Marine Log

July 17, 2006

Foss Maritime makes East Coast acquisition

Seattle-based Foss Maritime Company, which has the largest fleets of tugs and barges on the U.S West Coast, is expanding into the East Coast market.

It is acquiiring Constellation Tug Company of Charlestown, Massachusetts.

Foss says that with the planned introduction of new, technologically advanced tractor tugs to the Constellation fleet, the company will increase its capacity and capabilities, and improve service for its Boston Harbor and Massachusetts Bay customers.

Foss has agreed to acquire the equipment, assets and trade names of Constellation Tug Company and will operate the company as a subsidiary under the name Constellation Maritime Company.

The current leadership of Constellation will continue to manage the company when it becomes a subsidiary of Foss.

Marc Villa, a partner at Constellation Tug, has been named President of the company, and the other partners at Constellation Tug--Conti Coluntino, Jeff Nichols and Bob Manning--have also accepted management positions.

Constellation currently operates four tugs and three barges, providing ship assist and marine services in the ports of Boston, Quincy and Salem.

In late 2006, two tractor tugs will join the Constellation fleet, including one of the Foss-built new DOLPHIN class ASD tractor tugs with 5,000 HP and 65 short tons of bollard pull.

"The addition of the new Dolphin class tug is going to put Constellation in a new class," said Marc Villa. "The high horse power and strong bollard pull of this 78 foot tug is ideal for Boston Harbor ship docking. By adding two tractor tugs to our existing fleet of conventional tugs, Constellation will be able to offer extraordinary service in Boston and Massachusetts Bay."

Until the new tugs arrive, Constellation will improve capacity and customer service by chartering two conventional 4,000 hp tugs.

Paul Stevens, President and CEO of Marine Resources Group and Chairman of Foss Maritime said, "We look forward to welcoming Constellation's employees to our company. This transaction will expand our geographical presence to the East Coast. It also increases our ship assist capacity which, we believe, strengthens Foss' position as a leading provider of ship assist and tanker escorts in the U.S. and expands our ability to provide safe, reliable and efficient service to our customers."

Founded in 1889, Seattle-based Foss Maritime offers a range of maritime services and project management to customers across the Pacific Rim, Europe, South America and around the globe. The company has harbor services and transportation operations in all major U.S. West Coast ports, including the Columbia and Snake River system.

Foss also operates two shipyards and is part of Marine Resources Group, Inc. of Seattle, Washington.

Marine Resources Group was established in 2000 by privately-held Saltchuk Resources, Inc. as a holding and support company for its investments in tug, barge and ancillary marine service companies.