Tug Boat Market Report - Marcon International, Inc.

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Marcon International, Inc. Vessels and Barges for Sale or Charter Worldwide August 2016

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

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

Feb 2012

75

133

132

153

81

45

14

17

7

1

658

Feb 2013

92

166

167

153

73

34

17

15

8

2

727

Feb 2014

86

151

184

136

63

38

13

9

5

2

687

Aug 2014

78

117

170

131

69

34

11

6

6

1

623

Nov 2014

74

120

168

135

67

35

10

9

8

1

627

Feb 2015

74

117

163

134

66

38

15

8

7

0

622

May 2015

66

121

150

147

70

44

16

9

6

3

632

Aug 2015

65

123

168

133

64

46

17

8

6

5

635

Nov 2015

71

123

179

124

64

42

17

8

7

5

640

Feb 2016

66

114

164

127

69

41

17

6

4

6

614

May 2016

65

113

168

133

71

42

17

7

2

5

623

Aug 2016

55

108

161

153

79

43

19

10

4

5

637

Aug 2016 - U.S.

18

21

26

26

9

6

5

5

1

0

117

Aug 2016 - Foreign

37

87

135

127

70

37

14

5

3

5

520

Avg. Age - Worldwide

1980

1988

1989

1995

1999

2001

2002

1978

1999

1993

Avg. Age - U.S.

1959

1967

1967

1973

1981

1976

2006

1970

1991

0

Avg. Age - Foreign

1992

1993

1993

1999

2001

2006

2000

1985

2002

1993

19

47

56

63

38

21

9

6

9

17

2

8

11

15

6

2

1

1

1

0

47

17

39

45

48

32

19

8

5

8

17

238

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

Up Since Last Report

9,000 Plus

Total

285

Down Since Last Report

Market Overview Of the 13,121 vessels and 3,816 barges that Marcon currently tracks, 4,945 are tugs with 637 currently officially on the market for sale worldwide, up 2.25% since May and 0.32% from August 2015. Of the tugs for sale, 55.19% of foreign and 96.58% of U.S. tugboats are direct from Owners. 217 or 34.07% of the tugs worldwide, primarily foreign flagged, were built within the last 10 years, are newbuilding re-sales or currently under construction – compared to 35.75% one year ago. 64 (10.05%) are over 50 years of age. Thirteen have no age listed. The oldest tug Marcon currently has listed was built in 1912 and is very last of over 1,000 first generation steam trawlers and halibut fishers. This “old lady” is balanced by 25 newbuildings up to 8,076HP scheduled for delivery in 2016.

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

Marcon International, Inc. Tug Boat Market Report – August 2016

The majority of tugs Marcon tracks for sale as of the time this report is being written are in Southeast Asia with 134 tugs officially on the market (131 last report), followed by 116 in the U.S. (123), 78 in the Mid-East (69), Europe with 71 (65), 69 in the Far East (66), 55 in the Mediterranean (55), 25 in the South Pacific (27), 23 in Latin America (21), 19 in the Caribbean (18), 15 in Africa (20), 15 in Canada (14), 9 where location unstated (6) and 8 in Southwest Asia (8). CAT diesels still power most tugs for sale with machinery in 150 or 23% of the tugs Marcon lists. This is followed by 90 Cummins, 63 EMD, 55 each Niigata and Yanmar, 24 each Deutz-MWM and Mitsubishi, 23 GM/DD and 19 Wartsila powered tugs. 134 tugs are powered by machinery from other manufacturers from ABC to Zibo with, as always seems, five Fairbanks Morse boats still on the market. In tugs listed for sale since August 2011, CAT and Yanmar powered vessels are up 5 percentage points each, Niigata is up 3 points, Mitsubishi and Wartsila are up 2 points each and EMD is down 3 points. There has been a definite shift in the second-hand tug market over the last few years with newer boats, many of which are ASDs out of Southeast Asia and the Far East, being offered for sale. Five years ago, only 31.45% of the tugs worldwide, primarily foreign flag, were built within the previous ten years compared to 34.07% today. The United States also then had the largest selection of tugs listed for sale with 145 available (24.1%) tracked by Marcon (plus nine additional U.S. flag tugs overseas). 102 tugs were located in Southeast Asia (17.0%), 93 tugs in Europe (15.5%), Far East 87 (14.5%), Mediterranean 65 (10.8%), Mid-East 35 (5.8%) and Caribbean 24 (4.0%). Looking at types of tugs available for sale worldwide, conventional twin screw tugs still prevail today with 382 (60.0%). These are followed by 148 azimuthing tugs (23.2%) on the market, 92 singlescrew tugs (14.4%), 12 Voith Schneider tractor tugs (1.9%) and three triple screw (0.5%). As a comparison and demonstrating the trend in propulsion, five years ago 20.0% of the 601 tugs for sale were single screw, 60.1% twin screw, 16.1% azimuthing and 3.3% were Voith Schneider. More ASD tugs are being listed for sale worldwide than single screw tugs. The scrapping of older single screw tugs continues as they are seldom able to be sold for further commercial trade. The greatest global changes in horsepower for sale in the last five years have been in the 2,000 – 2,999HP range with 40 tugs more available today with an average age of 27 years compared to August 2011 when the average age of the 121 vessels listed was 28 years. Tugs in the 3,000-3,999HP range increased by 21 from five years ago. Average age stayed at 21 years, with average build date now of 1995. There are also thirteen more 4,000 – 4,999HP tugs today (17 years vs. 19 years). There are 25 fewer under 1,999BHP and 13 fewer 7,000-7,999BHP tugs on the market today. Actual sale prices of all vessels and barges sold by Marcon to-date has averaged 95.49% of asking prices. In 2015 actual sales prices averaged 84.95% of asking prices, compared to 2014’s 85.65%, 2013’s 87.07% and 2012’s average 81.79%. Five tugs were sold so far in 2016 with an average price per BHP of $291.94 and average age of 36 years. Five tugs were sold in 2015 with an average price of $243.20 and average age of 34 years. Seven tugs were sold in 2014 with an average price per BHP of $282.55 and average age of 41 years. These are lower than 2013’s average price per BHP for a “generic” 33 year old twin screw tug of US$ 324.78. 2014 sales included both foreign and domestic tugs and actual ages covered a relatively narrow range from 32 to 47 years of age, whereas 2015’s sales included one foreign and four U.S. sales with ages ranging from 8 to 50 years and 2016’s to date include one foreign and four U.S. sales with ages ranging from 19 to 50 years. We continue to see updates about vessels scrapped or repossessed and we believe that 2016’s uptick in $/BHP is temporary due to the specific vessels and that prices, especially for older vessels, will continue to decline for the next few years. 2

www.marcon.com

Details believed correct, not guaranteed. Offered subject to availability.

Marcon International, Inc. Tug Boat Market Report – August 2016

Recent Marcon Tug Sales & Charters Out of thirteen sales so far this year, Marcon has sold five tugs totaling 7,690HP and one 1,360HP inland river pushboat. Two additional tugs are under offer and expected to close within the next 45 days. Three 5,000+ HP twin screw and ASD tugs continue to be fixed on previously arranged long-term charters in the U.S. and Latin America. Since 1981, Marcon has sold or chartered 318 tugs totaling 986,875BHP and hoping to break the 1,000,000BHP mark by the end of this year. Olympic Tug & Barge of Seattle, Washington has sold their U.S. flag, harbor tug “Catherine Quigg” (ex-Swanee) to U.S. East Coast buyers to support marine construction and dredging operations in that region. The 65.0’ x 23.0’ x 11.0’ depth, twin screw tug was built by Jones Tug & Barge of Long Beach, California in 1977 for local service and originally powered by a pair of 455HP GM16V71s. Hull is welded steel with an aluminum two-level deck house fitted with an upper pilot station. The tug was later acquired by Olympic Tug & Barge who upgraded and repowered her with the current GM12V149s developing a total of 1,350BHP at 1,650RPM, Twin Disc MG520 5.04:1 gears and 59” x 59” 4-blade Kaplan fixed pitch props in stainless steel lined kort nozzles. ABS certified bollard pull is 18.85 short tons ahead, free running speed 10.5kn and range abt. 4,000nm. Towing gear consists of a Tulsa hydraulic double drum side-by-side tow winch with a capacity of 2,000’ of ½” tow wire plus a soft-line on the second drum, an “H” bitt and three manual tow pins. “Catherine Quigg” worked mostly as a day boat, packing just under 20,000g of fuel. She has a small crew cabin, galley and mess area. Electrical power is provided by a pair of 30kW / GM4-71 generators. Tug is fully fendered. This is the fifth tug Marcon has sold this year, totaling 7,690HP th and 318 tug sold or chartered, totaling 986,857HP, over the last 35 years. Marcon acted as sole broker in the sale. Marcon International, Inc. is pleased to announce the sale of a U.S. flag 52,000 barrel capacity, ocean single hull tank barge on private & confidential terms. The ABS +A1 Oil Tank Barge classed barge, measuring 300' loa x 64.1' beam x 21.8' depth, was built in 1970 at Bollinger Gretna, LLC. The barge will be converted to deck service by the buyers. This is the third ocean tank barge Marcon has sold this year, th totaling 110,000bbl capacity and the 90 ocean tank barge, totaling 6,836,987bbl, over the last 35 years. Marcon acted as sole broker. The U.S. flag, ABS coastal loadline, deck barge “Islander” was sold between U.S. West Coast interests. The 128‘ x 38‘ x 7’8” barge was built in 1964 at Southern Oregon Marine, carries around 532 tonnes of cargo and is fitted with a 26’ long x 12.5’ – 18’ wide aft ramp. Until recent times, “Islander” served as a freight barge to Santa Catalina Island off the southern Californian coast, but was deemed excess to requirements after the contract changed hands. New owner intends to convert the barge to trade outside of deck freight service. Marcon was sole broker in the transaction and has handled a number of previous purchases and sales over the years for the buyer. Marcon has sold 244 deck barges, totaling over one million deadweight tons capacity, over the last thirty-five years. The U.S. flag, inland deck barge “Lockwood 2001” was sold to U.S. Mid-West interests. Built in 1991 by Conrad Industries, Inc. of Morgan City, Louisiana, the single raked barge measures 200’ x 48’ x 12’ depth and has a cargo capacity of 2,350 short tons on a draft of abt. 10.5’ and a deck strength of abt. 1,800PSF. A 44’ long x 24’ wide sloped ramp is set into the stern. Marcon acted as seller’s broker in this transaction, for whom we have sold numerous barges in the past.

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

3

Marcon International, Inc. Tug Boat Market Report – August 2016 Worldwide Number of Tugs After reporting a decline in May in the worldwide number of tugs for the first time since we began tracking it January of 2007, there was a rebound of 1.69%, with the total tugs higher than one year ago by 3.18% and by 24.21% five years ago. 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 September 5, 2016, there were 18,219 “sea-going” tugs over 100GRT worldwide, up from 17,917 and 17,497 in May 2016 and August 2015, respectively. Total horsepower is 48,959,144BHP, up 691,566BHP since May. Even taking into account flags of convenience, the largest national fleet of tugs over 100GRT still sails under Indonesian flag with 3,859 tugs totaling 6,658,335BHP. The U.S., as the second largest national fleet of tugs, operates 1,495 “sea-going” tugs over 100GRT, or 8.21% of the world market, totaling 5,122,590BHP (10.46% global BHP). Average age of tugs worldwide is 21 years with the U.S. flag “sea-going” fleet now at 34 years (built 1982). The “Unknown” flag group is 1,757 tugs, 9.64% of the world market, or 2,981,240BHP, which indicates to us that more tugs may be falling off the radar screen or IHS Sea-Web may be changing their criteria. Top 50 “Sea-Going” Tug Fleets By Units as Of August 2016 According to IHS Fairplay Sea-Web Flag Worldw ide Indonesia Unknow n United States Of America Japan Singapore Malaysia Panama Korea, South Russia India Italy Australia United Kingdom Brazil Canada Turkey China, People's Republic Of St Vincent & The Grenadines Iran Philippines Venezuela Mexico United Arab Emirates Spain Netherlands Egypt Saudi Arabia Vietnam Nigeria Ukraine Greece Thailand France Chinese Taipei Germany Norw ay Chile Malta Argentina Bahrain Colombia Qatar Algeria Portugal Kuw ait Peru Finland Libya Sw eden

Total BHP 48,959,144 6,658,335 2,981,240 5,122,590 2,575,504 2,078,844 1,149,871 1,595,260 1,424,516 1,225,380 1,171,389 1,081,799 921,783 766,540 883,605 714,076 796,915 806,304 801,060 480,207 459,192 564,367 636,716 570,567 647,755 852,770 468,928 511,770 328,427 390,011 254,368 239,379 320,475 415,002 253,004 366,505 304,588 338,954 392,687 211,248 217,218 226,901 216,139 228,485 151,528 222,758 194,278 141,767 148,102 119,872

% 100.00% 13.60% 6.09% 10.46% 5.26% 4.25% 2.35% 3.26% 2.91% 2.50% 2.39% 2.21% 1.88% 1.57% 1.80% 1.46% 1.63% 1.65% 1.64% 0.98% 0.94% 1.15% 1.30% 1.17% 1.32% 1.74% 0.96% 1.05% 0.67% 0.80% 0.52% 0.49% 0.65% 0.85% 0.52% 0.75% 0.62% 0.69% 0.80% 0.43% 0.44% 0.46% 0.44% 0.47% 0.31% 0.45% 0.40% 0.29% 0.30% 0.24%

# Tugs 18,219 3,859 1,757 1,495 761 687 522 514 490 442 418 326 247 243 240 238 238 234 218 215 209 188 181 181 180 170 166 156 147 138 124 122 118 114 99 99 91 80 75 71 68 64 64 61 61 59 59 56 55 54

% 100.00% 21.18% 9.64% 8.21% 4.18% 3.77% 2.87% 2.82% 2.69% 2.43% 2.29% 1.79% 1.36% 1.33% 1.32% 1.31% 1.31% 1.28% 1.20% 1.18% 1.15% 1.03% 0.99% 0.99% 0.99% 0.93% 0.91% 0.86% 0.81% 0.76% 0.68% 0.67% 0.65% 0.63% 0.54% 0.54% 0.50% 0.44% 0.41% 0.39% 0.37% 0.35% 0.35% 0.33% 0.33% 0.32% 0.32% 0.31% 0.30% 0.30%

Avg BHP 2,687 1,725 1,697 3,426 3,384 3,026 2,203 3,104 2,907 2,772 2,802 3,318 3,732 3,154 3,682 3,000 3,348 3,446 3,675 2,234 2,197 3,002 3,518 3,152 3,599 5,016 2,825 3,281 2,234 2,826 2,051 1,962 2,716 3,640 2,556 3,702 3,347 4,237 5,236 2,975 3,194 3,545 3,377 3,746 2,484 3,776 3,293 2,532 2,693 2,220

Avg Age 1996 2007 1991 1982 2000 2009 2004 1994 1991 1990 1997 1987 2000 1993 2003 1977 1999 1995 2003 1991 1980 1991 1991 2001 1994 2004 1992 1993 2001 1992 1984 1977 1986 1996 1989 1991 1985 2004 2006 1985 1994 1997 2006 1990 1982 1999 1997 1971 1991 1969

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

4

Marcon International, Inc. Tug Boat Market Report – August 2016

At the time of our August 2015 tug market report, the average horsepower for the world’s 17,658 “sea-going” tugs was 2,662BHP with an average year built of 1992. Today’s 18,219 tugs have an average horsepower of 2,687BHP, with an average year built of 1996 – a slight improvement in both HP and age. The U.S. fleet in August 2015 included 1,474 “sea-going” tugs with an average horsepower of 3,385BHP and an average year built of 1979. Today’s U.S. fleet has increased to 1,495 tugs with an average horsepower of 3,426BHP and a year built of 1982, i.e. an average age of 34 years, which also shows a very gradual replacement of the older, lower horsepower tugs - most notably with higher horsepower and more efficient twin screw AT/B tugs and azimuthing shipdocking and escort tugs.

Breakdown of U.S. “Sea-Going” Fleet Following is a breakdown of the U.S. sea-going tug fleet as of August 2016, according to IHS Fairplay Sea-web, compared with May 2016. As of August 2016, the U.S. domestic tug fleet consisted of 1,495 “sea-going” tugs totaling 5,122,590BHP. The U.S. flag fleet increased by six and total horsepower by 27,758BHP. High horsepower and large tugs are easy to track, but Sea-web has data on only 50 U.S. tugs under 999BHP. As most “under 1,000HP” U.S. tugs are below 100 GRT, they are not included in the Registry. Not counting pushboats, there are eight to nine hundred additional small tugs within U.S. coastal waters. U.S. Sea-Going Tug Fleet Over 100GRT By BHP According to Lloyd’s Register as of August 2016 Total # Avg. BHP Avg. LOA Avg. Beam Avg. Depth Avg. Year Built

Unknown BHP 119 88 28 11 1976

Under 999 50 782 81 23 9 1951

10001999 262 1,504 87 26 11 1965

20002999 209 2,365 96 29 13 1976

30003999 281 3,410 104 32 15 1981

40004999 255 4,353 106 34 15 1993

50005999 128 5,431 110 36 17 1996

60006999 85 6,368 112 38 18 2002

70007999 49 7,171 136 39 20 1986

80008999 10 8,066 137 41 20 1996

9000 Plus 47 11,270 142 47 25 2005

Total 1,495

Previous U.S. Sea-Going Tug Fleet Over 100GRT By BHP According to Lloyd’s Register as of May 2016 Total # Avg. BHP Avg. LOA Avg. Beam Avg. Depth Avg. Year Built

Unknown BHP 115 88 28 12 1974

Under 999 50 782 81 23 9 1951

10001999 264 1,504 87 26 11 1965

20002999 210 2,364 96 29 13 1975

30003999 282 3,412 105 32 15 1981

40004999 257 4,351 106 34 15 1993

50005999 122 5,428 110 36 17 1995

60006999 83 6,375 112 38 17 2002

70007999 49 7,171 136 39 19 1986

80008999 10 8,066 137 42 21 1996

9000 Plus 47 11,265 142 47 24 2005

Total 1,489

Of the 1,495 U.S. tugs in Sea-web’s, 188 have unknown engines. 499, or 38% where type is known, are powered by EMDs, 422 (32%) by CATs, 107 (8%) by General Motors / Detroit Diesels, Alco and Cummins have 4%, Fairbanks Morse and M.T.U. (Rolls Royce) are tied with 3% each and Wartsila has 2% of the market share. 370 (25%) and 800 (53%) are conventional single and twin screw, respectively. The remaining 22% are 264 azimuthing, 38 triple screw and 23 Voith tractor tugs. Five years ago, of 1,500 U.S. flag tugs, 498 or 40% were powered by EMDs, 369 (30%) by CATs and 112 (9%) by General Motors / DD. We can see that CATs and EMDs gained two percentage points each, while GM/DDs fell by one from five years ago. In regards to propeller types, today there are 81 fewer single screw, 15 more twin screw and 61 more azimuthing U.S. flag tugs today compared to the fleet statistics in May 2011.

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

5

Marcon International, Inc. Tug Boat Market Report – August 2016

New Construction, Shipyard and Conversion News th

According to “Fairplay Newbuildings”, as of 5 September, there were 6,017 ships over 299GRT on the World Orderbook, down 352 from May and down 574 from newbuildings one year ago. Of the total number on today’s orderbook, 556, or 9.24%, are tugs or “towing / pushing” vessels, down from 604 in May. This is, of course, down from a peak of 768 in October 2008. 602 of today’s total newbuildings, down 72 from May, are OSVs and 289 (no change) are “Offshore – Other”. Of 556 tugs listed by Fairplay under construction, China PR leads the order book with 134 tugs being built, down 11 from May. They are followed by Malaysia at 69 (down 4) tugs, Vietnam 54, Turkey 38, Indonesia 36, 26 Egypt, 17 each Japan, Spain, the UAE and the USA, 14 Mexico, 13 each Poland and Romania, 11 Singapore, Brazil 9, South Africa 8, 7 each India and Russia, 6 each Qatar and South Korea, Canada, Cuba and Netherlands 5 each, 4 Italy, 3 each Argentina, Iran and Thailand, 2 each Germany and Philippines and 1 each Bangladesh, Chile, Serbia, Ukraine and Venezuela. Of 604 reported tugs being built the end of April, abt. 84.0% were scheduled to be delivered in the remainder of 2016, 14.4% in 2017, 1.4% 2018 and 0.2% each during 2019 and 2021. It would not surprise me to see a few delivery dates slip, but nowhere near the percentage of delays and cancellations of jack-up rigs, OSVs, container and dry bulk vessels due to today’s market conditions, which are nowhere as rosy as when the vessels were initially ordered. Many Owners today find themselves postponing, or even cancelling, selected deliveries in order to mitigate their financial exposure while restructuring. According to BIMCO, across the board, 2016 looks like it will set the record for the lowest newbuilding contracts in more than 20 years. CAT power once again leads in popularity for propulsion in newbuilding sea-going tugs with main engines in 198 tugs - as they have since July 2007 when Marcon first started tracking this data. This is followed by Niigata diesels in 67 boats, Yanmar in 38, Cummins in 35, 28 Mitsubishi, 22 MTU, 20 ABC, 14 MaK (i.e. CAT), 9 Chinese “Standard Type”, 8 each MAN/MAN-B&W and Wartsila, 4 EMD, 2 each Daewoo and GE Marine and 1 each with Daihatsu and Deutz. Engines were not listed for 99 tugs. Only 35 tugs below 1,000BHP are shown under construction. As discussed earlier, many lower horsepower tugs are under 299GRT. 26.8% of the tugs on order are in the 3,000-3,999HP range, followed by 17.6% in the 2,000-2,999HP range and 11.0% in the 1,000-1,999HP range. 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

1,000HP

1,999HP

2,999HP

3,999HP

4,999HP

5,999HP

6,999HP

7,999HP

8,999HP

9,999HP

10,000HP

35

61

98

149

55

29

2

1

0

2

5

Unk.

Total

119

556

As in August 2011, the greatest number of tugs worldwide under construction are in the 3,000 – 3,999HP range. The greatest shift in horsepower over the last five years is 56 fewer 1,000 – 1,999HP and 38 fewer under 1,000HP tugs on today’s orderbook.

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

6

Marcon International, Inc. Tug Boat Market Report – August 2016

As of the beginning of September, Fairplay reported 17 “sea-going” U.S. flag tugs on the books in U.S. shipyards. Colton Co. reports on recent deliveries from U.S. shipyards. As of August 17, 2016, Colton Co. reported 17 tugs delivered year-todate in 2016. This compares to 2015, which saw the delivery of 26 tugs over the year and to 2014, when Colton reported 13 tug deliveries.

O.N. 1267830 1265978 1265316 1265315 1257374 1258773 1254223 1263069 839992 1268013 1267675 1266268 1268860 1267257 840066 1258328 1264941

Name Zyana K H Douglas M Frederick E. Bouchard Morton S. Bouchard, Jr. Donna J. Bouchard Gulf Venture Denise Foss Dale R. Lindsey Ocean Catatug 2 Jack T. Moran Barbara Carol Ann Moran Jonathan C. Moran David B Neptune Iron Guppy Fort McHenry Hudson

O.N. 1257372 1258129 1261999 1254222 839086 1255672 1255668 1258229 1256369 839530 838896 1264623 1261986 1261647 1259958 1257668 1258193 1258627 1264552 1260103 839194 839193 1265305 1257138 1253729 1262419

Name Kim Bouchard Finli Ryanne Edward Julian Michele Foss Inlet Crusader Barry Silverton Jake Shearer Lela Franco Nancy Peterkin Ocean Catatug I Jessica Coy JRT Moran Leigh Ann Moran James D. Moran Kirby Moran Mariya Moran Payton Grace Moran Dylan Cooper Triton James E. Brown Tuugaalik Tuulik Sarah Fort Schuyler Kings Point Elizabeth Anne

2016 Deliveries of Tugs Sorted by Owner/Operator Builder Owner/Operator Type of Vessel Eastern SB Bay Houston Towing 5,150-hp Escort Tug Eastern SB Bay Houston Towing 5,150-hp Escort Tug VT Halter Marine Bouchard Transportation 6,000-hp ATB Tug VT Halter Marine Bouchard Transportation 6,000-hp ATB Tug VT Halter Marine Bouchard Transportation 10,000-hp ATB Tug Conrad Shipyard C-Stone LLC Tug Foss Shipyard Foss Maritime 7,268-hp Tug Vigor Seattle Harley Marine 3,000-hp ATB Tug C.N. Ocean Location TMO Ocean 50' Tug Washburn & Doughty Moran Towing 6,000-hp Tug Bay Shipbuilding Moran Towing 5,100-hp ATB Tug Washburn & Doughty Moran Towing 6,000-hp Tug Eastern SB Suderman & Young 5,150-hp Escort Tug Eastern SB Suderman & Young 5,150-hp Escort Tug Hike Metal Prods. Toronto Port Authority 66' Tug Chesapeake SB Vane Bros. Towing 3,000-hp Escort Tug St. Johns Shipbuilding Vane Brothers 4,200-hp Escort Tug

2015 Deliveries of Tugs Sorted by Owner/Operator Builder Owner/Operator Type of Vessel VT Halter Marine Bouchard Transportation 4,000-hp ATB Tug Leevac Shipyards Devall Towing Tug Leevac Shipyards ETC Marine Tug Foss Shipyard Foss Maritime 7,268-hp Tug Sylte Shipyard Gowlland Towing 65' Tug Conrad Shipyard Harley Marine 4,070-hp Tug Conrad Shipyard Harley Marine 4,070-hp Tug Diversified Marine Harley Marine 2,000-hp Tug Nichols Bros. Kirby Ocean Tptn. ATB Tug CN Ocean Location TMO Ocean 50' Tug CN Ocean Manitoba Hydro 45' Tug Washburn & Doughty Moran Towing 6,000-hp Tug Bay Shipbuilding Moran Towing 5,100-hp ATB Tug Washburn & Doughty Moran Towing 6,000-hp Tug Washburn & Doughty Moran Towing 6,000-hp Tug Patti Marine Moran Towing 6,000-hp ATB Tug Washburn & Doughty Moran Towing 5,000-hp Tug SENESCO Reinauer Transportation 4,720-hp ATB Tug Eastern Shipbuilding Suderman & Young 5,150-hp Escort Tug Rodriguez SB Thomas J. Brown & Sons 1,000-hp Tug CN Forillon Transport Umialaarik 32' Tug CN Forillon Transport Umialaarik 32' Tug Diversified Marine Unknown Tug Chesapeake Shipbuilding Vane Bros. Towing 3,000-hp Tug Chesapeake Shipbuilding Vane Bros. Towing 3,000-hp Tug St. Johns Shipbuilding Vane Brothers 4,200-hp Escort Tug

GT 199 319 713 713 1,457 420 714 454 40 351 297 283 319 319 87 271 103

GT 299 145 112 295 142 261 261 175 266 40 98 351 297 283 283 297 283 199 319 98 11 11 169 99 99 332

Date 28-Apr-16 03-Feb-16 06-Jun-16 28-Jan-16 13-Jan-16 11-Mar-16 02-Jun-16 07-Jul-16 09-Jun-16 21-Jun-16 16-May-16 27-Apr-16 15-Jun-16 03-Mar-16 23-Mar-16 28-Jun-16 07-Apr-16

Date 10-Jul-15 13-Oct-15 14-Oct-15 16-Apr-15 05-Jun-15 15-Oct-15 14-Jul-15 15-Jun-15 30-Oct-15 15-Dec-15 30-Mar-15 29-Dec-15 20-Oct-15 26-Aug-15 03-Aug-15 09-Jun-15 07-Apr-15 27-Jul-15 30-Nov-15 23-Apr-15 21-Jul-15 21-Jul-15 04-Nov-15 24-Sep-15 02-Mar-15 04-Dec-15

th

According to an 8 August 2016 SteelBenchMaker report, standard steel plate in the US, East of the Mississippi was $699/mt down 1% from the previous month, while standard plate in China was $330/mt, up 4%.

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

7

Marcon International, Inc. Tug Boat Market Report – August 2016

At the end of June, two Damen ASD Tugs 2810 set sail from Galati in Romania to Puerto General de San Martin (Argentina) for towing, mooring and firefighting operations in the Argentinian region around Rosario on the Paraná river by Damen Galati Shipyards (Romania), the vessels will be delivered on time, having met expectations of Cooperativa De Trabajos Portuarios Limitada de San Martín. This was a first-time order for the Argentinian company who also purchased a Cutter Suction Dredger 500 from Damen Dredging, which is also on its way by means of a cargo vessel. Alex Westendarp Knol, Damen Area Manager South-America, explains: “Our short delivery time together with the cooperation of Argentinian authorities, allowed us to meet the requirements for arranging this departure at short notice. This has been a great way to start a long-lasting relationship with Cooperativa. We hope to be able to provide the client with more vessels in the future, either built locally or at our shipyards.” The company’s current large rescue center will be able to expand its Maritime Division with the tugboats “Estibador I” and “Estibador II”. The ASD 2810 tugboats can perform emergency and firefighting activities should fire break out at a terminal or on a vessel. The tugs will also be used for vessel maneuvering operations. The 28.67m ASD Tugs have a beam of 10.43m and are equipped with state-of the-art Fire Fighting 1 capability. Fitted with Rolls Royce US 205 azimuth thrusters, these compact tugs have a maximum bollard pull of 60.2 tonnes and are easy to maneuver at speeds of 13 knots. The CSD 500 dredger, “La Portuaria”, will be used for dredging operations in the Argentinian terminal region. “La Portuaria” has a modular design which makes it easy to transport almost anywhere. Damen Services will continue to provide Cooperativa De Trabajos Portuarios with proper operation and maintenance of the vessels as well as crew familiarization and training…… Fratelli Neri S.p.A., the family-owned, Livorno-based harbor towage company (highlighted on page 9 in our May 2016 Tug Market Report), has ordered three new Damen vessels; an ASD Tug 2913, a Stan Tug 1606 and a Stan Launch 1305, the last for its subsidiary company Labromare, which is 50% owned by Tripmare S.p.A. All three vessels will operate in and around the port of Livorno, one of the busiest in the Mediterranean Sea. Delivery will take place in November this year. This order takes to six the number of Damen vessels ordered by Fratelli Neri in the past year. In January 2016 the company took delivery of an ASD Tug 3212, the first in the Mediterranean to be fitted with a render recovery winch. Several months earlier it also purchased two used Stan Tugs 2608 via Damen Trading. The three latest vessels are all being purchased from stock. As well as its positive experience with its existing Damen vessels, the ability to guarantee rapid delivery was a significant factor in Damen winning this latest order. The ASD 2913 is currently in build at Damen Shipyards Galati, Romania and will now undergo modifications to ensure full compliance with Italian flag requirements. This will include FiFi1, oil recovery capability and an aft bridge. Fratelli Neri selected the ASD 2913 based on its powerful yet compact design. 80 tonnes of bollard pull will give it all the power it will need for operations in the busy port of Livorno on Italy’s Tuscany coast and the excellent maneuverability will also be a valuable asset. The Stan Tug 1606 has been ordered for operations on coastal and inland waters around Livorno. This proven design is both robust and compact making it ideal for restricted waterways. Currently being held in stock at Damen Shipyards Gorinchem, the Netherlands, the vessel will be brought up to Italian flag standard with modifications including fire-fighting apparatus and an aft towing winch. The last vessel, a Stan Launch 1305 is also currently in stock at Gorinchem. This will be used by Labromare S.r.l. Livorno to deliver a range of environmental services in Italy and will be fitted with a bow thruster and an aft towing hook. Andrea Trevisan, Damen Sales Manager North, West and South Europe, commented: “We are honored to be serving Fratelli Neri again and so quickly. It is always a pleasure to work with another successful and prestigious Italian family business with values very similar to our own. Once again, Damen’s policy of building for stock has enabled a vessel operator to obtain customized, high quality vessels in substantially shorter time frames than is possible when building to order. These three vessels also represent a cross section of the various capabilities that that the group can provide its clients and we are confident that each will give many years of efficient service.” Piero Neri, owner of Fratelli Neri, stated: “We are delighted to have again chosen Damen for their ability and readiness to respond to our demand for tugs that can be deployed across a range of different operations. We have recently experienced excellent cooperation with Damen, from the earliest discussions right up to the delivery of the vessels, with the personnel on both sides working together as a team. This way of working is a reflection of our shared values and reliability that lead to technical solutions lasting long into the future.”

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

8

Marcon International, Inc. Tug Boat Market Report – August 2016

SAFEEN, the subsidiary of Abu Dhabi Ports formerly known as Abu Dhabi Marine Services, took delivery in June of a Damen Shoalbuster 2609 named “Maqtaa” to join its existing fleet. Like all the vessels in Damen’s Shoalbuster range she is a multipurpose, shallow draught workboat capable of undertaking a wide range of roles including towing, mooring, pushing, anchor handling, dredge support, supplying and other support activities. The 26.0m x 9.1m x 3.6m vessel is powered by a pair of CAT 3508TA/Cs with 1,800mm Promarin fixed pitch props in kort nozzles and develops a total of 2,200BHP at 1,600RPM, bollard pull of 28 tonnes ahead and speed of 11kn free running. “Maqtaa’s” maneuverability is assisted by a 200HP bow thruster. Towing gear consists of a 90 tonne brake Ridderinkhof AHW-H-400 anchor handling / towing winch, triple hydraulic tow pins, a 5T capstan and 8T tugger. Tug is classed BV I +Hull, +Mach Tug Unrestricted Navigation, AUT-UMS…… Damen congratulates Reylaver of Veracruz, Mexico on the safe arrival and naming ceremony of the new 5,632BHP ASD Tug 2411 “Jesus” (Hull 512283). In order to reach her owners, the 24.55m x 10.70m x 4.60m vessel undertook, on her own keel, a significant voyage covering 10.500 nautical miles. Reylaver ordered the new vessel from Damen Shipyards Group in April 2015. After a successful construction phase at Damen Shipyards Changde, she made a major journey starting in Shanghai, via Japan to Dutch Harbor in Alaska, through the Panama Canal, all under her own th keel, finally arriving Veracruz, Mexico on 9 June. Following her arrival, the 70 tonne bollard pull vessel th was named “Jesus” on 18 July. The well organized and festive ceremony took place in the afternoon in the presence of owners and personnel of Reylaver, the local authorities, guests, press and representatives of Damen. The vessel, a standard design from the Damen portfolio powered with 1,641bkW CAT 3516Bs, received a number of custom features in order to meet the needs of the client, including adaptations to her accommodation……. In an official handover ceremony at the Den Helder Naval Base, the Royal Netherlands Navy took formal delivery of three Damen ASD 2810 Hybrid tugs. In addition to providing an increase in ship handling capacity, the new vessels are also installed with hybrid propulsion systems. This will contribute to Dutch Ministry of Defense ambitions regarding sustainable operations of the Navy. The acquisition of the three Damen tugs is part of the Royal Netherlands Navy’s ongoing fleet renewal program. The hybrid vessels, named “Noordzee”, “Waddenzee” and “Zuiderzee”, can sail under diesel-direct, diesel-electric or fully-electric power. This will result in a significant increase in fuel efficiency and reduction of exhaust emissions. For example, when sailing in fully-electric mode – possible for up to one hour at a speed of 4 knots – the tugs will have zero emissions. This is highly relevant to the Ministry of Defense Operational Energy Strategy. Recently presented to the Dutch government, this concerns future emissions targets and dependence on diesel as a principle fuel. When sailing under diesel power, the Damen ASD 2810 Hybrid can store any electrical energy that is not immediately used in its battery pack. This can subsequently be used to sustain vessel operating systems or for use in electric sailing mode. In addition to hybrid capabilities, the new tugs are also more powerful than the vessels that they are replacing. The Damen ASD 2810 Hybrid packs a 60-tonne bollard pull: considerably more than the 22-tonne bollard pull of the ongoing Lingeclass tug. This increase in bollard pull will support safe and efficient ship handling operations of the largest vessels of the Royal Netherlands Navy fleet, such as HNLMS “Johan de Witt”, HNLMS “Rotterdam” and 204m Joint Support Ship HNLMS “Karel Doorman” in all weather conditions. Tugs are powered by two MTU 16V4000M63R main diesels developing a total of 4,935BHP and one MTU 12V2000M41B 800kVA 440vAC 60Hz propulsion generator providing power to two Rolls Royce US205 2,400mm props. Now that the tugs are in active service, Damen Shipyards Den Helder will perform an ongoing maintenance program for all three vessels, a task is normally undertaken by the Royal Netherlands Navy itself. 9

www.marcon.com

Details believed correct, not guaranteed. Offered subject to availability.

Marcon International, Inc. Tug Boat Market Report – August 2016

Rimorchiatori Augusta and Damen signed a contract for an ASD 2810 tug for operations in the Sicilian port of Augusta. Rimorchiatori Augusta is a new venture for the Rimorchiatori Riuniti group and this will be the first new vessel for the company, demonstrating its commitment to future operations in the port. Rimorchiatori Augusta was formed following the purchase by Rimorchiatori Riuniti of Augustea Imprese Marittime and Salvataggi S.p.A. together with its fleet of 16 vessels. The company provides towage services in Augusta, Siracusa Santa Panagia, Catania and Pozzallo. The ASD Tug 2810 is its first purchase since the deal was announced and it will operate in and around the port of Augusta. As well as managing regular cargo and passenger traffic, Augusta is one of the Mediterranean’s main oil hubs, serving a number of oil refineries. With 60 tonnes of bollard pull the ASD 2810 will bring a new level of capability. It will also be fitted with FiFi 1 fire-fighting equipment, upgraded towing hooks and have the necessary modifications required to meet Italian flag standards. One of the factors in winning the contract was Damen’s ability to guarantee a quick delivery. The vessel is already in build at Damen Song Cam Shipyard in Vietnam and will be handed over to Rimorchiatori Augusta in Italy at the end of this year. The Rimorchiatori Riuniti Group and Damen know each other well; recent orders from the Italian tug operator include a pair of ASD Tugs 2913 and before that an ASD Tug 2411. This latest acquisition will be the sixth Damen vessel to join the Rimorchiatori Riuniti th fleet……. Two Damen ASD 3212 tugs for towage and salvage specialist Multraship have been named on 24 June at Terneuzen, the Netherlands. The state-of-the-art “Multratug 29” (Hull 512528) and “Multratug 30” (Hull 512529) were built at the Damen Song Cam Shipyard in Vietnam and operate for Multraship as sister vessels to “Multratug 19”. The 32.7m x 12.1m x 5.35m depth / 4.10m draft tugs, which have a max bollard pull of 82.6 tonnes, are notable for their excellent sea-keeping behavior, superb maneuverability and outstanding towing characteristics. Leendert Muller, managing director of Multraship, says, “These tugs are already operating for Multraship and proving their worth on a daily basis. They are superbly equipped to meet the growing demand for Multraship’s services in both the harbor towage and offshore energy sectors, as well as being equipped to operate as emergency response vessels.” Tugs are powered by a pair of CAT 3516C-HD TA/Ds developing a total of 5,050kW (6,772BHP) at 1,800RPM and fitted with 2,800mm Rolls Royce US 255 controllable pitch azimuthing thrusters. Towing gear consists of a hydraulically driven, 200T brake, DMS T320 double drum towing / anchor escort winch forward and a 200T brake, DMS T320 HHT-EST tow winch aft with a 100 tonne tow hook and 5T capstan. Tankage is provided for 131.2m3 fuel. Both tugs are classed Bureau Veritas I +Hull, +Mach, Escort Tug, FiFi-1 (2,800m3/h), Unrestricted Navigation, AUT-UMS, IWS - In Water Survey……. Reederei Bugsier, the German towage and maritime service provider, has boosted its already extensive fleet with the addition of a Damen ASD 2411 tug. The tug represents the first purchase of a Damen vessel for Bugsier. Bugsier holds an established position in the German maritime sector: the company is celebrating its 150-year anniversary this year. This operational knowledge brought mutual benefits to the vessel construction process. “Damen is experienced in building tugs and we are very experienced in operating them,” comments Bugsier Business Development Manager Sven Schrӧder. “Therefore, we know what we want and we have ideas on how to improve things.” The “Bugsier 22” (Hull 512297) was built at Damen Shipyards Sharjah (DSSh) in the United Arab Emirates. DSSh is one of the newest additions to Damen’s worldwide network of shipyards. The power-to-length ratio of the Damen ASD 2411 is worth a special mention: this 24.5m x 11.3m x 4.6m depth / 5.35m draft vessel powered by a pair of 2,100bkW CAT 3516Cs provides a bollard pull of 70 tonnes. Practical advantages of compact power can be seen when the tug is at work in a busy harbor situation such as the Port of Hamburg.

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

10

Marcon International, Inc. Tug Boat Market Report – August 2016

The second of two Damen Shoalbuster 3009 multi-purpose workboats for SMIT Amandla Marine has been named in a ceremony at Damen Shipyards Cape Town, South Africa. With De Beers Group Services the end client, the Lady Sponsor for the occasion was Mrs. Adri Nelson, Supply Chain Centre Manager for De Beers Group Services in Port Nolloth. Mrs. Nelson has been integral to the newbuild program in her role of managing the Northern Cape based supply chain center for De Beers. Named “Aogatoa” (Hull 571719), the vessel is the second of two CAT C32 powered Shoalbuster 3009s ordered by Smit Amandla Marine for the De Beers contract and built at Damen Shipyards Cape Town (DSCT). The first, “Aukwatowa” (Hull 571718), was delivered in December 2015. Throughout both builds, DSCT had the full cooperation of Damen Shipyards Hardinxveld. The Dutch yard transferred the necessary technology and provided full support to ensure a top quality end result. The Shoalbuster range of multi-purpose, shallow draught workboats is designed for all types of operations in inland and coastal waters. The 30m 3009S has a bollard pull of 24.5 tonnes and fitted with a crane with a lifting capacity of up to 1.7 tonnes, making it suitable for towage, buoy-laying, pushing and all-round support duties. These new vessels will carry out supply and support work for the De Beers Group’s offshore diamond mining activities out of Port Nolloth in the Northern Cape. With the shallow waters of the port making it accessible only to vessels with draughts of 2.8m or less, the minimal draught of the Shoalbuster was an important factor in selecting the class. During their time at the yard the construction of the two vessels made a significant contribution to the local economy with 180 employees employed locally working on the projects and with many materials also sourced locally. In addition, 13 apprentices, both male and female, also played an important part in the build, between them accumulating over 30,000 hours of on the job training. This was delivered by DSCT’s acclaimed merSETA-accredited training school. In expressing appreciation to De Beers Group and Smit Amandla, Sam Montsi, Chairman of DSCT, said: “I am confident that the delivery of this, the second of the two shoalbusters, will conclusively demonstrate to the regional shipping industry that, given the opportunity, DSCT can build and deliver quality vessels at a fair price.”…….Van der Velden Marine Systems (VDVMS), part of Damen Shipyards Group, in conjunction with its US representative Ships Machinery International, Inc. (SMI) is pleased to announce the launching of a new state-of-the-art Jones Act ATB Tug with Barke ® high-lift flap rudders for coastal services. This new designed vessel brings increased maneuvering to the fleet of ATBs plying the US coastal waters. Tank tests prove that for this type of vessel this is the most effective rudder design. The new ATB will have enhanced maneuverability and excellent course-keeping stability. The efficiency provided by this high technology rudder solution will result in significant savings over the life of the vessel, hence reduced total cost of ownership. The “Sea Power” (Hull 259), built by BAE Systems Southeast Shipyards in Jacksonville, Florida, was handed over to its owner Seabulk Tankers of Fort Lauderdale, Florida in August. This modern 12,000BHP A/TB tug is designed by Guido Perla and Associates, Inc. of Seattle, Washington to the following characteristics: length 43.0m, breadth 14.0m and a draft of 6.75m. Power is via two 4,640bkW Wartsila main engines and three main generators of 250ekW each with a standby emergency generator of 150ekW. The vessel uses a pin connector system between the tug and the barge and fully complies with ABS Under 90m Rules, Maltese Cross A1 AMS ACCU Towing Vessel, SOLAS, USCG Subchapter I. “We are pleased that our client selected this state of the art rudder system for their new vessel” said Arthur Dewey Vice President of SMI. “We are confident that their faith in Van der Velden rudders will be rewarded.” Independent Proportional Steering will allow the rudders to be actuated either independently or synchronized. Van der Velden has done a lot of work to facilitate the installation of these rudders into a hull and works closely with the designer and shipyard to ensure a smooth transition from initial design to final installation. Guido Perla commented, “Van der Velden provided excellent technical support and on time delivery of design documents that helped us develop the engineering and design for the installation of their steering system. Their coordination with our staff was prompt and to the point. We appreciated their support.” The tug will work in tandem with a highspec 30,000dwt chemical tank barge as an AT/B unit in Sea Tankers’ Jones Act coastal operation transporting chemical and petroleum products between U.S. ports. Another set of Barke® high-lift rudders will be installed on another ATB before this summer.

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

11

Marcon International, Inc. Tug Boat Market Report – August 2016

The retractable flanking rudder system is an in-house innovation of Van der Velden Marine Systems (VDVMS). The system brings new efficiency to the inland shipping industry and will first be used in Paraguay. At request of Dutch shipbuilder Veka Shipbuilding of Werkendam, VDVMS developed the system and had it tested independently by the Development Centre for Ship Technology and Transport Systems (DST) in Duisburg. Flanking rudders are often used for inland river tow boats. They are located forward of the propellers in order to provide maneuverability during astern operations, giving the convoy control when backing or flanking. In practice flanking rudders are only required during a small percentage of the sailing time and when not in use produce drag and creating turbulence to inflow of water to the main propellers. Retractable flanking rudders increase water flow to the propellers, reduce vessel drag and increase efficiency, directly resulting in increased fuel savings. In close cooperation with the customer and end-client VDVMS designed, engineered and manufactured the retractable flanking units in less than 6 months. Imperial Shipping’s new pushers, the 43.5m x 17.56m x 3.0m depth, triple screw “Herkules XVII” and “Herkules XVIII”, will operate on the Parana river in Paraguay with a maximum of twelve approx. 62 x 17m barges, providing a total loading capacity of 35,000 tons. (Contact Marcon for further details). Including the towboat, the entire convoy will measure 290 x 50 meters. Vessels are powered by three 1,350bkW CAT 3512Cs developing a total of 5,500HP Mcr at 1,600RPM. In addition to delivery of two retractable flanking units (each with two high lift rudders and asymmetric steering gears) VDVMS also supplied the main rudder system consisting of three HD240S high lift fishtail rudders with stainless steel reinforced leading edges. The vessels have five independently operating hydraulic power packs, three units which operate the three main rudders (3 x 1DW65/60) and two to retract and operate the flanking rudders (2 x 2DWK 4060/35). All main rudders are operated independently and controlled by the VDVMS Triple SP2700 control panel, the flanking rudders are operated by two SP2700 NFU control panels. To operate the flanking rudder lift units, 2 HDMI touch screens (retractable flanking rudder operation and control system RET2700) have been installed. In addition, VDVMS supplied a proprietary follow up steering system to operate each rudder independently and one FU2700 th steering lever to operate all three main rudders synchronized…… On 10 August a keel-laying ceremony was held at Great Lakes Shipyard in Cleveland, Ohio for the first of 10 Damen Stan Tugs 1907 ICE. The tugs will be Ice Class and operated by the yard’s affiliate company, The Great Lakes Towing Company, replacing existing vintage tonnage. Damen’s Houston-based manager for North America, confirmed that under the license, Great Lakes Shipyard will receive full construction, design and engineering support from Damen. The ten 1907 tugs will be the first in the USA to be designed and built to comply with the US Coast Guard Subchapter M regulations under ABS classification. These came into effect in June this year and set new standards of seaworthiness for the towage industry and also establish new rules for safety management, including protocols and inspection requirements. Stan Tugs 1907 were chosen based on fact-finding visits made by the management of The Great Lakes Towing Company to Damen in the Netherlands. In addition to Ice Class, they will be treated with special, high endurance paint capable of withstanding the abrasion that comes with moving through ice. Stan Tugs 1907 can be found operating in locations around the world including Russia, Qatar and the Netherlands. The partnership with Damen provided Great Lakes Shipyard with a portfolio of proven vessel designs for customers in the United States. Most of the designs have been refined to meet the needs of US operators.

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

12

Marcon International, Inc. Tug Boat Market Report – August 2016

Damen Shipbuilding is establishing a permanent presence in Houston, Texas as their policy of expanding a local footprint around the world. The first order handled by the new entity was for four new Damen 3711 Stan Tugs by Young Brothers, Ltd., Hawaii’s largest inter-island cargo service provider (time goes by fast - it is hard to believe that it has been 43 years since I started out sailing as mate on the 130’, 1931 built twin screw tug “Mamo” out of Honolulu in 1973. She was a good tug with a superb skipper). Young Brothers is a Saltchuk company operated by Foss Maritime. The four new tugs will be built at Conrad Shipyard, Louisiana, under a license and materials agreement with Damen. First tug will be delivered first quarter 2018 and the last twelve months later. Together the nearly US$ 80 million investment in the 123’ (37m) x 36.5’, 6,000HP tugs will service Young Brothers’ fleet of tugs & high-capacity barges delivered 2007 – 2010 in providing regular cargo service to the island communities while enhancing service through lower maintenance, less down time, better tow speeds, greater operating efficiencies and lower environmental impacts. With their 80 tonne max bollard pull and top free running speed of 12.5kn, the tugs will constitute the core of Young Bros.’ towing capacity for their 35-year life expectancy. Young Brothers worked in conjunction with parent company, Foss Maritime and naval architects in Foss’ Technical Services Department to research various hull designs, engines and towing equipment options. It was through this collaboration Young Brothers was able to ensure latest advances in safety, environmental protection and crew habitability were incorporated. The Damen design tugs will be powered by General Electric, 8L250MDC, EPA Tier IV emissions with compliant exhaust gas recirculation. These new tugs will be known as the Kāpena Class of ocean towing vessels. “The Kāpena Class, or captain class, celebrates the incredible seamanship of Hawaiian navigators,” said Young Brothers President Glenn Hong. “Young Brothers will honor their skills and innovations by naming each of the four new tugs after their former captains.” Tugs will be ‘homeported’ in the neighbor island ports. The second of three state-of-the-art Arctic Class tugs, the “Denise Foss”, st was christened 1 June at the Foss Waterway Seaport in Tacoma, Wash by the Foss Rainier Shipyard, the “Denise” is designed to operate in the extreme conditions of the far north and will enter service this summer. Foss COO John Parrott applauded the hard work and dedication of the people, designers and customers that made this project possible. He also introduced Denise Tabbutt, the vessel’s namesake and one of three sisters who are primary shareholders of Saltchuk, the parent company of Foss Maritime. “Denise Foss” is ice class D0, meaning the hulls are designed specifically for polar waters and are reinforced to maneuver in ice. The first of the three Arctic tugs, “Michele Foss” has performed above and beyond expectations, leading the way in safely pioneering a new route across the North Slope, while operating in extreme conditions of first year ice a meter thick. The tugs are powered with Caterpillar C280-8 main engines, which comply with the highest federal environmental standards; a Nautican propulsion system; and Reintjes reduction gears. Markey Machinery supplied the tow winch. The tug has a bollard pull of 100 tonnes. Bogazici has launched the 80 tonne bollard pull ASD Multi-purpose tug boat “Bugsier 11” th (ex-Bogazici 23, Hull Dentas 06-026) on 5 August 2016 at Tuzla, Istanbul. The 32.0m x 12.5m x 5.6m depth / 4.15m draft tug was ordered by Reederei Bugsier last year. The Cintranaval Ship Design tug is powered by twin 2,501bkW ABC 12DZC diesels developing a total 6,800HP at 1,000RPM, Schottel SRP 4000 controllable pitch props and a 250kW Schottel bow thruster. Free running speed is abt. 13.0kn. “Bugsier 11” is scheduled for delivery mid-September 2016. The identical sister vessel, “Bugsier 12” (ex-Bogazici 24, Hull Dentas 06-027), is also under construction at the shipyard for delivery January 2017. Both tugs are classed ABS +A1 Towing Vessel, FiFi-1, +AMS, +ACCU, UWILD, Enviro. Accommodations are provided for a crew of 10 persons.

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

13

Marcon International, Inc. Tug Boat Market Report – August 2016

nd

On 22 July, Harley Marine Services’ newest ATB tug, “Dale R. Lindsey” was christened in Seattle. The “Dale R. Lindsey” (Hull 54143), a 95.0’ x 38.0’ x 16.9’ ATB tug, will be paired with the 28,450bbl double hull tank barge “Petro Mariner” using an Articouple FRM043 system. The 3,000HP tug is powered by twin 1,500HP Caterpillar 3512C Tier 3 diesel main propulsion engines at 1,600RPM. Reintjes WAF 675 7.091:1 reduction gears turn a pair of five-blade, 96” x 85” stainless steel propellers. A Markey TYS-32 towing winch operates on the aft deck. Accommodations include six staterooms for 11 crew. Fuel capacity is 65,000 gallons. The raised aluminum upper pilothouse has a 50’ height of eye. The tug was designed by Elliott Bay Design Group in Seattle and built locally by Vigor Fab. LLC on Harbor Island in Seattle, Washington. This is the first tug Vigor has built for Harley Marine. Both the “Dale R. Lindsey” and the 222.0’ x 64.6’ x 23.6’ ““Petro Mariner” will be servicing Petro Marine Services’ fuel supply business in Southeastern Alaska. The company is Alaska's largest independent petroleum marketing firm, with operations throughout South Central and Southeast Alaska, as well as Northwestern Canada. Work continues on Harley Marine’s new 120.0’ x 35.0’ x 19.25’ depth, 5,350HP, ASD line-haul boat, the “Earl W Redd” (Hull 34) which is being built by Kurt Redd at Diversified Marine, Inc. in Portland, Oregon and powered with the first Caterpillar Tier IV engines in a tug. To meet the more stringent Tier 4 Final emissions standards coming in 2016, each of the two continuous duty 3516E engines individually rated with a 10% horsepower increase of 2,682HP at 1,600RPM - is paired with a selective catalytic reduction (SCR) after treatment system. SCR uses a urea-based solution to reduce the oxides of nitrogen (NOx) contained in diesel exhaust down to nitrogen and water vapor. Just as important, it does so efficiently. Astilleros Armon SA of Vigo, Spain currently has three tugs on their orderbook, the 32.5m x 11.0m, 6,700HP “Armon Navia 763” being built for Ocean Srl, Italy / Adria Tow doo, Slovenia, the 40.0m x 8.1m, CAT 3508C powered, twin screw “Armon Navia 781” under construction for yet unnamed operators and the 24.4m x 11.25m x 4.38m, CAT 3516C powered “Ponga” (Hull Armon Navia 775) being built for Remolques Gijoneses SA of Gijon, Spain. Recently delivered to Remolques Unidos SL of Santander, Spain were the Bureau Veritas classed, 31.5m x 11.2m x 5.4m depth, ASD escort, FiFi-1 (2,700m3/h) tugs “Trheintayuno” (Hull 767) and “Trheinta” (Hull 766). Both tugs (photo left) are powered by twin 1,492bkW CAT 3516Cs with Schottel azimuthing drives and Schottel bow thruster providing abt. 90 tonnes of bollard pull. On April 26, 2016, Cheoy Lee Shipyards of Hong Kong launched at their Hin Lee (Zhuhai) Shipyard the 100th vessel it has built to a Robert Allan Ltd. design, becoming the second shipyard worldwide to do so, after Sanmar’s initial achievement of this milestone in 2013. This 32.0m x 12.8m x 5.37m depth epic tug, Hull Number 5098 at Cheoy Lee, is a RAstar 3200 class ASD tug, with completion expected in August 2016. Tug will be classed LR 100A1. At present Cheoy Lee’s Hin Lee yard in China is very busy with a flotilla of Robert Allan Ltd. tugs at various stages of completion. The cooperation between Robert Allan Ltd. and Cheoy Lee dates back to 2003, with the construction of the first of the Z-Tech® series tugs for PSA Marine.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

OAO Astrakhan Sudoverf of Russia has launched the 24.5m x 8.0m x 3.7m depth, twin screw tugs “Mars” (Hull 703) and “Saturn” (Hull 704) as the last of a five tug order being built for OMS Shipping LLP of Aqtau, Mangghystau oblysy, Kazakhstan. The tugs are powered by twin Daewoo V180TIH 4-stroke diesels developing a total of 1,200HP at 1,800RPM. These five tugs, all named after planets, join three, ice-strengthened, 2012 built, 1,958HP, 30.7m Nanjing East Star built tugs – the “Phoenix”, “Orion” and “Hercules”. In all, OMS Shipping reportedly is planned to purchase sixteen ancillary and special vessels to delivery stone for artificial islands being built in Kazakhstan’s sector of the Caspian Sea. Tugs are being classed under the Russian Maritime Register. Eastern Shipbuilding Group, Inc., of Panama City, Florida launched the escort tug “Laura B” (Hull 254) for Bay-Houston st Towing Co. on 1 July. The tug is scheduled to deliver later this year. “Laura B” is the last of a series of four Z-Tech Class Terminal & Escort Tugs designed by Robert Allan Ltd. being constructed for Bay-Houston Towing Co. The “H. Douglas M” (Hull 236), “Zyana K” (Hull 238) and “David B” (Hull 239) delivered earlier this year. Eastern is also constructing simultaneously an identical series, of the same design for Suderman & Young Towing Company. The escort tug “Oceanus” (Hull 240) was delivered to Suderman & Young Towing Company in July 2016 and the “Poseidon” (Hull th 255), the fourth in the series being built for Suderman & Young, was launched on 15 August and scheduled for delivery later this year. G&H Towing Company is the Owners’ onsite Representative and Agent during the engineering, construction and delivery for both Bay-Houston and Suderman & Young Towing companies. In addition to various types of offshore support / supply vessels and two factory stern trawlers, Eastern Shipbuilding also has the 158.3’ x 52.0’ x 32’.8 deep, 14,000HP ATB pusher tug “Douglas B. Mackie” (Hull 252) powered with twin MaK 12M32Cs and the 433’ x 92’ x 36’, 15,000yd3, ATB trailing suction hopper dredge barge “Ellis Island” (Hull 253) being built for Great Lakes Dredge & Dock Co. and designed by Ocean Tug & Barge Engineering, Inc. The state-of-the-art Great Lakes ATB hopper dredge will be a key tool in performing restoration of the eroded land mass in the Gulf Coast States. Additionally, the vessel’s ability to cost effectively deepen and maintain navigable waterways will bolster the United States’ competitive position in world trade, as the nation’s ports move forward with deepening plans to accommodate larger vessels, sailing through the expanded Panama Canal. Chesapeake Shipbuilding Corp. of Salisbury, Maryland successfully delivered another ocean going tugboat to Vane Brothers of Baltimore, Maryland. The boat, named “Fort McHenry” (Hull 122), marks the 12th “Sassafras” class tugboat that Chesapeake Shipbuilding has built for Vane. Chesapeake Shipbuilding has 5 additional tugboats under construction for the company. The “Fort McHenry” is equipped with twin Caterpillar 3512 Tier 3 main engines producing a combined 3,000BHP and a single drum Series “500” hydraulic winch from JonRie of New Jersey. The tug measures 94’ long with a 32’ beam and a 13’ depth. Her

name pays homage to the Baltimore-based fort that was instrumental in America's defense against the British during the War of 1812 and inspired the writing of "The Star-Spangled Banner." Chesapeake Shipbuilding and Vane Brothers also signed contracts for three additional ocean-going tugs, th th th which will be the 18 , 19 and 20 similar design tugs built for Vane in the last eight years. All Chesapeake Shipbuilding tugs are built in a controlled indoor environment prior to being moved and launched into Maryland’s Wicomico River. Chesapeake Shipbuilding has recently made significant upgrades to its facility to increase its production capacity and efficiency. Vane Brothers operates more than 50 tug boats, two articulated tug and barge units (AT/Bs) and two freight boats in North America. 15

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Details believed correct, not guaranteed. Offered subject to availability.

Marcon International, Inc. Tug Boat Market Report – August 2016

As of late June, Vane Brothers were not only looking forward to the delivery of the “Fort McHenry” above, but the 4,200HP, 100’ x 34’ x 15’ depth “Baltimore” (Hull 60), tug number three in the “Elizabeth Anne” (Hull 58 built in 2015 & delivered January 2016) class coming out of St. Johns Ship Building of Palatka, Florida, with several more vessels ready to launch. The 4,200HP “Hudson” (Hull 59 built 2016 photo left) had joined Vane’s Philadelphia-based fleet in early May after picking up the 55,000bbl tank barge “Double Skin 601” completed at the Conrad Deepwater South Shipyard in Amelia, Louisiana. The “Double Skin 602” was launched in early June and soon headed to Crescent Consolidated Services in Gibson, Louisiana for tank lining installation. Delivery of the completed barge is expected in October. Meanwhile, the tug “Oyster Creek” picked up the “Double Skin 317”, the last of seven 35,000bbl bunker barges built by Conrad’s Orange, Texas operation. Currently under construction at Conrad Deepwater South is the 55,000bbl asphalt barge “Double Skin 510A”, a modified version of last year’s “Double Skin 509A”, but with enlarged machinery & accommodations houses, an Ian-Conrad Bergan cargo monitoring system and the ability to handle asphalt cargoes loaded at even higher temperatures up to 360 deg. F. Each of the ten pipe coil heat exchangers in the cargo tanks are comprised of nearly one mile of 2.5” diameter pipe. Conrad Deepwater South is also beginning to fabricate panels for the “Double Skin 801”, the first of three 80,000bbl barges to be matched with tugs as AT/B units. “DS-801” is slated for delivery in Fall 2017, about a month after the 110’ x 38’ AT/B tug “Assateague” is delivered by Conrad Orange. Each of the new tugs being built are ready for Subchapter “M”. VT Halter Marine, Inc. delivered the 6,000HP twin screw ATB tug “Frederick E. Bouchard” at their Pascagoula, Mississippi th facility on 9 June. The delivery culminates the two-vessel contract awarded by Bouchard Transportation Co. of New York to VT Halter in August 2014. The first vessel of the st contract, “Morton S. Bouchard Jr.”, was delivered 1 February and is currently in service. “Frederick E. Bouchard”, named after another Bouchard family member, the brother of Morton S. Bouchard, Jr., will be joining Bouchard Transportation’s coastwise fleet. These two vessels are equipped with Intercon coupler systems, measure 130’ x 38’ x 22’ depth and are classed ABS +A1, Towing Vessel, +AMS, Dual Mode ATB, Unrestricted Service. Tugs are powered by twin EMD 12710G7C diesels with Lufkin gears driving fixed pitch propellers and develop a bollard pull of 60.91 short tons. Fincantieri Marine Group’s Fincantieri Bay Shipbuilding delivered the 5,300HP ATB tug “Barbara Carol Ann Moran” (Hull 776) and the 468’ x 78’ x 34’, 122,000bbl, double hull, chemical barge “Louisiana” (Hull 775) to Moran Towing Corporation. The 5,300HP, 123.0’ x 36.1’ x 18.0’ vessel is classed ABS +A-1 Towing Vessel, +AMS, CPS, RRDA, UWILD (Underwater Inspection In Lieu of Drydocking), Unrestricted Service and equipped with state-of-the-art navigation and communications technology. Tug is powered by twin EMD 12-710G7C diesels, Lufkin gears and fixed pitch props. ABS certified bollard pull is 53.7 tonnes ahead. The ATB unit was delivered on the exact day called for by the contract and will work the East Coast of the United States and the Gulf of Mexico. This is the third delivery to Moran under a 2014 contract, with a tank barge delivered in May of 2015 and another Intercon coupler fitted ATB - the tug “Leigh Ann Moran” (Hull 778) and the 495’ x 78’ x 41’ depth, 160,0815bbl double hull, st coiled petroleum barge “Mississippi” (Hull 777) delivered 1 December 2015.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

Kirby Offshore Marine’s 121’ x 38.0’ x 22.0’, 6,000HP, EMD-powered “Heath Wood” (Fincantieri Bay 780), the ATB tug portion has been launched by Bay Shipbuilding Co. of Sturgeon Bay, Wisconsin (Photo Credit: Freighter Freak). This first of two 155,000bbl tug /tank barge units is scheduled for delivery during Fall 2016. Both units are being built to haul petroleum and chemical products domestically. During second quarter 2016, Kirby has seen demand for coastal transportation of black oil and petrochemicals as stable, although an increase in the amount of equipment trading in the spot market led to increased idle time and voyage costs. Demand for transportation of refined products declined, primarily as a result of weak distillate and gasoline demand in the Northeast, mainly the result of high product inventory levels. Utilization for the coastal tank barge fleet was in the mid-80% range. Also during the quarter, Kirby took delivery of the second newbuild 185,000bbl coastal articulated tank barge and tug unit which entered service under a long-term customer contract in midJune. Kirby expects 2016 capital spending to be unchanged in the $230 to $250 million range. Capital spending guidance includes approx. $10 million for construction of seven inland tank barges and one inland towboat to be delivered in 2016. The capital spending guidance range also includes approx. $100 million in progress payments on new coastal equipment, including one 185,000bbl coastal ATB, two 155,000bbl coastal ATBs, two 120’ x 35’ x 19.25’, 4,900HP coastal linehaul tugs being built at Nichols Brothers Boat Builders on Whidbey Island, Washington; and a new coastal petrochemical tank barge. The balance of $120 to $140 million is primarily for capital upgrades and improvements to existing inland and coastal marine equipment and facilities, as well as diesel engine services facilities. th

On the afternoon of 12 June, Jiangsu Zhenjiang Shipyard (Group) Co. Ltd. successfully delivered the 5,000HP ASD tugboat "Zhan Gang Tuo 505" to Zhanjiang Port (Group) Co. Ltd., a natural deep water port located at the southernmost tip of mainland China's Guangdong Province. The port is the premier foreign trade port for the Midwest and south regions and the main distribution center for energy resources and raw materials in South China. The th port boasts the deepest 300,000dwt channel in the country……. On 6 July, the 3300AV design tug “Daryabandar 3” (Hull 2-1401-AV005) was successfully delivered from Zhenjiang Shipyard to Blue Ocean Ship Mgmt. & Eng. Ltd. of Singapore. Designed by Robert Allan Ltd, the tugboat is 33.75m in length, 12.80m extreme beam, 5.40m in depth and 4.23m draft. Powered by twin 2,000kW CAT 3516C-HDs, the tug develops an ABS certified bollard pull of 70.4 tonnes ahead, 64.4 tonnes astern and free running speed of abt. 13kn. Vessel is classed ABS +A1, Towing Vessel, Escort Vessel, Fire Fighting Vessel Class 1, (E), +AMS, Unrestricted th Service. Sister-tug “Daryabandar 4” (Hull 2-1402-AV006) was delivered on 19 July. Offshore Ship Designers (OSD) of Ijmuiden, The Netherlands designed a powerful, low-emission compact e-tug to further augment its Azistern series of vessels. Among other roles, vessel is perfectly equipped to deliver harbor assistance. OSD managing director Michiel Wijsmuller says, “The Azistern-e has the typical low resistance stable hull and all-round visibility that is associated with all Azistern designs. What makes this particular Azistern tug different is that it is driven by a revolutionary podded drive and that it has a flexible and green electro/diesel-electric configuration.” The hybrid power of the 22m, 50 tons bollard pull Azistern-e is generated by two 970kW variable speed gensets and is supported by two 400kWh lithium battery packs. The low-emission tug can be delivered compliant with IMO Tier 3 requirements with an after-treatment system suitable for ECA areas and is also equipped with an innovative energy management system. The uniform and optimized loading of the propulsion system ensures low maintenance and fuel costs. Transient sailing and maneuvering can be performed using the batteries with zero emissions. The Azistern-e is highly maneuverable and the power train has a remarkably short reaction time. By using batteries as a booster, max bollard pull can be achieved within seconds. The relatively small size of the engines and shaftless configuration frees up more space below deck, providing flexibility in respect of division of space and piping. As a result of its podded drive and double elastic mounting of its gensets, the MLC- compliant vessel will also provide a high comfort level for its four-man crew.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

Keppel Singmarine, a wholly owned subsidiary of Keppel Offshore & Marine, is on track to deliver its fifth anchor handling tug to Seaways International (Seaways) on time and with a perfect safety record. The DP-2 dynamically positioning vessel was named “Seaways 24” (Hull 390) at a recent ceremony held at Keppel Singmarine. The 55.0m x 15.0m x 7.33m depth / 5.80m draft, 9,500HP “Seaways 24” is a RAmpage 5500 ZM design, multi-task, azimuthing stern drive anchor handling tug that is designed to carry out an array of offshore activities. The vessel is equipped with twin bow thrusters, Class 1 and 2 fire-fighting capabilities, Class 1 oil recovery capabilities and a host of other equipment and comes with a designed bollard pull of 120 tonnes. Mr. Abu Bakar, Managing Director of Keppel Singmarine, said, “We are pleased to deliver our fifth anchor handling tug to our long-standing client Seaways. Given our years of extensive experience in constructing and designing a wide variety of ships, we are confident that ‘Seaways 24’ will prove to be another valuable addition to their global fleet.” Captain Ashish Nijhawan, Director of Seaways, added, “We have built a strong partnership with Keppel over the years and they have demonstrated their capabilities in executing and delivering quality products. As we continue to grow our presence in the global offshore marine industry, we look forward to working even more closely with Keppel to meet the needs of the oil and gas industry.” Vessel is classed ABS, +A1, Offshore Support Vessel - AH, TOW, SUPPLY-HNLS, FFV1 + FFV 2, OSR-S1, DPS-2, AMS, ACCU, UWILD, ENVIRO+, GP,SSR-GR B(300). “Seaways 24” is a close sister to the “Seaways 20” (Hull 349) delivered by Keppel Singmarine in 2011 and powered by twin 2,970bkW MaK 9M25Cs developing a total 8,000HP at 750RPM. RAmpage Class of Offshore Support Tug designs were developed by Robert Allan Ltd. to address a perceived gap in the market for high-performance towing and anchor-handling tugs for critical offshore terminal and oil-field support duties. Filling a gap between a full Offshore Supply Vessel and a Harbour/coastal tug, in the size range from 45 to 65 meters, RAmpage Class tugs are designed to be hard-working and reliable, able to maintain station in extreme ocean conditions, with enhanced maneuvering and sea-keeping capabilities. With compact dimensions and high power, they are capable of performing the types of duties expected of vessels at both extremes of the spectrum used in this service, namely everything from ship-handling to ocean towing and bulk cargo supply, but with an emphasis on anchor-handling and terminal support/towing and cargo transfer duties. The RAmpage Class tugs are classified initially according to their length, then by the type of propeller system; e.g. “Z” (for Z-drive) - for those situations where maneuvering and positioning control is of paramount importance as in DP operations, or “T” (for Twin-screw) - typically with nozzles and with lateral thrusters, offered for more conventional applications, especially where maximum Bollard Pull (BP) is required and long-distance towing is more likely. And finally by the type of powering system, either; “– M” for Diesel-Mechanical, or “–E” for Diesel-Electric propulsion. Hence a typical vessel designation would be RAmpage 5000 Z-M for a diesel mechanical Z-drive version. In June, Industria Naval do Ceara S.A. (INACE) of Fortaleza, Brasil delivered the second, Robert Allan Ltd. Rapide 2800-Z2 design, inland river push boat “Cargill Tucunare” (Hull 658) to Cargill Transportation. Earlier in the month “Cargill Cachara” (Hull 657) was delivered. The two vessels will be working for Cargill Agicola SA transporting grain products on the Amazon River system. Twenty hopper barges are also being built by Estaleiro Rio Maguari in Belem, Brazil. These vessels represent the first of several new generation Z-drive pushboats designed by Robert Allan for operation in this area. The 28.0m x 10.5m beam x 3.2m depth pushboats have a minimum / normal operating draft of 2.2m / 2.5m respectively. The boats were designed to ABS and Brazilian NORMAM-02 requirements and outfitted to highest standards. The wheelhouse is designed for maximum all-round visibility with a split forward control station providing maximum visibility to the foredeck working area as well as to the convoy of barges ahead. Accommodation for up to 13 people is provided onboard and a large galley and mess is on the main deck. The deckhouse extends aft over the main propulsion components, which comprise a pair of Caterpillar 3512B diesel engines, driving Schottel SRP 550 Z-drive units. The drives are fitted in tunnels designed to optimize flow while reducing draft. Two identical Caterpillar diesel gensets are provided in the vessel’s auxiliary machinery space located below the main deck. The corresponding box and rake barges were designed by Robert Allan Ltd. to ABS River Rule requirements. Additional extensive FEA analysis of the structure was performed in order to optimize the design for minimum steel weight while ensuring long service life during river operations. Sliding aluminum hatch covers have been supplied to ensure the cargo stays dry at all times.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

th

Scheduled to be launched later this year, a RAstar 2800 will mark the 150 tug that Sanmar Denizcilik A.S. of Istanbul, Turkey has built to a Robert Allan Ltd. design. This milestone tug is the first of 6 custom designed for Svitzer’s new “Silver Bullet” project. Members of Svitzer’s management team carried out inspection visits to both of Sanmar’s modern custom-built shipyards to check on the progress of existing orders and discuss further contracts that the global market leader in towage and emergency response already has with the Turkish shipbuilder. The Svitzer team signed a new order for two 24m long, 70 tonne bollard pull, Robert Allan Ltd, Ramparts 2400 SX design Bogacay Class ASD tugs. Both vessels are in-build at the Altinova facility to be delivered in October. A pair of 80 tonne bollard pull, 28m Sanmar Terminal ASDs (RAstar 2800E design) are also under construction for Svitzer at the same shipyard. These larger more powerful vessels are destined for the Ichthys LNG project, located about 220 kilometers offshore Western Australia. Ichthys represents the largest discovery of hydrocarbon liquids in Australia in 40 years. Svitzer’s faith in the builder has already been confirmed by awarding the six tug “Silver Bullet” project, all of which will be constructed at Sanmar’s Tuzla-based shipyard. These vessels are also of the Terminal class but with 70 tonne bollard pull……Ending up the month, the naming ceremony of “Svitzer Amstel” (exBogacay XII, Hull 59) built in 2015 by Sanmar Shipyards of Istanbul (Tuzla), th Turkey, was hosted by Port Towage Amsterdam on 30 August. “Svitzer Amstel” is one of three tugboats that Sanmar have delivered in 2015 to Svitzer America, Svitzer Europe and Svitzer U.K. Further 10 more tugboats are under construction to be delivered to Svitzer in 2016 and 2017. Designed by Canadian naval architects, Robert Allan Ltd., the relatively new exclusive Bogacay model is based on Ramparts 2400SX series exclusively developed for Sanmar Shipyards. The vessel measures 24.4m x 11.25m x 4.38m depth with a 60 tonne bollard pull derived from a pair of 3512C Caterpillar engines, each developing 1,765kW at 1,800RPM, connected to Rolls Royce azimuth thrusters of US 205 FP type. “Svitzer Amstel” is operated by Svitzer EuroMed BV of IJmuiden in Amsterdam port where a versatile compact tug is needed to cater for varying water depths and different areas of the port inside and outside the locks. With 60 tons bollard pull, “Svitzer Amstel” can meet port requirements and assist a diverse range of vessels to meet customers’ and pilots’ needs. With launch of “Telstar” (Hull HS2015-027) end of July, Holland Shipyards of Hardinxveld is heading towards completion of its second EDDY Tug. The hybrid harbor tug was built for Iskes & Zoon BV / Iskes Towage & Salvage, a towage company with a long-standing history in the Port of Ijmuiden, where tug will enter operations. Design of the 25.45m x 12.20m x 6.77m depth tug has been in close concert with Iskes and led to a design geared towards the specific operating conditions that exist in the Ijmuiden / Amsterdam port area. Having worked with the EDDY concept in the past, was sufficient reason for Iskes to commit to the newly designed and built EDDY 24-75 type tug where confined spaces are common 0 and 360 operational performance required. Working from a mentality where Safety Performance and Economy are of utmost importance, the designs have been developed in such a way that compromises are avoided. With the in-line propulsion Voith Schneider setup, which in turn is hybrid driven, the tugs are easy to manoeuver, perform in every direction and are easy on fuel consumption. Tug is powered by twin 1,885kW Mitsubishi S16R2-MPTK main engines developing a total of 5,126HP Mcr at 1,500RPM. Together with Iskes’ technical department and upper management, close attention has been paid to a host of towage-related issues that have been solved in the 24 meter long, 75 tons bollard pull tug named after a local soccer club in Ijmuiden.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

Iskes is also proud to introduce their new Damen ASD 2810 design escort, port & terminal tug “Arashi” (Hull 512366), named after an Aruban beach. This new tug was specially built for Aruba and equipped for the tropics. For example, “Arashi” can sail in higher-temperature waters, has an additional refrigeration and drinking water can be made onboard. Recently, the tug embarked on its maiden voyage to French Guiana. After that, it will head to Aruba, its new home. The 28.67m x 10.43m x 4.60m hull was built by Santierul Naval Damen Galati S.A. in Romania and was finished out by B.V. Scheepswerf Damen in Gorinchem, The Netherlands. Tug is powered by a pair of 1,839kW CAT 3516Cs with Rolls Royce US 205 azimuthing drives, developing a total of 5,000HP at 1,600RPM and a bollard pull of 62.2 tonnes. Towing gear consists of a Damen DMT hydraulically driven 150 tonne brake, double drum anchor handling / towing winches fore and aft, a 5T capstan and a 650kN SWL Mampaey tow hook. Tug is classed BV I +Hull, +Mach, Tug, Unrestricted Navigation, Inwater Survey, +Mach. In May 2016, the first of two McDuff Ship Design (Scotland) 19m ASD harbor tugs built by RMK Marine in Tuzla, Turkey has been delivered to her owner. The second and final 19m ABS +A1 classed tug in the contract is reportedly nearing completion. The 19m shallow draft tugs are part of a larger order which included five 10.1m mooring tugs and two services vessels. Russian Navy's Caspian Flotilla commissioned the rescue tug "SB-738" th (Hull 007) into service on 4 July 2016. “SB-738” is the second tug of this class to enter service with the Caspian Flotilla. “SB-45” (Hull 005), the lead ship of the 3 + 1 unit order, entered service mid-2014, while the “SB-565” (Hull 006) was renamed “Professor Nikolay Muru” and joined the Black Sea fleet the end of that year. The 57m x 14m x 3.2m draft tugs were built at Astrakhan subsidiary yard of Ship Repair Center "Zvezdochka". The 1,670 tonne full load displacement, diesel electric rescue vessels are powered by three 1,520kW diesel generators driving twin 2,720HP electric motors with two azimuthing drives - giving them a speed of abt. 14kn and endurance of abt. 20 days. Their maneuverability is enhanced by two bow thrusters. Auxiliary power is provided by 2 – 200kW and 2 – 100kW generators and can be utilized to supply electricity to stricken vessels. The multi-purpose tugs are also fitted with three 500m3/h monitors and equipped for oil spill response and recovery. The crew of “SB-738” are now reportedly conducting search and rescue drills at sea. “SB-739” (Hull 2008) is reportedly still under construction and scheduled to be launched this month. Delivery of new advanced search-and-rescue vessels is important for the Russian Navy as in the past it lacked reliable means to rescue submarines and ships in distress. During the “Kursk” (K-141) nuclear powered cruise missile submarine tragedy in August 2000, Russia had to rely on assistance of Norwegian divers to reach the vessel buried on the ocean floor in the Barents Sea at a depth of 108m. A consortium formed by the Mammoet and Smit International was awarded a contract by Russia to raise the vessel, excluding the bow. They modified the 140.0m x 36.0m x 8.50m depth, semi-submersible barge “Giant 4” which raised “Kursk” and recovered the remains of the sailors. During salvage in 2001, the team first cut the bow off the hull using a tungsten carbide-studded cable. As this tool had the potential to cause sparks which could ignite remaining pockets of volatile gases, such as hydrogen, the operation was carefully executed. Most of the bow was abandoned. The balance of the vessel was towed to Severomorsk and placed in a floating dry dock for forensic analysis. The remains of “Kursk's” reactor compartment was towed to Sayda Bay on Russia's northern Kola Peninsula – where more than 50 reactor compartments were afloat at pier points – after a shipyard had defueled the boat in early 2003. The rest of the boat was then dismantled for scrap. Some torpedo and torpedo tube fragments from the bow were recovered and the balance was destroyed by explosives in 2002.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

Harvey Gulf International Marine of New Orleans, Louisiana has gained approvals for an LNG-fuelled articulated tug barge (ATB) that was designed with Waller Marine of Houston, Texas and Wärtsilä. ABS and the US Coast Guard approved designs for a 3 40m, 5,100BHP tug that would be articulated with a 3,996m barge. The ATB is designed both for ship-to-ship and shore side resupply transfers of LNG and would have a transit speed of more than 10 knots. It meets all the domestic and international requirement for a gas carrier. This includes the existing regulatory requirements defined in the International Code for the Design and Construction of Ships Carrying Liquefied Gases in Bulk, 2016 edition (IGC Code). It also meets ABS’ steel barge rules, chapter 2, section 5 that covers liquefied gas tank barges, as well as the ABS steel vessel rules. Wärtsilä designed the cargo 3 systems, which include four 999m type C cargo tanks. It would be responsible for supplying systems with a discharge 3 rate of 600 m /hr when the ATBs are ordered. The ATB design has a robust fire and safety system for both components of the ATB, which means the tug and barge can operate independently or as one unit. Harvey Gulf is playing an increasing role in developing the US marine and offshore vessel LNG market and use of LNG as marine fuel. It operates the first marine LNG refueling terminal in the US in Port Fourchon in Louisiana. Waller Marine’s design first was granted approval in principle for a LNG and regasification articulated tug barge concept in October 2012. BIMCO reports that shipyards are becoming the next victim of deteriorating conditions in the dry bulk, container and offshore markets as 2016 looks to set the record for the lowest newbuilding contracts in more than 20 years. After a decline from 2010 to 2012, shipbuilding had a rebound in 2013 and was expected to level out over the next few years. The reality was a slight decline in 2014 and 2015, but still high levels of contracting measured by compensated gross tonnage (CGT). Since then, shipyards have crashed, as the contracted CGT globally has reached its lowest level since on record. Peter Sand Chief Shipping Analyst at BIMCO comments: “Since the high contracting in 2013, BIMCO expected the shipyards could come under pressure. This expectation became a reality at the start of 2016, with Q1 contracting the second lowest CGT in 20 years. A low level of contracting is exactly what the shipping industry needs in order to eventually restore the fundamental balance between supply and demand”. Shipyards in Europe were the only ones to see an increase in contracting in the first eight months of 2016 compared to 2015. Europe contracted 2.52 million CGT, an increase of 45.3% compared to the previous year. Japan and South Korea have had the biggest decline, down by 86.7% and 86.5% respectively, compared to the same months the year before. China contracted 49% less CGT in that period. Globally, tanker and container segments are the main reasons for diminishing new orders by percentage as well as in CGT in 2016. Combined, they were responsible for 67.7% of the total contracted CGT in the first 8 months of 2015. This year, tanker contracts are down by 80.1% and container contracts are down 84.1% compared to the same eight months last year. The effect of declining contracts and continuing shipyard overcapacity has put pressure on shipyards order cover. The order cover is the number of years it will take to deliver the scheduled order book, based on capacity of the shipyards. Therefore, a low order cover can be a result of high capacity at the shipyards, as well as a decreasing order book. Shipbuilding in South Korea is suffering the most, as they hold orders for less than two years of building. Europe continues the positive trend seen in contracted CGT, with increasing order cover. This shows that additional contracting orders are not being absorbed by new shipyards entering the market. Peter Sand comments: “There is a declining trend for Japan, China and South Korea and with such low levels of newbuilding contracts being placed, this will look even more severe next year. However, the order cover could have been even lower, if capacity had been taken out due to shipyards cutting down on operations or closing entirely”. South Korea saw the order cover start to decrease from 2014 to 2015, whereas China and Japan saw the decline one and two years later respectively. This might be an indication of South Korean capacity being held artificially alive by government support. Government support is seen in many places in shipping. It’s positive to note that Europe’s order cover is still increasing and is currently 5.3 years. Europe is however only responsible for 9.3% of the global order book. The order book for Europe consists mainly of ferries, tugs and cruise ships. As 67.9% of the Chinese order book and 58.4% of the Japanese order book are deliveries for either the container, dry bulk or offshore segments, there is a possibility for postponements and cancellations. The postponements can add a further headache to shipyards’ liquidity, as final payments in these cases may be delayed.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

Although are experiencing a stable volume in this challenging market, based on the current trends in their end markets and increased uncertainty in the global economy, Wärtsilä’s outlook for demand development remains cautions. During the January – June 2016 period their order intake increased 1% to EUR 2,465 million, while net sales decreased by 2%. Prospects for 2016 remain unchanged with net sales projected to grow by 0 – 5% and profitability (comparable operating result as a percentage of net sales) to be 12.5 – 13.0%. While new power generation capacity improved slightly during the first half of 2016, contracting activity for Marine Solutions clearly weakened during the same period with only 228 contracts for new vessels registered compared to 806 in the corresponding period of the previous year. In the marine markets, the weak short-term global economic outlook, overcapacity and low demand for cargo tonnage are limiting recovery in the conventional shipping segment. Low oil prices, an oversupply of oil and gas and reduced capital expenditure from oil companies continue to limit offshore investments. The decline in newbuilding prices may push yards to pressure suppliers on prices. While the risk of cancellations exists, negotiations to extend existing delivery contracts appear to be a larger risk for shipyard order books. The demand for cruise ships, ferries and RoRo vessels remained at a good level, supported by fleet renewals, low newbuilding prices and healthy earnings in the RoRo segment. In terms of gross tonnage, contracting activity was more evenly distributed outside the traditional top three shipbuilding countries. This was largely driven by the increase of cruise vessels within the contracting mix. Of the confirmed contracts, China secured 38%, Italy 14% and South Korea 13%, while Germany and Japan secured 11% and 9% respectively. Wärtsilä’s share of the medium-speed main engine market was 58% (60% at the end of the previous quarter). The market share in auxiliary engines was 13% (13% end previous quarter). Marine Solutions’ second quarter order intake totaled EUR 362 million (392), a decrease of 8% compared to the corresponding period last year. The demand for electrical and automation solutions remained sound. Included in the orders received was a contract to supply integrated turnkey electrical solutions for four new RoRo ferries being built at the Flensburger Schiffbau-Gesellschaft yard in Germany for SIEM RoRo Carriers Ltd. The cruise and ferry segment represented 37% of the second quarter order intake and the conventional merchant segment’s share was 28%. Gas carriers accounted for 13% of the order intake and the navy segment for 7%, while special vessels represented 6%, offshore 4% and other orders 5% of the total. The outlook for the shipping and shipbuilding markets remains challenging. Overcapacity continues to limit demand for new vessels in the merchant segment, while low oil prices impact investments in offshore exploration and development. In the gas carrier markets, the demand for both LNG and LPG carriers is under pressure due to low oil and gas prices and supply-demand imbalances. The outlook for the cruise and ferry segment remains positive. The demand for cruise vessels is supported by increasing passenger volumes, particularly in Asia, while the contracting of ferries is supported by fleet renewals in Europe, the potential implementation of new emission regulations and favorable newbuilding prices.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

Caterpillar Inc. second-quarter 2016 sales and revenues were $10.342 billion, down 16% from $12.317 billion in second quarter 2015 – which was better than expected. Decrease was primarily due to lower sales volume resulting from continued weak commodity prices globally and economic weakness in developing countries. While sales for both new equipment and aftermarket parts declined in all segments, most of the decrease was for new equipment. World economic growth remains subdued and is not sufficient to drive improvement in most industries and markets CAT serves. Commodity prices appear to have stabilized, but at low levels. Global uncertainty continues and the recent Brexit outcome and turmoil in Turkey add to risks, especially in Europe. The outlook for 2016 that Caterpillar provided with first-quarter financial results in April expected sales and revenues in a range of $40 to $42 billion. Over the past quarter, economic risks persisted and, as a result, current expectations for 2016 sales and revenues are closer to the bottom end of that range. Restructuring costs in 2016, expected to be about $550 million, are now forecast to be about $700 million. Additional workforce reductions expected second half 2016 are the primary reason for the increase in restructuring costs. Sales and revenues for 2016 are expected to be $40.0 to $40.5 billion. “Despite a solid second quarter, we’re cautious as we enter the second half of the year. We’re not expecting an upturn in important industries like mining, oil and gas and rail to happen this year. We’re continuing significant restructuring plans, which are designed to bring our cost structure more in line with demand while maintaining our capability to quickly serve our customers when our business recovers. Once it does recover, we expect substantial incremental profit improvement, realizing the benefits of the tough actions we’re implementing now coupled with our ongoing investments in products and digital capabilities. Amidst these very challenging market conditions, our balance sheet remains strong and our employees are delivering better performance on everything from safety, quality and cost management to machine market position. I’m inspired by our people as they’re the primary reason we’re weathering this downturn as successfully as we are,” said Caterpillar Chairman and CEO Doug Oberhelman. Sales declined in all regions. North American sales decreased 16% primarily due to lower end-user demand for construction, continuing declines in mining and impact of low oil prices. In EAME [Europe, Africa, Middle East and Commonwealth of Independent States (CIS)], sales declined 15% primarily in Africa/Middle East due to weak economic conditions resulting from low oil and other commodity prices and an uncertain political environment. Sales decreased 31% in Latin America primarily due to continued widespread economic weakness across the region. The most significant decreases were in Brazil and Mexico. Asia/Pacific sales declined 13% primarily due to lower end-user demand for Energy & Transportation applications. Sales decreased in all segments. Energy & Transportation’s sales were $ 3.75 billion in the second quarter of 2016, a decline of 20% largely due to lower end-user demand for oil and gas and transportation applications caused by the low oil prices. Sales decreased in all applications with nearly 80% of the decline in oil and gas and transportation. Oil and Gas sales decline was most significant in EAME and Asia/Pacific, primarily due to lower demand for equipment used for gas compression, production and drilling applications. The decline in sales in North America was mostly due to lower end-user demand for reciprocating engines used in gas compression applications. While oil prices have improved since beginning 2016, it is not clear at this time that the current price level is sufficient to drive increased demand. Caterpillar has seen minimal change in continued low drill rig counts and little improvement in customers' fleet utilization rates. CAT continues to monitor a number of factors in addition to oil prices that shape their outlook, including recent order rates, quotation activity, current backlog, trends in retail statistics and discussions with customers. Based on these factors, Caterpillar does not see the current price driving significant increase in demand for their products in 2016. Transportation sales decreased in all geographic regions. The most significant decline was in Asia/Pacific primarily due to lower demand for equipment used in marine applications. The decrease in North America was due to discontinued production of on-highway vocational trucks. Weakness continued in the rail industry across all regions and the most significant reason for sales declines in EAME and Latin America. Sales into the rail industry in North America were about flat. Resource Industries’ sales declined 29%, or $ 1,457 billion in second quarter 2016 mostly due to continued low end-user demand across all regions. While commodity prices improved from their recent lows, it is not clear at this time if the current prices are sufficient to drive increased demand for equipment. Mining customers continued to focus on improving productivity in existing mines and reducing their total capital expenditures, as they have for several years. As a result, sales and new orders in Resource Industries continue to be weak. Construction Industries’ sales decreased 8% to $ 4.426 billion primarily due to unfavorable price realization and lower demand from end users. Unfavorable price realization resulted from competitive market conditions globally and an unfavorable geographic mix of sales. Sales decreased in North America and Latin America while slightly increasing in Asia/Pacific. Sales in EAME were flat.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

Cummins Inc. reported second quarter revenues of $4.5 billion decreased 10% from the same quarter in 2015. Lower truck production in North America and weak global demand for off-highway and power generation equipment were the most significant drivers of the decline in sales. Currency negatively impacted revenues by approx. 1% compared to last year, primarily due to a stronger US dollar. Revenues in North America decreased 13% while international sales declined by 4%. Within international markets, revenues in the Middle East, Mexico and Brazil declined the most. Earnings before interest and taxes in the second quarter were $591 million, or 13.1% of sales, down from $721 million or 14.4% of sales a year ago. Net income attributable to Cummins was $406 million compared to $471 million in the second quarter of 2015. “We made strong progress in our cost reduction initiatives in the second quarter, while continuing to invest in and launch new products that will drive profitable growth in the future,” said Tom Linebarger, Cummins Chairman and CEO. “Benefits from restructuring actions, material cost reduction initiatives and improvements in product quality helped to mitigate the impact of weak demand in a number of our largest markets and will position the Company for stronger performance when markets improve……” concluded Linebarger. Based on the current forecast, Cummins expects full year 2016 revenues to be down 8 to 10%, lower than their previous guidance of down 5 to 9% primarily due to a lower outlook for North America truck production and weaker demand in global off-highway markets. MAN Group interim gross sales for the first six months of 2016 were $9.8 million (H1 2015: $10.5 billion). Adjusted profit before tax was $98 million (H1 2015: $280 million). Manny Roman, outgoing CEO of MAN, said: “The first half of 2016 has been a particularly challenging period for the global investment management industry. The first quarter of the year was a highly volatile period in financial markets. AHL’s momentum strategies performed well, but it was a difficult time for our long only strategies. Markets reversed in the second quarter and as a result, AHL’s momentum strategies gave back the gains they had made in the first quarter. Recent volatility post-Brexit has benefitted AHL but created a difficult environment again for our discretionary strategies. In the context of this market environment, we had net inflows of $1.0 billion for the half. In particular, we saw good inflows into our quant business from institutional clients, across AHL’s range of strategies and into Numeric. Looking forward, the outlook, particularly cross border post Brexit, remains uncertain and accordingly the risk appetite of our clients has the potential to impact flows, albeit we have seen no meaningful change so far. The ongoing diversification of our business has enhanced our resilience as a firm and our ability to navigate the current economic environment. We are well-positioned to manage any subsequent regulatory changes and assuming a stable regulatory environment, we are committed to keeping our headquarters in the UK. As previously indicated, we continue to explore opportunities to grow the business, both organically and by acquisition, to deliver long term value to shareholders.” In the first half of 2016, Rolls-Royce performed broadly in line with expectations, delivering a result a little better than breakeven; and the outlook for the rest of the year remains unchanged. Order intake has been good and, although known headwinds constrained revenue and profit in the first half, according to CEO Warren East, the business remains well positioned to deliver a solid second half performance supported by growth in engine deliveries, stronger aftermarket revenues and incremental benefits from its ongoing restructuring programs. Half th year 2016 to 30 June reported revenues were GBP 6,462 pound sterling, down 1% from GBP 6,370 during the same 2015 period. Underlying revenues were down 5% at constant exchange rates, led by Civil Aerospace (51% of group revenues) and Marine (9% of group revenues). The underlying Marine revenue of £548 million was 25% lower (down 21% at actual rates). Within this, original equipment revenues were down 30% and service revenues declined 17%, primarily due to the downturn in the offshore market. The order book declined 22% during the first half of this year, with order intake of £362m, 36% down on H1 2015. In particular, the offshore market has remained very weak, with the low level of OE revenues reflecting the impact of the continued low oil price and reduced investment by oil majors. Service revenues have been more resilient, although also at subdued activity levels. Rolls Royce continues to look for opportunities to extend their differentiated technology into non–oil related adjacent markets including other support, fishing and research vessels. These applications place a similar value on the high-performance characteristics of Marine products. One of the most interesting contract wins will be to design and equip the UK’s new 129.6m x 24.0m polar research ship, the “RRS Sir David Attenborough” being built by Cammel Laird Shiprepairers & Shipbuilders Ltd. of Birkenhead for The British Antarctic Survey.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

In addition, there have been a number of opportunities for Rolls Royce within the cruise ship sector, including a £25m order to design and equip up to four new Hurtigruten polar cruise vessels to operate off the coast of Norway, announced in July (and therefore not in the closing order book). The Naval business has continued to perform well, having a strong first half compared to the prior year. This included delivery of the first MT30 gas turbine for the UK’s new Type 26 Global Combat Ship and the successful sea trials of DDG-1000, the 182.9m x 24.6m x 8.4m draft USS “Zumwalt” (named after Admiral Elmo “Bud” Zumwalt, Jr. who served as Commander Naval Forces Vietnam and Chief of Naval Operations in the 1960s & 70s when I was in the navy. He was very much appreciated by the enlisted sailors). The MT30 was also selected by a new customer, the Italian Navy. Product development work within the business included increasing its R&D focus on ship intelligence to develop a range of products that can monitor equipment performance in real time and help facilitate full ship automation in the long-term. The marine restructuring programme remains on track, following last year’s proposals to reduce the workforce by 1,000. By the end of 2016, Rolls Royce will have reduced their Marine workforce by around 20% since 2014. They continue to assess further cost restructuring opportunities. With the continued decline with offshore oil & gas markets impacting revenues the Marine business is becoming more balanced across its different end markets. As a result, business performance is starting to more visibly reflect the benefits of restructuring and its strong positions in Naval and Merchant, positive features as the business looks to the next few years. However, in the near-term, expectations for the second half 2016 remain challenging. While the stronger Naval and Merchant order book at the end of H1 provides some comfort for achieving expectations for the full year, when combined with the ongoing focus on cost reduction, there are continued weaknesses in offshore oil & gas and potential order cancellations. As a result, Rolls Royce continues to expect revenues and profits to be lower than those seen in the second half of 2015. In June, Rolls-Royce announced plans for a major programme of investment in its azimuth thruster production facility in Rauma, Finland, consolidating assembly and test capability and modernizing the operation to position the business for future growth opportunities. The €57 million (£44 million) project will include a major rebuild of existing facilities, the transfer of thruster assembly and testing onto one site from the existing two locations and a significant investment in new equipment. Rauma produces a wide range of mechanical azimuth thrusters for use on a wide range of applications including semi-submersible drilling rigs and drill ships, tugs and offshore vessels. Rauma also produces thrusters for specialist vessels such as icebreakers and polar research ships. Mikael Makinen, Rolls-Royce, President – Marine, said: “Our azimuth thrusters are one of our most important products, providing mission critical power and propulsion for some of the largest floating objects on the planet. To be able to make this significant investment in Rauma not only prepares us for future growth in this market, but is a vote of confidence in the capability and expertise of our people.” Olli Rantanen, Rolls-Royce Finland, Managing Director, added: “Since the first azimuth thruster was developed here in Rauma over 50 years ago, these products have become the standard choice for customers demanding very high levels of reliability, power and performance often in extremely challenging environments. This investment will allow us to plan for the future and enable us to efficiently produce our existing range and develop new and larger mechanical thrusters.” Azimuthing thrusters rotate through 360 degrees, providing propulsion and maneuverability without the need for a rudder. The largest and most powerful thrusters from Rauma are the ARC type which power icebreakers including the Finnish vessel “Fennica”. They are among the largest products produced by RollsRoyce and can each weigh up to 190 tonnes, providing 7.5Mw of power. Two of the world’s largest floating structures are powered by another range of thrusters produced in Rauma, UUC underwater mountable thrusters. The “Pioneering Spirit”, owned by Allseas, is an innovative heavy lift vessel which is used for decommissioning oil platforms – 13 UUC thrusters power this twin hulled, construction vessel and Shell’s “Prelude”, the world’s first floating liquefied natural gas production facility will feature three large UUC thrusters, for position keeping. The thrusters are installed in a novel arrangement that allows them to be removed and maintained within the ship. The work to transform Rauma will begin immediately and is due for completion in 2020. The investment will include installation of a crane capable of lifting 200 tonnes and at least six factory acceptance test rigs. Offices and IT systems will also be refurbished.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

Schottel now offers more robust Rudderpropellers thanks to optimized coating processes. The result is maximum corrosion protection due to optimized resistance to abrasion and greater adhesive force in combination with thicker coats of paint. The underwater elements of the propulsion unit are coated with several layers of extremely hard, two-component epoxy resin. Compared with a conventional standard coating, this is characterized by 2.3 times greater abrasion resistance and approx. 60% greater adhesion. For the above-water sections, Schottel uses a very dense and extremely durable two-component polyurethane coating. In 2015, Schottel commenced operations at a new plant near the company’s headquarters in Germany. Production is carried out here to the latest standards. Thanks to an optimized air-mix painting process and ideal conditions for preparation of the substrate, the propulsion systems can be protected even better for practical operation. New blasting booths form the basis for substrate preparation of the entire Rudderpropeller in accordance with the strictest cleaning standards. The coatings now used by Schottel meet the requirements of the highest corrosion protection class C5-M (Very high (marine)). At this year's SMM in Hamburg September 6 - 9, Voith GmbH presents propulsion concepts for a wide variety of applications with units such as the Voith Schneider Propeller (VSP), the Voith Inline Thruster (VIT) and the Voith Linear Jet (VLJ). With its propulsion concepts, Voith has been setting standards for reliable, efficient and safe vessel propulsion systems and concepts for many years. Two vessel models equipped with VSPs will be on display- the novel Carousel RAVE (Robert Allan Voith Escort) Tug owned by Dutch towage and salvage specialist Multraship BV and “Kroonborg”, a maintenance support vessel (MSV) owned by Dutch shipping company Royal Wagenborg. On the Carousel RAVE Tug, a novel towing system prevents capsizing of the tug. Propulsion and steering of the 32 meter vessel is via two 32RV5 EC/250 VSPs: one at the bow and one at the stern. The arrangement allows for a slim vessel design and facilitates maneuvering, particularly in narrow locks, ports or channels. In addition, this vessel concept facilitates high lateral thrust forces of up to 130 tons at a speed of eight knots. In November 2015, Multraship, through its 100% owned subsidiary Novatug BV, commissioned construction of two evolutionary Carrousel Rave Tugs (CRTs) from Damen Shipyards. Delivery of the Bureau Veritas classed vessels is scheduled for first-quarter 2017. Hulls of the vessels are being built by German shipyard Theodor Buschmann GmbH in Hamburg, with final outfitting carried out by Damen Maaskant Shipyards in Stellendam, the Netherlands. The RAVE design was developed by Robert Allan Ltd., in conjunction with Voith. The CRTs have an overall length of 32 meters and bollard pull of minimum 70 tonnes. Propulsion is via fore & aft Voith thruster units and two 2,650bkW ABC main engines operating at 1,000RPM. Free running speed is over 14kn at 5,300bkW. Carrousel tug’s lower operational costs, speed of action and enhanced control over the tow are expected to provide advantages over conventional tugs, for example by widening or even removing tidal and/or weather windows for certain ports. Novatug will offer the Carrousel Rave tugs on the basis of long-term bareboat charters, basically a financial or operational lease construction, which is both customary and proven in other capital-intensive industries such as aviation. Another unique, double-ended, patented tug design, the 25.75m x 13.02m x 5.20m depth / 5.30m draft “Giano” will be working in Naples during September and October and available for clients, their experienced skippers and shipyards interested in licensing to inspect and enjoy a “hands-on” demonstration. Tug has a high displacement hull with two large structural keels and a high stability with a GM of 3.6m. The vessel is capable of delivering 55 tonnes pull in all directions at full power with zero degree list and a side stepping speed of 7kn, 10 seconds from full speed ahead to full speed sideways. Tug can work equally well from bow or stern and is fitted with integral "W" heavy duty underwater fendering. Follow up in-line controls in the wheelhouse provide intuitive response in handling. Marcon is exclusive broker for North and Latin American markets for newbuildings and licensing of shipyards. Further technical details and latest video demonstrating maneuverability are available on Marcon’s website.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

The Economy, Trade & the Towing Industry “Location, Location, Location” was a phrase used as long ago as 1926 in a classified advertisement to describe a property in the Chicago Tribune newspaper. Today’s shipping industry’s version of “Trade, Trade, Trade” is dependent on “Growth, Growth, Growth” - which is affected by everything from uncertainty in the aftermath of the U.K. referendum complicating an already fragile global economy to the “blah” global economy, trade agreements – or lack thereof, terrorism, the climate, tightening of borders, political in-fighting in just about every country you can name and countless other factors. Appropriately the title of the International Monetary Fund’s July 2016 update to their April 2016 World Economic Outlook is “Too Slow for Too Long”. Unfortunately, growth in both trade and world output continue to slowly decline. These declines themselves are not necessarily major, but it is starting to feel like “death by a thousand cuts”. Before the June vote in the U.K. in favor of leaving the EU, economic data and financial market developments suggested that the global economy was evolving broadly as forecast in the International Monetary Fund’s April 2016 WEO. Growth in most advanced economies remained lackluster, with low potential growth and a gradual closing of output gaps. Prospects remained diverse across emerging market and developing economies, but with some improvement for a few large emerging markets - in particular Brazil and Russia pointing to a modest upward revision to 2017 global growth. The outcome of the U.K. vote, which surprised global financial markets, implied an important downside risk for the world economy. As a result, global outlook for 2016-17 worsened, despite betterthan-expected performance early 2016. This deterioration reflects the expected increase in uncertainty, including on the political front. This uncertainty is projected to take a toll on confidence and investment, including repercussions on financial conditions and market sentiment. The initial financial market reaction was severe but generally orderly. As of mid-July, the pound weakened by about 10%; despite some rebound, equity prices lowered in some sectors and yields on safe assets declined. With “Brexit” still very much unfolding, the extent of uncertainty complicates a difficult task of forecasting. The baseline global growth forecast has been revised down relative to April 2016’s WEO by 0.1 percentage points for 2016 and 2017, compared to a 0.1 percentage point upward revision for 2017 envisaged preBrexit. Revisions are concentrated in advanced European economies, with a relatively muted impact elsewhere. Pending further clarity on the exit process, the baseline reflects a benign assumption of a gradual reduction in uncertainty going forward, with arrangements between the EU and U.K. avoiding a large increase in economic barriers, no major financial market disruption and limited political fallout. But more negative outcomes are a distinct possibility with alternative scenarios ranging from current to severe. rd

The recovery in financial and oil markets starting mid-February only lasted through 23 June, as markets mistakenly assumed the U.K. would remain in the European Union. Declines in excess oil supply - due mainly to a gradual slowdown in non-OPEC production and some supply disruptions notably in Nigeria and Canada helped bolster oil prices. Output growth in first quarter 2016 was somewhat better than expected in emerging and developing economies and roughly in line with projections for advanced economies, with better-than-expected euro area growth counterbalancing weaker U.S. growth. Productivity in most advanced economies remained sluggish and inflation was below target owing to slack and the effect of past declines in commodity prices. Indicators of real activity were somewhat stronger than expected in China, reflecting policy stimulus, as well as in Brazil and Russia, with some tentative signs of moderation in Brazil’s deep downturn and stabilization in Russia following a rebound in oil prices. While global industrial activity and trade have been lackluster amid China’s rebalancing and generally weak investment in commodity exporters, recent months have seen some pick-up due to stronger infrastructure investment in China and higher oil prices. These data, together with financial market developments in the months before the referendum, indicated a global economic outlook broadly in line with the April 2016 WEO forecast. In the immediate aftermath of the U.K. referendum equity prices declined worldwide. These prices have since rebounded, although as of mid-July bank equity valuations for U.K. and European banks remain substantially lower than before the referendum and domestically focused U.K. equities are slightly weaker. Yields on safe assets declined further, reflecting both higher global risk aversion and expectations of easier monetary policy going forward, particularly in the main advanced economies. Prices of oil and other commodities declined moderately, but remained above those underpinning assumptions for the April 2016 WEO.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

Taking into account better-than-expected economic activity so far in 2016 and the likely impact of Brexit under the assumptions just described, global growth forecasts for 2016 and 2017 were both marked down by 0.1 percentage points relative to the April 2016 WEO, to 3.1% and 3.4%, respectively. The outlook worsens for advanced economies (down by 0.1 percentage points in 2016 and 0.2 percentage points in 2017) while it remains broadly unchanged for emerging market and developing economies. Among advanced economies, the U.K. experienced the largest downward revision in forecasted growth. While growth first part 2016 appears to have been slightly stronger than expected in April, the increase in uncertainty following the referendum is projected to significantly weaken domestic demand relative to previous forecasts, with growth revised down by about 0.2 percentage points for 2016 and by close to 1 percentage point in 2017. In the United States, first-quarter growth was weaker than expected, triggering a downward revision of 0.2 percentage points to the 1.8% of the 2016 growth forecast. Indicators point to a pickup in the second quarter and for the remainder of the year, consistent with fading headwinds from a strong U.S. dollar and lower energy sector investment. The impact of Brexit is projected to be muted for the United States, as lower long-term interest rates and a more gradual path of monetary policy normalization are expected to broadly offset larger corporate spreads, a stronger U.S. dollar and some decline in confidence. In light of fallout from the U.K. referendum and potential impact of increased uncertainty on consumer and business confidence (and potential bank stresses), 2017 growth was revised down by 0.2 percentage points relative to April, while 2016 growth is still projected slightly higher, given outcomes in the first half of the year. Delays in tackling issues in the banking sector, however, continue to pose downside risks. The outlook in other large emerging markets has changed slightly. Consumer and business confidence appears to have bottomed out in Brazil and their GDP contraction in the first quarter was milder than anticipated. Consequently, the 2016 recession is now projected to be slightly less severe, with a return to positive growth in 2017. Political and policy uncertainties remain, however and cloud the outlook. Higher oil prices are providing some relief to the Russian economy, where the decline in GDP this year is now to be milder, but prospects of a strong recovery are subdued given longstanding structural bottlenecks and the impact of sanctions on productivity and investment. In India, economic activity remains buoyant, but the growth forecast for 2016-17 was trimmed slightly, reflecting a more sluggish investment recovery. The outlook for other emerging market and developing economies remains diverse. Growth projections were projected revised down substantially in subSaharan Africa, reflecting challenging macroeconomic conditions in its largest economies, which are adjusting to lower commodity revenues. In Nigeria, economic activity is now projected to contract in 2016, as the economy adjusts to foreign currency shortages as a result of lower oil receipts, low power generation and weak investor confidence. These revisions for the largest low-income country are the main reason for the downgrade in growth prospects for the low-income developing countries group. In South Africa, GDP is projected to remain flat in 2016, with only a modest recovery next year. In the Middle East, oil exporters are benefiting from the recent modest recovery in oil prices while continuing fiscal consolidation in response to structurally lower oil revenues, but many countries in the region are still plagued by strife and conflict. As noted earlier, with Brexit still very much unfolding, the extent of economic and political uncertainty has risen and the likelihood of outcomes more negative than the one in the baseline has increased.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

More than half of global transport exports relate to freight transport and seaborne freight represents the largest share – i.e. 30% in 2014. According to the World Trade Organization, the value of merchandise trade and trade in commercial services in 2015 is nearly twice as high as in 2005, but declined last year following only modest growth between 2012 and 2014. A decline in world commodity prices had a significant impact on the value of global merchandise trade in 2015. The volume of world trade did continue to grow in 2015, but the rate of that growth is slowed to 2.7%, revised down in April 2016 from a preliminary estimate of 2.8%. Despite a positive growth in trade volume, the current dollar amount of world merchandise exports declined by 14% in 2015 to US$ 16.0 trillion, as export prices fell by 15%. Merchandise values appeared to be stabilizing first quarter 2016 as the dollar eased and oil prices staged a modest recovery, but the outlook for the year remains subdued. The slow pace of trade growth relative to GDP growth mentioned in our May Tug Market Report continues to stand in contrast to the period from 1990 to 2008, during which time world merchandise trade volume grew 2.1 times as fast as world GDP on average. The recent uninterrupted spell of slow trade growth is unusual but not unprecedented. Overall, world trade growth was weaker between 1980 and 1985, when five out of six years saw trade growth below 3%, including two years of outright contraction. Do you remember the previous “1980 recession” that was followed one year later by the “early 1980s recession” when indications of a world oil glut led to a rapid decline in oil prices? OPEC seemed to lose control causing a virtual shutdown of the offshore petroleum industry. Fleets were laid up and not only in the United States. Foreign operators were going through the same downturn – and a number of established old-name companies did not survive. Many second-hand supply boats, tugs and barges were sold by owners, banks and the U.S. Maritime Administration for 30 cents on the dollar and less. I remember it well. 1981 was the year Marcon opened its doors. It was not until 1983 we were able to sell our first offshore supply boat – appropriately named the “Low Tide”. Once again, the global economy is stuck in a low growth trap – at a low tide. According to the OECD, G20 total international merchandise trade, seasonally adjusted and expressed in current US dollars, contracted further in the first quarter of 2016, approaching six-year lows, as crude oil prices continued to fall. Exports fell for the seventh consecutive quarter by 3.8%, while imports fell for the eighth consecutive quarter by 4.1%. Imports in Q1 2016 fell in all G20 economies except Germany, with significant falls in China (by 14.7%), Korea (8.2%), South Africa (7.7%, the eighth consecutive drop), India (7.4%), the United Kingdom (6.5%) and Brazil (5.2%, the eighth consecutive drop). The European Union (EU28), Russia and the United States have now all recorded seven or more quarterly consecutive falls. Export also fell significantly in Russia (by 16.8%, the seventh consecutive fall), China (9.3%), South Africa (7.4%) and the United Kingdom (7.2%). Only Brazil (up 0.3%), Germany (up 0.5%) and Japan (up 1.1%) recorded small increases in exports in Q1 2016, partly un-winding falls in previous quarters. Japan has moved to a trade surplus for the first time since Q1 2011 but quarterly imports and exports values remain well below their 2011 levels. G20 Total International Merchandise Trade Seasonally Adjusted, Current Prices. US$ billion Quarters G20

U.S.

2014Q1

Export

3,580.7

Import

3,690.0

Export

397.9

Import

578.6

2014Q2

3,626.2 1.3% 3,667.1 -0.6% 405.6 1.9% 590.7 2.1%

2014Q3

3,616.3 -0.3% 3,637.0 -0.8% 410.3 1.2% 589.6 -0.2%

2014Q4

3,485.3 -3.6% 3,491.1 -4.0% 406.8 -0.9% 588.8 -0.1%

2015Q1

3,243.2 -6.9% 3,214.0 -7.9% 380.2 -6.5% 566.5 -3.8%

2015Q2

3,197.5 -1.4% 3,170.6 -1.4% 382.1 0.5% 563.5 -0.5%

2015Q3

3,154.6 -1.0% 3,140.2 -1.0% 378.0 -1.1% 563.0 -0.1%

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

2015Q4

3,099.6 -1.9% 3,080.4 -1.9% 364.7 -3.5% 547.9 -2.7%

2016Q1

2,983.0 -4.1% 2,954.4 -4.1% 350.8 -3.8% 533.8 -2.6%

29

Marcon International, Inc. Tug Boat Market Report – August 2016

Total nonfarm payroll employment rose by 255,000 in July and the unemployment rate was unchanged at 4.9%, the U.S. Bureau of Labor Statistics reported. The number of unemployed persons was essentially unchanged at 7.8 million. Both measures have shown little movement, on net, since August of last year. In July, the number of persons unemployed less than 5 weeks decreased by 258,000. At 2.0 million, the number of long-term unemployed (those jobless for 27 weeks or more) was about unchanged over the month and accounted for 26.6% of the unemployed. Both the labor force participation rate, at 62.8% and the employment-population ratio, at 59.7%, changed little in July. The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was little changed at 5.9 million in July. These individuals, who would have preferred full-time employment, were working part time because their hours had been cut back or because they were unable to find a full-time job. In July, 2.0 million persons were marginally attached to the labor force, about unchanged from 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 as unemployed because they had not searched for work in the 4 weeks preceding the survey. Among the marginally attached, there were 591,000 discouraged workers in July, little different from a year earlier. Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.4 million persons marginally attached to the labor force in July had not searched for work for reasons such as school attendance or family responsibilities. Regardless of how good a 4.9% unemployment rate sounds, especially considering the peak of over twice that in 2009, if you take in account 2.0 million persons marginally attached to the labor force, 591,000 discouraged workers, 5,940,000 employed part time for economic reasons and 7,770,000 officially unemployed, the U.S. still has 16,301,000 either under employed or unemployed which is 10.23% of the U.S. civilian labor force – although admittedly that is much better than 18.12% ten years ago. That is a waste of a good resource. While job gains occurred in professional and business services, health care and financial activities, mining employment continued to trend down over the month. Since reaching a peak in September 2014, employment in this industry has fallen by 220,000, or 26%. Government employment edged up in July by 38,000 to 20,430,000 persons. Employment in other major industries, including construction, manufacturing, wholesale trade, retail trade and information, showed little or no change over the month. Unemployment rates in transportation and material moving occupations was 7.5% compared with 6.9% in July 2015. The average workweek for all employees on private nonfarm payrolls increased by 0.1 hour to 34.5 hours in July. In manufacturing, the workweek was unchanged at 40.7 hours, while overtime increased by 0.1 hour to 3.3 hours. In July, average hourly earnings for all employees on private nonfarm payrolls increased by 8 cents to $25.69. Over the year, average hourly earnings have risen by 2.6%. Average hourly earnings of private-sector production and nonsupervisory employees increased by 7 cents to $21.59 in July. Eurostat, the statistical office of the European Union, estimates the euro area (EA19) seasonally-adjusted unemployment rate was 10.1% in June 2016, stable compared to May 2016 and down from 11.0% in June 2015. This remains the lowest rate recorded in the euro area since July 2011. The EU28 unemployment rate was 8.6% in June 2016, stable compared to May 2016 and down from 9.5% in June 2015. This remains the lowest rate recorded in the EU28 since March 2009. Eurostat estimates that 20.986 million men and women in the EU28, of whom 16.269 million were in the euro area, were unemployed in June 2016. Compared with May 2016, the number of persons unemployed decreased by 91 000 in the EU28 and by 37 000 in the euro area. Compared with June 2015, unemployment fell by 2.114 million in the EU28 and by 1.363 million in the euro area. Among the Member States, the lowest unemployment rates in June 2016 were recorded in Malta (4.0%), the Czech Republic (4.1%) and Germany (4.2%). The highest unemployment rates were observed in Greece (23.3% in April 2016) and Spain (19.9%). Advance statistics showed that Singapore’s overall unemployment rose in June 2016 to 2.1% from 1.9% in March 2016. Amid subdued global economic conditions, employment grew at a slower pace in the second quarter of 2016, compared with the first quarter of 2016 and a year ago. Layoffs rose from the previous quarter and a year ago. Malaysia’s June unemployment rate of 3.4%, was unchanged from May 2016 and up 0.2 percentage points from June 2015. The number of unemployed in South Korea totaled 15,864,000 in July, or 3.5% of its labor force. Bloomberg reports that China’s unemployment rate may be three times the official estimate which has been reported relatively stable near the 4% mark for five years.

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

30

Marcon International, Inc. Tug Boat Market Report – August 2016

According to the CPB Netherlands Bureau for Economic Policy Analysis, the volume of world trade rose 0.7% in June, having decreased 0.5% in May (initial estimate: -0.4%). Overall, export volume grew 0.7% in both advanced and emerging economies. Import volume expanded 1.2% in advanced economies, while it contracted 0.3% in emerging economies, as a result of a decrease in Asia. There were positive sign reversals at both the import and export side in the Euro Area. Because of the volatility of monthly trade figures, momentum is the preferred measure of trade growth. Trade momentum was -0.8% in June (non-annualized), up from -1.0% in May (initial estimate: -0.8%). At both the import and export side, both the negative number and the increase from last month were the reflection of wide-spread regional outcomes. According to preliminary data, world industrial production grew 0.6% in June 2016, following a 0.3% decrease in May (initial estimate: +0.2%). At the aggregate level, production grew at equal rates in advanced and emerging economies. There were many positive sign reversals at the regional level, the group Other advanced economies being the only region recording negative growth in June. Global production momentum was 0.4% in June, up from 0.2% in May (initial estimate: 0.4%). Momentum remained just below zero in advanced economies, while it moved up further in emerging economies mainly because of acceleration in emerging Asia. Momentum in Latin America has been negative since January 2015. Following are select Main Economic Indicators 2014 – 2017 from CPB Netherlands Bureau to be published on 20th September 2016.

Relevant world trade volume goods & services Crude oil price (dollar per barrel) Exchange rate (dollar per euro)

2014 3.9% 99.00 1.33

2015 3.8% 52.5 1.11

2016 3.4% 43.7 1.11

2017 3.2% 51.4 1.11

Even though very few tugs themselves end up in the traditional coastwise container trade, container statistics are readily available and usually more up-to-date than most other maritime cargoes. Therefore containers end up being the proverbial “canary in a coal mine”, making them a useful early economic indicator of the health of global trade and a good example when “supply and demand” becomes out of sync. According to DNV GL-Maritime the container industry is not likely to achieve a full recovery until at least 2018. The oversupply of container vessels will still be with us and the outlook for the remainder of 2016 and 2017 is not good. Seven percent of the global fleet is laid up and the freight index is still pointing downward. Another good indicator is the Baltic Dry Index (BDI) issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index provides an assessment of the price of moving major raw materials by sea such as coal, iron ore and grain and is both an indicator of the current market and a leading indicator in that it th predicts future economic growth. On 20 May 2008, the index reached its record high level since its introduction in 1985, reaching th 11,793 points. While the 720 BDI on 26 August was an improvement th over its historic low of 290 on 10 February 2016, we ended up the month with a 93.89% decline since May 2008. The offshore services market is another good example of “supply and demand” and what happens when outside forces not under control of vessel owners and operators come into play. The offshore market is now about two years into the prolonged downturn that began when Saudi Arabia unilaterally decided to keep their oil spigot open in the hope of gaining market share from the U.S. shale and Canadian sands production. The decrease in oil and gas prices began in the summer of 2014 th when the Brent Spot Price of crude oil fell from $114.25 per barrel on 18 June to $46.49 in January 2015 and then to a low of $30.14 one year later. This led to substantial lower levels of spending for offshore exploration and development globally – and cut a lot of tug and AHTS utilization worldwide. The Baker Hughes total offshore rig count for August 2016 was 228, down 42 rigs from the 270 counted in August 2015 and down 87 from 315 counted in August 2014. The North American offshore rig count for August was 18, down 20 from 38 in August 2015 and down 48, or 72.7%, from the 66 drilling rigs actively exploring for or developing oil or natural gas in the United States and Canada in August st 2014. Sustainable oil prices in the upper $50s is required for a North American recovery. As of 31 August the Brent Spot Price for crude oil was $47.94 and on a slight downward trend. 31

www.marcon.com

Details believed correct, not guaranteed. Offered subject to availability.

Marcon International, Inc. Tug Boat Market Report – August 2016

At 70.2 million tons in the first half of 2016, total The Port of Hamburg seaborne cargo throughput, including general and bulk cargo segments, was slightly – 0.9% – down on the previous year. In the first six months containerized cargo handling totaled 4.5 million TEU corresponding to a downturn of 1.2%. “Seaborne cargo throughput in the Port in the first half of the year may have been slightly lower, but the trend was noticeably more stable. With an advance of 1.9% by comparison with the preceding three months, the second quarter of 2016 already signaled a discernible upward trend,” said Axel Mattern, joint CEO of Port of Hamburg Marketing. This positive trend is also demonstrated by a comparison of second quarters 2016 and 2015, which reveals growth of 0.7%. The trend on seaport-hinterland traffic by rail is also very gratifying. Mattern: “We have established that in the first half of 2016, the quantity of freight transported ecologically by rail reached 23.8 million tons, representing a real increase advance of 3.9%. Hamburg is further extending its position as the largest rail port in Europe.” At 4.5 million TEU in the first six months of the year container throughput was slightly below the previous year’s. Yet the collapse in container traffic with China and Russia reported last year has meanwhile been almost completely halted. Despite continuance of foreign trade sanctions, for instance, 216,000 TEU have been transported between the Port of Hamburg and Russia, representing a 2.3% increase. Container traffic with China also developed more steadily, being just slightly – 1.0% – below the previous year’s figure at 1.3 million TEU. Also very satisfactory is the growing importance of India, which with 128,000 TEU – up 9.9% – meanwhile occupies eighth position in the ranking of Hamburg’s top trading partners for container handling. Other positive throughput trends were reported for container traffic with Finland (up 4.3%), the USA (up 7.3%), the United Arab Emirates (up 14%) and the United Kingdom (up 13.1%). The main explanation for the 1.2% fall in total container throughput was the downturn in transshipment services with ports in Poland and Sweden that handled calls from a larger number of direct container services. The downturn amounted to 5.6% with Scandinavia and to 5.7% with Poland and the Baltic states. Bulk cargo throughput in Hamburg for the first half of 23.3 million tons – down 1.4% – saw different trends for imports and exports. On imports, the first-half total of 17.1 million tons represented an advance of 6.7%. On exports, total bulk cargo throughput at 6.2 million tons – down 18.3% – remained well below the previous year’s. Import growth was fuelled by a 25.6% rise in suction cargoes to 2.2 million tons and one of 20.8% to 5.5 million tons in the liquid cargo segment. Imports of oil products stood out with a 65.4% increase to 5.1 million tons. Apart from the closure of a large major refinery in Hamburg, this was caused by heavier inland demand that boosted imports of oil products. In all, the liquid cargo segment reported a 6.5% upturn to 7.2 million tons. Despite a 1.8% downturn in the first half of 2016, for the Port of Hamburg grab cargoes totaling 11.3 million tons remained the strongest segment in bulk cargo handling. Imports of coal and coke, down by 3.7% at 3.7 million tons and of ores, down by 6.2% at 5.0 million tons, both failed to reach the previous year’s strong totals. Weaker demand from power stations and the steel industry deserves mention here as the reason for lower throughput. There are various reasons for the trend in exports of suction and liquid cargoes. Along with harvest-related lower grain exports that were substantially – 34.4% – lower than in the previous year at 2.1 million tons, a downturn also occurred in exports of oil products. The lower throughput figure of 1.0 million tons – down 36.3% – can primarily be explained by the closure already mentioned of a Hamburg refinery and cessation of exports of oil products from there. On the export side, the grab cargo segment produced an upturn in first-half seaborne cargo throughput. Exports of building materials and scrap along with 1.4 million tons (up 2.5%) of fertilizers combined to produce growth in this segment of 5.8% to 1.9 million tons. Noncontainerized general cargo throughput, of oversize plant elements and RoRo cargo, for example, remained below the previous first half-year’s at 815,000 tons, down by 6.9%. On the import side, reaching 273,000 tons but 5.6% lower, growth in the form of wood, project cargo and citrus fruit imports failed to offset downturns for paper, metal and vehicles. On dispatches of conventional general cargoes, reportedly 7.6% lower at 542,000 tons, growth for iron, steel and wood failed to make up for lower vehicle exports.

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

32

Marcon International, Inc. Tug Boat Market Report – August 2016

Compared to an exceptionally good first half 2015 (when throughput increased by 6.8%), the Port of Rotterdam handled 3.0% less cargo in the first six months of 2016. The most pronounced decrease was in the dry bulk segment (-9.9%). Although the port handled a slightly lower volume of liquid bulk (-1.1%), the crude oil and oil products put through so far in 2016 is still at an historical high. Container throughput in TEU decreased by 2.3%. While Rotterdam’s offshore sector realized a number of large-scale projects, this industry has been negatively affected by lower investments in oil & gas extraction. Rotterdam’s market share in the Hamburg-Le Havre range increased from 38.0% in first quarter 2015 to 38.3% first quarter 2016. Overall, given the current difficult macro-economic circumstances, Rotterdam’s port business community is performing well compared to companies in competing ports. Turnover in first half 2016 equaled €336.9 million, a €2.0 million decrease compared to the first six months of 2015. Sea port tariffs decreased by €5.8 million, which is mainly attributable to reduced throughput figures. DP World Limited handled 31.4 million TEU across its global portfolio of container terminals during first half 2016, with gross container volumes growing by 2.5% on a reported basis and up 1.2% on a like-for-like basis. Growth in first half 2016 was largely driven by a strong performance from European and Indian subcontinent terminals. Conditions in Australia and Latin America remain challenging while the UAE handled 7.4 million TEU, down 6.0% year-on-year due to a reduction in lower-margin cargo. At a consolidated level, terminals handled 14.6 million TEU during the first half of 2016, a 1.6% improvement in performance on a reported basis and down 1.4% year-on-year on a like-for-like basis. Group Chairman and CEO Sultan Ahmed Bin Sulayem commented: “Despite challenging market conditions in the first half of the year, our portfolio continues to deliver growth. We expect the second half of 2016 to show an improved performance as our new developments in Rotterdam (Netherlands), Nhava Sheva (India), London Gateway (United Kingdom) and Yarimca (Turkey) deliver an increasing contribution….” Total cumulative container throughput through end July 2016 at the Port of Hong Kong was 10,788 thousand TEU, down 10.7% year-on-year from the same 2015 period. 2015’s total container throughput was 20,073 thousand TEU, down 9.7% from the previous year. Although figures are not available for total seaborne & river trade for July, total seaborne & river cargo throughput for May 2016 was down 5.7% from 22,824 thousand tonnes in May 2015 and for the first five months of this year total seaborne and river cargoes were 97,302 thousand tonnes, down 14.7% compared to the same period last year which tonnages were also down 5.5% from 2014. A statistic of interest to local harbor tug operators are ocean / river and cargo / passenger vessel arrivals. Total river & ocean cargo vessel arrivals through June were down 4.8% and passenger vessels down 2.3%. The Port of Singapore’s preliminary estimate of container throughput for January – August 2016 was 20,435,000 TEU, down 3.05% over the same period in 2015. Conventional general cargo was 17,227,400 tonnes down approx. 15.7% from 20,444,600 tonnes the first eight months of the respective years. Bulk oil cargoes were up - 145,095,700 tonnes compared to 132,430,800 tonnes handled over the same time periods. Between January and August 2016 there were 91,789 vessel arrivals of all types. 7,380 of arrivals were tugs and 6,247 barges. Port of Singapore Tug & Barge Arrivals (by number) Barges Tugs

2007 11,600 11,772

2008 14,047 13,736

2009 14,778 15,269

2010 11,972 12,551

2011 10,637 11,065

2012 10,668 11,102

2013 10,838 11,732

2014 10,186 11,101

2015 9,558 10,891

2015 6,565 7,459

2016 6,247 7,380

Right two columns 2015 / 2016 tug/barge arrivals Jan - July

Meanwhile, Singapore's bigger rival for top spot in the container port world, the Port of Shanghai, recently posted a 6.5% year-on-year increase in August to 3.31 million TEU. Shanghai port also saw improvement to its box volumes on a month-to-month comparison, rising 1.2% from 3.27 million TEU handled in July. From January to August 2016, the world's busiest container port achieved a total throughput of 24.47 million TEU, marginally higher than 24.25 million TEU posted in the same period last year.

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

33

Marcon International, Inc. Tug Boat Market Report – August 2016

Container volume at the Port of Long Beach in Southern California was down 7.7% in July compared to the same month in 2015, when harbor terminals handled a record amount of cargo. Dockworkers moved 637,091 TEUs last month. Imports totaled 325,608 TEUs, a 5.9% year-over-year decrease. Exports numbered 142,812 TEUs, a slight drop of 0.7%. Empties decreased to 168,671, 15.9% lower than July 2015, the Port’s strongest July on record. Due to continued market uncertainty and high inventory levels, the traditional holiday peak season is off to a slow start and several national forecasts have been revised downward to reflect this softness in cargo movement. Coming off a record year in 2015 – the third-highest in the Port’s history – volumes at the Port of Long Beach are down 1.9% through July. June 2016 liquid cargoes were 14,018,067 tonnes, up 4.22% compared to June 2015, but calendar year-to-date tonnage was down 0.57% for the first six months of the respective years. Dry bulk was off 3.16% for the month and 5.24% for the first half of the year……. The Port of Los Angeles handled a total of 687,891.8 TEUs last July, down 1.61% from July 2015. Containers throughput though for the calendar year-to-date were 4,821,467.7 TEU, up 4.75% compared to the same period in 2015. Strong import volumes through The Northwest Seaport Alliance in July suggest peak shipping season is just around the corner, with full imports jumping nearly 12% compared to July 2015. Cargo owners are forecasting a 3 to 5% increase in volume during peak season, when retailers build up inventories ahead of the holiday shopping season. The alliance recently launched a program to help extend gate hours at international terminals to reduce congestion and keep cargo flowing through the peak. Full export containers followed last month’s trend, surging more than 17% month over month on the strength of agricultural products. Total container volumes in July edged up 2% month over month. Through the first seven months of the year, total NWSA container volumes are flat, topping 2 million TEUs. Full import container volumes grew nearly 3% year-to-date to 760,923 TEU, while full exports marked a nearly 13% year-to-date gain to 542,258 TEUs. Domestic volumes remain sluggish, down 3% year to date to 448,357 TEUs due to the weakened Alaskan economy. In other cargo news, auto imports dipped nearly 3% year to date in July, petroleum cargoes fell 37.9%, log cargoes declined 48.2% and breakbulk cargo continues to struggle, down 33% due to the strong dollar and slowing economic growth in China. Of interest to those docking ships, vessel calls are down 0.1%. A total 3,041,287TEUs including both loads & empties at the Port Authority of New York & New Jersey were handled year-to-date by the end of June 2016, down 1.7% over the same 2015 period. Import loads were down 2.0% and export loads down 2.4%. Total number of empties handled were up almost 29%. June 2016’s container throughput was 530,575 TEUs, down 5.7% compared to June 2015, but up slightly over the 525,048 TEUs total handled the previous month. The Port of Vancouver, British Columbia, Canada total container traffic in June 2016 was 231,282 TEUs, down from 249,525 TEUs the previous month. 1,421,842 TEUs were handled during the first six months of the year, down 6.5% from first half 2015. Total tonnage of all commodities were 66,033,387 tonnes, down 5.9% from June 2015 with the greatest declines being coal (-14.5%); fertilizers (-15.8%); and machinery, vehicles, construction & materials (-11.7%). Imports were down 2.0% and exports down 6.8%. Foreign vessel calls were down 2.9% from 1,541 YTD June 2015 to 1,497 YTD this year……Prince Rupert reported 77,062.25 TEU in July 2016, up 30% compared to last year and YTD 444,116 TEUs down 2.0% compared to last year. Including containers, the grand total of cargoes handled were 1,609,477 tonnes in July, down 10% and YTD 10,959,735 tonnes, down 5.0%. Ocean Shipping Consultants developed a container traffic forecast for the west coast of Canada. This report considered emerging global economic trends and data and forecasted that container demand through the Ports of Vancouver and Prince Rupert would be 6.62 million TEUs by 2030 (base case), with 5.93 million TEUs and 7.53 million TEUs as the low and high case respectively. The 2016 Ocean Shipping Consultants forecast shows continued growth in container trade through the west coast of Canada at a compound annual growth rate of about 4% and reinforces need for planned increases of capacity to ship goods in containers through existing Deltaport and Centerm terminals in Vancouver and the Fairview Terminal in Prince Rupert. The forecast also confirms the proposed Roberts Bank Terminal 2 Project will be needed by the mid-2020s.

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

34

Marcon International, Inc. Tug Boat Market Report – August 2016

July 2016 reports from the twelve Federal Reserve Districts indicate that economic activity continued to expand at a modest pace across most regions from mid-May through the end of June. Labor market conditions remained stable as employment continued to grow modestly since the previous report and wage pressures remained modest to moderate. Price pressures remained slight. Consumer spending was generally positive but with some signs of softening. Manufacturing activity was mixed but generally improved across Districts. Real estate activity continued to strengthen and banks reported overall increases in loan demand. Agricultural activity was mixed but generally improving. The natural resources and energy sector has remained weak. The outlook was generally positive across broad segments of the economy including retail sales, manufacturing and real estate. Districts reporting on overall growth expect it to remain modest. Employment continued to grow modestly. Manufacturing activity was mixed since the previous report. Reporting Districts noted that the outlook remained positive but deteriorated. Activity declined in Richmond and Dallas, remained unchanged in Cleveland and San Francisco and increased in Boston and Atlanta, but at a slower pace than previously reported. Activity continued to increase at a modest pace in Chicago and Minneapolis. Several Districts reported a rebound following a decline in the previous reporting period, including New York, Philadelphia, St. Louis and Kansas City. Several Districts reported strength in aircraft and automobile manufacturing, although contacts in Cleveland noted that year-to-date production of automobiles is lower than at this time last year. Conditions in the primary metals industry were mixed: Contacts in Philadelphia and Dallas reported declines in new orders and weaker activity, while contacts in Cleveland and Chicago reported an increase in demand for steel. In Boston, Chicago and Minneapolis, manufacturers with ties to the energy sector reported weakness. Residential construction activity was mostly positive. Commercial construction activity grew modestly from the previous period. Construction picked up in New York and Cleveland continued to report project pipelines are strong. Agricultural activity was mixed but improving on average. Most reporting Districts noted higher prices for respective major crops at the time farmers were able to lock-in for the fall harvest, while Cleveland, Richmond and Chicago reported some crop prices have declined recently. Planting for key crops compared favorably with historical progress. Most reporting Districts noted that growing conditions are currently good, but Richmond reported flood damage in West Virginia and Atlanta reported varying degrees of drought. Energy firm downsizing or weak growth was reported by contacts in Cleveland, Atlanta, Kansas City and Dallas; however, the outlook for oil and gas is improving in Kansas City and Dallas. Dallas and Atlanta noted that credit availability is a major downside risk for the outlook. The number of operating drilling rigs declined in Kansas City, was unchanged in Cleveland and increased in Minneapolis and Dallas; natural gas extraction growth was flat in Richmond. A continued, severe decline in coal production was reported in St. Louis, while Richmond reported no change in production. Fourth District – Cleveland reported freight volume contracted over the period and on a year-overyear basis. Contacts attributed this to a slowdown in economic activity, especially in the industrial sector and to rapid changes in retail distribution. Weakness was seen in energy, fabricated metal products, machinery and food products. Segments experiencing strong volume were automotive and building materials and furnishings. We heard reports about overcapacity in the system and this is forcing some haulers to lower shipping rates and to reduce capital budgets. One contact noted that most locomotives scheduled for delivery this year will not be used, but kept in storage. The number of parked locomotives is reportedly the same as in 2008. Outlook by contacts is cautious and they expect little change in volume on balance during upcoming months. Richmond’s port activity remained generally strong since the previous Beige Book. Automobile imports continued to be robust. Container volume rose overall, but varied by location, increasing year over year each month at one port while similarly declining at another. Expectations are for a strong peak season in container imports of consumer goods beginning in August. Imports and exports of agricultural and construction machinery remained soft. Overall railroad traffic declined further in the Fifth District – Atlanta, due to continued weakness in shipments of energy-related and farm products and intermodal activity was down slightly. However, rail contacts cited year-over-year increases in movement of waste and nonferrous scrap metals and motor vehicles and parts. Port contacts reported increases in container traffic, bulk cargo, automotive goods and machinery since the previous report. Budget cuts, layoffs, loan restructuring, contract renegotiations and stock buybacks continued to impact the District's oil and gas sectors. Refineries and other petrochemical manufacturers continued to increase investment in plant expansions and new facilities, however, business contacts shared that some project timelines were protracted as a result of the energy sector slowdown. Gulf Coast crude oil storage capacity grew as storage tank and transport infrastructure development projects continued in response to rising crude supply. Natural gas supply remained at elevated levels as well, however, some signs of tightening were noted. Industrial electricity sales remained a bright spot in the refining and chemical segments.

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

35

Marcon International, Inc. Tug Boat Market Report – August 2016

The manufacturing sector in the Dallas region contracted over the reporting period, with contacts citing headwinds from uncertainty in global markets, slow global growth and low oil prices. Construction-related manufacturers saw stable demand, with a few contacts noting dips in activity due to recent rains. Dallas continued to outperform other large Texas metros, while construction backlogs in Houston were drying up. New orders declined in food, machinery, primary metals and transportation equipment manufacturing and there was little to no growth in high-tech manufacturing. Overall demand for fabricated metals fell over the reporting period but a few manufacturers noted an uptick in bookings. Refinery utilization rates remain healthy but margins have softened. Gulf Coast chemical producers were generally receiving better margins due to the wider spread between oil and natural gas prices, as chemicals domestically are produced with natural gas and have a cost advantage over oil-based production in other parts of the world. That said, the strong dollar remained a challenge. PVC demand increased in May to its highest level in three years, which may indicate a pickup in U.S. construction. Outlooks remain positive for 2016, although were soft compared to 2015. Cargo volumes were mixed over the reporting period. Chemical plant expansion along the Gulf Coast boosted truck cargo volumes, while declines in courier and air cargo were reported. Overall rail cargo dipped as well; however, grain shipments rose strongly, leading to increased optimism in outlooks. Demand for oilfield services remained depressed even as overall business activity improved and the rig count ticked up over the reporting period. Defaults, bankruptcies and mergers and acquisitions continued to climb. Firms were increasingly confident that oil prices have found a bottom and that market fundamentals will tighten in the second half of the year. However, firms would like to see these higher prices for a while longer before making any changes to existing business plans. Contacts say the worst is likely over, but there is little hope for substantial growth in activity or employment before 2017. Real gross domestic product increased at an annual rate of 1.1% in the second quarter of 2016, according to the "second" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.8%. This GDP estimate is based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was 1.2%. With this second estimate for the second quarter, the general picture of economic growth remains the same; revisions to the components of GDP are small. The acceleration in real GDP in the second quarter primarily reflected an acceleration in personal consumption expenditures (PCE), a smaller decrease in nonresidential fixed investment, an upturn in exports and a smaller decrease in federal government spending. These were partly offset by a larger decrease in private inventory investment and downturns in state and local government spending, in residential fixed investment and in imports. Profits from current production (corporate profits with inventory valuation adjustment and capital consumption adjustment [CCAdj]) decreased $24.1 billion in the second quarter, in contrast to an increase of $66.0 billion in the first. Profits of domestic financial corporations increased $7.2 billion in the second quarter, compared with an increase of $8.1 billion in the first. Profits of domestic nonfinancial corporations decreased $58.2 billion, in contrast to an increase of $84.8 billion. Personal income increased 0.2% in June, following 0.2%, 0.4% and 0.3% increases respectively in May, April and March. Exports of goods (excluding services) increased $3.4 billion to $124.1 billion in July. Imports of goods decreased $1.9 billion to $184.4 billion in July. U.S. Trade in Goods in Millions of Dollars Total Balance of Payments Basis

Period

2014

2015

2016

Exports

Imports

Jan - Dec

$ 1,633,320

$ 2,385,489

Jan - July

$ 950,987

$ 1,389,575

January

$ 134,024

$ 194,558

July

$ 137,921

$ 198,960

Jan - Dec

$ 1,510,303

$ 2,272,868

Jan - July

$ 895,509

$ 1,341,363

January

$ 129,204

$ 193,537

July

$ 127,638

$ 189,099

Jan - July

$ 838,403 $ 117,240 $ 124,052

$ 1,271,774 $ 180,959 $ 184,392

January July

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36

Marcon International, Inc. Tug Boat Market Report – August 2016

The Freight Transportation Services Index (TSI), based on the amount of freight carried by the for-hire transportation industry, rose 0.6% in June from May, rising for the third consecutive month, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics’ (BTS). The June 2016 index level (122.3) was 29.1% above the April 2009 low during the most recent recession. The level of freight shipments in June measured by the Freight TSI (122.3) was 1.1% below the all-time high level of 123.7 in December 2014. BTS’ TSI records begin in 2000. The May index was revised to 121.6 from 121.8 in last month’s release. The Freight TSI measures the 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 the output of the forhire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight. The June Freight TSI increase of 0.6% from May was broad in terms of mode. All freight modes grew except for water and rail intermodal which declined after significant rises in May. The June increase was driven by growth in in mining (including oil & gas well drilling and servicing), utility and manufacturing sectors of the economy. The Federal Reserve Board Industrial Production rose 0.6% in June. Housing starts were 4.8% above the May level and employment grew by 287,000 jobs. The second quarter TSI increase of 2.2% from the first quarter matched trends in the larger economy. GDP growth increased at the moderate annual pace of 1.2% in the second quarter although Industrial Production declined during the quarter. All transportation modes except air carried less cross-border freight by value in June 2016 compared to June 2015 resulting in a 6.4% decrease to $92.7 billion in the total current dollar value of freight moved. June was the 18th consecutive month that the total value of U.S. freight with North American Free Trade Agreement (NAFTA) partners Canada and Mexico declined from the same month of the previous year, according to the TransBorder Freight Data released recently by the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS). The value of commodities moving by air increased 5.0%, mainly due to a 35.6% increase in the value of imports of pearls, precious stones and metals. The value of freight carried on other modes declined: rail 4.4%; truck 5.8%; pipeline 15.6%; and vessels showing the greatest decline at 19.7%. A drop in the price of crude oil played a key role in the large declines in the dollar value of products shipped by vessel and pipeline. Crude oil (a component of mineral fuels) comprises a large share of the commodities carried by these modes. Mineral fuels, a commodity category that includes crude oil and coal, accounted for 9.4% of total value of U.S.-NAFTA trade in June. Trucks carried 65.4 percent of U.S.-NAFTA freight and continued to be the most heavily utilized mode for moving goods to and from both U.S.-NAFTA partners. Trucks accounted for $31.2 billion of the $49.2 billion of imports (63.5%) and $29.4 billion of the $43.5 billion of exports (67.5%) Rail remained the second largest mode by value, moving 15.2% of all U.S.-NAFTA freight, followed by vessel, 6.0%; pipeline, 4.5%; and air, 4.0%. The surface transportation modes of truck, rail and pipeline carried 85.1% of the total value of U.S.-NAFTA freight flows. Value of Monthly U.S.-NAFTA Freight Flows by Mode of Transportation (millions of current dollars) June 2015 June 2016

Mode All Surface Modes

Vessels

Imports Exports Total Imports Exports Total

46,853 37,120 83,973 3,893 3,001 6,894

Change June 2015-2016

43,173 35,646 78,819 2,720 2,813 5,533

-7.9 -4.0 -6.1 -30.1 -6.3 -19.7

Source: Bureau of Transportation Statistics, TransBorder Freight Data

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37

Marcon International, Inc. Tug Boat Market Report – August 2016

July’s Cass Freight Index confirmed that overall shipment volumes (and pricing) are persistently weak, with increased levels of volatility as all levels of the supply chain (manufacturing, wholesale, retail) continue to try and work down inventory levels. That said, there have been a few areas of growth, mostly related to e-commerce, with lower levels of expansion being experienced in transit modes serving the auto and housing / construction industries. All of this added up to slightly lower shipment volume in July, the seventeenth straight month of year-over-year decline. The U.S. economy continues to be in a state of transition. After the explosion in fracking activity (pun intended) drove the first industrial-led recovery (2009 – 2014) in the U.S., since 1961, we have patiently waiting for the consumer to take the baton of leadership in economic growth. Fracking in the U.S. has been so successful that it drove the worldwide price of crude down and positioned the U.S. globally as the world’s single largest oil producer. It also drove the North America price of natural gas to record lows not seen since the 1999 El Nino-induced levels. With the dramatic drop in crude and natural gas prices, the financial incentive to drill and frack additional wells also dropped and the U.S. slipped into an industrial recession in March 2015. Nearly all of us practicing the dismal science of economics began predicting in the Spring of 2015 that as the price of oil and natural gas fell, the consumer would take the increase in disposable income – created by the decreases in the daily commute and heating and cooling their house – and spend it. Why? Because since the end of World War II, the greatest predictor of consumer spending, expansion or growth, was the expansion or growth of consumer disposable income. But instead of following the playbook, most U.S. consumers have been choosing to pay down debt and increase their savings rate. Simply put, the consumer has not yet picked up where the industrial economy left off. Inventories have now contracted from GDP for five consecutive quarters to the tune of ~3% of GDP. This is the longest stretch outside of a recession since 1956-7 and the largest in magnitude since 1995. We expect destocking to continue into Q3 in retail based on the Natural Retail Federation’s Port Tracker survey. Cass Information Systems remains concerned about elevated levels of cars on dealer lots and Cass acknowledges continued efforts to streamline finished inventory in most machinery sectors. Overall inventory levels remain elevated compared to sames, but with further improvement on many ratios in the second half (which Cass expects) and unless demand takes another step down, Cass believes the persistent drag of de-stocking should progressively lessen as we enter 2017. What specifically drove July’s decline in volume? The Association of American Railroads reported that July YOY (year-over-year) overall traffic for U.S. Class 1 railroads declined 6.1%, as intermodal units fell 5.4% and commodity carloads originated fell 6.9%. Rails have seen persistent weakness, with overall volumes being negative 77 out of the last 78 weeks. Cass Information Systems continues to assert the trucking industry provides one of the more reliable reads on the pulse of the domestic economy, as it gives us clues about the health of both the manufacturing and retail sectors. Cass notes that as the first industrial-led recovery (2009 – 2014) since 1961 came to an end and the shift from “brick and mortar” retailing to e-commerce / omni-channel continues, we are becoming more focused on the number of loads moved by truck and less focused on the number of tons moved by truck. Tonnage itself appears to be growing (three-month moving average +2.75% not seasonally adjusted, +3.24% seasonally adjusted). Counter to this, truck loads have contracted on a YoY basis three out of six months in 2016, with June posting the worst comp since December 2012 (-4.4%). No matter how it is measured, the data coming out of the trucking industry has been both volatile and uninspiring.

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38

Marcon International, Inc. Tug Boat Market Report – August 2016

Freight payments declined 5.1% in July on a YoY basis. This ongoing weakness, also in its seventeenth straight month of decline, is being driven by a number of factors. In part, this weakness is driven by excess of capacity in most modes: trucking, rail, air freight, barge, ocean container and bulk. The weakness is also driven in part by the ongoing decline in diesel and jet fuel and corresponding fuel surcharges that influence pricing realized by shippers. Although at first blush it appears that in most modes the gap between spot pricing and contract pricing appears to be closing slightly, this is more a function of slight declines in contract pricing than a function of improvements in spot pricing. Cass sees little reason to predict a change in course or material strength in either contract or spot rates for most modes of transportation. Exceptions to this do remain in the parcel marketplace and forms of expedited transit supporting e-commerce. Expect a “flattish” second half – ex auto industrial trends did start to flatten out in the second quarter (improving to up 0.2% in Q2 from down 1.2% in Q1). Cass sees this largely as a return to more normal seasonal production patterns than anything else. Overall industrial production continues to track between 0 and +1% thanks to the lift from autos and nondurables (good consumption picked up in Q2 as seen in GDP data). However, Cass is concerned that elevated inventories on dealer lots, along with slowing sales, will lead to U.S. auto production to be flat YoY, down from their prior hopes of a modest recovery into the up 1+% range. On the consumer side of the equation, Cass does see some signs of hope – especially for those retailers with a strong e-tailing or omni-channel offering. With the price of oil and natural gas remaining low, Cass sees little reason to predict a resurgence in fracking or the many types of industrial activity that fracking drives. Obviously, this would also mean that the consumer would continue to enjoy improved disposable income. As Cass has pointed out, the U.S. consumer has been saving and paying down debt with this disposable income for over six quarters. By this holiday season, Cass expects them to begin to spend at least part of their income. If not, the risk of an overall recession grows. That said, there is a bit of irony in Cass’ prediction of a possible recession. The longer the consumer saves and pays down debt, the more likely it is that the U.S. falls into a recession. But, the longer the consumer saves and pays down debt, the shorter and more mild the recession will be since there will be less excess to clean-up. Stay tuned. Since demand for rail service arises as a result of demand elsewhere in the economy for products that railroads haul, rail traffic is a useful gauge of broader economic activity, both for specific industries and for the economy as a whole. Regretfully that useful gauge is lately in most cases pointing down, down and down. Carload traffic in July totaled 1,025,367 carloads, down 8.8% or 99,530 carloads from July 2015. U.S. railroads also originated 1,002,401 containers and trailers in July 2016, down 6.9% or 74,482 units from the same month last year. For July 2016, combined U.S. carload and intermodal originations were 2,027,768, down 7.9% or 174,012 carloads and intermodal units from July 2015. In July 2016, four of the 20 carload commodity categories tracked by the AAR each month saw carload gains compared with July 2015. These included: grain, up 15.3% or 12,641 carloads; waste and nonferrous scrap, up 25.9% or 3,400 carloads; and miscellaneous carloads, up 12.9% or 2,880 carloads. Commodities that saw declines in July 2016 from July 2015 included: coal, down 17.5% or 70,479 carloads; petroleum and petroleum products, down 22% or 11,926 carloads; and crushed stone, gravel and sand, down 11.6% or 11,765 carloads. Total U.S. carload traffic for the first 30 weeks of 2016 was 7,320,583 carloads, down 11.9% or 986,109 carloads, while intermodal containers and trailers were 7,715,404 units, down 2.8% or 221,538 containers and trailers when compared to the same period in 2015. For the first seven months of 2016, total rail traffic volume in the United States was 15,035,987 carloads and intermodal units, down 7.4% or 1,207,647 carloads and intermodal units from the same point last year. 39

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Marcon International, Inc. Tug Boat Market Report – August 2016

Total rail carloads for the week ending August 20 were 270,464 carloads, down 6.4% compared with the same week in 2015, while U.S. weekly intermodal volume was 261,020 containers and trailers, down 6.4% compared to 2015. Four of the 10 carload commodity groups posted an increase compared with the same week in 2015. They included grain, up 36.5% to 24,944 carloads; motor vehicles and parts, up 4.9% to 18,974 carloads; and miscellaneous carloads, up 4.8% to 10,558 carloads. Commodity groups that posted decreases compared with the same week in 2015 included petroleum and petroleum products, down 24.2% to 10,933 carloads; coal, down 16.6% to 89,599 carloads; and forest products, down 14.3% to 9,869 carloads. For the first 33 weeks of 2016, U.S. railroads reported cumulative volume of 8,126,642 carloads, down 11.4% from the same point last year; and 8,506,957 intermodal units, down 3% from last year. Total combined U.S. traffic for the first 33 weeks of 2016 was 16,633,599 carloads and intermodal units, a decrease of 7.3% compared to last year. The AAR also reported U.S. Class I railroads originated 56,454 carloads of crude oil in the second quarter of 2016, down 6,807 carloads or 10.8% from the first quarter of 2016 and down 54,614 carloads or 49.2% from the second quarter of 2015. "Rail traffic continues to reflect the uncertainty rail customers face in a challenging economic environment," said AAR Senior VP of Policy and Economics John T. Gray, who noted rail intermodal remained off from 2015's record traffic level while carloads showed a small improvement in coal and a bit of an improvement in grain. "For the present, railroads are focused on providing safe and efficient service to their customers, while watching to see if the increase in consumer spending in the second quarter will lead to additional Gross Domestic Product growth in the second half of the year." Trucking serves as a barometer of the U.S. economy, representing 68.8% of tonnage carried by all modes of domestic freight transportation. American Trucking Association’s advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 2.1% in July, following a revised 1.6% decline during June. In July, the index equaled 134.3 (2000=100), down from 137.1 in June. The all-time high was 144 in February. Compared with July 2015, the SA index rose just 0.3%, the smallest year-over-year gain in 2016. In June, the yearover-year increase was 2.1%.Year-to-date, compared with the same period in 2015, tonnage was up 3.2%. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 138.2 in July, which was 2.7% below the previous month (142). “On a monthly basis, tonnage has decreased in four of the last five months and stood at the lowest level since October during July,” said ATA Chief Economist Bob Costello. “This prolonged softness is consistent with a supply chain that is clearing out elevated inventories. Looking ahead, expect a softer and uneven truck freight environment until the inventory correction is complete. With moderate economic growth expected, truck freight will improve the further along the inventory cycle we progress,” he said.

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40

Marcon International, Inc. Tug Boat Market Report – August 2016

The Lake Carriers’ Association represents U.S.-flag vessel operators on the Great Lakes. The Association's 14 member companies operate 56 U.S.-flag self-propelled vessels and tug/barge units (“lakers”) ranging in length from 494 (150.6m) to the 1,013.5’ x 105’ x 56.0’ depth (309.1m x 32.0m x 17.07m) “Paul R. Tregurtha” (photo left) with a 68,000 ton mid-summer capacity at 30.0’ (9.17m) and owned and operated by the Interlake Steamship Co. These vessels can carry more than 100 million tons of cargo in a year. Iron ore, limestone and coal are the primary commodities carried by LCA members. Other cargos include cement, salt, sand and grain. The vast majority of cargos carried by U.S.-flag lakers move between U.S. ports, in what is commonly referred to as the Jones Act trades. Shipments of limestone on the Great Lakes totaled 3,348,040 tons in July, a decrease of 18% compared to a year ago. July’s loadings were also 14% below the month’s 5-year average. Loadings out of U.S. quarries totaled 2.6 million tons, a decrease of 26% compared to a year ago. Shipments from Canadian quarries totaled 760,000 tons, an increase of 35% compared to a year ago. Year-to-date the Lakes limestone trade stands at 13.1 million tons, a decrease of 6%. Loadings out of Michigan and Ohio quarries total 10.4 million tons, a decrease of 11%. Shipments from Ontario quarries total 2.7 million tons, an increase of 19%. Shipments of iron ore totaled 5.6 million tons in July, a decrease of 15% compared to a year ago. Shipments also trailed the month’s 5-year average by more than 18%. Shipments from U.S. ports totaled 4.95 million tons in July, a decrease of nearly 14% compared to a year ago. Loadings at Canadian terminals dipped even more – 23% - to 643,000 tons. Year-to-date the iron ore trade stands at 26.8 million tons, a decrease of 3% compared to 2015. Year-over-year, loadings at U.S. ports are down by 113,000 tons, but shipments from Canadian ports in the St. Lawrence Seaway slipped even more, 21%, or 743,000 tons. Total U.S. flag cargo movement on the Great Lakes was down 6.4% in June compared to the previous year with the June float also 5% below the month’s five year average. Coal shipments to power plants and steel mills were off nearly 28%. For second quarter 2016, Canada’s Algoma Central Corporation’s revenues of Can $96.202m compared to Can $125.336m for the same period in 2015. The decrease in revenue occurred mainly in Domestic DryBulk and was due to reduced customer demand in all major commodities and the impact of fuel costs that are passed on directly to customers as part of the freight rate. Revenues in the Product Tanker segment decreased due primarily to diminished volumes on the East Coast and lower fuel prices. Partially offsetting these decreases was an improvement in the Ocean Shipping segment revenue due to more revenue days resulting from the addition of two vessels to the fleet in early January. Revenues for the six months ended June 30, 2016 of $136.679m were $32.566m lower than revenues for the same period in the prior year. Domestic Dry-Bulk revenues decreased by $38.592m, Product Tanker segment experienced a decrease of Can $13.602m and the Ocean Shipping segment had an increase of Can $19.628m. Algoma Central Corporation operates the largest Canadian flag fleet of dry and liquid bulk carriers on the Great Lakes - St. Lawrence Waterway, including 13 self-unloading dry-bulk carriers, six gearless dry bulk carriers and six product tankers. Algoma announced contracts for seven new Equinox Class domestic dry-bulk vessels as part of its on-going fleet renewal program. Algoma also owns four ocean dry-bulk vessels operating in international markets and has a 50% in two other ocean dry-bulk vessels.

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41

Marcon International, Inc. Tug Boat Market Report – August 2016

Rand Logistics of Jersey City, New Jersey, a leading provider of bulk freight th shipping services through the Great Lakes region reported on 16 August their new income before a one-time restructuring and impairment charge on a retired vessel of US$ 2.4 million and US$ 1.9 million, respectively, was US$ 1.3 million. This compares to a net income of US$ 2.6 million in the prior year period. Freight and other related revenue generated from Rand Logistics operated vessels (excluding fuel & other surcharges) decreased US$ 5.9 million, or 15.0% to US$ 33.1 million compared to US$ 39.0 million during the prior year period. (Photo right: “Manitoba” sold to current owner through auspices of Marcon International). “Our operating performance in our first quarter of fiscal 2017 reflected a choppy demand environment which led to the slow start of the sailing season,” commented Ed Levy, President and CEO of Rand. “Marine freight and vessel margin per day for the first fiscal quarter of 2017 increased by 7.7% and 14.1%, respectively versus the same quarter last year. We sailed two less vessels this quarter compared to the same quarter last year, yet our pro forma EBITDA was comparable after adjusting for certain onetime items. This speaks to a more disciplined operating approach which is yielding an increase in the percentage of time that our vessels are operating in revenue loaded condition. We also continue to improve the operating reliability of our fleet. Specifically, vessel delays as a percent of total sailing days decreased from 8.9% in the quarter ended June 30, 2015 to 6.3% in our most recently completed quarter.” Mr. Levy added, “We are encouraged by business conditions as we look out to the remainder of the 2016 sailing season for the primary commodities that we carry and are reaffirming our expectation to sail at least 3,405 days this fiscal year. We expect to reintroduce one of our two laid up bulk carriers in the next 30 days for the remainder of the sailing season. In addition, since the beginning of the second quarter, we have been awarded new business that previously had not been factored into our fiscal year 2017 expectations……” (Photo left: the 610’ x 78’ x 51’ depth (189.0m x 23.8m x 15.5m) 25,891dwt integrated barge “Ashtabula” with 7,200HP tug “Defiance”.) St. Lawrence Seaway year-to-date total traffic in July 2016 was 13,213 thousand tonnes, down 11.17% from the same period in 2015. All of the major commodity groups were down, with iron ore being the most extreme case down 2,064,000 tonnes or 28.06% followed by dry bulk down 13.41%. The only exception to the decline in cargoes carried was liquid bulk which was up 373,000 tonnes or 27.5%. Total vessel transits also followed this trend, by being down by 52 transits, or 3.23% over the same time period. The bi-national Great Lakes/Seaway System is a 3,700km “marine highway” that extends from the Atlantic Ocean to the Great Lakes. Over 160 million tonnes of cargo can travel on the waterway on an annual basis, supporting $35 billion in economic activity, 227,000 jobs and $14.6 billion in wages. Beginning in Montreal and extending to points west, the Seaway’s 15 locks (13 Canadian and 2 American) enable ships to climb a total of 168 meters from “sea level” up to Lake Erie and then on into Lake Superior through the Sault Ste. Marine (“Soo”) commercial locks managed by the U.S. Army Corps of Engineers. The 2015 navigation season finished with a little over 36 million tonnes of cargo, reflecting the difficult economic conditions experienced worldwide during 2015. With grain volumes well above the five-year average, the Seaway once again proved to be a vital waterway. Coal experienced a sharp decline, accounting for most of the decrease in tonnage. Over the last ten years, the Seaway has been under considerable pressure due to sweeping changes in the iron ore and steel industries, coupled with a general move away from coal.

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42

Marcon International, Inc. Tug Boat Market Report – August 2016

According to Moore Stephens, shipping confidence, notably on the part of charterers and managers, improved for the second successive quarter in the three months ending August 2016. In August 2016, the average confidence level expressed by respondents was 5.4 on a scale of 1 (low) to 10 (high). This is an improvement on the 5.1 recorded in May 2016 and the highest rating for the past nine months of the survey, which was launched in May 2008 with a confidence rating of 6.8. Although confidence on the part of owners was down this time from 5.7 to 5.3, charterers (up from 4.0 to 4.8), managers (up from 5.1 to 6.0) and brokers (up from 4.3 to 4.5) were all more optimistic than in May 2016. Geographically, confidence was up in Asia, from 5.2 to 5.5 and in North America from 5.0 to 5.8, with sentiment in Europe unchanged at 5.2. Concerns about the global economy were uppermost in the minds of a number of respondents, one of whom neatly encapsulated a number of the main issues currently impacting the shipping industry by noting, “Brexit, Trump, supply overhang, consolidation, demolition, bankruptcies and the low risk appetite of banks for shipping and shipping stocks seem to be the main topics to follow for the next 12 months or so. We would be pleasantly surprised if this were to change.” The likelihood of respondents making a major investment or significant development over the next 12 months was unchanged on the previous survey, with a rating of 4.9 on a scale of 1 to 10. The confidence of charterers in this respect was up significantly, from 4.1 to 5.0, while brokers also recorded a small increase, from 3.5 to 4.1. Owners and managers, however, were less confident in this regard than they were three months ago, dropping from 5.7 to 4.8 and from 5.4 to 5.3 respectively. One respondent said, “Massive investment, mainly from inexperienced funds and private entrepreneurs, has resulted in an oversupply of funding in some trades.” Richard Greiner, Partner, Shipping & Transport, says, “Given the challenges currently facing the industry, the continuing uncertainty surrounding the worldwide economy and the ongoing level of global geopolitical instability, it is encouraging to see an increase in shipping confidence for the second successive quarter. Confidence is now at its highest level for nine months, which says much for the resilience of the shipping industry. Concern persists about too much tonnage and not enough recycling. Restoring the correct balance to tonnage supply and demand is a long-term undertaking, the complexities and diverse nature of which are arguably well captured by the respondent who noted, ‘We have divided interests. For our customers, we hope that nobody orders any vessels for the next 12 months. For us, we hope that people do, because we need newbuildings.’ The maintenance of sensible levels of competition is also a prerequisite for a healthy and profitable shipping industry. Since the survey was launched in 2008, respondents have consistently identified competition as one of the main factors likely to influence their performance most significantly. All trade sectors thrive on responsible competition, which works as an incentive to progress and profitability. But irresponsible competition can have the opposite effect, witness the respondent who referred to ‘those who focus on how to trick, treat and corrupt under the broad term “competition”.’” Demand trends, competition and tonnage supply featured again as the top three factors cited by respondents as those likely to influence performance most significantly over the coming twelve months – and this is probably equally true for the towing and offshore petroleum markets. Demand trends, which were up by two percentage points to 26%, remained in first place, with competition (down by three percentage points to 20%) in second. Tonnage supply, unchanged at 16%, occupied joint-third spot with finance costs, which were up by one percentage point. Operating costs, up by one percentage point to 10%, featured in fifth place, ahead of fuel costs (5%) and regulation (4%).

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43

Marcon International, Inc. Tug Boat Market Report – August 2016

Under U.S. law, vessel operators must report domestic waterborne commercial movements to the U.S. Army Corps of Engineers. July 2016’s (bold red line) 47.3 million short tons of all commodities carried on internal U.S. Waterways was the lowest tonnage carried this year since February (traditionally a low month) and the lowest tonnage carried during July since 2012. 14.0 million tons of petroleum were carried, an improvement over nine of the previous twelve months, but down from July 2015 and 2014 and matching the 14.0 million tons carried in July 2013. The 4.0 million tons of chemicals moves were up slightly over the previous month, but generally flat or lower than the tonnages transported over the last twelve months. Coal and coke has been bouncing around the 11 million ton mark for the last nine months and July’s Farm & Food Products carried on internal U.S. waterways at 6.9 million tons was at its highest since January 2016’s 7.0 million tons and the highest July tonnage carried over at the last four years. We were lucky in that while catastrophic flooding has devastated parts of Louisiana, there have not been significant disruptions to grain transportation in the Baton Rouge – New Orleans area. According to the U.S. Department of th Agriculture, Baton Rouge experienced 19.24 inches (48.9cm) of rain from 10 – th th 13 August, with more than half (11.24 inches / 25.5cm) falling on 12 August. The rain-induced flooding closed Kansas City Southern rail service between Baton Rouge and Reserve, Louisiana; however cargo was rerouted and customers experienced only minimal delays. While the Mississippi River has not experienced flooding, the U.S. Coast Guard reports that the nearby Bayou Sorrel Waterway, Lower Grand River, Port Allen Lock and Bayou Sorrel Lock are all closed to all navigation. These facilities primarily transport petroleum and chemical products. Barge and rail th deliveries of grain to the region continue to be well above average for the past several weeks. For the week ending 20 August, barge grain movements totaled 1,148,004 tons, 9% lower than the previous week and up 75% from the same period last year. 729 grain barges moved down river, down 10% from the earlier week and 844 grain barges were nd unloaded in New Orleans, up 30%. During the week ending 22 August, diesel fuel prices increased 6 cents from the previous week at $2.37 per gallon, down 19 cents from the same week in 2015. During second quarter 2015, transportation costs for shipping corn and soybeans from Minneapolis, Minnesota to Japan through Gulf and Pacific Northwest port regions were mostly down from the same time last year. While this was good for the farmers and buyers, it was due primarily to a decrease in barge, rail and ocean rates. Year-to-year ocean rates continued to fall in the Pacific Northwest and U.S. Gulf because of slower shipping activity and excess vessel supply – sound familiar? Currently, second quarter transportation costs for each route are below the 3-year averages. th

For the week ending 18 August, 39 ocean-going grain vessels were loaded in the U.S. Gulf, 11% less than the same period last year. Eighty-seven vessels are expected to be loaded within the following 10 days, 43% more than the same period last year. For the week rd ending 23 August, the Illinois River Barge Freight Rate was the same as the previous week, 15% higher than last year and 3% higher than the year before. Southbound weekly barge freight rates were mixed over the same period last year, anywhere from 8 – 23% up (Twin Cities, Mid-Mississippi, Lower Illinois River, Cincinnati and Lower Ohio) and down 11% and 14% in St. Louis and Cairo-Memphis respectively.

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

44

Marcon International, Inc. Tug Boat Market Report – August 2016

If you have listened to National Public Radio lately, you will have heard CSX’s “when trains move forward, so does the rest of the economy” and CSX is “How tomorrow moves”. You may have also heard BNSF’s radio spots on safety and moving cargoes. When was the last time you heard about the maritime industry on the radio or television, except when the news was reporting an oil spill or other maritime accident somewhere in the world? Have you read the Association of American Railroads “2016 State of the Industry Reports” covering Safety & Innovation and defining freight rail’s Economic Impact on America’s economy? According to the report, in 2014 alone, major U.S. railroads supported approx. 1.5 million jobs, nearly US$ 275 billion in annual economic activity, approx. US$ 88 billion in wages and nearly $33 billion in tax revenues. “Railroads make consistently high capital investments and the results are impressive: highpaying jobs within the industry, additional jobs that are supported by the industry, the connection of a wide swath of industries and consumers to the global market and the growth of local communities because of the infusion of sizeable funds into the market and government budgets. These benefits come at a savings of billions of dollars each year for taxpayers because America’s freight railroads operate overwhelmingly on infrastructure that they own, build, maintain and pay for themselves”. I am definitely not anti-rail. Rail can obviously serve many regions that obviously tugs and barges cannot – but think about re-reading the previous quote and as a matter of fact try reading the entire “2016 State of the Industry Reports”, substituting “railroads” with “the maritime industry”. I also recommend you read the section on railroad deregulation, the Staggers Act and an explanation of what it takes to make a 140,000 mile, nationwide network the best in the world – “including targeted investments in infrastructure and equipment made possible by smart public policies” and compare that to the maritime industry. America’s Marine Highway System consists of over 29,000 nautical miles of navigable waterways including rivers, bays, channels, the Great Lakes, the Saint Lawrence Seaway System, coastal and open-ocean routes. The America’s Marine Highway Program was established by Section 1121 of the Energy Independence and Security Act of 2007 to reduce landside congestion through the designation of Marine Highway Routes. Section 405 of the Coast Guard and Maritime Transportation Act of 2012 further expanded the scope of the program beyond reducing landside congestion to efforts that generate public benefits by increasing the utilization or efficiency of domestic freight or passenger transportation on Marine Highway Routes between U.S. ports. Click on the U.S. Maritime Administration’s website for Marine Highway News. The most recent article posted was on th 11 August 2010. In April 2011, “America’s Marine Highway Report to Congress” was published. It is now 2016 and there has been no reduction in landside congestion. Reportedly 45% of freight is moved by water within the EU compared to about 3% in the United States. The end of April 2016, Marad did announce the availability of $5 million in Federal funding to expand the marine highway system by creating new or expanding existing services along designed Marine Highway Routes, but updating their Marine Highway News was apparently not in the budget and in any case, US$ 5 million to support any realistic expansion is almost a “why-bother” token. Four industries - air, automotive, rail and sea transport -- make up the bulk of the U.S. transportation sector; the size of their political contributions comes in that order – air, auto, rail and lastly sea transport. Many of the sector's top donors are delivery service organizations -- UPS and FedEx are among the top four contributors -- and car dealerships also count for a significant portion of the funds. The transportation sector is heavily involved in lobbying at the federal level and expenditures have eclipsed $240 million each year from 2008 to 2012. FedEx and the Association of American Railroads, two of the sector's most active lobbying clients, have attempted to influence legislation relating to transportation safety and security, travel taxes and the authorization of federal funds for roads and railways.

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

45

Marcon International, Inc. Tug Boat Market Report – August 2016

The railroad industry includes railroad companies, manufacturers of railroad equipment and companies that service railroads. In the 2014 campaign cycle, the industry contributed over $9 million to federal candidates, political parties and outside spending groups, its highest total ever. Almost all of that went to candidates and parties. Top contributors include one of the largest freight railroad networks, BNSF Railway; international transportation company CSX Corp; and premier railroad operator Union Pacific Corp. Each spent about $2 million in 2014 alone. The industry also digs deep to ensure that its interests are represented in Washington, spending over $200 million on lobbying the federal government over the last five years combined. There is nothing wrong with this – most Congressmen and Senators are unaware of all the needs and the benefits of the railroad industry - and fewer are familiar with all the needs and benefits of the maritime industry. The biggest transportation industry spender in terms of federal lobbying has consistently been the Association of American Railroads -- an industry trade group whose members include all the major freight railroad companies and Amtrak -- with nearly $42 million in expenditures over the last five years. Of paramount importance to the industry is encouraging increased federal investment in rail infrastructure and expanded freight and passenger rail. Rail interests scored a major political victory in 2009 when President Obama announced his support for a new highspeed rail system, though progress since then has been slow. Other issues they have lobbied on include taxes, the environment, safety regulations, energy policy and homeland security. The maritime or sea transport industry consists of all companies involved in shipping of goods over bodies of water, both domestically and internationally. The industry also includes entities that sustain shipping, such as those offering boat-building, repair, operation and rental services. This industry also includes cruise lines, as well as port authorities. Industry contributions to federal candidates, political parties and outside spending groups reached $5.9 million in 2014, its highest total ever during a nonpresidential election cycle. Top contributors include Bollinger Shipyards, an American constructor of ships; Kirby Corp, the largest tank barge operator in the United States; and Carnival Corp, the world's largest cruise ship operator. The organization that spent the most on lobbying in 2014 was the Cruise Lines International Association, which represents 26 member cruise lines worldwide. This group began lobbying in 2006, spending $120,000. Just three years later, in 2009, its expenditures totaled $2.2 million. In 2014, the CLIA spent $1.4 million on lobbying the federal government. Specific issues of interest to the industry include customs and border protection, international port security, taxes, marine wildlife protection, sanitation programs, trade and energy. Top Industries Lobbying on Transportation Industry Air Transport Automotive Railroads Sea Transport Misc. Transport Trucking

2016 $44,155,716 $31,075,407 $13,228,272 $11,917,679 $9,000,763

2015 2014 $81,722,628 $81,355,500 $58,869,623 $54,706,687 $29,305,979 $34,316,637 $24,260,511 $23,145,002 $19,810,478 $18,044,143 $9,220,480 $10,012,727 Center for Responsive Politics

Money to Congress – All Candidates Industry Air Transport Automotive Railroads Sea Transport Cruise ships & lines Trucking

2016 $10,960,874 $11,576,205 $7,342,171 $2,987,292 $541,499 $3,632,472

2014 $11,140,622 $14,708,511 $7,797,439 $4,438,780 $470,396 $4,636,316

2012 $12,058,502 $18,758,460 $6,856,389 $4,438,780 $516,477 $5,841,738

There are two key differences between the lobbying efforts by railroads and the maritime industry – the level in the amount of contributions and fragmentation in interests. Looking at the top contributors for this 2015 – 2016 election cycle, there is only one maritime interest in the top 10 contributors. Three of the 10 are BNSF Rail, Union Pacific Corp. and CSX Corp.; two are FedEx and United Parcel Service; three are automotive, including General Motors; and one is into workforce marketing. Pretty much all of the contributors in the railroad industry are (pun intended) on the same track. Generally what affects one, affects them all. Corporations in the maritime industry are much more diverse and their contributions and interests more fragmented. Each maritime corporation or group has different and sometimes even opposing needs. All you have to do is look at the list of contributors during this 2015-2016 election cycle to recognize the fragmentation – Bouchard Transportation, Carnival Corp., Bollinger Shipyards, Norwegian Cruise Line, Crosby Tugs, Royal Caribbean Cruises, Kirby Corp., American Waterways Operators, Blessey Marine Service, Saltchuck Resources, Ingram Barge Co., Cruise Lines International Assn., Otto Candies, Crowley Maritime, Cooper/T.Smith Corp., Eastern Shipbuilding Group, Matson Inc., American Commercial Lines, American Pilots Assn., SSA Marine and Royal Caribbean International.

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

46

Marcon International, Inc. Tug Boat Market Report – August 2016 Bunker Prices Worldwide Recent months’ activity has resembled a rollercoaster ride with all the ups and downs seen in all regions that we report on. When looking at the most recent months, July decreased across the board from June’s ending prices, but then by end of August, all regions were back up. Interestingly enough, despite the volatility seen, we have edged very close to where prices were one year ago end August, with three areas within 5% of last year’s prices. Fujairah has always lagged in response to changes in factors influencing prices, so it is still about 24% off from last year. Fujairah did post a 2.58% increase end August, closing at US$ 516.0/mt from July’s US$ 503.0/mt. August 2015 closed at US$ 676.5/mt, so Fujairah is still lagging behind last year by 23.73%. The rest of the regions we report on are more responsive to price factors. In the US, Houston posted a 12.16% increase over July’s US$ 419.50, closing at US$ 470.5/mt, which is only 2.99% below August 2015’s US$ 485.0/mt. Rotterdam also posted a doubledigit increase over July closing up 15.37% at US$ 424.0/mt from US$ 367.5/mt. August 2015 was only 4.72% higher at US$ 445.0/mt. Rounding out the regions we regularly monitor is Singapore, which saw a 9.85% gain in August, closing at US$ 429.5/mt from US$ 391.0/mt. Singapore has regained the most ground from a year ago, as end of August it was only 2.72% or US$ 12.0/mt lower. We fully expect to continue seeing the up and down swings in prices given all that is happening in the world today. Overall, we are still seeing layups, layoffs and general hesitation to invest in projects and markets. The rollercoaster ride is not over yet and it is anyone’s guess as to how long we have to go before we see some semblance of stabilization. We have found that Kirby Corp. provides a good snapshot of the inland river market in the US. Their most recent data shows average 241 towboats operating 901 inland tank barges paid an average of US$ 1.35/gal during second quarter 2016, compared to $1.27/gal the prior quarter and $2.03/gal during same quarter 2015. The tank barge utilization levels of Kirby’s inland marine transportation markets declined modestly in the 2016 second quarter into the high-80% to low-90% range compared to the 90% to 95% range for the 2016 first quarter and the 2015 second quarter. The decline was largely attributable to a shortened spring season for agricultural chemical products and soft demand in trading and refinery volumes which was largely related to high inventory levels. Demand for barges moving petrochemicals was stable. Refined petroleum product volumes increased in the 2016 second quarter as a result of the Seacor acquisition in April 2016. During the 2016 second quarter, operating conditions were seasonally normal, although high cross currents at floodgates and river crossings on the Gulf Intracoastal Waterway led to congestion and added delays at certain points along the Gulf Coast. We monitor the Pacific OPIS contract average weekly prices of ultra-low sulphur diesel as these prices directly impact vessel operators on the West Coast. Trends in Pacific OPIS tend to mirror those seen in the MGO price changes. As of the week ended th August 19 , 2016, we saw increases during August in all West th Coast locations tracked. For the week ending 19 August 2016 th compared to the week ending 29 July 2016, Seattle rose 6.76% to US$ 2.0109 per gallon from US$ 1.8835/gal. Portland, OR grew 6.62% to US$ 2.083/gal (US$ 1.9536/gal). San Francisco increased 3.70% to US$ 2.1018/gal from US$ 2.0269/gal. “So. California Tugs”, comprised of Los Angeles / Long Beach, gained 8.62% to US$ 2.1179/gal from US$ 1.9499/gal. In August, Hawaii rose 4.26% to end at US$ 1.96/gal from US$ 1.88/gal. As with the MGO prices, we are very close to last year’s prices as compared to average st weekly prices for week ending August 21 , 2015, prices are within +0.45% in Seattle, to -4.80% in Los Angeles / Long Beach.

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

47

Marcon International, Inc. Tug Boat Market Report – August 2016

According to the Paris-based, International Energy Agency’s “Oil Market Report”, crude oil prices eased to around $45 bbl in August as a global supply overhang weighed and demand growth weakened. Brent crude had threatened to break below $40 bbl at the end of July. Global oil demand growth is expected to slow from 1.4 mb/d in 2016 to 1.2 mb/d in 2017, as underlying support from low oil prices wanes. The 2017 forecast – though still above-trend – is 0.1 mb/d below our previous expectations due to a dimmer macroeconomic outlook. The 2016 outlook is unchanged from last month’s Report. Global oil supply rose by about 0.8 mb/d in July, as both OPEC and non-OPEC production increased. Output was 215 kb/d lower than a year earlier, as declines from non-OPEC more than offset an 840 kb/d annual gain in total OPEC liquids. NonOPEC production is forecast to drop by 0.9 mb/d this year before rebounding by 0.3 mb/d in 2017. OPEC crude oil output rose by 150 kb/d to 33.39 mb/d in July as Saudi Arabia pushed output to the highest ever and Iraq pumped more. Robust Middle East production lifted total OPEC crude supply 680 kb/d above a year ago and held output at an eight-year high. Global refinery throughput in 3Q16 is expected to rise by 2.2 mb/d from a weak 2Q16 to a record 80.6 mb/d. At only 0.6 mb/d above a year earlier, 3Q16 runs will lag expected demand growth, eroding some of the product stock cushion built up since mid-2015. Runs are forecast to decline seasonally to below 80 mb/d in 4Q16. An OECD inventory overhang continued to shift from crude into products during June, with commercial stocks swelling by 5.7 mb to a record 3 093 mb. Declines in crude oil holdings were offset by an above average product build of 15.9 mb, with big volumes of US propane and other NGLs moving into storage. Per the latest U.S. Energy Information Administration’s “Short-Term Energy Outlook”, benchmark North Sea Brent crude oil spot prices increased by $1/b in August to $46/b. This was the fourth consecutive month in which Brent spot crude oil prices averaged between $44/b and $49/b. Brent crude oil prices are forecast to average $43/b in 2016 and $52/b in 2017. West Texas Intermediate (WTI) crude oil prices are forecast to average $1/b less than Brent in 2016 and 2017. Despite continued increases in global oil inventories and U.S. oil rig counts, market reactions to a potential OPEC deal to freeze production at current levels put upward pressure on prices in August. EIA expects global oil inventory builds to continue in the near future, averaging 0.6 million b/d in the second half of 2016, but the builds are forecast to remain well below the levels that occurred in 2015 and early 2016. Although the pace of inventory builds is slowing, continuing builds and high inventory levels will likely contribute to Brent prices maintaining the recent $40/b to $50/b trading range during the next two quarters. EIA forecasts Brent prices to average $45/b during the fourth quarter of 2016 and first quarter of 2017, acknowledging that global economic developments and geopolitical events in the coming months have the potential to push oil prices near the top or bottom of the $40/b to $50/b range. The current values of futures and options contracts highlight the heightened volatility and high uncertainty in the oil price. WTI futures contracts for December 2016 delivery that were traded during the five-day period ending September 1 averaged $47/b and implied volatility averaged 37%. These levels established the lower and upper limits of the 95% confidence interval for the market's expectations of monthly average WTI prices in December 2016 at $34/b and $65/b, respectively.

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

48

Marcon International, Inc. Tug Boat Market Report – August 2016

Recently Updated Featured Tugs & AHTSs For Sale Direct From Owners (Sorted by HP) File: SU26263 / SU26257 / SU26268 Supply Boats - AHTS (3 each) - 262.4' loa x 59.0' beam x 26.2' depth x 21.6' draft. Built 2002 / 2003 / 2003 by Soviknes Verft, Norway. GRT: 3,140. Class: ABS A1, Towing, OSV, AMS, ACCU, DPS-2, PMP, Unrestricted Service. Dwt: 2,750mt. Deck Cargo: 1,500MT on 121'x50' clear deck. FO: 1,150m3. FW: 500m3. DW: 1,669m3. Dry Bulk: 10,000ft3. Liq. Mud: 2,765BBL. Calcium Chloride / Brine: 4,602BBL. Winch: Triple drum Rauma Brattvaag. Line Pull: 325MT br. Main Engines: 4 x Bergen BRM6 total 16,800BHP. CP props. Kort nozzles. 1,180HP stern thruster. Bow thrusters: 2 - 1,180HP. Dynamic Positioning. Bollard Pull: 138MT. Quarters: 12. Passengers: 20. UT722-L. Karm forks & pins. Towcon 2000+ towing system. Two 650T SWL Karm forks and 4 - 450mm dia., 330T SWL tow pins + 2 - 95T SWL "pop up" pins. 2 - secondary drums with capacity of 3,500m 83mm wire each above deck & 1 spare wire reel for 1,500m 83mm wire below. 2 - 3", 2 - 3.25" & 2 - 4" gypsies for rig chain. 200T Smit bracket on bow. 4 rig chain lockers total 552m3 (max 4 x 1,800m 83mm chain). Bridge operating system in UMAS control chair for main engine, thrusters, steering gear, all drums, spooling gears, karm forks / towing pins. Winch system powered by 4 electro-hyd. motor pump sets. L3 Communications Nautronix NMS6000, Fanbeam, HIPAP, 2 DGPS, IALA, 2 Wind sensors. Kongsberg joystick. Direct from Owners for whom Marcon handled previous sales, purchases & charters. Europe. File: SU27965 Supply Boat - AHTS - 279.0' loa x 65.0' beam x 26.0' depth x 22.1' draft. Built 1999 by Halter Marine; Moss Point, MS. U.S. flag. GRT: 3,965. Class: ABS + A1, OSV AH, Towing (E) + AMS, DPS-2. Dwt: 3,400lt. Deck Cargo: 1,500T on 140'x55' deck. FO: 400,000g. FW: 95,000g. DW: 350,000g. BW: 420,000g. Liq. Mud: 7,400BBL. Crane: 150T AHC K-Boom Macgregor. Winch: Triple drum HM FCSL 500/2D/390/1D. Line Pull: 500T. Wire Capacity: 16,600' x 3.5". Stern Roller. Main Engines: 4 x EMD 16-710G7B total 16,000BHP. Lips FS3500 azimuthing aft prop(s) on 12.5kn cruise shaft(s). Diesel electric. 800HP tunnel 1,500HP azimuth thrusters. 40 day duration. Bowthruster. Dynamic Positioning. Bollard Pull: 160MT. Speed about 14kn. Genset(s): 1 450kW / CAT 3508; 1 - 190kW / CAT 3306. Quarters: 52 total incl. 16 crew. DP2. Helipad & ROV spread. Rigged for deepwater anchor handling & light construction. Chain locker for 25,000' 3" chain. Drum set up for synthetics. U.S. Gulf Coast. File: SU26258 Supply Boat - AHTS - 262.0' loa x 58.0' beam x 23.8' depth x 19.78' draft. Built 1998 by North American Shipbldg; Larose, LA. U.S. flag. GRT: 2,990. Class: ABS + A1, Towing Vessel, AH (E) + AMS, DPS-2, SOLAS. Unrestricted exp. Dec. 2015. Docking due Nov 2015. Dwt: 2,938lt. Deck Cargo: 1,200LT on 136' x 48' clear deck. Dry Bulk: 11,250ft2. Liq. Mud: 2,320BBL. Winch: Ulstein double drum waterfall 500MT. Main Engines: 2 x CAT 3612DITA total 14,000BHP. 2 - FP prop(s). Kort nozzle(s). 1 1,200HP drop-down stern thruster; 1 - 500HP tunnel. Bowthruster 1,200HP. Dynamic Positioning. Bollard Pull: 180MT. Speed 16kn max. Genset(s): 3 - 500kW / CAT 3412; 1 - 300kW / CAT emergency. Quarters: 39 berths total. AirCon. DP-2 AHTS. 12,000' rig chain capacity in 2 lockers. 3 berth hospital. Tailshaft P/S surveys due Nov 2017. Special Periodical Surveys 4 Hull & Mach. due Dec. 2015. Offered for outright sale strictly “as is, where is”. Vessel to be reflagged out of U.S. registry. U.S. Gulf Coast. File: SU22500 Supply Boat - AHTS - 225.0' loa x 52.0' beam x 22.0' depth. Built in 1997 by Halter Marine. U.S. flag. GRT: 2,136. Class: ABS + A1, Towing Service + AMS SS due July 2017, USCG COI "L" OSV exp. July 2017. SOLAS. Dwt: 2,180lt. Deck Cargo: 1,222MT on 484m2 clear deck. FO: 707m3. FW: 673m3. DW: 757m3. Dry Bulk: 7920ft3. Liq. Mud: 3,000BBL. Crane: 1 - 5MT @ 9m. Winch: Smatco double drum; 2 - tuggers. Line Pull: 485T. Stern Roller. Main Engines: 4 x EMD 16-645E7B total 12,280BHP. 2 - CP prop(s). Stern thruster: 1- 600BHP (thrusters all electric drive). Bowthruster 600BHP. Dynamic Positioning. Bollard Pull: 158LT. Speed about 12-14kn on 18-40m3/d. Genset(s): 2 - 1,600kW; 1 - 350kW; 1 - 120kW. Firefighting: 1 - monitor; 137m @ 2,600gpm discharge. Quarters: 16 cabins 24 berths. AirCon. Galley. DP 2 AHTS designed for deep water operations. Triplex shark jaws, chain lockers & wire storage reels. Tow pins. Offered for outright sale strictly “as is, where is” without any warranties or representations except as to ownership. Vessel to be reflagged out of U.S. registry. U.S. Gulf Coast. File: SU22552 Supply Boat - AHTS - 225.0' loa x 52.0' beam x 24.0' depth x 20.9' draft. Built 1983 by Halter Marine; New Orleans, LA. U.S. flag. GRT: 455. Class: ABS + A1 Towing + AMS, Ice C. Docking & Special Survey due 04/2013. USCG COI exp. May 2013. Dwt: 1,825lt. Light Disp.: 2,263T. 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: 1,440BBL. Winch: Smatco 140-EAW 1000 waterfall double drum. Line Pull: 492LT. Stern Roller. Main Engines: 4 x EMD 16-645E7 total 12,280BHP. 142" x 144" props on stainless steel shafts. Kort nozzles. Diesel elect 4-3,100kW 440vAC 60Hz gens connected to 4 electric motors. Bow thrusters: 2 -750 HP. Dynamic Positioning. Bollard Pull: 136MT. Speed 10-15kn on 259-602gph. Genset: 1 - 150kW 450vAC. 2 - 227m3/h monitors. Quarters: 25 berths in 11 cabins. AirCon. Galley. 750HP stern thruster. Range abt. 10,100nm at 10kn. Two pennant reels capacity 8,600' 2.5" wire each. Two 23.6LT tuggers. Two capstans. Smith Berger electro-hydraulic tow pins. Triplex 700MT shark jaws. Two chain lockers capacity 5,000' 3.25" chain. DP-1 positioning. U.S. Gulf Coast. File: SU22248 Supply Boat - AHTS - 222.1' loa x 47.7' beam x 22.6' depth x 19.3' draft. Built 1983 by Hyundai Hvy. Ind.; Korea. India flag. GRT: 1,621. Class: LR +100 A1 Offshore Tug Supply Ice Class 1, +LMC, UMS & Indian Register of Shipping. Next SS Jan 2017. Dwt: 1,726T. Deck Cargo: 550MT on 396m2 deck. FO: 936m3. FW: 382m3. DW: 800m3. Dry Bulk: 290m3 in 4 tanks. Liq. Mud: 206m3. Calcium Chloride / Brine: 200m3. Crane: 1-5T. 10m outreach. Winch: 400T brake triple drum waterfall Brattvaag. 400T brake. Wire Capacity: 1,300m x 76mm; 900m x 77mm. Stern Roller. Main Engines: 4 x Bergen KVMB-12 total 12,240BHP. 2 - 3,000mm dia Ulstein CP props. Kort nozzles. 800HP stern thruster. Bowthruster 2 - 800HP. Dynamic Positioning. Bollard Pull: 120MT. Speed 12-16kn on 14.7T-30Tpd. Gensets: 2-1,570kW Siemens/shaft; 2-305kW/CAT; 1-94kW/CAT 440v 3ph 60Hz. Quarters: 21 (1-13, 2-4). AirCon. Galley. 5 yr. SS & DD due Jan 2017. DP1 deep water. Kongsberg dynamic positioning. Ulstein passive stabilization. 30m3 dispersant capacity. 2- 103m3 rig chain lockers. Tow pins, two 10T tuggers, three 10T capstans, chain lifters & shark Jaws. Southeast Asia.

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

49

Marcon International, Inc. Tug Boat Market Report – August 2016

File: SU23007 / SU23009 Supply Boats - AHTS (2 each) - 229.6' loa x 62.3' beam x 26.6' depth x 20.34' draft. Built 2016. Foreign flag. GRT: 3,200. Class: LR +100A1, AHTS/Supply/Standby, Oil Recovery, FiFi-1, HNLS, IWS, ECO-P,PCAC, +LMC, UMS, DP(AA), NAV-1. Dwt: 2,500T. 570m2 clear deck. FO: 700m3. FW: 600m3. DW: 900m3. Dry Bulk: 226m3 in 4 tanks. Crane: 5T @ 20m SWL knuckle. Winch: 450T brake, Rolls Royce waterfall double drum AHT. Line Pull: 350T. Wire Capacity: 2 - 2,500m x 76mm. Stern Roller. Main Engines: 2 x MAN-B&W 8L27/38 total 12,123BHP. 2 - CP prop(s). Kort nozzle(s). 2 - 500kW Wartsila CPP stern thrusters. Hybrid 2 - 1,600ekW Siemens PTIs. Bowthruster 2 - 850kW. Dynamic Positioning. Bollard Pull: 150T. Speed about 12-13.5kn. Genset(s): 4 - 1,690ekW; 1- 300ekW / emerg. 415vAC 50Hz. Firefighting: FiFi 1. Foam: 20m3. 2 - 1,700m3/h pumps. 2 - 1,200m3/h monitors. Quarters: 38 in 25 cabins. AirCon. Galley. Two 150 tonne bollard pull AHTSs with OilRec capability. HNLS / ORO 700m3 in 4 tanks. Becker Hi-Lift flap rudders. Endurance: 30 days. 76mm port & 102mm starboard rig cable lifters. 2 - 225T SWL sets retractable tow pins. 2 - 450T SWL sets 50 - 70mm wire & 30 - 101.6mm chain shark jaws with local & remote controls in bridge. 150T flush gob eye. 150T SWL double tow bitt. 150T SWL chain chaser & grapnel hook. Hydraulic spare tow wire reel with 2,500m 76mm wire & AH reel with 2,500m 76mm wire. 2 - 25m 400T breaking strength spring line / stretchers. Smit bracket. 2 - RR 15T tuggers & 2 - RR 10T capstans. Kongsberg IMO DP-2 positioning: 35kn wind & 2kn current acting on beam simultaneously. 2 joysticks. 2 DGPS, 2 MRU, 2 wind sensors, Cyscan laser & Radius. Oil Rec. 600 800m3. Decanting system with 20m3/h pump. Dispersant system with 6m arms. 2 - NOREQ 15 person, 30kn fast rescue boats & davits. 4 - 25 Zodiac person inflatable liferafts. Internal FiFi as per SOLAS and ERRV Group B. H2S & LEL sensors and alarms. Fixed CO2 & water mist in engine room. Rescue zones. Gas detectors. Helicopter winching gear. Ballast water treatment. 20mt/d watermaker. BNWAS. Separate mess / rec rooms for officers & crew. 2 offices. Hospital. Prayer room, Change room. TV / DVD in all cabins & mess room. Southwest Asia. Prompt. File: SU24972 Supply Boat - AHTS - 249.4' loa x 60.7' beam x 26.3' depth x 19.69' loaded draft. Built in 2011 by Grade One Marine Shipyard. Indonesia flag. GRT: 3,511. Class: BV I +Hull +MACH, Towing Offshore Support Vessel, AHT, FiFi-1, Waterspraying +AUT-UMS, Dynapos, AM/AT-R, Unrestricted. Dwt: 2,900mt. Deck Cargo: 800MT on 580m2 clear deck. FO: 1,000m3. FW: 700m3. DW: 900m3. Dry Bulk: 310m3. Liq. Mud: 800m3. Crane: Elect. / hyd. Winch: Elect. / hyd. double drum, 2 tugger & capstans. Stern Roller. Main Engines: 2 x MAK 9N32C total 12,060BHP. 2 - 4-blade CP prop(s). 1 - 650kW tunnel thruster aft. Bowthruster 2 - 650kW. Dynamic Positioning. Bollard Pull: 160T. Speed about 14kn on 1,550Lph. Genset(s): 2 425kW / CAT, 2 - 2,300kW 440vAC 60Hz / 1 - 72kW / CAT. Firefighting: FiFi-1. 1,500m3/h pump + 1,200m3/h monitor. Quarters: 46 berths. AirCon. Galley. Two 150MT tow pins. Two 300MT Karm forks. 6 x 25 men liferafts. “as is, where is”. Southeast Asia. File: SU24052 Supply Boat - AHTS - 240.0' loa x 52.1' beam x 18.5' depth x 15.0' draft. Built 1986 by North American SB; Larose, LA. U.S. flag. GRT: 499. Class: ABS + A1 AMS Towing. USCG Certified. Exp. Oct. 2016. Dwt: 1,527lt. Deck Cargo: 830LT on 135' x 44' clear deck. FO: 178,576g. FW: 23,068g. DW: 325,615g. Dry Bulk: 5,120ft3. Liq. Mud: 2,230BBL. Crane: 2 - 10T @ 30'. Winch: Brattvaag double drum waterfall. Line Pull: 500T. Wire Capacity: 2- 6,500' x 3.75". Stern Roller. Main Engines: 3 x EMD 20645E7 total 12,000BHP. 3 - 108" Ulstein CP prop(s). 1,200HP stern thruster. Ulstein 360deg. azimuthing thrusters. Bowthruster 1,200HP. Dynamic Positioning. Bollard Pull: 150LT. Speed 12-14kn on 138-268gph. Genset(s): 3 - 1,800kW / shaft; 2 - 300kW / aux. 2 - 12,500gpm fire monitors. Quarters: 34 total. AirCon. Galley. DP-2 AHTS. Two 6,000' Rig chain lockers (3.5" chain). One 350MT shark jaws. 350MT tow pins. 8' x 6' stern roller. 2 - 12T & 2 - 10T Tuggers. Two 6,500' 3.75" storage reels. “as is, where is”. Vessel to be reflagged out of U.S. registry. U.S. Gulf Coast. File: SU21945 / SU21958 Supply Boat - AHTS (2 each) - 219.8' loa x 52.5' beam x 23.0' depth x 19.68' loaded draft. Built in 2010 by PT Batamec, Indonesia. Liberia flag. GRT: 2,310. Class: RMR KM +AUT2 Dynpos-2 Tug/Supply Ship. Special Surveys due Apr / May 2020 respectively. Formerly ABS +A1 (E) Offshore. Dwt: 2,326mt. Light Disp.: 2,230mt. Deck Cargo: 800MT on 410m2 clear deck. FO: 1,193m3. FW: 239.2m3. DW: 760m3. BW: 760m3. Dry Bulk: 250m3. Liq. Mud: 398m3. Crane: 1 - 0.9T @ 15m fixed boom. Winch: 320MT brake Brattvaag SL250W double drum. Line Pull: [email protected]. Wire Capacity: 2,000m / 800m x 76mm. Stern Roller. Main Engines: 2 x Wartsila 8L32 total 10,880BHP. 2 - Wartsila Lips CP prop(s). Kort nozzle(s). 1 - 600kW stern thruster. Bowthruster 2 - 600kW. Dynamic Positioning. Bollard Pull: 141.11MT. Speed about 10-13.5kn on 24-40m3/d MGO. Genset(s): 2 - 590kW /CAT, 2 - 1,520kW /shaft, 1 - 84kW / emerg. 440vAC 60Hz. Firefighting: FiFi-1. Water curtain. 2 - 1,705m3/h pumps. 2 - 1,200m3 monitors. Quarters: 42 in 17 cabins. AirCon. Galley. Conan Wu standard 67m, DP-2 AHTS design. 2 - 160mt SWL Karm Forks. 2 - 300mt SWL tow pins. Gypsies for 3" & 3.5" rig chain. Chain lockers: 2 - 100m3. 2 - 10mt capstans. 2 - 11mt tuggers. Brattvaag rope reel capacity 2,000m 76mm wire. Foam/Detergent: 12.9 m3/16.2m3. 4 - 25 & 2 - 20 person SOLAS liferafts. 6 person rescue boat. Sewage treatment for 42 persons. Hospital. Converteam DP-2 ADP Workstation & joystick. High performance Becker rudders. Annual Survey due 28 Jul 2017. Docking due 01 Feb 2018. Open to serious proposals for purchase, employment, joint ventures, contractual work, bareboat or time charter. Direct from Owners for whom we have handled previous transactions. Southeast Asia. File: SU21971 Supply Boat - AHTS - 229.8' loa x 50.8' beam x 21.6' depth x 16.70' loaded draft. Built in 2006 by Stocznia Polnocna SA; Gdansk. Vanuatu flag. GRT: 2,258. Class: ABS + A1, FiFi 1, OSV (E) + AMS + DPS-1. Unrestricted. Dwt: 2,170T. Deck Cargo: 999T on 33.7m x 12m clear deck. FO: 701T. FW: 99T. BW: 958T. Dry Bulk: 192m3. Liq. Mud: 475m3. Crane: 4,400lbs @ 32ft. Winch: RRM-Brattvaag DD. Line Pull: 330T. Stern Roller. Main Engines: 2 x EMD 20-710-G7B total 10,000BHP. 2 - CP prop(s). Kort nozzle(s). Bowthruster 2 - 800BHP. Dynamic Positioning. Bollard Pull: 126T. Speed about 8-14kn on 165358gph. Genset(s): 2 - 250kW; 2 - 1,200kW / Shaft, 1 - 150kW 440v 60Hz. Quarters: 28 (2-1, 9-2, 2-4). DP1 AHTS. Karmoy 160mt tow pins and 300MT shark jaws. 2 - 11,000lbs capstans. Mediterranean.

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

50

Marcon International, Inc. Tug Boat Market Report – August 2016

File: SU21117 / SU21118 Supply Boats - AHTS (2 each) - 211.2' loa x 46.4' beam x 22.6' depth x 19.32' draft. Built 1984 by Tito Brodogradiliste; Yugoslavia. GRT: 1,310. Class: BV I Hull, Mach Tug, Supply Vessel, AUT-UMS, Unrestricted valid until Nov. 2017. Dwt: 1,880mt. Deck Cargo: 740MT on 418m2 clear deck. FO: 838m3. FW: 276m3. DW: 814m3. Dry Bulk: 6,000ft3 in 4 tanks. Liq. Mud: 232m3. Calcium Chloride / Brine: 230m3. Winch: SL 250W/BSL 250WX hyd. double drum Brattvaag. Line Pull: 250/350T. Wire Capacity: 2 - 1,400m x 64mm. Main Engines: 2 x Sulzer 16ASV total 8,810BHP. Ulstein 3,000 CP prop(s). Kort nozzle(s). Bowthruster 800HP. Bollard Pull: 106MT. Speed about 11.5-17kn on 13MTpd. Genset(s): 2 - 670kW; 2 - 250kW 440vAC 60Hz. Firefighting: 1,200m3/h. Quarters: 25 berths/12 crew. Reported in very good condition. 2-10' tuggers. 2-8T capstans. Rig chain lockers 117m3. Sale “as is, where is”. Mediterranean. File: SU20743 Supply Boat - AHTS - 207.0' loa x 43.3' beam x 19.8' depth x 16.40' loaded draft. Built in 1981 by Astilleros de Huelva S.A.; Spain. Foreign flag. GRT: 1,171. Class: RINA 100 A 1.1 Nav. I.L. RecOil recently renewed. Dwt: 1,243T. FO: 446m3. FW: 70m3. DW: 453m3. Crane: 1 - 8T x 14m hydraulic. Winch: Double drum 126MT brake. Wire Capacity: 1150m / 700m x 64mm. Stern Roller. Main Engines: 2 x Deutz RSBV8M540 total 8,800BHP. Nava lips CP prop(s). Kort nozzle(s). Bowthruster 2 - 400BHP. Bollard Pull: 110MT. Speed about 14.5kn. Genset(s): 3 - 362kW / Baudouin; 1-70kW 380vAC 50Hz. Firefighting: 1-1,300m3/h @ 120m monitor; 45m3 foam. Quarters: 10-1, 5-4 berth. Equipped for oil recovery, FiFi -1 and as stand-in communications center for rescue / standby operations. Can perform deepwater anchor handling. Lifter for anchor handling. Two tugger winches. Two folding bitts. 144m3 chain locker. 45m3 dispersant. 218m3 recovered oil. 400m Mannesman oil booms. 200m Vikoma oil booms. OCS skimmer 50/220m3. Vikoma 30 skimmer. Vessel has been engaged in light standby duty for many years with low engines hours. Owners replaced substantial steel in 2008/2009 costing about Euro 1m and have a RINA statement which has her conventional age reduced by 14 years given her condition. The vessel currently in class and fully operational. Vessel not fitted with liquid mud or drybulk. Direct from Owners for whom Marcon has handled previous sales & charters. Inviting best offers. Mediterranean. File: TG80118 / TG80119 Tugs - Azimuthing (2 each) - 118.1' loa x 42.7' beam x 22.5' depth x 22.3' Built 2013 / 2016. Foreign flag. GRT: 710. Class: LR 100A1, Escort Tug, FiFi 1 Water Spray, LMC, UMS Ice 1A Super FS Near Coastal Voyage Class 2 Unrestricted. Dwt: 325mt. Crane: 14T capacity. Reach 14.4m. Winch: Markey split drum hawser forward & single drum aft. Wire Capacity: 800m x 64mm. Main Engines: 2 x MAK 9M25C total 8,294BHP. 3,000mm Rolls Royce 305 CP props. Bollard Pull: @105MT. Speed about 13.5kn max. Gensets: 3 - 250kW / CAT C9. Firefighting: FiFi 1 2 - 1,200m3/h & 1 - 2,400m3/h monitors. Foam 660m3. Quarters: 10 persons. AirCon. Galley. Robert Allan Ltd. design, ice-classed terminal support / shipdocking / escort tug also suitable for icebreaking & ice management ops. Hydraulic tow pins, rollers & hold-down block. 10T electric tugger & capstan. Hull coated with Ecospeed glassflake reinforced coating for reduced roughness & reduced friction in harsh, icy conditions. May be developed for sale or charter. File: SU16749 Azimuthing Supply Boat - AHTS (2 each) - 167.3' loa x 49.2' beam x 21.3' depth x 16.4' draft. Built 2009 by Yuexin Shipbuilding. Vanuatu flag. GRT: 1,370. Class: ABS + A1 + AMS OSV / FiFi 1. 210m2 deck. FO: 685m3. FW: 162m3. Crane: 2T @ 12m. Winch: 120T brake. Main Engines: 2 x GE 12V228 total 8,250BHP. Schottel SRP3030CP azi. props. Bowthruster. Bollard Pull: 122T. Gensets: 3 - 425kW / CAT C4-4; 1 - 76kW / CAT C4-4. Quarters: 20. Tow pins / shark jaws 250T SWL. Africa. File: SU27875 Hybrid Supply Boat - AHTS - 278.2' loa x 72.2' beam x 27.2' depth x 22.3' draft. Built 2013 by Southeast Asian shipyard. Singapore flag. GRT: 5,166. Class: ABS +A1 +AMS, E, AHT OSV, FiFi 1, DPS-2 HAB(WB), ENVIRO, ORO 1, ACCU, SPS 2008. Dwt: 4,800mt. 850m2 clear deck. FO: 1,330m3. FW: 1,000m3. DW: 2,800m3. BW: 2,800m3. Dry Bulk: 280m3 in 4 tanks. Liq. Mud: 838m3. Calcium Chloride / Brine: 838m3. Winch: Brattvaag SL300W 2-drum waterfall,2-15MT tuggers,2-10MT capstans. Line Pull: 300MT. Wire Capacity: 2 - 2,000m x 70mm. Stern Roller. Main Engines: 2 x Wartsila 9L26 total 8,207BHP. 2 CP prop(s). Kort nozzle(s). 2 -600kW Wartsila Lips CPP 10MT stern thrusters. Bowthruster 2-800kW. Dynamic Positioning. Bollard Pull: 150MT. Speed about 15.4kn. Genset(s): 2 - 1,950kW / Wartsila 6L26, 2 - 1,875kW /shaft. Quarters: 78 (6-1,12-2,124). AirCon. Galley. Multi-purpose AHTS designed by Wartsila Ship Design. SPS-code compliant with Oil Recovery capability, HAB & ENVORO notations. Max line pull 300MT ahead using combined diesel mechanical + the 1,950kW generators and two 1,500kW electric motors. Kongsberg K-pos DP-21 positioning with HIPAP 500. Two 220m3 rig chain lockers. Two 76mm gypsies for rig chain storage. Two Brattvaag rope storage winches capacity 2,000m 70mm wire. Macgregor 350MT tow pins and 500MT shark jaws. Deck strengthened for AHC crane. Open for outright sale, time charter or BBC to qualified charterers. Due to high bollard pull, vessel can do a towage to area of operation helping defray cost of mobilization. Two units already committed. Far East. File: SU17050 / SU17049 Supply Boats - AHTS (2 each) - 170.6' loa x 49.2' beam x 21.3' depth x 18.7' draft. Built 2011 by PT Luo Shipyard. Panama flag. GRT: 1,496. Class: BV I + A1 (E) + AMS, OSV, FiFi 1, Towing / AH - Water Spray Services. Dwt: 1,031mt. 240m2 deck. FO: 340+550m. FW: 250m3. Crane: 9.9kN @ 7m Telescoping. Winch: 250T MacGregor double drum waterfall. Stern Roller. Main Engines: 2 x GE 16V228 total 8,200BHP. 3.6m Kamome 4-blade CP props. Kort nozzles. 49kN stern thruster. Endurance abt. 30 days. Bowthruster 374BHP. Bollard Pull: 101MT. Speed 13kn max on 22MTpd MGO. Gensets: 3 410kW; 2 - 800kW 415/220vAC 50Hz. FiFi 1. Quarters: 26 in 10-2, 1-6 berth cabins. AirCon. Smith Berger 350T SWL Shark jaws. Two 10T tuggers. Two 5T capstans. One Smith Berger 300T SWL tow pin. Dispersant 8m3 with 4m3/h pump. Mid-East. Prompt. File: SU22948 Supply Boat - AHTS - 230.0' loa x 52.5' beam x 23.6' depth. Built in 2007 by PT Jaya Asiatic Shipyard; Indonesia. Vanuatu flag. GRT: 2,342. Class: ABS +A1, Towing, FiFi 1, DPS-2, E, +AMS, SOLAS. Dwt: 2,539lt. FO: 608m3. FW: 475m3. BW: 323m3. Main Engines: 2 x Wartsila 6L32A total 8,046BHP. 2 - CP prop(s). Kort nozzle(s). 2 - stern thrusters. Dynamic Positioning. Bollard Pull: 97.44LT. Genset(s): 2 - 370kW. AirCon. Galley. DP 2. Offered strictly “as is, where is”. U.S. Gulf Coast.

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

51

Marcon International, Inc. Tug Boat Market Report – August 2016

File: SU22366 / SU22367 Hybrid Supply Boats - AHTS (2 each) - 225.7' loa x 59.1' beam x 22.3' depth x 18.1' draft. Built 2016. Foreign flag. GRT: 2,643. Class: LR +100A1, AHTS/Supply/Standby, Oil Rec., FiFi-1, HNLS, IWS, +LMC, UMS, DP (AA). SPS 2008, MLC 2006. Dwt: 1,900T. 600m2 deck. FO: 800m3. FW: 720m3. DW: 320m3. BW: 400m3. Dry Bulk: 225m3. Liq. Mud: 600m3. Crane: 3T @ 20m SWL. Winch: 250T brake Cargotec waterfall double drum. 2 - 10T tuggers, 2 - 5T capstans. Wire Capacity: 1,000m x 60m. Stern Roller. Main Engines: 2 x MAN 6L27/38 total 8,153BHP. CP props. Kort nozzles. 2 - 400kW Berg CPP stern thrusters; Diesel Hybrid M/E with 2 - 1,000kW PTIs. Bowthruster 2 - 800kW. Dynamic Positioning. Bollard Pull: 90T. Speed 12kn. Gensets: 4 - 1,000ekW; 1- 150kW / emerg. 415v 50Hz. Siemens power mgmt. FiFi-1. Foam: 20m3. 2- 1650m3/h pumps. 2- 1200m3/h monitors. Quarters: 38 in 21 cabins. AirCon. 76mm chain rig cable lifters. 2 - 63.4m3 rig chain lockers for 500m 76mm chain. 160T SWL Karmoy retractable tow pins. 300T SWL 50 - 70mm dia. wire & 30mm - 102mm dia. chain Karmoy shark jaws with local & remote control on bridge. 100T flush gob eye. 120T double tow bitt. 100T chain chaser & grapnel hook. Hydraulic Cargotec spare tow wire reel with 1,000m 60mm & AH reel with 300m 60m wire. 2 - 25m x 100mm dia. spring line / stretchers. Smit bracket. LR DP (AA) Kongsberg positioning - 35kn wind & 2kn current operating on beam simultaneously. 2 joysticks. 2 DGPS, 2 MRU, 2 wind sensors. BNWAS. Oil Recovery system Rescue zones, gas detectors, Helicopter winching gear. H2S & LEL sensors & alarms. Ballast water treatment. 2 offices, hospital, prayer room & change room. Southwest Asia. Prompt. File: SU23161 Supply Boat - AHTS - 231.3' loa x 54.5' beam x 23.6' depth x 14.7' draft. Built 2011 by Tongfang Jiangxin; China. Singapore flag. GRT: 2,558. Class: ABS + A1 (E) + AMS, AH Towing + DPS-2, FiFi 1, OSV. Dwt: 2,490mt. Deck Cargo: 900MT on 480m2 clear 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. Line Pull: 20-210MT. Wire Capacity: 200m x 24mm. Stern Roller. Main Engines: 2 x Niigata 8MG28HLX total 8,000BHP. CP props. Kort nozzles. 680kW Stern thruster. Bow thrusters 2 - 680kW. Dynamic Positioning. Bollard Pull: 100MT. Speed about 13-14.4kn on 19.5MTpd. Pump(s): FO: 100m3/h; FW: 100m3/h, DW/BW: 100m3/h, Liq mud: 2 - 75m3/h, Dry Bulk: 2 - 20m3/min. Genset(s): 2 - 350kW / Volvo D12MGHE, 1 - 99kW / Volvo D7AT 440v 60Hz 3ph. FiFi: 2 - 1,700m3/h pumps, 2 water/foam monitors. Quarters: 4-1, 3-2, 8-4 berth cabins. Southeast Asia. Prompt. File: TG80214 Tug - Twin Screw - 238.2' loa x 42.6' beam x 19.7' depth x 17.7' draft. Built 1977 by Miyoshi Zosen; Uwajima, Japan. Panama flag. GRT: 1,819. Class: RINA - withdrawn. Dwt: 1,825T. FO: 1,380T. FW: 230T. BW: 192T. Winch: Double Drum 340T brake. Line Pull: 80T@5m/min. Wire Capacity: 2 - 1,200m x 64mm. Main Engines: 2 x Niigata 8M640X total 8,000BHP. 2 FP props. Kort nozzles. Capable of burning HVFO. Endurance: 80 days. Bowthruster 470BHP. Speed 14kn on 16-24Tpd. Genset(s): 2 - 280kW 440/110vAC 60Hz. Quarters: 18 total. AirCon. Galley. In Northern European port, looking for worldwide tow, preferably SE Asia/Far East. 82T ABS Certified bollard pull. Offered for sale as well on “as is, where is” basis. Europe. File: TG84111 Tug - Twin Screw - 120.0' loa x 44.0' beam x 29.5' depth. Built 1991 by Upper Peninsular S.B. Co.; TX. Rebuilt: 2012. U.S. flag. GRT: 275. ABS International Loadline Unrestricted exp. May 2017. Annual overdue 31 May 2015. FO: 237,000g. FW: 10,000g. Winch: Johnson LST anchor. Main Engines: 2 x MAK 6M551AK total 8,000BHP. 2 - CP prop(s). Both main engines overhauled 1/2001. Speed about 11-13kn. Genset(s): 2 - 400kW / CAT; 1 - 90kW / CAT 3304 480vAC. Quarters: 11 in 11 cabins. AirCon. Galley. A/TB unit en bloc with a 7,000DWT dry cargo barge DB46065. Bludworth linkage system. Further technical details, photographs, survey status available on request. While both tug & barge are still U.S. flag, they no longer have U.S. Jones Act trading privileges. As brokers only, we invite your best firm " as is, where is" offers for Owner's consideration. See also files TG72015 / DB56885 for similar tug/barge unit. Marcon brokered the last sales for both units in 1997 and 2004. Southeast Asia. File: TG70135 Tug - Twin Screw - 138.0' loa x 38.0' beam x 19.8' depth x 20.7' draft. Built 1977 by Astilleros del Atlantico; Spain. Rebuilt: 2001. Foreign flag. GRT: 298. Class: ABS +A1 +AMS. Class exp. 2019. Docking due Sept. 2016. Dwt: 820mt. Deck Cargo: 100T. FO: 175,000g. FW: 22,000g. BW: 2,122g. 12T Knuckle boom. Winch: Smatco 66 DAW double drum + tow hook. Wire Capacity: 150T. Stern Roller. Main Engines: 2 x EMD 20-645E7B total 7,700BHP. 113"x113" prop(s). Kort nozzle(s). Recent repowering. Bowthruster 300BHP. Bollard Pull: 101T. Speed 12-15kn on 3,000g/d. Gensets: 2 - 125kW / GM 8-71; 1-20kW / GM 271. 1 - 1,800gpm fire monitor. Quarters: 17 persons total. AirCon. Totally rebuilt/repowered by US Gulf shipyard. 200T Shark Jaw/Tow Pins. 2 – 10T Tugger Winches. Reportedly good condition. Mexico East Coast. File: TG74146 Tug - Twin Screw - 146.3' loa x 39.4' beam x 20.5' depth x 18.1' draft. Built 1976 by D.M. Kremer Sohn; Germany. Palau flag. GRT: 823. Class: RINA. Special Survey due 25 Aug. 2019. Dwt: 753lt. Deck Cargo: 170T on 50' x 18' deck. FO: 167,462g. FW: 9,246g. BW: 13,713g. Winch: Surken Bodewes double drum + 10T tugger. Wire Capacity: 4,200' x 2.5". Stern Roller. Main Engines: 2 x B&W-Alpha 14U28L4 total 7,420BHP. 2 - 4-blade CP prop(s). Kort nozzle(s). Bowthruster 450BHP. Bollard Pull: 104.9MT. Speed about 14.5kn max on 382g/hr. Genset(s): 3 - 220kW / GM12V71; 1 - 80kW / GM4-71 400vAC 60Hz. Quarters: 16 crew (4-1, 4-2, 1-4). AirCon. Galley. Passengers: 4. Anchor handling tug. Shark jaw, open stern. Mid-East. Prompt. File: SU21400 Supply Boat - AHTS - 220.0' loa x 42.0' beam x 14.0' depth x 13.85' draft. Built 1982 by Halter Marine; Lockport, LA. U.S. flag. GRT: 490. ABS loadline exp. 18 April 2017. USCG Subch. I. Dwt: 2,270lt. Deck Cargo: 510LT on 108' x 32' clear deck. FO: 103,576g. DW: 219,400g. Dry Bulk: 6,000ft3 in 4 tanks. Liq. Mud: 2,200BBL. Winch: Fritz-Culver/Brattvaag double drum waterfall. Line Pull: 290MT. Wire Capacity: 2 - 4,141' x 3". Stern Roller. Main Engines: 2 x EMD 16-645E7B total 7,340BHP. 2 - FP prop(s). Kort nozzle(s). 1-Retractable omni-thrust 1,200HP stern thruster. Bowthruster 535HP. Bollard Pull: 103MT. Speed about 16kn. Genset(s): 2 - 150kW. Quarters: 22 persons total. AirCon. Galley. Four chain lockers capacity 3,000' 3" chain each. Four chain lockers 3,600' 3.25" chain each. Four storage reels for 4,125' x 3" wire each. 300MT Shark jaw. 150T tow pins. FW / DW / BW capacity combined. 5' x 8' stern roller. 2 - 10T tuggers. Joystick. Offered strictly “as is, where is”. Africa West Coast.

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

52

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG60169 Tug - Twin Screw - 163.4' loa x 39.5' beam x 20.7' depth x 18.00' loaded draft. Built in 1977 by Georg Eides Sonner AS, Norway. Foreign flag. GRT: 882. Class: IBS (Panama). Formerly ABS. Dwt: 759mt. FO: 147,952g. FW: 34,346g. DW: 30m3. Crane: 1 - 1T. Winch: Norwinch D/D waterfall. Wire Capacity: 4,000' x 2"; 3,200' x 2.25". Stern Roller. Main Engines: 2 x EMD 20-645-E3 total 7,200BHP. Last Overhauled: 2001. 2 - CP prop(s). Kort nozzle(s). Bowthruster 400HP. Bollard Pull: 80T. Speed about 8.5kn on 98gph. Genset(s): 2-194kW, 1-145kW/Scania, 380v 50Hz. Quarters: 21. AirCon. 68' overall height. Brunvoll bow thruster. Repowered with EMDs in 2001. Tug in operating condition. Last drydock January 2012. Try reasonable offers basis delivery “as is, where is”. Needs drydocking. South America West Coast. File: TG72015 Tug - Twin Screw - 150.0' loa x 40.0' beam x 25.0' depth x 23.0' draft. Built 1978 by Marinette Marine; Marinette, WI. U.S. flag. GRT: 180. ABS Loadline thru Apr 2018. Annual Load Line Survey 3 due Apr 2016. Last drydocked / survey Apr 2013. Dwt: 574lt. Light Disp.: 1,306lt. Main Engines: 2 x EMD 20-645E7B total 7,200BHP. Stainless shafts. Speed 10/12kn laden on abt. 5,000/6,200gpd MGO. Bowthruster. Gensets: 2 - 300kW / CAT3412 440/220vAC. Quarters: 14 berths. AT/B Ro/Ro, Lo/Lo tug barge unit. Artubar pin connection system. Combined length abt. 650' x 85' with abt. 7,100stdw capacity & 92,000ft2 deck. 648 TEUs. See DB56885. Inviting best firm “as is, where is” offers for Owner's consideration. See TG84111 / DB46065 for similar tug/barge unit. Marcon brokered last sales for both units in 1997 and 2004. Southeast Asia. File: TG72112 Tug - Twin Screw - 136.2' loa x 36.5' beam x 19.2' depth x 17.0' x 20.0' draft. Built 1975 by McDermott; Morgan City, LA. U.S. flag. GRT: 199. Class: ABS + A1 Towing + AMS, Unrestricted. Special Survey February 2016 in lay-up status. FO: 155,000g. FW: 15,000g. Winch: Markey double TSSDW 36C. Wire Capacity: 2 - 3,000' x 2.25". Stern Roller. Main Engines: 2 x EMD 20-645E7B total 7,200BHP. 132" x 82"-88" 5-blade props. Bollard Pull: 75ST. Speed about 14kn service. Genset(s): 2 105kW / CAT 3304. Quarters: 10 crew in 5 cabins. AirCon. Galley. Triple rudders for close-quarter maneuverability & steering power to handle large tows. Hydraulic tow pins. Excellent sea-keeping capability. Well suited for all types of ocean towing. Marcon handled over 100 sales & purchases for this Owner since 1986. U.S. Gulf Coast. File: TG72150 Tug - Twin Screw - 150.0' loa x 40.1' beam x 14.1' depth x 20.0' draft. Built 1976 by Equitable Shipyards; Madisonville. Rebuilt: 2002. U.S. flag. GRT: 174. ABS Ocean Loadline Unrestricted Service exp. 24 June 2013. Previously ABS +A1, Towing Service, Ice C, +AMS. Dwt: 820lt. FO: 216,465g. FW: 7,509g. DW: 17,705g. BW: 80,909g. Crane: 1 - 1,200lbs. @ 50'. Winch: Intercon DD250 double drum side-by-side. Line Pull: 240,000lb. Wire Capacity: 4,000' & 2,000' x 2.5". Stern Roller. Main Engines: 2 x EMD 20-645E7A total 7,200BHP. 144" x 144" FP props. Kort nozzles. Range 11,070nm at 11kn. Bowthruster 535HP. Bollard Pull: 103ST. Speed 11-13kn free on 220 - 330gph. Gensets: 2 - 99kW / GM 8V71 440vAC 60Hz. Quarters: 2-1 & 6-2 man cabins. AirCon. Galley. Raised foc'stle bow. Intercon tow pins. ITC Tonnage: 798G / 239N. Idle in fresh water since mid2013 with ABS dry-docking, etc. overdue. Main engines overhauled 2014 and not operated since. Sold to present owner by Marcon. Keen seller. As brokers, we invite best firm, outright cash offers “as is, where is”. U.S. Northwest. Prompt. File: TG71096 A/TB Tug - Twin Screw - 96.0' loa x 34.8' beam x 22.4' depth x 19.7' draft. Built 1979 by Modern Marine Power; Houma, LA. U.S. flag. GRT: 199. Class: ABS +A1 Towing Service, AMS, Unrestricted. Special Survey due May 2019. Docking due April 2017. Dwt: 787T. Light Disp.: 761T. FO: 86,000g. FW: 10,160g. Crane: 5T. Winch: HC-20 emergency tow capstan. Wire Capacity: 1,000' x 12" hawser. Main Engines: 2 x Alco 16-251C total 7,130BHP. 2 - 120" x 76" FP prop(s) on Stainless shaft(s). Repowered 1996. Abt. 7,460HP@1,200RPM. P/S Tailshaft Surveys due 04/19/2019. Speed 10kn on 4,600gpd MDO. Genset(s): 2 - 99kW / John Deere 6068 TEM-5D. Firefighting: Quarters: 9 berths. Articulated offshore tug designed to operate with A/TB barge TB52392 via Bludworth pin system. Combined Tug/Barge length 438'. Upper pilothouse with 46.45' height of eye. Highest fixed point 78.0'. 2 Quincy 325 air compressors. Last drydocked 20 April 2014. ITC Tonnage 541 / 162. Further technical details including Q-88s & Gas Form C available on request from this office. Both units reportedly in good condition. Direct from Owners for whom Marcon has handled several previous sales & purchases. U.S. Gulf Coast. File: TG71145 Tug - Twin Screw - 145.0' loa x 33.2' beam x 15.4' depth x 20' draft. Built 1943 by Marietta Mfg.; Point Pleasant, WV. Rebuilt: 1999. U.S. flag. GRT: 195. ABS International Loadline due Mar 2016. FO: 166,200g. FW: 8,800g. Crane: 35' North American. Winch: Almon Johnson A-50. Wire Capacity: 2,000'. Main Engines: 2 x Alco 16-251E total 7,130BHP. 144" x 108" 4blade stainless props. New engines 1968. Quincy 325 compressors. Bollard Pull: 102.5T. Gensets: 2-99kW / GM8V71. 11 berths. New deck crane, wheelhouse. Upper pilothouse with 85.0' height of eye / 97.0' highest fixed point. Bludworth connection system fitted 1999. Married to 95,000BBL double hull barge. Marcon sold to present owners. U.S. Gulf Coast. File: SU21161 Supply Boat - AHTS - 211.1' loa x 49.2' beam x 19.7' depth x 16.1' draft. Built 2004 by Brevik Construction, Norway. Vanuatu flag. GRT: 1,619. Class: ABS A1 Towing Vessel, FiFi 1, AMS, DPS-1, Unrestricted. exp. 06 Jan 2015. Docking & Special Surveys due Jan 2015. Dwt: 2,165lt. Light Disp.: 1,800T. Deck Cargo: 580MT on 440m2 clear deck. FO: 960m3. FW: 350m3. BW: 340m3. Dry Bulk: 180m3 in 4 tanks. Liq. Mud: 310m3. Winch: Nat'l Oilwell waterfall double drum + tuggers. Line Pull: 200MT. Wire Capacity: 2 - 1,200m x 64mm. Stern Roller. Main Engines: 2 x CAT 3608TA total 7,000BHP. 3,200mm 4-blade CP props. Kort nozzles. Stern thruster - 690HP. P/S Tailshaft Surveys due Aug 2017. Bowthruster 690HP. Dynamic Positioning. Bollard Pull: 86MT. Speed 14.5kn. Pumps: FW: 100m3/h. FO: 150m3/h. BW/DW: 150m3/h. Liq. Mud / Brine: 75m3/h. Bulk: 2x25m3/min. Gensets: 2-1,000kW / shaft; 1-260kW / CAT 3406TA, 1-90kVA / CAT450vAC 60Hz. Quarters: 24 (4-1, 6-2, 2-4). AirCon. Galley. Moss 501-80 design, DP-1 AHTS. Rescue boat with davit. “as is, where is”. U.S. Gulf Coast.

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

53

Marcon International, Inc. Tug Boat Market Report – August 2016

File: SU21148 Supply Boat - AHTS - 211.2' loa x 45.3' beam x 22.6' depth x 16.7' draft. Built in 1975 by Eid Verft/Smedvik Mek Verksted. Rebuilt: 2012. Foreign flag. GRT: 1,313. Class: RINA 100A.1.1 Nav. I.L. Re. AP, Oil Rec, Unrestricted Nav. Renewal due 30 Apr 2017. Docking due 18 Mar 2019. Dwt: 1,277mt. Deck Cargo: 800MT on 400m2 clear deck. FO: 820m3. FW: 146.6m3. DW: 1,330m3. Dry Bulk: 110m3 in 4 tanks. Liq. Mud: 187.4m3. Crane: 5T. Winch: Double drum Brattvaag hydraulic waterfall & 2 tuggers. Wire Capacity: 2,700' x 2.5". Stern Roller. Main Engines: 2 x Nohab F216V total 6,950BHP. 2.75m 4-blade Liaaen CP prop(s). Bollard pull GL certified. P/S Tailshaft Surveys due 20 Jun 2018. Bowthruster 410kW. Bollard Pull: 52.7MT. Speed about 12.7kn on 13.58tpd MDO. Genset(s): 3 - 250kVA / Deutz 440/220vAC 60Hz. Quarters: 24 berths total. Standard design UT-704 anchor handling tug supply boat / diving / ROV support / oil recovery vessel. Tanks heating capacity 1,000kW hot water with four rig chain lockers total 120m3. 4 point mooring. 4 Pusness hydraulic winches with 4 - 2,500kg Delta Flipper anchors on 800m x 37mm wire. Suitable for 60-70m water depth operations. Fitted with high accuracy Leica DGPS positioning system. Reportedly very well maintained, in good condition and working on contract until mid-September 2016. MDO consumption: 9.7 / 2.16tpd service / low speed. As brokers, we invite best outright cash offers for Owner's consideration. Black Sea. File: SU21341 / SU21365 Supply Boats - AHTS (2 each) - 213.0' loa x 53.0' beam x 19.0' depth x 13.78' loaded draft. Built in 2005 by Pan-United Shipyard; Indonesia. Vanuatu flag. GRT: 1,868. Class: ABS + A1, Towing Vessel, FiFi 1, OSV AH (E) + AMS, Unrestricted Service. Dwt: 2,016mt. Light Disp.: 1,616T. 113' x 43' clear deck. FO: 510MT. Liq. Mud: 2,400BBL. Crane. Main Engines: 2 x CAT 3608 DITA total 6,600BHP. 2 - CP prop(s). Bowthruster. Bollard Pull: 73T. Speed about 13kn. Genset(s): 2 320kW 60Hz AC. Firefighting. Quarters: 26 persons. Southeast Asia. File: TG67106 Tug - Azimuthing - 105.0' loa x 42.0' beam x 17.6' depth x 13.7' draft. Built 2015 by Chinese yard. Class: ABS + Hull +AMS, Towing Unrestricted, +ABCU, Escort Vessel, UWILD, FiFi-1, OilRec Class 2 (Flash Point >60 C). FO: 189m3. FW: 30m3. Crane: Palfinger knuckle 2T @ 8m. Winch: Ibercisa 200T double drum bow escort & stern tow. Line Pull: 64.5T@9m/m. Wire Capacity: 800m x 52mm. Stern Roller. Main Engines: 2 x CAT 3516C total 6,772BHP. Rolls Royce US255P CP props. Tier 2. 76MT BP astern. Box cooling system. No overboard discharge except AC. Bowthruster 200kW. Bollard Pull: 80MT. Speed 12.5kn free. Pumps: Fire: 2,700m3/h. Gensets: 2-130kW/Volvo; 1-400kW/ PTO 415vAC 50Hz. Shore power. Firefighting: FiFi-1. 2 monitors. Mist & water drenching systems. Foam: 13,000L. Quarters: Up to 10 in 6 cabins. AirCon. Galley. 32m RAstar 3200 newbuilding tugs with sponsoned hull form & foil shaped escort skegs for docking ships in more extreme sea-states where high standard of sea-keeping required. Designed to operate in -20 to 40 C. deg. air & 0 - 32 C. deg. sea temperatures. Towing staple forward. Heavy duty Smith Berger triple pin stern roller. 80mt SWL hold down block integrated into bulwarks. 5T hyd. capstan aft. H2S gas detectors covering entire deck including winch area & engine room intake. 7 color CCTV cameras. Bridge Watch Keeping monitor. CO2 gas smothering. Dispersant 13,000L. Normal operating crew of 4-6 persons. Far East. File: SU21667 / SU21671 / SU21672 / SU21673 Supply Boats - AHTS (4 each) - 217.1' loa x 52.5' beam x 20.3' depth x 16.40' draft. Built in 2015-2016 China. Singapore flag. GRT: 2,950. Class: ABS +A1 (E) OSV, AH, Towing Vessel, FiFi-1, OilRec 1, +AMS, DPS-2, SPS Code. Dwt: 1,800mt. Deck Cargo: 600MT on 450m2 clear deck. FO: 550m3. FW: 350m3. DW: 550m3. Dry Bulk: 150m3 in 4 tanks. Liq. Mud: 470m3. Crane: 2T @ 15m. Winch: 250T MacGregor double drum w/f. Line Pull: 150T@6m/m. Wire Capacity: 2 - 1,200m x 60mm. Stern Roller. Main Engines: 2 x Niigata 8L28H total 6,600BHP. Kort nozzles. Stern Thruster: 8T Berg CP. Bow thrusters 2 - 12T. Bollard Pull: 90MT. Speed 12.8-13.8kn on 16-21m3/d. Gensets: 3- 450kW / CAT, 2- 1,200kW / shaft, 1- 99kW / CAT 415vAC 3Ph 50Hz. Firefighting: 2 - 1,650m3/h pumps. 2 - water/foam monitors. Foam: 10m3. Quarters: 50 in 20 cabins. AirCon. Focal 680 LT design 66m AHTS / oil recovery vessels under construction with delivery May 2015 - July 2017, subject availability at time of commitment. Kongsberg DPS-2 positioning. BNWAS. Hydraulic 250T SWL jaws & 2 hydraulic 250T SWL tow pins. 6T@20m/min MacGregor storage reel. 2 - 10T capstans. 2 - 10T tuggers. FiFi-1. Water curtain. Oil dispersant. Rescue boat. 10MT/d watermaker. 50 man/day sewage treatment. All cabins c/w attached washroom. Far East. File: SU21361 Supply Boat2 – AHTS (2 each) - 213.3' loa x 51.8' beam x 21.3' depth. Built 2016. Foreign flag. Class: ABS. Main Engines: 2 x CAT total 6,436BHP. Dynamic Positioning. Firefighting: FiFi-1. DP2 anchor handling tug suppliers. Delivery May and August 2016. Sale “as is, where is” subject to availability at time of commitment. Southeast Asia. File: TG56000 Tug - Single Screw - 150.0' loa x 35.7' beam x 21.6' depth x 19.00' loaded draft. Built in 1973 by Ulstein Mek. Verksted; Norway. Canada flag. GRT: 722. Class: Built to DNV 1A1 Tug EO, Ice. A. Now CSA Home Trade II. FO: 484.1MT. FW: 26.5MT. BW: 127.2MT. Crane: 1 - 10T SWL SKB. Winch: Norwinch S-500-2T-2 double drum waterfall & quick release hook. Wire Capacity: 2,500' x 2" dia. ea. Main Engines: 2 x MAK 8M25 total 6,436BHP. 1 - CP prop. Repowered Summer 2000. Bowthruster 150BHP. Bollard Pull: 65-74T. Speed about 16kn max. Genset(s): 1 - 720kW shaft; 2 - 175kW / Volvo 220vAC. Ice-classed, strong ocean tower with upper pilothouse. Spare tow wire in cargo hold. Working. Canada East Coast. File: TG63110 / TG63111 / TG63112 / TG63113 Tugs - Azimuthing (4 each) - 110.0' loa x 42.0' beam x 19.0' depth x 26.1' draft. Built in 2009 by Gulf Ship; Gulfport, MS. U.S. flag. GRT: 298. Class: ABS +A1, Escort Vessel, FiFi Class 1, +AMS, Unrestricted. SOLAS exp. May 7, 2019. Dwt: 684lt. FO: 92,343g. FW: 13,477g. BW: 91,652g. Winch: Markey DESDF-48WF. Wire Capacity: 650' x 7.5" circ. Line (2). Main Engines: 2 x CAT 3516C-HD total 6,300BHP. 2 - Rolls Royce UT755 FP prop(s). ABS certified bollard pull 81.319MT. Pump(s): 2 - 5,400gpm/hr (FiFi) / CAT C18 diesel power. Genset(s): 2 - 500kW Kato / CAT C-18, 60Hz AC. Firefighting: 2 - 5,000gpm monitors / remote control + water spray system. Quarters: 6 berths. AirCon. Galley. Forward mounted azimuthing drive. As brokers, we invite best firm cash offers on en bloc or individual basis. “As is, where is” U.S. Gulf Coast.

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

54

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG61132 Tug - Twin Screw - 136.7' loa x 43.2' beam x 23.3' depth x 16.4' draft. Built 1981 by Gul Engineering Pte; Singapore. GRT: 767. Class: GL +100A5 Tug, +MC. Renewal due May 2017. Docking due May 2017. 100m2 clear deck. FO: 325MT. FW: 134MT. BW: 141MT. Winch: Double drum. Main Engines: 2 x EMD 16-645-E7 total 6,140BHP. 2 - FP prop(s). Fitted w/flanking rudders. P/S Tailshaft Surveys due May 2017. Bollard Pull: 70MT. Speed about 12kn on 8MTpd. Genset(s): 2 - 350kW 440vAC. Firefighting: FiFi-1. 2 monitors total 2,400m3/h. 46MT foam. Sewage plant. Oily water separator. Marcon has previously handled the purchase of two newbuildings and sale of one older vessel for this Owner. Mid-East. File: SU19685 Supply Boat - AHTS - 196.9' loa x 51.8' beam x 21.3' depth x 16.73' draft. Built in 2017 by Chinese shipyard. Class: ABS, A1, (E), Towing Vessel, OSV, FiFi 1, + AMS + DPS - 2. Dwt: 1,500T. 400m2 clear deck. Main Engines: 2 x Niigata 6MG28AH total 6,000BHP. 2 - CP props. Bowthruster 2 - 10T. Dynamic Positioning. Bollard Pull: 80T. Genset(s): 3-450kW / CAT C18; 21,000kW; 1-136kW / emerg 415vAC 3ph 50Hz. FiFi-1. New build DP2 AHTS with FiFi 1. Far East. 45 days from MOA. File: SU20344 Supply Boat - AHTS - 203.1' loa x 41.0' beam x 21.0' depth x 13.77' draft. Built i1976 by Yokohama S/Y / Nipponkai Hvy. Ind. Bahrain flag. GRT: 1,243. Class: ABS + A1 (E) + AMS Unrestricted Service. Docking UWILD & Special Surveys due 11 Oct. 2014. Dwt: 1,244mt. Deck Cargo: 450T on 210m3; 24x8.8m clear deck. FO: 636MT. FW: 118MT. BW: 572MT. Dry Bulk: 120MT. Winch: 173T stall ATW - 350 D; 2 tuggers. Line Pull: 150T. Main Engines: 2 x Niigata 12MGV28BX total 6,000BHP. FP prop(s). P/S Tailshaft Surveys due 24 Jul. 2015. Bowthruster 325HP. Bollard Pull: 70.93T. Speed about 8kn on 8.5MTpd. Pump(s): FW: 110MT; FO: 120MT/h. Genset(s): 3 - 160kW / Detroit. Firefighting: 2 monitors. AirCon. Passengers: 15 persons. Rescue boat. Marcon has previously handled purchase of two newbuildings and sale of one older vessel for this Owner. Mid-East. File: TG57004 Tug - Twin Screw - 135.0' loa x 38.0' beam x 20.0' depth. Built 1974 by Main Iron Works; Houma, LA. Rebuilt: 2006. U.S. flag. GRT: 199. ABS Loadline exp. Aug. 26, 2017. FO: 183,000g. FW: 5,000g. Crane: 1-5T hydraulic. Winch: Double drum Intercon DD-225. Line Pull: 115T. Stern Roller. Main Engines: 2 x EMD 16-645E5 total 5,752BHP. FP props. Kort nozzle(s). Bollard Pull: 81T. Speed about 13kn. Genset(s): 2 - 99kW AC. Quarters: 14. AirCon. Galley. Raised foc'stle bow. As brokers only, we invite your best firm cash offers to test after inspection. U.S. Northwest. File: TG57009 Tug - Twin Screw - 136.2' loa x 36.5' beam x 17.0' draft. Built in 1978 by McDermott Shipyard; Amelia, LA. Rebuilt: 1980. U.S. flag. GRT: 199. Class: ABS +A1, Towing Service, +AMS exp. Sept. 2019. FO: 218,000g. FW: 15,800g. Winch: Markey TDSD-36 double drum. Wire Capacity: 2,200' x 2.25" & 2,800' x 2.125". Main Engines: 2 x EMD 16-645E7A total 5,750BHP. 120" x 80-90" 5-blade prop(s). Triple rudder. Speed about 15kn free on 900. Genset(s): 2 - 90kW 120/208vAC 3ph 60Hz. Quarters: 8. AirCon. Triple rudders. As brokers only, we invite your best firm cash offers to test after inspection. U.S. Northwest. File: TG57116 Tug - Twin Screw - 115.0' loa x 30.0' beam x 15.0' depth x 13.3' draft. Built 1968 by Main Iron Works. Foreign flag. GRT: 194. No SOLAS. FO: 80,000g. FW: 4,000g. DW: 4,000g. Winch: Intercon double drum S/S. Line Pull: 125T. Wire Capacity: 2,000' x 2". Main Engines: 2 x EMD 16-645CE5 total 5,750BHP. Last Overhauled: PME top fall ‘83. Bollard Pull: 50ST. Speed about 10kn. Genset(s): 2 - 100kW/GM8V71 / 1 - John Deere 99kW. 8 berths. AirCon. Galley. South America West Coast. File: TG57128 / TG59117 ATB Tugs – Twin Engine / Single Screw (2 each) - 128.0' loa x 36.0' beam x 22.5' depth. Built 1982 / 1981 respectively by McDermott Shipyards; Amelia, LA. U.S. flag. GRT: 279. Class: ABS + A1 Towing + AMS + ACCU in lay-up. Dwt: 412T. FO: 83,600g. FW: 8,929g. Winch: Markey TDS-32. Main Engines: 2 x EMD 16-645E7B total 5,750BHP. Single 12.5' dia VP steering props. Kort nozzles. Automated engine room ABCU. Genset(s): 2 - 210kW; 1 - 55kW. 1 - 1,000gpm fire monitor. Quarters: 12 persons. AirCon. Galley. Two ATB tugs. Tug fitted with Intercon linkage system in 1997. Upper pilot house with 51.35' height of eye. Twin engine/single screw with steerable Kort and controllable pitch. Tug originally mated with 180,000BBL barge. Marcon sold to both present & past owners. Sale “as is, where is”. Keen seller inviting offers. U.S. Gulf Coast. Prompt. File: TG57107 Tug - Twin Screw - 107.0' loa x 26.8' beam x 12.3' depth x 12.65' draft. Built 1953 by Higgins Industries; New Orleans, LA. Rebuilt: 1981. U.S. flag. GRT: 124. Unclassed. No Loadline. FO: 35,000g. FW: 3,250g. Winch: Single drum aft + bow. Wire Capacity: 2,200' x 2". Main Engines: 2 x EMD 16-645 total 5,700BHP. Last Overhauled: 2006. 2 - FP prop(s). Repowered in 2006 @ 27.5T astern BP. Bollard Pull: 42.5T. Speed about 12kn. Genset(s): 2 - 75kW AC. U.S. East Coast. File: TG53097 Tug - Azimuthing - 98.4' loa x 41.3' beam x 18.1' depth x 18.86' draft. Built in 2016. GRT: 499. Class: BV I Hull + Mach, Escort, FiFi 1, Water Spray, Unrestricted Nav. + AUT-UMS, IWS, Water Spray. FO: 186m3. FW: 25m3. BW: 33.4m3. Crane: Palfinger 18500M knuckle. Winch: Split drum escort & 150T brake double drum tow. Line Pull: 45T. Wire Capacity: 1,200m x 52mm. Stern Roller. Main Engines: 2 x CAT 3516C HD total 5,632BHP. 2.6m Schottel SRP 1515 CP prop(s). Bollard Pull astern 64MT. Bollard Pull: 70MT min. Speed 12.5kn+free. Pump(s): Fire: 2 - 1,350m3/h FFS; Genset(s): 2 - 150kW / CAT C7.1 or C9, or 2 - 168kW / Volvo 400vAC 50Hz. Firefighting: Foam: 16.4m2. Waterspray. 2-1,200m3/h water/foam monitors. Quarters: 10 in 6 cabins. Robert Allan Ltd. RAstar 3000 design multi-purpose ASD escort tug currently under construction. Class notations Salvage Tug & Oil Rec. Ship optional. Rec.Oil 33m3 optional. Winch details: Kraaijeveld eq. split drum escort towing winch / windlass with drum capacity of 2 - 200m x 54mm dia UHMWPE synthetic rope, static brake holding load 200T. Hydraulic 150T static holding double drum aft with 800m + 400m 52mm wire capacity aft. Reel winder with drum capacity of 400m 52mm wire optional. Data Hidrolik 70T quick release tow hook, hydraulic tow pins & 130T SWL stern roller. Gas detection system for hydrocarbons. Bunkering station on deck. Electrically heated fore & aft wheelhouse windows. 4.4m GRP service boat. Hempel 5 year paint system. Marcon has sold other 65 tonne bollard pull ASD tugs from this shipyard as sole broker. Mediterranean. End Oct. 2016.

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

55

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG53098 Tug - Azimuthing - 106.6' loa x 38.4' beam x 18.4' depth x 14.10' loaded draft. Built in 2016 by Turkish shipyard. Foreign flag. GRT: 456. Class: BV I + Hull + Mach, Escort, FiFi 1, Water Spray, Unrestricted Nav. + AUT-UMS. FO: 253.5m3. FW: 53.5m3. BW: 70.5m3. Crane: Palfinger PK18500 M knuckle. Winch: Kraaijeveld split drum escort & double drum tow. Stern Roller. Main Engines: 2 x CAT 3516C-HD total 5,632BHP. 2.6m Schottel SRP1515 CP prop(s). Bollard Pull astern 64MT. Bollard Pull: 70MT+. Speed about 12.5kn+free. Pump(s): Fire: 2 - 1,350m3/h FFS; Genset(s): 2 - 150kW / CAT C7.1 or C9; or 2 - 2 - 168kW / Volvo 400vAC 50Hz. Firefighting: 2 - FFS 1,200/300m3/h water/foam monitors. Water spray. Foam 25.5m3. Quarters: 10 in 5 cabins. AirCon. Galley. Newbuilding Cintranaval-Defcar design harbor, escort, FiFi ship docking ASD tug under construction. 200T brake split. Split drum escort towing winch forward with capacity for two 200m x 54mm UHMWPE synthetic lines, with line pull of 70MT. 70T Data Hidrolik quick release, remote tow hook and hydraulic tow pins. Optional Salvage tug class notation with buyer providing required portable equipment. Optional Oil Recovery Services notation. Optional electric reel winder with capacity 400m 52mm wire. 4.4m GRP service boat. Hempel 5 year paint system. BNWAS system. Schottel bowthruster is optional. Marcon sold other sister- ASD tugs from this shipyard as sole broker. Mediterranean. April 2017. File: SU19676 Supply Boat - AHTS - 196.9' loa x 185.0' lbp x 52.5' beam x 18.1' depth x 15.1' draft. Built 2002 by Keppel Singmarine Dockyard Pte Ltd. Panama flag. GRT: 1,592. NRT: 477. Class: ABS + A1, Towing Vessel, FiFi 1, (E) + AMS, Unrestricted Service. Special, Annual & Docking Surveys due 31 Mar 2017. Dwt: 1,787T. Deck Cargo: 500MT on 360m2 clear deck. Deck Load: 7.5T/m2. FO: 508m3. LO: 10m3. FW: 280m3. DW: 778m3. BW: 778m3. Dry Bulk: 150m3 in 4 tanks. Liq. Mud: 206m3. 2-1,590kg stockless anchor(s). Crane: 3T knuckle boom. Winch: 200MT Zicom waterfall; 2 - 10MT tuggers. Line Pull: 150MT. Wire Capacity: 2 - 1,000m x 52mm. Stern Roller. Main Engines: 2 x Deutz SBV9M628 total 5,510BHP at 1,000RPM. Reintjes 1942LAF 3.952:1 gear(s). 2 - 4-blade CP prop(s). Kort nozzle(s). P/S Tailshaft Surveys due 28 Jun 2017. Bowthruster 600BHP. Bollard Pull: 73T. Speed about 11-13kn on 12-13Tpd. Genset(s): 2-350kW/Deutz, 1 - 450kW/shaft, 1-90kW / emerg. 440vAC 60Hz 3Ph. Firefighting: 2 - 1,200m3/h monitors, 1 - 35m3/h emergency pump. Gyro. Autopilot. Radars: 2. GPSs: 2. Fathometer. VHF: 5. Navtex. Satcom. Steering: Rolls Royce. Quarters: 18 officers & crew. AirCon. Galley. Passengers: 12 berths. Firefighting / standby safety vessel / AHTS. 300MT SWL hydraulic retractable shark jaws & 2 - 200T vertical hydraulic tow pins. Zicom capstan. Spare rope reel. Joystick control. Water maker: 5m3/day. 30 person sewage treatment plant. 2 lounges. 15 person (9+6) fast rescue craft. Fully equipped survivor treatment area with 2 berths. Mid East. File: TG53119 / TG53135 Tugs - Azimuthing (2 each) - 110.7' loa x 40.0' beam x 17.7' depth x 13.87' loaded draft. Built in 2015 by Chinese shipyard. Singapore flag. GRT: 497. Class: ABS +A1 Towing Vessel, Escort Vessel, (E), +AMS, FiFi 1, Unrestricted Navigation. FO: 205,300L. FW: 44,800L. BW: 39,600L. Crane: Hydraulic Palfinger 1T@5m. Winch: Hydraulic 175T brake single drum aft. Wire Capacity: 800m x 52mm aft. Main Engines: 2 x CAT 3516C total 5,440BHP. US255 FP Rolls-Royce prop(s). Bollard pull astern 63T. Fuel oil purifier. Bollard Pull: 70mt. Speed about 8-13kn. Pump(s): GS/Fire: 25m3/h. BW/Bilge: 25m3/h. FO: 20m3/h. Emerg. Fire: 25m3/h. Fire: 2,700m3/h. Genset(s): 2 - 120ekW / Cummins 415vAC 50Hz 3Ph. Shore power connection. Firefighting: 2-1,200m3/h water&300m3h foam FSS monitors. Waterspray. Foam 10m3. Quarters: 10 crew. AirCon. Galley. Two newbuilding Ramparts 3300AV design, FiFi-1, ASD escort tugs available direct from shipyard. 70T SWL pneumatic, wheel house control tow hook. 1 - 3T elec./hyd. capstan. Fore & aft towing staples. Dispersant 10m3 with 2 spray nozzles. 800 x 400mm & 480 x 300mm bow, 300 x 300mm side and 480 x 300mm stern fendering. 15 person sewage treatment plant. Yard may also consider long term bareboat charter to qualified candidates. Far East. Prompt. File: SU18558 Supply Boat - AHTS - 180.0' loa x 40.0' beam x 15.1' depth x 12.8' draft. Built 1974 by Burton Shipyard; Port Arthur, TX. Rebuilt: 1993. Bahrain flag. GRT: 704. Class: GL 100 A5 Tug MC. Docking due Jun. 2016. Intermediate Machinery due 11 Jun. 2018. Dwt: 798mt. Deck Cargo: 550MT on 301.36m2 clear deck. FO: 444MT. FW: 230MT. BW: 300MT. Dry Bulk: 4,920ft3. Winch: Smatco 66 DAW double drum waterfall. Line Pull: 113MT. Wire Capacity: 7,620m x 52mm. Stern Roller. Main Engines: 3 x EMD 16-645E2 total 5,400BHP. 3 - FP props. Bowthruster 300HP. Bollard Pull: 62MT. Speed about 8-10kn on 5.7-8.2MTpd. Genset(s): 2 -150kW / GM; 1 - 55kW / GM 220/110vAC 60Hz. Quarters: 10 crew. AirCon. Galley. Passengers: 8. Rescue boat. Welder. Marcon has previously handled the purchase of two newbuildings and sale of one older vessel for this Owner. Marcon has also sold two sister-vessels from other Owners. Mid-East. File: SU18938 Supply Boat - AHTS - 189.0' loa x 45.0' beam x 18.0' depth x 14.7' draft. Built 2006 by PT Batamec; Batam, Indonesia. Vanuatu flag. GRT: 1,421. Class: ABS + A1, Towing, FiFi 1, OSV, AH (E) + AMS, Unrestricted. SS/DD due 01/16. Dwt: 1,230mt. Light Disp.: 1,391T. 94' x 38' deck. FO: 360MT. Liq. Mud: 1,560BBL. Main Engines: 2 x CAT 3606 DITA total 5,400BHP. 2 - CP prop(s). Bollard Pull: 68T. Speed 11.5-13kn. Genset(s): 2 - 400kW; 2 - 844kW. Quarters: 34 persons. Africa West Coast. File: TG52132 Tug - Twin Screw - 133.7' loa x 45.6' beam x 23.4' depth x 17.10' loaded draft. Built in 1974 by Oy Wartsila Ab; Helsinki, Finland. Rebuilt: 1993. Canada flag. GRT: 768. Class: LR + 100A1, Ice Class FS 1A, LMC. Dwt: 186mt. FO: 216m3. FW: 77.3m3. BW: 115.8m3. Winch: Seebeck 50MP tow hook. Main Engines: 4 x Wartsila 824TS total 5,245BHP. 2 - FP Lips 260RPM new 06/91 prop(s). Diesel electric. 4 - 925kW 500vDC gensets & 2 - 2,378HP elect. Motors. Bowthruster 576HP. Speed about 14kn free. Genset(s): 1 - 90kW / Valmet; 3 - 131kW / Saab 390vAC 50Hz. MOTIVATED OWNERS. Ice Class 1A Super, articulated pusher tug with raised pilothouse. Taisei Engineering articouple linkage system. 430kW bow thruster on barge. Six person rescue boat with davit. Suitable for Finnish coastal & Baltic Sea service including Skagerrak & Kattegat and previously classed as Ice Breaker, Baltic Service. Available with barge HB42678. Drawings, deadweight scale, photographs, class status and price ideas for tug and barge available on request. Unit/s open for Sale or Charter. Canada East Coast.

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

56

Marcon International, Inc. Tug Boat Market Report – August 2016

File: SU20068 Supply Boat - AHTS - 200.9' loa x 52.5' beam x 19.7' depth x 16.70' loaded draft. Built in 2010 by Malaysia. Malaysia flag. GRT: 1,896. Class: ABS + A1, FiFi Class 1, OSV (E) + AMS + ACCU. Docking & Special Surveys due 27 Oct. 2015. Dwt: 1,804mt. Deck Cargo: 500MT on 360m2 clear deck. FO: 853m3. FW: 330m3. DW: 413m3. BW: 413m3. Dry Bulk: 142m3 in 4 tanks. Liq. Mud: 245m3. Crane: 2T @ 10m. Winch: 180T brake double drum optional. Line Pull: 150MT. Wire Capacity: 1,000m x 58mm. Stern Roller. Main Engines: 2 x Yanmar 6EY26 total 5,220BHP. 2 - 2.8m 3-blade CP prop(s). Kort nozzle(s). 4,500nm @ 11kn. P/S Tailshafts due 27 Oct. 2015. Bowthruster 8T. Dynamic Positioning. Bollard Pull: 52MT. Speed about 11-13kn on MGO. Pump(s): FO: 150m3/h; FW/DW: 150m3/h; Liq. Mud: 2 - 100m3/h; Fire: 2 - 1,500m3/h. Genset(s): 3 - 250kW; 1 - 800kW / shaft; 1 - 80kW / emergency. Firefighting: FiFi 1; 1 - 1200m3/hr monitor; Foam 7.2m3. Quarters: 45 total. AirCon. Galley. DP1 upgradeable. Fuel: 247.6m3 / 606.3m3 ship / cargo. Detergent: 14m3 with dispersant system. Fitted with vertical rubber bow fender. 1 - 10T tugger. 2 - 5T capstans. 300mt SWL shark jaws & towing pin optional. 3 - 440vAC 3Ph 50Hz reefer conditions. 5MT/d watermaker. Lifesaving equipment for 56 persons. MARPOL I, IV, V, VI pollution control. Southeast Asia. File: SU19066 Supply Boat - AHTS - 190.3' loa x 45.3' beam x 18.1' depth x 15.58' loaded draft. Built in 2009 by Hin Lee Zhuhai Shipyard; China. Kuwait flag. GRT: 1,197. Class: ABS +A1, Towing Vessel, FiFI-1, OSV-AH, (E), Unrestricted Service. Dwt: 1,380T. Main Engines: 2 x CAT 3516B-HD total 5,220BHP. 2 - CP prop(s). Bowthruster 1,130HP. Bollard Pull: 60T. Speed about 10-13.5kn on 9MTpd. Genset(s): 3 - 320kW/ CAT. Conan Wu 58m design anchor handling tug supply vessel. Mid-East. File: SU19243 Supply Boat - AHTS - 180.8' loa x 42.7' beam x 22.1' depth x 16.50' light x 19.5' loaded draft. Built 1984 by Jiangnan Shipyard; China. GRT: 1,085. Class: RINA. Currently in Drydock. Dwt: 1,251T. Deck Cargo: 500MT on 330m2 clear deck. FO: 476m3. FW: 460.5m3. DW: 167m3. Dry Bulk: 123.7m3 in 3 tanks. Crane: 1-1.5T @ 5m. Winch: Hyd. Brattvaag double drum waterfall 200T brake. Line Pull: 125MT. Wire Capacity: 900m x 52mm. Stern Roller. Main Engines: 2 x Daihatsu 6DVM26 total 5,200BHP. 2 - 4-blade CP prop(s). Kort nozzle(s). Bowthruster 5.6T. Bollard Pull: 60MT. Speed about 10-13.5kn on 10-14Tpd. Pump(s): FO: 100m3/hr; DW: 100m3/hr; FW: 100m3/hr. Genset(s): 2 - 220kW / Daihatsu, 2 - 400kW 450vAC 50Hz. Firefighting: 2 - 1,400m3/hr pumps, 2 - 1,200m3/hr monitors. Quarters: 30 berths in 13 cabins. AirCon. UT-714 design. Two Hydraulic Brattvaag pennant wire storage winches. 1-8T tugger. Shark Jaw. Ulstein hydraulic tow pins. Mid-East. File: TG52131 Tug - Twin Screw - 131.2' loa x 42.7' beam x 17.7' depth x 15.02' loaded draft. Built in 1982 by Korea Shipbuilding & Engineering. Bahrain flag. GRT: 626. Class: BV I Tug Coastal Area. exp. 2017. Last DD/SS July 2013. Dwt: 464mt. FO: 360T. FW: 40T. BW: 87T. Crane: 2 - 3T. Winch: Hydraulic I.P. Huse. Main Engines: 2 x MWM TBD441 16K total 5,200BHP. 3-180kW / MWM TD232V8. Bowthruster 350HP. Bollard Pull: 69T. Speed about 10kn on 8MTpd. Pump(s): FW: 55MT/h; FO: 77MT/h. Genset(s): 3 - 180kVA AEG / MWM 60Hz AC. Firefighting: 52m3 foam capacity. Three fire monitors. Galley. Mid-East. File: SU19356 Supply Boat - AHTS - 192.6' loa x 47.9' beam x 18.0' depth x 15.6' draft. Built 2009 by Yuexin Shipbuilding Co. Indonesia flag. GRT: 1,441. NRT: 433. Class: RINA (exp. June 2019) + BKI. 354m2 clear deck. FO: 473m3. FW: 230m3. DW: 466m3. Dry Bulk: 187m3. Liq. Mud: 259m3. Windlass: 2 x 10T @ 12m/min Mentrade. Crane: 1 x 2T @ 12m Jiangyin. Winch: Double drum waterfall Mentrade. Line Pull: 150T. Wire Capacity: Towing 1,000m, anchor 500m x 56mm. Stern Roller. Main Engines: 2 x CAT 3516B total 5,150BHP at 1,600RPM. CP prop(s). Kort nozzle(s). Bowthruster. Bollard Pull: 67T. Genset(s): 1 x 100HP CAT C4.4 DITA @ 1,500RPM. FiFi Class 1. Quarters: 42. KCM 58.7m Design. Southeast Asia. File: SU18163 Supply Boat - AHTS - 193.9' loa x 45.3' beam x 18.0' depth x 14.14' loaded draft. Built in 2011 by Guangzhou Panyu Lingshan SY, China. Vanuatu flag. GRT: 1,123. Class: ABS A1, Fire Fighting Vessel Class 1, OSV, AMS, DPS-1, ISM, ISPS, MLC (SS due 9/2016 commenced drydocking 04/16), full SOLAS. Dwt: 1,135mt. Deck Cargo: 500mt on 4,000ft2 clear deck. FO: 419.5M3. FW: 494.2M3. DW: 178m3. BW: 165.7M3. Dry Bulk: 113m3 in 4 tanks. Liq. Mud: 134.5m3. Crane: 1 - Elect. Hyd. 2T @ 6m. Winch: 1 - Double drum. Line Pull: 120T. Wire Capacity: 1,000m x 54mm (none fitted). Stern Roller. Main Engines: 2 x CAT 3516B HD total 5,150BHP. 2 - Berg CP prop(s). Stern thruster: 8T. Bowthruster 8T. Dynamic Positioning. Bollard Pull: 68.68MT. Speed about 12.5-13.5kn. Genset(s): 2 - 450kW 415v 50Hz 3ph; 2 - 400kW / CAT 415v 50Hz. Firefighting: 2 - 1,200m3/hr wheelhouse controlled mon.; 11.6m3 foam tank. Quarters: 30 total. AirCon. Galley. DPS-1 PSV / AHTS. Third sister in series built by same owners (under close supervision), with enhanced station keeping ability. 8 ton each tunnel type bow and stern thrusters. Controllable pitch propellers and independent rudders. Marine Technologies DP-1 dynamic positioning system. Stern roller currently removed (lashed down on back deck) with stern extension of 13.45' / 4.1m added (included in current 193.85' LOA) for previous charter (to extend clear deck to 4,000ft2 for PSV duties in Mexico). Original LOA 55m/180.4' with 337m2/3,625ft2 clear deck without stern extension. All modifications approved by ABS. Towing/AH winch, tuggers, tow pins and shark jaws remain fitted. Anti-pollution equipment with 11.6m3 detergent tank. Vessel just completing successful 2 year charter in Mexico and is now available for prompt sale or charter in Texas. Owners interested to receive all offers for consideration. Vessel recently drydocked with credit / commencement of special survey due September 2016. U.S. Gulf Coast. File: SU19333 / SU19334 Supply Boats - AHTS (2 each) - 193.0' loa x 48.0' beam x 18.0' depth x 15.60' loaded draft. Built in 2009 by Guangzhou Hangtong Shipbldg; China. Vanuatu flag. GRT: 1,537. Class: TBC ex BV I, Supply Vessel, FiFi 1, Water spray, AH. Dwt: 1,475mt. Light Disp.: 1,477T. 98' x 38' clear deck. Liq. Mud: 1,630BBL. Main Engines: 2 x CAT 3516B-HD total 5,150BHP. 2 - CP prop(s). Bollard Pull: 65T. Speed about 13.5-14.4kn. Genset(s): 3 - 427kW 50Hz AC. Firefighting. Quarters: 42 persons. KCM 58.7m design. Mid-East.

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

57

Marcon International, Inc. Tug Boat Market Report – August 2016

File: SU19261 Supply Boat - AHTS - 194.3' loa x 49.0' beam x 20.0' depth x 16.20' loaded draft. Built in 2005 by Fujian Southeast Shipyard, China. Vanuatu flag. GRT: 1,677. Class: ABS + A1, Towing Vessel, FiFi - 1, OSV, AH, (E), + AMS, + DPS-1, SOLAS. Exp. 21 Dec. 2015. Docking due 27 Nov 2015. Dwt: 1,400mt. Deck Cargo: 500MT on 350m2 clear deck. 1 hatch(es). FO: 540m3. FW: 360m3. DW: 400m3. Dry Bulk: 6,600ft3 in 4 tanks. Liq. Mud: 370m3. Winch: Mentrade 200MT brake double drum +2 tuggers & 2 capstans. Wire Capacity: 1,000m x 56mm. Stern Roller. Main Engines: 2 x CAT 3516B total 5,150BHP. Berg Nibral CP prop(s). Kort nozzle(s). High performance stream line rudders. P/S Tailshaft Surveys due 17 Jan 2017. Bowthruster 325kW. Dynamic Positioning. Bollard Pull: 65MT. Speed about 10-13kn on 12-19m3/d MGO. Pump(s): FO: 150m3/h, FW: 125m3/h, DW: 100m3/h. Genset(s): 3 - 320kW / CAT3408 & 1 - 52kW. Firefighting: FiFi -1. 2 - 1550m3/h fire pumps. 2 monitors. Quarters: 42 in 15 cabins. AirCon. Galley. Two DP-1 AHTSs built 2005/06. See also SU19264. As brokers only, we invite your best firm cash offers for Owners consideration on either an individual or en-bloc basis. Kongsberg joystick. 300T SWL Shark jaws. Elect./hyd tow pins. Elect./hyd rope reel. Water curtain all round. Oil dispersant system. Offered for outright sale strictly “as is, where is” without any warranties or representations except as to ownership. U.S. Gulf Coast. File: SU18056 / SU18062 / SU18066 Supply Boats - AHTS (3 each) - 180.4' loa x 45.3' beam x 18.0' depth x 15.61' loaded draft. Built in 2011 by Nanjing East Star Shipbldg.; China. Foreign flag. GRT: 1,161. Class: ABS +A1, Towing Vessel, OSV AH, (E), +AMS Unrestricted Service. Dwt: 1,000mt. 330m2 clear deck. FO: 400m3. FW: 380m3. DW: 114m3. BW: 150m3. Dry Bulk: 117m3 in 4 tanks. Liq. Mud: 100m3. Crane: 5T SWL @ 8m Palfinger. Winch: 150T brake McGregor Plimsoll hydraulic double drum waterfall. Line Pull: 100T. Wire Capacity: 2 - 1,000m x 50mm. Stern Roller. Main Engines: 2 x CAT 3516B-HD total 5,150BHP. 2 Nibral 4-blade FP prop(s). Kort nozzle(s). Bollard Pull ABS certified. Bowthruster 5T. Bollard Pull: 60T. Speed about 11-12.5kn. Pump(s): FO Cargo: 1-150m3/h, FW: 1-189.3m3/h, DW: 90m3/h. Liq. Mud: 2-70m3/h. Genset(s): 3 - 260kW / CAT 3406C, 1 96kW /CAT. Shore power. Firefighting: 1-600m3/hr pump. 1-300m3/h monitor. Water spray. Foam tank-11m3. Quarters: 28 in 10 cabins. AirCon. Galley. KCM 55M design anchor handling tug supply vessel. Rope reel winch for 1,000m 50mm wire. Two MacGregor-Plimsoll tow pins. 200T SWL shark jaw. 80T SWL Smit towing bollard. 2 - 5T tuggers. Four 6-persons liferafts. One outboard engine rescue boat for 6 persons. Rescue zones on both sides of vessel. Mid-East. File: SU19421 Supply Boat - AHTS - 194.4' loa x 49.1' beam x 19.7' depth x 16.20' loaded draft. Built in 2005 by Fujian South East; China. Vanuatu flag. GRT: 1,677. Class: ABS + A1 Towing Vessel, FFV-1, OSV, AH (E) +AMS. Dwt: 1,350T. Light Disp.: 1,568T. Deck Cargo: 500T on 90' x 40' clear deck. FO: 459T. FW: 360T. DW: 400T. Dry Bulk: 186m3. Liq. Mud: 370m3. Winch: Plimsoll Twin Drum. Line Pull: 110.25T. Wire Capacity: 3,280' x 2". Stern Roller. Main Engines: 2 x CAT 3516B total 5,150BHP. 2 CP prop(s). Kort nozzle(s). Range: 5,660nm. Bowthruster: 250kW. Bowthruster 350kW. Bollard Pull: 65T. Speed about 8-13kn on 135-226gph. Pump(s): Cargo. Genset(s): 3 - 315kW / CAT 3408 415v 50Hz; 1 - 65kW 415v 50Hz. Firefighting: 2 - 1,550m3/h @ 13bar/pump; 1 - 300-1,200m3 & 1 - 1,200m3 monitor. Quarters: 42 (4-1, 3-1, 8-4). AirCon. Modern AHTS for sale. Karmoy Tow Pins / Karmoy 300T SWL Shark Jaws. 2 - 10T Tuggers, 2 - 5T Capstan. Africa West Coast. File: SU19462 Supply Boat - AHTS - 194.4' loa x 49.1' beam x 20.0' depth x 16.24' loaded draft. Built in 2007 by Fujian Southeast S/Y; Fuzhou, China. Singapore flag. GRT: 1,678. Class: ABS + A1, Towing Vessel, FiFi 1, OSV AH (E) + AMS. Unrestricted service. Special Survey 04/2017. Dwt: 1,385mt. 340m2 clear deck. FO: 537m3. FW: 360m3. DW: 400m3. Dry Bulk: 187m3 in 4 tanks. Liq. Mud: 370m3. Crane: 1 - 3T @ 9m reach. Winch: 200T hyd. double drum waterfall brake Karmoy; 2 - 10T tuggers. Line Pull: 150T. Wire Capacity: 1,000m x 52mm. Stern Roller. Main Engines: 2 x CAT 3516B total 5,150BHP. 2 - Berg CP prop(s). Endurance: 14 days. Bowthruster 5T. Bollard Pull: 64MT. Speed about 10-13kn. Pump(s): FO: 150m3/h, FW/DW: 100m3/h, Dryblk: 2 - 13m3/h, Liqmd: 2 - 75m3/h. Genset(s): 3 - 340kW / CAT3408; 1 - 52kW / Perkins 415vAC 3ph 50Hz. Firefighting: 2 1,400m3/hr @ 13 bar pumps; 2 - water monitors. Quarters: 42 bunks. AirCon. Galley. DN59M design multi-purpose anchor handling tug supply vessel. Rescue Zone fitted. Karmoy 200T SWL Shark Jaws & tow pins. Two capstans: 5MT @ 15m/min. Storage reel capacity 1,000m 52mm wire. Stern roller: 4m x 1.6m dia. SWL 200T. Foam 12m3 / Detergent 12m3. Water maker 3Tpd. 6 x 25 man liferafts. Marpol compliant sewage treatment for 50 persons. Africa South Coast. Prompt. File: SU19660 Supply Boat - AHTS - 196.9' loa x 51.8' beam x 21.3' depth. Built in 2015. Foreign flag. Class: ABS. Main Engines: 2 x CAT total 5,150BHP. Dynamic Positioning. Firefighting: FiFi-1. DP1 anchor handling tug suppliers. Two available. Further technical details & delivery times available on request. Sale “as is, where is”. Southeast Asia. File: SU19264 Supply Boat - AHTS - 194.3' loa x 49.0' beam x 20.0' depth x 16.20' loaded draft. Built in 2005 by Fujian Southeast Shipyard; China. Vanuatu flag. GRT: 1,677. Class: ABS + A1, Towing Vessel, FiFi -1, OSV, AH, (E), + AMS, + DPS-1, SOLAS. Exp. Mar 2016. Docking and special due Mar 2016. Dwt: 1,400mt. Deck Cargo: 500MT on 350m2 clear deck. FO: 540m3. FW: 360m3. DW: 400m3. Dry Bulk: 6,600ft3 in 4 tanks. Liq. Mud: 370m3. Winch: Mentrade 200MT brake double drum +2 tuggers & 2 capstans. Wire Capacity: 1,000m x 56mm. Stern Roller. Main Engines: 2 x CAT 3516BHD total 5,140BHP. Berg Nibral CP prop(s). Kort nozzle(s). P/S Tailshaft Surveys due 05 Sep 2015. ABS Certified bollard pull 63.9MT. Bowthruster 325kW. Dynamic Positioning. Bollard Pull: 65MT. Speed about 10-13kn on 12-19m3/d MGO. Pump(s): FO: 150m3/h, FW: 125m3h, DW: 100m3/h. Genset(s): 3 - 320kW / CAT3408 & 1 - 52kW. Firefighting: FiFi -1. 2 - 1550m3/h fire pumps. 2 monitors. Quarters: 42 in 15 cabins. AirCon. Galley. Two DP-1 AHTSs built 2005/06. See also SU19261. As brokers only, we invite your best firm cash offers for Owners consideration on either an individual or en-bloc basis. Offered for outright sale strictly “as is, where is” without any warranties or representations except as to ownership. U.S. Gulf Coast.

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

58

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG51107 Tug - Azimuthing - 98.4' loa x 39.3' beam x 18.0' depth x 14.76' loaded draft. Built in 2016 by Chinese Shipyard. Foreign flag. GRT: 399. Class: BV I +HULL +MACH, AUT-UMS, Tug, FiFi 1, Water spraying, Harbor Operation. FO: 240m3. FW: 70m3. Winch: 200T brake Jebsen & Jessen combo fwd. Line Pull: 30T@10m. Wire Capacity: 120m x 100mm. Stern Roller. Main Engines: 2 x CAT 3516C total 5,150BHP. Rolls Royce US-205 FP prop(s). Oily water separator. Bollard Pull: 70T. Speed about 12kn. Pump(s): FiFi: 1 - 2,760m3 @ 115MLC. Genset(s): 2-150kW / CAT C7.1 400v 50Hz, 1-30kW / Cummins 380v 50Hz 3Ph. Firefighting: 2-1,200/300m3/hr water/foam monitors. Quarters: 2-1 man, 5-2 man cabins. AirCon. Galley. Five newbuilding, multipurpose ASD tugs for harbor operations. First ready for delivery within 1 month from contracting. Second unit 3 months from contracting. Delivery timing of further units on negotiated basis. 80T SWL disc type tow hook aft. Direct from owners for whom we have handled a previous tug sale. In compliance with the SOLAS requirements, Oil spill dispersant boom. Southeast Asia. File: TG50156 / TG50157 Tugs - Twin Screw (2 each) - 147.6' loa x 41.3' beam x 17.4' depth. Built in 2009 by Rushan Shipbuilding; China. Singapore flag. GRT: 874. Class: BV I Hull, Mach, Tug. Special Service, AH, Unrestricted. Formerly ABS + A1, Towing Vessel, FiFi, AH (E) + AMS. Dwt: 539mt. 200m2 clear deck. FO: 486m3. FW: 266m3. DW: 77m3. Crane: 10MT SWL. Winch: 225T brake double drum waterfall. Line Pull: 150T@6m. Wire Capacity: 1,000m x 58mm. Stern Roller. Main Engines: 2 x Niigata 6MG28HX total 5,000BHP. FP prop(s). Kort nozzle(s). Endurance 40 days. Bowthruster 441kW. Bollard Pull: 70T. Speed about 10-13kn on 10-15MTpd MGO. Pump(s): Fire: 1,500m3/h & 1 - 30m3/h. Genset(s): 3 - 300kW, 1 - 80kW 415vAC 50Hz. Firefighting: FiFi 1/2. Water mist system & CO2 in engine room. Quarters: 24 in 10 cabins. AirCon. Galley. Anchor handling tug / utility vessel. 2 - 10T tuggers. 2 - 5T capstans. 2 - 100T SWL tow pins. 1 - 200T SWL shark jaw. 6 person rescue boat with davit. Open for outright sale or long term charter with purchase option to qualified operators. Southeast Asia. Prompt. File: SU14747 Supply Boat - AHTS - 147.6' loa x 41.3' beam x 17.4' depth x 15.10' loaded draft. Built in 2001 by Nam Cheong Dockyard Sdn Bhd; Malaysia. Australia flag. GRT: 799. Class: ABS +A1 Towing Vessel, OSV, AH, E +AMS, Unrestricted Service. Dwt: 744mt. 310m2 clear deck. FO: 438m3. FW: 222m3. BW: 74m3. Winch. Stern Roller. Main Engines: 2 x Bergen KRMB-8 total 4,980BHP. 2 - CP prop(s). Bowthruster 450HP. Speed about 12kn. Genset(s): 3 - 240kW / CAT. Firefighting: FiFi 1/2. 2 - 600m3/h monitors, 1 - 1,500m3/h pump. Foam: 20m3. Quarters: 12. AirCon. Galley. Southeast Asia. File: TG50123 Tug - Twin Screw - 121.4' loa x 37.4' beam x 16.2' depth x 13.1' draft. Built 1998 by Jiangsu Wuxi Shipyard; China. Mexico flag. GRT: 465. Class: ABS + A1 (E) + AMS Towing, SOLAS. Dwt: 335mt. 39' x 28' clear deck. FO: 79,885g. FW: 22,164g. Crane: 7.5MT hydraulic. Winch: 140T single drum brake Brattvaag + 10T tugger. Line Pull: 75MT@15m/m. Wire Capacity: 650m x 52mm. Stern Roller. Main Engines: 2 x Yanmar 6N280EN total 4,932BHP. 3,000mm Kaplan 4-blade props. Kort nozzles. Ulstein 45-TV 240kW bow thruster. Bowthruster 3.5MT. Bollard Pull: 79.5T. Speed about 13kn on 1,600Lpd max. Genset(s): 3 - 300kW / GM 8V92TA 380v 3ph 50Hz. Firefighting: 360m3/hr FiFi pump w/ 2 monitors. Quarters: 14 crew. AirCon. Galley. Tow pins / shark jaws. 2 - 6T wire storage reels capacity 750m 52mm. Endurance 7,200nm @ 12 kn. 2 - 4m dispersant booms. U.S. Gulf Coast. File: SU19229 / SU19230 Supply Boats - AHTS (2 each) - 192.5' loa x 48.5' beam x 18.0' depth x 14.76' draft. Built 2009 by Guangzhou Hangtong Shipbldg. Singapore flag. GRT: 1,459. Class: ABS + A1, AH Towing, FiFi 1, OSV AH (E) + AMS. Unrestricted. Dwt: 1,350T. Deck Cargo: 500MT on 350m2 deck. FO: 482m3. FW: 213m3. DW: 463m3. Dry Bulk: 187m3 in 4 tanks. Liq. Mud: 259m3. Winch: 200T brake Mentrade double drum w/f AHT. Line Pull: 150T@6m/m. Wire Capacity: 2 x 1,000m x 56mm. Stern Roller. Main Engines: 2 x Wartsila 9L20 total 4,900BHP. 2 - Wartsila Lips CP prop(s). Kort nozzle(s). Bollard Pull ABS tested Sept. 2014. P/S Tailshafts due 21 Aug. 2019. Bowthruster 2 - 500kW CP. Dynamic Positioning. Bollard Pull: 65MT. Speed about 10-13.5kn on MGO. Pump(s): Fire: 2 - 1,550m3/h. Genset(s): 3 - 320kW / Volvo D30A; 1-99kW / Volvo 415vAC 50Hz 3ph. Firefighting: FiFi 1: Monitors: Water/Foam - 300-1,200m3/hr, 1 - 1,200m3/hr. Quarters: 42 in 14 cabins. AirCon. Galley. KCM 58.7 design DP-1 anchor handling tug supplier. Elect. / hyd. Mentrade rope reel for 1,000m 56mm wire. Elect. / hyd. tow pins with top flaps. 300MT SWL Karmfork shark jaws. 2 - 5T capstans. 2 - 10T tuggers. Marine Technologies Bridge Mate DP-1 positioning with 2 - DGPS and joystick. Foam/Detergent: 13m3 each. Oil dispersant system with 2 6m spray booms. All cabins c/w attached washroom. Hospital. 6 person rescue boat. R.O. watermaker. Sewage treatment for 40. Vessel working. Southeast Asia. Prompt. File: TG48128 Tug - Twin Screw - 105.0' loa x 37.0' beam x 17.0' depth. Built in 2009. U.S. flag. Class: Built for ABS Loadline. FO: 102,229g. FW: 9,976g. BW: 77,271g. Sister-tug powered with CAT 3516B-HDs developing 4,800HP at 1,600RPM. Uncompleted. Keel laid in 2009. Hull is complete minus wheels & coolers. 1/2" bottom plate & side shell. 3/8" deck. 1.25" keel. Houses / superstructure fabricated and not installed. Sister to 4,800BHP raised foc'stle bow tug built in 2008 with upper pilothouse for working 80,000bbl, 337' x 74' x 25', double hull, ocean tank barges in notch. U.S. Northeast. File: SU18954 Supply Boat - AHTS - 188.6' loa x 45.3' beam x 18.0' depth x 14.76' draft. Built 2004 by Yuexin, China. Singapore flag. GRT: 1,370. Class: BV I +Hull, +Mach Supply Vessel - AH, FiFi-1, Unrestricted. Dwt: 1,473T. Deck Cargo: 600MT on 350m2 clear deck. FO: 370m3. FW: 200m3. DW: 360m3. Dry Bulk: 187m3 in 4 tanks. Liq. Mud: 255m3. Winch: 1 - 200MT brake double drum elect. / hyd. tow. Line Pull: 150MT. Wire Capacity: 1,000m x 50mm. Stern Roller. Main Engines: 2 x CAT 3516B-TA total 4,800BHP. 2 - CP prop(s). Kort nozzle(s). Bowthruster 5T. Bollard Pull: 63MT. Speed about 13.7kn max on 13MTpd MGO. Pump(s): FO: 150m3/h; FW / DW: 100m3/h; Liq. Mud: 70m3/h. Genset(s): 3 - 315kW; 1 - 65kW / Perkins 415v 3ph 50Hz. Firefighting: 2 - 1,541m3/h pumps incl. waterspray; 2 - 1,200m3/h monitors. Quarters: 42 in 14 cabins. AirCon. Galley. Fitted with shark jaws & tow pins. Foam / Detergent 13m3 each. Hospital with 2 berths. 5MTpd reverse osmosis watermaker. Kawasaki KICS joystick control integrating props & bow thruster. 6 - 25 person life rafts. Southeast Asia. Prompt.

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

59

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG43122 Tug - Twin Screw - 120.0' loa x 36.7' beam x 18.0' depth x 11.10' light draft x 14.80' loaded draft. Built in 2005 by ABG Shipyard Ltd.; Surat, India. Panama flag. GRT: 497. Class: RINA +Hull + Mach A1 FiFi Vessel Class 1, AMS, Rec-Oil Class 1 & 2. Unrestricted. Dwt: 362mt. Deck Cargo: 290MT on 147.8m2 clear deck. FO: 250m3. FW: 50m3. BW: 25m3. Crane: 3.5T @ 10.2m Palfinger. Winch: Brattvaag TW 1200/150H single drum. Line Pull: 15T@10m/mi. Wire Capacity: 700m x 51mm. Main Engines: 2 x Wartsila 9L20 total 4,800BHP. 2 - Lips CP prop(s). Kort nozzle(s). Bowthruster 100kW. Bollard Pull: 65.6MT. Speed about 10-13.9kn on 7-11MTpd. Pump(s): Fire: 2 - Kvaerner 1,350m3/h. Genset(s): 3 - 210kVA / Volvo Penta 415vAC 50Hz. Firefighting: FiFi 1. 2 - 1,200m3/h remote monitors. Anchor handling tug capable of pushing, towing, anchor work, external FiFi, & anti-pollution. Storage reel. Shark jaw and 200T Tow pins. Tugger winches & Capstans. Oil dispersant system. Mid-East. Prompt. File: TG48134 Tug - Azimuthing - 111.3' loa x 35.5' beam x 17.7' depth x 16.90' loaded draft. Built in 1986 by Carrington Slipways; Newcastle. Australia flag. GRT: 470. Class: ABS +A1, Towing Service, (E), +AMS, +ACCU. Drydocking due Jan. 2016. Special & Annual Surveys due Mar. 31, 2016 - Lapsed. Dwt: 613mt. 18m2 clear deck. FO: 194m3. FW: 62m3. BW: 63.27m3. Crane: 11MT Hiab Sea Crane 110. Winch: 80MT Norwinch single drum fwd. & aft., Hydraulic tow pins. Line Pull: 18MT. Wire Capacity: 700m x 44mm. Main Engines: 2 x Yanmar 8Z280-ET total 4,800BHP. 2,400mm Duckpeller prop(s). Bollard pull astern: 58MT. P/S M/E 35,242h / 35,197h as of Sept. 27, 2015. Bollard Pull: 59MT. Speed about 12.5kn max on 215L/h. Genset(s): 2 175kVA / CAT 3406T 415vAC 50Hz 3Ph. Firefighting: FiFi: 1/2. 1,000Lpm & 3,000Lpm monitors. Fire curtain. Foam 14m3. Quarters: 14 berths 8 cabins. Firefighting / salvage tug. Carrington tow hook. 5-metre rigid inflatable Arab MOB boat., Shore-based portable cradle. Spare tow wire on power reel. 2 Sunshine search lights. Australia. Prompt. File: TG45097 Tug - Twin Screw - 95.6' loa x 30.3' beam x 14.4' depth x 11.9' draft. Built 2003 by Damen; Holland. Mexico flag. GRT: 269. Class: BV I +Hull, +Mach, Tug, Unrestricted thru Dec 2018. Docking due Mar 2017. Dwt: 207mt. 90m2 deck. FO: 159.1m3. FW: 15m3. Crane: 6T deck crane. Winch: AH / Towing Winch & Tow Hook 65T SWL. Line Pull: 18MT@1m/min. Wire Capacity: 550m x 2". Stern Roller. Main Engines: 2 x CAT 3516B-HD total 4,750BHP. 2,650mm Promarin bronze FP props. Kort nozzles. P/S Tailshaft Surveys due Mar 2018. Bollard Pull: 67MT. Speed about 12.5kn free. Genset(s): 2 - 86kVA / Cummins 6BT 5.9 & 1 - 60kVA / Cummins 440vAC 60Hz. Firefighting: 1,400m3/h. 9.6m3 foam. Quarters: 8 in 4 cabins. AirCon. Galley. Ocean towing & anchor-handling. 3.0m3 dispersant. Megator dispersant set. Previously chartered through Marcon. Mexico East Coast. File: TG46099 Tug - Twin Screw - 96.8' loa x 32.8' beam x 15.7' depth x 13.8' draft. Built 2002 by Detroit Chile S.A. Mexico flag. GRT: 332. Class: DNV +1A1 Tug. Class Renewal & Docking Survey due Dec. 2017. Dwt: 180T. Light Disp.: 330mt. FO: 148m3. FW: 38m3. BW: 2.3m3. Crane: Hiab 22.7MT. Winch: Navalsul fore winch & 55DTS aft tow. Line Pull: 15T. Wire Capacity: 725m x 50mm. Main Engines: 2 x MTU 12V4000 total 4,660BHP. Navalsul Kaplan 4-blade props. Kort nozzles. Abt. 5,400HP@2,100RPM. P/S Shaft Surveys due 06/03/2018 / 12/03/2017 resp. Bollard Pull: 72MT. Speed about 10-12kn free on 450Lph. Genset(s): 2 70kW / MTU 6R-099TA31 AC. Firefighting: 500m3/hr. Foam 17.37m3. Quarters: 13 persons. AirCon. Galley. Harbor tug with Towmaster / shutter-rudder steering system. Mexico Gulf Coast. File: TG47118 Tug - Twin Screw - 118.1' loa x 35.4' beam x 17.7' depth x 13.29' loaded draft. Built in 2004 by Guangzhou Hangtong Shipbldg; China. Foreign flag. GRT: 499. Class: ABS +A1, Towing Vessel, (E), +AMS, Unrestricted Service. Special Survey due 17 Sept. 2019. Docking due 23 Nov. 2017. Dwt: 150T. Deck Cargo: 5MT min. on 302m2 clear deck. FO: 26,420g. FW: 7,926g. BW: 133.42m3. Main Engines: 2 x Yanmar 6N280-EN total 4,635BHP. 2 - Bronze FP prop(s). Endurance: 1,500mi. P/S Tailshaft Surveys - Water due 23 Nov. 2019. Bowthruster 1.5T. Bollard Pull: 50T. Speed about 11-12kn on 203-224g/hr. Genset(s): 2 - 125kW / Yanmar 6HAL2-TN. Firefighting: 1 - 1,200m3/hr pump. Quarters: 11 berths. AirCon. Galley. Mid-East. File: SU18847 Supply Boat - AHTS - 188.6' loa x 38.4' beam x 18.4' depth x 14.80' loaded draft. Built in 1974 by J.G. Hitzler, W. Germany. Rebuilt: 2001. Bahrain flag. GRT: 910. Class: LR 100 A1. Dwt: 927T. Deck Cargo: 500LT on 98.4' x 32.8' clear deck. FO: 400MT. FW: 132T. DW: 296MT. Dry Bulk: 186m3. Crane: 10MT. Winch: Hitzler. Line Pull: 125T. Wire Capacity: 2,624' x 57mm. Stern Roller. Main Engines: 2 x MWM TBD441V12 total 4,600BHP. 2 - 3-blade CP prop(s). Bowthruster 400HP. Bollard Pull: 60MT. Speed about 10-14kn. Genset(s): 2 - 140kVA / MWM 175HP 400v 50z; 1 - 420kVA 606amp 400v 50Hz. Firefighting: 600m3 pump + 10,000L monitor. Quarters: 23 in 12 cabins. AirCon. Galley. Mid-East. File: TG45084 Double Hull Tug - Azimuthing - 84.5' loa x 42.7' beam x 17.1' depth x 17.39' loaded draft. U.K. flag. GRT: 272. Class: LR +100 A1, Escort Tug, FiFi 1, Unrestricted, MCA WB Area 1 (up to 150mi from safe haven). Dwt: 101mt. Light Disp.: 638mt. Winch: 75T Escort fore & aft. Main Engines: 2 x CAT 3512C-HD total 4,562BHP. 2 - Schottel SRP-3000 CP prop(s). Kort nozzle(s). Two separate engine rooms & separate generator room. Bollard Pull: 55T. Speed about 11kn. Genset(s): 2 - 155kW / CAT C6.6 415vAC 50Hz. Firefighting: FiFi-1. 2,400m3/hr + waterspray. Quarters: 2-1, 2-2 cabins. AirCon. Galley. Unique double ended, tunnel hull patented design tug built after four years of R&D solely for shiphandling. High displacement hull with two large structural keels. High stability - GM 3.6m. 55 tonnes pull in all directions at full power with zero degree list. Side stepping speed of 7kn. 10 seconds from full speed ahead to full speed sideways. Working equally well from bow or stern. Integral "W" heavy duty underwater fendering. Intuitive response with follow up in-line controls. Unified design - one model for 55T & 70T bollard pull versions. Further technical details and videos on request. First tug available for clients, their experienced skippers and shipyards interested in licensing to inspect and enjoy a "hands-on" demonstration of capabilities. Marcon appointed as exclusive broker for North and Latin American markets for newbuildings and licensing of shipyards for construction. Marcon has previously fixed one newbuilding for Owners and handled several sales for shipyard which built first tug of this type. Mediterranean.

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

60

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG45117 Tug - Twin Screw - 95.6' loa x 29.0' beam x 14.4' depth x 12.00' loaded draft. Built in 2000 by BV Scheepswerf Damen; Gorinchem. Foreign flag. GRT: 269. Class: LR +100A1 Tug, LMC. Docking, Special and Annual Surveys 22 May 2016. Intermediate due 22 May 2018. Dwt: 207T. 90m2 clear deck. FO: 37,000g. FW: 30T. Crane: 6T deck. Winch: AH / towing & 65T SWL tow hook / Cummins diesel power. Line Pull: 18MT@1m/mi. Wire Capacity: 550m x 2". Stern Roller. Main Engines: 2 x CAT 3516B-TA total 4,588BHP. 2 - Bronze FP prop(s). Kort nozzle(s). P/S Tailshaft Surveys due May 2016. Bollard Pull: 64T. Speed about 12.5kn. Genset(s): 2 - 69kW / Cummins, 440vAC 60Hz. Firefighting: 1- 1,400m3/hr water / foam monitor. 9.6m3 foam. Quarters: 8 in 4 cabins. AirCon. Galley. Ocean towing and anchor-handling tug. Stern roller. 5.3m3 dispersant. Megator DP20 82LPM dispersant set. Available due to renewal of fleet direct from Owners for whom Marcon has handled numerous sales, purchases and charters over the years. Mexico East Coast. File: TG54121 Tug - Twin Screw - 118.1' loa x 36.1' beam x 19.0' depth x 14.1' draft. Built 1976 by Am Liaeen A/S, Norway. Canada flag. GRT: 471. Class: DNV +A1 Tug EO Ice Class disc. /C.S.I. Home Trade II., Int'l LL. Dwt: 264T. FO: 235m3. FW: 22m3. BW: 17m3. Crane: 900kg @ 6.2m. Winch: Hyd. Brattvaag s/s SL-60 + 60ST tow hook. Line Pull: 60T. Wire Capacity: 1,000m x 52mm & 375m x 52mm. Main Engines: 2 x Alco 251-12F total 4,500BHP. Liaaen 4-blade CP prop(s). Kort nozzles. Turbo. Joystick. Bowthruster 200BHP. Bollard Pull: 50T. Speed 13kn max. Genset(s): 2 - 160kVA 220vAC 50Hz Shaft; 1 - 52kW; 1 - 25kW. Quarters: 15 men. Built to DNV +A1 Tug EO, Ice Class "C". Joystick maneuvering. Two chain lockers 700m x 4mm. 3T hyd. capstans. M/Es de-tuned to 4,400HP, but max output 5,350BHP. Reportedly good condition. Working. Canada East Coast. File: SU13729 Supply Boat - AHTS - 137.8' loa x 36.1' beam x 16.1' depth x 11.50' light draft x 13.61' loaded draft. Built in 2016 by Chinese shipyard. Foreign flag. GRT: 497. Class: BV I + Hull + Mach Special Service Multi-purpose AHT Unrestricted Navigation. 160m2 clear deck. FO: 326m3. FW: 83.3m3. Crane: 1.25MT/8MT @ 9.75m/2m. Winch: 180T double drum 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. 2 - 4-blade FP prop(s). Kort nozzle(s). Bowthruster 200kW. Bollard Pull: 60MT. Speed about 15.5kn. Pump(s): FO: 40m3/h; FW: 36m3/h. Genset(s): 2 - 245kW / CAT 3406mSG 400v 50Hz; 1 - 60kW / Cummins CCFJ-60Y. Firefighting: 2 - monitors 1,000m3/h @135m; Foam: 9.07m3. Quarters: 26 persons. AirCon. Galley. AH Tug. Hydraulic shark jaw: 200MT. Tow pin: 200MT. Far East. Prompt. File: SU19645 / SU19629 / SU19630 Supply Boats - AHTS (3 each) - 196.8' loa x 46.6' beam x 19.7' depth x 12.46' light draft x 16.70' loaded draft. Built in 2016 / 2015 / 2015 respectively by South China Shipyard Ltd; China. Hong Kong flag. GRT: 1,555. Class: BV I +Hull, +MACH, Supply Vessel, Tug, Special Service AHT, OSV, FiFi 1, Waterspray, Unrestricted. Dwt: 1,500mt. Deck Cargo: 600MT on 330m2 clear deck. FO: 585.37m3. FW: 321.57m3. DW: 259.26m3. Dry Bulk: 136m3 in 4 tanks. Liq. Mud: 231.53m3. Crane: 2T @ 10m reach. Winch: 200T hyd. double drum AHT brake; 2 - 10T hyd. tugger. Line Pull: 70T. Wire Capacity: 1,000m x 52mm. Stern Roller. Main Engines: 2 x Cummins QSK60-M total 4,400BHP. 2 - 4-blade FP prop(s). Bowthruster 350kW. Bollard Pull: 65.5T. Speed about 13.88kn. Pump(s): 2 - 60/30m3/h Desmi Liqmd. Genset(s): 2-245kW/CAT 3406C; 1-350kW/CAT C18; 1-100kW/Deutz 400v 50Hz. Firefighting: FiFi 1. 2 - 1,200m3/h fire monitors; 1 - 2,400m3@120m fire pump. Quarters: 46 persons in 21 cabins. AirCon. Galley. 200T Strong jaw and tow pin. Two 5T @ 15m/min hydraulic capstans. Far East. Prompt. File: TG44148 Tug - Twin Screw - 124.6' loa x 38.7' beam x 15.7' depth x 12.4' draft. Built 2010 by Malaysian yard. GRT: 149. Class: ABS + A1, + AMS, AHT, OSV, SOLAS. Recently completed SS. Dwt: 314T. Deck Cargo: 300T on FO: 320m3. FW: 150m3. Crane: 2T @ 6m. Winch: Macgregor-Plimsoll double drum 150T brake; 2 - 10T tuggers. Wire Capacity: 2-1,000m x 52mm. Stern Roller. Main Engines: 2 x Cummins QSK60 total 4,400BHP. 2,300mm Kaplan FP props. Kort nozzles. Bowthruster 5T. Bollard Pull: 65T. Speed 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. Two 5T capstans, 1,000m storage reel, & Plimsoll Smit Berger shark jaws / tow pins. Southeast Asia. File: TG43106 Tug - Twin Screw - 100.1' loa x 29.5' beam x 15.6' depth x 12.30' loaded draft. Built in 1985 by Aumaz Ast. Unidos; Mexico. Mexico flag. GRT: 343. Class: GL +100 A5, Tug, +MC, Mach, Hull. Dwt: 215mt. FO: 156MT. FW: 38MT. BW: 30.89MT. Winch: None / Tow bits fore & aft. Main Engines: 2 x Deutz SBV0M628 total 4,354BHP. 2 - FP prop(s). Kort nozzle(s). Bollard Pull: 39.5MT. Speed about 10kn max on 120-145gph. Genset(s): 2 - 100kW / Volvo Penta. Firefighting: 2 - 150m3/hr monitors. Quarters: 9 (2-1, 2-2, 1-3 cabins). AirCon. Galley. Range=33 days, or 8,000nmi. Working harbors/coastal service. Class current and reportedly in good operating condition. Click on the more information link above for current photos, drawing and owner's spec. Available for sale from close owners. Owners will consider all offers. TG30198 also from same owners. Mexico West Coast. File: TG43123 / TG43124 Tugs - Twin Screw (2 each) - 124.0' loa x 33.1' beam x 19.9' depth x 18.0' draft. Built 1967 / 1966 respectively by Gulfport Shipbldg.; Port Arthur. U.S. flag. GRT: 194. ABS + A1 Towing + AMS. 5yr DD and SS overdue. FO: 70,378g. FW: 2,467g. Winch: Markey TYS-36 single drum. Wire Capacity: 2,200' x 2.25". Main Engines: 2 x EMD 12-645E5 total 4,300HP. Gensets: 2 - 125kW / GM8V71. Quarters: 8 in 7 staterooms. Elevated pilot house. Raised foc'stle bow. 45' height of eye. Previously handled 19,200DWT barge. Reportedly running condition, but in official lay-up with ABS. U.S. Northeast. File: TG46110 Tug - Twin Screw - 110.0' loa x 32.1' beam x 12.5' depth x 13.5' draft. Built 1976 by Delmar Systems, Larose LA. Rebuilt: 1990. U.S. flag. GRT: 168. Class: ABS Loadline. exp. Oct. 2013. Last drydocking Oct. 2011. FO: 78,000g. FW: 5,000g. Winch: Double drum Intercon / GM6-71. Line Pull: 225T. Wire Capacity: 2,400' x 2" & 2,000' x 2.25". Main Engines: 2 x CAT 3606 total 4,300BHP. 2 - 101" x 70" FP prop(s) on 10" shaft(s). Kort nozzle(s). Fitted with shaft brakes. Originally powered by Polar Nohabs. Bollard Pull: 59.12T. Pump(s): Fire. Genset(s): 2 - 75kW / GM6-71 208vAC. Quarters: 11 bunks. AirCon. Galley. Sheer bow. Single drum bow winch with wildcat. Currently idle / laid up. Keen Seller inviting serious cash offers. U.S. Northwest. Prompt.

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

61

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG43143 Tug - Twin Screw - 115.0' loa x 107.0' lbp x 32.0' beam x 18.0' depth x 16.5' draft. Built 1975 by Wiley Manufacturing Co., MD. U.S. flag. GRT: 289. NRT: 197. Class: ABS +A1 Towing Service, +AMS exp. Feb. 28, 2019. FO: 57,300g. FW: 3,730g. Winch: Almon Johnson Single Drum. Wire Capacity: 2,000' x 2". Main Engines: 2 x EMD 12-645E7 total 4,300BHP. Genset(s): 2 - 100kW. Quarters: 11 crew. AirCon. Galley. U.S. East Coast. File: SU19642 Supply Boat - AHTS - 196.9' loa x 42.0' beam x 17.0' depth x 14.80' draft. Built in 1983 by BS Clelands SB; U.K. Sierra Leone flag. GRT: 806. Class: BV I +Hull, +Mach, Unrestricted Navigation. Completed Special Survey & Drydock Oct. 19, 2015. Dwt: 1,035T. Deck Cargo: 512LT on 111' x 32' clear deck. FO: 97,433g. FW: 108,345g. Dry Bulk: 169.9m3. Crane: 1 -2T @ 15'. Winch: Brattvaag double drum; 11,000lbs tugger. Line Pull: 143.75T. Wire Capacity: 5,350' x 2.5". Stern Roller. Main Engines: 2 x Mirrlees 6MB275 total 4,224BHP. 2 - CP prop(s). Kort nozzle(s). Bowthruster 5.5mt. Dynamic Positioning. Bollard Pull: 50MT. Speed about 8-14kn on 63-190gph. Genset(s): 2 - 500kW, 1 - 250kW / CAT 4306 440vAC 60Hz. Firefighting: 1,200m3/hr. Quarters: 24 men. AirCon. Galley. Joystick control & DPI (equivalent - not classed). Nautronix ask 4001. Independent rudders. Stabilizing tanks/bilge keels. 2 Hydraulic tow pins. 2 - 11,000lbs capstans. Mediterranean. File: TG39002 Tug - Twin Screw - 139.0' loa x 34.0' beam x 17.2' depth x 14.1' draft. Built 1976 by Burton Shipyard; Port Arthur, TX. Rebuilt: 2000. U.S. flag. GRT: 198. Class: ABS +A1, Towing Service +AMS. Dwt: 647T. FO: 129,000g. FW: 12,300g. BW: 122,400g. Winch: Double drum Intercon 74077. Line Pull: 100T. Wire Capacity: 2 x 2,200' 2". Main Engines: 2 x EMD 16-645E6 total 4,200BHP. 2 - 115"x88" 4-blade Stainless prop(s). 12,400nm range @ 10kn. Bollard Pull: 52.5ST. Speed about 10-12.5kn on 104-179gph. Genset(s): 2 - 99kW / GM8V71 450v 60Hz. Quarters: 8 berths. AirCon. Galley. Hydraulic tow pins. 65 ton electric barge winches. Sold to current Owner by Marcon. Tanks coated at last drydocking. Low engine hours. Tug is 'turn-key' and ready to work. Keen Seller / Inviting offers. U.S. West Coast. Prompt. File: TG42131 Tug - Twin Screw (2 each) - 131.2' loa x 37.4' beam x 16.2' depth x 13.1' draft. Built 2003 by Wuxi Shipyard; China. Vanuatu flag. GRT: 497. Class: ABS + A1 (E) + AMS Anchor Handling, Towing. Dwt: 281mt. 49.2'x26.2' deck. FO: 310m3. FW: 82m3. Winch: Brattvaag Double drum waterfall 140MT brake. Line Pull: 75MT. Wire Capacity: 1,000m x 52mm. Main Engines: 2 x MAK 8M20 total 4,200BHP. 2,900mm Mang. Bronze FP prop(s). Kort nozzle(s). 7,200nm range @ 12kn. Bowthruster. Bollard Pull: 55MT. Speed about 13kn free on 14,080Lpd. Pump(s): 2 - 360m3/h fire pumps. Genset(s): 3 - 300kW / CAT 380vAC 3ph 50Hz. Firefighting: 2 fixed foam / water monitors 3,000Lpm ea. @ 120m head. Quarters: 18 crew. Ocean going/ anchor handling tugs. Karmfork combo towpins & two shark jaws. 2-10T tuggers. 2-8T wire storage reels. Southeast Asia. File: TG40203 / TG40204 Tugs - Twin Screw (2 each) - 134.5' loa x 32.8' beam x 15.1' depth x 10.49' loaded draft. Built in 2009 by Pacific Ocean Engineering / Trading. Singapore flag. GRT: 573. Class: ABS, +A1 , Towing Service, FiFi 1, OSV AH, (E), +AMS, Unrestricted. Special Survey due Jul 2019. Docking due May 2017. Dwt: 316mt. 100m2 clear deck. FO: 270m3. FW: 77m3. Crane: 2T SWL with 6m outreach. Winch: 150mt brake double drum elec./hyd. 3T capstan & 5T tugger. Line Pull: 100T. Wire Capacity: 750m x 50mm. Stern Roller. Main Engines: 2 x Mitsubishi S8U-MPTK total 4,058BHP. 2 - 4-blade CP prop(s). Kort nozzle(s). Bollard pull ABS certified. P/S Tailshaft Surveys due 13 May 2019. Bowthruster 3.6T. Bollard Pull: 49.55mt. Speed about 12kn max. Genset(s): 3 - 294kW / Volvo Penta. Firefighting: FiFi-1. 2 - 1,500m3/h pumps with remote foam/water monitors. Quarters: 18 in 8 cabins. AirCon. Galley. AHT / Utility vessel. 200T SWL tow pins & shark jaws. 6 person semi-rigid rescue / workboat. 4 415vAC 32A reefer points. Oil dispersant system with 2 - 5m spray booms. 3T/d watermaker. Southeast Asia. File: SU13737 Supply Boat - AHTS - 137.1' loa x 33.6' beam x 15.1' depth x 10.5' draft. Built 2009 by Jiangsu Wuxi SY/ Pacific Ocean Eng. GRT: 573. Class: GL +100 A5 OSV, Tug AH exp. 13 Nov 2019. Docking due 15 May 2017. Load Line Annual due 13 Feb 2017. Dwt: 332mt. 6.6m x 14m clear deck. FO: 230m3. FW: 77m3. Crane: 2T @ 6m cargo. Winch: 150T brake towing; 1 - 5T tugger. Line Pull: 100T. Wire Capacity: 2 - 750m x 50mm. Main Engines: 2 x Mitsubishi S8U-MPTA total 4,000BHP. 2 - FP prop(s). P/S shafts due 15 May 2019. Bowthruster 3.6T. Bollard Pull: 50T. Speed about 11kn max on 6.5-7.5m3/day. Genset(s): 3 225kW / Volvo Penta D9A-HE 415vAC. Quarters: 18 in 8 cabins. Standard design BluMarlin 41m AHTS originally built to ABS. 200T SWL tow pins. 150T SWL shark jaw. Lifesaving and firefighting fitted to AMSA and class standards. Fast rescue craft. Full rigid 6 person MOB. Open for sale or charter. Southeast Asia. File: TG29118 Tug - Tractor - 119.4' loa x 36.2' beam x 12.8' depth x 17.0' loaded draft. Built in 1970 by N.V. Schps. H. Bodewes; Netherlands. Curacao flag. GRT: 359. Class: ABS +A1 Towing Service +AMS Unrestricted Navigation. Dwt: 163T. FO: 110MT. FW: 30MT. Winch: Double drum. Main Engines: 2 x Stork Werkspoor 8FEHD240 total 4,000BHP. Voith Schneider prop(s). Repowered '80. Bollard Pull: 39MT. Speed about 5-6kn. Genset(s): 2 - 77kW, 380vAC 50Hz. Firefighting: 2 monitors. Open for employment or outright sale. Maximum height 17m. Caribbean. File: TG40131 Tug - Twin Screw - 105.0' loa x 30.0' beam x 13.8' depth x 12.0' draft. Built in 1976 by Halter Marine; Pierre Part, LA. Rebuilt: 1998. U.S. flag. GRT: 183. Class: ABS Loadline (exp. June 29, 2016). FO: 65,946g. FW: 6,830g. BW: 8,690g. Winch: Intercon double drum DD-200 / GM6-71. Wire Capacity: 2,000' x 2" each drum. Main Engines: 2 x CAT 3516 total 4,000BHP. 2 96" x 65" FP prop(s) on 9" shaft(s). Speed about 12kn free. Genset(s): 2 - 75kW / Delco /GM6-71. AirCon. Galley. Raised foc'stle bow. 2-65T Beebe winches. Sold to current owner via Marcon. Totally rebuilt in 1998. New interior, etc. U.S. Northwest.

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

62

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG40141 Tug - Twin Screw - 139.6' loa x 34.3' beam x 17.1' depth x 12.00' light draft x 15.00' loaded draft. Built in 1977 by Burton Shipyard; Port Arthur, TX. U.S. flag. GRT: 198. Class: ABS Loadline exp. June 21, 2017. Main Engines: 2 x EMD 16-645E6 total 4,000BHP. 2 - FP prop(s). Genset(s): 2-99kW. AirCon. Galley. Upper pilot house 80' highest fixed point. U.S. Gulf Coast. File: TG40178 Tug - Azimuthing - 102.0' loa x 37.0' beam x 13.0' depth x 10.60' loaded draft. Built in 1999 by North American Shipbuilding. U.S. flag. GRT: 389. Class: ABS +A1, +AMS exp. July 2019. Main Engines: 2 x CAT 3516TA total 4,000BHP. Bollard Pull: 45T. Genset(s): 2 - 150kW. Forward mounted azimuth drives. U.S. Southeast. File: TG40175 Tug - Twin Screw - 127.9' loa x 34.1' beam x 16.4' depth x 11.48' draft. Built 2001 by Cheoy Lee Shipyards; Hong Kong. GRT: 499. Class: BV I 3/3 (E), + Hull + Mach, Tug Unrestricted. Surveys overdue. Dwt: 240T. Light Disp.: 775T. FO: 250T. FW: 60T. BW: 47m3. Crane: 1 - 3T @ 7.5m MKG. Winch: 80T brake Plimsoll hyd. double drum. Line Pull: 45T@5m/min. Stern Roller. Main Engines: 2 x CAT 3516B-TA total 4,000BHP. 2 - FP 4-blade prop(s). Kort nozzle(s). Range of 4,000nm. Oil dispersant tank 2m3. Detergent tank 9m3. Bowthruster 3T. Bollard Pull: 45T. Speed about 12.5kn max on 830Lph. Genset(s): 2 - 125kW / CAT3306TA 220/380vAC 60Hz. Firefighting: 1 - 25,000gph pump & monitor. Quarters: 14 berths. AirCon. Galley. 775T displacement Khiam Chuan Marine design, raised foc'stle anchor handling tug. 4 - 15 person liferafts. Mid-East. Prompt. File: TG40226 Tug - Azimuthing - 115.5' loa x 32.2' beam x 14.4' depth x 10.83' loaded draft. Built in 2000 by Penglai Bohai Shipyard; China. Indonesia flag. GRT: 378. Class: BV I Tug, +Hull, +Mach. Docking & Renewal due Aug. 24, 2016. BKI +A100 (I) P Tug Boat, +SM. FO: 73m3. FW: 39m3. Main Engines: 2 x Daihatsu 6DKM-26 total 4,000BHP. 2 - FP Aquamaster US 205 prop(s). P/S Tailshaft surveys due Oct. 28, 2016. Bollard Pull: 50.5T. Speed about 12kn. Genset(s): 2 -99kW / Volvo Penta D5A-BTA 400/220vAC 50Hz. Firefighting: 500m3/h @ 110m external. AirCon. Galley. Southeast Asia. File: TG40230 Tug - Twin Screw - 121.4' loa x 37.4' beam x 16.2' depth x 13.3' draft. Built 2013 by Shin Yang Shipyard; Miri. GRT: 476. Class: NKK. Dwt: 292mt. Main Engines: 2 x Cummins KTA-50-M2 total 4,000BHP. Kort nozzles. Bollard Pull: 47MT. Conan Wu design 37m AHT. Up-to six close sister tugs in the 3,600 - 4,400BHP range potentially direct from Owners. Mid-East. File: SU19019 Supply Boat - AHTS - 191.1' loa x 40.0' beam x 14.0' depth x 12.0' draft. Built i 1980 by Halter Marine; New Orleans, LA. Foreign flag. GRT: 750. Class: ABS +A1(E) Towing Service disc. Dwt: 1,200mt. Deck Cargo: 550T on 107' x 31' clear deck. FO: 59,920g. FW: 20,900g. DW: 165,396. Dry Bulk: 6,000ft in 6 tanks. Liq. Mud: 1,344BBL. Winch: Smatco 66DAW 250 waterfall + 1 - 5T tugger. Line Pull: 150T. Stern Roller. Main Engines: 2 x EMD 16-645 total 3,900BHP. 2 - FP prop(s). Bowthruster 300HP. Bollard Pull: 41MT. Speed about 11-13kn on 11-13.8Tpd. FO 440gpm. DW 440gpm. Genset(s): 2-90kW/GM8V71. Firefighting: 1,000gpm fire monitor. Quarters: Total 19 in 8 cabins. AirCon. Galley. File: SU19022 Supply Boat - AHTS - 190.0' loa x 40.0' beam x 14.0' depth x 12.0' draft. Built in 1980 by Quality Shipyard, Houma, LA. GRT: 740. Class: BV I, +Hull, +Mach, Unrestricted Nav. Completed Special Survey on Aug. 19, 2015. Dwt: 914mt. Deck Cargo: 530MT on 274.5m3 clear deck. FO: 167.6m3. FW: 240.9m3. DW: 172.4m3. Dry Bulk: 164.2m3 in 6 tanks. Liq. Mud: 198.7m3. Winch: Smatco double drum; 4.53T Tugger. Line Pull: 113.4T. Wire Capacity: 2 - 777m x 2". Stern Roller. Main Engines: 2 x EMD 16-645E6 total 3,900BHP. 93" x 71" 4-blade prop(s). Bowthruster 300HP. Bollard Pull: 35.3MT. Speed about 11-13kn. Genset(s): 2 - 99kW / GM 8-V71 440vAC 60Hz. Firefighting: 113m3/hr fire monitor. Quarters: 19 berths. AirCon. Mediterranean. File: SU19041 Supply Boat - AHTS - 191.0' loa x 40.0' beam x 14.0' depth x 12.0' draft. Built 1980 by Halter Marine. Rebuilt: 2013. Honduras flag. GRT: 750. Class: ABS +A1 Towing, Ice C0, +AMS, Unrestricted. Special Survey due Jan. 2018. Docking due Dec. 2017. Class suspended. Dwt: 1,200mt. Deck Cargo: 515T on 355m2 deck. FO: 272m3. FW: 78m3. DW: 486m3. Dry Bulk: 153m3. Liq. Mud: 271m3. Crane: 19MT @ 2m. Winch: Intercom SD200 single drum + 10T tugger. Line Pull: 54MT. Wire Capacity: 762m x 38mm. Stern Roller. Main Engines: 2 x EMD 16-645CE total 3,900BHP. 2 - FP prop(s). P/S Tailshaft Surveys due Jan. 2018. Bowthruster 300HP. Bollard Pull: 50MT. Genset(s): 2 - 99kW / GM8V71 440vAC 60Hz. Firefighting: 1,100gpm Aurora fire monitor. Quarters: 18 (2-1, 2-2, 3-4). KEEN SELLER. Vessel reportedly good condition. Idle since rebuilt / overhauled to ABS standards in 2012, including main engines, aux engines fully o’hauled complete change of liners, pistons, bearing etc. Southeast Asia. File: SU19546 Supply Boat - AHTS - 195.0' loa x 42.0' beam x 15.5' depth x 13.5' draft. Built 1976 by Halter Marine; Lockport, LA. Foreign flag. GRT: 747. Class: ABS until 10/2008. Dwt: 971mt. Main Engines: 2 x EMD 16-645E2 total 3,900BHP. 105" FP props. Kort nozzles. Originally powered by 645E7s converted to E2s in ‘97. North Sea stacks. Bowthruster 370kW. Speed 9kn. Gensets: 2 - 200kW. Marcon previously fixed several charters and handled sale of vessel for previous owners. South America West Coast. File: TG39114 Tug - Twin Screw - 109.8' loa x 30.5' beam x 14.8' depth x 12.50' loaded draft. Built in 1975 by Main Iron Works; Houma, LA. U.S. flag. GRT: 199. Class: ABS Loadline exp. July 11, 2020. FO: 63,422g. FW: 1,741g. Winch: Smatco single drum. Wire Capacity: 2,200' x 1.25". Main Engines: 2 x EMD 16-645E2 total 3,900BHP. 2 - FP prop(s). Kort nozzle(s). Genset(s): 2 75kW. AirCon. Galley. Flanking rudders. 45' height of eye with upper pilot house. U.S. Northeast.

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

63

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG39134 Tug - Twin Screw - 106.9' loa x 34.0' beam x 15.2' depth x 13.60' loaded draft. Built in 1982 by Jakobsen Shipyard, Inc.; NY. U.S. flag. GRT: 290. Class: ABS +A1, Towing Vessel, +AMS. FO: 54,700g. FW: 3,000g. Winch: Intercon single drum. Wire Capacity: 2,300' x 2.25". Main Engines: 2 x EMD 16-645E6 total 3,900BHP. 2 - FP prop(s). Kort nozzle(s). Firefighting: 1 2,000gpm monitor. AirCon. Galley. Flanking rudders. Upper pilot house fitted with 45' height of eye installed 2014. U.S. Northeast. File: TG39147 Tug - Twin Screw - 104.2' loa x 36.3' beam x 16.4' depth x 15.5' draft. Built 1969 by Halter Marine. U.S. flag. GRT: 198. Class: ABS +A1 Towing, +AMS, Unrestricted exp. April 2017; Next DD due April 2017. FO: 73,074g. FW: 5,017g. Winch: Intercon single drum 200. Wire Capacity: 2,000' x 2". Main Engines: 2 x EMD 16-645E2 total 3,900BHP. FP 115" x 90" prop(s). 3,000gpm fire pump. Genset(s): 2 - 125kW. 2 monitors. Upper pilot house with 47' height of eye. U.S. Southeast. File: TG39135 Tug - Twin Screw - 135.0' loa x 34.7' beam x 19.9' depth x 18.10' loaded draft. Built in 1972 by Adelaide Shipyard; Australia. Rebuilt: 2000. Canada flag. GRT: 585. Class: LR + 100 A1 towing, LMC. (Laid up / LR Class suspended). Light Disp.: 649mt. FO: 276T. FW: 22T. Winch: Double drum Burrard. HJ-D (Anchor/Tow). Wire Capacity: 2,400' x 2.25". Main Engines: 2 x EMD 16-645 total 3,900BHP. Last Overhauled: 2003. CP prop(s). Kort nozzle(s). 07/03 Installed Factory rebuilds / zero hours. Range - 8,000nm. Bowthruster 1.74T. Bollard Pull: 55MT. Speed about 13.5kn. Genset(s): 1 - 200kW / Paxman; 1 - 200kW / GM 8V-92; 1 - 15kW AC. Firefighting: 2 dual water/foam monitors, 5,400gpm / 8,100gpm. Quarters: 14 berths/10 cabins. AirCon. Galley. Towmaster rudder nozzle system. Full conversion of the power source from DC to AC. Upper pilot house and Bludworth linkage system installed. Owner very keen seller. Inviting all offers. Last drydocked 2012. U.S. Gulf Coast. File: TG39149 Tug - Twin Screw - 100.0' loa x 30.1' beam x 12.4' depth. Built in 1977 by Chromalloy American Corp. U.S. flag. GRT: 182. Class: ABS Loadline exp. Aug. 9, 2016. FO: 40,000g. FW: 14,700g. Winch: None. Main Engines: 2 x EMD 16-645E2 total 3,900BHP. 2 - FP 4-blade 86" x 56" prop(s). Repowered 1982. Bollard Pull: 32T. Genset(s): 2 - 60kW / GM6-71 (July 2016 = 22,000hrs since overhaul). AirCon. Galley. Harbor tug. Fitted with vertical capstan and H-bitt. Tug was recently dry-docked for ABS (June 2016) and port reduction gear overhauled. Only a few minor items are outstanding on ABS renewal. M/Es overhauled in 2011 with only 10,551 running hours since that time (July 2016). Starboard reduction gear overhauled in Sept. 2014 and Port gear overhauled June 2016. Reportedly good condition and Owner is keen to sell. U.S. Gulf Coast. File: TG40140 Tug - Single Screw - 131.3' loa x 34.5' beam x 20.5' depth x 18.0' loaded draft. Built in 1976 by Holland Bodewes Millingem. Bahrain flag. GRT: 444. Class: BV I Tug, Unrestricted Navigation Special Survey due 11/2012. 27' x 27' clear deck. FO: 198MT. FW: 10.5MT. BW: 15MT. Winch: Single drum. Line Pull: 100T. Stern Roller. Main Engine: 1 x MAN R7V40154 3,900BHP. Kort nozzle. Bowthruster 2 - 350BHP. Bollard Pull: 60T. Speed about 14kn. Genset(s): 2 - 250kW / CAT D353. One fire monitor. Quarters: 7 crew cabins. AirCon. Galley. Dispersant - 72MT. Mid-East. File: TG38085 Tug - Twin Screw - 85.6' loa x 26.1' beam x 13.3' depth x 12.96' draft. Built 2008 by Damen Shipyard. GRT: 176. Class: LR +100 A1, Tug, +LMC. SS due 08/05/18. Docking survey due 11/17/16. Annual survey due 08/06/16. Dwt: 52T. Light Disp.: 381mt. 80m2 clear deck. FO: 80.7m3. FW: 12.2m3. BW: 19.4m3. Winch: 30T tow; 650kN SWL tow hook. Main Engines: 2 x CAT 3512B total 3,822BHP. 2 - 2,350mm FP prop(s). Kort nozzle(s). Tailshaft survey due 11/01/2018. Bollard Pull: 51.7T. Speed about 13.2kn. Genset(s): 2 - 95kVA / CAT C4.4 440vAC 60Hz. Firefighting: 300m3/hr. Foam: 5.9m3. Quarters: 8 persons. Galley. Suitable for towing, mooring, firefighting and pollution control. See also TG40246. South America. File: SU17535 Supply Boat - AHTS - 175.6' loa x 36.0' beam x 13.1' depth x 11.3' draft. Built in 1972 by Aarhus Dock, Denmark. Foreign flag. GRT: 598. Class: IBS Panama. Formerly BV. Dwt: 757mt. Deck Cargo: 280MT on 175m2 clear deck. FO: 80,000g. FW: 70,000g. Crane: 2T with 18m boom. Winch: double drum Thrige. Line Pull: 100MT. Wire Capacity: 600/450m x 52mm. Main Engines: 2 x MAK 8MU452AK total 3,800BHP. 2 - FP prop(s). Kort nozzle(s). Bowthruster 130HP. Bollard Pull: 33.2T. Speed about 11kn. Genset(s): 3 - 165kVA / Scania Vabis 380/220vAC. Quarters: 10 crew. AirCon. Passengers: 12 supernumeraries. Sold to present owners thru Marcon. Needs mechanical overhaul. South America West Coast. File: TG38129 Tug - Twin Screw - 125.0' loa x 34.7' beam x 16.1' depth x 13.10 draft. Built 2007 by Weihai Xinghai Shipyard; China. Panama flag. GRT: 488. Class: BV I +Hull, +Mach, Tug, Unrestricted Nav. Dwt: 488mt. 107m2 deck. FO: 296m3. FW: 126m3. DW: 42m3. Crane: 2MT @ 8m elect. / hyd. Winch: 130T brake double drum elect. / hyd. waterfall. Wire Capacity: 1,000m x 48mm. Stern Roller. Main Engines: 2 x Mitsubishi S16R-MPTK total 3,800BHP. 2 - 2.3m 4-blade FP prop(s). Kort nozzle(s). Endurance abt. 9,600nm at 12kn. Bowthruster 200kW. Bollard Pull: 41T. Speed about 10-12kn on 5.2-11.2MT/d MGO. Pump(s): Fire: 1,200m3/h @ 130m head external & 35m3/h Desmi emergency. Genset(s): 2 - 200kW / Cummins, 1 - 100kW / Cummins 415vAC 50Hz. Quarters: 18 in 7 cabins. Anchor handling tug / utility boat. 2 - 10T tuggers. 5MT pull rope storage winch for 1,000m 48mm wire. 150MT SWL power jaw for 50-75mm wire. 150MT tow pin. 2 - 25 person SOLAS life rafts. 6 person SOLAS rescue boat with davit. Open for outright sale or long term charter with purchase option to qualified operators. Mid-East. Prompt.

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

64

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG42102 Tug - Twin Screw - 106.5' loa x 33.5' beam x 17.0' depth x 14.5' draft. Built 1981 by Edward Sanchez; Fall River, MA. U.S. flag. GRT: 197. Class: ABS + A1 Towing Service exp. May 2016, but in active laid up status. Docking Survey overdue July 2014. FO: 77,000g. FW: 6,898g. BW: 49,450g. Winch: Almon Johnson Type 22 / GM4-71 powered. Wire Capacity: 2,400' x 2". Main Engines: 2 x Alco 12-251C total 3,800BHP. Last Overhauled: 2002. 2 - 116" x 80" FP prop(s) on 10.75" shaft(s). 4,300HP @ 1,000RPM / Turbo charged. P/S Tailshaft Surveys due July 17, 2016. Bollard Pull: 52.3ST. Genset(s): 2 - 75kW / GM6-71. Galley. Reportedly a heavily built boat. Raised pilot house with 45' height of eye. Maximum air draft 64'. Certificates on file. Laid up cold iron, but actively classed. Special Continuous Survey Machinery 7 and Periodical Survey Hull 7 due 31 May 2016. Annual Hull & Machinery Surveys overdue 31 May 2014. ITC - 361G / 108N. Owner keen Seller - try serious cash offers. U.S. Northwest. File: TG36192 / TG36171 / TG36190 Tugs - Twin Screw (3 each) - 121.4' loa x 37.4' beam x 16.2' depth x 13.35' loaded draft. Built in 2012 / 2011 / 2009 by Shin Yang Shipyard Sdn Bhd; Miri. Foreign flag. GRT: 482. Class: NKK. Special Survey due 09/2017. Dwt: 350mt. 10m x 10m clear deck. FO: 280MT. FW: 80m3. Stern Roller. Main Engines: 2 x Cummins KTA-50-M2 total 3,650BHP. 4.65m 4-blade FP prop(s). Kort nozzle(s). Joystick steering fore & aft stations. Oily water separator. Bowthruster 350HP. Bollard Pull: 47T. Speed about 12.2kn max on 11MTpd MDO. Pump(s): FO: 36m3/h. Bilge / BW: 36m3/h. Genset(s): 2 - 150kW 415vAC 50Hz. Quarters: 14 crew in 6 cabins. AirCon. Galley. Conan Wu design 37m AHT. 100T shark jaw & tow pins. Currently working under charter. Up-to six close sister tugs in the 3,600 - 4,400BHP range potentially can be developed. Mid-East. File: TG32170 Tug - Twin Screw - 105.0' loa x 29.9' beam x 13.8' depth x 15.48' loaded draft. Built in 2007 by ST Shipbuilding Co; Malaysia. Mexico flag. GRT: 296. Class: BV - Ocean. FO: 64,250g. FW: 8,622g. BW: 24T. Winch: Hydraulic double drum. Line Pull: 40T. Wire Capacity: 2 - 700m x 52mm. Stern Roller. Main Engines: 2 x Cummins KTA-50-M2 total 3,600BHP. 4-blade Mag / Bronze prop(s) on 7.5" S/S shaft(s). Kort nozzle(s). Bollard Pull: 46.4T. Speed about 11kn on 75gph. Genset(s): 2 - 125kW / Cummins 6CTA8.3, 1 - 32kW 415v 3ph. Quarters: 2 single, 5 double. AirCon. Galley. Raised foc'stle. Mexico. File: TG35128 Tug - Azimuthing - 111.3' loa x 35.5' beam x 17.8' depth x 17.0' draft. Built 1982 by Carrington Slipways. Australia flag. GRT: 396. Class: ABS +100A1, (E), Towing Service, +AMS, +ACCU. Docking, Annual & Special Surveys due Nov. 2015. Dwt: 404mt. 16m2 deck. FO: 117MT. FW: 47.34MT. Hiab Sea Crane. Norwinch hydraulic single drum fwd. & aft. + tow hook. Main Engines: 2 x Daihatsu 6DSM28 total 3,600BHP. Niigata ZP-3B prop(s). Bollard pull astern 46MT. Bollard Pull: 50MT. Speed about 12kn max on 255L/hr. Pump(s): FiFi: CAT 3412. Genset(s): 2 - 125kW / CAT 3306T 415vAC 50Hz 3Ph. Firefighting: FiFi 1/2; 2 Skum monitors. Foam 12.86MT. Quarters: 14 berths 8 cabins. Fitted with self-protection spray & spare towing wire. Australia. File: TG39130 Tug - Twin Screw - 136.0' loa x 124.7' lbp x 30.0' beam x 15.7' depth. Built 1942 by Levingston SB, Orange, TX. Rebuilt: 1979. U.S. flag. GRT: 197. NRT: 134. Class: ABS Loadline renewed June 2015 and exp. May 2020. FO: 50,000g. LO: 600g. FW: 20,000g. 1,500lb anchor(s). Wire/Chain Capacity: 6 shot. Wire/Chain Dia.: 1.25". Windlass: Hydraulic new '95. Winch: Almon Johnson single drum. Wire Capacity: 2,600' x 2". Main Engines: 2 x EMD 16-567BC total 3,600BHP at 835RPM. Haley 4.485:1 gear(s). 108"x98" 4-blade stainless prop(s). Kort nozzle(s). Kort nozzles installed in 1985. Duration 15 days. Bollard Pull: 50ST. Genset(s): 2 - 60kW / GM6-71. Quarters: 10 berths. AirCon. Galley. Raised foc'stle bow. Molded hull. Quarters re-done in '95. Reportedly tug & all equipment fully operational and in good condition. Marcon sold this tug to previous Owner. Caribbean. File: TG35699 / TG35700 Tugs - Azimuthing (2 each) - 99.5' loa x 36.0' beam x 11.3' depth x 15.30' light draft x 19.20' loaded draft. Built in 1979 by E.S. Fox Ltd; Niagara Falls, Ont. Rebuilt: 1983. Canada flag. GRT: 361. Class: Ex - LR + A1 Tug + LMC. FO: 24,767g. FW: 896g. Winch: 130T Mantel hyd/elec. single drum. Line Pull: 12,000lbs. Wire Capacity: 300' x 12" hawser. Main Engine: 1 x Alco 16-251F total 3,560BHP. Niigata ZP-3A fore& aft inline prop(s). One azimuthing drive PTO each end of main engine. Speed about 11kn. Genset(s): 1 - 145kW / Mitsubishi; 1 - 135kW / CAT3306. Firefighting: CO2 engine suppression, 2 monitors on deck. Galley. Two double-ended, welded steel, azimuthing tugs. Built originally as St. Lawrence Seaways shunterbarges & converted to shipdocking tugs in 1983 by Vito Steel Boat & Barge. Flat bottom & hard chine. Canada West Coast. File: TG35103 Tug - Twin Screw - 105.0' loa x 32.0' beam x 16.9' depth x 15.25' draft. Built 1972 by Carrington Slipways; Australia. Uruguay flag. GRT: 268. Winch: Tow hook. Main Engines: 2 x Blackstone ESL16MK2 total 3,500BHP. 2 - 4-blade FP prop(s). Kort nozzle(s). Bollard Pull: 44MT. Genset(s): 2 - 40kW 415vAC 50Hz. South America East Coast. File: SU14749 Supply Boat - AHTS - 147.6' loa x 135.8' lbp x 36.0' beam x 13.1' depth x 10.5' draft. Built 2007 by Berjaya Dockyard Sdn Bhd - Miri. Indonesia flag. GRT: 499. Class: ABS / BKI. 155m2 deck. FO: 280m3. FW: 150m3. Crane: 1 - 2T @ 9m. Winch: Double drum 200T brake. Line Pull: 100T. Wire Capacity: 1,000m x 52mm. Stern Roller. Main Engines: 2 x CAT 3512B total 3,500BHP at 1,600RPM. TD MG5600 5.04:1 gear(s). Kort nozzle(s). Bowthruster 4.5T. Genset(s): 3 - 349 HP Caterpillar 3406 C. Firefighting: 2 - 600m3/hr monitors 1/2 Fifi. Quarters: 15. AHT / Utility vessel. 200t Shark Jaw / Tow pins. Southeast Asia. File: TG35137 Tug - Twin Screw - 137.8' loa x 36.1' beam x 15.8' depth x 13.1' draft. Built 2016 by Malaysian shipyard. Malaysia flag. GRT: 499. Class: GL + 100A5, MC Tug. Unrestricted Navigation. FO: 305MT. FW: 123MT. BW: 64MT. Winch: 45T SWL double drum waterfall, 1 - 3T capstan, 1 - 5T tugger. Wire Capacity: 750m x 42mm. Stern Roller. Main Engines: 2 x CAT 3512B total 3,500BHP. 2 - FP prop(s). Kort nozzle(s). Sewage treatment plant for 25 persons. Bowthruster 2.5T. Speed about 12kn design. Genset(s): 2 - 150kW 415vAC 50Hz 3ph. Firefighting: 2 - 600m3/h monitors & 1-1,200m3/h pump. Quarters: 14 in 5 cabins. Galley. Conventional raised foc'stle bow, twin screw, newbuilding utility-tug. Optional rescue boat & davit. Southeast Asia.

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

65

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG35103 Tug - Twin Screw - 105.0' loa x 93.5' lbp x 32.0' beam x 16.9' depth x 15.25' loaded draft. Built in 1972 by Carrington Slipways Pty; Australia. Uruguay flag. GRT: 268. NRT: 80. Class: LR disclassed. Winch: Tow hook. Main Engines: 2 x Blackstone ESL16MK2 total 3,500BHP at 750RPM. Reintjes 5:1 gear(s). 2 - 4-blade FP prop(s). Kort nozzle(s). Bollard Pull: 44MT. Genset(s): 2 - 40kW 415vAC 50Hz. Steering: Elec./hyd. South America East Coast. File: TG34121 Tug - Twin Screw - 100.0' loa x 91.5' lbp x 26.8' beam x 9.7' depth x 14.6' draft. Built 1967 by Main Iron Works. Rebuilt: 2003. U.S. flag. GRT: 188. Class: ABS Coastwise Loadline exp. 5th Dec 2016. FO: 38,000g. LO: 1,210g. FW: 1,400g. Almon Johnson winch. Wire Capacity: 2,000m x 2". Main Engines: 2 x CAT 3516 total 3,420BHP at 1,600RPM. Reintjes 5.95:1 gears. 2 - 88" x 72" FP props on stainless steel shafts. Repowered from CAT D398TAs in 1995. Bollard Pull: 73,530lb. Gensets: 2 - 40kW / John Deere120vAC 60Hz. Gyro. Autopilot. Radars: 2. GPSs: 2. Fathometer. VHF: 4. Quarters: 8 in 4 cabins. Upper pilothouse. Air Draft 55ft. Height of eye 40ft. No pin system. Chart plotters in upper & lower wheelhouses. 8 person life raft. 1,200' 9" circ. emergency hawser. Normally operates with crew of 5. Reportedly good condition. U.S. Northeast. File: SU17635 Supply Boat - AHTS - 176.5' loa x 45.3' beam x 14.8' depth x 12.5' draft. Built 2008 by Sealink Slipways, Malaysia. Panama flag. GRT: 1,076. Class: DNV. Dwt: 1,126T. 150m2 deck. FO: 913m3. FW: 208m3. Crane: 10T @ 15m SWL deck & 2T MOB. 10T SWL A-Frame. Winch: Double drum, 10T tugger, 2 - 5T capstans. Main Engines: 2 x Cummins KTA50-M2 total 3,400BHP. CP prop(s). Bowthruster 5T. Bollard Pull: 45T. Speed about 10-12kn on 5,500-9,000L/d. Genset(s): 3 - 245kW / CAT 3406C, 1 - 30kW 415vAC 50Hz. Quarters: 42 berths (4-1, 2-3, 8-4). AirCon. Tow Hook. Africa West Coast. File: TG34121 Tug - Twin Screw - 100.0' loa x 91.5' lbp x 26.8' beam x 9.7' depth x 14.5” draft. Built in 1967 by Main Iron Works. U.S. flag. GRT: 188. NRT: 127. FO: 38,000g. LO: 1,210g. FW: 1,400g. Wash Water: 9,500g. 2,000’ 2” tow wire with 1,200’ 9” circ. emergency hawser. Main Engines: 2 x CAT total 3,420BHP. Reintjes gears. 2 – 88” x 72” FP prop(s). Genset(s): 2 - 40kW / John Deere 120vAC 60Hz. Fixed CO2 system in engine room. Upper pilothouse with 40’ height of eye. Air draft 55’. No pin system. Gyro. Radar. GPS. Fathometer, Autopilot. VHF. Quarters: 8 crew. Tug reportedly in good condition. U.S. Northeast. File: SU17656 Supply Boat - AHTS - 176.5' loa x 45.2' beam x 14.8' depth x 9.8' draft. Built in 2008 by Malaysian yard. Singapore flag. GRT: 1,075. Class: ABS, +A1, (E), +AMS, Unrestricted. Special Survey due Nov 2018. Docking due Sep 2018. Dwt: 1,036mt. Deck Cargo: 570MT on 300m2 clear deck. FO: 1,108m3. FW: 203m3. BW: 63m3. Crane: 1 - 3.5T @ 10m knuckle. Winch: 1 - 10T tugger; 2 - 5T capstans & 45T tow hook. Main Engines: 2 x Cummins KTA50M2 total 3,400BHP. 2 - 4-blade CP prop(s). Kort nozzle(s). Fore & aft controls. Range 6,500nm@10kn. P/S Tailshafts due 02 Oct 2017. Bowthruster 5T. Bollard Pull: 38MT. Speed about 13kn. Pump(s): FO: 1 - 150m3/h @ 60m; FW: 1 - 100m3/h @ 60m. Genset(s): 2 - 380kW / Cummins KTA-19DM-1 & 148kW emerg. 440vAC 3Ph 50Hz. Firefighting: FiFi 1/2. Foam: 9.5m3. Quarters: 42 berths total. AirCon. 53m multi-purpose offshore support vessel. Fuel: 156m3 & 952m3 ship / long range. Detergent: 7.4m3. Wooden sheathed main cargo deck. Eight reefer points. Storage reel for 200m bunker hose. 2.8m3 sewage treatment plant for 50 persons. 2 - 2,000W search lights & 3 - 1,000W flood lights. No oil pollution equipment. Sister may also be able to be developed. Southeast Asia. File: TG34197 Tug - Azimuthing - 97.6' loa x 31.1' beam x 13.4' depth x 11.4' draft. Built in 1985 by Carrington Slipways Pty; Australia. Foreign flag. GRT: 254. Class: LR +100A1 Tug expired. FO: 58.2m3. FW: 23.1m3. BW: 12.3m3. Winch: Tow hook. Main Engines: 2 x Daihatsu LDSM-28 total 3,400BHP. 2 - Duckpeller DP40EA props. Bollard Pull: 40T. Gensets: 2 - 140kW / CAT 3406 415vAC 50Hz. 2- 300m3/h Skum water/foam monitors. Quarters: 4 cabins. AirCon. Galley. South America East Coast. File: TG27123 Tug - Twin Screw - 125.0' loa x 34.0' beam x 13.0' depth x 10.5' draft. Built 1956 by Gulfport Shipbuilding; TX. U.S. flag. GRT: 292. Towing Vessel Exam performed May 2015. FO: 20,000g. Winch: Vertical Smatco capstan aft. Main Engines: 2 x EMD 16-567C total 3,300BHP. 102" 5-blade stainless FP props. Abt. 3,600HP @ 900RPM. Repowered from GM8-278s diesel electric. Gensets: 1 - 100kW / GM 8V71; 1 - 90kW / GM 6-71 408vAC. Quarters: 6. AirCon. Galley. Hawser tug for ship assist. Keen seller. Good overall condition and ready to work. Tow winch with 1,800' x 2" wire can be included. U.S. East Coast. File: TG31030 Tug - Twin Screw - 105.0' loa x 30.0' beam x 14.5' depth x 9.50' light draft x 12.00' loaded draft. Built in 1981 by Bollinger Shipyard; Lockport, LA. U.S. flag. GRT: 140. Class: ABS + A1 Towing. ABS Loadline. Exp. 2020. FO: 65,000g. FW: 15,200g. Winch: Intercon D/D200 Double drum; GM6-71 power. Line Pull: 95T. Wire Capacity: 2,400' x 2". Main Engines: 2 x CAT 3516 total 3,250BHP. 98" x 97" prop(s). Kort nozzle(s). Bollard Pull: 40.8ST. Speed about 12kn. Genset(s): 2 - 75kW / GM6-71. Quarters: 11 in 5 cabins. AirCon. Galley. Open for employment / sale. U.S. Gulf Coast. File: TG31105 Tug - Twin Screw - 105.0' loa x 30.0' beam x 14.5' depth x 9.50' light draft x 12.00' loaded draft. Built in 1977 by Bollinger Shipyard; Lockport, LA. U.S. flag. GRT: 179. Class: ABS + A1 Towing. ABS Loadline exp. Jan 29, 2018. FO: 65,000g. FW: 15,000g. Winch: Intercon D/D 200 double drum; GM6-71 power. Line Pull: 95T. Wire Capacity: 2,000' x 2". Stern Roller. Main Engines: 2 x CAT 3516TA total 3,250BHP. 87" x 90.5" prop(s). Kort nozzle(s). Repowered 1985. Bollard Pull: 45ST. Speed about 12kn free. Genset(s): 2 - 75kW / GM6-71. Quarters: 11 berths in 4 cabins. AirCon. Galley. Standard bow. U.S. Gulf Coast.

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

66

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG32208 Tug - Twin Screw - 177.1' loa x 45.2' beam x 14.8' depth x 11.8' draft. Built 2008 by Cheoy Lee Shipyards. Australia flag. GRT: 1,079. Class: ABS, + A1, +ACCU, +AMS, (E), Towing, Offshore Support, Special Purpose. Dwt: 950. 240m2 deck. Deck Load: 5T/m2. FO: 900m3. FW: 93.4m3. Winch: Plimsoll D/D W/f 50T brake. Line Pull: 50T. Stern Roller. Main Engines: 2 x Cummins KTA50-m42 total 3,200BHP. 1 - 3.5T stern thruster. Bowthruster 5T. Bollard Pull: 34T. Speed about 9-11kn. 11,200m3/hr Monitor/ Pump. Quarters: 34 (2-1, 6-2, 5-4). 2 - 5T Tuggers. 20 twist locks; 30 - 10T SWL Lashing lugs. Australia. File: SU13029 Supply Boat - AHTS - 130.6' loa x 32.8' beam x 13.8' depth x 11.5' draft. Built 2008 by Indonesian shipyard. Panama flag. GRT: 498. Class: BV I +Hull, +Mach. Unrestricted. Formerly ABS +A1. Dwt: 307mt. 107m2 deck. FO: 296m3. FW: 126m3. DW: 42m3. Winch: 120T brake double drum waterfall. Line Pull: 50T@6m/min. Wire Capacity: 1,000m x 20mm. Stern Roller. Main Engines: 2 x Cummins KTA50-M2 total 3,200BHP. Kort nozzles. Endurance: 35 days. Bowthruster 250HP. Bollard Pull: 40T. Speed about 10-11.4kn on 8.92-12.92MTpd. Genset(s): 3 - 185kW, 1 - 85kW emergency 440vAC. Water mist in engine room. Quarters: 18 in 8 cabins. AirCon. Galley. Anchor handling utility vessel. 100T SWL tow pin. 200T SWL Shark jaw. 2 - 25 person life rafts SOLAS compliant. 6 person rescue boat with davit. Open for outright sale or long term charter with purchase option to qualified operators. Mid-East. Prompt. File: TG32048 Tug - Twin Screw - 96.7' loa x 29.5' beam x 13.9' depth x 11.50' loaded draft. Built in 2009 by Pacific Ocean Eng. & Trading. Singapore flag. GRT: 249. Class: ABS + A1 Towing Vessel, (E), + AMS, Unrestricted. Docking due 08 Dec 2016. Special Survey due 19 Jan 2019. FO: 165.9m3. FW: 27.0m3. Winch: Elect. hyd. 100T brake single drum; 40MT tow hook. Line Pull: 40T@7m/min. Main Engines: 2 x Yanmar 8N21A-SN total 3,200BHP. 2 - Kaplan Nibral FP prop(s) on Stainless shaft(s). Bollard pull ABS certified. P/S Tailshaft Surveys due 08 Dec 2018. Bowthruster 1T. Bollard Pull: 45MT. Speed about 11kn free. Genset(s): 2 - 130kW / Volvo Penta D7A-TA. Firefighting: As per SOLAS. Quarters: 12 men in 5 cabins. Southeast Asia. File: TG32033 Tug - Twin Screw - 105.0' loa x 30.2' beam x 14.7' depth x 12.50' loaded draft. Built in 2006 by Rushan City Shipbuilding; China. Foreign flag. GRT: 279. Class: LR 100 A1 Tug LMC. Originally built to BV. Special Survey due 03 Feb 2017. Docking due 28 Jan 2019. Dwt: 270mt. 80m2 clear deck. FO: 58,560g. FW: 38T. Winch: Thor TH-15HTW-MO8-202B. Main Engines: 2 x Cummins KTA50-M2 total 3,200BHP. 2 - FP prop(s). Port / Starboard Tailshaft Surveys due Jan 2021. Bollard Pull: 45T. Speed about 12kn free. Genset(s): 2 - 115kW / Cummins 6CTA8.3-G 400vAC 50Hz. Firefighting: 300m3/h. AirCon. Galley. Direct from Owners for whom Marcon has handled numerous sales, purchases and charters over the years. Caribbean. File: TG32038 Tug - Twin Screw - 105.0' loa x 29.9' beam x 13.8' depth x 11.5' draft. Built in 2007 by SL Shipbuilding; Sibu, Malaysia. Mexico flag. GRT: 296. Class: BV I. FO: 212MT. FW: 32.7MT. BW: 50m3. Winch: Double drum hyd. Line Pull: 40T. Wire Capacity: 2 - 700m x 52mm. Main Engines: 2 x Cummins KTA50M2 total 3,200BHP. FP prop(s). Kort nozzle(s). Bollard Pull: 41.2T. Speed about 11kn free on 125gph. Genset(s): 2 - 125kW / Cummins 6CTA8.3-D, 1 - 32kW / Yanmar. Mexico. File: TG32053 Tug - Twin Screw - 105.0' loa x 30.2' beam x 14.7' depth x 12.50' loaded draft. Built in 2007 by Rushan City Shipbldg. Co.; China. Foreign flag. GRT: 279. Class: LR +100 A1 Tug +LMC. Special Survey due 03 Feb. 2017. Docking due 30 Dec. 2016. Annual due 04 Feb. 2016. Dwt: 83mt. Light Disp.: 284mt. 80m2 clear deck. FO: 58,560g. FW: 38MT. Winch: Thor TH15HTW-MO8-202B. Main Engines: 2 x Cummins KTA50-M2 total 3,200BHP. 2 - FP prop(s). P/S Tailshaft Surveys due April 2016. Bollard Pull: 45T. Speed about 12kn. Genset(s): 2 - 115kW / Cummins 6CTA8.3-G 400vAC 50Hz. Firefighting: 300m3/h. AirCon. Galley. Direct from Owners for whom Marcon has handled numerous sales, purchases and charters over the years. Caribbean. File: TG32070 Tug - Azimuthing - 98.3' loa x 32.2' beam x 16.1' depth x 11.8' draft. Built 2015 by Southeast Asian shipyard. Foreign flag. GRT: 292. Class: NKK. Dwt: 271T. 63m2 clear deck. FO: 145.94m3. FW: 28.42m3. BW: 33.25m3. Crane: Hiab 121-2 Sea. Winch: 100T brake single drum fore & aft + tow hook aft. Line Pull: 40T@5m/min. Wire Capacity: 500m x 72mm. Main Engines: 2 x Cummins KTA50-M2 total 3,200BHP. 2 - Schottel SRP1012 CP prop(s). 4,058HP MCR max @ 2,050RPM. Bollard Pull: 40MT. Speed about 12kn. Genset(s): 3 - 78kW / Cummins 6BT5.9-D(M) 415vAC 50Hz 3ph. Firefighting: 1,400m3/h pump; 2 1,200m3/h / 300m3 water/foam monitors. Quarters: 10 crew in 4 cabins. AirCon. Galley. Newbuilding multi-purpose ASD tug. Southeast Asia. 3 months after MOA. File: TG32112 Tug - Twin Screw - 106.0' loa x 32.0' beam x 14.4' depth. Built in 1973 by Main Iron Works; Houma, LA. Foreign flag. GRT: 321. Class: ABS + A1 + AMS Towing Service. Annual Hull & Machinery overdue Jul 2013. Docking & Special Surveys overdue July 2014. FO: 56,413g. FW: 2,842g. BW: 21,966g. Winch: Almon Johnson. W ire Capacity: 2,200'x2". Main Engines: 2 x EMD 16-567C total 3,200BHP. 2 - FP prop(s). Bollard Pull: 48.44T. Genset(s): 2 - 75kW 225/450v. Firefighting: P/S Tailshaft Surveys overdue 13 Jul 2014. Flush deck. Africa West Coast. File: TG32198 Tug - Twin Screw - 105.3' loa x 29.5' beam x 13.8' depth x 11.86' draft. Built in 2008 by Tang Tiew Hee; Malaysia. Singapore flag. GRT: 299. Class: NKK NS* (Tug) MNS*, LSA, RCF. Special Survey due 26 Jun 2018. Docking due 18 Jul 2016. Dwt: 212mt. FO: 236MT. FW: 22MT. BW: 31MT. Winch: 40T brake single drum & 40T SWL tow hook. Line Pull: 10MT. Main Engines: 2 x Cummins KTA50M2 total 3,200BHP. 2,400 x 1,524mm 4-blade FP prop(s). Kort nozzle(s). P/S Shaft Surveys due 18 Jul 2018. Speed about 12kn. Genset(s): 2 - 100kW / Cummins 6BT5.9-D; 1 - 25kW / Yanmar 4TNE. Quarters: 15 crew. AirCon. 2 15 person liferafts. Owner can only sell tug enbloc with 330' x 90', 9,900dwt barge file DB33073. Southeast Asia.

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

67

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG32202 Tug - Twin Screw - 96.8' loa x 29.5' beam x 13.6' depth x 11.5' draft. Built 2010 by Bengbu Shenzshou Machinery; China. Indonesia flag. GRT: 249. Class: ABS & BKI, A1+, Towing Vessel (E), AMS+. SS due 06/2020. Dwt: 150mt. 52.5m2 deck. FO: 207m3. FW: 36m3. Winch: 120T single drum + 50T hook. Wire Capacity: 700m x 45mm. Main Engines: 2 x Cummins KTA-50M2 total 3,200BHP. Kort nozzles. Bowthruster. Bollard Pull: 40T. Genset(s): 2 - 37kW. Quarters: 12 crew. Southeast Asia. File: TG32236 Tug - Azimuthing - 130.7' loa x 32.8' beam x 15.7' depth x 11.48' loaded draft. Built in 1993 by Watanabe Nagasaki; Japan. South Korea flag. GRT: 187. Class: KRS - Korean Register of Shipping 1 Coastal. FO: 158.5m3. FW: 34m3. Winch: 30T towing. Main Engines: 2 x Yanmar 6Z280-EN total 3,200BHP. KST-180ZC/A Rex peller prop(s). Bollard Pull: 40T. Genset(s): 2 - 134kW. Quarters: 9 persons. Diesel tank 25.55m3. Far East. File: TG32243 Tug - Twin Screw - 124.6' loa x 38.7' beam x 15.7' depth x 12.46' draft. Built 2006 by Sealink Shipyard; Malaysia. Malaysia flag. Class: ABS + A1 (E) AHT + AMS. Dwt: 400T. Deck Cargo: 300MT on 150m2 deck. FO: 332m3. Winch: Elect. / hyd. double drum. Stern Roller. Main Engines: 2 x Cummins KTA50M2 total 3,200BHP. Kort nozzles. Range 5,500nm @ 10kn. Bowthruster 4T. Bollard Pull: 42T. Speed 12kn. Genset(s): 2 - 150kW / CAT 3406C 415v 3ph 50Hz. Quarters: 2-1, 2-2, 3-4 man berths. AirCon. Shark jaw & tow pins. 120 ton stern roller. Southeast Asia. File: TG32246 Tug - Azimuthing - 114.3' loa x 31.5' beam x 13.8' depth x 10.5' draft. Built 1975 by Sagami Shipbldg Co; Yokosuka, Japan. Egypt flag. GRT: 291. Class: ABS +A1, Towing, AMS, Coastwise. Laid up, actively classed. Docking, Annual & Special Surveys due 30 May 2013. FO: 42m3. FW: 35m3. Winch: 60T brake fore & aft. Main Engines: 2 x Niigata 8L25BX total 3,200BHP. Last O’haul: 1992. Niigata 2,000mm ZP-3A props. 45.8T pull astern. Bollard Pull: 50.2T. Speed 13.8kn. Genset(s): 2 100kVA / MWM 225vAC, 2 - 17.5kVA / MWM 230VAC 60Hz 3Ph. FiFi: 2 - 240m3/hr pumps. Quarters: 3-1 & 1-7 berths. Two 30 person life rafts. Inviting best, outright offers “as is, where is”. Two 13.5m, 1995 built pilot boats also available. Mid-East. File: TG31134 Tug - Azimuthing - 94.0' loa x 32.0' beam x 15.3' depth x 13.40' loaded draft. Built in 2003 by Conrad's Orange Shipbuilding Co. U.S. flag. GRT: 163. Class: ABS + A1 + AMS, Loadline, Unrestricted. Next Special Survey due Feb. 2019. FO: 76,000g. FW: 13,000g. BW: 7,500g. Winch: JonRie Series 200 FWD; 500 double drum JonRie Series towing AFT. Wire Capacity: 2,000' x 2". Main Engines: 2 x CAT 3512B total 3,150BHP. 2 - Schottel FP SRP 1012 prop(s). Kort nozzle(s). Endurance 15 days / 3,000nm. Bollard Pull: 40MT+. Genset(s): 2 - 99kW / CAT 3304. Quarters: 5 in 3 cabins. AirCon. Galley. Azimuth Stern Drive (ASD) tug exclusively for sale or charter through Marcon. Designed by Frank Basile of Entech & Associates, Inc. Full Jones Act. Fully classed with ABS. Recently underwent drydocking and class renewal, with azimuth thrusters rebuilt / upgraded (SRP-1010s were upgraded to SRP-1012s). Recent bollard pull test in excess of 40 metric tons ahead. Caribbean. File: TG30230 Tug - Twin Screw - 110.0' loa x 28.0' beam x 15.6' depth x 13.50' loaded draft. Built in 1962 by Jakobson Shipyard; Oyster Bay, NY. U.S. flag. GRT: 281. Class: ABS + A1 Coastwise Towing + AMS. International loadline. Special Survey due 7/2017. FO: 36,580g. FW: 2,500g. BW: 50,652g. Main Engines: 2 x Wartsila 9L20C total 3,010BHP. Stainless steel FP prop(s). Repowered 2004 from Fairbanks. P/S Tailshaft surveys due Feb 2018. Genset(s): 1 - 100kW, 1 - 60kW. Quarters: 9 men. AirCon. Galley. 35' eye level. PME and SME - 8,195 hrs. each (Oct. 2014). U.S. Northeast. File: SU16534 Supply Boat - AHTS - 165.0' loa x 38.0' beam x 16.0' depth x 13.0' draft. Built 1971 by Mangone Shipyard, USA. Panama flag. GRT: 734. Class: PRS - Polski Rejestr Statkow. Previously ABS +A1 Towing. Dwt: 836T. Deck Cargo: 364T on 96' x 31' clear deck. FO: 390T. FW: 52T. DW: 300T. Stern Roller. Main Engines: 2 x EMD 12-645E2 total 3,000BHP. Bowthruster 200BHP. Bollard Pull: 30T. Speed 12kn on 6Tpd. Gensets: 2 - 125kW / 220/440v. 6 rooms - 18 men. AirCon. Galley. Mid-East. File: TG26106 Tug - Twin Screw - 108.4' loa x 26.5' beam x 12.3' depth x 12.65' draft. Built 1954 by Higgins Industries; New Orleans, LA. Rebuilt: 1984. U.S. flag. GRT: 144. FO: 66,010g. FW: 3,400g. Winch: Single Drum Almon-Johnson. Wire Capacity: 2,200' x 2". Main Engines: 2 x CAT 3512 total 3,000BHP. 2 - 89" x 64" 4-blade stainless steel FP prop(s) on 9.5" stainless shaft(s). Triple rudders. Speed about 12kn. Genset(s): 1-75kW/GM6-71;1-65kW/John Deere 4.5L new'92 480vAC3ph50Hz. Firefighting: Fixed CO2 in engine room. Quarters: 5 persons. Galley. Modern electronics. Hydraulic tow pins U.S. West Coast. File: TG30017 Tug - Azimuthing - 78.7' loa x 27.9' beam x 15.4' depth x 11.5' draft. Built in 1995 by Matsuura Tekko Zosen; Japan. Indonesia flag. GRT: 210. Class: NKK exp. Aug 2020. Dwt: 109T. FO: 57m3. FW: 32m3. BW: 42m3. Winch: Kitagawa Kogyo 60T brake fwd. & 40T hook aft. Main Engines: 2 x Niigata 6L25CXE total 3,000BHP. Niigata ZP-2A props. Bollard Pull: 36T. Speed 12.5kn. Gensets: 2 - 100kVA / Yanmar 415v 50Hz 3ph. Quarters: 10 persons. Motivated seller. Southeast Asia. File: TG30108 Tug - Twin Screw - 105.0' loa x 32.0' beam x 16.0' depth x 13.50' loaded draft. Built in 1980 by Jakobson shipyard; Oyster Bay, NY. U.S. flag. GRT: 199. Class: ABS Loadline due Oct. 2013/Laid up. FO: 164m3. Winch: Single drum Almon Johnson. Wire Capacity: 2,000' x 2". Main Engines: 2 x EMD 12-645E6 total 3,000BHP. 2 - FP prop(s). Speed about 12kn. Genset(s): 2 - 75kW. AirCon. Galley. U.S. Northeast.

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

68

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG30128 Tug - Twin Screw - 105.0' loa x 30.2' beam x 15.1' depth x 12.46' loaded draft. Built in 2008 by Wuhu Dajiang Shipbuilding; China. Singapore flag. GRT: 296. Class: ABS +A1, Towing Vessel, (E), +AMS: Unrestricted Service. Special Survey due 10 Sep 2018. Docking due 10 Sep 2018. Dwt: 240T. FO: 250m3. FW: 40m3. Winch: 100MT double drum tow & 50T SWL tow hook. Wire Capacity: 700m x 44mm. Main Engines: 2 x Mitsubishi S6U-MPTK total 3,000BHP. 2 - 4-blade Bronze FP prop(s) on Stainless shaft(s). Kort nozzle(s). P/S Tailshaft Surveys due 15 Dec 2018. Bowthruster. Bollard Pull: 40T. Speed about 9-11kn. Genset(s): 2 - 99kW / Cummins 6CT8.3-D 50Hz AC. Quarters: 12 persons. Open for enquiries for sale or charter subject to availability at time of commitment. Mid-East. File: TG30132 Tug - Twin Screw - 123.5' loa x 35.5' beam x 10.7' depth x 14.9' draft. Built 1976 by Main Iron Works. U.S. flag. GRT: 109. ABS Loadline exp. June 2015. FO: 110,000g. Winch: Intercon double drum. Wire Capacity: 2,200' x 2". Main Engines: 2 x EMD 12-645E6 total 3,000BHP. 2 - FP prop(s). Kort nozzle(s). Genset(s): 2 - 90kW / John Deere 4045AFM85 220vAC 3ph 60Hz. Quarters: 6. High foc’stle bow. Laid up in fresh water. Only 3,466hrs on M/Es since overhaul. U.S. Northwest. Prompt. File: TG30176 Tug - Twin Screw - 101.0' loa x 30.0' beam x 13.1' depth. Built 1973 by Southern Shipbldg; Slidell, LA. Foreign flag. GRT: 191. Class: ABS + A1 Towing + AMS, Unrestricted. Drydocking overdue 01 Feb 2016. Special Survey due May 2017. 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. Bollard Pull: 40T. Genset(s): 2 - 75kW / Delco DD4-71. Small upper pilot house. Africa West Coast. File: TG30198 Tug - Twin Screw - 100.8' loa x 29.5' beam x 14.6' depth x 12.47' draft. Built 1983 by BV Scheepswerven; Holland. Mexico flag. GRT: 270. Class: GL +100 A5, Tug, Mach, +MC, Hull. FO: 146,380L. FW: 35,840L. BW: 11,600L. Winch: Double drum + tow hook. Main Engines: 2 x Stork Werkspoor 6FD4240 total 3,000BHP. 2 - Lips VP props. Kort nozzles. Bollard Pull: 32.1MT. Speed 10kn. Genset(s): 2 - 80kW 380vAC 50Hz. 2 - 500m3/hr. monitors. Foam: 12,260L. Quarters: 4-1, 1-2 cabins. Employed mostly in harbor service, but suited for coastal work. Class current and reportedly good operating condition. Owners will consider all offers. TG43106 also available - same owners. Mexico West Coast. File: TG30237 Tug - Single Screw - 108.0' loa x 28.0' beam x 14.8' depth x 11.75' light draft x 12.75' draft. Built 1954 by John E. Matton & Sons. Rebuilt: 1999. U.S. flag. Built to ABS. FO: 18,692g. FW: 2,300g. Main Engine: 1 x EMD 12-645E7 3,000BHP. 105" x 112" 4-blade prop. Kort nozzle. Range @2,090nm. Bowthruster. Bollard Pull: 31.5T. Speed about 12.9kn. Pump(s): FiFi: 7,500gpm. Genset(s): 2 - 165kW / CAT 3306-D1. Firefighting: 2 - 4,000gpm water & 1 - 1,250gpm foam monitors. Ex US Army firefighting tug retired in July 2011 & sold at auction in 2012. Rebuilt in 1999 in U.K. Reportedly in very good condition. SOLAS Compliant regards to stability, engine room CO2 Fifi system and lifesaving appliances U.S. East Coast. File: TG31003 Tug - Twin Screw - 110.0' loa x 32.0' beam x 14.1' depth x 11.8' draft. Built 1975 by Delmar Systems; Larose, LA. U.S. flag. GRT: 158. ABS Loadline Survey 2 overdue June 2012. FO: 60,000g. FW: 5,000g. Winch: Smatco double drum 66-DADT 200. Line Pull: 225T. Wire Capacity: 2,000' x 2". Main Engines: 2 x EMD 12-645E2 total 3,000BHP. 80" x 70" 4-blade prop(s) on 10" Stainless shaft(s). Repowered from Polar Nohabs in 1990s. Bollard Pull: 34T. Speed about 12kn free. Genset(s): 2 - 75kW / GM6-71 120/208vAC 60Hz. Quarters: 11 berths in 7 cabins. Laid up. U.S. Northwest. File: SU17835 Supply Boat - AHTS - 178.8' loa x 36.0' beam x 13.0' depth x 11.3' draft. Built 1970 by J.G. Hitzler; Lauenburg, Germany. GRT: 490. Class: GL +100A5 (E) Offshore Supply Vessel, Tug. Dwt: 694T. Light Disp.: 1,383T. Deck Cargo: 300T on 87' x 27.5' deck. FO: 436MT. FW: 203MT. DW: 220MT. Crane: 1 - 50T. Winch: 80T Hatlapa double drum; 1 - 5T tugger. Wire Capacity: 2 - 600m x 46mm. Stern Roller. Main Engines: 2 x MAN V22/30ATL total 2,960BHP. Kort nozzles. Bowthruster 205HP. Bollard Pull: 40T. Speed 11kn on 6T/d. Genset(s): 1 - 250kVA / Scania; 2 - 152kVA / Scania 400v 50Hz. Firefighting: 2 - monitors 50MT/h. Quarters: 21 (1-6, 4-1, 4-2, 1-3). Galley. Mid-East. File: TG29122 / TG29124 Tugs - Single Screw (2 each) - 121.5' loa x 32.0' beam x 16.5' depth x 15.5' draft. Built 1966 by Pacific Coast Eng. Co.; Alameda, CA. U.S. flag. GRT: 190. Class: 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. 126" x 82-89" 5-blade SS prop. Main engine keel cooled. Bollard Pull: 37.5ST. Speed about 14kn on 2,000gpd. Genset(s): 2 - 60kW / CAT D3306 208vAC 60Hz. Quarters: 9 berths. AirCon. Galley. Ocean going tug. Reportedly ready to work. Owner is very keen to sell and will entertain serious cash offers. U.S. Northwest. / U.S. Gulf Coast respectively. Prompt. File: TG28133 Tug - Twin Screw - 95.2' loa x 28.2' beam x 13.5' depth x 12.47' loaded draft. Built in 1996 by President Marine Pte Ltd; Singapore. Chile flag. GRT: 223. Class: ABS +A1, Towing Vessel, E, +AMS, Unrestricted. SS due Jan. 31, 2016. 24.1m2 clear deck. FO: 123.3m3. FW: 37.68m3. Winch: Denison, Tow hook. Line Pull: 55MT. Main Engines: 2 x Yanmar T240A-ET total 2,800BHP. 2 - FP prop(s). Kort nozzle(s). Bollard Pull: 39T. Genset(s): 2 - 60kW / GM4-71 380vAC 60Hz. FiFi monitor, 150m3/hr. Quarters: 8 crew. AirCon. Galley. South America West Coast. End 2016.

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

69

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG30159 Tug - Twin Screw - 157.1' loa x 35.0' beam x 16.4' depth x 13.1' draft. Built 1990 by Jurong Shipyard; Singapore. GRT: 741. Class: ABS A1 Towing, AMS. Formerly RS KM+1, 1[1]A2 Tug Icebreaking Ice Class 1. Docking due Nov. 2018. Dwt: 232mt. 7.5m x 12m clear deck. FO: 263MT. FW: 40MT. Crane: 3.4MT @ 1.7m Hiab 60 Sea. Winch: 100T brake single drum hyd. Norwinch + Mampaey quick release tow hook. Line Pull: 30T. Wire Capacity: 850m x 44mm. Stern Roller. Main Engines: 2 x Yanmar T260ST total 2,840BHP. Last Overhauled: 2009. 2,300mm 4-blade FP prop(s). Kort nozzle(s). Endurance 8,000nm@10kn. BP certified. Bowthruster 240BHP. Bollard Pull: 40.1MT. Speed about 10-13kn on 4-7MT/d. Genset(s): 2 - 200kW / MAN; 2 - 100kW / MAN 380vAC 50Hz 3ph. Quarters: 28 in 13 cabins. Both main & auxiliary engines fully overhauled by engine maker reps in October 2009. P/S Tail Shaft surveys due 05 Nov. 2020. Special Surveys - Hull & Machinery due 31 July 2020. Deck & winch CCTV. Spare wire 550m 52mm. Euro standard accommodations. 4 - 25 man life rafts. Rescue boat. Mid-East. Prompt. File: TG22122 Tug - Single Screw - 121.4' loa x 32.0' beam x 16.5' depth x 15.4' draft. Built 1965 by Paceco; Alameda, CA. U.S. flag. GRT: 199. ABS International Loadline. FO: 115,000g. FW: 18,000g. Winch: Almon-Johnson single drum single drum hydraulic. Line Pull: 40T. Wire Capacity: 2,100' x 2". Main Engine: 1 x EMD 16-645D5 2,800BHP. Last Overhauled: 1997. 121.5" x 94-96' 5-blade prop. Channel cooled. Bollard Pull: 30ST. Genset(s): 2 - 75kW / CATD 3306 120/208vAC 60Hz. AirCon. 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: TG28134 Tug - Twin Screw - 91.8' loa x 28.2' beam x 14.2' depth x 11.48' draft. Built 1993 by President Marine; Singapore. GRT: 217. Class: ABS +A1, Towing Vessel, (E), +AMS, Unrestricted. Special Survey 08/2018. Docking due 08/2016. FO: 118.7m3. FW: 40.8m3. Winch: 2.5T @ 10m/min fwd.; 10T aft; 60T tow hook. Line Pull: 55MT. Main Engines: 2 x Yanmar T240A-ET total 2,800BHP. Kort nozzles. P/S Tailshaft Surveys due Sept. 2018. Bollard Pull: 40.1MT. Gensets: 2 - 60kW / GM 4-71 380/220vAC. Firefighting: 150m3/hr. Quarters: 8 crew. See also file TG28133. Lower price. South America West Coast. End 2016. File: TG20127 Tug - Single Screw - 103.4' loa x 28.7' beam x 16.4' depth x 12.96' loaded draft. Built in 1971 by H.H. Bodewes Millingen*. Denmark flag. GRT: 282. Class: GL +100 A5 Tug E1 MC E1. 5 year cert passed March 2016. Dwt: 138T. Winch: Tow hook. Main Engine: 1 x Deutz 6M358 2,750BHP. FP prop. Kort nozzle. Bowthruster 184kW. Bollard Pull: 30T. Speed max 13.5kn. Genset(s): 2 - 140kVA; 1 - 70kVA 380vAC 3ph 50Hz. Quarters: 6 persons. For sale “as is, where is”. Class reportedly fully up to date. Lying idle. Class DNVGL passed March 2016 for 5 years H/M. Tow winch removed. Europe Northern. Prompt. File: TG26070 Tug - Azimuthing - 93.5' loa x 29.8' beam x 16.0' depth x 11.97' draft. Built 1984 by Sabah Shipyard; Malaysia. Rebuilt: 2007. Panama flag. GRT: 251. Class: LR + 100A1 disc. Last drydocked July 2011. Dwt: 174T. FO: 41.4m3. FW: 25.62m3. BW: 5.98m3. Winch: Single drum hyd. Hatlapa. Line Pull: 80MT. Wire Capacity: 250m. Main Engines: 2 x Deutz SBV6M628 total 2,720BHP. Wartsila completed overhaul of M/Es in 2007. Bollard Pull: 30T. Speed 12kn on 6m3/day. Genset(s): 2 - 68kW / Deutz F6L914 400vAC 3ph 50Hz. Firefighting: 600m3/h. 2 - water/foam monitors 3,000Lpm. AirCon. Galley. Harbor azimuthing "tractor" tug with drives forward and skeg aft. Drydocked, blasted & painted 2007 when tug totally rebuilt including main engines, Schottel drives, Kolbelt controls, etc. Sale “as is, where is”. Call for latest lower price ideas. South America East Coast. End 2016. File: TG26153 Tug - Tractor - 96.0' loa x 31.6' beam x 11.8' depth x 14.4' draft. Built 1987 by Martin Jansen GmbH; Germany. GRT: 254. Class: BV I +Hull, +Mach, Unrestricted exp. June 2017. FO: 110m3. FW: 25m3. Winch: 1- 35T aft with 1 - 35T tow hook. Line Pull: 70T brake. Main Engines: 2 x Deutz SBV6M628 total 2,682BHP. Voith Schneider 26 G 11 props. Bollard Pull: 30T. Speed 11.8kn. Pump(s): FiFi: 2 - 360m3/h. Genset(s): 2 - 80kW / MWM, 400/220vAC 3PH / 50Hz. Quarters: 10. Indian Ocean. File: TG26110 Tug - Twin Screw - 109.0' loa x 33.0' beam x 15.5' depth x 14.0' draft. Built in 1977 by Sing Koon Seng Pte. Ltd; Singapore. GRT: 369. Class: GL +100A5 +MC exp. April 2016 Dwt: 177T. 30'x33' deck. FO: 65,000g. FW: 20,000g. Winch: Smatco. Line Pull: 50T SWL. Main Engines: 2 x Deutz SBA8M528 total 2,660BHP. Kort nozzles. Bollard Pull: 30MT. Speed 910kn. Genset(s): 2 - 100kVA; 1 - 60kVA. 2 foam/water monitors 60m3/h @ 55m range. Quarters: 12 crew. Mid-East. Prompt. File: TG26090 Tug - Twin Screw - 90.0' loa x 28.0' beam x 11.6' depth x 11.0' draft. Built 1977 by Houma Shipbuilders; Houma, LA. Vanuatu flag. GRT: 203. ABS Loadline LL. FO: 56,230g. FW: 3,740g. Winch: Double drum waterfall Smatco. Line Pull: 60T. Wire Capacity: 5,000' x 1.5". Stern Roller. Main Engines: 2 x GM 16V149TI total 2,650BHP. 80" dia 4-blade props. Kort nozzles. Bollard Pull: 30T. Speed 8-10kn on 62gph @ 8kn. Genset(s): 2 - 30kW 60Hz. Quarters: 9 in 9 cabins. Galley. Africa West Coast. File: TG25086 Tug - Twin Screw - 85.3' loa x 30.8' beam x 14.1' depth x 11.16' draft. Built 1998 by Shanghai Fishing. Guatemala flag. GRT: 222. Class: BV I +Hull, +Mach, Tug, Unrestricted. Renewal due 16 Dec. 2018. Docking due 05 Aug. 2018. FO: 125m3. Winch: Tow hook. Main Engines: 2 x CAT 3512TA total 2,560BHP. P/S Tailshaft surveys due 05 Aug. 2020. Bollard Pull: 28MT. Speed about 11.3-12kn. Genset(s): 2 - 85kW 380/220vAC 50Hz. Central America West Coast. End 2016. File: TG25124 Tug - Twin Screw - 125.0' loa x 30.2' beam x 13.9' depth x 14.43' draft. Built in 1976 by Mitsui Ocean / Ima Seisakusho; Japan. Bahrain flag. GRT: 338. Class: ABS + A1 E, IR SUL, IY, Tug. Dwt: 430mt. FO: 58MT. FW: 290m3. BW: 260MT. Crane: 1-6T. Winch: Single drum tow. Wire Capacity: 800m x 48mm. Main Engines: 2 x Niigata 6MG25BX total 2,500BHP. 2 - FP prop(s). Kort nozzle(s). Bowthruster. Bollard Pull: 36MT. Speed about 10kn max on 6.2MTpd. Genset(s): 2 - 100kVA; 1 60kVA 415vAC 50Hz. Quarters: 12 crew. AirCon. Galley. Bow fendering. Mid-East.

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70

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG24079 Multicat - Triple Screw - 81.9' loa x 37.7' beam x 11.5' depth x 9.50' loaded draft. Built in 2008 by Astilleros Armada; Vigo, Spain. Panama flag. GRT: 249. Class: GL + 100A5 K (50) MC Working boat & Tug. FO: 121.01m3. FW: 68.04m3. BW: 79.94m3. Crane: 1 - 10MT @ 14m; 1 - 6.4MT @ 12.62m. Winch: 30T tow @ 80T AH. Line Pull: 30T - 80T. Wire Capacity: 35mm x 500m / 50mm x 100m. Stern Roller. Main Engines: 3 x Iveco Vector 750 total 2,448BHP. 3 - FP prop(s). Kort nozzle(s). Bowthruster 250BHP. Bollard Pull: 30T. Speed about 8.0-11.5kn on 8MT/day. Pump(s): MDO: 1 - 60m3/h; FW: 1 - 60m3/h. Genset(s): 2-100kW / Iveco 50Hz 230/400v; 1-20kVA. Quarters: 3 - 2 berth cabins. AirCon. Galley. Multipurpose triple-screw Multicat design tug/workboat. Two Heila HLRM deck cranes. 2 - 550nm spud pole. 2 - 15T capstans. 1 - 15T hydraulic tugger. Shark jaws for 3" max chain. 160T SWL bow & 60T SWL stern rollers. 1,000mm moon pool. Deck fittings for 20' container. Preinstallation for 4-point mooring. See also file UB08541 for close sister vessel. Southeast Asia. Prompt. File: TG24205 Tug - Twin Screw - 93.3' loa x 28.0' beam x 13.8' depth x 10.9' draft. Built 1979 by Merwede; Hardinxveld; Holland. Class: SAC (Local); Ex BV / LR. Last DD May 2015. Dwt: 194. 34m2 deck. Winch: 2 - 35T Jordao; 30T Tow Hook. Wire Capacity: 300m x 1.25". Main Engines: 2 x CAT 3512 total 2,414BHP. 2 - FP prop(s). Bollard Pull: 37MT. Speed about 12kn max on 84g/hr@100%MCR. Firefighting: 1,600gpm. Keen Seller. Price reduced. Central America. File: TG22108 Tug - Twin Screw - 80.0' loa x 26.2' beam x 14.2' depth x 9.85' draft. Built 1982 by Astilleros Cartagena. Panama flag. GRT: 291. Last DD Dec 2015. Dwt: 192mt. 56m2 clear deck. Main Engines: 2 x CAT D399 total 2,400BHP. Refurbished engine 2014. Bollard Pull: 27MT. Speed about 8-11kn. Genset(s): 2 - 35kVA / Stamford C245B 220vAC 60Hz driven by GM4L-71. Firefighting: FiFi 3,000gpm. Coastal / Harbor / Firefighting tug. Sold to current Owner by Marcon. South America West Coast. File: TG23105 Tug - Single Screw - 95.5' loa x 27.1' beam x 10.0' depth x 10.0' draft. Built 1957 by Ira S, Bushey & Sons, Brooklyn. U.S. flag. GRT: 198. Loadline expired, but can reportedly regain. FO: 14,000g. FW: 2,500g. Main Engine: 1 x EMD 12645E7 Turbo 2,400BHP. 99" x 66" SS prop on 9" shaft. Repowered 1983. Gensets: 2 - 75kW / GM 4-71 240/480vAC. Quarters: 21, 3-2 person berths. Reportedly "ready-to-go". New galley. Molded rubber sub fendering. Needs cosmetics. U.S. East Coast. File: TG24064 Tug - Twin Screw - 82.2' loa x 27.0' beam x 11.8' depth. Built 2008 by Fulsail Sdn. Bhd. Singapore flag. GRT: 180. Class: NKK. FO: 129,000L. FW: 56,000L. Winch: 30T. Main Engines: 2 x Cummins KTA38-M2 total 2,400BHP. Kort nozzles. Gensets: 2 - 78kW. Quarters: 8 in 5 cabins. Owners prefer to sell with 300' deck barge, but can sell individually. Southeast Asia. File: TG24065 Tug - Twin Screw - 101.7' loa x 29.5' beam x 13.1' depth x 10.5' draft. Built 2008 by Tang Tiew Hee & Sons; Sibu. GRT: 294. Class: GL +100A5 Tug, +MC thru 06/2018. Drydocking due 07/2016. FO: 235m3. FW: 33m3. BW: 36.0m3. Winch: 100T brake single drum tow & 30T SWL hook. Wire Capacity: 650m x 42mm. Main Engines: 2 x Cummins KTA38M2 total 2,400BHP. Kort nozzles. P/S Shaft surveys due 07/2018. Bollard Pull: 32T. Speed 9-11kn. Genset(s): 2 - 80kW / Cummins 6BT5.9D 415vAC 50Hz 3Ph. Quarters: 15 persons in 5 cabins. Two ocean tugs direct from Owners. Sale “as is, where is”. Mid-East. Prompt. File: TG24091 Tug - Azimuthing - 90.0' loa x 33.0' beam x 13.0' depth x 17.0' draft. Built 1994 by North American Ship; Larose, LA. U.S. flag. GRT: 147. Class: ABS +A1, Towing Service, +AMS, Unrestricted. Exp. Aug. 31, 2019. Dwt: 343lt. FO: 35,000g. FW: 20,000g. BW: 154MT. Winch: Brattvaag hyd. single fore & double drum aft. Main Engines: 2 x CAT 3512DITA total 2,400BHP. Ulstein FP azimuthing props. Bollard Pull: 32.5ST. Speed 12kn free. Genset(s): 2 - 150kW. 1 - 3,500gpm fire monitor. Quarters: 12 in 6 cabins. AirCon. Galley. About 65,000lb bollard pull forward. “as is, where is”. U.S. Gulf Coast. File: SU13141 Multipurpose - 131.2' loa x 120.7' lbp x 32.8' beam x 12.1' depth x 10.2' draft. Built 2011 by Guangzhou Panyu Lingshan Shipyard. Singapore flag. GRT: 481. NRT: 144. Class: BV I Tug +Hull +Mach, Special Services/Standby Rescue,100 Survivors. Docking due 12 Jun 2016. Dwt: 100T. 104m2 clear deck. Deck Load: 5T/m2. FO: 244.74m3. LO: 2m3. FW: 110m3. BW: 110m3. 2 - 830kg stockless anchors. Crane: 5T Sormec knuckle boom. Winch: 100T brake single drum hydraulic & 1 - 5T tugger. Line Pull: 40T. Wire Capacity: 600m x 36mm. Main Engines: 2 x Cummins KTA 38 M2 total 2,400BHP at 1,800RPM. Reintjes 6:1 gears. Kort nozzles). P/S Tailshaft Surveys due 12 June 2016. Bowthruster 3T. Bollard Pull: 30T. Speed about 12kn max on 9.5m3/d@85%MCR. Pump(s): Fire: 1,200m3 FFS pump. Genset(s): 3 - 215kW / CAT 3406C 415vAC 50Hz. Firefighting: 2600m3/hr monitors. CO2 flooding in engine room. Foam: 1.7m3. Quarters: 20 in 7 cabins. Passengers: 100 survivor recovery. 40m multipurpose standby safety vessel. 5T capstan. Oil dispersant: 2m3. 2 - 20 person FRP rescue boats with davits. Southeast Asia. File: TG22138 Tug - Twin Screw - 85.4' loa x 30.5' beam x 11.5' depth x 8.53' draft. Built 2004 by BV Scheepswerf Damen Hardinxveld. Panama flag. GRT: 212. Class: BV I 3/3 (E) Tug Unrestricted. Dwt: 200mt. FO: 130m3. FW: 28m3. Crane: 7.5T @ 15m. Winch: Ridderinkhof double drum + 35T tow hook. Line Pull: 50T@6m/min. Wire Capacity: 600m & 300m x 36mm. Main Engines: 2 x CAT 3508B-TA total 2,244BHP. Kort nozzles. 45 deg. fishtail rudders. Bowthruster 100kW. Bollard Pull: 30MT. Speed 10-11.5kn. Genset(s): 2 - 70kW / John Deere 4045TFMAC AC. Quarters: 7 persons. AirCon. Galley. Damen Shoalbuster 2609 design tug suitable for anchor handling, towing & dredge support. 3 hydraulic towing / anchor handling pins. 1 - 6T tugger. Open for outright sale or long term charter with purchase option to qualified operators. Australia. Prompt. File: TG22107 Tug - Twin Screw - 85.0' loa x 28.0' beam x 11.0' depth. Built in 1961 by American Marine Corp. U.S. flag. GRT: 181. NRT: 54. Class: ABS Loadline exp. Aug. 31, 2016. FO: 16,500g. Winch: H-Bitt on stern. Main Engines: 2 x EMD 12-567BC total 2,200BHP. 2 - 84" x 55" 4-blade FP prop(s). Genset(s): 2. AirCon. Galley. U.S. Southeast.

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

71

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG22076 Tug - Twin Screw - 75.0' loa x 24.1' beam x 7.3' depth. Built in 1981 by L.A.D. Construction; Gibson, LA. U.S. flag. GRT: 98. Class: None. FO: 24,000g. FW: 5,000g. Winch: Smatco single drum/GM4-71. Line Pull: 30T. Wire Capacity: 1,800' x 1.25". Main Engines: 2 x CAT 3508 total 2,200BHP. 64" x 53" 4-blade stainless prop(s) on 6" Stainless shaft(s). Re-powered / Rebuilt late 1990s. Genset(s): 2 - 40kW / GM4-71. Quarters: 5 berths in 3 cabins. AirCon. Galley. Three control stations including elevated Pilot House. Model Bow. U.S. Northeast. File: TG22105 Tug - Single Screw - 105.0' loa x 30.0' beam x 10.3' depth x 12.60' loaded draft. Built in 1966 by Main Iron Works, LA. U.S. flag. GRT: 194. FO: 38,276g. FW: 13,000g. Winch: 2 - Beebe face winches. Wire Capacity: 1,200' x 8" nylon. Main Engine: 1 x EMD 16-567D5LL total 2,200BHP. 1 - 106" x 75" FP prop(s). Genset(s): 2 - 60kW / GM6-71 / Delco. 26' height of eye. Model bow. Tug reportedly in excellent condition after extensive shipyard work. U.S. East Coast. File: TG22109 Tug - Twin Screw - 104.9' loa x 27.9' beam x 14.4' depth x 10.8' draft. Built 1966 by Mitsubishi Hvy. Ind., Shimonseki. Panama flag. GRT: 236. Class: IBS. FO: 70T. FW: 30T. Winch: 36T towing. Main Engines: 2 x GM 16V149 total 2,200BHP. Bollard Pull: 27T. Speed 8-10kn on 3.5Tpd. Gensets: 2 - 62.5kVA/ GM 3-71 220/110vAC 3ph. Mid-East. File: TG22143 Tug - Single Screw - 72.0' loa x 21.5' beam x 9.8' depth. Built 1973 by Hillstrom Shipbldg., Coos Bay, OR. U.S. flag. GRT: 85. FO: 11,000g. FW: 1,380g. Winch: Single drum. Main Engine: 1 x CAT 3516-D1 2,200BHP. 83" x 48" 4-blade FP prop on 6" shaft. M/E new 1983: Genset(s): 2 - 50kW / CAT3306, 120/208 - 240/416v AC. Quarters: 4 berths in 1 cabin. Galley. Steel construction. Turnkey. Very good condition. Flanking rudder. Last dry-docked Sept 2015. U.S. Northwest. File: TG21001 / TG21006 Tugs - Single Screw (2 each) - 97.9' loa x 24.7' beam x 14.0' depth x 12.0' draft. Built in 1952 / 1953 by 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 2,150BHP. Last Overhauled: 2001. 92" x 46" 5-blade stainless prop(s). Genset(s): 2. Quarters: 4 berths. Some washboarding in hull and dents along main deck line. Owner keen to sell and inviting all serious cash offers. U.S. West Coast. Prompt. File: TG20688 Tug - Twin Screw - 88.6' loa x 26.9' beam x 11.8' depth x 9.3' draft. Built 2006 by Fulsail Sdn Bhd; Sibu, Malaysia. Indonesia flag. GRT: 196. Class: BKI. Formerly NK. NS* (TUG) MNS*. Dwt: 152mt. FO: 110m3. FW: 43m3. Winch: 30T tow hook. Main Engines: 2 x Mitsubishi S6R2-MTKL-3 total 2,064BHP. Kort nozzles. P/S Tailshaft Surveys due 13 Jul 2016. Bollard Pull: 25T. Speed about 11kn. Gensets: 2 - 78kW / Cummins 6BT5.9DM. Galley. Marcon, as sole broker, has sold several other tugs & barges direct from these Owners. Southeast Asia. Prompt. File: TG20190 Tug - Twin Screw - 85.3' loa x 26.2' beam x 12.0' depth x 9.8' draft. Built in 2005 by Forward Shipbldg. Enterprise; Sibu. Indonesia flag. GRT: 197. Class: BKI Tugboat +A100 (I) P active. Formerly GL thru 2007. FO: 118m3. FW: 39m3. Main Engines: 2 x Mitsubishi S6R2-MPTK2 total 2,060BHP. Kort nozzles. Bollard Pull: 20T. Gensets: 2 - 40KW / Yanmar 4TNE106G1A 415vAC 50Hz. Firefighting: 1 - 300m3/h Eurflo 100/26 PBM external FiFi pump. AirCon. Galley. Marcon, as sole broker, has sold several other tugs & barges direct from these Owners. Southeast Asia. Prompt. File: TG20109 Tug - Single Screw - 108.5' loa x 29.0' beam x 16.3' depth x 13.65' draft. Built 1965 by Marinette Marine; Marinette, WI. U.S. flag. GRT: 147. FO: 63,000g. FW: 7,000g. Winch: Swain single drum 6-71. Wire Capacity: 2,800' x 1 3/4". Main Engine: 1 x Fairbanks Morse 38D8-1/8 total 2,000BHP. 144' x 112" 4-blade stainless prop(s). Wesmar 24" dual prop thruster. Heat exchange cooling. Bowthruster 125BHP. Bollard Pull: 30.5T. Speed about 12kn free on 80gph. Pump(s): 100gpm bilge & ballast pumps @ 35 psi. Genset(s): 2 - 75kW / GM6-71 208vAC 60Hz. Firefighting: 2,000gpm fire pump. Quarters: 6 in 2 stateroom. AirCon. Galley. Ex-US Navy YTB-780 Tug. Welded steel single chine. Hydraulic tow pins. Six man liferaft. Dry-docked 2007: hull sand-blasted, painted, new zincs. Fuel and water tanks meticulously cleaned. Many recent maintenance items addressed with upgrades. Very good, turn key condition. Owner is keen Seller inviting cash offers after inspection. U.S. Northwest. Prompt. $315,000. File: TG20118 Tug - Twin Screw - 98.4' loa x 28.2' beam x 13.5' depth x 11.48' draft. Built 2005 by Malaysian shipyard. GRT: 254. Class: BV I +Hull, +Mach, Tug, Unrestricted. 60m2 clear deck. FO: 221MT. FW: 64MT. BW: 39MT. Winch: 70T brake single drum + capstan. Wire Capacity: 40mm x 600m. Main Engines: 2 x CAT 3508B total 2,000BHP. FP prop(s). P/S Tailshaft Surveys due 29 Aug. 2019. Fore & aft controls. Bollard Pull: 25T. Speed about 11-12kn. Genset(s): 2 - 56kW / Cummins BTA5.9DM 415vAC 50Hz 3Ph. Firefighting: CO2 flooding system. Quarters: 14 in 4 cabins. AirCon. Galley. 30 day endurance. Southeast Asia. File: TG20098 Tug - Twin Screw - 91.8' loa x 26.2' beam x 12.3' depth. Built 2012 by CV Sunjaya Abadi. Indonesia flag. Class: BKI. Main Engines: 2 x Yanmar 6RY17PGV total 2,000BHP. Genset(s): 65kVA / Yanmar. Bank owned. Southeast Asia. File: TG20121 Tug - Twin Screw - 95.0' loa x 26.2' beam x 12.1' depth. Built in 2005 by CV Sunjaya Abadi. Indonesia flag. GRT: 235. Class: BKI. Main Engines: 2 x CAT 3508 total 2,000BHP. Genset(s): 50kVA / Deutz. Bank owned. 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 – August 2016

File: TG20178 Tug - Twin Screw - 123.4' loa x 30.2' beam x 13.8' depth x 11.8' draft. Built in 1984 by Ishii Zosen K.K.; Japan. Foreign flag. GRT: 420. Class: ABS +A1 Towing, (E), +AMS, Unrestricted. Special Survey due Jul 02, 2018. Docking due Jul 10, 2016. 13m x 7m clear deck. FO: 3m3. FW: 750L. Winch: Single drum, 48T brake. Line Pull: 24T@6m/min. Wire Capacity: 1,000m x 40mm. Stern Roller. Main Engines: 2 x Yanmar 6G-ST total 2,000BHP. 2 - bronze FP prop(s). Kort nozzle(s). P/S Tailshaft Surveys due Jan 16, 2017. Bowthruster 3T. Bollard Pull: 25T. Speed about 12kn. Genset(s): 2 - 96kW / Yanmar; 1 - 32kW / Yanmar. Quarters: 10 persons. AirCon. Anchor handling tug. A-frame aft. Mid-East. File: TG20174 Tug - Twin Screw - 93.5' loa x 26.2' beam x 12.3' depth x 10.30' loaded draft. Built in 2008 by Sunjaya Adabi; Indonesia. Indonesia flag. GRT: 203. Class: BKI. Main Engines: 2 x Mitsubishi S12A2-MPTK total 2,000BHP. Speed about 11kn. Genset(s): 2 - 30kVA / Deutz. Quarters: 12 crew. Available for sale direct from bank creditors. As brokers only, we invite your best firm cash offers to test after inspection. Southeast Asia. Prompt. File: TG20203 Tug - Twin Screw - 98.4' loa x 28.2' beam x 13.5' depth. Built in 2016. Foreign flag. Class: NKK. Main Engines: 2 x Yanmar total 2,000BHP. Five newbuilding twin screw tugs. Further technical details available on request. Sale “as is, where is” subject to availability at time of commitment. Southeast Asia. File: TG19092 Tug - Azimuthing - 85.6' loa x 28.9' beam x 13.3' depth x 11.16' draft. Built 1982 by Brodomosor; Yugoslavia. Croatia flag. GRT: 230. Class: Croatian Register of Shipping. FO: 80m3. FW: 20m3. BW: 30m3. 30kN SWL tow hook; 1 - 25kN @ 12m/min capstan. Main Engines: 2 x MAN 8L20/27 total 1,932BHP. Liaaen 4-blade CP props. Kort nozzles. Cruising range: 2,400nm @ 80% MCR. Bollard Pull: 27T. Speed about 13kn trial. Genset(s): 2 - 125kVA 380vAC 50Hz. 2 - 250m3/h fire pumps. Foam: 10m3. Quarters: 6 berths in 4 cabins. Reportedly high standard of accommodations. Sale “as is, where is”. Mediterranean. File: TG18063 Tug - Twin Screw - 64.3' loa x 26.0' beam x 10.0' depth x 10.00' loaded draft. Built in 1981 by Garber Shipyard; Berwick, LA. Rebuilt: 2007. Foreign flag. GRT: 134. Class: SAC. Dwt: 37T. 14m2 clear deck. FO: 12,000g. FW: 20T. Winch: Tow Hook only. Main Engines: 2 x Cummins KTA38 total 1,880BHP. 2 - bronze FP prop(s). Repowered 2007. Bollard Pull: 19T. Speed about 10kn. Firefighting: 150m3/h monitor. AirCon. Galley. Dispersant - 3m3. Caribbean. File: TG18080 Tug - Twin Screw - 78.5' loa x 25.0' beam x 11.7' depth x 9.50' light draft. Built in 1977 by Modern Marine Power; Houma, LA. U.S. flag. GRT: 98. Class: ABS + A1 Towing Service + AMS exp. March 2018. FO: 43,916g. Winch: Single drum. Main Engines: 2 x GM 16V149 total 1,800BHP. Gensets: 2 - 50kW / GM471. Elevated pilothouse. Reportedly good condition. Owner will not sell into competition. U.S. Northeast. File: TG17134 Tug - Twin Screw - 70.5' loa x 23.6' beam x 11.8' depth x 11.48' draft. Built in 1983 by Sanym SA; Argentina. Costa Rica flag. GRT: 111. DNV disclassed. FO: 54.4m3. FW: 11.84m3. Tow hook. Main Engines: 2 x CAT D398 total 1,750BHP. 2 - FP prop(s). Bollard Pull: 24MT. Speed about 9kn. Genset(s): 2 - 25.4kW / Mercedes Benz 60Hz. Firefighting: 2 - Jabsco pumps. Quarters: 9 crew (1-4, 2-4 berth). AirCon. Passengers: 1-1 berth cabin. Central America West Coast. File: TG17002 Tug - Twin Screw - 70.0’ x 26.0' beam x 10.5' depth x 9.0' draft. Built i1986 by M.F. Martin, Jr.; Brunswick, GA. U.S. flag. GRT: 126. Winch: None. Main Engines: 2 x CAT D398 total 1,700BHP. Kort nozzles. Bollard Pull: 25T. Firefighting: 1,000gpm. Quarters: None. AirCon. Fully fendered for safe handling of submarines & surface vessels. U.S. Southeast. File: TG17091 Tug - Twin Screw - 90.4' loa x 88.3' lbp x 27.1' beam x 12.0' depth x 11.0' draft. Built 1966 by Bollinger Machine; Lockport, LA. U.S. flag. GRT: 178. NRT: 121. ABS Loadline exp. March 2014 - but currently in lay-up status. FO: 35,000g. LO: 500g. FW: 10,000g. BW: 2,500g. Windlass: 2-electric capstans. Winch: Almon Johnson single drum / GM6-71. Wire Capacity: 1,800' x 1.75" capacity. Main Engines: 2 x CAT D398B total 1,700BHP at 1,225RPM. Reintjes WAV-951 5.31:1 gear(s). 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. Laidup. 19' height of eye / 48' air draft. Sold to current Owner via Marcon. Not officially for sale, but may consider sale “as is, where is” with recently acquired heavier Reintjes gears. Planning to install same. Contact Marcon for further guidance. U.S. Northwest. File: TG17062 Tug - Twin Screw - 93.0' loa x 26.0' beam x 9.5' depth. Built in 1958 by Gulfport Shipbldg.; Pt. Arthur, TX. U.S. flag. GRT: 149. FO: 34,000g. FW: 43,000g. Winch: Hydraulic Capstan. 300' x 8" line. Main Engines: 2 x CAT D398 total 1,700BHP.82" x 54" 4-blade props. Bollard Pull: 20T. Speed 9.5kn. Gensets: 2 - 40kW / GM 4-71. 6 berths. Galley. Keen Seller. U.S. West Coast. File: TG17101 Tug - Twin Screw - 100.0' loa x 28.6' beam x 14.4' depth x 11.00' light draft x 13.00' loaded draft. Built in 1966 by Halter Marine; Escatawpa MS. U.S. flag. GRT: 195. Class: ABS Loadline exp. Dec. 23,2018. FO: 45,870g. FW: 4,590g. Winch: Smatco 44 single drum / GM3-71. Wire Capacity: 1,800' x 1.5". Main Engines: 2 x CAT D398 total 1,700BHP. 2 - 100" x 60" Stainless FP prop(s) on 8" shaft(s). M/Es new in 1988. Genset(s): 2 - 50kW / GM 4-71. Quarters: 4 cabins. AirCon. Galley. Conventional model bow. Upper pilot house. Level wind. Tow Bar. Boiler. Reportedly excellent overall condition. U.S. Northeast.

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

73

Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG16582 Tug - Twin Screw - 82.0' loa x 24.9' beam x 11.5' depth x 8.86' loaded draft. Built in 2007 by Mariana Bahagia, P.T.; Indonesia. Indonesia flag. GRT: 183. Class: BKI Tugboat IW +100 (I) P, +SM. Annual Survey due 30 Aug. 2016. Docking & Special due 28-30 May 2017. FO: 109m3. FW: 20m3. Winch: 60T tow hook only. Main Engines: 2 x Yanmar 6AYM-ETE total 1,658BHP. 2 - FP prop(s). Kort nozzle(s). P/S Tailshafts due 22 Apr. 2017. P/S ME hrs. 5,455/5,656 since o/h 1/16. Bowthruster. Genset(s): 2 - 35kW / Yanmar 4TNE98-G1A400vAC. Firefighting: per SOLAS requirements. Lifesaving equipment per SOLAS requirements. Marcon, as sole broker, has sold several other tugs & barges direct from Owners. Southeast Asia. Prompt. File: TG16589 Tug - Twin Screw - 88.6' loa x 24.6' beam x 9.8' depth x 8.9' draft. Built 1993 by PT Rejeki Abadi Sakti; Indonesia. GRT: 165. Class: BKI +A100 (II) P Tug Boat, SM suspended. FO: 110T. FW: 34T. Winch: Hyd. 40MT, single drum. Wire Capacity: 1,000'. Main Engines: 2 x CAT D398 total 1,650BHP. Kort nozzles. Endurance: 24 days; Range: 3,000nm. Bollard Pull: 22T. Speed 8.5kn on 4.5Tpd. Gensets: 2 - 30kW / Mitsubishi 380/230vAC 50Hz 3Ph. Quarters: 10 persons. Laid up. Southeast Asia. File: TG17118 Tug - Single Screw - 128.0' loa x 22.0' beam x 11.5' depth x 15.3' draft. Built 1912 by Cochrane & Sons; UK. Rebuilt: 1999. Canada flag. GRT: 271. Hold: 80T in one hold. FO: 23,000g. FW: 4,000g. Winch: Hydraulic single drum Burrard + warping head. Wire Capacity: 2,000' x 2" 1WRC + 500". Main Engine: 1 x EMD 16-567BC 1,640BHP. Repowered 1976. 102" x 104" 5B1H1 - skew prop on 10" shaft. Kort nozzle. Triple rudders. 5/00 60 hrs. since overhaul; Updated to D class. Bowthruster 24" dia. Bollard Pull: 30MT. Speed about 12kn. Gensets: 2 - 25kW / GM4-71 110vDC. Quarters: 5 berths, 5 cabins. Galley. Historic tug. Very last of over 1,000 first generation steam trawlers & halibut fishers, 14 of which came to Pacific Northwest 1905 - 1913. One of 3 identical sister-vessels built in Selby, England to dory-fish halibut in Pacific Northwest. Sailed to Canada via Straits of Magellan as coal-fired steam auxiliary ketch. Converted to diesel tug in 1939. All blueprints & written costs of conversion available. All portholes from first "Empress of Japan" scrapped in 1929. Chartered to U.S. Army for service in Aleutian Islands during WWII. New wheelhouse 1980s. Spare prop. Triple rudder. Entire hull, frames, bulkheads & tanks all re-worked and new paneling, galley, etc. in 1999-2000. Hull and topsides reportedly in good condition. Sale “as is, where is”. Canada West Coast. File: TG16151 Tug - Twin Screw - 77.1' loa x 71.4' lbp x 24.0' beam x 10.5' depth x 8.9' draft. Built 2002 by Lingco Marine; Sibu, Malaysia. Indonesia flag. GRT: 131. NRT: 40. Class: BKI. Dwt: 103mt. FO: 90MT. 2-360kg stockless anchor(s). Wire/Chain Dia.: 19mm. Main Engines: 2 x Mitsubishi S6R2-MPTK total 1,636BHP at 1,500RPM. Reintjes WAF464 4.579:1 gear(s). 2 - FP prop(s). Bollard Pull: 20.5T. Genset(s): 2 - 25kW / Yanmar. Radar. GPS. Fathometer. SSB. VHF. Pusher tug. Southeast Asia. File: TG16110 Tug - Twin Screw - 85.9' loa x 26.2' beam x 12.5' depth. Built in 2016. Foreign flag. Class: NKK. Main Engines: 2 x Yanmar total 1,634BHP. Two newbuilding twin screw tugs. Sale “as is, where is” subject to availability. Southeast Asia. File: TG15093 Tug - Single Screw - 92.5' loa x 24.3' beam x 12.8' depth x 11.6' draft. Built 1957 by Todd Shipyard; Seattle. Rebuilt: 1978. U.S. flag. GRT: 162. FO: 19,000g. FW: 3,380g. Winch: Single drum Foss tow. Wire Capacity: 1,500' x 1 5/8". Stern Roller. Main Engine: 1 x EMD 12-645E6 1,600BHP. 96" x 112" 4-blade steering prop. Kort nozzle. Repowered 1977. Bollard Pull: 24ST. Gensets: 2-75kW/GM6-71 460/115vAC. 25HP electric 3" fire pump. Quarters: 6. Galley. KEEN SELLER. INVITING ALL OFFERS. Wood pilothouse. Good fendering. Good log towing. Flying bridge. Sold to current owners thru Marcon. U.S. Northwest. File: TG16070 Tug - Twin Screw - 73.8' loa x 24.0' beam x 11.8' depth x 10.99' draft. Built 1981 by J Manly Shipyard; Vancouver, BC. Peru flag. GRT: 71. Class: IBS (formerly BV but built to LR). FO: 50m3. FW: 12m3. DW: 1m3. Tow hook. Main Engines: 2 x GM 12V149NA total 1,600BHP. Kort nozzles. Range: 3,360nm. Bollard Pull: 25MT. Speed 10kn. Genset(s): 2 - 90kW / GE; 2 25kW / Aux. 220vAC 60Hz. FiFi: 18m3/hr pump; 1 - 150Psi monitor. Quarters: 2 - officer; 4 - crew. South America West Coast. File: TG14580 Tug - Twin Screw - 80.0' loa x 22.0' beam x 7.1' depth. Built in 1970 by 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 - 72" x 46" FP prop(s). Bollard Pull: 14ST. Genset(s): 2 - Perkins 6-354 diesel powered gensets 208v 3ph 60Hz. Quarters: 6 bunks. Galley. Working tug. Fully operational. U.S. West Coast. File: TG14115 / TG14116 / TG14118 Tugs - Twin Screw (3 each) - 85.3' loa x 30.2' beam x 11.8' depth x 9.2' draft. Built 2007 / 2008 / 2008 respectively by Berjaya Dockyard Sdn Bhd; Malaysia. Singapore flag. GRT: 224. Class: BV I + Hull + Mach Unrestricted. 80.8m2 clear deck. FO: 90m3. FW: 60m3. Crane: 1-SWL 5T @ 12m ME telescopic type 60T/m. Winch: 1-40T ME single drum hydraulic. Line Pull: 80T. Stern Roller. Main Engines: 2 x CAT 3412 DITA total 1,442BHP. 2 - FP prop(s). Bollard Pull: 12.6T. Speed about 10kn. Genset(s): 2 - 78kW AC / Cummins 6bt 5.9G2. Quarters: 8 in 5 cabins. Southeast Asia. File: TG13075 Tug - Twin Screw - 73.9' loa x 22.3' beam x 11.2' depth x 8.53' loaded draft. Built in 1981 by BV Scheepswerf Damen; Netherlands. Foreign flag. GRT: 128. Dwt: 60mt. Winch: Tow hook. Main Engines: 2 x GM 12V149TI total 1,350BHP. 2 FP prop(s). Bollard Pull: 16MT. Genset(s): 1 - 104kW 380vAC 50Hz. Call for lower price ideas. South America West Coast.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG17079 Tug - Single Screw - 79.3' loa x 26.8' beam x 10.8' depth x 13.45' loaded draft. Built in 1977 by AB Asi-Verken, Amal. Denmark flag. GRT: 124. Class: LR + 100A1 + LMC. Ice Class 1A. Coastal Trade. Special Survey due 06/2019. Docking due 06/2017. Winch: Tow hook & polypropylene. Main Engine: 1 x Alpha 12V23L-VO 1,280BHP. CP prop. Reportedly only 7,500 running hours on M/E. Tail shaft survey due 06/2019. Bollard Pull: 18.5T. Speed about 13kn max. Genset(s): 2 - 110kW / Scania 380vAC 50Hz. Quarters: 3 persons. Certified bollard pull. Europe Northern. Prompt. File: TG12046 Tug - Twin Screw (2 each) - 77.2' loa x 24.3' beam x 11.1' depth x 8.48' loaded draft. Built in 2016. Foreign flag. Class: NKK. FO: 80T. FW: 28T. Winch: 1 - 15T tow hook. Main Engines: 2 x Cummins KTA13-M3 total 1,200BHP. 2 - 4-blade FP prop(s). Genset(s): 2 - 28kW. Quarters: 10 persons. Two newbuilding twin screw tugs. Southeast Asia. File: TG12115 Tug - Twin Screw - 65.0' loa x 20.0' beam x 7.5' depth. Built 1969. U.S. flag. GRT: 81. FO: 8,000g. Winch: NorCrane. Wire Capacity: 1,500' x 1.25". Main Engines: 2 x Cummins QSK19 Tier II total 1,200BHP. 3-blade FP props on 4" St. Steel shafts. New M/E and props installed Dec 2012. Abt 4200hr on each main ex Feb 2015. Speed about 8kn. Genset(s): 1 - 21kW / Isuzu 4LE2 (new 2012). Quarters: 2. Galley. Steel Hull, Fiberglass over Wood Wheelhouse. Model bow / Flat bottom. Reportedly in very good condition. Extensive renovation in 2012-2013 with new M/Es, Genset, reduction gears, winch, etc. U.S. West Coast. File: TG11060 Tug - Twin Screw - 60.0' loa x 20.0' beam x 7.8' depth. Built in 1970 by A.W. Covacevich Shipyard; Biloxi MS. Rebuilt: 2003. U.S. flag. GRT: 67. FO: 7,000g. FW: 2,000g. Winch: Skagit single drum / GM3-71 power. Line Pull: 25T. Wire Capacity: 900' x 1.5". Stern Roller. Main Engines: 2 x CAT C-18 total 1,100BHP. 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. Quarters: 4 berths. AirCon. Galley. Model bow coastal tug. Reportedly completely rebuilt in 2004. Reduced price. U.S. West Coast. File: TG11059 Tug - Twin Screw - 58.7' loa x 19.6' beam x 10.0' depth x 8.0' draft. Built 1980 by Damen, Netherlands. Rebuilt: 2007. GRT: 31. Class: Ex LR. FO: 26.4m3. LO: 1.1m3. FW: 4.5m3. Windlass: Hydraulic. Winch: 10T winch + tow hook. Main Engines: 2 x Cummins KTA19 total 1,100BHP at 1,800RPM. Twin Disc 6:1 gear(s). 2 - Kaplan FP prop(s). Kort nozzle(s). Bollard Pull: 13T. Speed about 11.7kn. Genset(s): 1 - 40kW / Perkins 230v 60Hz. Radar. GPS. Fathometer. VHF. Steering: Hydraulic. AirCon. Suitable for river use due to shallow draft. Rebuilt & converted to twin screw in 2007 with new or rebuilt auxiliary equipment like electric pumps, air compressors, pipes, valves, steering pumps, actuators and piping. Navaids. Accommodations and air conditioning. Internal ballast tanks. Keen seller. Reduced price “as is, where is”. Caribbean. Prompt. File: TG11056 Tug - Triple Screw - 56.0' loa x 15.7' beam x 5.2' depth. Built in 1948 by GM Nichols, Hood River, OR. U.S. flag. GRT: 38. FO: 7.400g. FW: 90g. Winch: Beebe 25L (fwd.) + Hydraulic aft. Wire Capacity: 1,100' x 7/8". Main Engines: 3 x CAT D343TA total 1,095BHP. 3 - FP prop(s) on 4" shaft(s). Heat exchange cooled. 32v DC start. Repowered in 1990. on 45gphGenset(s): 1 - 20kW / Deutz. Quarters: 3 bunks. Fitted with raised pilothouse with 29' eye level. Shallow draft. Inside work only and not suited for coastal towing. Reportedly in good condition. Contact Marcon for price ideas. U.S. West Coast. File: TG15113 Tug - Single Screw - 89.9' loa x 24.6' beam x 11.5' depth x 9.48' loaded draft. Built in 1975 by Scheepswerf Haak BV; Netherlands. Rebuilt: 1989. Denmark flag. GRT: 163. Class: BV I 3/3 EE Tug Ice 1 Super - Coastal trade. Winch: 12/30T. Main Engine: 1 x B&W 10V23LV0 total 1,067BHP. 1 - CP prop(s). Alpha diesel completely refurbished 1998/1999. Certified bollard pull. Bollard Pull: 18T. Speed about 12kn on 5T MGO. Genset(s): 2 - 130kVA / Valmont 380/220v. Quarters: 6 persons. Heavy iceclassed. Tow hook & tow winch. Reportedly in good condition. Periodically open for employment or sale. Europe Northern. File: TG10060 Tug - Triple Screw - 60.0' loa x 16.6' beam x 5.7' depth x 5.7' draft. Built 1952 by GM Nichols; Hood River, OR. Rebuilt: 1988. U.S. flag. GRT: 47. FO: 7,050g. FW: 185g. Winch: Wintech single drum. Wire Capacity: 1,200' x 1". Main Engines: 3 x Cummins QSM11-M35OKC total 1,050BHP. 51" x 37" FP props on 4" shafts. Keel coolers. Genset: 1 - 21.5kW / Kabota 240vAC. Quarters: 4 persons. Galley. Built for river & harbor service. Push knees forward. Upper pilot house. Reportedly good overall condition. Recent dry-docking, new tail shafts, bearings, props re-worked, etc. Working light duty in fresh water. U.S. West Coast. File: TG10069 Tug - Twin Screw - 68.9' loa x 23.0' beam x 10.8' depth x 7.87' draft. Built 1993 by Pacific Ocean Engineering; Malaysia. Indonesia flag. GRT: 119. Class: BKI Coastal disc. Dwt: 74mt. FO: 76.57m3. FW: 18.01m3. BW: 6.56m3. Winch: 1 - 15T tow hook. Stern Roller. Main Engines: 2 x Cummins KTA-19M1 total 1,000BHP. Kort nozzle(s). Endurance: 19 days, 146NM. Speed about 7.7kn on 150Lph MGO. Genset(s): 2 - 30kVA / Stamford 415VAC 50Hz 3Ph. Quarters: 10 berths in 3 cabins. 2 - 10 person life raft. Owner prefers to sell en-bloc with crane barges DK16275 & DK16276. Southeast Asia. File: TG10108 Tug - Twin Screw - 75.5' loa x 71.4' lbp x 23.0' beam x 9.5' depth x 7.87' draft. Built 1997 by Super-Light Shipbldg; Malaysia. Indonesia flag. GRT: 145. NRT: 44. Class: BKI +A100 (I) P, +SM. FO: 100m3. FW: 27m3. BW: 15m3. Winch: 15T tow hook. Main Engines: 2 x Cummins KTA19M total 1,000BHP at 1,800RPM. Twin Disc MG518-1 gear(s). 2 - FP prop(s). Flying bridge with steering station. Bollard Pull: 10T. Speed about 10kn on 3.8-4Tpd. Genset(s): 2 - 30kW / Deutz TD226-3 220/380vAC 50Hz. Firefighting: 2 - 150m3/hr CO2 monitors. Radar. GPS. Fathometer. SSB. VHF. Steering: Hyd. / Elec. Quarters: 10 berths in 3 cabins. Two 1,000W flood lights. Lifesaving equipment in accordance with SOLAS. Push knees. 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 – August 2016

File: TG09047 Tug - Twin Screw - 47.3' loa x 14.5' beam x 8.0' depth. Built 1960 by John J. Reich-Elizabeth, NJ. Rebuilt: 2004. U.S. flag. GRT: 32. FO: 2,500g. FW: 200g. Winch: Single drum hydraulic. Wire Capacity: 600' Spectra. Main Engines: 2 x GM Series 60 total 950BHP. 52" x 34" 3-blade bronze props on 4" stainless shafts. Range 750nm @ 6kn. Speed about 6-10kn on 916gpm @ 6kn. Genset(s): 1 - 10kW / Northern Lights. Quarters: 4 crew. Galley. 1/2" hull and deck plating. Keel coolers. Upper steering station. Engines regularly serviced, good condition and well maintained. Invite best, outright offers. U.S. West Coast. File: TG09538 Tug - Twin Screw - 40.0' loa x 15.2' beam x 8.7' depth x 9.6' draft. Built in 1974 by Campbell Industries; San Diego, CA. Rebuilt: 2005. U.S. flag. GRT: 23. Winches: Two Patterson hydraulic aft & capstan forward. Main Engines: 2 x GM 60 series total 950BHP. Last Overhaul: 2004. 58" x 41" props on 4" S.S. shafts. Keel coolers. Tier 2. Genset: 1 - 20kW. Passengers: 6. Harbor assist tug. 1/2" hull. Tow bitt, capstan on fore deck, upper conning position above small pilot house. Full fendering. Certified to carry six passengers as inspected, documented vessel. 2016 dry docking with complete sandblast, paint and refurbishment. As brokers only, we invite your best, outright firm cash offers for Owner's consideration. U.S. West Coast. File: TG09059 Tug - Twin Screw - 63.0' loa x 22.0' beam x 8.5' depth x 8.00' loaded draft. Built in 1971 by St. Charles Steel Fab, Inc. U.S. flag. GRT: 78. Main Engines: 2 x GM 12V71 total 680BHP. M/E Rebuild in 2014. Last drydocked 2014. U.S. Northeast. File: TG09078 Tug - Single Screw - 85.0' loa x 23.0' beam x 9.2' depth. Built 1944 by Smith Shipyards; Pensacola, FL. U.S. flag. GRT: 143. FO: 16,000g. FW: 1,000g. Main Engine: 1 x EMD 12-567A 900BHP. 80" x 54" 4-blade FP prop. Genset: 2 - 30kW / GM 3-71. Quarters: 4 bunks. AirCon. Galley. Ex-US Army ST tug reportedly excellent condition. Fully equipped. U.S. Southeast. File: TG07667 Tug - Twin Screw - 65.5’ x 22.0' beam x 8.5' depth x 7.00' light draft. Built 1969 by Bollinger; LA. U.S. flag. GRT: 98. Winch: single drum +2 - 40T manual face winches. Wire Capacity: 3,000' x 1.125". Main Engines: 2 x CAT D353TA total 850BHP. 52" x 50" props on 6" stainless shafts. Reportedly recent rebuilds on mains. Speed 10kn free. Genset(s): 1 - 30kW / GM 3 - 71 + smaller Kubota. Quarters: 1 - double, 1 - triple. AirCon. Galley. Model bow tug. 22' height of eye. Built-up push knee. Center line "H" tow bitt. Aft electric capstan. Two air compressors. Washer / dryer. 6-man liferaft. U.S. East Coast. File: TG08060 Tug - Single Screw - 71.0' loa x 19.5' beam x 8.5' depth x 9.0' draft. Built in 1954 by John E. Matton & Sons. Rebuilt: 2010. U.S. flag. GRT: 72. FO: 6,000g. FW: 1,300g. BW: 3,000g. Main Engine: 1 x CAT total 850BHP. 72" x 60" 4-blade prop. Genset(s): 1 - 40kW; 1 - 21kW Marine Kubota. Firefighting: CO2 suppression sys. in engine room. Quarters: 1 - single, 1 double. Galley. 65' US Army tug ST. Modernized in 2010. Keel coolers. U.S. Northeast. File: TG08557 Tug - Twin Screw - 57.9' loa x 21.7' beam x 8.4' depth x 6.56' draft. Rebuilt: 2008. GRT: 88. Class: International Register. SOLAS. FO: 34m3. FW: 7m3. Tow hook. Main Engines: 2 x Cummins total 850BHP. Kort nozzles. Bollard Pull: 12T. Speed about 10.5kn on 1.8Tpd. FiFi: 600m3/hr pump & monitor. Quarters: 4 crew. AirCon. Passengers: 6. Harbor tug. Mid-East. File: TG08047 Tug - Twin Screw - 66.4' loa x 20.0' beam x 9.0' depth. Built in 2004. Indonesia flag. GRT: 88. Class: BKI. FO: 34m3. FW: 30m3. Main Engines: 2 x Cummins NTA-855 M total 800BHP. Bollard Pull: 21T. Gensets: 2 - 24kW / Daewoo. FiFi: 1 180m3/h external FiFi pump. Quarters: 9 crew in 2 cabins. Galley. Utility work vessel. Lifesaving & firefighting as per SOLAS requirements. Marcon, as sole broker, has sold several other tugs & barges direct from these Owners. Southeast Asia. File: TG08069 Tug - Twin Screw - 66.4' loa x 20.0' beam x 9.0' depth. Built in 2004 by Sungai Rawa, Pekanbaru. Indonesia flag. GRT: 88. Class: BKI +A11 (I) P Tug Boat, SM. Main Engines: 2 x Cummins NTA 885-M total 800BHP. Bollard Pull: 21T. Genset(s): 2 - 48kVA / Daewoo DB 33A. Southeast Asia. File: TG07785 Tug - Single Screw - 85.3' loa x 22.4' beam x 6.6' depth. Built in 1968 by Ch. Nav. Franco-Belges-Villeneuve. France flag. GRT: 124. Class: BV 3/3 E. Dwt: 188. FO: 15m3. Winch: 13.5T tow hook. Main Engine: 1 x Duvant JMS 4T total 770BHP. 1 - FP prop. Kort nozzle. Speed about 11.6kn. Genset(s): 2 - 44kW / Baudoin DK3. Quarters: 10 bunks in 4 cabins. Keen sellers. Last dry-docked in 2014. Vessel reportedly in very good condition and ready to sail. Mediterranean. File: TG07474 Tug - Twin Screw - 75.0' loa x 19.7' beam x 11.8' depth x 8.53' loaded draft. Built in 1966 by Smedvik Mek Verksted; Norway. Foreign flag. GRT: 81. Class: DMA. Ex - DNV + 1A1 R 280 Ice "C" - Coastal Trade. Winch: Towing hook. Main Engines: 2 x GM total 746BHP. 2 - CP prop(s). Speed about 11kn max. Genset(s): 2 - 48kW / GM2-71. Quarters: 5 persons. Galley. Former guard ship / rescue vessel. Europe Northern. File: TG07076 Tug - Twin Screw - 67.9' loa x 20.1' beam x 7.7' depth. Built in 1954 by Arnold V. Walker; Pascagoula, MS. Rebuilt: 1998. U.S. flag. GRT: 93. FO: 5,500g. Main Engines: 2 x GM 12V71 total 680BHP. Elevating pilot house added in 1998. Sale “as is, where is”. Originally built as supply boat in the U.S. Gulf Coast oil patch. Repowered in 1960s from original twin tandem GM671s, when added upper deck and converted to towing. U.S. Great Lakes.

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

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Marcon International, Inc. Tug Boat Market Report – August 2016

File: TG05042 Tug - Single Screw - 42.0' loa x 13.0' beam x 5.4' depth. Built in 1980 by Knutson Towboat, OR. U.S. flag. GRT: 18. Class: None. FO: 1,600g. Winch: 2 - 5T Beebe. Main Engine: 1 x Cummins KT1150 465BHP. 42" steering 4-blade SS FP prop on 3" shaft. Kort nozzle. Keel cooled. Genset(s): N/A. Quarters: None. Galley. All welded steel construction. Boom boat. Single Hbitt fwd. & aft. Reportedly in good condition and very maneuverable. Truckable. U.S. West Coast. File: TG03210 Tug - Twin Screw - 38.3' loa x 14.0' beam x 5.0' depth x 5.9' draft. Built in 1954 by Gunderson Bros; Portland OR. Rebuilt: 1981. U.S. flag. GRT: 19. FO: 2,000g. FW: 90g. Winch: 25T Beebe Hand. Line Pull: 10T. Main Engines: 2 x GM 6-71 total 360BHP. 38"x 28" prop(s). Skin cooled. 24v DC start. Mains rebuilt & low hours. Bollard Pull: 4T. Truckable. Push knees. Low profile house. New lower price ideas. U.S. West Coast. File: TG03641 Tug - Twin Screw - 41.9' loa x 12.4' beam x 6.6' depth. Built in 1955 by Madisonville, LA. U.S. flag. GRT: 22. Class: USCG COI. Main Engines: 2 x GM 6-71 total 360BHP. Sealed lower deck and a raised wheelhouse for seeing over tall tows. Air controlled throttle/gears. File: TG01041 Tug - Single Screw - 42.0' loa x 12.4' beam x 6.6' depth x 5.00' loaded draft. Built in 1951 by Equitable Equipment Co; New Orleans. U.S. flag. GRT: 21. FO: 2 tanks. Winch: Double tow bitt aft. Main Engine: 1 x GM 6-71NA 150BHP. Craftsman 150psi air compressor for horn & misc. use. Genset(s): 1 - 15kW Onan 120vAC 60Hz. 12' highest fixed point. Reportedly mechanically in good condition, but needs cosmetics. As brokers, we invite best cash offers after inspection. U.S. Northeast.

Further technical information and price guidance for these and other vessels and barges is available on request. Please contact us if you do not find what you are looking for on our website or newsletters.

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

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