strong>gs andoperational manuals <strong>in</strong> acentralized location, <strong>the</strong>rebyallow<strong>in</strong>g <strong>more</strong> efficient assetmanagement across multiple ports.The eMa<strong>in</strong>t dashboard provides a real-time snapshot of <strong>the</strong> ma<strong>in</strong>tenance of <strong>the</strong> fleet. It has been identifiedas a ‘best practice’ <strong>in</strong> <strong>the</strong> <strong>in</strong>dustry by auditors and vetters.


Integrated TechnologyIn a world that relies on technology for just <strong>about</strong> everyth<strong>in</strong>g, <strong>Harley</strong> Mar<strong>in</strong>e hasmade a commitment to utilize technology to enhance day-to-day operationsonboard vessels and <strong>in</strong> all offices. Bus<strong>in</strong>ess functions have been streaml<strong>in</strong>ed by<strong>in</strong>corporat<strong>in</strong>g technology and computer-based systems. The Vessel ManagementSystem (VMS) is a complete ship-to-shore software solution to replace traditionalhandwritten paper logs, forms, timesheets, bills of lad<strong>in</strong>g, job nom<strong>in</strong>ations, safetyand regulatory forms, and o<strong>the</strong>r written materials. VMS was specifically designedaround <strong>the</strong> needs of <strong>Harley</strong> Mar<strong>in</strong>e and its customers.<strong>Harley</strong> Mar<strong>in</strong>e CustomerAccess Center<strong>Harley</strong> Mar<strong>in</strong>e’s Customer Access Center (CAC) launched <strong>in</strong>2011. This is an <strong>in</strong>formation warehouse for all customerrelated data and report<strong>in</strong>g needs. Focused on deliver<strong>in</strong>gcustomers real-time <strong>in</strong>formation related to schedul<strong>in</strong>g, bill<strong>in</strong>g,and operations, <strong>the</strong> CAC is a “made to order” platformdesigned around <strong>the</strong> <strong>in</strong>dividual data and report<strong>in</strong>g needs of<strong>in</strong>dividual <strong>Harley</strong> Mar<strong>in</strong>e customers.<strong>Harley</strong> Mar<strong>in</strong>e Services is capable of deliver<strong>in</strong>g <strong>the</strong>follow<strong>in</strong>g <strong>in</strong>formation through <strong>the</strong> CAC:Schedul<strong>in</strong>g Customer Order Nom<strong>in</strong>ation Real-Time Schedule and Dispatch Updates Additional Customer-Required Information Fields On-Demand Report<strong>in</strong>g Formats Boat and Barge Position<strong>in</strong>g ReportsBill<strong>in</strong>g Electronic Invoice Presentment Invoice Archive Contract Data “Live” Invoice Fuel and Lube History and Report<strong>in</strong>gOperations & Regulatory Digital Tug and Barge Logs Safety Statistics and Compliance Report<strong>in</strong>g Ma<strong>in</strong>tenance History and Plann<strong>in</strong>g


Community InvolvementS<strong>in</strong>ce <strong>in</strong>ception, <strong>Harley</strong> Mar<strong>in</strong>e Services has been committed to several charity andcommunity programs. <strong>Harley</strong> Mar<strong>in</strong>e also supports many different organizations <strong>in</strong> whichemployees are <strong>in</strong>volved with outside of work. Below is just a glimpse of <strong>the</strong> many diversefoundations <strong>Harley</strong> Mar<strong>in</strong>e is actively <strong>in</strong>volved with.CYSTIC FIBROSIS FOUNDATIONOne of <strong>the</strong> most significant organizations supported<strong>in</strong> time and resources is <strong>the</strong> Cystic FibrosisFoundation. The ultimate goal of <strong>the</strong> foundation is tobetter <strong>the</strong> lives of children liv<strong>in</strong>g with cystic fibrosisand to one day f<strong>in</strong>d a cure for <strong>the</strong> disease.<strong>Harley</strong> Mar<strong>in</strong>e Services is proud and honored toname vessels after supporters and victims of thisdevastat<strong>in</strong>g disease. Each vessel <strong>the</strong>n becomes asymbol of <strong>Harley</strong> Mar<strong>in</strong>e’s cont<strong>in</strong>ued fight aga<strong>in</strong>stcystic fibrosis <strong>in</strong> hopes of f<strong>in</strong>d<strong>in</strong>g a cure.LUNGevity FOUNDATION<strong>Harley</strong> Mar<strong>in</strong>e Services participates <strong>in</strong> <strong>the</strong>longevity foundation Brea<strong>the</strong> Deep walk <strong>in</strong> Seattleevery year and supports <strong>the</strong>ir efforts <strong>in</strong> unit<strong>in</strong>g <strong>the</strong>country <strong>in</strong> one movement to end lung cancer. Thefoundation uses <strong>the</strong>ir funds towards research <strong>in</strong>toearly detection and successful treatment of lungcancer.<strong>Harley</strong> Mar<strong>in</strong>e’s team <strong>in</strong> San Francisco for <strong>the</strong> CysticFibrosis Foundation event “Great Strides”<strong>Harley</strong> Mar<strong>in</strong>e’s Team Todd after Brea<strong>the</strong> Deep walkwhich raised money for <strong>the</strong> LUNGevity FoundationAMERICAN CANCER SOCIETYIn 2012, <strong>Harley</strong> Mar<strong>in</strong>e launched a company-wideeffort <strong>in</strong> support of <strong>the</strong> Cystic Fibrosis Foundationand each port participated <strong>in</strong> <strong>the</strong>ir local GreatStrides 5K race. As a company, over $24,000 wasraised <strong>in</strong> support of f<strong>in</strong>d<strong>in</strong>g a cure.KAPLAN CANCER RESEARCH FUNDIn support of <strong>the</strong> American Cancer Society (ACS),<strong>Harley</strong> Mar<strong>in</strong>e took <strong>the</strong> <strong>in</strong>itiative to sell yellow“Team Todd” wrist bands to raise awareness oflung cancer. Over $31,000 was raised <strong>in</strong> donationsby <strong>Harley</strong> Mar<strong>in</strong>e for ACS.Dr. Henry Kaplan is a beloved oncologist and <strong>the</strong>lead researcher for many cl<strong>in</strong>ical trials currentlyavailable at <strong>the</strong> Swedish Cancer Institute. <strong>Harley</strong>Mar<strong>in</strong>e donates to this fund to support our CFO,Todd Prophet, who is currently battl<strong>in</strong>g lungcancer.JUVENILE DIABETESRESEARCH FOUNDATION<strong>Harley</strong> Mar<strong>in</strong>e Services supports this foundation and,similar to <strong>the</strong> Cystic Fibrosis Foundation, has namedvessels <strong>in</strong> its fleet after children liv<strong>in</strong>g with juvenilediabetes, br<strong>in</strong>g<strong>in</strong>g additional awareness to <strong>the</strong> cause.

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