SSA Marine Announces Six Month Operations Update at the Port of Umm Qasr, Iraq.

Business Editors

Topical News: War On Terrorism

SEATTLE--(BUSINESS WIRE)--Nov. 20, 2003

SSA Marine has been managing the Port of Umm Qasr for six months, and at this time would like to provide a review and update of our operations at the Port. There are a number of

entities working jointly at the Port of Umm Qasr, including the Iraqi Port Authority (IPA), Coalition Provisional Authority (CPA), USAID, British Coalition Forces and other private contractors. This update also provides insight into the exact role that SSA Marine plays in the reconstruction process.

-- People

1. SSA Marine has a staff of 12 management personnel in charge

of operations at the Port of Umm Qasr. SSA Marine

officially took over management of the Port of Umm Qasr on

May 23, 2003 after the transfer of control from the

British Military. All SSA Marine personnel volunteered to

be part of this effort -- the positions were filled by

existing employees with an average of 20 years experience.

2. Approximately 3,000+ Iraqis are employed by the IPA in Umm

Qasr, with over 9,000+ for the ports in all of Iraq. The

local Iraqi IPA labor is paid by the Coalition Provisional

Authority (CPA).

3. SSA Marine has been working closely with IPA management

relative to operations at the Port. There are

approximately 15 IPA management staff in regular contact

with SSA Marine personnel.

4. SSA Marine staff live in modular housing units within the

port parameters. Communications systems are limited.

-- Contract/Tariff

1. SSA Marine was awarded a $4.8 million, 1-year contract with

the United States Agency for International Development

(USAID) in March, 2003, after a competitive bidding

process that included international companies. SSA Marine

was chosen as the lowest-cost bidder and because of the

company's extensive experience as an international

operator of port facilities. SSA Marine currently operates

in over 150 locations worldwide.

2. The contract addresses three sections:

a. Assessment: SSA Marine sent a team of 15 personnel -- 7

port operations experts and 8 engineers -- to assess

the current state of affairs at the facility,

including damage, infrastructure and services.

b. Implementation: SSA Marine then prepared an

implementation plan for improvements and budget

recommendations.

These first two deliverables were completed in 3 weeks while the war was still in progress.

c. Operation: The remainder of the contract is for SSA

Marine to manage the port's operations. The term of

the contract calls for SSA Marine's compensation to

come from USAID, including housing, food, management,

transportation, etc.

3. Of the $4.8 million contract, we have to date received

$990,000. The profit on the contract is $438,000. The

after-tax profit amount is then approximately only

$280,000.

4. We collect revenues from Port tariffs on behalf of the Port

-- none goes to SSA Marine.

5. Any additional funding is by USAID for operating costs and

capital improvements deemed necessary by USAID.

6. The contract expires on March 22, 2004.

7. The Iraqi Port Authority is solely responsible for the

tariff, including determination of costs.

-- Security

1. There are 40 veterans of the Brigade of Gurkhas present at

the Port, as provided by Olive Security, U.K. through a

sub-contract.

2. In addition, approximately 80 local Iraqis also occupy

security positions at the Port, and training is being

provided for all local security personnel.

-- Operations

1. SSA Marine began managing the movement of humanitarian aid

cargo as of May 23, 2003.

2. Commercial and reconstruction cargo has been accepted at

the Port since June 16, 2003.

3. The Port is also equipped to handle passenger ferry

service. There are currently two regularly scheduled ferry

services operating four vessels. The service is carrying

Iraqis between Dubai and Iraq, and Customs is handling

both customs and immigration services at the Port.

4. Our team has been operating to date without potable water

and with only minimal generator sourced electricity.

                          Berth Availability
----------------------------------------------------------------------
Old Port
----------------------------------------------------------------------
Berths 1-3                      Used for conventional vessels with
                                 their own gear.  Draft is 8-10
                                 meters.
----------------------------------------------------------------------
Berth 4                         Old sulfur berth, used for vessels
                                 with a draft of less than 8 meters.
----------------------------------------------------------------------
Berth 5                         Used for small Dhows.
----------------------------------------------------------------------
Berth 6-7                       Used for general cargo vessels with 8
                                 meter draft or less.  Two of the
                                 oldest berths at the Port.
----------------------------------------------------------------------
Berth 8                         Used for Iraqi Port Authority (IPA)
                                 tugs and other IPA craft.  One of the
                                 oldest berths at the Port.
----------------------------------------------------------------------
Berth 9                         Originally used for cement.  Currently
                                 used to berth IPA vessels awaiting
                                 repair.
----------------------------------------------------------------------
Berth 10                        T-shaped grain jetty that serves a
                                 large grain silo.  Has its own access
                                 road & separate facilities.
----------------------------------------------------------------------
Berth 11                        T-shaped jetty originally used for
                                 sugar discharge & storage.  Has its
                                 own access road & separate
                                 facilities.
----------------------------------------------------------------------
New Port
Handles the majority of the
 vessels that call with military
 and commercial cargo
----------------------------------------------------------------------
Berth 13                        Available for geared vessels.
----------------------------------------------------------------------
Berth 14-18                     Currently unavailable due to ongoing
                                 wreck removal, supporting floating
                                 crane and support vessels.
----------------------------------------------------------------------
Berth 19                        Limited use due to presence of 7
                                 small, damaged rail mounted cranes
                                 located on the berth.
----------------------------------------------------------------------
Berth 20                        Has 2 ship to shore rail mounted
                                 gantry cranes, dredged to 12 meters.
----------------------------------------------------------------------
Berth 21                        In use for commercial operations 5
                                 days per week, has RoRo ramp, dredged
                                 to 12 meters.
----------------------------------------------------------------------

Volumes to Date

# of vessels = Over 130 vessels

Tonnage = Over 500,000 MT

Passengers = Over 3000 people

Types of commodities handled: Rice, wheat, flour, vegetable oil, sugar, cement, RoRo, containers

Operational Handling Equipment

-- 2 Container cranes at New Port

-- 1 15 ton gantry crane and 5 3.5 ton cranes

-- 3 Hustler trucks

-- 4 Toplifts

-- Approximately 15 forklifts of various sizes

-- 5 Roncuzzi Vaccuators

Gross Storage

-- Old Port: 10 warehouses each for a total of 45, 996 square

meters

-- New Port: 23 warehouses each for a total of 117, 883 square

meters

Pilots and Tugs

-- There are two sets of Pilots. The river or sea pilots are

controlled by the IPA out of Basara. The Harbormasters are

managed by SSA Marine/IPA in Umm Qasr.

-- There are six tugs, which are coordinated by SSA Marine and

IPA in Umm Qasr.

Trucking and Distribution

-- There has been an ample supply of trucks available to move

cargo since operations commenced.

-- Vessel agents are coordinating delivery from the cargo ship to

the truck, ensuring that the proper cargo is delivered to the

correct trucker.