Crowley and Triunfo to Establish Joint Venture for Deepwater Logistics Base in Rio de Janeiro State, Brazil

(Rio de Janeiro, July 6, 2001) – Crowley Marine Services and Triunfo Operadora Portuaria announced yesterday they intend to form a joint venture to operate a deepwater logistics base in the State of Rio de Janeiro, Brazil. GAIA Comercial Exterior will participate as Crowley’s Brazilian representative for energy logistics services. The partners announced the joint venture during a signing ceremony at Rio’s prestigious Naval Club.

The deepwater logistics base will be located at Triunfos marine terminal on Guanabara Bay and will manage the complex logistics and transportation required to support deepwater exploration and production in the Campos and Santos basins of Brazil.

The base will feature more than 300 meters of dedicated dock space with 7.5 meters draft, as well as significant open and covered warehousing, cranes, and material handling equipment. The energy base will be bonded for temporary storage of imported materials, and is expected to be operational by September 2001.

The Crowley-Triunfo joint venture will provide storage and inventory control of oilfield equipment and coordination of marine transportation between the base and offshore drilling and production areas in the Campos and Santos Basins, as well as coordination of inland transportation to the base. The base will be staffed primarily by dedicated Brazilian employees. All activities performed will be in accordance with American Petroleum Institute (API) standards and utilizing Crowley’s ISO-9002 compliant procedures. The joint venture also intends to provide material management services for third party service companies providing materials and services to offshore operators.

Speaking via teleconference, Tom Crowley Jr., chairman, president and CEO of Crowley Maritime Corporation, said, “We are extremely pleased to be working with professional organizations such as Triunfo and GAIA to support energy operations in deepwater Brazil. Crowley has been active in Brazil for nearly 20 years, and we are committed to providing operators with world-class logistics services.”

Wagner Granja Victer, state secretary of shipbuilding and petroleum for the State of Rio de Janeiro, said the synergies that will be created between the two companies will enable the Rio ports to become leaders in the offshore logistics arena.

“I am particularly pleased that Crowley selected Rio Ports for its entry into the Brazilian energy logistics market,” Victer said.

Luiz Bodanese, president of GAIA Comercio Exterior, spoke of the importance of bringing together the three companies – Crowley with the energy logistics knowledge, Triunfo with the experience in port operations and GAIA Comercio Exterior with local marketing knowledge.

“We are confident that bringing these three experienced and complementary businesses together will help make this venture a success in the Brazilian offshore energy market,” Bodanese said.

Rogerio Caffaro, director-president of Triunfo Operadora Portuaia, acknowledged that Victer had been instrumental in pushing forward the idea of using the Triunfo facility to service the offshore oil energy business.

“Because we have limited experience in the offshore industry, we are pleased to be associated with an industry leader such as Crowley in offering this service to the offshore industry,” Caffaro said .

Crowley Marine Services is a subsidiary of Crowley Maritime Corporation and provides a broad range of logistics and transportation services to the energy industry worldwide. Its services range from operating shore bases to marine support for offshore construction to petroleum transportation and lightering. Crowley Maritime Corporation generates approximately $1 billion in sales annually.

“Typically, customers ask for our assistance when they are frustrated with the timeliness and condition of material arriving at location, or if they have reservations of whether their logistics incorporates provisions to manage safety and environmental risk,” said Jim Shettig, Crowley’s director of international operations. “During field development, operators have brought Crowley in when troubled with high operating costs where logistics can account for 15 to 20 percent or more of drilling costs.”

Triunfo Rio, operating as Rio-TPS Terminals, has more than 12 years of port operating experience handling general cargoes, steel products, and bulk cargoes, and today is a leader in the port of Rio de Janeiro. Cost reduction and continuous improvement in the quality of services have become trademarks in the areas of stevedoring, loading, unloading, and warehousing. To attain an international quality standard, Rio-TPS has invested in the construction of the first warehouse with a sliding roof in South America, occupying a space of 8000 square meters which includes overhead cranes. Additionally, investments are being made in the areas of operational control with the purchase and implementation of a computerized access system to the terminal. The Rio-TPS terminals are located in Gamboa Bay and Sao Cristovao quay in the port of Rio. Equipment includes cranes to 16 tons, five berths with drafts up to 10 meters, and the ability to handle heavy cargoes in addition to a large fleet of forklifts and mafi tractors and trailers.

GAIA Comrcio Exterior Ltda was established in 1995 to support the growing demand for special services and products in the oil, gas and energy industry, with strong emphasis on logistics and engineering.

Crowley, founded in 1892, is primarily a family- and employee-owned company mainly engaged in worldwide logistics, liner services, contract towing and transportation, energy support services, ship assist and escort services, vessel management and petroleum and chemical marine transport. Additional information about Crowley its subsidiaries and business units may be found on the Internet at www.crowley.com.

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